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Oil price slide, empty ECA signpost tough 2019 I N

MARKETS

CBN pushes yields higher to maintain FX stability, lower inflation expectations

DIPO OLADEHINDE, Lagos, & OWEDE AGBAJILEKE, Abuja

igeria’s excess crude oil account (ECA), the only buffer for the country against oil revenue volatility, fell seventy-six percent to just above $600 million in three weeks is causing consternation across the land but it could be a taste of what to expect next year as oil price continues to collapse unstoppably. Oil prices plunged another four per cent Thursday taking prices below the level all but one OPEC country needs to square their 2019 budgets and avoid the risk of economic dislocation and social unrest. “2019 will be very challenging no doubt,” Omotola Abimbola research analyst at Ecobank told BusinessDay. “It’s a major cause for concern for Nigeria’s economy.” For the first time since September 2017 Brent price hit $55 a barrel on Thursday, only uberwealthy and sparsely populated Kuwait will be able to make ends meets next year, according to IMF estimates. OPEC heavily oil dependent countries like Nigeria along with giants Saudi Arabia, Iraq and Iran need much higher prices.

Brent hits $55, below 2019 budget benchmark of $60 ECA depletion: PDP accuses Buhari, APC of fraud

Qatar, which is leaving the cartel on January 1, would be able to break-even at just $44 a barrel. Libya and Algeria need prices around $100 a barrel.

Saudi Arabia, which announced its 2019 budget this week, is betting on higher oil revenues to finance a third consecutive year of fiscal loosening.

Jason Tuvey, analyst at Capital Economics, a London-based consultancy, said the Saudi budget “appears to be premised Continues on page 34

L-R: Kobby BentsiEnchill, executive director/head, debt capital markets, Stanbic IBTC Capital Limited; Emeka Emuwa, managing director/ CEO, Union Bank of Nigeria plc, and Bola Onadele. Koko, managing director/ CEO, FMDQ OTC Securities Exchange, during the presentation of the Bond Listing Certificate to the Issuer at the Listing Ceremony for the Union Bank of Nigeria plc Bonds at Exchange Place, in Lagos.

HOPE MOSES-ASHIKE & BUNMI BAILEY n a bid to ensure that there is not too much naira flowing around the economy, to curb inflation and demand for dollars, the Central Bank of Nigeria (CBN) is forcing banks to buy stabilisation securities and other short term instruments. This has seen a spike in yields on these short term financial assets, higher than what is obtainable in key markets in Africa. As at the end of November, average yields on 3-month Nigeria treasury bills were as high as 13.5 percent, which was higher than 8.83 percent on similar tenure bills in Kenya and 8.1 percent in South Africa. This means that it is more expensive for the Nigerian government to borrow than the Continues on page 34

Inside

Carlyle makes surprise $40m investment in Wakanow P. 2 MTN launches ASAP to curb drug addiction P. 35

2 BUSINESS DAY NEWS

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Friday 21 December 2018

DO THEY KNOW IT IS CHRISTMAS?

Cash-strapped consumers battle high food prices as Christmas beckons FAMINU GBEMI

s Christmas beckons, prices of staple foods have risen significantly, pricing out many Nigerian consumers who are battling falling disposable income. Novus Agro prices show that the price of a 50 kg of rice rose 22.31 percent, moving from N14,500 in December 2017 to N17,735 in the same period of 2018. The price of chicken laps increased 21 percent to N11, 500 in December 2018, from N9,500 in the corresponding period of 2017. Similarly, meat lovers may be a bit disappointed as the price of a cow in major markets in Lagos rose to N200,000 this December, from N150,000 a month ago. This has also affected the meat bought by retailers as prices rise between 30 and 70 percent in major markets. Adigun, a meat seller at Mushin Market in Lagos, said regardless of the hike in the price of cows, business continues. He said though consumers complain bitterly about the prices, they still buy varied quantities because meat is an essential part of their meal. Iya Dami, a trader who sells pepper, onions and tomatoes at Mushin, Lagos, complained that the economic situation has affected the price and availability of the goods negatively. “People have been complaining of the poor economic situation of the country in recent times, which led to the hike in prices of various consumer goods in the market as well as its availability. The rise in the price of perishable goods was due to the market forces, cost of transportation and farmers influence. But now,

the prices of tomatoes and pepper are relatively affordable compared to onions which cost N32,000 per bag.” She said she has to beg customers to buy because the commodities are perishable and if not sold will count as losses. Amusan Adijat, a trader dealing in rice, vegetable oil, palm oil and frozen food complained that price increases emanate from wholesalers. She complained that those who provide transport and logistics services have raised their own prices, which she must transfer to the final consumer. A report released by the FBN quest research showed that there is the possibility of an increase in inflation in the coming year which will be influenced by food prices. The festive season is usually characterised by various activities which affect prices of consumer goods. Real household consumption and government consumption expenditures declined in 2017 (at –0.99 percent) while national disposable income fell by 1.52 percent, according to the National Bureau of Statistics (NBS). Unemployment rate in Nigeria increased to 23.10 percent in the third quarter of 2018 from 18.8 percent in the second quarter of 2018, according to the latest figure from the National Bureau of Statistics (NBS). Nigeria is now the poverty capital, with 87 million people living in extreme poverty. However, prices of some items are moving southwards. The price of a 25-litre gallon of palm oil fell by 13.6 percent, from N12,500 in 2017 to 10,800 in 2018. The price of a bag of beans fell 2.5 percent, from N40,000 in 2017 to N39,000 this December. Also, A bag of garri had a huge decline of 66.25 percent, falling from N13,335 in 2017 to N4,500 in 2018.

2019: Accord Party adopts Agbaje as Lagos governorship candidate …As 20,000 APC members join party INIOBONG IWOK

head of the 2019 general elections, the Lagos State chapter of Accord Party (AP), has adopted Jimi Agbaje, the gubernatorial candidate of the main opposition People’s Democratic Party (PDP) in the state as its governorship candidate. The party also welcomed about 20,000 members of the ruling All Progressives Congress (APC), who defected to it. Announcing the party’s endorsement of Agbaje at a reception of the new members held in Ikeja, a former chieftain of APC in the state, Sunday Ajayi, said Accord Party considered Agbaje’s experience and track record in its decision. He declared that all the defecting members of the APC had the interest of Lagos state at heart and were determined to wrestle it from the hand of an individual who believes that the state was his personal property. Ajayi reminded the members of the events that took place at APC’s primary elections in the state, “where one man felt that without him no one will rule Lagos State. We want to show him that he is no longer a grassroots man.” “Look at what he did to an incumbent Governor Ambode. They said he was not a party man, but he

was a party man in 2015,” he added. Ajayi further said that Accord Party’s plan was to defeat APC, and demonstrated what would become of the ruling party in Lagos and the other 35 states of the federation, when he took a broom (the logo of APC), broke it into pieces and tore the flag of the party, to connote its demise. Accord Party’s gubernatorial candidate in the state, Sunday Ajose, who stepped down for Agbaje, said that he took the decision because he observed that Agbaje had a better capacity to deliver Lagos state from APC stronghold and make it better for all. Speaking at the event, Agbaje applauded Ajose’s decision to step down for him, describing it as a sign of his large heart. He promised that his victory would be for PDP and for all Lagosians. “It takes a man of character to have got an office, and accept that there is a bigger picture, and agrees to step down for somebody he feels has a better chance.” A Board of Trustees member of Accord Party, Adebayo Adeniyi, expressed delight that Lagosians now understand that their freedom was necessary, wondering why a particular party powered by one man would hold a state to ransom for about two decades.

Frank Aigbogun, publisher/CEO, BusinessDay Media Limited (5th l), with BusinessDay awardees, during the BusinessDay Carol Service and awards ceremony in Lagos, yesterday. Pic by David Apara

Carlyle makes surprise $40m investment in Wakanow ... as ACA said to exit LOLADE AKINMURELE & OBINNA EMELIKE

rivate Equity firm Carlyle probably never heard of the idiom “Once bitten twice shy.” That’s after the third largest buyout fund said Thursday that it was investing some $40 million in Nigerian travel agency, Wakanow, the same week in which its $147 million investment in retail lender, Diamond bank, may have come undone. Access Bank Plc announced a “merger” with Diamond Bank Plc that sees the tier-one Bank acquire Diamond for some N72 billion ($200 million). Carlyle had bought an 18 percent stake in Diamond as far back as 2014 when the bank was around N6 per share. At the time, Carlyle said the

lender was well-positioned to benefit from Nigeria’s status as one of the fastest-growing economies on the continent and enthused how it could become one of the largest financial institutions in West Africa. Since then, however, the bank’s shares have lost 94 percent of their value in dollars, as oil prices fell. The proposed merger between Access and Diamond holds even sterner implications for Carlyle. Based on the scheme of merger between Access and Diamond however, the US-based private equity firm’s investment has diminished to $13.5 million. That implies a potential loss of $134 million. A colossal loss that one would imagine will sour Carlyle’s appetite for any Nigerian company for now. But no. Carlyle has now set its sight on Wakanow.

Sources say Carlyle is buying from Africa Capital Alliance (ACA) who had invested some $20 million in the travel agency in 2015. “It seems odd that Carlyle will invest in another Nigerian company in the same week that its deal with Diamond has left a sour taste for the investor,” a source familiar with the matter said. “The deal is not bad for ACA as it seems to have booked a 100 percent gain from exiting Wakanow,” the source said. Wakanow.com, one of West Africa’s largest online travel agencies, seems to be pulling the last plug for survival with the investment of $USD 40 million by Carlyle Group, a global alternative asset manager. The online travel agency, which was founded in 2008, got involved in financial imbroglio when it borrowed huge sum from Zenith Bank

Continues on page 34

FMDQ admits N13.50bn Union Bank bonds on platform ENDURANCE OKAFOR

t a ceremony which held on Thursday, December 20, 2018, FMDQ OTC Securities Exchange (“FMDQ or the OTC Exchange”) commemorated the listing of Union Bank of Nigeria PLC N7.19 billion Series 1 and N6.31 billion Series 2 Senior Unsecured Fixed Rate Bonds under its N100.00 billion Debt Issuance Programme (“the Union Bank Bonds”) on its platform. As is customary of the OTC Exchange, a prestigious ceremony was held at its business complex, Exchange Place, to mark this noteworthy achievement. Present to celebrate the successful admission of the Union Bank Bonds on FMDQ were the issuer, Union Bank of Nigeria PLC (“Union Bank”), represented by the Managing Director/CEO, Emeka Emuwa, and other representatives of Union Bank. Also present at the ceremony were the sponsor of the Bond on FMDQ and the Registration Mem-

ber (Listings), Stanbic IBTC Capital Limited (Stanbic IBTC Capital), and representatives from the Joint Issuing Houses, Barclays Securities Nigeria Limited, Standard Chartered Capital & Advisory Nigeria Limited, Union Capital Markets Limited, as well as the solicitors to the listing, Aluko & Oyebode, Udo Udoma & Belo-Osagie, amongst others. Kaodi Ugoji, Associate Executive Director, Corporate Development, FMDQ, whilst welcoming the guests gathered to commemorate this achievement, applauded the issuer for successfully raising N13.50 billon from the debt capital markets (DCM). She went on to highlight that FMDQ’s listings, quotations and noting service has been tailored to provide, among others, a unique opportunity for issuers, Governments (federal & State) and Corporates alike, to raise the profiles of their issues and access a deep pool of funds from the DCM, thereby meeting their long-term funding needs. She further reiterated the OTC Exchange’s commitment to continue to develop initiatives that

will make the Nigerian DCM highly liquid, deep and well-developed. In delivering his special address, Emeka Emuwa, commented, “Union Bank PLC is pleased to be listing its inaugural Series 1 & 2 issuances under its N100.00 billion Debt Issuance Programme on FMDQ Platform. The issuance of the Series 1 & 2 Bonds is a key milestone of our corporate funding strategy and listing the Bonds on FMDQ ensures growth in liquidity and transparency within the fixed income market in Nigeria”. Speaking on behalf of the sponsor to the issue and FMDQ Registration Member (Listings), Kobby BentsiEnchill, stated, Stanbic IBTC Capital is pleased to have supported Union Bank PLC with the issuance of the Series 1 & 2 Bonds under the Debt Issuance Programme as well as the listing on FMDQ. FMDQ has made significant strides with enhancing the liquidity of the DCM, and the listing of the Series 1 & 2 Bonds by Union Bank PLC further provides

Continues on page 34

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Was there ever an era of Benue exceptionalism?

Ihembe Ayankaa Martin Ihembe is a Political Scientist with research interests in Political Development, public policy, Democracy and Democratization Governance, and Political Theory. He can be reached via 07036396194

y boss, dear friend and uncle, Mr Adagbo Onoja introduced a new concept in media lexicon I find useful in making a very important statement on governance in post-1999 Benue State. While analyzing the politics surrounding the selection of Barrister Emmanuel Jime’s running mate – the All Progressives Congress gubernatorial candidate, he concluded by asking “who, between Samuel Ortom and Emmanuel Jime, is going to change the sorry story in favour of that elusive thing called Benue Exceptionalism….?” Millennials in Benue State who had a little dose of military dictatorship and much of bad leadership since the return to civil rule in 1999 are less inclined to contemplate a moment of Benue exceptionalism which Mr Onoja talked about. To them, there has never been anything like Benue exceptionalism, and there will be anything like that. At least not in the foreseeable future. Is that really true? Perhaps a bit of historicism would help provide an answer. After its creation in 1976 by the Murtala/Obasanjo led junta, nothing was achieved in terms of development under the Abdullahi Shelleng and Adebayo Lawal administration, both of which served between March 1976 and October 1979, respectively. Having served as Chairman of Kwande Local Government under the Shel-

leng’s administration in 1977, Aper Aku run and won the gubernatorial election in 1979 under the National Party of Nigeria (NPN), and became the first executive Governor of the State. While in office, Aku pursued an aggressive policy with a style of governance that was focused on turning the three-year-old state into an emporium that would be investors’ destination by tapping into the state’s agriculture potentials while he also developed human capital. This was not a mean task by any standard. However, he pursued his vision with determination under a harsh political environment amid series of challenges. Aku was a man of many parts. This reflected in his style of leadership and what he was able to accomplish in four years. By the time the military took over in December 1983, one would say it’s mission accomplished for Aku, even though he left unceremoniously. On the industrial plane, Aku established Benue Brewery, Benro Packing, Benue Bottling Company, Benue Links Limited, Taraku Vegetable Processing Industry and Oturkpo Burnt Bricks. Recognizing the special gift of nature to the state – fertile land suitable for agriculture, Aku gave agriculture maximum attention by establishing the massive Ber-Agbum Fish Farm. Aside the Fish Farm, this is place where rice can be cultivated in export quantity. He also setup a Cattle Ranch at Ikogen while he also supported other agricultural courses which saw the state recording bumper harvest in a lot of cash crops as a result of these intervention in the agric sector. He started a massive water scheme which he could not complete before the Buhari led junta struck in December 1983 and ended civil rule. Aku did not only establish industries, his love for commerce led him into conceiving Lobi Bank as well as an International Market with a vision to dredge River Benue and create a

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Casting your vote on someone who does not think beyond going to Abuja to collect rent in the name of revenue allocation from the Federation Account will not do you any good

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port where goods can be shipped into the state. Unfortunately this idea died with him. The market is now an eyesore. He built a magnificent secretariat, which arguably, is the best in Northern Nigeria. His love for entertainment led to the construction of international stadium and Art Council which has helped many. Oh, did I forget The Voice Newspaper! In the area of human development, aside building schools, Aku made scholarship opportunities available and accessible to Benue indigenes irrespective of ethnicity. Garba Shehu has detailed Aku’s exceptional strides in this in one of his pieces which I have taken the liberty to share https://www.premiumtimesng.com/opinion/128868-govaper-akus-lesson-for-gov-kwankwasoby-garba-shehu.html. This impressive feat Aku recorded in such a short time answers the question the title of this piece posed. This is exactly what my boss, uncle and dear friend Adagbo Onoja had in mind when he spoke about Benue Exceptionalism. That Aku is referred to as a visionary leader ahead of his time and the father of modern Benue is not out of place. Take away his achievements and there will be nothing to talk about in Benue. With the foundation he laid, Aku placed Benue state on the springboard for succeeding administrations to launch the state to its rightful place. Sadly, his vision was not shared by his

successors. The MILADs (Military Administrators), beginning with our own Atom Kpera in 1984, to Jonah Jang, Yohanna Madaki, Ishaya Bakut, Idris Garba and Fidelis Makka sentenced Aku’s achievements to death by abandoning the projects he initiated. Reverend Father Moses Orshior Adasu who took office in 1992 under the platform of the Social Democratic Party (SDP) reversed the sentence as he embarked on restoring Benue exceptionalism by travelling the Aku road. His administration was truly reminiscent of Aku’s. Between January 1992 and November 1993, Adasu built the first state University in Northern Nigeria. He improved Oju College of Education which was initiated by Aku, and went ahead to build BENCO roofing tiles factory. He setup Joseph Saawuan Tarkaa Foundation, Katsina Ala fruit juice factory and constructed roads. The good thing about the developmental strides of Aku and Adasu is that Benue people were empowered. I know a lot of people who were gainfully employed in those state-owned corporations before some of them were corruptly ran down. Today, Benue State University provides employment to thousands, thanks to the wonderful vision of late Father Adasu. But as it turned out again, the trio of Joshua Obademi, Aminu Kontagora, and Dominic Oneya who served as MILADs between December 1993 and May 1999 sentenced Adasu’s vision of Benue exceptionalism to death. And since then, the notion of Benue exceptionalism has been “elusive” as uncle Onoja rightly observed. Let me explain why it is elusive; and I will be “brutally truthful” in my explanation. Brutally truthful not because I am out to insult those who are culpable, but because I want them to reconsider putting Benue first in their quest for power and influence ahead of 2019 instead of their narrow interest which has detained Benue in a state of despondency. While the MILADs succeeded

in sentencing Benue state to death by killing the vision of Benue exceptionalism pursued by Aku and Adasu, the post-1999 political class executed the death sentence handed by the MILADs. Having served out two consecutive terms of eight years each, none of the post-1999 Governors could achieve a fraction of what Aku and Adasu achieved in their five years and eight months in office, combine. Instead, they embarked on privatizing the state-owned corporations Aku worked so hard to establish. Sometime in April this year, the current administration put up eleven more of those corporations for sell. The question is: if Aku had embarked on the kind of profligacy and looting of the state treasury with reckless abandon as we have seen in the past eighteen years, would there be any state-owned corporation for those who privatized, and are privatizing, to privatize, today? Visionary leaders do not offer themselves for service in order to help themselves with state resources and bring untold hardship on the people they swore to govern as we have seen in our state, but to protect the people and better their lot by pursuing policy objectives that promote public goods. In the last eighteen years, governance in Benue State has been everything but beneficial to the suffering masses with the sad phenomenon of none payment of salaries, insecurity, growing rate of cultism, drug problems, infrastructural deficit, widespread poverty to mention a few. Al of these ills coupled with lack of vertical accountability on the part of the leaders, one is inclined to ask: how different is this civil rule from the reign of the MILADs?

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How systems thinking can help your organization drive new growth

‘Uju Onwuzulike’ Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju. onwuzulike@mclgroup.net.

he New Year is usually a time of reflection for many organizations. This is why most organizations normally take time out to re-think, plan, and re-strategize about the future of their organizations. It will be quite natural that one of the top priorities of CEOs as we delve into the New Year will be to drive new growth and achieve high performance amidst uncertainties, business complexities, harsh economic realities, innovative disruptions, and numerous

shareholders expectations. However, the reality is that the journey to driving new growth and high performance in our organizations will be a tough one, if we generally see issues coming in the way of our driving new growth for our organizations as mere problems that only require analytic or linear way of thinking in resolving them as opposed to seeing them as systemic issues that require systems approach of solving. Indeed, all the issues and challenges we face in our organizations today are systemic and require a system or holistic approach in resolving them. More so, because these systemic issues are interconnected and interdependent, everything interacts with (affects and is affected by) the things around it - they cannot be solved with a stroke of analytic or linear thinking. With the systemic challenges and complexities surrounding today’s businesses, organizations that would be able to drive new growth and create their desired future and also sustaining it will be those that will inspire systems thinking across all levels of the organization. By inspiring systems thinking, everyone would begin to see the growth of your organization not only from linear (or analytic) perspective

of today’s issues or point of views, but from a broader perspective and focusing on the entire organization as a whole system rather than paying attention only to its various parts. Casting our minds back, we have been used to reducing problems to simplistic, knee-jerk solutions without paying attention to the interdependences of other elements. Peter Senge captured it well when he said, “From an early age, we are taught to break apart problems in order to make complex tasks and subjects easier to deal with. But this creates a bigger problem….we lose the ability to see the consequences of our actions, and we lose a sense of connection to a larger whole”. Again, organizations are finding it difficult today to drive new growth or high performance because of the silo mentalities that have existed between departments and between top management – where no one is ready to share useful information or render a helping hand when it is possible – simply because we see less of the organization and more of our departments or our individualities. In our today’s world, many organizations are tempted to look at problems and right on the spot act on the path of least resistance – thinking that simple solutions are what everybody needs. At the end, this simple solution will fail to

drive new growth because they are not holistic or creative enough. They are not holistic because they concentrate on the parts of the organization rather than on the whole. Sadly, this simple solution or quick fix ends up creating unintended consequences for the organization while trying to solve one challenge. Driving new growth should not be seen from a quick fix point of view or a one-off activity or something that involves only a group of people in organizations. It requires us to address systemic and root cause issues affecting the drive for new growth. This is why adopting a system thinking approach (where the whole is taken as primary) to problem solving will help every department address these issues by empowering employees understand systems problems, enabling holistic problem solving, and enhancing the implementation of solutions. These changes in capabilities will improve the delivery of high performance and will usher the organization into a new growth. By internalizing systems thinking in our organizations, we would begin to understand that our key responsibility is to do all we can to “grow our organization”. We would begin to focus more in the organization as opposed to our

individual units or departments, we will focus more on cross – functional teamwork as opposed to creating silos, focusing more on making a difference as opposed to looking at one’s position and essentially moving from it’s not job syndrome to share collaboration. Remember, if one is not exposed to systems thinking, the dominant thinking pattern of such an individual will be more of “parts focused” and not “whole focused”. This is why in analytic thinking, the parts are primary and the whole is secondary, while in systems thinking, the whole is primary and the parts secondary. Your organization’s capability to institutionalize systems thinking, to become strategic, innovative, lead and manage changes in these complex times, and ultimately carves out new opportunities and growth is needed now more than ever – and your organization needs to start the year right. Wouldn’t your organization start the year with our “Systems Thinking for driving growth retreat”? Your organization will thank us. As always, I welcome your comments, questions or requests. I look forward to hearing from you!

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What Nigerians in California are saying about the forthcoming 2019 elections PETER DELE OLOWA Olowa sent in this article from California, the United States of America

ased on my interactions with many Nigerians in California, the third largest city in America, the forthcoming 2019 election is just a mirage. They are of the opinion that there is no need for an election as there is no party to be trusted, considering many unfulfilled promises of the past leaders and the present state of the Nigerian economy. Research finding shows that more than 60 percent of Nigerians in the State of California VERA SONGWE Songwe is Executive Secretary of the UN Economic Commission for Africa (ECA)

oving into 2019, there is reason to celebrate. Latest estimates by World Data Lab show that, for the first time in history, the world will enter the new year with the lowest level of extreme poverty, at 8%. But single digit numbers hide underlying differences, especially for African countries. 600 million people globally will start 2019 living in extreme poverty and only 20 million will come out of this situation by the end of the year. Africa still has much of its population living in poverty or vulnerable. Projections from the ECA’s recently unveiled Africa Poverty Clock estimate that, in 2019, 70% of the world’s poor will live in Africa, up from 50% in 2015. By 2023, the share of Africa’s poor will increase to over 80% of global share. In other words, Africa will be adding more poor people to the world. The African Poverty

supported ignoring the elections because neither the All Progressive Congress (APC) nor the People’s Democratic Party (PDP) as well as other registered parties for 2019 election, has shown any sign of trustworthiness. They said ignoring the election will make the message clear to the world that Nigerians are fed up with the past and present leadership who are after what they can make for themselves with no developmental plan for the country. Nigerians in the diaspora are not yet voting, but if given opportunity to vote in the 2019 election, a larger proportion of them in California will boycott the election. This may portray Nigeria in negative light across the world and may dent government’s plan of giving Nigerians in the diaspora opportunity to vote. In addition, 25 percent of the Nigerians in the State were of the view that if given the opportunity to take part in the election, they have to fully participate because a house divided against itself cannot stand. According to those that hold this view, what they needed to do is to select a credible leader with our votes.

A leader that will tackle insecurity headlong, address disenfranchisement of many Nigerians, discourage corruption, rigging, bogus salaries for federal legislators, murderous herdsmen, health tourism for public office holders, budget padding, detention of Nigerians without trials and indiscriminate allocation of oil blocs to their cronies, among others. The remaining 15 percent were neutral. Looking at these views of Nigerians in the diaspora especially those in the United States and the remittances of about $22 billion annually, their concerns should be giving paramount attention in determining who will lead this country in the next four years. Findings show that out of the $22 billion dollars remitted annually by Nigerians in the diaspora, those in the United States accounted for more than 40 percent of the total remittances and their opinions should matter in the affairs of the country. According to the Bureau of African Affairs Fact Sheet, United States remained the largest foreign investor in Nigeria, with foreign direct investment (FDI) concentrated largely in the petroleum/mining and wholesale trade sectors. At $2.2 billion in

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Looking at these views of Nigerians in the diaspora especially those in the United States and the remittances of about $22 billion annually, their concerns should be giving paramount attention in determining who will lead this country in the next four years

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2017, Nigeria was the second largest U.S. export destination in Sub-Saharan Africa. The United States and Nigeria have a bilateral trade and investment framework agreement. In 2017, the two-way trade in goods

between the United States and Nigeria totaled over $9 billion. In the same vein, California economy remains the backbone of United States economy. Presently, California’s economy has surpassed that of the United Kingdom to become the world’s fifth largest, according to the United States Federal data. California’s gross domestic product (GDP) rose by $127 billion from 2016 to 2017, surpassing $2.7 trillion, the data said. The data demonstrates the immensity of California’s economy, home to nearly 40 million people, a thriving technology sector in Silicon Valley, the world’s entertainment capital in Hollywood and the nation’s salad bowl in the Central Valley agricultural heartland. Considering the role the United States plays in the Nigerian economy, and California to the United States’ economy, views of the Nigerians in United States especially in California cannot just be pushed aside, but rather a necessary consideration should be given to it. According to Plato, “opinion is the medium between knowledge and ignorance”. Send reactions to: comment@businessdayonline.com

Unveiling an African Poverty Clock: Leaving no one behind Clock provides real-time poverty estimates for every country on the continent, with forecasts until 2030. Current projections indicate that almost all of Africa is off track for ending extreme poverty by 2030. Thirteen countries are projected to see an increase in absolute numbers. Seven out of the top ten countries in the world with the poorest people are in Africa. This is expected to rise to nine out of ten by 2030. Four main factors drive Africa’s diverging progress with the rest of the world. The poor in Africa start further below the poverty line than those in other global regions. So even if incomes rise, it is rarely enough to push a significant proportion out of poverty. Africa’s poverty gap index, which is a measure of the intensity or depth of poverty, is nearly double the global average at 15.2 per cent in 2013 (global averages is 8.8 per cent). The average consumption of the poor across the East, Southern, West and Central regions is $1.16 a

day, which is $0.74 below the international poverty line, thus posing a challenge to achieving the SDGs target of eliminating poverty by 2030. Poverty reduction is further impacted by high inequality levels. When inequality levels are high, economic growth delivers less impact for poverty. Across many countries in Africa, the richest 20% controls up to 60% of the wealth, as a consequence, growth has not been inclusive. Africa’s inequality landscape is also characterised by high average inequality, extreme inequality (South Africa, Namibia, Botswana) and a bifurcation of inequality trends that sees substantial variations in ‘within-country’ trends. The mismatch between sectors of growth and employment remains a challenge. Agriculture continues to be an important contributor to economic growth and the transition to industry remains slow. In Burundi, Burkina Faso, and Madagascar, more than 80 percent of the labour force works in agriculture. Africa’s

manufacturing sector employed only 9% of women and 16% of men on average over the decade. However, most of Africa’s working poor are predominantly found in the informal sector characterised by low productivity and low incomes. Despite the increase in employment within the services sector, the reality is that people are moving from low productivity agriculture to similar low productivity urban informal activities thus there is little impact on rising incomes. The economic growth recorded for the last 20 years has made minimal impact due to rapid population growth. With 2.6% population growth rate, on average, is accounted for, annual per capita growth in the last quarter century comes in at just 1.1%, which is insufficient to reduce poverty quickly. However, it is important to note that the rate of population growth witnessed over the last two decades is unlikely to repeat itself in the coming decades, thus presenting unique op-

portunities for countries to make significant impact on poverty reduction. No n e t h e l e s s, 2 0 1 9 may prove a significant turning point in Africa’s progress towards the elimination of extreme poverty by 2030. For the first time, in 2019, the absolute number of people living in extreme poverty in Africa will be reduced. But there is no guarantee that this pace will continue in the absence of the right public policies and actions. Sustained economic growth of the magnitude of at least 8-10% is necessary for the quantum leap needed for faster poverty reduction and to achieve the SDGs. Africa’s focus on the African Continental Free Trade Area (AfCFTA), digital economy and the scaled up push for gender inclusion bode well for inclusive growth over the next decade if governments adopt adequate fiscal and structural policies to crown in the private sector and improve infrastructure. Send reactions to: comment@businessdayonline.com

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comment VICTORIA ABUTO Abuto writes from Abuja via vic.abuto@ gmail.com

here was a time when I too believed in President Muhammed Buhari. Fed up with the system and the way things were going, I was desperate for a change at the top of our country. Yet by now, it is clear as day that we didn’t receive change, we received more of the same. Buhari promised to be the father of all Nigerians, put an end to tribalism, and fight corruption like the integer saint he

INWALOMHE DONALD Donald writes from Birnin Kebbi, via inwalomhe.donald@yahoo.com

ebbi State consists of 21 Local Government Areas (LGAs), four emirate councils (Gwandu, Argungu, Yauri and Zuru), and 35 districts. Community leaders in Kebbi State are involved in the maintenance of transformers and collection of revenue for Kaduna Distribution Company. In dealing with the issues affecting the poor performance of Kaduna DisCo, Governor Atiku Bagudu of Kebbi State has said that “In the power distribution business, what is critical to success is the capacity to generate enough revenue to pay for the electric power distributed to the customers, and to increase profitability.” Governor Bagudu believes that by setting up a more robust, sustained and credible customer engagement platform, with a responsive 2-way communication process between the customers and the utility, there will be ease of resolving issues and complaints, and the customers will feel cared for and this will prompt a rapid response by the customers to perform their obligations towards the company. Electric transformers and revenue are tied to community leaders in Kebbi State. Each community knows how much electricity its transformers consumed and how much revenue the community will collect and remit to the DISCO in Kebbi State. Without

Friday 21 December 2018

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The wasted years pretended to be. I was sure that our courts would be flooded with cases of corrupt officials just days after Buhari taking office. Instead, he tragically fooled me, and the consequences are felt by all of Nigeria. He has not fenced in corruption, and this disease is still rampant in all sectors of society. We all know that this is the primary reason that prevents sustainable development, job creation and investment in our economy. We also know that all Nigerians desperately need these to build a better future for their children.

‘

What matters now is the way forward. We don’t have the luxury of staying indifferent to our country’s fate and future, as it is our and our children’s fate and future

’

And it dawns on me that Buhari is just not the man who can deliver progress on these issues. It may be his age, it may be the promises he made to his friends, frankly I do not care much anymore at this point. What matters now is the way forward. We don’t have the luxury of staying indifferent to our country’s fate and future, as it is our and our children’s fate and future. And, in fact, we do have a choice: The choice of someone new, fresh, healthy, successful – all attributes hardly applicable to Buhari’s presidency.

The choice, then, is clear: We need to vote for the person that is most likely to beat Buhari at the polls. At the moment, this seems to be Atiku. And he also is a candidate who has presented a clear vision and an audacious plan for the future. I am looking forward to the presidential debate to see if any of the other candidates can offer something better. In any case, unfortunately Buhari has missed his chance and wasted 4 precious years.

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Discos’ poor remittance: Governor Atiku Bagudu innovative solution a full deployment of pre-paid meters, Kebbi State is collecting all the revenue from power supplied which impacts their ability to pay Kaduna disco for power received and in turn, the company is able to pay back the Generation Companies. The problem is particularly worse with the Distribution Companies which are most exposed to the public. The Discos are the ones to be blamed anytime there is power cut, anytime there is low voltage, anytime there is tariff increase, anytime there is problem with power supply. Governor Bagudu has identified that lack of sufficient energy supply from grid; old, obsolete networks; lack of maintenance of network equipment, poorly trained manpower; poor customer data; low meter penetration; health, safety and environmental issues; and a near absence of investments due to poor revenues, inadequate tariffs and external funding constraints are affecting Kaduna disco in Kebbi State. The governor has come up with solutions on the refusal or the inability of government parastatals and MDAs not paying their bills to Discos nationwide. It is strange in Nigeria that a state like Kebbi can boast of 24-hour electricity. I thank Governor Atiku Bagudu for setting this example. The governor’s mission was to provide 24 hours uninterrupted power, hence, he bought over 200 transformers and other important electricity facilities

that would make it possible for distribution company to supply regular electricity to Birnin Kebbi and the 21 local government areas of the state. The current electricity supply is as a result of the government’s strategic move to tapping from the power supplied to the Niger Republic. States and local governments have adjusted to the reality of power privatization in Nigeria. According to Governor Bagudu, 60% of disco problem is distribution and revenue collection. He has involved community leaders in revenue collection for the disco in Kebbi State. The ability of electricity distribution companies to successfully bill and collect revenue for power supplied to consumers is critical to the overall viability of Nigeria’s electricity supply industry. Governor Bagudu has made it mandatory for Distribution Company to know what their customers are and their power consumption habits. “The financial liquidity of the electricity industry remains as the most significant challenge affecting the sustainability of the power sector. The major contributors to the financial crisis in the industry are tariff deficits, high technical and commercial losses exacerbated by customer apathy arising from estimated billing and poor quality of supply in most load centres,” Bagudu explained. The governor had insisted that DisCos were having difficulty fund-

ing distribution infrastructure, and thus, called on state governments to provide facilities to protect Federal Government’s 40 per cent stake in the power sector. States were called upon to offer support towards improved power infrastructure in their respective domains in order to protect governments’ stake. The governor has said, “It is no longer news that the power distribution companies are having difficulty funding distribution infrastructure. Therefore, as collective 40 per cent shareholders, we cannot sit back without finding a solution.” The Bureau of Public Enterprises (BPE) had said most of the power distribution companies in Nigeria were technically bankrupt, adding that there was a need to immediately solve the challenges bordering on price structure and liquidity of DisCos. The Director-General, BPE, Alex Okoh, was quoted as saying that: “We need to solve the liquidity challenge. How do we make the industry viable in terms of liquidity? If we take all the energy that the DisCos buy and the energy sold, assuming there are minimal losses on collection side, we’ll find it difficult to get enough revenue to push us through. “There’s a gap in the price structure. There is an empirical way of bridging other gaps. If we identity what that gap is, then government can handle the other issues. They (DisCos) need to improve infrastructure that consumers can pay

for, but technically they don’t have the capacity to do so. The poor remittance by electricity distribution companies to the Nigerian Bulk Electricity Trading Plc for the energy sold to them has become a serious concern for the regulator of the power sector. The Nigerian Electricity Regulatory Commission, in its report for the second quarter 2018, noted that the liquidity challenge in the Nigerian electricity supply industry continued to manifest during the period under review. “The challenge of poor remittance remained a serious concern to the commission as it is one of the main causes of the liquidity crisis facing the Nigerian electricity supply industry. To address the poor remittance to Discos, Governor Bagudu, 60% of disco problem is distribution and revenue collection. He has involved community leaders in revenue collection for the disco in Kebbi State. It added, “Financial illiquidity remains one of the most significant challenges threatening the sustainability of the power industry. The liquidity challenge is partly attributed to the nonimplementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft, and consumers’ apathy to payments under the widely prevailing practice of estimated billing.”

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The tragedy of Nigeria rural agriculture MICHAEL NICHOLAS-LUTHULI NICHOLAS-LUTHULI is a Pan-Africanist. He writes from Lagos, Nigeria.

s Nigerian land so fertile for herders? Or do Nigerians need second phase of colony by herdsmen? Since the New Year, more than 80 people have been killed in clashes between nomadic herdsmen and farmers in Nigeria’s central Benue, Taraba and Nasarawa states. Herders, mostly from the Fulani ethnic group, and farmers often clash over the use of fertile land. For a very long time, the Nigerian government did not offer a concrete plan to solve the problem, doing little more than giving cliché political sermons, condemning the killings and issuing palliatives. But after the latest killing spree in

early January, the government announced that they have finally found a solution that would end these clashes once and for all: “cattle colonies”. “We have to deal with an urgent problem, cattle rearing and the conflicts between farmers and herdsmen, and actually bring it to a halt … Let us do our own duty by eliminating the conflict by creating cattle colonies,” the government’s Minister of Agriculture and Rural Development, Chief Audu Ogbeh said. The Nigerian public’s initial reaction to the announcement was one of disinterest and confusion, as no one seemed to understand what a “cattle colony” was. Eventually, many communities realised that implementing this policy could lead to a disaster and outrightly rejected it. While to the government it might make sense to allocate land for pastures to cattle herders, to many Nigerians it doesn’t. In their rejection of the policy, some Nigerians resorted to sarcasm. “What is cattle colony? We have been colonised by the colonial masters, and now we will be colonised by cows?”,

quipped Attorney General and Commissioner for Justice of Taraba state. Yusufu Akirikwen. So what is the “cattle colony” policy and why are many Nigerians rejecting it? Why is there a conflict between farmers and herders? Competition for land is fierce in Nigeria, and originally this had nothing to do with farmers or herders. In Nigeria’s south, land ownership is a sign of wealth, prosperity and power. A man’s possession of land can also be a measure of his authority. This perception is strong in rural communities, and so, fights and aggressions over land acquisition have become common. Now, cattle herders have introduced a new dimension to the issue. Over the past few decades, three parallel processes have put a huge strain on Nigeria’s fertile land. First, the population of Nigeria has doubled in the past decade and a half and will double again by the year 2050; this has increased the demand for agricultural products. Second, the expansion of urban centres to ac-

commodate internal migration and population growth has taken up huge swaths of arable land from farmers. Third, gradual desertification in the north, due to climate change and other factors, has rendered massive tracts of land unusable for agriculture or cattle herding; currently, 11 out of 19 states in the north are severely threatened by soil erosion. All this has not only shrunk the amount of land available for farming and pastures but has also pushed cattle herders further south. In the past, farmers and herders were able to manage disputes, primarily through the community justice system that employs dialogue and small peace talks in village squares. But that inter-community conflict resolution process no longer works because grievances have increased in number and dimension. Individual resentment transformed over time into large-scale violence. The issue eventually assumed an ethnic dimension and has been presented as a problem between the north and the south.

It is important here to point out that land disputes happen all over the country and are not necessarily always related to cattle-herding. For instance, in July 2017, clashes between two communities over land in River state – Nigeria’s oil-producing delta - left close to 150 people dead and thousands displaced. What is the ‘cattle colony’ policy? According to the Ministry of Agriculture and Rural Development, the “cattle colony” policy is going to solve the ongoing problems between herdsmen and farmers by designating vast tracts of lands in each state as herding grounds. Herdsmen will use these designated herding grounds, or “cattle colonies” to feed their livestock, and as a result will not feel the need to disturb the fertile agricultural lands that belong to farming communities. Note: The rest of this article continues in the online edition of Business Day @ https://businessdayonline.com

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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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BUSINESS DAY

Editorial

Going beyond Akindele on sexual harassment in higher education

ustice Maureen Onyetenu of the High Court of Justice, Osogbo on Mo n d ay , D e c e m b e r 1 7 , 2 0 1 8 s e nt e n c e d dismissed Obafemi Awolowo University lecturer Professor Richard Iyiola Akindele to three counts of two-year sentences for sexual harassment of his student, Miss Monica Osagie. Because the sentences would run concurrently, Akindele would serve two years in jail rather than six years. The judge made Akindele an example against the scourge of sexual harassment of students in higher institutions. In her judgement, Onyetenu dismissed the plea bargain arrived at by prosecution and the defence following change of plea to guilty by Akindele. She averred, “This kind of issue is too rampant in our tertiary institutions. We send children to school; they come home telling us that lecturers want to sleep with them. We cannot continue like this. Somebody has to be used as example. Even primary school pupils are complaining. Telling me to suspend sentence does not arise. Plea bargain does not arise. Maybe, the case continues to occur and reoccur because someone has not been used as example. It is time for the court to start upholding the right of the children, espe-

cially female students. The case is endemic.” She slammed Akindele 24-months jail term for asking Miss Osagie for a sexual benefit, another 24 months for soliciting from the victim sexual benefit to enable her to pass the examination, 12 months for concealing evidence on the WhatsApp application on his phone and 12 months for falsifying his age. The judge affirmed that sexual harassment in higher education has become a public interest cause. Plea bargain applies in public interest cases, she stated, but would benefit the defendant only where his actions positively align with the interest of the public. “The menace is getting to secondary and primary schools. I am a pastor and a counsellor. I know mental torture many of our female students have been subjected to by the likes of the respondent. The adverse effect of such action is huge. Many of his likes have been awarding marks to those students that are ready to warm their beds, thereby releasing half-baked graduates into the society,” Justice Onyetenu stated. The Akindele versus Osagie sex-for-marks saga started in April 2018 with the release of a WhatsApp audio playback wherein a lecturer was bargaining for sex with his student. The lecturer demanded five rounds of sex and the student asked for an

‘A’ score in return. The lecturer said he could not grant such a mark, at which point the student backed out. It was a classic reverse entrapment. Miss Monica Osagie, an MBA student, had caught Prof Richard Akindele in the trap he set for her. The release of the tape into the public domain caused an uproar. Obafemi Awolowo University promptly investigated the matter. On June 19, it acted on the report of its panel. The report made for sober reading. First, it submitted that Professor Richard Akindele had an “inappropriate relationship” with his student, Miss Monica Osagie. It established this fact “through their conversation in the audio recording; his reply to the query; the oral evidence; and the printed WhatsApp conversations tendered before the committee”. The lecturer “compromised his position as a teacher and examiner” as his conversations with the student were about examination scores “and inducement of favour for the alteration of examination scores.” Even as the student scored 45 percent in the paper, the lecturer made it seem she scored only 33 percent and offered to change that to a pass mark in consideration for sexual favours. The panel dismissed as unsupported by any evidence the professor’s claim

that the student knew she passed with a score of 45 but sought an ‘A’ grade as the reason for his sexual harassment. The action of the professor, the panel submitted, is “scandalous behaviour that has brought ridicule to the name of the University and has tarnished the reputation of the University, as it portrays the University as an institution where its teachers and examiners trade marks for sexual favours.” The university dismissed its professor of accountancy of long standing. The state then took over the matter and charged Akindele to court. The judgement of Justice Onyetenu is the culmination of the matter. The speed in taking decisive action in this case is commendable. Both the Obafemi Awolowo University and the Government acted with admirable urgency. The stress on setting an example by the judge is also significant. The court made the right call in applying punishment as deterrence against continued misbehaviour. The higher education system in Nigeria must act now against sexual harassment. They should evolve policies and guidelines for teachers and students. Sexual harassment creates a hostile environment inimical to learning. The places where young people go to learn best practices should cease being exemplars of bad practice.

HEAD, HUMAN RESOURCES Adeola Obisesan

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Friday 21 December 2018

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MoneyInsight Personal Finance: Investing Retirement

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Financing

Nigeria champions African fintech innovation, aims to go beyond hype STEPHEN ONYEKWELU

ow Nigerians relate to and manage their finances is changing and the pace will be accelerated in the coming years as fintech thought leaders in Nigeria and Africa activate Africa Fintech Network at the maiden Africa Fintech Festival in Lagos. Fintech in Nigeria has been developing rapidly, pricking the attention of both local and international investors. Till date Nigeria has over 50 fintech start-ups that make up the fintech ecosystem with investment exceeding $200 million between 2014 and 2015. These activities have been happening in silos, with individuals or companies in Nigeria’s fintech space operating in isolation from one another. Bringing all the stakeholders under an umbrella in order to foster a robust fintech ecosystem in Nigeria will have an innovation spill over effect on the whole of Africa. “Nigeria’s fintech today is a thriving ecosystem and industry. If you look at the evolution that has taken place, particularly in the payment environment, you see Nigerian companies that five, six years ago did not exist or were unknown” Segun Aina, president of Fintech Association of Nigeria told BusinessDay in an exclusive interview. The first African Fintech Festival held 3 – 5 December in Lagos and hosted over 600 delegates and speakers from over 25 countries

across Africa, Asia, Europe and North America. The Festival comprised two day Conference, series of preconference and partner activities took place at the Inlaks Ltd’s new Innovation Lab known as “The Hatch”. At The Hatch the Africa Fintech Festival Startup Fair too place and featured the talents of young and dynamic Innovators from across various technological spheres showcasing their ingenuity and prowess in proffering meaningful and workable solutions to challenges militating against the growth and economic development in Nigeria and beyond. One milestone event was the inaugural meeting of the UK-Africa Fintech Investment Group organised by the UK-DFID, held via videoconference between key representatives from the UK and Africa and was co-chaired by Alastair Lukies, the UK Prime Minister’s Business Ambassador for Fintech, and the President Fintech Association of Nigeria and Segun Aina, convener, African Fintech Network. The objective of the meeting was to build links between fintech investors and other stakeholders in the UK and Africa, identify key constraints to investments and agree on a priority of actions going forward. “I think there is a lot happening in Nigeria. There are fintech products that have been developed in Nigeria, which have application in Asia or the U.K. In the U.K. there are about 4 million unbanked adults. So, Nigerian fintech entrepreneurs have a large market to export their

From L-R : Kasirim Nwuke, chief, New Technologies and Innovation, United Nations Economic Commission for Africa (UNECA) Ethiopia; Ibrahim Mohammed Awal, honorable minister for Business Development, Ghana; Amine Mati, senior resident rep & mission chief for Nigeria, International Monetary Fund (IMF); Lanre Osibona, representing his excellency ,Yemi Osinbajo, vice president Federal Republic of Nigeria; Segun Aina, president FintechNGR /convener Africa Fintech Network; Patrick Adewutan MD/CEO ECO Bank; Ebrima Faal, senior director, Africa Development Bank, Nigeria at the inauguration of the Africa Fintech Network at the Africa Fintech Festival 2018 at Landmark Event Center, Lagos in December 2018.

fintech ideas and products to” Susanne Chishti, founder/CEO of Fintech Circle, Europe’s first Angel Investment Network for fintech startups. The series of pre-conference events was concluded with the Africa Fintech network Roundtable session where fintech leaders and stakeholders from many African countries including Egypt, Ethiopia, Kenya, Uganda, Ghana, Nigeria and South Africa brainstormed on the way forward. Some international organisation represented at the Festival were United Nations Economic Commission for Africa UNECA,

Africa Development Bank, representatives of several global institutions such as the International Monetary Fund (IMF), regulators and other key fintech influencers from outside of Africa had robust discussions on the need for the formation of a network and council, made up of self-regulating National Fintech Association in each African country. At the end of the round table, the Council of the Africa Fintech Network was set up made up of representatives of seven countries-Nigeria, Egypt, Ethiopia, South Africa, Uganda, CoteD’ivoire, Senegal. Other monumental strides

included the signing of a Memorandum of Understanding (MOU) between the Fintech Circle UK represented by its CEO Susanne Chishti and the African Fintech Network represented Dr. Segun Aina. The event concluded with pitching of various innovative solutions by selected young innovators to our distinguished panel of judges, and the innovator, FINT, who created a “P2P” lending platform, emerged as the winner of the start-up challenge. Ethiopia, Uganda and Kenya have indicated interest to host 2019 African Fintech Festival.

Twenty graduates gain employment through Digify Africa Guinness, FRSC flag off 2018 ember months safety campaign

nother set of 20 g r a d u a t e s f ro m different universities have been employed through Digify Africa, a digital marketing skill training programme that equips the next generation of digital talent. Florence Atunwa, director of programme at Digify Nigeria stated that the programme is a unique one because they come unemployed but end up being employed and dignified. “ Th e u n i q u e t h i ng about this is that they end up with a job after the training, out of this twenty only one person has ever stepped her foot in an advert agency where she did her internship” Atunwa said. “One of the requirements for this is that you must have no job, now they have all entered four agencies and have

become marketing communication consultants.” The age limit is 30, it is an eight week programme. The participants are fed and their transportation allowance provided for. Speaking to one of the beneficiaries Adeola precious whose story proved that all hope were lost for her but has been rebranded after being trained by Digify Africa, “I didn’t know digital has more to do than posting pictures on social media, I came with zeal to learn just to learn and I got more than I expected, we have to keep striving for the best, I wanted to build myself and get prepared for tomorrow and now I am proud of myself” Omow onuola Giwa another beneficiary and communicator stated “Being a communicator prior to this work I used

to work in a radio station, I used to think there was nothing more than communication, after leaving my job earlier this year there are so many things and more to do, the key is to remain consistent expect to see contents from me” Digify Africa is a non for profit initiative two months intensive boot camp where 20 aspiring digital professionals learn what it takes to have a career in digital marketing, the programme is designed to fit the specific needs of industry, covering a range of topics including community management, content and email marketing, brand online reputation management, ux design and more as they are being mentored by industry professionals from reputable advertising agencies from around the country.

uinness Nigeria Plc, has partnered with the Federal Road Safety Corps (FRSC) in Lagos to kick off this year’s “Ember Months” Responsibility Drinking Awareness Campaign; a special road safety programme to reduce carelessness on the roads during the last quarter of the year through to the holiday season. This year marks the fourteenth year of the partnership between Guinness Nigeria and the FRSC for campaigns on responsible drinking. The strategic safety campaign aims to enlighten motorists and the public about the dangers of drink-driving, especially during the last quarter of the year when celebrations, festivities and human vehicular traffic tend to be at their peak. Among the activities that occurred at the kick-off event were the donation to FRSC of breathalyzer kits, devices that test if a motorist is driving under the influence of alcohol; a dance drama with a theme that emphasized the, “no drinking and driving”

message, and the signing of the #JoinThePact wall. Join the Pact is a global initiative by Diageo that was launched in Nigeria in December 2017, to commit people to never drink and drive. Together with Diageo, Guinness Nigeria hopes to collect 50 million signatures by 2025. Speaking at the event, Baker Magunda, managing director/CEO, Guinness Nigeria Plc said, “Guinness Nigeria as a company is passionately committed to responsible drinking and enlightening the public about the values of responsible alcohol consumption. For this reason, this period referred to as the ember months, is crucial for increasing awareness about safety on our roads to ensure that Nigerians have an accident free experience.” Hyginus Omeje, FRSC Sector Commander for Lagos State, commended Guinness Nigeria Plc for donating the breathalyzer kits, and the giant strides taken in the past fourteen years to create awareness

around responsible drinking and safety on the roads especially during the ember season. He said, “The Ember Months Safety Campaign is in alignment with FRSC’s mandate and a demonstration of an unrelenting effort in stemming the trend of Road Traffic Crashes (RTC) and creating a safer motoring environment for all road users.” On his part, John Meheux, FRSC Zonal Commanding Officer, reiterated that the partnership with Guinness Nigeria Plc on the Responsible Drinking Awareness Campaign is proof that road safety should be a shared responsibility, and called out to other notable brands and organizations to emulate the actions of Guinness Nigeria Plc with regards to safety on Nigeria’s roads. The “Ember Months” event, had in attendance the National Union of Road Transport Workers (NURTW), top FRSC representatives including officers and men, the Guinness Nigeria Leadership Team, and other transportation related stakeholders.

Friday 21 December 2018

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BUSINESS DAY

MoneyInsight Cryptocurrencies bring new fears, opportunities for Nigerian banks A

nother bank in Nigeria distributed an anti-crypto e-mail to its customers. This one was a bit different, though. For the first time, I think, the bank threatened to impose restrictions on accounts discovered to be transacting in cryptocurrencies, including the “closure of such accounts”. The bank rationalised the decision by stating that “the Central Bank of Nigeria (CBN) has advised that cryptocurrency is not a legal tender in Nigeria and has cautioned against transacting in them.” I found this a bit funny. The USD is not legal tender either. In fact, the Central Bank, in this press release, also advised that foreign currencies are not legal tender in Nigeria and cautioned against transacting in them. Yet, your account is not at risk if you buy or sell foreign currencies, and the banks even hope that they can be the intermediary for your forex transactions. This defeats the “legal tender” argument. The newsletter went further to state that these account restrictions will be imposed “in order to guarantee the security of our customers’ funds”. That is rich. You can buy literally anything with your money: alcohol, cigarettes, Bet9ja ticket with 13:1 odds against Arsenal, church tithes, foreign currency, treasury bill, anything, but the bank will like to guarantee the security of your funds by making sure you are not able to buy or sell cryptocurrencies because they have special account-depleting attributes. This makes no sense to me. Cryptocurrencies, like the USD, or seashells, might not be legal tender in Nigeria, but they are not illegal properties. While banks have the right to terminate its relationship with any category of customers for any reason, they should really evaluate and be honest with their motivations.

The people who understand or hold cryptocurrencies have a clue, but the banks need to do a self-assessment and come up with sincere reasons themselves because it certainly is not coming from their concern for the integrity of their customers’ bank balances. The deposits in the vaults are not even guaranteed beyond the N500, 000 (±$1,400) covered by the deposit insurance scheme. The Nigerian Naira does not lose value against itself (theoretically), that is why 1 Naira remained 1 Naira even though it lost half its value against the USD during the last election cycle. Likewise, 1 Bitcoin is 1 Bitcoin, and 1 gold bar is 1 gold bar, regardless of what they convert to in USD at any point in time.

It is possible to record a loss if you purchase the Naira (forex trader), Bitcoin (crypto trader) or Gold (commodity traders) as an investment instrument, and every adult is within their rights to assess their individual risk profile and make investment decisions. Irrespective, my guess is that most Nigerians are not buying or selling cryptocurrencies as investments. For institutions with such incredible resources, I am always surprised about how little they understand of the emerging industry. The technology encourages extremely convenient peerto-peer transacting. This means that if players are aggressively excluded from the banking system, the peer-to-peer (or shadow/black) market will simply thrive more easily. This is good for

cryptocurrencies as a whole in the long term, but it is unfortunate for both the banks and regulatory authorities. The banks will lose an opportunity to capture a bit of the value from the growing trading volumes, and the authorities will find it even more difficult to measure and follow the flow of funds. This phenomenon can be observed whenever there’s a major lack of supply of (or embargo on) forex at the banks, which increases trading activity on the streets. I am sure the regulators also understand how difficult it is to tame an active peer-to-peer market based on recent experiences with Ponzi schemes like MMM in Nigeria. The wise thing to do will be to encourage transactions within the system so

that existing Know Your Customer/ Anti-Money Laundering monitoring systems at the bank account level can simply be extended to crypto transactions. People won’t stop transacting; however, banks and regulators can choose whether or not they want to know who is transacting, what they are moving and possibly where, by encouraging platform-based transactions, versus P2P. Nigeria is one of the most active markets in the world for cryptocurrency transactions for many reasons. By virtue of nationality alone, Nigerians are excluded from participating in the global economy at any meaningful level. Try sending $5,000 from the US to Ibadan in 12 hours as a Nigerian. An average person still struggles to pay and be paid internationally and we bear some of the highest costs and scrutiny in the world for whatever transactions we manage to successfully execute. Through the miracle of technology, cryptocurrency wallet addresses are not assigned nationalities, and the implication of that alone is that crypto will continue to thrive in markets like Nigeria. Banks and authorities need to understand that participants in the cryptocurrency space are not under any illusion that it is “legal tender”. They understand that it is simply acceptable tender to whoever chooses to accept it, like any other piece of property, and its value is determined by how much people want it at any given time. The only way cryptocurrencies will threaten the legacy financial system is if they remain and thrive outside of it. Let us play the long game.

Laolu Samuel-Biyi, is a partner at Hacked Capital and director at SureGroup

African Governance Report calls for better management of natural resources CALEB OJEWALE

he African Governance Report 2018 has called for better management of the continent’s natural resources to match the expected yields generated by the African Continental Free Trade Area (AfCFTA). The report, titled ‘Natural Resource Governance and Domestic Revenue Mobilisation for Structural Transformation’ was launched at a special plenary session held on Tuesday 4 December during the African Economic Conference, in Kigali, Rwanda. The African Governance Report is produced by the Economic Commission for Africa (ECA) and examines efforts made to improve the governance of Africa’s natural resources. If well managed and sustainably exploited, natural resources have the potential to drastically improve domestic revenue mobilization and promote economic

diversification across Africa, the report states. It shows that while Africa is endowed with diverse natural resources, including land and water for agriculture, forests for wood and non-wood forest products, and minerals, oil and gas for mining, many of the gains do not benefit all citizens, but only a few interests, including those of international multinational corporations. “There is an urgent need to sustainably manage Africa’s diverse natural resources, including land and water for agriculture, forests, minerals, oil and gas,” said Adam Elhiraika, ECA Director of the Macroeconomic Policy Division. He added, “Direct exploitation of natural resources has dominated economic activity, and the most common strategy of exporting commodities across Africa has been in raw form. We need to find a solution to this by insisting on value addition to our natural resources in order to generate

more income for our people.” The report also urges governments to strengthen policies, legal frameworks and institutions in respect of the management of natural resources in order to create viable economic and employment opportunities for citizens. “Natural resources can be a blessing if the institutions

charged with their management are responsible and free of corruption. It has been witnessed across the continent that natural resources such as minerals and oil can become a curse to the population, but this can be resolved by deliberate and organized exploitation,” said Alan Hirsch, Director of the Graduate

School of Development Policy at University of Cape Town. During the session, Hirsch noted that better management of resources will avert much of the damage to agriculture and natural resources that is caused by climate change and adverse weather effects, thus benefitting farmers and the majority of Africans that depend on natural resources for their livelihoods. The African Development Bank’s African Natural Resources Centre boosts the capacity of African countries to achieve inclusive and sustained growth from natural resources by providing practical knowledge and expertise, advisory services, technical assistance and advocacy for improved and transparent management of renewable and non-renewable resources. The Centre can also assist African countries to maximise development outcomes derived from managing natural resources.

Friday 21 December 2018

BUSINESS DAY

CITYFile Oyo hands over 5.76 km rural roads AKINREMI FEYISIP, Ibadan

O Pipeline vandalism at AbuleEgba area of Lagos State early Wednesday morning razing down several houses, property and many vehicles. Pic by David Apara

Girl burnt to death, mother, 2 siblings suffer burns

five-year girl, Nifemi, was burnt to death, while her mother and two siblings suffered severe burns when their makeshift house was allegedly set ablaze by a 45-year-old man. Commissioner of Police (CP) Lagos command, Imohimin Edgal, o who confirmed the incident to newsmen, said that the victims were sleeping in their residence in Alagbado, Lagos, when the incident happened. Edgal, who spoke to newsmen after visiting the scene on Wednesday, said that the suspect had been arrested. He identified the victims as Anitan and her children- Ayo, Esther and Nifemi. According to him, one of the children, Nifemi, five years, died as a result of the burns she suffered, while the woman and her two other children suffered various degrees of burns. “They are currently receiving treatment at Gbagada General Hospital. “This is the dwelling place for a woman and three of her children. “They were sleeping and suddenly there

was fire outbreak. They sustained severe burns before they were rushed to the hospital. “Fortunately, the Divisional Police Officer and his team that came to their rescue did a painstaking search. They were able to recover a phone which was traced to Shola Adewunmi, who previously had serious altercation with the woman.” “Evidence we have so far is that the man purposely set fire on the house with intent to burn both the woman and her children alive. He has been arrested and I have ordered that he be taken to the state CID for further investigation,” he said. The police chief said that the suspect would be properly investigated and charged to court; assuring the public that outcome of the investigation would be made known. In another development, Edgal blamed people who refused to give information about the activities of NNPC pipeline vandals for the fire incident that happened at Abule-Egba area of the state on Wednesday morning.

Edgal, who was on the spot assessment at the scene, described the incident as unfortunate, saying it could have been avoided if information was given to security agents. He described the area as “notorious in pipeline vandalism’’. The police chief said that the command was waiting for the official report from the agencies in charge of pipelines, fire service and emergency in the state. He said that preliminary investigation by his men revealed that the fire spread through the gutters filled with petroleum product from a ruptured NNPC pipeline which destroyed houses, shops, electricity cables and more than 50 vehicles. The spot where the fire started was covered with a container filled with sand. Some of the residents of Pipelines Road, off Awori, AbuleEgba, claimed they never knew that vandals were siphoning fuel from the NNPC pipelines, while some admitted seeing fuel tankers from the spot.

Police uncover another fake wine factory in Lagos …suspect says ‘my drinks are not fake’ JOSHUA BASSEY

he police in Lagos have uncovered another factory where assorted fake wine and fruit juice were produced at Aboru area of Oke-Odo, Lagos. Various assorted wine, fruit juice and empty bottles were recovered from the uncompleted one-storey building which doubles as factory and owner’s residence, when the police team visited on Wednesday. Imohimin Edgal, the Commissioner of Police (CP) in Lagos, told journalists that the 48-year-old owner of the factory has been arrested. It would be recalled that three persons were arrested on Thursday, December 13, at Ikotun area of the state for operating fake drugs factory, while many of the fake drugs and chemical materials were recovered. Edgal said that apart from wine products, several chemicals and reagent used for the manufacturing of the products were also re-

covered by the police. According to the CP, samples of products recovered from the factory would be sent to the National Agency for Food and Drug Administration and Control (NAFDAC) for laboratory analysis. Edgal said that the house had been sealed until after investigation was concluded. “This matter is an interesting case because it has to do with the health of Lagosians. Based on intelligence information that some fake assorted wine, gin are being brewed in an uncompleted building. “On December 18, 2018, at about 2pm, the command received credible information that there exist a fake wine/ brewery in an uncompleted one-storey building at Aboru area of Oke Odo, Lagos, where assorted wine and alcoholic beverages were being produced. “Based on the information, I directed the Area Commander, Area P, Alagbado, to mobilise to the scene, search and seal off the factory. “When the team arrived the scene, they executed a search warrant which enables them

to search and recover the following items: 4000 bottles of already produced, packed and labeled adulterated wine of different brands. “10000 empty bottles, drums of different sizes and various chemicals and reagents used as raw materials and other tools used in the production of fake wine/ fruit drink,” he said Edgal said further investigation revealed that the said the suspect, a secondary school dropout, had neither the requisite qualification nor licence to embark on such type of business. He said that incidentally, the factory served as both production base and residence for the suspect, his wife and four children. The suspect said he was still awaiting approval from NAFDAC to commence commercial production of the drinks. He also denied that the drinks were fake, insisting that he produced them basically with local fruits. “I am a creative minded person and all l do here is the production of fruit based drinks. I have not started selling because I am yet to get approval from NAFDAC,” he said.

yo State government has completed and handed over 5.76km rural roads at Ikereku in Akinyele area of the state. The road project with 19 culverts was the pilot scheme of the Rural Access and Agricultural Marketing Project (RAAMP) which cut across Ikereku - Oloronbo – Abidogun – Ileba – Abebi - Onigbongbo Village linking Iware Road. Speaking at the opening of the roads, Governor Abiola Ajimobi said it was another success story of his administration, stating that the project was aimed at improving the living standards of the people at the grassroots and providing access roads for them to convey their farm produce to the city. The governor, who was represented by the state commissioner for information, culture and tourism, Toye Arulogun, said that more communities would benefit from the scheme, promising that the project would cover over 500 kilometers of rural roads in Oyo State. He, however, enjoined the people of Oyo State to support the All Progressives Congress (APC) in the forthcoming elections so as to guarantee more dividends of democracy. Oyewole Oyewunmi, the commissioner for agriculture, natural resources and rural development, commended Ajimobi pioneering the RAAMP project, emphasising that the initiative would assist in promoting agricultural production and generate employment opportunities for the people. Yode Ayanlowo, the coordinator of the RAAMP said that the main objectives of project were to improve rural access and agricultural marketing in selected participating states while enhancing sustainability of the rural and states’ roads network, stressing that the project is meant to connect small holder farmers in participating state to local agricultural markets with all weathered access road in selected and prioritised rural development areas. Chairman of Akinyele East Local Council Development Area (LCDA), Ayo Akinpade described the project as a good omen that would increase agricultural productivity in the area.

Yultide: Police to protect worship centres in FCT

he Federal Capital Territory (FCT) police command says it is adopting proactive measures to strengthen security at churches, recreational centres, shopping mall among others, especially during the Christmas and new year celebrations. The FCT Commissioner of Police (CP) Bala Ciroma, stated this while addressing newsmen in Abuja. “I want to reassure FCT residents that the command has made adequate security deployment for the Christmas celebration, “he said. He said some of the security measures put in place include strategic deployment of both uniform and plain-clothe police operatives to strategic places in the territory. The commissioner said that officers and men of the Police would be on foot and vehicular patrols, activate stop and search and continue raiding black spots. He said that the ban against the use of fireworks and ‘knockout’ is still in force.

BUSINESS

Friday 21 December 2018

COMPANIES & MARKETS

DAY

GSK to split after striking Pfizer consumer health deal

Pg. 18

C O M PA N Y N E W S A N A LY S I S A N D I N S I G H T

BANKING

Access merger deal reveals hidden N180bn Diamond bank NPLs LOLADE AKINMURELE

uring a much aw a i t e d j o i nt conference call Wednesday, Access Bank and Diamond Bank said the new entity to emerge from a merger deal between both banks will write off an additional N150 to N180 billion in NonPerforming Loans (NPLs) carried on the books of Diamond by year-end, much to the annoyance of shareholders who called in. Shareholders were irked by the fact that the retail lender only reported NPLs of about N100 billion in its nine month 2018 financial statement published in October, only to turn around and say it carries additional NPLs of between N150 billion to N180 billion. The additional NPLs could take the retail lender’s total bad loans to between N250 billion to N280 billion. The bank’s book value as at September 2018 was less than that, at N221.6 billion. “You have misled minority shareholders who rely on information from your financial statements to make decisions,” an analyst from EFG Hermes who was on the

conference call said. Uzoma Dozie, the managing director of Diamond bank, responded by saying the additional NPLs surfaced after the bank’s adoption of IFRS 9, a new financial reporting standard that forces banks to make new provisions for loans that were hitherto not recognised. Dozie seemed to suggest that while other banks implemented the new rules at the start of the year in January 2018, Diamond bank did not follow suit. The planned N150 billion to N180 billion to be written off by the new entity may not be accurate, Access Bank’s CEO Herbert Wigwe said. “It could be N200 billion or N220 billion, but we are prepared to write it all off and have a bank with clean books,” Wigwe said. The NPL clean-up required at Diamond implies that the N72 billion paid by Access to acquire the bank may not be so cheap after all. The total value of the transaction implies that Access is paying 0.3 times book for Diamond. “Access may have bought a melon that would spring up more surprises as the deal progresses,” one investor who did not want to be named told

Business Day. “The fact that Diamond agreed a deal of N72 billion when it reported a book value of N221 billion is an indictment that it doesn’t believe it is worth that much,” the investor said. “If it really is, why should the deal even happen? Diamond bank gained 9 percent for the third straight day Wednesday, stretching a rally that started since news of the merger deal with Access broke. It closed N1.25 per share, according to NSE data. The bank has a book value of 0.1x, the lowest among peer

banks, as investors appear to signal disbelief over the true value of the bank. To maintain healthy capital levels post-merger, Access Bank said, during the conference call, that it is concluding a tier 11 capital raise of about $250 million and has obtained regulatory approval to raise N75 billion ($207 million) in a rights issue during the first half of 2019. As a positive from the deal, the bank estimated cost synergies from the merger of at least N30 billion per annum pre-tax, to be fully

realised in three years post deal completion. That means the new entity will save N30bn on the back of reduced costs from combined operations, which brings a boost to profitability. “The full extent of synergy cost potential will be evaluated by the Joint Implementation and Integration committee,” Access bank CEO, Wigwe said. There will be no staff layoffs, but the new entity will combine the best performing hands, Wigwe added. When asked what his new

HOUSING

FMBN launches mobile digital platform CHUKA UROKO

etermined to entrench transparency and accountability in the operations of the National Housing Fund (NHF), the Federal Mortgage Bank of Nigeria (FMBN) has launched a mobile digital platform that gives contributors real-time access to information on their NHF accounts. The FMBN Digital Platform is an ecosystem of innovative mobile messaging solutions integrated into a single suite and seeking to address the challenges associated with effective monitoring, management and notification of monthly NHF contributions nationwide. The new platform was unveiled Wednesday in Abuja, marking a historic milestone in FMBN’s strategic plan to leverage technology and automate decades-old manual business process in order to enhance the bank’s operations.

Key components of the mobile platform solutions suite of services are the *219# USSD Short Code; mobile apps for android & iOS platforms; online self-service Kiosk and SMS and emails notifications. The platforms enable contributors to receive instant notifications, stay in the know of their contributions and remittances to the scheme on the go, update their records, check contributions, register and retrieve NHF numbers, request for statement of account, calculate home affordability and mortgage payment, and search for NHF related information from FMBN bulletin board service. The systems are secured, available, reliable, easily accessible and easy to use with or without an internet connection. Key advantages of the mobile solutions include giving each NHF contributor increased access to their contributions, greater transpar-

Continues on page 16 Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

position will be in the new entity, Uzoma Dozie of Diamond bank said “I don’t know what I will be, but I’ll be an ambassador of the bank, possibly a shareholder as well.” In response to a question asked whether the merger deal was triggered by an unpaid loan taken by his father, Pascal Dozie’s company Kunoch Holdings, Uzoma Dozie said it was false. “There is nothing significant in terms of exposure to Access bank,” Dozie said, declining to state the amount of the loan.

BUSINESS DAY

C002D5556

Friday 21 December 2018

COMPANIES & MARKETS HEALTH

GSK to split after striking Pfizer consumer health deal

laxoSmithKline plans to split into two businesses — one for prescription dr ugs and vaccines, the other for over-the-counter products — after forming a new joint venture with Pfizer’s consumer health division. The revamp is the boldest move yet by GSK Chief Executive, Emma Walmsley, who took over last year. It will lead to the creation of a consumer health giant with a market share of 7.3 per cent, well ahead of its nearest rivals Johnson & Johnson, Bayer and Sanofi, all on around four per cent. Walmsley has previously played down the idea of breaking up the group, something that a number of investors have called for over the years. On Wednesday, however, she announced that GSK and Pfizer would combine their consumer health businesses in a joint venture with sales of 9.8 billion pounds ($12.7 billion), 68 per cent owned by the British company, in an all-equity transaction. GSK said the deal laid the foundation for the creation of two new UK-based global companies focused on pharma/vaccines and consumer healthcare within three years

of the transaction closing. For Pfizer, the deal resolves the issue of what to do with its consumer health division, which includes Advil painkillers and Centrum vitamins, after an abortive attempt to sell it outright earlier this year. GSK, whose consumer products include Sensodyne toothpaste and Panadol painkillers, had withdrawn from that earlier Pfizer auction process. However, Walmsley said the opportunity to strike an all-equity deal cleared the way for the new agreement. “It’s something we’ve been able to do quickly and quietly,’’ she told reporters in a conference call. “What this deal is all about is the opportunity to strengthen two businesses — a world-leading consumer healthcare business and a new GSK that is focused on pharma and vaccines.’’ Shareholders welcomed the news and the shares jumped seven per cent, with Jefferies analysts saying the future separation could crystallise value. The new joint venture with Pfizer is expected to generate total annual cost savings of 500 million pounds by 2022 for expected total cash costs of 900 million pounds and non-

HOUSING

FMBN launches mobile digital ... Continued from page 15 ency, clearer disclosure and convenient access from the comforts of their homes/offices or while on the go via phone or email. Ahmed Musa Dangiwa, FMBN’s MD/CEO, expressed delight and stated that the launch of the Digital Platform was the result of the new management’s commitment to addressing, in a structured manner, the challenges that have bedeviled the effective implementation of the NHF scheme. “On resumption of office in May 2017, we audited the system and discovered that most employers underremit deductions, remittance schedules of deductions are not provided, contribution records are updated and maintained in passbooks and most contributors do not know the status of their contributions. “Having critically evaluated the issues, we decided to automate the process to give contributors unfettered ac-

cess to the information pertaining to their contributions and the policies associated with the scheme for greater efficiency, transparency, accountability and service delivery. I am extremely excited that, today, we are here to witness the realization of this strategic milestone”, he said. He noted that the launch of the platforms was significant because it marked the end of over 30-year period of opaqueness in the management of NHF funds – where contributors were completely in the dark about the state of their accounts. He added that the introduction of the mobile digital solutions has now put the power of convenient access to information about the state of NHF accounts in the hands of contributors since they can now manage, monitor, and receive prompt/ instant notifications via their mobile phones and email accounts on activities on their accounts.

L-R: Mark Okoye, Future Awards Africa Young Person of the year 2016; Biodun Shobanjo Chairman Troyka Holdings; Samson Itodo, winner of the Future Awards Africa For The Young Person Of The Year; Adebola Williams, co-founder, The Future Awards Africa, and Ngozi Nkwoji, portfolio manager, non-alcoholic brands, Nigerian Breweries Plc., presenting the Young Person Of The Year award at The Future Awards Africa 2018.

cash charges of 300 million pounds. GSK plans divestments of some one billion pounds. Wa l m s l e y s a i d t h e r e would be an inevitable impact on jobs but there was also an opportunity for cost savings in procurement and across the supply chain. The Pfizer deal is expected to boost adjusted earnings and free cash flow in the first full year after closing,

which GSK anticipates will occur in the second half of 2019. Pfizer, which already has a long-standing HIV medicines joint venture with GSK, said the transaction would be slightly accretive in each of the first three years after it closed. The consumer tie-up follows a deal by GSK earlier this year to buy Novartis’s stake in their consumer joint

venture for $13 billion. It comes as Walmsley tries to reshape Britain’s biggest drugmaker, which has seen its shares move sideways for years. Earlier this month, she agreed to buy cancer drug specialist Tesaro for $5.1 billion to try to revitalise its pharmaceuticals business, a high-priced acquisition that was poorly received by the market.

GSK has lagged rivals in recent years in producing multibillion-dollar blockbusters and it largely sat out a spate of deal-making by rivals under previous CEO, Andrew Witty. Seeking to reassure investors of its financial strength, GSK extended its guarantee on the dividend by stating it expected to pay unchanged dividends of 80 pence per share for 2019.

HOTELS

Wells Carlton creates 1000s of new jobs in hospitality industry FRANK ELEANYA

he launch of Well Carlton Hotel and Apartments has seen the addition of 300 direct employment and thousands of indirect jobs in Nigeria’s hospitality industry. Speaking at the launch of the five-star hotel in the heart of the Federal Capital Territory, Abuja, recently, Hosa Okunbo the chairman disclosed that 300 people are directly working with the hotel. Among this are foreigners, “In addition to thou-

sands of other indirect jobs that we have created,” he said, “There is no doubt that the numbers will go up as soon as possible.” The Wells Carlton took nine years to complete and furnish “because it could not have been ready sooner; but nine years, because for me, only the word ‘Perfect’ will do,” Okunbo explained. The hotel which shares neighbourhood with Aso Rock and the city centre boast of 55 rooms and 12 lush apartments all with spacious living rooms, three fully fitted en-suite bathrooms, guest toilets, premium furnished kitchens fitted with state-of-

the-art washers, dryers, dishwashers, ample storage facilities, with in-room climate control to ensure occupants are very comfortable no matter the weather. There are ample spaces for events including a conference centre suitable for private meetings and corporate events, a rooftop terrace that offers a transcendent view of the FCT, giving guests an elevated experience and a secluded ambience of serenity. The Wells Carlton Hotel also houses two avantgarde bars and four stately restaurants that serve continental and local

cuisines. Guests can also be treated to both ancient and contemporary beauty therapies at the Hotel Spa called Tirta Ayu. Professor Yemi Osinbajo, Nigeria’s Vice President who led the ribbon-cutting ceremony described the hotel as a significant transformation in hotel services in Nigeria, particularly in promoting the Nigerian brand. Yakubu Dogara, speaker of the House of Representatives, said the Wells Carlton Hotel and Apartments would boost the tourism segment in Nigeria as well as contribute significantly to the country’s economy.

BUSINESS

Friday 21 December 2018

COMPANIES & MARKETS

Business Event

DAY

E-COMMERCE

Zidora Group boosts e-commerce business with Arigo HOPE MOSES-ASHIKE

idora group is stepping up its digital business with the announcement of another e-commerce platfor m, called www.ar igo. com.ng. This follows the launch of Zidora errands three months ago. This new addition to the e x p a n d i n g e - c o m m e rc e market makes arigo.com. ng the latest addition in the online market space. The move represents a step up in competition across the fast-growing digital space. Fully aware of the fact that the world is going digital, arigo.com.ng offers sellers and consumers a platform where they can

me et online to transact businesses. Speaking on why arigo. com.ng was set up, Arinze For tune Madueke, CE O, Zidora Group, revealed that the platform was launched to enable sellers showcase their products. “We want to c reate a p o i nt w h e re everything is possible. A place where you showcase what you have for the world to see. Most times, you find pe ople who have s omething to sell very urgently but you don’t know how to go about it or where to locate the would-be buyer,” Madueke added. “There are lots of people who desire that exact thing you want to dispose but reaching them most times is a challenge, hence we

want to solve that problem. Our plan is to bring these people together, basically h e l p i ng p e o p l e m e e t at the point of their need. We offer special services of getting you anything you want”, he said. Responding to a question on the competition that the new venture would face, Madueke said,“Arigo is a big ship in a big ocean (Africa),” adding that his goal is to set up a robust e-commerce platform, that will serve as a one stop digital hub that will cater for everything human needs. “We will strive digitally to connect all persons, entities, companies and business into one global market t h ro u g h o u r i n n ov at i v e system.”

Vice President Yemi Osinbajo (m) flanked by Olukayode Pitan, managing director, Bank of Industry (3rd left); Okechukwu Enelamah, minister of industry, trade and investment, (l); Moahmmed Badaru, governor, Jigawa State (2nd l); Benedict Okey Oramah, president, AFREXIM BANK, (3rd r); Betsy Obaseki (2nd right) and Mabel Ndagi, head communications &external relations, BOI, (right), at a Visit to the Bank of Industry Stand at the African Trade Fair in Cairo Egypt.

CONSUMER GOODS

May & Baker optimistic of N2.45 rights issue, pledges higher returns FRANK ELEANYA

namdi Okafor, the Managing Director, May & Baker Nigeria Plc, says the just concluded N2.45 billion rights issue will be fully subscribed. Okafor, who stated this at a news conference on Wednesday in Lagos, assured shareholders of better returns in the years ahead. He said that the rights issue concluded two weeks ago would be well taken by shareholders. Okafor said that proceed of the offer would be used for business expansion and unlocking of opportunities inherent in the industry. He said that the company would divest to other businesses related to healthcare to create enhanced value to its shareholders

and stakeholders. “From 2020, we will begin to do some big investments and will likely raise further equity from then,” Okafor said. The company offered rights issue of 980 million new shares of 50k at N2.50 per share on the basis of one new share to one share currently held. The offer, which opened on Oct. 22 is expected to close on Nov. 28. He said that over N400 million of the expected N2.45 billion would be used to finance part of its equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production. Okafor said that over N500 million would be invested on capacity expansion for one of its cash cow products, Paracetamol, while mar-

keting and branding building would gulp over N500 million. According to him, about N400 million will be used to offset part of our current loan portfolio of about N950 million, while the remaining will be used to buoy working capital. “Our new strategic focus since 2017 is to build an international brand within the sub-Sahara Africa market,” he said. Okafor said that the company’s strategic goal was to become a preferred brand in Nigeria with the clear leadership and to become a regional healthcare powerhouse with strong and wide footprints in the sub-Sahara market. Commenting on ban of codeine, he pleaded with the Federal Government to review its position on outright ban because it was affecting the industry.

L-R: Eghosa Erhumwunse, national director, SOS Children’s Village; Chioma Obi, best graduating student of Dulux painter’s academy, and Kemi Ogunnubi, MD, CAP Plc, at the 2018 Dulux Lets colour activation held at St. Paul Primary School, Isolo, Lagos.

SUMMIT

Swift delivery liable for Konga’s upsurge to e-commerce summit JONATHAN ADEROJU

ollowing the deals and price slashes offered during its 2018 Black Friday sales tagged Konga Yakata, it has emerged that an amazingly swift and responsive delivery service is another factor that set e-commerce giants Konga apart before and after the month-long shopping fiesta and also responsible for its rise as Nigeria’s biggest e-commerce outfit. Konga Yakata, which ran from Thursday November 8th through Friday November 30th 2018 online @Konga.com and offline in Konga stores nationwide, broke all sales projections as the company enjoyed huge hits and footfalls on its composite platforms. Fascinatingly, a strong point which has made Konga stand out since its acquisition by the Zinox Group and merger with Yudala in May 2018 has been the ease with which it has solved the bristly issue of logistics/delivery which has remained a stumbling

block for many players in the sector. Associated with this is the highly professional and courteous disposition of the aforementioned well-trained delivery and customer experience team which is a factor that has made the company a firm favourite for millions of shoppers in Nigeria. According to a small business owner “Before Yakata, I had been impressed with Konga for the speed of delivery. All the items I bought up until that time never exceeded 48 hours before they were delivered by Kxpress,” “During Yakata, I was even more than impressed as I expected them to encounter some challenges with the increased volume of orders. Instead, I even enjoyed 24 hours and same-day delivery of most of the items I shopped. The delivery guys were also very professional, respectful and smiling all through, even on occasions when I was not

immediately around to receive my items and kept then waiting for a bit.” According to Stella Dim, an engineer with an oil-servicing company, Konga has won the hearts of many sceptical shoppers as a result of its integrity, quality-focused approach to ecommerce and professionalism. “Nowhere is this professionalism better demonstrated than in the conduct of their customerfacing staff – the delivery guys, store attendants and customer service team. Every interaction only goes to reinforce this confidence in the company, especially for many disgruntled shoppers who have had nasty experiences from other companies. Recently, a number of shoppers had taken to popular micro blogging site, Twitter to send positive shout-outs to Konga, commending the company for its status as a guaranteed source of quality products, its responsive, professional service and swift delivery.

L-R: Oyedokun Ayodeji Oyewole, president /chairman governing council, Institute of Information Management (IIM); Oseni Kolawole, director training; Abdur-Raheem Adebayo Shittu, minister of communications, and Adeniyi Adesanya, special adviser/consultant on political matters and government administration, office of the governor Okemosan Abeokuta, Ogun State, during the Panel Session at the 2018 Institute of Information Management National Summit, Induction, and Investiture Ceremony in Abuja.

L-R: Gbenga Oyebode, director, MTN Nigeria; Nonny Ugboma, Executive Secretary, MTN Foundation; Taiwo Oshinusi, director, Market Doctor; Shehu Tunji Akintade, chairman, Association of General and Private Medical Practitioners of Nigeria (AGPMPN), Lagos State Chapter, and Yetunde Ayo-Oyalowo, founder, Market Doctor, at the flag off ceremony of MTN Market Doctor in Tejuosho Ultramodern Market, in Lagos.

BUSINESS DAY

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CEO INTERVIEW

Friday 21 December 2018

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BUSINESS DAY

Ismail Ahmed

Founder and executive chairman of WorldRemit

Interview with Private Sector Leaders

90% of remittances in Africa are still offline – Ismail Ahmed Ismail Ahmed, founder and chief executive officer of WorldRemit in this interview with BusinessDay’s Frank Eleanya discusses the growth of the remittance market and the role his company is playing to enable markets in Africa go cashless.

hat is World R e mit’s mission

in Africa? We are a global business but Africa is our largest market. We send money from Europe, South America, to Asia, Africa and Latin America. In Africa we operate in 47 countries. We have invested in building an extensive network of partnerships with the banks and telcos that are launching mobile money and retailers to grow our business in Africa. Recently we started doing inter-Africa transfers to help businesses on the continent to leverage our extensive network and build globally. Why would a business in East Africa, West Africa and South Africa go through a lot of difficulties before sending a small amount of money to India, to China or to other parts of Africa where we have a lot of network that allows them to instantly put money into a bank account? Why should a business in Kenya sending money to Nigeria go through SWIFT which will take days, when it can instantly create a bank account to Nigeria? That is really where, having built the network, we are focusing and saying we can actually support SMEs in Africa. How many more African countries do you intend to expand to? We are in 47 markets in Africa. Most of those countries are now countries where we send remittances to, whereas we are now focusing and saying “why don’t we send money from those countries and help businesses and individuals send money across the world. So that is the next phase of

our goal. You have been playing in the market for a long time and have witnessed growth like in Nigeria where $22 billion comes from abroad. How do you see the market growing going forward? The growth that we are seeing is the market will move to full digitisation. We were one of the first companies that pioneered sending money to bank accounts in Nigeria instantly – we are talking about 2011. Almost 99 per cent of micro-remittances in Nigeria were cash-based. But look at today, the bulk of the money is going to bank accounts and not so much cash-based as before. We see acceleration of digitisation both on the senders’ side and the receivers’ side. If you look at today, 90 per cent of remittances are still offline. Nigeria is starting to move digital but in many parts of Africa 90 per cent of transactions are cash. We are working with our partners in Africa, hence we are in Nigeria because it is a big market, they are tech-savvy and they are everywhere in the world. Many countries now use our App; they can go to a corner shop and put some cash. We expect digitisation to grow on the receiver’s side where those who have got a bank account can get their money instantly while for those who are unbanked mobile money offers the alternative. Now you have MTN, Kenya MPesa, Eco-Cash, those are the mobile money services which are now enabling unbanked people to receive money with their phone. What are the bottlenecks you see in markets like

Nigeria which has about 1 per cent growth in mobile money? I think the greatest challenge for Nigeria has been the exchange rate issue. Fortunately, the Central Bank of Nigeria has done a fantastic job. The official rate which is the rate we get from the banks is kind of equal to the rate in the parallel market. Prior to this time, the exchange rate was different and a large chunk of Nigerians went to the informal network. That has also been a problem in many other parts of Africa. The World Bank’s estimate is a serious underestimation of the remittance market in Africa. Part of the reason no one knows the exact amount is that a big chunk of African remittances are informal, not going through channels that are regulated, not measured and it is a loss to the economy. We don’t know the size. And some of those are facilitating crime, tax evasion and so on. One of the really exciting trend is that digitisation is offering great benefits to customers. The reason why I think Nigeria is leading is if you go back to ten years or so Western Union ran about 80 per cent market share of the formal remittance space because of exclusivity arrangement with rich men and the costs were prohibitively expensive. The bulk of remittances were going through informal networks because they were cheaper but a lot riskier. Eventually the CBN was one of the first regulators in Africa to outlaw exclusivity and henceforth, Western Union lost the market share. Today they do not hold top position; we are even doing as much as Western Union was doing. There is a certain level- playing field in Nigeria than in a lot of markets now.

the banks. Nigeria is one of the most developed markets in terms of how you can move money from bank account to bank account and the access we have to instantly create bank accounts. Look at the US. It takes four days to move money from one bank account to another bank account and this is where we have fifteen licenses that we can create money into any bank in Nigeria. The move towards discouraging cash has really been positive. That is why we are hoping for Nigeria to be one of the first economies to move towards cashless. This is really helping in the fight against financial crimes in Nigeria and also improving the image of the country. With cash there is no auditory trail, but digitisation makes that possible. Somebody can take cash and disappear. Of course, in mobile money East Africa is ahead while in Nigeria it is still bank-led. But in terms of access to banking and financial services, Nigeria has boosted the move from cash to cashless.

They cost of sending money also has significantly dropped in Nigeria. So most people who were going through the informal markets because the rates were better or fees were lower have now seen that the formal network is a lot cheaper than the informal networks. So with the digital, they can just send their money through their bank accounts and you can send any amount. For

migrants because they are more aware of the situation back home they can send small amounts to their people, but you cannot do that with the informal network. That is the trend we see, which is helping remittances move away from informal to properly regulated channels. It also provides data for the government who can now know where the remittances are coming from in order to continue to grow that formal channel. It also helps in decisions of addressing

the bottlenecks that hinder investments. You know Nigeria, South Africa and some other African countries are yet to sign the AfCFTA. What impact do you think it will have on the remittance space? I know that Nigerians are pretty intense in recognising the importance of digitisation and it is part of the reason why you have high interconnectivity among

WorldRemit is one of the technology companies that have attracted big investments. But funding remains a big challenge for most African startups. Do you think there is a role for government to play in boosting the chances of bigger startup funding on the continent? Yes I think there is. Look at the UK, we started our business there in 2010. At the time it was difficult to raise money in the UK compared to Silicon Valley because of the concentration of investors there. Look at the statistics in 2010 the amount of money start-

ups raised in Silicon Valley alone compared to the UK as a whole. Things have changed; a lot of investors have recognised that and regulators are strategising with tax incentives and other attractive packages to encourage them to invest. We are beginning to see a lot of money startups are raising in the UK. In the same way some of the Asian governments are supporting their startups, I think African governments have not done as much in terms of recognising them. There is a lot of startups in Lagos, Nairobi and Cape Town. It is easy to get a small Angel investment but it is not when you need investors with deeper pockets. That is where we have a lot of challenge in Africa. I think in Africa we have not done enough to say “How do we encourage?” and “What do we need to do attract technology investors?” What specific lessons can African governments

learn from other continents that are active in supporting their startups? First, I think they can look at how easy it is to do business in their countries, how easy it is to incorporate companies. Are the contracts enforced? Will the investors be able to get their money easily? That is key because you are putting in some money the investors will like to know that at the end of the day there will be enough liquidity for them to get their money. And of course they want to invest in dollars, so can they get that hard currency when they want to exit from that business? Since they took a risk they shouldn’t be paying some amount of taxes in some markets in Africa, so can you create a tax structure that encourages risk investment capital? The tax is different from that of investment in an oil company? There is plenty of money in the world today but it is about the mov-

ing forces. The old regulations and laws need to be revised to recognise how the digital economy works. Do you see a future where fees elimination is possible and will encourage growth of mobile money in Africa? We charge 2 per cent from Nigeria to the UK. It was 7 to 8 per cent before. We were one of the first companies to drastically reduce the cost of our fees. But there is room for further reduction of fees. I think as we get scale it becomes possible. Part of the reasons why we charge fees is because we have to pay local banks because they gave us access to doing this and serve a lot of customers. The way we do it, we use our money already in the bank to pay customers instantly. So we take a bit of exchange rate risk. It could take us two days to get the money back from the bank. We are automating the way we serve our customers and I believe cost will become lower as soon as volumes increase. What should Nigeria look forward to in the coming years from World Remit? Nigeria is one of our biggest markets in Africa and we are seeing a lot of partnerships with big banks; banks that are big in Nigeria and also in Africa. So we are investing more to continue to build that network in Nigeria. We are also creating more brand awareness in Nigeria. Recently we sponsored Arsenal and one of the reasons we did that was because we know how the club is very popular in Nigeria and across Africa. That is helping us for brand awareness. We will also continue to make further investments and have partnerships with banks.

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Friday 21 December 2018

Expert highlights link between substance abuse, depression

Unsafe drinking water, poor sanitation, major challenge in developing countries

ANTHONIA OBOKOH

ubstance abuse and depression are commonly found together, says Richard Adebayo a consultant psychiatrist and clinical psychologist, at the Federal Neuropsychiatric Hospital Yaba. Adebayo explains that some of the correlations between substance abuse and depression among teenagers and young adults are on the increase in Nigeria. He further observes that abuse of these substances has thrown many teenagers and young people into depression, which is affecting the society today, adding that many have gotten their life prospects thwarted because they abused psychoactive substances. It is better they are aware and stop this dangerous lifestyle. “A psychoactive drug, psychopharmaceutical, is a chemical substance that changes brain function and results in alterations of perception, mood, consciousness or behaviour. The general trend in the abuse of these psychoactive substances is an addiction, be it to alcohol, cannabis and the rest of them,” said Adebayo. Adebayo explained that depression is a huge disorder that affects the tone of emotion of an individual and the person feels unhappy, sad or sorrowful for a minimum period of two weeks. “Teenagers or youths who are addicted to these psychoactive substances tend to make it an integral part of their lives and after a while, they start having the side effects or complications from the habits.” According to the expert, the initial benefits they think they derive, they now discover it’s a mirage that it is not real. A time will come when the reality dawns on them.

“At that moment, they have wasted their life on abusing these substances and are far behind their contemporaries, age mates, and acquaintances. What will happen eventually is self-blame, low selfesteem, low mood and of course depression. “the trend is most people who have been hooked on drugs chronically end up being depressed and some do not stop at that level of depression, some actually commit suicide due to the hopelessness, helplessness and pessimism associated to the degree of depression,” he said. He further said that it is common that people who have been hooked on drugs for a long time eventually end up attempting suicide or kill themselves out of depression. “Initially these young adults will tell you that those drugs keep them going, make them high, they can argue that they need cannabis for inspiration, it helps me to do my work. So they say deriving benefit from it, but it is all self-deception”. “In reality after prolonged chronic use they realise that socioeconomically, it has affected them,

physiologically it has destroyed their bodies and psychologically they cannot live any life without those substances,” Adebayo said. The expert emphasised the need to enlighten the young adults on the wrong notion they have, adding that cannabis cannot be eliminated because it is accessible and cheap. “When people have utility knowledge and are properly aware, that can give power to overcome because they will have the knowledge of the effect about how it can alter their mind, destiny and reshape their lives. Even when it is available, they will run away from it”. “We continue to enlighten, that is why we partner with the media to enlighten people, especially at the grassroots level. We do not want to wait until they are brought to the hospital after complications”. “Before they imbibe such habits, we let them realise that drinking alcohol or smoking cannabis will never ever solve their depression or emotional problems. When these young/teenagers are enlightened it will help them think twice and run away from danger or such lifestyle,” he advised.

Nigeria ranks low in health infrastructure investments OYIN AMINU, Abuja

igeria ranks low in investments in health infrastructures than most countries of the world, medical medical experts say. Babatunde Okunola, senior specialist on health, World Bank disclosed this at the ongoing fourth African Society for Laboratory Medicine Conference (ASLM), in Abuja. Okunola stated that that only four percent of Nigerians are captured in the Universal Health Coverage, saying many African countries are yet to reach an appreciable level in the provision of universal health coverage for their citizens. He noted that poor people were at the centre of inequality in health coverage globally and estimated the population to be 420 million people which accounts for about 50 percent of the world’s population. Speaking on the theme of the conference ‘Preventing and Controlling the Next Pandemic: The Role of the Laboratory’ which

seeks to look at, and proffer ways to curtail the outbreak of pandemic diseases across Africa with emphasis on accountable universal health care framework Oyewale Tomori, a professor of virology, and former vice chancellor of Redeemer’s University, emphasized the effects of health system inequalities. He called on the government to deliver healthcare infrastructures to meet Nigerians health needs with the primary intent to promote, restore or maintain health. He further said the overall success of an health system is based on quality, efficiency, acceptability and equity, while health inequity such as disparities in controllable or remediable aspects of health results in higher population mortality due to lack of access to medications. Chikwe Ihekweazu, director general of Nigeria Centre for Disease Control (NCDC) while speaking on what may lead to the next epidemic outbreak in Africa said that no as no one knows what virus will cause the next pandemic. Ihekweazu said all hands must

be on deck to allow for effective management by ensuring that critical laboratory capacity factors such as sample transportation system, reagent supply chain system, preventive and corrective maintenance Laboratory information system, and electricity are readily available in case of any eventualities. He noted that a national public health institute is needed in every country as vulnerability for one is vulnerability for all. “A public health event can go from local to global very rapidly, global health security can only be assured by local health protection and partnerships matter more than ever before,” Pandemic Disease is an epidemic that has spread over several countries or continents and usually affecting a large number of people, such as Ebola, monkey pox, etc. Rwanda and Kenya are among few Africa countries where substantial share of the population have access to medical services, while Nigeria, Ethiopia and Mali made the poorest in the rating.

ANIEFIOK UDONQUAK, Uyo mmanuel Akpabio, a University don, says unsafe drinking water, inadequate sanitation and poor hygiene are a major challenge in developing countries with dire consequences of avoidable deaths and diseases. According to the University of Uyo lecturer, of the global deaths, from the one billion people without access to treated drinking water and 2.5 billion lacking adequate sanitation, over 83 percent is concentrated in Sub Sahara Africa while infectious disease outbreaks in the region are much related to inability to get the Water, Sanitation and Hygiene (WaSH) act right. “WaSH has diverse dimension, water (quantity and quality). It is associated with the transmission of water-washed, water borne, water –based and water related disease arising from inadequate supply, poor quality, hosts to aquatic invertebrates and the spread of diseases agents respectively,’’ he said. Akpabio who is a Marie Sklodowska fellow, at the department of Geography and Environmental sciences, University of Dundee, United Kingdom stated this during a one day public engagement on a European Union project aimed at improving the capacities of policy makers, scientists and relevant stakeholders for achieving evidence-based policies in the Water, Sanitation and Hygiene (WaSH) sector held in Uyo, the Akwa Ibom State capital. “So, the sources of water we drink, the storage medium and the way we manage water are fundamental. Sanitation and hygiene carry

several elements including personal hygiene, domestic and environmental cleanliness, waste disposal, hand washing, food hygiene , menstrual hygiene, child , safe disposal of human excrement and control of waste water,’’ he stated. He lamented the impact of water, sanitation, hygiene and public health on children and woman who spend so much of their time and energy to secure water for drinking at the expense of engaging in other productive/study activities. According to him, children carry the main responsibility for collecting water with girls under 15 years of age being twice as likely to carry the responsibility as boys under15 years pointing out that in Africa, 90 percent of the work of gathering water for the household and for food preparation is done by women. “Indeed, WaSH challenge in Sub South Africa is complicated by the existence of layers of socio-cultural and religious beliefs, attitudes and values across geographies, religion and economic groups, our greatest problem is our inability to disengage WaSH matters from sociocultural behaviours and religious beliefs which in some cases are reproduced at the policy arena,” he said. He pointed out that that Nigeria’s inability to evolve practical and relevant policies for the water, hygiene and sanitation sector has hampered her effort to secure and sustain improved WaSH sector performance particularly in urban areas adding that roughly 42 percent of the urban and semi urban populations are estimated to have access to safe drinking water as compared with about 29 percent of the rural dwellers.

Phamatex pharma bags awards for quality products, manufacturing practices ANTHONIA OBOKOH

hamatex Industries Limited, a leading manufacturer of pharmaceutical products in Nigeria has been named ‘Best Pharmaceutical Company of the Year’ by the Health Writers Association of Nigeria (HEWAN). According to the leadership of the association who organised the awards in collaboration with Maximpact Communications, the award was conferred on Phamatex because of its production of quality pharmaceutical drugs and the adoption of good manufacturing practices in production. Also, the company was recognised for making its drugs easily accessible and affordable for Nigerians. The company’s ant-malarial, Lumapil, was also named ‘Best Anti-malarial of the Year.’ Receiving the awards on behalf of staff and management of Phamatex, Christopher Nebe, managing director and chief executive officer said, “on behalf of Phamatex Group which comprises of Phamatex Industries Ltd and Phamatex Nigeria Ltd, I express great delight and humbled by these awards and recognition from HEWAN.” “Phamatex is a group of companies that is into manufacturing and importation of drugs in Nigeria. We have one of the finest ranges of products in the country which includes Lumapil

Managing Director of Phamatex Industries Ltd, Prince Christopher Nebe, displaying the award.

which incidentally won HEWAN’s Anti-malarial of the Year. We are also the exclusive agent of Hovid products in Nigeria. ‘’We are known for high quality and these awards are an encouragement to continue to maintain quality standards. We are WHO and NAFDAC compliant. I thank HEWAN and commend them for these awards. We promise that the standard will be maintained,”Nebe said. Speaking on behalf of HEWAN, Chioma Obinna, who is the president of the association, said, ‘’Phamatex has contributed a lot to pharmaceutical manufacturing and distribution in Nigeria which should be recognised. We used a set of rigorous criteria to arrive at the decision to confer these prestigious awards on Phamatex and Lumapil.’’

Friday 21 December 2018

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How to prevent festive weight gain without exercising

uring the festive season, people’s waistlines tend to expand as their self-control contracts. While food and drink flow freely, restraint is in short supply, and sedentary activities abound. And, as we relax, we tend to throw caution to the wind and go back for a second helping. Festive weight gain is so commonplace that it has become a running joke; however, it has a serious side. Obesity is a growing problem in the United States, and reversing it through permanent lifestyle changes does not appear to work for the majority of people. On average, people gain 0.4–1 kilogram (0.9–2.2 pounds) each year, and up to 50 percent of this occurs over holiday periods, such as Christmas. A new approach to obesity? Research has shown that when we gain weight during the holidays, we rarely manage to lose it once the tinsel has gone from the tree. As the years go by, this type of seasonal weight gain adds up. The authors of a recent study believe that targeting this time of year might offer an innovative way to reduce the impact of obesity. By focusing attention on times when weight gain is most significant, it might be possible to slow annual weight gain, overall. The results from the so-called Winter Weight Watch Study were published earlier this month in the BMJ. Scientists from the University of Birmingham’s Institute of Applied Health Research and the School of Sport, Exercise, and Health Sciences at Loughborough University in the United Kingdom carried out the trial. Specifically, they wanted to un-

derstand whether a relatively brief and straightforward intervention could reduce weight gain over Christmas. To find out, they recruited participants just before Christmas 2016 and 2017. In total, they involved 272 people; 78 percent were female, and 78 percent were white. Researchers took the first weight measurements in November and then followed up in January. The intervention The researchers divided the participants between an intervention group and a control group. Members of the intervention group were asked to record their weight at least twice a week, although preferably more often. The authors explain why regular weigh-ins are essential: “Regular weighing and recording of weight to check progress against a target (self-monitoring) has been shown to be an effective behavioural intervention within weight management programs.” The researchers encouraged the participants in the intervention group to think about their weight and how it was changing over time. As the authors explain, the intervention “aimed to promote restraint of energy consumption.” Also, the participants were given tips about managing weight and provided with a list of festive foods along with information on how much physical activity they would need to do to burn off the calories of each food they had consumed. For example, it would take 21 minutes of running to burn off the calories found in one mince pie. The control group, on the other hand, only received a leaflet about healthy living. Culled from Medical News Today

Stack diagnostics to revolutionise Nigerian health care with over 300 diagnostic tests IFEOMA OKEKE

olecular diagnostics and personalized medicine company Stack Diagnostics (StackDx) is changing the face of healthcare in Nigeria by making available to doctors over 300 difficult-toaccess diagnostic tests. Over 20 tests are also being made available to consumers, encouraging them to take charge of their health. To simplify the entire process, they have created an online platform, Diagnose Me Africa, which uses a centralized lab approach in making these tests available. OntheDiagnoseMeplatform,various tests areavailable to consumersincluding allergy tests, food intolerance tests, infertility tests, hereditary breast and ovarian cancerpredictivetests(BRCA1and2),paternity tests, HPV DNA tests, DNA based sexual health tests and more. Doctors have access to tests in various categories like cancers, auto-immune, pregnancy and infertility, hormones, hepatitis and other viral DNA tests. Since its launch in October, DiagnoseMe has signed over 100 hospitals and 200+ specialists including hemato-oncologists, dermatologists, gynaecologists, and paediatricians on to their platform. This also aids in providing a web of shared knowledge as consumers have access to doctors, doctors and con-

HBL Team

sumers have access to tests and doctors have access to other doctors. Offering the option to have a board certified nurse draw a blood sample from the comfort of your home at no extra cost has propelled individual consumers to also patronize the platform. The advent of Stack Dx draws attention to various health issues that Nigerians tend to overlook. Giving her feedback on the platform, one of the consumers said “Allergies, as silly and farfetched as they might seem, are capable of killing anyone; old or young. However in Nigeria we do not take this seriously. As a kid you had to eat what was provided to you without complaint; no parent is checking to see if you are just not genetically compatible with the meal offered. With DiagnoseMe, I have had my children tested because I know allergies are real” Others highlighted the convenience as being a key advantage of the platform “No one likes the looks nurses give you at hospitals when you want to go for a sexual health test. You can literally feel the judgment in their eyes. Paying N10, 000 for a bulk test package is a great alternative”. As consumers underlined their benefits, doctors also concurred “Due to the current state of the health sector in Nigeria, patients are forced to travel out of the country to better diagnose their ailments and get adequate treatment; this is really expensive’

BUSINESS DAY

Executive Travel Health

The woman traveller Ade Alakija

forbidden to enter places of worship and even to touch or walk near Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos. food during their periods. To avoid such situations, discreet use of and disposal of sanitary ontrary to popular opinion, towels and tampons is advisable. world travel and exploration During prolonged journeys on have never been the sole pre- buses, trains and planes, the female rogative of man. There have been bladder can be under considerable some well known intrepid women stress due to lack of or infrequency travellers who have travelled to the of ‘comfort stops’. In an inhospitafar corners of the earth. How they ble environment if you must squat overcame the social, moral and re- over a hole in the floor or behind ligious objections to their gender is a bush, squat high to avoid bites. left to the modern woman to imagWomen are tempted not to ine but some of these objections drink‘too much’ which can cause still exist today at various levels in problems of dehydration. Drink different countries. small amounts of fluid frequently The World Health Organisation and avoid alcohol.For remote travel (WHO) estimates that 1 in 3 women like expeditions where water is (35% of women) worldwide have rationed, lack of skin cleansing, experienced either physical and/ sweating and inappropriate clothor sexual violence in their lifetime ing can encourage chaffing, open and it is estimated that the cost sores and monilial (fungal) infecof violence against women each tions. Along with sports like water year is 2 percent of global Gross sports (water skiing) the female Domestic Product (GDP). anatomy may be subject to risk of The age-old problem of physiol- foreign body penetration and inogy which includes menstruation, rush of contaminated water resultcontraception, pregnancy and ing in ascending vaginal infections. ‘personal safety’ are all too present. It may be advisable to take a Apart from all necessary basic steps supply of antibiotics and treata traveller must take before travel, a ment for fungal infections more woman must seek travel advice on, so if you have suffered similar ailmenstruation, personal hygiene, ments in the past.Fluid retention fluid retention, contraception, arises mainly during inactivity personal safety and security. and prolonged sitting during long If you are going to a country journeys. where medical facilities are poor or Postural Oedema (swelling of not easily accessible, it is advisable the feet and legs) arises, especially to have a gynaecological check-up in older women with poor venous at least 6 weeks before departure. circulation. Use of a simple diuretic If you have had a previous gyn- may help, Exercise where possible, aecological problem, you should Little walkabouts or exercise while have a clear understanding of the sitting including rotating ankles, problem and carry a written note flexing muscles in the arms and of the problem. legs etc, can reduce the risk of deep Pregnant women and breast- vein thrombosis (DVT) by improvfeeding women are in an altered ing circulation. state of health that requires pracWomen using contraceptive tical consideration prior to travel. patches, contraceptive vaginal If possible delay your trip or plan ringsoral or injectable depot concarefully. traceptives have an increased risk Emotional upset, exhaustion of DVT during travel involving long and travelling through different periods of immobility so exercise time zones can all contribute to during the journey. an upset in the menstrual pat Dress for comfort rather than tern. Irregular menstruation is a fashion. Loose fitting skirts and very common problem affecting trousers allow for waist expansion, women travellers. and comfortable shoes will prevent Excessive exercise and the the struggle to replace or force on stress of travel may cause infre- tight shoes at the end of the jourquent periods. If this is the case, ney. For the avoidance of disease it may lead to confusion over the and pregnancy, especially for those timing of oral contraception and women who plan to be sexually great anxiety of unplanned preg- active, please consult your Doctor nancy. Dysmenorrhoea (Painful for the best form of contraception menstruation) may also be aggra- for you. vated by travel. Remember HIV/Aids, is more Ask your doctor about oral con- transmissible from men to women traception which may be used to than vice versa and other sexually suppress menstruation if the need transmitted diseases (STD’s) (Zika arises. This is achieved by taking Viruses can be transmitted sexuthe pill continuously without the ally) can cause increased transmisusual seven day break. It is advis- sion of the virus. Remember, if not able to take extra packs and note your partner, then abstinence is that Biphasic and triphasic pills do best. Personal safety and security not work. are very important, especially if Personal hygiene is important. travelling alone. Though Tampons and Sanitary Leave an itinerary of your trip towels are becoming more com- with a responsible person contactmon in developing countries, they ing the person at pre arranged are still scarce luxuries in some times and dates. Be careful in places. ostentatious display of jewellery, Cultural and religious attitudes money, luggage and dress, to avoid exist in some countries towards the wrong type of attention. Be menstruation. Women may be aware of your luggage and hand

bags at all times. Do not leave them unattended or hanging on the back of chairs in restaurants, even in the so called safest places. If confronted by a potential physical attack, avoid getting into a dangerous situation and hand over your bag. Don’t try to fight. If you are forced to strike, make sure it is a crippling blow that gives you a chance to escape. You may join a women’s self defence course before travelling if you are worried of your ability to gauge dangerous situations. Generally, don’t panic or show fear or let the person confronting you get the upper hand, try to gain psychological advantage throwing him/her of balance i.e. compliance. When choosing accommodation, look for safe areas. Avoid red light districts. Request a room near the lift or stairwell not on the ground floor. Keep your money and valuables close by you at night. Inspect door locks and window fasteners and never open your room door until you have properly identified the caller. Identify your self on the phone only after the caller has identified himself or her self. If you have inspected your room and you are not happy with it request a change or move to another hotel. Listen to advice of the locals and fellow travellers. Try to develop a street sense and be alert at all times, and make sure you are not in the wrong place at the wrong time. When in a confrontational situation, a woman is rarely a physical match for a man. Try as much as possible to always be with some one you know and trust. A woman travelling alone will generate interest from locals and tourists alike. Dressing is important as codes differ from country to country. Tight and skimpy clothes are generally inappropriate in most countries outside Europe and North America. Clothing may have to be conservative, presentable, loose fitting and comfortable. Arms and legs may need to be covered especially in certain religious places and landmarks. Head scarfs may need to be worn. Try to be inconspicuous yet confident avoiding confrontational challenging situations by adopting an assertive, dismissive manner. Small tips:-Pack light, avoid flirting if you did not set out to do so, wear a wedding ring if necessary, carry a can of mace if allowed. High heels except for business meetings and official social functions can be “Wahalla”. Always carry a mobile phone with your ICE (In case of emergency) numbers on it.Sanitizers, tissue paper, small hand bag & maps may be useful. Maids do steal from hotel rooms, so don’t carry anything valuable you do not need. Always have a functional fully roaming fully loaded mobile phone. Remember the worldwide emergency number even if your phone has no credit is 112. It is free of charge andit works. Have a pleasant and safe trip. Merry Christmas and a Happy New-year. Next article will be on Travellers Diarrhoea.

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

BUSINESS DAY

FinTech News

Products Review

Technology Review

Personality Review

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Friday 21 December 2018

Company Review

Banks to turn biggest fintech bounty hunters in 2019 Stories by FRANK ELEANYA

ear of financial technology (fintech) firms dominating activities in financial services sector may not be as imminent as earlier thought but Nigerian banks appear not to be taking it lightly as they increase investment, review their digital banking strategies and unleash new technology driven products and services in the market. With slowing interest from big tech companies, experts have predicted that banks could be the biggest fintech investors, acquiring two to three fintech companies come 2019. Fintech funding has exceeded $250 million in 2018 alone making it the most of any period. Some startups that raise big ticket funding include Branch which raised $70 million in Series B; Cellulant secured $47.5 million in Series C to expand into more countries; Mines got $13 million Series A investment to hire talent, expand into Africa and beyond; Paga raised $10 million in Series B2 to expand

into Africa and other markets; Paystack raised $8 million in Series A to expand into other markets; SureRemit raised $7 million in an ICO to develop its non-cash remittance platform; and Lydia secured $6.9 million in Series A to hire skill, expand its loan book. Armed with increased investment, some of these

startups have launched ambitious products and services targeted at both existing banking customers and the millions of unbanked Nigerians. Paga for instance, recently added a feature on its mobile application which allows users send money to anyone using their mobile phone numbers for free. One

Finance, the parent company of Paylater also bagged a BB credit rating from Global Credit Rating signifying that fintech companies are going mainstream. Traditional banks have come to accept that the future of financial services is in fintech hence the urgency to shift focus from traditional

banking practices. Experts believe they (banks) are more ready for the big investments in 2019 than are big tech companies. Reed Smith and Mergermarket recently released a report that showed that over 90 per cent of financial institutions say they expect to acquire two or more fintech companies in the next 24 months. “Big tech will get into finance, but it will happen slower than people think,” Kyle Lui, principal at DCM Ventures told Bloomberg, “Financial services are both slow-moving and highly regulated. It will take time for major tech companies to understand the landscape. Their initial focus will be providing key products for their customer or user base.” Google, Opera, Ant Financial, Facebook, and telecommunication companies like MTN Group and Airtel have all been reported to be positioning for the payment space in Nigeria. MTN and Airtel are already providing mobile money services in different African countries and hoping to secure a license from the Central Bank of Nigeria to enable them provide such

services in Nigeria. However, banks appear to be making frantic efforts to consolidate their positions in order not to lose ground to these big tech companies with massive revenue support. Access Bank of Nigeria, a tier-1 recently merged with Diamond Bank with the objective to create the biggest retail banking platform in Africa. Increasingly, the banking industry is beginning to incorporate the traits and practices that were once the domain of fintech startups. Banks and credit unions have become more comfortable with a faster pace of innovation, using data and analytics more extensively and digitizing processes as opposed to simply turning paper into PDFs. “The large banks want to reclaim the payments and do not want Amazon, Apple, Google and others to displace them,” Peter Gordon, chief executive officer of consultancy Payment Relationship Management told Bloomberg. “The banks understand that the current payment system infrastructure is broken. They’ll work to create new rails that are more efficient.”

CowryWise ends year on list of top 50 global startups to watch

igeria’s automated investing platform CowryWise is the only startup from Africa to make the list of 50 World-changing startups to watch in 2019. The annual list of winning entrepreneurs was released by Kairos, an early-stage investment fund in New York that invest in top new founders who are tackling the world’s more

pressing problems. The Inc. com reports that about 2,500 earl-stage startups were referred from over 65 countries around the world and only 50 companies made the final cut. The final 50 companies get a $50,000 investment from Kairos. “We are delighted to be named one of the 50 WorldChanging Startups to Watch,” Razaq Ahmed, co-founder of CowryWise told Business-

Day, “Also, we understand the expectations on us as a team to continuously build to deliver the vision of the company which is: democratising access to financial planning, quality savings and investment product. We are leveraging our proprietary technology to scale this solution to millions of people. Everyone needs and deserves access to financial services.”

Earlier in the year, CowryWise was selected into the Y Combinator Summer 2018 Batch, a three-month programme that also brought in $120,000 in funding. Y Combinator is one of the world’s most valuable accelerators with portfolio investments in startups such as Dropbox, AirBnB, Stripe, Zenefit, Quora among others. It was described as the World’s Most Powerful Startup incu-

bator by Fast Company. “Finishing from Y Combinator Summer program and rounding up the year with this amazing news, we are well positioned for an interesting 2019,” Ahmed said, “Our team could not have dome this without the trust of our growing customers, partners and friends. We will keep building to their delight.” Since it was established

in 2017, CowryWise has processed over $1.5 million in savings for its customers. Its partnership with Meristem Trustees ensures that users’ savings are secured in riskfree instruments. The company also secured an undisclosed investment from early-stage investment platform Microtraction in the middle of 2018 which it used to support its expansion plans.

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Filmhouse, boost to cinema culture in Nigeria Stories by OBINNA EMELIKE

few years ago, some ambitious young Nigerians came up with an innovative business model that most investors in the movie business thought was impossible. They had a vision of getting Nigerians (in huge numbers) back to the cinemas by building ultramodern cinemas, adopting the most aggressive marketing and distribution strategies, as well as, getting globally acclaimed partners in the motion picture business. To achieve these, two indigenously driven companies emerged: Filmhouse Cinemas and FilmOne Distribution and Production. While Filmhouse Cinemas is a dynamic film exhibition company with a vision to be the best cinema brand in Nigeria, FilmOne is an independent distributor of filmed entertainment providing top-end film release services with emphasis in Nigeria territory. Today, the two companies have changed the narrative of cinema culture, film production, marketing and distribution in Nigeria. From one cinema in Lagos, Filmhouse now boosts of 10 cinemas across the country, and is currently working to expand to 25

cinemas including: IMAX at Circle Mall, 4D cinema in Landmark and 3D screen cinema at Osogbo. Of all the cinemas, the Filmhouse IMAX located on Dr. Muiz Banire Street, off Durosinmi Etti Drive, Lekki Phase I in Lagos, is the biggest. The Image Maximum (IMAX), a state-of-the-art giant motion picture format, is the first of its kind in West Africa. The IMAX cinema is Filmhouse’s single largest Cineplex in Nigeria, which sits on about 3000 square metres offering premium and signature screens, the Cube, Signature Lounge and the Terrace. Beyond these feats, there are more. Recently, the management gathered the media in a round-table discussion on African Cinema, the role of film in society and the economy and how Filmhouse is trying to impact the culture of cinema going in Africa, starting with Nigeria. At the round-table discussion, Kene Okwuosa, co-founder and group managing director, Filmhouse Cinemas/FilmOne Distribution and Production Limited and Moses Babatope, group executive director Filmhouse Cinemas/managing director, FilmOne Distribution and Production Limited, were detailed in the informa-

tion on the growth of Filmhouse’s business in Nigeria, the vision for 2019, and enlightenment on the difference between the two brands. The two brands, according to them, co-exist as one entity, striving to achieve the same goal. While Filmhouse is an exhibition company, FilmOne is a production and distribution company. “Filmhouse Cinemas is in the business of showcasing blockbuster films. We are what our name says: a film house. Our company’s mission is to continue to create magical experiences through content that entertains and inspires”, Ok-

Moses Babatope and Kene Okwuosa

wuosa explained. “We are driven by the need to continue discovering new and innovate ways of creating inspiring experiences, delivering worldclass service and bringing the magic of cinema to life”. On the other hand, Babatope said, “While creating Filmhouse Cinemas, we saw the need for creating original content and as such, FilmOne produces original content or serves as the licensed distributor for companies producing original content”. It is obvious that over the years, the two brands have positioned themselves as the authority in the Nigerian film industry, demonstrating capacity and showing ability in bringing together industry people to not only create incredible and awe-inspiring works but also, to reward those in the industry that are gamechangers and innovators. However, the journey has not been easy, but Filmhouse has been able to stay ahead of its competitors. The reason for the feat, according to Okwuosa is due to the various strategies that have been implemented, such as the ongoing campus tour, where the cinema experience is taken to public and private universities around the nation.

“The Filmhouse marketing team has been clever about the positioning of products and has approached our activities in a targeted way to ensure growth in all locations. Our Campus tour, for example, is a useful way of whetting the appetite for premium cinema in the locations we have yet to enter”, Okwuosa explained further. Highlighting another reason for their feats, Babatope said unlike other c i n e ma g rou p s i n t h e industry, FilmOne Distribution and Production continues to support various indigenous movies, such as The Vendor, The Ghost &The Tout, King of Boys, and Merry Men, which have all kept top spots for several weeks since their releases in the cinema. “We see growth in the indigenous titles in Niger ia, which can sometimes be a marathon or a painful investment, but we are committed to its development as the indigenous market is key to the growth of Nigerian theatrical movie industry”, Babatope said. Describing the year 2018 as a successful one despite the challenges, the two executives also unveiled the companies’ plans for 2019. “FilmOne’s vision for

2019 and onwards, includes partnering with international studios to produce Nollywood/Hollywood content, powerful enough to be critically acclaimed both at home and abroad, as well as, being commercially successful internationally and locally. One example that FilmOne uses as inspiration for this goal is the Bollywood/ Hollywood masterpiece, ‘Slumdog Millionaire’, Babatope said. Also, the Filmhouse gave insight on the upcoming Film Gala in January and how the event is very important in advancing their goals for 2019. According to them, the Gala, which is sponsored by Moët &Chandon with Filmhouse, is set to not only celebrate the icons of the film industry but also, highlight indigenous filmmakers in the country. “Indigenous filmmakers are changing contemporary cinema, producing astonishing volume of content that continues to change the film game in the country. It is thus important and necessary that we give them the platforms they deserve in order to better tell our stories and create space for us on the global stage”, Babatope said. On their partnership with Moët &Chandon, they said the wine brand is a premium brand known to not only create customized luxury experiences but also committed to supporting and providing visibility to the arts, along with worthy causes, events and outstanding contributions related to the arts. The duo urged cinema lovers to visit the closest Filmhouse cinema in their locations for a wonderful outing experience this Christmas and New Year. The cinemas are: IMAX in Lekki Phase 1, Leisure Mall in Adeniran Ogunsanya in Surulere, Dugbe, Samonda, Ibadan, Kano, Benin, Port Harcourt, Twin Waters Oniru and in Akure.

Fun Central Park’s ‘Christmas Village’ holds in Lagos December 22

he second edition of Christmas Village, a one-of-its-kind Christmas experience in Nigeria pioneered by Fun Central Park and Filli Magna, is set to hold from Saturday, December 22 to Monday, December 24 at Landmark Beach Front, Water Corporation Drive,

Victoria Island, Lagos. The much-anticipated Christmas Village is an activity-packed three-day event for people of all ages to experience the true meaning of Christmas together with family and friends. Christmas is that special time of the year to create lasting memories with

loved ones, and so this year’s Christmas Village will feature lots of fun activities to give family and friends a memorable experience. There will be food and drinks from over 40 vendors, entertainment, and shopping. And there will be games and other activities that include a Santa’s Grotto,

games arcade, beach volleyball, football tournament, quad biking, paintballing, water games and sports, sand castle area, limbo on the beach, bouncing castles, music and entertainment, VIP cabanas, toy station, and much more. “The vision for Christmas Village is for it to be-

come a tourist attraction in Lagos that runs every year for at least 10 days and grows toward a one-month experience over the years,” said Dotun Votu-Obada, founder and CEO, Fun Central Park. Fun Central Park is a brand owned by Filii Magna. The theme park was estab-

lished to create memorable experiences that exceed expectation in the Nigerian culture. Fun Central Park aims to create fun for all regardless of age, culture or class and to foster the enjoyment of memorable experiences, particularly in leisure activities and festive seasons.

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Friday 21 December 2018

Business Etiquette

Film Review – LAGOS REAL FAKE LIFE

with Janet Adetu

Linda Ochugbua

t seems like Mike Ezuruonye is keen on having better produced movies this year because considering the not so good ones of the past to having directed 2 good movies this year, I am sure he must be very proud of himself. Surprisingly, Lagos Real Fake Life wasn’t a bad movie at all. It revealed a lot about the way most people live fake lives in Lagos, always lying and pretending to be what they are not. The twist and humour of the move was good and the large array of popular and experienced actors made it even better. The only issue I had with it is that most Nigerian comedy movies as always never have a good storyline and this one was no exception to that. Mercy Aigbe who played one of the lead roles, was a jobless girl who goes from one expensive restaurant to the other seeking rich guys to trap. Unfortunately for her, one day she met her match, a young guy who heard her conversation and thought she was very wealthy and decided to chase. At the end, he found out that every single thing about her was fake, even down to her clothes which were borrowed. She had no rich father, no drivers no cars, no houses, and she even borrowed the bags and wigs when they had a date. it was a total tragedy. Annie Idibia was also being fooled by her so called boyfriend who she thought was very rich, but had no clue, he was putting up with his elder brother who was the rich one. Everything about this movie was really funny, al-

Managing your Corporate Reputation

most everyone in it lived fake lives except for the Hausa family, who were truly rich. The whole twist at the end of this movie, even made it better to behold, I kind of liked it and this was way better than Mike’s movies of 2016, take it from me when I say so. Although there were so many little faults along the line, the movie was just there, with no authentic storyline. Yes I repeated it again. Cast: Odunlade Adekola, Mercy Aigbe, Annie Macaulay-Idibia, Nonso Diobi, Ik Ogonna, Mike Ezuronye, Mc Lively, Josh 2Funny, Nedu, Efe Irele Casting: 1hr 50min Genre : Ratings: 16 To my verdict I score this

movie a 5/ 10. That’s a just there score. It was a typical Nigerian comedy movie, with loads of funny acts, but no authentic storyline or lessons to take home. I always insist that you must have a very good storyline, for me to score you well. For the Nigerian comedy lovers, if you want to have a good laugh and nothing to think about, then you can give this a try, not really recommending this. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@ businessdayonline.com and stand a chance to win a free movie ticket. Linda Ochugbua @lindaochugbua

God Calling, blockbuster movie, hits cinemas this Christmas

he trailer for the Christmas blockbuster movie, “God Calling” released by Heart In Motion (HIM) Pictures in November has gone viral on social platforms and garnered millions of views across several countries. The movie was featured on CNN’s African Voices during production, and was recently listed by CNN Africa as one of the movies to look forward to during this yuletide season. In addition to the varying accolades, the production has received attention for its gripping message and quality of special effects. For its message, it was featured at The Experience 13, the largest gospel concert in Africa. This was the first time The Experience has featured a movie in all its years of existence. T h e p ro d u c t i o n w a s

funded by executive producers such as Ibukun Awosika, Derin Adeyokunnu, Yomi Jemibewon, Patricia Jemibewon, Uzo Nwag w u , C h i j i o ke Uwaegbute, Karibi Fubara, ZeeZee Ihe-Okuneye, O lalekan O lude, Opeye m i Aw o y e m i , D o l a p o Awosika, Enyi Omeruah and Chioma ‘Chigul’ Omeruah. “God Calling” is a film that seeks to encourage people to recognise and pursue their purpose. It imaginatively shines a spotlight on modern day spirituality, as it chronicles the life of Sade who suffers a personal tragedy and is taken on a journey of selfdiscovery and faith, which transforms the lives all those around her. Written and directed by BB Sasore, creator of Before 30 and Banana Island Ghost, God Callingwill be

released nationwide on December 21, 2018 and features a stellar cast made up of Zainab Balogun, Karibi Fubara, Richard MofeDamijo, Onyeka Onwenu, Nkem Owoh, Tina Mba, Patrick Diabuah, Chidinma Okebalama (Chee), Eku Edewor, Diana Egwuatu and a host of others. According to BB Sasore, the filmmaker, the Nigerian film industry has so much potential but lacks the infrastructure and resources to compete globally. “For this project to come into fruition, I had to collaborate with like minds who believe the Nigerian film industry has great potential and needs to be increasingly supported as one of the country’s largest nonoil exports.” God Callingwill be released across all cinemas nationwide on Friday December 21, 2018.

hat does your corporate image mean to you? It is true that all human capital within an organization are the face of the organization. They represent the organization in every sphere both internally and externally. What I find many employees tend to forget is that whatever they say, do, think or act speaks volumes about the company they work for. It is not just about them but more about the company, its image and its reputation. Let me break it down a little, when you find yourself in a network gathering you are not there in our own capacity alone, you are mainly there to market for your company, or portray your company in a positive light. Even when you do not do anything, your presence and image makes a difference. It is not just how you look, that matters but what you say as well. How you communicate using verbal and non- verbal language can position you as a good and or bad ambassador of the good your company stands for. You can easily misrepresent your organization by dressing inappropriately to an important gathering, by saying what you are not authorized to say and also by broadcasting unethically on the social media space. Yes we have heard cases where especially on social media platform employees have blurted out remarks, comments, insults, opinions that have depicted disrespect & disregarded for certain corporate bodies, companies they work for or will potentially work for. I have seen cases where tweets strongly opinionated have been erroneously sent from corporate platforms instead of independent individual platform. Sadly it is not just the fact that the message came from the wrong platform. It is alarming to read the manner in which responses have been given, killing the reputation of such affected companies. I have also heard of how individuals have left distasteful remarks about companies as a whole, and about immediate bosses that they dislike. The consequences have been huge, senior executive position have been

have been tarnished based on the way we communicate. It is not just through social media that corporate reputation have been terminated, it is also seen at corporate events. I also am familiar with an executive who misbehaved at a corporate event by drinking a little too much which led to unsolicited utterances and ultimately the sack. Where do you draw the line and acknowledgement where you are to determine how you conduct yourself? I have three main strategies on how to manage your corporate image both internally and externally. Warren Buffet said “it takes 20 years to build a corporate reputation and 2 minutes to kill that reputation” I have considered three main ways you can manage your corporate reputation; in a nutshell are specifically visually, verbally and virtually. Visual Presence There are times when on

a causal Friday, a corporate customer event and for many other reasons you may be expected to dress in corporate branded attire. This is usually to boast the image of the organization by presenting the staff in a formal focused, professional manner. It is important to remember that whilst wearing your corporate branded attire you must be aware of how you behave, how you act and how you communicate. I have seen cases where employees have misrepresented their organization, by getting into a fight an altercation wearing their branded outfits leaving distaste in the mind of those around them. Essentially when you are out of office or off duty, it is safer to remove all branded clothing to avoid damaging the reputation of your organization, being professional

means…the image of yourself and your organization. Your visual presence starts from the moment you enter any space. Verbal Presence They say loose lips sinks ships. Meaning guard your tongue, think first before you utter a word. Talk is cheap they say again but what you say, where you say it makes all the difference. If you are at a networking gathering be careful not to be negative towards your company. Refrain from comparison and hide your distastes or grievances. The walls once again they say have ears, and everyone is listening, you must be smart. Avoid being a rumor monger that can dis credit you and your organization. Manage braggers or boasters and name droppers. Avoid saying what is unethical and can be considered a lie. Respect yourself, your organization and the

people you are with at all times. Virtual Presence The easiest way to damage the reputation of your organization is to wrongfully post comments on your page that misrepresent your company. You may also mistakenly send messages from the wrong platform and as mentioned earlier and not realize this until you are told. If you are aggrieved around social media entirely it can come back to bite you in the foot. Watch, when, how and to whom you tweet to, you must be diligent and use instagram and facebook posts. Monitor your outsourced personnel closely and follow your own posts. Please Share your experience and follow us on @ janetadetu

Friday 21 December 2018

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BUSINESS DAY

Adekunle Gold shuts down Lagos with 3-night live performance Jumoke Akiyode-Lawanson

nd it’s a wrap! Last week Saturday we saw an end to Adekunle Gold’s unprecedented 3-night residency at Terra kulture. From Thursday 13th to Saturday 15th December, 2108, the afro-pop singer and songwriter brought euphoria to fans back-to-back, with new energy, new special guests and new outfits each night. Gold’s connection with his audience was unwavering! Each night became a karaoke style singalong, with fans performing in tune alongside him. The third and final night was an emotional end to a fiery weekend. Gold’s performance brought a stadium feel to the theatre layout, with tears, phones calls to exes and a deep feeling of empowerment. Over the course of his residency, Gold was joined by singers Aramide,

WurLD, Dyo and Sir Dauda. Fans were also surprised with performances from singer/songwriter Falz and an extremely rare sighting of musical legend

Asa who came out singing one of Adekunle Gold’s hit songs, ‘Ire’. Needless to say that the duo were a perfect blend of pure talent on stage.In addition,

Gold shared the stage for the first time with his mentor, Olamide, who initially signed him to his record label, YBNL Nation. Although new to Nigeria,

this residency style performance proved to be a successful testament to Gold’s loyal fanbase. It is evident from his unparalleled live performance with the 79th

element band that Adekunle Gold is in his own lane. Em o t i o n s w h e re a l l over the place as soon as Adekunle Gold started to perform his popular hit single “Ire” with screams, cheering and tears from fans who chanted the lyrics along with the musical icon. Ire is a song that resonates with so many people, as the strong words of prayers used as lyrics in the song encourage goodness and favour to abide in us. Before performing ‘my life’, the amazing song, off his debut album, ‘GOLD’, the urban highlife artist acknowledged the presence of his parents who were present at Terrakulture to support their golden son. Adekunle showcased his versatility in ‘my life’ which is a perfect blend of beautiful lyrics, a great melody and groove that lingers in the ears of everyone who listens to it. With three sold out shows and recent Grammy recognition, Adekunle is truly the Golden Boy.

Hear Word returns on stage with Joke Silva, Filmhouse, Film One shine at Harvard Awards n the world of film, it Ufuoma McDermott, Elvina Ibru, others is often the actors that

igeria is about to experience one of the biggest live performances as the highly anticipate d stag e play tagged HEAR WORD returns to Lagos this De-

Joke Silva

cember on the 28th, 29th and 30th, at the MUSON Centre. The return is part of an international tour, which includes New York, California and Hamburg. The critically acclaimed

w o ma n e m p ow e r m e nt play shares generational stories highlighting political, social and cultural factors that limit the lives of women. It is staged for the empowerment of women all over the world. The play, starring Nollywood icons Joke Silva and Taiwo Ajai-Lycett and other amazing cast members that includes Elvina Ibru, Ufuoma McDermott, Omonor, Z ara UdofiaEjoh, Rita Edward, Odenike, Debbie Ohiri and Oluchi Odii will be going on an international tour in the New Year with stops in New York, California and Germany, but it is set to begin with spectacular performances in Lagos in December. After the Lagos show, the amazing cast will travel to New York, to perform six shows at the world-renowned Public Theatre in New York City from January 3-7, 2019. The team will then cross the USA to showcase at the Segerstrom Center in California from January 10-12, 2019 before heading to Thalia Theater in Hamburg, Germany. The 3-day Lagos show promises to be entertaining, fun, educating and all-round empowering.

hold the limelight. A number of Directors and producers have carved out a niche and brand for themselves. However, the rarest mentions are the executives and entrepreneurs that comprise the very lifeblood of the industry; those whose sacrifice and ingenuity have laid the very foundation upon which the infrastructure is built. Two of such names stand out in Nigeria’s bustling film industry. Kene Okwuosa, Group CEO of Filmhouse Cinemas and FilmOne Distribution, and Moses Babatope, Group Executive Director/MD FilmOne Distribution & Production. The two have added jewels to their respective crowns in the form of a prestigious award from the Harvard Business School Association of Nigeria. They were named honoured recipients of the 2018 Leadership Award for Entrepreneurship on December 8, 2018 at the Association’s Annual Black Tie Event. The award recognises individuals for significant entrepreneurial contributions in their corporate fields and/ or exceptional leadership in their respective business careers. During his acceptance speech, Babatope alluded to the fact that he and Okwuosa were “just a bunch of lads who grew up in South East London who had a dream

Babatope and Okuosa, receiving the award

to make an impact on the Nigerian film industry”. He also added that their initial inspiration was borne from “noticing our parents and family members order a lot of DVDs and VCDs of Nollywood film. We wondered what it would be transporting their experiences to a cinema environment and 10 years later that dream is now what is Filmhouse Cinemas and FilmOne Distribution and Production”. Also in his acceptance speech, Okwuosa said: “We are extremely grateful for this recognition of our modest efforts in the film industry but none of this would have been possible without the invaluable contribution of our over 512 employees spread across seven states in Nigeria. They are indeed the true super heroes in the Filmhouse and FilmOne story. We would also

like to pay homage to our co-founder Kene Mkparu whose contribution to the birth of both companies we are grateful for”. Under such exceptional leadership, neither Filmhouse nor FilmOne appear to be taking any breaks as the companies have already set a number of milestones for 2019 including but not limited to the membership of the newly formed Cinema Exhibitors Association of Nigeria, which will shortly be pioneering the integration, collation and release of box office date for the Nigeria and English West Africa territory, 3 high-tech cinema sites including the second IMAX theatre in West Africa, a 4D screen and state of the art sound and high profile international co-productions and establishing international frontiers for the export of Nollywood films.

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Friday 21 December 2018

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IMPACT INVESTING

BUSINESS DAY

In Association With

Affordable housing, public transportation as essential aspects of impact investing AMAMCHUKWU OKAFOR

he age of entrepreneurial capitalism saw a simultaneous growth in capital and inequality as well as poverty everywhere. These super-wealthy entrepreneurs, concerned as they are, are now looking for areas of high impact and need to redirect capital towards sustainable co-existence. Impact investing is a portmanteaux term that captures the genuine intention to release private capital in compliment to public resources and charities in addressing pressing global challenges. According to the Global Impact Investing Network (GIIN), Impact investing focuses on investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. The philosophy of impact investing derives from the tenets of sustainable development, adopting the three basic principles of social, environmental and economic/financial consideration. The growing impact investment market provides capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, microfinance, and affordable and accessible basic services including housing, healthcare, and education. In Nigeria, where impact investing is still in its infancy in terms of investor-participation, operation and awareness, it seems to be getting off under a somewhat narrow outlook and/or definition. For instance, beside those who still think of impact

investing as some form of modified philanthropy, the problem is mainly in its imminent circumscription to certain sectors as financial technology (FinTech), agricultural technology (AgTech), waste management, and renewable energy. There are particularly for Nigeria, broad other areas of impact such as in developing affordable housing models and mass transportation service. Affordable housing As at 2012, the level of housing deficit in Nigeria was already 17 million units. Some reports state that it would take the production of one million units per annum over a 20-year period to close this gap. However, overall annual production of housing is about 100,000 units which imply a corresponding deficit

of 900,000 units – going by the one million units per annum benchmark – which carries a potential cost of US$ 16 million. But two important things have happened in the recent past: the National Bureau of Statistics estimated the population of Nigeria to have increased to about 198 million people, of which 87 million live below the standard poverty threshold of less than 2 dollars per day. Intuitively, if population and poverty levels have increased, and there is no commiserate rise in the provision of housing units, then the number of people out of homes must have increased and the deficit in housing, worsened. In fact, evidence abounds that housing models are typically luxurious and market based; and efforts

on urban renewal continues to be towards gentrification of communities, skewed against the poor and even the regular working-class individuals. Arguably therefore, while population and poverty levels have increased since 2012, the same cannot be said for the provision of affordable housing for low-income earners. Going by the estimated annual deficits, total housing deficit would be in the corridors of 23-25 million units conservatively. The high capital-output ratio in housing investments implies that unchecked markets would not yield socially optimum outcome. Housing is a major part of household consumption and savings motives in developing countries. Therefore, improving housing conditions would have positive implications for the standard of living and it is critical for city development and urban planning. Consequently, it is very necessary therefore to explore this area of need for impact investments. At the inaugural event of the Alliance of Impact Investing in Nigeria, it was Roy Swan, Director for Mission Investments at the Ford Foundation who mentioned about the housing projects executed in the United States and progress made thus far. A 2017 report by the Heinrich Boell Stiftung in Nigeria (HBS) and Arctic Infrastructure also outlined different strategies towards achieving affordable housing in urban Lagos. The report also exemplified two international case studies in Maryland, USA and Vienna, Austria as guide for mixed housing strategies. It is important to have stakeholder engagement on housing strategies; governments would have to be more involved by creating the proper

incentives for social entrepreneurs and community developers to take up interests in social housing. Public transportation service Public transport system in Nigeria is one of the least efficient sectors in the economy. However deregulated the sector is, it is an all-comers’ affair: there are no rules of the game, no standards or minimum requirements, no quality service delivery, no consumer rights, little or no corporate players, just individuals who own mainly rickety buses – and commercial motorcyclists. The total number of road crashes reported according to the Nigerian Bureau of Statistics (NBS) in the second quarter 2018 stood at 2,608 crashes. Speed violations, burst tyres and dangerous driving accounted for 50.65 percent, 8.59 percent, and 8.40 percent of the total crashes respectively. This implies the preponderance of grossly undertrained drivers. Nonetheless, it is a huge market with potential for efficiency and expansion. According to Trading Economics (TE), transport contribution to GDP was estimated at N221.41 billion as at Q3 2018 (Q2 2018: N216.35 billion). The projection for the year end is estimated to reach N257.89 billion and N274.92 billion in 2020. The average contribution to GDP from 2010 to2017 was N193.8 billion, with an all-time high of N253.33 billion in Q4 2017. The number of commercial vehicles at 6.8 million account for 57.70 percent of the total vehicles. That said, under the right design and incentive framework, the transport sector can exceed projections. The government however need only set the rules and policy incentive for private investments to swing in. We have seen the impact of disruptive innovation such as Uber and Taxify in the taxi space. I believe that commuters, over time, would correctly revalue their preferences leaning towards service delivery against the current inefficient system – which would be competed out. Conclusion As impact investing continues to gain credence in among corporate Nigerian and investors, it is important to adapt it to the most pressing problems plaguing the society, however without any form of narrow definition about its scope. The essence is to avoid copious application of the term as found in other climes irrespective of our own peculiarities. Other vital areas for impact investing include health and education sectors where there are widespread inefficiencies due to poor infrastructure and investments.

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LegalPerspectives

With

Odunayo Oyasiji

How Tedious and extremely expensive land and property registration process in Nigeria is killing businesses

and plays a major role in businesses. Without land, businesses cannot be established. Babatunde Fashola in 2015 while signing the Bill to consolidate all land related laws in Lagos state into law stated that “In our basic economics, land is a very important asset to capital formation… you can’t start a bank, you can’t start a business, you can’t farm; you can’t even extract crude oil without identifying a particular piece of land or oil well (embedded in land). So it’s the basics of capital formation, it’s the basics of prosperity; it’s the basics of economic well-being and the basics for job”. In the World Bank’s ease of doing business 2018 report, one of the things assessed is in the area of property registration. Under this, what is being measured is “the procedures, time and cost required to transfer a property title from one domestic firm to another so that the buyer can use the property to expand its business, use it as collateral or, if necessary, sell it; assesses the quality of the land administration system; includes a gender dimension to account for any gender discriminatory practices.” Sadly, Nigeria was ranked as number 179 of 190 countries with regards to property registration in the 2018 report. It shows how

extremely difficult it is to register land or property in Nigeria. According to the report “ an entrepreneur has to go through 12 procedures over 73 days and pay 15.3% of the value of the property to transfer land, making Nigeria one of the most difficult and expensive places to register property in the world. Registering property is easiest in Kaduna, where it takes 8 procedures and 44 days at a cost of 9.5% of the property value. By contrast, in Rivers the same process takes 12

Friday 21 December 2018

procedures, 112 days and costs 25.1% of the property value.” The foregoing simply means that nearly 200 million naira is needed to register a property that is worth 2 billion naira in Kaduna while over 500 million naira is needed to register the same property in Rivers State- this represents the cheapest and most expensive scenarios in the country. The report further stated that the long waiting time is mainly because of the requirement of the consent of the state governor. This

is one of the areas where lawyers and analyst have been advocating for a change in the law. The Land Use Act 1978 vests the land in each state in the state governor. The above shows that there is need to do a lot of work in the area of title and property registration across the country. The importance of land to businesses cannot be over-emphasized. If a company acquires a property and finds it difficult to register same in its name then the chances of the company having access to loans and other facilities are reduced as such property will not be fit for use as a collateral/security. Furthermore, the cost of registering the property is extremely high. The process of registration too is long and not straightforward. Therefore, the cost of starting and running a business is significantly increased. This in itself is discouraging for an entrepreneur. The burden the whole process places on businesses is too heavy and negatively impacts the business. As earlier said, this area will remain a discouraging factor and harmful to the survival of businesses if states do not take urgent and decisive steps to address the long process, unnecessary delay and extremely expensive registration of titles process.

A delegate cannot further delegate

his is a term or principle that is commonly used in administrative and constitutional law. The latin maxim is delegatus non potest delegare. A person to whom a higher source delegates a decision making power cannot further delegate the power to someone else. An example of this situation is when a client that wants to sell or empower a lawyer to be able to do some things with regards to his or her property executes a power of attorney in the lawyers’s favour. The lawyer cannot further delegate the powers conferred on him by virtue of the power of attorney on another person. The only situation where such can be done is where it is with the express consent of the higher authority that delegated the power in the first place.

LOCUS CLASSICUS Non-disclosure or confidentiality agreement Curtis V Chemical cleaning [1951] 1 Kb 805 Court of Appeal

act: The claimant took her wedding dress to a professional drycleaner to be cleaned. The defendant requested that the claimant should sign a form. She asked the service assistant attending to her for the implications of signing the form. The assistant explained to her that the form is meant to exclude the company from any liability arising from damage to the beading and sequins on the garment. However, the terms of the form was meant to exclude the company from any form of liability whatsoever. The dress was badly stained when the claimant returned to pick it up. She then brought a claim for damages against the company. The company’s defence was that the claimant cannot claim against them as she had already signed a form excluding the company from any form of liability if anything happens to the garment. The issue that was

submitted to the court for determination was “whether the exclusion of liability clause was binding upon the claimant given that the service assistant had misrepresented its consequence”. The court held that a party is typically bound by the content of the contract he signs even where they have not read the content properly. However, a clause will not be deemed to be legally enforceable if the person that is relying on it misrepresents the implication of the clause to the other party. Therefore, the defendant was held to be liable to pay damages to the claimant as the service assistant misrepresented the implication of she was signing to her.

he best way to keep something as a secret is not to disclose it at all. However, business realities have shown that there will always be need to disclose or share information with others. The disclosure could be when discussing with potential investors, advisers and financial bodies. The best way to protect the information shared is to ensure that a non-disclosure agreement is signed before the disclosure. Conversations cannot be deemed to be automatically confidential as no fiduciary relationship exists between the parties concerned in the first place- as in the case of a doctor/client or lawyer/ client relationship. A non-disclosure agreement is a legal contract. It is also referred to as a confidential agreement. It sets out how information is shared between the parties in confidence. Parties should outline or decide on what the agreement covers. In some situations, the agreement can cover only what is written down and marked as confidential while it can also extend to presentations and normal discussions and conversations between the parties. It must be noted that a non-disclosure agreement in

most cases addresses the issue ways in which the party with whom the idea or information is shared with can use it. It is important that the agreement should be very specific in this area- the scope can be broaden later if there is need. There might be need for the person with whom the information or idea is shared to also share with other people e.g. their employees and advisers. It is of utmost importance that the disclosure should be in confidence too. This can be specified in the non-disclosure agreement i.e. terms and conditions under which the information disclosed to the other party can be disclosed to a third party. Another essential aspect is how long the agreement will

remain binding on the parties e.g. two years, 5 years etc. Some non-disclosure agreements can remain binding for life. It all depends on how sensitive the information is. Nowadays, it is common for us to sign forms which removes such liability from companies i.e. duty of non-disclosure. While setting up electronic devices or registering online companies do as us to agree to some terms e.g. that they can share our information with third parties. It is our duty to either decline or accept. Non-disclosure agreements can either be mutual or one sided. It should be mutual if both parties are disclosing information to each other while it should be one sided if only one party is disclosing.

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INSIGHT

f you live in any other part of Nigeria, this may sound incredulous. But indeed many communities in Plateau State have enjoyed access to24/7 power supply for almost 90 years, a reality made possible through hydro power from Nigeria Electricity Supply Corporation (NESCO). NESCO was established in 1929 as Nigeria’s first integrated utility company. It has a total installed capacity of 26MW of hydro plants, which powers rural communities in seven local governments in Plateau State According to a study commissioned by All On, an impact investment firm in the offgrid sector in collaboration with the Rural Electrification Agency (REA) titled, Impact Energy: Case Studies of Successful Off Grid Energy Businesses in Nigeria, undertaken by professional service firm, PwC Nigeria, off grid technologies in this case has the potential to improve the quality of life. The PwC report said that

NESCO was initially established to supply power to the tin mines in the BenuePlateau area of Nigeria. Between 1929 and 1963, NESCO constructed five hydro power plants around the Kura area to serve the Amalgamated Tin Mines of Nigeria and other tin mining companies in the area. Following the 1962 decline of the tin mining industry and subsequent loss ofits key customers, NESCO shifted focus to the communities and towns that surrounded the mines. By 1970, NESCO had electrified27 towns in the Benue-Plateau region and were the sole electricity supplier to Jos. When the Nigerian Electric Power Authority (NEPA) took over electricity supply in the city in 1978, NESCO seemed likely to lose its customer base, and worryingly, its license. However, due to its reputation for reliability and superior service, the government permitted NESCO to operate independent of NEPA. The company was authorized to supply power to designated customers and 10MW to NEPA. In August

2000, the Federal Government granted NESCO a 25year license to generate, transmit and distribute power to rural communities in Plateau, Kaduna, Nasarawa, and theFCT. Operating model NESCO runs a monthly postpaid billing system. New customers pay onetime connection fees for a capacity charge and a connection charge which depends on

proximity to NESCO’s distribution infrastructure. The connection charge covers the cost of cables, installation materials and other associated costs NESCO also supplies electricity to some communities through the Jos Electricity Distribution Company (JEDC). Consumers in these communities are billed by JEDC which in turn pays NESCO. From inception, NESCO

has run entirely debt-free. All projects and operations are funded by equity and retained earnings. As a policy, the company retains 65-70% of annual earnings to reinvest in the business. Success Factors NESCO fabricates equipment spare parts locally from imported raw materials but they are made in Nigeria. It prides in a culture of maintenance with a very

strong in-house culture of maintenance. Workshops are manned by well-trained engineers who are properly equipped to carry out repairs and maintenance; this is why equipment installed decades ago still operates efficiently. To meet a ‘year-round water availability’ goal, NESCO runs a central water management system with interconnected dams that feed the company’s power stations. The PwC study also finds NESCO management has consciously built a performance driven and peopleoriented culture. “NESCO employees have a strong sense of ownership and job satisfaction. The company also has a very low staff turnover –with some employees working for the company for as long as 50years,” the report said. NESCO has also built a long standing relationship with host communities, and with other stakeholders including the government. This has enabled them to thrive in spite of regulatory uncertainty and changes in administration, the report said.

Market

UK invests £100 million for renewable energy projects in Africa

undreds of thousands of people in sub-Saharan Africa will get access to electricity for the first time thanks to an extra £100 million of funding from the UK government announced at COP24 in Poland. The new investment triples funds for the Renewable Energy Performance Platform (REPP), to support up to 40 more renewable energy projects over the next five years. The new funding could unlock an extra £156 million of private finance into renewable energy markets in Africa by 2023. Developers of smallscale solar, wind, hydro and geothermal projects will be supported to harness each country’s natural resources, and the electricity generated is expected to provide 2.4 million people a year with new or improved access to clean energy. Power produced from new projects funded is expected to save around three million tonnes of carbon over their lifetime, compared with fossil fuel generation – the

equivalent to the emissions from burning 21,000 railway cars of coal or from 800,000 cars in a year. Energy and Clean Growth Minister Claire Perry said: “At home we’re world leaders in cutting emissions while growing our economy and abroad we’re showing our international leadership by giving countries a helping hand to shift to greener, cleaner economies. This £100 million will help communities harness

the power of their natural resources to provide hundreds of thousands of people with electricity for the first time. Building these clean, reliable sources of energy will also create thousands of quality jobs in these growing green economies.” The new investment is in addition to £48 million previously committed to the REPP. The programme is already supporting 18 renewable energy projects in a range of countries from

Tanzania to Burundi. These projects, featuring solar, wind, biomass, hydro and geothermal technologies, are expected to provide new or improved access for more than 4.5 million people over the project lifetimes, creating 8,000 jobs during development and operation. Expected results from some of the 18 projects already receiving support from REPP includes hydropower from the Nzoia River in Kenya, providing 290,000 peo-

Analyst: Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378,

ple with energy and creating 330 jobs and solar power for 70,000 people in Kilosa, Tanzania, including for 6,000 people who will have access to energy for the first time, creating 75 jobs in total. Other are mini grids in Nigeria which will provide 72 rural villages with payas-you-go clean, reliable energy, creating 2,500 jobs during construction and 430 when it’s up and running biomass plants in Ebolowa and Edea, Cameroon, providing enough clean energy for 520,000 people in a rural area creating 460 jobs solar power to provide electricity for 87,600 people and business in Burundi, creating 300 part-time jobs and 50-full times posts a hydropower plant creating enough power for more than 90,000 people for the first time in a remote part of Tanzania, creating 80 jobs in total. The funding is part of the UK’s commitment to invest £5.8 billion in international climate finance by 2020 to encourage ambitious action from other governments, the

private sector and communities in the global effort to tackle climate change. To date, UK climate finance says it has supported 47 million people cope with the effects of climate change, provided 17 million people with improved access to clean energy, installed 590MW of clean energy At COP24 the UK also announced it will give £15.6 million to help countries vulnerable to climate change have a voice in United Nations Framework Convention on Climate Change negotiations. It is also giving £771,000 to help developing countries take part in COP24, an additional £45 million to the ‘Nationally Appropriate Mitigation Actions’ (NAMA) Facility, co-founded by the UK, to help reduce emissions within an economic sector an additional £1 million for the Global Innovation Lab, which helps innovative climate finance proposals move more quickly to implementation and attract funding

Graphics: Joel Samson

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GE says smart grids can solve Nigeria, others electricity crises Stories by ISAAC ANYAOGU

eneral Electric Power has said that smart technology can play a key role i n t ra n s f o r m i ng power grids and the way energy is generated, distributed, traded, managed and stored. The US-based Corporation recently released the result of an in-depth study into Sub Saharan Africa electricity challenges and found that smart energy in SubSaharan countries, its challenges and opportunities Co-authored by the Strategic Marketing unit of GE Power in Sub-Saharan Africa and Energy & Environment Research Analysts of Frost & Sullivan, the white paper presents several challenges that affect energy access and power supply stability in Africa. “Transmission and distribution networks are seen to be the weakest links in Africa’s power systems and hence represent a huge opportunity area for improvement,” Lazarus Angbazo, CEO, GE’s Grid Solutions business, Sub Saharan Africa said in a release. Angbazo further said, “Going forward, there is a need to move beyond simply maintaining and repairing aged infrastructure. To truly advance the power sector, a holistic approach needs to be adopted; one that ensures sustainability, reliability and longevity of power supply.

“By utilizing internet of things (IoT) technology, the smarter grids of tomorrow will deliver allencompassing solutions based on the convergence of operating technology (OT) with information technology (IT) and incorporating emerging concepts such as distributed generation and energy storage,” he said. Smart grids will play a key role in the region’s transition to a sustainable energy system through facilitating smooth integration of new energy sources; promoting interoperability between all

types of equipment; enabling the growth of distributed generation and its potential incorporation into the main grid; supporting demand-side manag ement ; and providing flexibility and visibility of the entire grid. GE’s grid solutions six-step process highlighted in the whitepaper will help utilities along the digitization journey of their energy infrastructure. They include inadequate power generation but more significantly, low levels of electrification caused primarily by faulty, aged or wrong

setup of transmission and distribution infrastructure. According to GE as digital transformation of the energy sector is rapidly gaining traction on a global scale, new opportunities are emerging to help deliver efficient, affordable and reliable electricity to consumers. The whitepaper argued that smart grids can create the potential to combat SSA’s power sector challenges, and provide the opportunity for the region to develop its energy capabilities and, therefore its energy security as well

as security of supply. The digital transformation of grids allows users to take a holistic approach to achieve efficiency, flexibility, transparency and long-term sustainability. The paper explores the opportunities and challenges faced in Sub-Saharan Africa as the new future of energy and electrification emerges. The paper also looks at the role of smart technology to transform grids as they continue to reflect the changes in the way energy is generated, distributed, traded, managed and stored.

Scaling renewables is best option to meet Paris Agreement – report

he International Renewable Energy Agency (IRENA) has said that renewable energy needs to be scaled up at least six times faster for the world to meet the decarbonisation and climate mitigation goals set out in the Paris Agreement. In 2015, over 190 countries met in Paris and agreed to a climate accord to limit average global temperature rise to “well below 2°C” in the present century, compared to pre-industrial levels. IRENA’s Global Energy Transformation: A Roadmap to 2050, says that renewable energy and energy efficiency can, in combination, provide over 90% of the necessary energy-related CO2 emission reductions. The report further said that this can happen using technologies that are safe, reliable, affordable and widely available. “While different paths can mitigate climate change, renewables and energy efficiency provide the optimal pathway to deliver most

of the emission cuts needed at the necessary speed. “Actual carbon dioxide (CO2) emission trends are not yet on track. Under current and planned policies, (including Nationally Determined Contributions under the Paris Agreement), the world would exhaust its energy-related carbon budget in less than 20 years. Even then, fossil fuels such as oil, natural gas and coal would continue to dominate the global energy mix for decades to come,” says IRENA. The agency says a key concern is that the “carbon budget” to keep global warming below 2o C will run out in under 20 years but is optimistic that keeping the global temperature rise below 2 degrees Celsius (°C) is technically feasible. “It would also be more economically, socially and environmentally beneficial than the path resulting from current plans and policies, known in the report as the Reference Case. However, the global energy system must undergo a profound transformation, replacing the present system that

is largely based on fossil-fuels. IRENA says the total share of renewable energy must rise from around 18% of total final energy consumption (in 2015) to around two-thirds by 2050. Over the same period, the share of renewables in the power sector would increase from around one-quarter to 85%, mostly through growth in solar

and wind power generation. “The energy intensity of the global economy will have to fall by about two-thirds, lowering energy demand in 2050 to slightly less than 2015 levels. This is achievable, despite significant population and economic growth, by substantially improving energy efficiency, the report finds, the

agency said. IRENA says that renewables could make up two-thirds of the energy mix by 2050, with significantly improved energy intensity, the agency said but calls accelerated decarburization effort. “As low-carbon electricity becomes the main energy carrier, the share of electricity consumed in the end-use sectors (buildings, heat and transport) would need to double, from approximately 20% in 2015 to 40% in 2050,” the organization said in the report. It however, said that renewables must also expand significantly as a source for direct uses, including transport fuels and direct heat, the report adds. “The global energy transformation makes economic sense. Yet it calls for more investment in low-carbon technologies without delay. Understanding its socioeconomic footprint, meanwhile, is essential. The shift to renewables should create more energy jobs than those lost in fossil-fuel industries,” the report said.

34 BUSINESS DAY NEWS Oil price slide, empty ECA signposts tough... Continued from page 1

on prices averaging $80 a barrel.” Analysts say the ECA depletion is a shocking revelation for a country that has struggled to grow its economy beyond 3 percent and needs all the buffers it can get to maintain macroeconomic stability. “At our own estimation at Ecobank; Nigeria will record a current account deficit at $55 while the breakeven point to record a current account surplus is around $57 to $59,” Abimbola explained. “It’s a harsh reality for the economy.”

Abimbola noted that 2019 will be challenging for Nigeria financial markets and economy and most especially for the capital markets because of the rising political risk premium as a result of coming elections. “Most of the economic reforms we ought to have done in the period of favourable oil prices were not done which will make lower oil prices a bit tougher for Nigeria,” Abimbola explained. Adetola Adelu financial analyst at Fides Capital Partners said

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there is optimism oil prices might increase in 2019 but based on current trends “if the price of oil should fall again with slow growth in other sectors of the economy we might again experience what happened in 2015 which is recession.” “The so called stability in FX has always being oil induced not real growth, so we should prepare for worse times,” Adelu told BusinessDay. Controversy trailed Wednesday’s revelation by the Federation Accounts Allocation Committee (FAAC) that the excess crude revenue account savings has been

L-R: Toyin Adeniji, executive director, micro-enterprises, Bank of Industry (BoI): Abdulraman Dikko, chairman; Waheed Olagungu, executive director, small and medium enterprises; Vice President Yemi Osinbajo, and Olukayode Pitan, MD/CEO, BoI, during the visit of the Vice President to Trader Moni Command Centre at the Bank of Industry to inspect the back-end operations of the collateral free loan to petty traders across the country in Abuja, yesterday. Pic by Tunde Adeniyi

CBN pushes yields higher to maintain FX... Continued from page 1

Kenyan or South African government. This higher cost is usually a reflection of the perceived risk level of lending money to the Nigerian government compared to the other governments. The risk is seen in the spread between the yields on Nigeria’s 3-month treasury bills and that of the US which was also at a high of 11 percent, with US 3-month Treasury bill yields standing at 2.36 percent. Uncertainty over the outcome of the 2019 national elections has also raised the risk perception of the Nigerian government. This has led to a significant outflow of foreign portfolio investors, who are now selling down their holdings of both government debts and equities, increasing demand for dollars, and leading to a sharp fall in the stock market, which is down 19.27 percent since the beginning of the year. CBN has resorted to increased open market operations (OMO) and pushed up yields in a bid to incentivise fleeing investors to stay back in the country. The implication of the increase in OMO bills issuance and yields according to Johnson Chukwu, managing director/CEO, Cowry Asset Management limited, is that it reduces banks’ capacity to lend to the real economy because large level of liquidity is taken from the system. Chukwu, who spoke with BusinessDay by phone, said it limits the levels of economic activities, adding that it results to banks borrowing money from the inter-bank market. The Nigerian inter-bank rate, which is the rate at which banks borrow and lend to each other rose to 38.58 percent on Monday from 27.21

percent Friday last week. Open-Buy-Back (OBB), a money market instrument used to raise short term capital, also rose to 36.67 percent on Monday from 24.57 percent on Friday. This is as the Central Bank raised its Open Market Operations (OMO) mop ups, leaving liquidity levels negative in the first three trading sessions last week. OMO is the buying and selling of government security, which enables a central bank to control the supply of money in the banking system. A report by Afrinvest Securities shows that the CBN, last week, through OMO auctions, mopped a total of N989.5 billionn on all trading days. The short-term offerings received the least attention (0.0x undersubscribed) with N130.0 billion offered against N0.1 billion sold. In the same vein, the bid-to-cover ratio on medium- and long-term bills were also 0.3x and 0.8x respectively with N103.0 billion sold out of N310.0 billion offered on the medium-term instruments and N439.0 billion sold out of N549.1 billion offered (including special OMO sale of N39.5bn conducted on Friday). However, a total of N497.8 billion was scheduled to hit the financial system on yesterday, consisting of (Maturing T-Bills and OMO bills worth N25.4bn and N472.4bn respectively). On Monday, the CBN auctioned a total of N100 billion via OMO. The breakdown of the auction revealed that N20 billion was offered for 100 days at a stop rate of 11.75 percent. The offer which matures on March 28, 2019 was undersubscribed by N6.00 billion. Also, the N30 billion which was offered for 205 days tenor at a stop

rate of 13.5 percent, was undersubscribed by N1.06 billion. The CBN offered N50 billion for 310 days at a stop rate of 15 percent and it was undersubscribed by N17.54 billion. Ibrahim Tajudeen, Head of Research, Chapel Hill Denham, stated three reasons why the OMO auction is done on a regular basis. He said banks are not really bidding or complying enough with the auctions by the CBN. The banks are not bidding to buy much or they are buying in little amounts and they are also asking for higher interest rates but the CBN does not want to give higher interest rates. Also, Tajudeen explained that the CBN is trying to reduce naira liquidity so that people will not speculate on the dollar with their naira. “When you have too much naira, you will be tempted to buy dollars. They are trying to avert speculative demand for dollar through the OMO auctions. And they also believe that the election period which we are in will lead to increased spending. When there is increased spending it will lead to increased inflation,” Tajudeen said. Godwin Emefiele, governor of the CBN, said early this month at the bankers’ dinner held in Lagos that monetary policy stance will remain judicious, research driven, adequate and supportive of the real economy subject to underlying fundamentals. He said the current tight stance is expected to continue in the nearterm, especially in view of rising inflation expectations and exchange rate market pressures. “Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation”.

depleted to only $631 million within three weeks; although withdrawal from the account is subject to the approval of the three tiers of government and the Executive Council of the Federation (FEC). Excess Crude Account is a special account established to warehouse excess revenues from the prevailing crude oil price at the international market. Income generated above the approved crude oil benchmark price in the annual budget is saved in the account. Nigeria’s president Muhammadu Buhari presented the draft 2019 appropriation before parliament Wednesday and its details are now being digested. The budget is based on assumptions of $60 per barrel of oil benchmark at 2.3 million barrels per day, a GDP growth rate of 3.01 percent and inflation rate of 9.98 percent while exchange rate was based on N305/$. The budget is less than a third that of peer country South Africa and just over half that of Angola, both with smaller populations relative to Nigeria who recorded a GDP growth rate of 1.81 in Q3 2018 while Ghana recorded a GDP growth rate of 7.4 percent in the same period. Bloomberg reported Thursday that as oil revenues fall, OPEC governments could soon face social unrest due to slower economic growth and higher unemployment. They’ll also have far less money to invest in the petroleum sector to keep output up. Meanwhile the opposition People’s Democratic Party (PDP) has reacted to the Federal Government’s withdrawal of $1.68 billion from the Excess Crude Account (ECA) in one month, leaving a balance of $631 million. The main opposition party ac-

Friday 21 December 2018

cused the ruling All Progressives Congress (APC) and President Muhammadu Buhari of fraud. In a statement on Thursday signed by PDP National Publicity Secretary, Kola Ologbondiyan, the party said the development shows that President Buhari is presiding “over a corrupt government that is bent on draining our treasury and foisting more suffering on our people”. The party also accused President Buhari of superintending over the surreptitious withdrawals from the ECA, without recourse to the statutory appropriation of the National Assembly, adding that “funds are being frittered from the account to private purses of the cabal at his Presidency and corrupt All Progressives Congress (APC) leaders.” The statement reads: “The PDP wonders why the President is presiding over such impunity, if he is not drawing personal benefits from the obvious racket for which our ECA has been turned into APC’s Automated Teller Machine (ATM). “Apparently realizing that they have been rejected by Nigerians ahead of the 2019 general elections, the APC and the Buhari Presidency now want to drain our treasury and as usual, blame it on past administration. “Nigerians can recall that the PDP, which established the ECA as a buffer account to cushion the effect of any economic down turn, left $2.07 billion in the account only for the Buhari administration to drain it down to $631 million. “The PDP condemns this manifest impunity by the Buhari Presidency and demands that no more withdrawals must be made from the account by this corrupt and inept administration.”

FMDQ admits N13.50bn Union Bank bonds... Continued from page 2

a competitive investment option for fund managers looking for sustainable returns over and above comparable treasury benchmarks. We are excited to continue a fruitful partnership with FMDQ and Union Bank PLC”. Bola Onadele. Koko, Managing Director/CEO of FMDQ, in his closing remarks, congratulated the issuer for successfully raising the Bonds, and commended the sponsor to the issue and Registration Member (Listings) of FMDQ, Stanbic IBTC

Capital, for its concerted efforts towards ensuring the success of the issuance. Onadele stated that the Nigerian DCM has continued to make essential strides towards its development and the listing of the Union Bank Bonds on FMDQ marks another milestone in the success of the DCM. He further reiterated that FMDQ, through consistent collaboration with its stakeholders, shall continue to further deepen and effectively position the Nigerian DCM for growth, in support of the realisation of a globally competitive and vibrant economy.

Carlyle makes surprise $40m investment in... Continued from page 2

to finance its Africa-wide expansion projects, but could not settled on schedule due to the economic recession in 2016 that resulted in the devaluation of naira, high airfare, exit of many airlines among other challenges that ran many online travel agencies out of business in 2016/2017. The inability to repay the loans also warranted Zenith Bank to appoint a Chief Financial Officer (CFO) for Wakanow, part of its plans to safeguard its finances. As well, part of loans was used in the acquisition Oya.com, a local bus, cargo and car hire service company, opening of over 100 travel centers across Nigeria, Africa and offices in Dubai, UK and the US.

“With the refusal of the banks to extend further facilities to the travel agency, the only option available to Wakanow is to look for more investors in order to raise funds to offset the loans and stay in business,” Alimi Olakunle, an online travel agent, said. It would be recalled that this time last year, International Air Transport Association (IATA), its trading partner, threatened to cut off Wakanow from its services due to the failure of the online travel agency to meet its payment obligations to IATA under the Billing and Settlement Plan (BSP) used by the industry to settle ticket sales and remittances. However, as at the time of the report, Wakanow had not responded to text messages and calls on further information on the new investor.

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35 NEWS

BUSINESS DAY

89% of Nigerians believe job creation has not improved in 2018 – NOIPolls Apapa: NPA reacts to BusinessDay Editorial, BUNMI BAILEY

bout 89 percent of Nigerians believes that job creation has not improved in 2018, according to a recent released public opinion survey about 2018 in review by NOIPolls. The report, conducted by NOI Limited, Nigeria’s leading public opinion polling and research organisation, was carried out in the week of December 10, 2018. And it involved telephone interviews of a random nationwide sample. 1,000 randomly selected phone-owning Nigerians aged 18 years and above, representing the six geopolitical zones in the country, were interviewed. The report stated, “Respondents’ opinions were assessed on how Nigeria has fared in 2018 on eight

specific areas and the poll revealed that 89 percent of Nigerians reported that job creation has not improved in the year. “This is followed by respondents (65%) who indicated that the country has not fared well in term of infrastructural development, which is key to industrial and economic growth of any nation. “On the economy, 63 percent of respondents stated that the nation has not fared well in this area despite the marginal increase in the county’s Gross Domestic Product (GDP) in first quarter of 2018 as reported by the National Bureau of Statistics. Other areas Nigerians believed have not improved in 2018 were electricity supply (52%), security (51%) and Healthcare (51%). On the other hand, 69 percent of Nigerians admitted that the country has fared well in the

area of agriculture in 2018,” the report further stated The 89 percent of Nigerians that believe that job creation has not improved corresponds with the latest National Bureau of Statistics (NBS) labour report, which shows that unemployment rates rose to 23.1 percent in the third quarter of 2018 from 18.8 percent in the same corresponding period of 2017. Johnson Chukwu, CEO, Cowry Asset Management Limited, said, “Our misery index has increased further so Nigerians are actually going very difficult economic times. No wonder we have seen a lot of social issues in country like suicides, increased level of crimes in the regions is not associated to crimes. This should be a wakeup call for the government.” NOIPolls conducted the

poll to gauge the perceptions of Nigerians on how the nation has fared in 2018, focusing on some key socioeconomic areas. NOI advises that the government and concerned stakeholders must synergise to address these critical challenges as another year approaches. “For instance, fixing these infrastructural challenges will attract more foreign direct investments, create millions of jobs, help to create new markets, foster competition, spur innovation, lower prices, raise productivity and in turn leads to increase in standard of living. Due to the high cost of infrastructural development, it is advisable that a public private partnership should be adopted to make needed funds available to tackle these challenges,” the report advised

L-R: Hakeem Ogunniran, MD/ CEO, Eximia Realty Company Limited; Omole Imosemi, founder, BrandLee, and Caleb Usoh, country manager, OCP Africa, at the Effective Negotiation Skills Bookbased Workshop organised by BrandLee Learning & Development Academy in Lagos.

Yellow Fever: Obaseki gets vaccinated, leads campaign against disease

Phillips Consulting releases 2019 calendar for digital tech learning

do State governor, Godwin Obaseki, has charged residents of the state, aged between nine months and 59 years, to ensure they take the yellow fever vaccine, to inoculate themselves against the disease. The state government has also taken delivery of three million doses of vaccine from the Federal Ministry of Health in response to the yellow fever outbreak in the state. The governor gave the charge when he led members of the State Executive Council (EXCO) on a vaccination campaign in Benin City, at the end of the weekly EXCO meeting at the Government House, in Benin City. Addressing journalists after taking a shot of the vaccine, he said the yellow fever vaccination campaign was ongoing across

MICHEAL ANI

the 18 local government areas of the state. He urged residents in the state to ensure that they were vaccinated against the ailment, and commended the Federal Ministry of Health for the prompt response to the disease outbreak in the state. He said the state government had provided logistics to get the vaccine to every part of the state, especially where outbreak of the disease was recorded. “We had the unfortunate incident of yellow fever outbreak in some parts of the state a couple of weeks ago. It is a deadly aliment. Within a short period, we lost a number of persons. It is highly preventable; all you need is to be vaccinated against the virus,” he said. “I just got vaccinated; it doesn’t hurt. Once you take a dose, you are vaccinated for life,” he assured.

hillips Consulting, an indigenous management and consulting firm, has announced the launch of its 2019 Calendar for Digital Technology Learning and Classroom Training that will help empower clients to perform at their highest level. The calendar highlights the best, up-to-date and most relevant training courses essential to all professionals and companies to meet expected goals and outcomes, the foremost consulting firm said. “The 2019 calendar gives a full view of our wide range of learning interventions which includes: Instructor Led Facilitation courses, held at our training facilities with programmes covering Leadership and Management, Workforce Management, Infotech and Bespoke

Learning Courses,” head of Classroom Learning, Nwaji Jibunoh explained. “Our specialised solutions which include Knowledge Management, Strategic and Managerial Competency Development Solutions guide those who seek to build strong, sustainable establishments through the documentation and sharing of organisational intelligence.” In addition, Phillips Consulting also has Online Learning Solutions that are either customized digital courses or curated off-theshelf content, designed to help organizations embed learning into the workflow. “With the wave of Digital Disruptions taking place in the global market place; there is an urgent need to rapidly upskill all employees on the various frameworks and technologies being adopted.

clarifies on efforts in addressing gridlock AMAKA ANAGOR-EWUZIE

n reaction to BusinessDay Editorial of Monday, December 3, 2018, management of the Nigerian Ports Authority (NPA) has made clarifications on some of the efforts made by the authority in ameliorating the plight of commuters and port users as a result of the Apapa gridlock. A rejoinder signed by Hadiza Bala Usman, managing director of NPA, and sent to BusinessDay on Wednesday, stated that the traffic situation in Apapa was an age-long problem that had worsened and defied solutions over the past two decades as a result of lack of foresight in deploying intermodal transportation system (rail, inland waters and pipelines) for cargo evacuation. Usman said the current management of the Authority had taken the bull by the horns by spearheading the reconstruction of the dilapidated Wharf Road in conjunction with Dangote Group and Flour Mills plc. “Although the repair of roads is not the statutory responsibility of the Authority, we committed the sum of N1.8 billion to this road which has now been completed and put into use. “Due to the importance of the Oshodi/ Apapa/Creek Road to effective management of traffic in Apapa, the NPA has since 2016 mobilised support for the rehabilitation of this road. We have even written to the Federal Ministry of Power, Works and Housing requesting that the road be handed over to the NPA. Gratefully, the contract for the reconstruction of this road has now been awarded. “The Authority has a standing committee which worked with terminal operators, millers and other stakeholders to fashion out ways of fixing the Tin-Can axis route with enduring palliatives works and provide a bleeder route,” Usman said. On inland waters, she said a number of companies had also been licensed to operate barges for the evacuation of cargo through the inland waterways, aimed at ensuring that there was less pressure on the roads. According to Usman,

the NPA is working towards the maximum utilisation of other ports to facilitate the reconstruction of roads connecting the Eastern Ports with the North Central, North East and South East. She further made it clear that NPA cannot dictate destination as cargo owners have the right to a destination of choice. “As a result, a portion of the cargoes that come into the Lagos Ports are meant for the industrial clusters within Lagos, Oyo, Ogun and sometimes Kwara State. There is no amount of investments in other ports that would encourage cargo owners whose final destination is within the Lagos axis to patronise the Eastern Ports. “In April, the Federal Executive Council approved the proposal for the dredging of WarriEscravos seaport to 9metres at the cost of N13 billion. This would ensure safe navigation of vessels into the Warri Ports and ensure that vessels that require deeper draughts can arrive and depart the port. “While the proposal for the dredging of Calabar Ports is on the table, the NPA is encouraging shipping companies to deploy flat bottom vessels to Calabar. The Onne Ports is functioning at optimal capacity and remains a first choose for many operators in the oil and gas sector, while Rivers Port is also functional,” she said. She said insecurity in the Niger Delta region has diminished the confidence of cargo owners and affected chances that cargoes would be directed to some of the locations in the Eastern Ports, such that vessels calling into these ports take war insurance due to insecurity. The NPA is procuring an electronic call up system along with other stakeholders to ensure that trucks without any business around the port area do not trawl and compound the traffic in Apapa, she said. “The NPA has issued firm directives to shipping companies and terminal operators on the importance of deploying holding bays for empty containers in Apapa and appropriate sanctions has been meted out when any of these operators was found wanting,” she said.

BUSINESS DAY

Friday 21 December 2018

INTERVIEW ‘Improving Nigeria’s health sector requires a multi-pronged ecosystem approach’ Tofunmi Omiye is a 6th-year medical student at the University of Ibadan, Nigeria. He currently serves as the Organizing Chairperson of the 2018 Federation of Africa Medical Students’ Associations General Assembly (FAMSA GA 2018). He previously served as the Director of Media External of FAMSA, where he was responsible for a significant positive overhaul of the association, closely aligning the association with her goal of improving the health of the African people. One of his major projects at the association was the Antibiotics awareness campaign which was recognized by the United Nations and Science Museum, London. In this interview with Ifeoma Okeke, he speaks on the objective of FAMSA GA, the challenges with Nigeria’s health care sector and best ways to address them. Can you tell us some of your other achievements both in health care and other areas? am the Team-Leader of Ace five initiative, a charity organization focused on orphaned and less-privileged children which coordinates an annual Inter-Orphanage Spelling bee competition, orphanage outreaches and feeding of cadgers. I was a selected participant at the Harvard-MIT ImpactLabs summer workshop, where I led my team to design a prototype novel medical wearable device. As a medical student, I coordinate a team of enthusiastic young medical researchers and I am a winner of the prestigious GSKEmeritus Professor Akinkugbe Inter-Medical School Quiz Competition. I am passionate about healthcare and education in Africa and constantly looking for ways in which media and technology can help propel the continent unto the path of sustainable development. I have also participated in several international conferences including: Bank of America Merrill Lynch Corporate Presentation, Access Conference and World Healthcare Students’ Symposium. Tell us about the Federation of African Medical Student Association General Assembly? FAMSA GA stands for Federation of African Medical Students’ Associations General Assembly. It is serves as the annual meeting of the Federation of African Medical Students’ Associations, a project oriented medical student body recognized by the African Union and WHO as the official international forum of African Medical Students. This year, FAMSA GA 2018 coincided with the 50thanniversary of the Federation and so we planned a high-impact conference poised to revolutionize healthcare in Africa. It brought together youth, healthcare professionals and high-profile speakers at the University of Ibadan Nigeria to discuss the theme: Repositioning Healthcare in Africa for Sustainable Development. What was the purpose of organizing this conference? FAMSA GA was designed to be robust and ground-breaking

to provide an enriching and stimulating experience for participants as well as proffer sustainable solutions to healthcare challenges in Africa. It featured plenary and parallel sessions as well as with the aim of inspiring participants to take charge and play active roles in structuring the future of healthcare in Africa for sustainable development. This year’s FAMSA GA also promoted Pan-Africanism and advocacy amongst youths. How do you intend to Reposition Healthcare in Africa for sustainable development? A first definite step towards this mission of repositioning healthcare in Africa for sustainable development was the FAMSA GA 2018. The conference was designed to stimulate conference attendees to think differently about the issues of Africa, healthcare and Sustainability and their roles in driving the Sustainable Development Goals. A novel reso-hackathon challenge pioneered in this event will result into draft policy papers that will directly address the case of repositioning healthcare in Africa. Also, the post-conference reports will be distributed far and wide to African governments, Policy makers, Ministries of Health amongst others. These reports will serve as recommendations that will help inform decisions concerning healthcare in Africa and the world. It will also be made freely available in the public domain for maximal impact. The conference was targeted towards medical students and young doctors. Why do you believe they are the right demographic to have this conversation? Africa has the largest youth population of any continent in the world. Youths (medical students and young doctors) have enormous power to catalyze change if directed towards the right causes. The ever growing youth population, the energy they possess and the current climes coupled together makes me to strongly believe that this conversation needs to start happening amongst this powerful demographic.

Tofunmi Omiye

How supportive was the federal government and the relevant authorities in putting this conference together? The support of the relevant authorities ranges from minimal to no support. The Federal government and other relevant authorities in Nigeria are far harder to reach than international institutions based outside the country. The bureaucracy in the relevant authorities is overwhelming. Virtually all the funding and institutional support for this strategic event came from organizations primarily based outside the country. For institutions based in Nigeria, there are inadequate channels to engage them, and in instances where they were engaged for this event, there was relative lack of interest. How much impact would you say this conference had? The impact of this event was massive. I direct impact in inspiring youths, forming strategic partnerships, promoting Pan-Africanism, and increasing knowledge of Sustainable Development Goals amongst others. Being a medical student in Nigeria, what would you say is the challenge with the Nigerian

health sector and what do you think can be done to improve it? In my experience as a Nigerian medical student, the major challenge to growth of the Nigerian health sector is the lack of willpower on the aspects of both citizens and relevant authorities. This lack of willpower goes ahead to affect impactful funding and effective policies which are the backbones on which strong healthcare systems are created. There is no definite quest amongst leaders and workers of healthcare institutions to make things better. This single act is one of the key challenges in the Nigerian healthcare sector. Improving the sector requires a multi-pronged ecosystem approach that involves engaging everyone, targeted impactful funding, novel effective policies, multi-level advocacy, infrastructural and health workers’ investment. In recent times, statistics have shown that Nigerian doctors have migrated to other countries and the number is steadily increasing. Following the current rate of development in the Nigerian health sector, do you think doctors will be

more inclined to remain in the country? The sad truth is No. My experience during my sub-internship at Northwestern in Chicago made me deeply reflect on the issues of brain drain and its accompanying problems. I discovered that doctors’ migration is an issue that transcends infrastructure and is intertwined with welfare, healthcare workers’ interaction, job satisfaction amongst others. Currently, Nigeria still remains far behind in all the metrics one will use to evaluate job satisfaction and happiness as a doctor. As long as this continues, doctors will be inclined to leave the shores of this country. Compared to other countries how exposed are our upcoming medical doctors with reference to medical training? This is a tough one as I have only experienced the US system. Comparing both systems especially in the aspect of medical training, the truth is, the exposure here in Nigeria is minimal. The system does not provide enough in terms of innovative thinking, Medical research – the sort of tools needed to improve the health indices of a country. You ask yourself, why is this working in the US and not here. The answer is simple. There is a constant strive to improve on the present in anticipation for a better future – and they ingrain these ideologies in the training of their doctors; empowering them with conducive environments and infrastructures to champion cutting-edge researches and ground breaking discoveries geared towards improving global health. So no, compared to other countriesthe exposure of the Nigerian medical doctor is low. If you were giving the opportunity to effect a change in the Nigerian health sector today, what would be your first step? My first step will be addressing the Nigerian health sector with an ecosystem approach which will be multi-pronged and involve: Multi-level advocacy amongst citizens and government leaders, Impactful Funding, Infrastructure and Human capital development.

Friday 21 December 2018

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BUSINESS DAY

Hotels Where to make the most of your hotel stay this festive season

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

OBINNA EMELIKE

hile Naira has been stable over some time now, the reality is that the value has really gone down. At N360 or more to the US Dollar overseas trips for Christmas or New Year holiday are very expensive. The sad development is also gainful because it also points to the need to look inwards and patronize domestic destinations, which abound in the country. Leave the sentiments that local offerings are poor, facilities bad, service culture lacking and try a destination this festive period. As long as your expectations are moderate, you will get the most experience while being hosted in some of these destinations. Below are some of the resorts and hotels to make the most of your lodging experience this festive period. Smokin Hills Golf Resort, an emerging destination for golf enthusiasts and nature lovers in Ilara Mokin, Ondo State is a nice place to visit this festive period. On a visit, guests discover beyond the reasons why the resort is ‘smoking’ with leisure. Set on 140 acres of virgin land carved out of surrounding jungle and rolling hills that emit smoke early in the morning and also at dawn, the resort offers various accommodation options, amid other leisure facilities that boost family outing and augment the premium golf offering. As well, the Fifth Chukker in the outskirt of Kaduna awaits you visit this festive season. It is an upscale lifestyle oasis of family fun, recreation, polo and culture that spread across 2000 hectares of land. On offer in the resort are 100 rooms, comprising of 3-bedroom

Top BusinessDay Partner Hotels

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

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos. Tel: 01 277 3560

duplexes, 2- bedroom villas and 1- bedroom lodges. The locally themed rooms amid modern leisure facilities are among the highlights of the resort. Of course, Ibom Hotel and Golf Resort, which was awarded Best Resort in Nigeria 2017 and has the Best Golf course in West-Africa, is one of few destinations that have consistently been operating at a truly 5-star level. Aside the word-class golf-course, its whole spacious lay-out in a beautiful undisturbed natural environment, swimming pool, gym, restaurants and bars will provide an unforgettable experience for those who live in densely populated cities like Lagos or Port Harcourt. Families with children can enjoy around the poolside, discover the nature of the golf course by foot or on bike, relax at the riverside Marina restaurant among other attractions. But if you are a spa fan, Clear Essence California Spa and Wellness Resort is one place to visit this festive season. From its outside on #13 Alexander Street, Ikoyi, the foremost spa and accommodation outfit does not tell its true worth. Inside is a different story as garden full of rare flowers and welltrimmed grass lawn ooze out freshness. Aside the accommoda-

tion options, another prime offering is the spa, managed by trained Balinese therapists. The therapists use their talents to send you into a journey away from reality, and that may just be a perfect gift for your loved one this festive season. The spa offers 10 treatment rooms - a dipping pool, scented steam showers, sauna, a fitness centre with state-of-the-art gym equipment and certified personnel to ensure personalised spa experience. You can also consider a visit to Nike Lake Resort in Enugu. The resort is one place that is evergreen because of the pristine environment and therapeutic impact of the natural lake resort. A few metres to the resort, you will behold with great awe the natural lake stretching over three kilometres with its incredible and rare aquatic population. On offer are 210 wellappointed and tastefully furnished rooms and suites, suitable for all taste and budgets. You can enjoy a ride on the lake with trained boat riders, or if you are more daring, you can join the local fishermen. Pictures taken afterwards will tell the story of how much you enjoyed the Christmas escape. If you are considering spending your festive holiday in the north eastern part of the country, then HBC

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

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja. Tel: +234 9 4603900, +234 805 7522500

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

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

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

Protea Hotel (GRA Ikeja) GRA Ikeja

Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ Island

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

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Friday 21 December 2018

BUSINESS SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

LAPO invests N24.2bn to boost rural agriculture in 10 years IDRIS UMAR MOMOH, Benin

he management of Lift Above Poverty Organization (LAPO) says its financial subsidiary LAPO Agricultural and Rural Development Initiative (LARDI) has since 2007 invested some N24.2 billion to boost agricultural activities in rural communities

across the country. Osarenren Emokpae, chairman, board of directors of the organization made the disclosure at its annual general meeting (AGM) for the financial year ended 31 December, 2017. Emokpae said the investmente were to support livestock (poultry, fishery, piggery), arable crops (cassava, grains, tubers, vegetables) and tree crops like oil palm and cocoa

production as loans. He said, in the 2017 financial year, the sum of N5.621 billion was disbursed to empower 64,899 rural famers in 120 of its branches across 19 states of the country against the N3.409 billion disbursed to 32,522 farmers in the 2016 financial year. He noted that the establishment provided rural farmers access to affordable agricultural credit facilities and extension services to enable

them become self- sufficient in food production and embrace commercial agriculture. The board chairman listed the products and services to include loans and savings. He also put the repayment rate of the loans by the beneficiaries at N4.958 billion against that of the 2016, which was N3.409 billion. He added that in the period under review the subsidiary facilitated

farmers’ access to vital farming inputs, provided employment for the youths, contribution to improvement in the nutritional status of rural households among others. Emokpae, further noted that with the organization’s support, beneficiaries now have more resources to invest in their agricultural activities with huge benefits to their households and the country at large.

FINCA Mfb’s customer experience delivers Aba landlords launch value to clients, communities in Imo N500m event centre, EFEGADIRIM MADU, Port Harcourt

INCA Microfinance Bank Nigeria, a part of FINCA Impact Finance’s global network, last week under-

crofinance institution “empowers, engages and energizes its employees to deliver exceptional customer experience.” He said, “besides being in the business of offering innovative and

the CX Week to implement advocacy programs and initiatives to recognize and better serve both its internal and external clients. In 2018, the global theme for the CX Week is: “Excellence Happens

shopping mall UDOKA AGWU, Umuahia

FINCA staff clearing market took a weeklong ‘customer experience,’ known as CX Week, a social responsibility programme at some areas in the eastern heartland state capital. To participate in the CX Week, FINCA Microfinance Bank donated funds to the Timber & Allied Industrial Market Association to fund road maintenance, which will enable the entrepreneurs, business owners and buyers easy access to the market to carry out their business activity. Additionally, the bank carried out a sanitation exercise at the popular World Bank Market Owerri, to improve conditions for the traders and shoppers in the urban area market. The market is 95 per cent a grocery market, but often messed up with rotten and spoiled fruits and vegetables, hence the need for its cleanliness to boost shopper confidence and keep the traders healthy. Andre Lalumière, chief executive officer of FINCA said the mi-

impactful financial services, FINCA is in the business of building long standing relationships and creating brighter futures for our customers, employees and in the communities where we live and work.” The chief finance officer of FINCA MfB together with the management team of Dennis Opara, Azeez Ibraheem, and Anthony Nwosu and a host of all heads of department and staff from all the branches of FINCA in Imo State carried out the clean-up exercise at the market. The market had swamps in some areas which makes it to produce regular putrid smell. The FINCA team made sure the swamps were evacuated and made accessible by the traders to display their wares. Every October, FINCA Microfinance Bank participates in CX Week, a global initiative to recognize the importance of customer experience (CX) to the success of customercentric organizations. FINCA uses

Here.” The Mfb CEO, Lalumière said the theme aligns closely with the work of FINCA, which is to improve living conditions in the communities where the bank operates. He said the World Bank Market, Owerri, was selected because it is home to many FINCA MfB clients who he said, require clean and sanitary conditions to effectively operate their businesses. He said the bank decided to clean the market because of the close relationship it has with traders and the market’s executives. After the exercise, chairman of the Market, Obed thanked FINCA MfB for selecting the market for the exercise. Launched in 2014, FINCA Microfinance Bank Nigeria is part of FINCA Impact Finance’s global network of 20 banks and microfinance institutions that profitably and responsibly provides impactful financial services to enable low-income individuals and communities to invest in their futures.

ba Landlords Protection and Development Association (ALPADA) has launched N500million Event centre and shopping mall in Aba, the commercial nerve centre of the South-East. The group said they were doing so in a bid to assist the Abia state government in developing Aba, the commercial capital, but which sorely lacks basic infrastructure. Governor Okezie Ikpeazu of Abia state during the 4th anniversary of ALPADA and lauching of the N500 million projects, hailed the wisdom of the leadership and members of the group for their vision towards the transformation of Aba by working in synergy with his administration to restore the lost glory of the city. The Association also used the forum to bestow an award of Ukwuoma Kporo Enyimba city of the 21st Century on Ikpeazu. The Governor who expressed delight for the honour done him by the landlords, announced a personal cash donation to the Landlords to support the noble projects they initiated and pledged his government’s continued support for them. Alphonsus A. Udeigbo, the President General of the Association earlier in his address, described Ikpeazu

as an agent of good change, stating that the Association had resolved to support Ikpeazu’s second tenure bid as the Governor of the state. Udeigbo noted that the Landlords had recognized the infrastructural development in Abia, with special reference to Aba. He said that this development prompted the Landlords to honour Ikpeazu with the award of Ukwuoma Kporo Enyimba city of the 21st Century, pointing out that the development of any city lies on Government and Landlords who are major investors. They called on the Government to carry them along in the business of development as they had partnered well, adding that their businesses had suffered setbacks, while some buildings had been submerged, “but the Governor is trying to change the narrative.” The Association appealed to Government to consider a waiver in tenement rents for some Landlords whose buildings had been badly affected in Port Harcourt Road, since the road was yet to be completed. He stressed that it would be too hard for them to pay the current rate since some their tenants had parked out due to the situation of the area. The Association appealed to the state government to support them in completing these laudable projects.

BUSINESS DAY

Friday 21 December 2018

Harvard Business Review

ManagementDigest

When managers break down under pressure, so do their teams ing officer, who misread a contract and caused the mistake. But before you allow your emotions to take over, stop and ask yourself, “What is it I really want in the long term, for myself, for the contracting officer and for the team?” The answer should guide your actions.

David Maxfield CONNECTING As a leader, how you respond under pressure makes an indelible impression on the people around you Our latest research shows that your temperament in those moments has a tremendous impact on your team’s performance. When the hammer comes down, are you calm, collected, candid, curious, direct and willing to listen? Or would your direct reports describe you as upset, angry, closed-minded, rejecting or even devious? We asked more than 1,300 people in an online survey to describe their leader’s style under stress and the impact of that behavior on their work. We found that a large majority of managers and leaders buckle under pressure. Respondents also said that when their leader clams up or blows up under pressure, their team members have lower morale; are more likely to miss deadlines, budgets and quality standards; and act in ways that drive customers away. When leaders do not know how to cope with stress, their teams can be badly affected. Team members are more likely to consider leav-

— CHALLENGE YOUR STORY: It would be easy to make the contracting officer the villain. But the best leaders challenge their stories. So you could ask, “Why might a rational, reasonable and decent person make the mistake she made?” and “What role did I have in allowing her mistake to go unnoticed and uncorrected?” These questions move us from angry judge to curious problem-solver.

ing their job, shut down and stop participating, and are less likely to go above and beyond in their responsibilities. Luckily, leaders can ensure they are at their best even when the pressure is on by devel-

oping a few simple skills: — DETERMINE WHAT YOU REALLY WANT: Say your boss told you off for an error your team made. You’re humiliated and angry, and you blame your contract-

— START WITH FACTS: Skilled leaders tamp down the temptation to level accusations, and instead gather the facts. Focus on what you expected: the commitments, standards, policies or targets that were missed. Then add what you observed: the specific actions with dates, times, places and circumstances as necessary. Don’t add your conclusions, opinions or judgments. Because facts are neutral and verifiable, they become

I build the right relationships? Did I put in the extra work? Did I speak up? Did I blame others for my failures but take credit for my successes? You must own everything. — BE RESOURCEFUL: “MacGyver” was a popular show when I was in fifth grade. The premise was that the lead character was put in an impossible situation with few to no tools, weapons or resources, with very little time, and had to get out of the situation using only his wits and whatever was in his pocket or lying around nearby. Every week, he figured it out. The best salespeople I have seen are like MacGyver, sans the life-or-death scenarios. Resourcefulness is as much a mindset as it is a skill. As an exercise, seek out or fully embrace the next ridiculous or impossible situation you find your-

self in and then put your phone down, close your computer and apply your energy to finding alternative routes to your desired destination. — BE AN EXPERT: Sales is less about selling and more about leading, which requires high levels of confidence, which in turn requires knowledge and experience. Gaining industry knowledge and a strong point of view about the products you’re selling should be your top priority. — HELP OTHERS: Regardless of where you are in your career, there is someone else you can help. The best salespeople regularly pass their knowledge on to less tenured or less experienced salespeople with no expectation of anything in return. The act itself becomes a catalyst for building self-confidence. And others take notice as well. Shawn

the common ground for problemsolving. — CREATE SAFETY: When you’re under pressure with your job or reputation on the line, how do you light a fire under your team without showing anger? Can you get your employees to put in overtime without threatening them? Yes. Our study showed that teams work harder and more effectively if a boss doesn’t lose his temper. Share your positive intent by saying something like, “This is not about blaming, it’s about fixing. I want us to focus on how we can solve our immediate problem. Then we can find ways to prevent it from happening again.” If you’ve lost your temper in the past, be easy on yourself. You may do it again. But don’t be discouraged — or complacent. While it isn’t easy to step up to your best self under pressure, it is incredibly important. These are defining moments for you and your team.

David Maxfield leads the research function at VitalSmarts, where Justin Hale is a master trainer.

The five things all great salespeople do Joseph Curtis MONEY he best salespeople take pride in their work. They separate themselves from the rest of the pack regardless of circumstance. How do they do it? I’ve spent 16 years in technology sales. I’ve noticed that great sales professionals in tech and beyond share some habits and characteristics. I’ve distilled my observations into five recommendations for success. Here’s what I advise: — OWN EVERYTHING: Elite salespeople approach their goals with a total-ownership mindset. Anything that happens to them, whether or not it was their doing, is controlled by them. It may not be their fault, but it is their responsibility. Psycholo-

gists call this the internal locus of control . That’s a fancy way of saying you think the power lies inside you instead of outside. And having an internal locus of control correlates with success at work, higher income and greater health. Take your current situation — your accounts, your role, your earnings — and ask yourself: How did I get here? Did

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

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Achor, author of “Big Potential,” found that “work altruists” are 40% more likely to receive a promotion. — MOVE QUICKLY: I’ve often been amazed when I’ve encountered salespeople who were slow in getting back to their clients or customers and delayed delivering contracts or materials needed to make a decision. Most elite salespeople have a sense of urgency. Look at the top salespeople in your own company and see if they possess most if not all of these characteristics. I bet they do. And I also bet they’d be willing to share their strategies with you.

Joseph Curtis is a vice president of enterprise sales at Salesforce.

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Friday 21 December 2018

Team-by-team analysis of Uefa Champions league round of 16 draw Anthony Nlebem

ollowing a scintillating group stage phase, the Champions League round of sixteen draws has been finalised with teams set to do battle in quest for a place in the quarterfinals. Bayern Munich and Liverpool, both five-times European champions, will meet in one of three England vs Germany clashes, while poor performing Manchester United that recently parted ways with Jose Mourinho will face French leaders, PSG, following the draw made at UEFA headquarters on Monday. Premier league champions Manchester City will take on Schalke 04 and Tottenham Hotspur will face Borussia Dortmund in the other clashes between the Premier League and the Bundesliga. Holders Real Madrid will face four-times winners Ajax Amsterdam, which has reached the knockout stages for the first time since 2005-06. In other ties, Serie A champions Juventus face Europa League winners Atletico Madrid and Barcelona take on Olympique Lyonnais, while AS Roma face Porto. Here, we do a team-by-team analysis of the round of sixteen draw held on Monday, December 17th at UEFA headquarters. Manchester United vs PSG Ligue 1 leaders, PSG would be excited to be up against a deflated Manchester United side that has lost form under Jose Mourinho’s management. The sack of the ‘Special One’ by the Old Trafford hierarchy and the appointment of former striker, Ole Gunnar Solskjaer, might be a turning point for the Red Devils when they play PSG. Solskjaer will be faced with a task of turning the fortunes of Manchester United side with averagely talented, but misfiring squad. Solskjaer will certainly have his work cut out as he prepares Manchester United on how to deal with star-studded PSG side that parade the likes of Neymar, Mbappe and

Edinson Cavani. Borussia Dortmund vs Tottenham Arguably the most even pairing of the eight and a tie that really could go either way in terms of who progresses to the next stage, especially as two of Europe’s most exciting sides look set to do battle once more. Last season, the two sides were paired together in the group stages and Tottenham came out on top on both occasions. Those results saw the North London outfit top their mini-league before eventually being knocked out by Juventus in the round of 16. This season, Mauricio Pochettino’s men had to make do with a second place finish in the group stage and will be wary of a Borussia Dortmund side that has definitely improved since that pair of losses last season. They are unbeaten in the Bundesliga this season and have already managed to get the better of archrivals Bayern Munich in their first league clash of this campaign. There are many similarities between Tottenham and Dortmund, not just in the way they play, but also their preference to promote youth football than spending big money. Liverpool vs Bayern Munich The second of three Premier League vs Bundesliga clashes in this stage of the Champions League as last season’s losing finalists are paired with a side that is going through something of a transition at present. The once mighty Bayern Munich are struggling to keep up with Borussia Dortmund and are undoubtedly feeling the after effects of a change in managerial personnel. There was always going to be huge shoes to fill when Jupp Heynckes left and Niko Kovac is the man who is trying his best to do so. Unfortunately for him, he is yet to get the better replacements for the likes of Arjen Robben and Franck Ribery for as good as they have been for the Bavarian giants they simply cannot last forever. Bayern are not a team that can be written off and will be a big test for Jurgen Klopp’s Liverpool side that has rediscovered form with Salah, Sadio Mane inspiring the team to victory.

Again, Jurgen Klopp will be hoping to relish his coaching pedigree as he gets the opportunity to go up against an old foe. The recent scoring form of Egyptian striker Mo Salah could wreck havoc for Bayern’s defence. Manchester City vs Schalke 04 Manchester City tie against Schalka 04 makes up the English contingent in the third of the Premier League vs Bundesliga Round of 16 battles, and soccer pundits say they have the easiest pairing of them all. Arguably the competition minnows, Schalke will be looking to set up the biggest upset of the round by progressing to the last eight and moving one step closer to replicating their final four appearances in 2011. For Manchester City, this presents the perfect opportunity to assert their European dominance as Pep Guardiola looks to be the man to lead the club to their first ever success in the Champions League, while also ending his eight-year trophy drought in the competition. Real Madrid vs Ajax Amsterdam It will be a disaster for any team to write off Real Madrid despite their dip in form this season. The Champions League is a competition they have dominated in the last five years, win-

ning four of the five trophies. Real boast of the richest pedigree of all in this tournament and will be confident that they can dust themselves out after an early-season blip to extend their winning streak to four years in a row. Real are without the legendary Cristiano Ronaldo who swapped Madrid for Turin back in the summer and also the managerial mastermind of Zinedine Zidane who bowed out after Los Blancos success over Liverpool back in May, 2018. This tie could well prove to be the shock of the round should Ajax get the better of Real Madrid. Juventus vs Atletico Madrid The two best defensive outfits in Europe currently go head to head in the Round of 16. A dogged Atletico Madrid team led by former Argentina midfielder Diego Simeone will face a daunting task against Italian champions that parades the all-time top scorer, Cristiano Ronaldo in the competition history, who moved from Real Madrid to Juventus in the summer transfer. The presence of phenomenal Cristiano Ronaldo could be that signing that turns Juventus to outright winners. Also, the two clubs know all about

falling short at the final hurdle with both of them being tormented by a Real Madrid side that included Ronaldo. For Atletico, it was defeat in 2014 and 2016, while for Juventus it was in 2017. Juventus were losing finalists back in 2015 at the hands of Barcelona. This could be the year Juventus end their Champions league jinx. Barcelona vs Lyon 2015 Uefa Champions League victory was the last time last time that the Catalan giants have won the Champions League, for a club of their pedigree. That is a wait that has gone on far too long. What is probably all the more galling is the fact that they have had to watch Real Madrid go on and win the last three editions of the competition, something that has undoubtedly rubbed salt in their proverbial wounds. The Round of 16 draw presents a realistic hope of reaching the last eight as they are paired with a Lyon side who in fairness did manage to get the better of Manchester City in the group stage of the competition. Barcelona manager Ernesto Valverde cannot afford to take the Ligue 1 opponents too lightly as they will be duly punished. AS Roma vs FC Porto Arguably the two clubs that a lot of the bigger names would have preferred to face in the Round of 16. The fact that they have been paired with each other will undoubtedly be good news for both Porto and Roma. The current Portuguese league leaders topped what was the weakest group of the opening phase and did so with relative ease as they picked up 16 out of the 18 points that were on offer. They go up against an Italian side, Roma, that finished second in a group that had Real Madrid and it is fair to say that their European exploits have been a welcome distraction after what has been a forgettable domestic season. Regarding the poor season of AS Roma in the Serie A, they will have to fight hard on a domestic plan to take part in the Champions League next season. That might be a priority for them, and they may lose a lot of strength in their Championship, contrary to FC Porto.

Chisoara vows to upset Whyte in heavyweight rematch … match Live on Kwesé TV

fter emerging victorious in their fights against Joseph Parker and Carlos Takam earlier in the year, Dillian Whyte and Derek Chisora are set for a rematch at the O2 Arena in London on Saturday 22 December. Whyte had won Chisora by a split decision after a ferocious 12-round fight in Manchester back in December 2016. But the Whyte, Chisora rivalry was rekindled after Chisora knocked-out Carlos Takam in the eighth round of a dramatic WhyteParker undercard in July. Kwesé will broadcast the Whyte v Chisora bout on its free-to-air (FTA) sports channel, Kwesé Free Sports –

available on its satellite TV service, Kwesé TV and mobile platform, Kwesé iflix. Boxing fans can tune into Kwesé TV channel 285 at 7pm or catch the fight on-the-go on the Kwesé iflix mobile app available on Android and IOS. In the undercard, Charlie Edwards challenges WBC flyweight champion, Cristofer Rosales for the world title. The WBA international light-heavyweight belt is also on the line as Joshua Buatsi faces Renold Quinlan. Ryan Walsh will also defend his British featherweight title in a fight against Reece Bellotti while David Price and Tom Little clash in a heavyweight fight.

General Manager for Kwesé TV in Nigeria, Elizabeth Amkpa says “Kwesé TV is thrilled to bring its viewers another international heavyweight bout which promises to be an action-packed slugfest”. All Kwesé TV subscribers with disconnected accounts will need to pay the annual access fee of N1,900 to be able to watch the bout. Kwesé TV decoders continue to retail for N10,960 at Kwesé dealer outlets across the country. Kwesé Free Sports has exclusive FTA pan-African rights for some of the world’s leading sports content including the Premiere League, NBA, boxing and so much more.

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Highlight of the news reports on our digital platforms this week

Best five stories this week Access Bank to launch $200m rights issue after Diamond Bank acquisition

Nigeria stands at the threshold of history, as the first gold refinery in the country gets underway in Mowe, Ogun State, with a ground breaking this Thursday.

Access Bank which announced the acquisition of Diamond Bank to create Nigeria’s largest banking institution will launch a subordinated rights issue of about $200m to keep its capital well above regulatory requirements, bankers working on the deal told the Financial Times.

Benue 2019: Ex-administrator of Katsina flags off senate campaign Erstwhile Military Administrator of Katsina State Joseph Akaagerger (rtd), has flagged off his campaign for his 2019 Benue North East Senatorial District (Zone A) election bid with the promise to fill the “lacuna in service to the people” of Zone A. He is flying the All Progressives Grand Alliance (APGA) flag for the election.

Ogun APM moves against Abiodun, APC; backs Buhari, Amosun’s reelection

For more visit our website at businessdayonline.com to catch up on full news stories.

Generals affected

POLL RESULTS:

The Nigerian Army has announced the posting of a total of 39 senior officers, in an exercise that affected thirty four Major Generals, and five Brigadier Generals.

Nigeria’s first gold refinery gets underway

Based on the just concluded debate, who would you to prefer to be VP? 39% say they prefer Prof Osinbajo, 56% say that their preference is Peter Obi, 4% are indifferent while 1% have a different option than those mentioned. Kindly send your opinions on this question to digital@businessday.ng

Poll of the week

Allied People’s Movement (APM), the political party which has accommodated Governor Ibikunle Amosun’s aggrieved factional members of All Progressives Congress (APC), Ogun state chapter has knocked primaries that produced Dapo

Tweet of the week

Abiodun as APC governorship candidate as against Adekunle Akinlade.

Another shake-up in Army, 39 Video of the week

Cartoon of the week

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Live @ The Exchanges Top Gainers/Losers as at Thursday 20 December 2018 GAINERS Company

LOSERS Opening

Closing

Change

N555.2

N593

37.8

N186

N190

N20.25

N21

0.75

DANGSUGAR

N13.3

N14

BERGER

N7.15

N7.85

SEPLAT DANGCEM CONOIL

Market Statistics as at Thursday 20 December 2018

Company

Opening

Closing

Change

NESTLE

N1470

N1460

-10

TOTAL

N195

N192

-3

CCNN

N19.05

N17.8

-1.25

0.7

FLOURMILL

N21.85

N21

-0.85

0.7

ETI

N15

N14.25

-0.75

ASI (Points)

30,802.90

DEALS (Numbers)

3,224.00

VOLUME (Numbers) VALUE (N billion)

4.089

MARKET CAP (N Trn

Merger: Access, Diamond set January 2019 timeline for SEC clearance Stories by Iheanyi Nwachukwu

ccess Bank Plc and Diamond Bank Plc have jointly released the proposed timetable for their merger saying they are hopeful to get the Securities and Exchange Commission (SEC) clearance for the Scheme of Merger by January 2019 . This optimism comes on the heels of “No Objection” they already received from the Central Bank of Nigeria (CBN) regarding the potential merger between the two banks, which is expected to complete in the first half (H1) of 2019. Transaction completion is subject to Access Bank and Diamond Bank obtaining shareholder and regulatory approvals (Central Bank of Nigeria, the Securities and Exchange Commission, the Federal High Court (FHC) and the National Pension Commission (PenCom). By March 2019, Access Bank and Diamond Bank will hold court-ordered

meetings on the merger. Both banks are optimistic that in April/May 2019, the SEC and Central Bank of Nigeria (CBN) will give their final approvals to the deal which will be completed by end of June 2019. Citigroup Global Markets Limited and Chapel Hill Denham Advisory

Limited acted as Financial Advisers to Access Bank Plc while Banwo & Ighodalo acted as Legal Adviser to Access Bank. Also, Exotix Capital acted as financial adviser to Diamond Bank while Templars acted as Legal Adviser to Diamond Bank. Following the sign-

L-R: Cherie Blair QC and Dorothy Udeme Ufot, SAN, with Tony Blair in the background at the Omnia Strategy LLP cocktail which took place in London recently.

ing of the Memorandum of Agreement and announcement of headline terms, which valued Diamond Bank at approximately N72.5 billion ($200million) and will see Diamond Bank shareholders receive N3.13 per share in cash and shares, Access Bank and Diamond Bank announced further details, including the rationale and benefits of the deal, the estimated cost synergies, the capital management plan and the timetable. The merger will form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients. It will bring together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments. The merger’s cost synergies conservatively estimated at N30 billion per annum, pre-tax is to be fully realised within three

years post-completion. The pro-forma capital position of the merged bank will be in full compliance with regulatory requirements for significant financial institutions with an international banking presence. However, in order to meet international standards of best practice and ensure a robust capital buffer, Access Bank and Diamond Bank have jointly agreed a strategic capital management plan and expect to achieve a post-completion Capital Adequacy Ratio (CAR) of 20percent at the Bank level and 22percent at the Group level. Herbert Wigwe, CEO of Access Bank, said: “I am delighted to announce that we have received the necessary regulatory approvals to pursue a merger with Diamond Bank, one of Nigeria’s foremost digital and retail banks, subject to final regulatory and shareholder approvals. The combination of our two businesses will create the largest retail bank in Africa by customer base and a very significant player in the Nigerian market.

NSE says SEC-approved sustainability disclosure guidelines mandatory for Premium Board listed companies …reporting becomes effective Jan. 1

n fulfillment of its desire to champion sustainable capital market practices in Africa, the Nigerian Stock Exchange (NSE) said its Sustainability Disclosure Guidelines has been approved by the Securities Exchange Commission (SEC). The Guidelines available on the NSE website will also be distributed to Issuers who are listed on all the Boards of the Exchange. Its reporting becomes effective on January 1, 2019. The Sustainability Disclosure Guidelines will be mandatory for companies listed on the Premium Board of the Exchange, according to the Nigerian

Stock Exchange. The Nigerian Stock Exchange said it recognises that the promotion of Environmental, Social and Governance (ESG) principles can facilitate more meaningful engagement between investors and listed companies on ESG risks and opportunities. This, in turn, is expected to further deepen the role played by market operators and regulators in leading sustainability policies and regulations. The Guidelines primarily provide the value proposition for sustainability in the Nigerian context. It also articulates a step by step approach to integrating sustain-

ability into organisations, indicators that should be considered when providing annual disclosure to The Exchange, and timelines for such disclosures. Whilst developing the Guidelines, the Exchange noted that Issuers may be at varying levels of understanding sustainability disclosure requirements and capacity to comply with the requirements. The Exchange encourages all Is-

545,980,788.00

suers to adopt the practice of sustainability reporting. Whilst describing the objectives of the Sustainability Disclosure Guidelines, Oscar N. Onyema, Chief Executive Officer of NSE explained that, “We are supporting the global agenda of green and sustainable finance, which is so critical for Africa. As the first Exchange to list a sovereign green bond in Africa, our issuance of these Guidelines is to further enable investors ascertain their exposure to ESG risks whilst providing our Issuers a platform to disclose them along common themes for comparability. We encourage peer exchanges on the continent

to continue to enhance information disclosure in their markets as this will help build trust”. Olumide Orojimi, Head, Corporate Communications at The NSE is of the view that: “with continued global participation in our market, a shared framework of ESG principles with multi-stakeholder approach and metrics is imperative. The Guidelines set out recommendations for good practice in thirteen thematic areas under four core principles in ESG reporting. With the launch of these Guidelines, investors can look forward to a consistent approach to ESG reporting from Issuers listed on The NSE”.

11.251

Carlyle Group to invest $40m in Wakanow.com

lobal alternative asset manager The Carlyle Group has announcedt that it has agreed to invest $40 million in Wakanow.com Limited (Wakanow), an online travel agency focused on West and East Africa, with principal operations in Nigeria. Equity came from Carlyle’s SubSaharan Africa fund and further financial details were not disclosed. Founded in 2009 in Nigeria, Wakanow is one of West Africa’s largest full-service online travel companies, providing its customers with a onestop online booking portal for flights, hotels, holiday packages, and other travel services and ancillaries. Complementing their online offering, Wakanow also operates a network of traditional brick-and mortar travel centres and has operations in Nigeria, Ghana, Kenya, UAE and the UK. Wakanow enjoys strong brand recognition and a scale advantages in its local markets. This investment adds to Carlyle’s experience in the online travel sector, where it has invested in companies such as C-trip, one of the major online travel agencies operating across China, the Latin American travel and tour operator CVC Brasil, and Vasco Turismo, one of the largest travel operations groups in Peru. Obinna Ekezie, CoFounder and CEO, Wakanow, said: “We are excited to partner with Carlyle as we continue to grow and expand in Africa and beyond. Carlyle’s global footprint and scale as well as its extensive experience and network in the online travel sector will help us to further develop our offerings and broaden our customer base.” Idris Mohammed, Managing Director, The Carlyle Group, said: “Wakanow has experienced incredible growth since inception, disrupting the travel market and taking market share both online and offline.

Friday 21 December 2018

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Friday 21 December 2018

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Uncertainty over availability of ‘Nigerian rice’ for Christmas

. . . Paddy prices drop 40 percent in 2years, but local rice remains expensive . . . Some sellers yet to receive Lake Rice after 10 months of paying Stories by CALEB OJEWALE Twiiter: @calebtinolu

he United States Department of Agriculture (USDA) report on Nigeria’s rice import may have been false, but it is unlikely locally produced rice will be available for most Nigerians to consume during this festive season. Earlier this year, ‘Foreign rice’ was sold cheaper; in the N12,000 to N14,000 range whereas locally produced rice averaged N17,000. The price of locally produced rice has hardly reduced in the last two years, despite the gradual drop in costs of paddy rice, which is essentially the raw material. Senior executives at rice milling companies had lamented at different times when interviewed, that the cost of paddy rice needed to drop in order for the cost of local rice to equally reduce. This, however, does not appear to be the reality. From N13,000 two years ago, a jute bag of paddy rice with an average weight of 75kg now sells for N7,500 on the average; approximately N100 per kg. A recent visit to Lafiagi, a rice producing area of Kwara state, showed this as the current market price, which rice milling companies use in making their purchase from aggregators.

Muhammed Augie, chairman, Rice Farmers Association of Nigeria, Kebbi State chapter, had also recently said paddy rice costs about N8,000 per bag. The drop in price from N13,000 in 2016 to an average of N7,500 at present, represents a 42 percent drop in cost of paddy rice. Last year, paddy was sold at an average cost of N11,000 per bag and has been gradually reducing until it got to the present price. However, the drastic drop in cost of paddy rice over time has not reflected in the cost of locally produced rice, which has reduced by at most, 10 percent in price. Despite repeated assurances by the Buhari led administration, that from the end of this year, locally produced rice will be available for consumption

by “all Nigerians”, the reality is not quite the same. Nigerian markets remain largely flooded with foreign rice, which for emphasis is not imported, but smuggled. Even though export data from Thailand, India and other countries that previously exported rice to Nigeria show volumes have declined by over 90 percent, smuggled ‘foreign rice’ is what many in the south still find in the markets. The smuggled rice which used to be much cheaper than locally produced rice, is now almost at par in cost, yet still enjoys patronage. A survey of major markets particularly in Lagos and Rivers States, showed the ‘foreign rice’ dominate the markets. “If you find one local rice displayed, you will find 20

brands of foreign rice on that display as well,” Ajayi Adekunle, manager, Double Door Limited, whose company has been in the rice business for years, first as an importer, and now, a distributor of locally produced rice, told Agribusiness Insight. At the Mile 1 market in Portharcourt, Mario, Tomato, Abiba, and Caprice which are brands of ‘foreign rice’, sold for N18,700 or N19,000. The locally produced rice found at the time of the market survey were Mama’s choice with a 50kg bag selling for N15,500 or N16,000 and Mama’s pride, which was sold for N16,500 or N17000. Other brands of Nigerian rice sold for an average of N15,000 per 50kg bag. The ‘foreign rice’ which used to be cheaper now appears either more expensive or at par with the local rice

depending on the market. As Amaka Nwachukwu, a Portharcourt resident described it, “the price is increased by sellers because it is foreign and they know people buy it more than Nigeria rice.” At the Daleko market in Lagos, brands of imported rice such as Caprice, Royal Stallion and others ranged between N15,000 and N16,500 for a 50kg bag. Available brands of local rice included Mama’s choice and Mama’s pride sold for N16,500 per 50kg bag, Ahuoma rice, a brand sellers said is made in Abakaliki was sold for N16,500, while African princess, a brand of Ghanaian rice was sold for N15,000; even cheaper than most Nigerian brands of rice. A major question remains why local rice is not only cheaper but readily available like the foreign rice. Rice millers in the country are unanimous, more or less, in the assertion that cost of production makes it less feasible for the cost of locally produced rice to be as low as the foreign rice. However, the euphoria surrounding increasing production volumes of local rice makes the situation (with high production costs) rather puzzling. With the Central Bank of Nigeria led intervention through the Anchor Borrowers’ Programme, and Federal Government’s campaign, the volume of rice production

ought to have become more noticeable across markets in the country. While the cost of paddy rice appears to be coming down, and may have contributed to marginal decrease in price of some local brands of rice, the reduction however does not seem enough, at least, not in comparison to the foreign alternatives. While Adekunle explained that people want the local rice, he says it is not readily available in the markets. Since February, he has ordered for four trucks of Lake rice, which should contain 2,400 bags, but it is yet to be delivered. In Lagos, Lake rice, which is promoted (and subsidized) by the state government is perhaps the most popular brand of local rice. In a phone interview this week, he said the rice may not be available as cheap as N12,000 which it was sold in the past. Even as he has not taken delivery of his order or gotten a refund, Adekunle says he has now been told he would have to pay some additional money before taking delivery of his rice shipment after waiting for 10 months. “The smuggled rice across the border is what Lagosians eat more. In fact, lake rice is not enough to take care of the people in Lagos state (alone),” said Adekunle in August, and now four months later, he says the positions remains the same.

LIFE Agents (LIFE stands for Livelihoods Information Field Entrepreneurs). Each LIFE agent supports 50 to 100 smallholder farmers. They are young unemployed graduates recruited from around the communities in which they will serve. They are trained by CBIiL and equipped with a dedicated Android device on which various applications specific to their missions are installed. They receive commissions on the products and services (inputs, telephone credit, banking, etc.) they sell to farmers and a premium based on the productivity growth of

each farmer with whom they work. A successful, thriving, highly productive African agricultural sector is possible. The transformation of the smallholder farming sector into a high-performance producer integrated into the global food value chains will not only grow local economies, ensure a more successful agri value chain, contribute to achieve self-sufficiency and safeguard food security, but will transform the lives of the 250 million smallholder farmers and their families whose livelihoods depend on their produce.

SAP develops solution to connect smallholder farmers to agricultural value chains

AP has over time been known as a ‘conventional software and technology company’, and while it has been working across different sectors over time, agriculture is beginning to feature more prominently in its areas of impact. In recent years, SAP says it has worked with several smallholder farmer organizations and agribusinesses in Africa to develop and test a dedicated solution to connect smallholder farmers to agricultural value chains. This solution is called SAP Rural Sourcing Management, and it is designed to capture, main-

tain and share individual data of smallholder farmers such as crop types, geographical location of fields, farm size, harvest prospects, farmers’ production sales transactions, and more. Frédéric Massé, Africa Agriculture Industry Head at SAP Africa, noted that; it also connects smallholder farmers to information providers (training in best agricultural practices, weather data, market data, etc.) and facilitates access for smallholder farmers to various stakeholders in the broader agricultural value chain, including financial

services, buyers and suppliers of inputs (fertilizers, seeds, pesticides and agricultural equipment). For governments, access to some of this data is also very important. It enables more effective and efficient public policy and intervention decision-making to ensure, for example, food security and safety, crop diversification and farmer financing at the local, regional and national levels. SAP Rural Sourcing Management, sometimes in combination with other SAP commodity trading solutions, is

currently being evaluated and implemented in several African countries as part of publicprivate producers partnerships managed and financed by private companies. The most recent example is CBI Innovations Ltd. (CBIiL), the for-profit arm of CBI Nigeria, who chose SAP Rural Sourcing Management to integrate 850,000 small maize producers into the agricultural value chains. CBIiL will be combining the use of SAP Rural Sourcing Management with the model of private extension services agents they have developed: the Community

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Opportunity corner International Nut and Dried Fruit Council unveils funding opportunities

T FAO hails landmark UN resolution that enshrines rights of peasants and rural workers

AO has haile d a landmark United Nations General Assembly resolution adopting the Declaration on the Rights of Peasants and Other People Working in Rural Areas. The Declaration, which the G eneral Ass embly adopted on 17 December 2 0 1 8 , a i m s t o p ro t e c t t h e r ig hts o f a l l r ura l p opulations including p e a s a nt s, a g r i c u l t u ra l and rural workers and indigenous peoples, while also recognizing their contribution to sustainable development and biodiversity and the challenges they face. “ FAO w e l c o m e s t he adoption of the declaration. Rural people have been consistently left behind - they make up the vast majority of the world’s poor, generally have lower wages and less access to water, energy, social protection and other services that are essential for their sustainable development.

This is an opportunity to change this reality,” said Carla Mucavi, Director of the FAO Liaison Office to the United Nations in New York. Specific rights recognized by the Declaration include the right to adequate food, land and water. The Declaration also upholds the need to respect the cultural identity and traditional knowledge of rural people as well as the need to provide social protection and to ensure gender equality in rural areas. The adoption of the Declaration is the culmination of an inclusive negotiation process that lasted six years led by Bolivia. FAO has supported the process to adopt the Declaration, which is linked to most of the principles and guidelines adopted by the Committee on World Food Security and various FAO bodies. I n p a r t i c u l a r, t h e Declaration makes reference to the Voluntary Guidelines on the

Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security and other global conventions such as the International Treaty on Plant Genetic Resources for Food and Agriculture. The themes and values underpinning the Declaration also relate to other aspects of FAO’s work including with indigenous peoples. Leaving no one behind Mounting evidence shows that people in rural areas suffer disproportionately from hunger and poverty. Globally, the poverty rate in rural areas is more than three times higher than in urban areas, and rural areas account for over half of the world’s population and 79 per cent of the total poor, according to a recent World Bank report. Seventy percent of the two billion people in the world without basic sanitation services live in rural areas and the access rate to energy in rural areas is of approximately

75 percent compared to 96 percent in urban areas. According to the Report of the Special Rapporteur on Right to Food presented to the seventy-third session of the General Assembly, only about twenty per cent of agricultural workers have access to basic social protection and their wages are generally low, paid late and not periodically adjusted. The Declaration is also expected to have a positive impact on the livelihoods of family farmers, who produce over 70 per cent of the world’s food-and over 80 per cent in developing countries-in terms of value. FAO is providing knowledge and resources to member countries in support of the UN Decade of Action on Nutrition and the UN Decade of Family Farming, both of which stress the centrality of peasants, small-scale fishers and pastoralists in achieving sustainable food systems that provide healthy diets for all.

Tunisia Trains first set of Drone pilots for agricultural productivity

ight pilots have successfully passed their drone flight training in Tunisia following a twoweek intensive training period organized by the Ministry of Agriculture of Tunisia, the African Development Bank and Busan Techno Park. The training which focused on handling, maintenance and the security aspects of flying drones, took place in Tunis from 19-30 November 2018. The eight were the first batch out of 40 candidates selected for the exercise, which envisages training a total of 400 young Tunisians by 2021. The project will also see the setting up of a training center equipped with training drones as well as computer simulation tools for drone control. This center is expected to be upgraded to a center of excellence in drone technology. The training also focused on promoting drone-centered

activities in Tunisia in view of promoting efficiency and effectiveness. “It is very good training. I want to share my experience. I would like to participate in this project and contribute for the development of Unmanned Aerial Vehicles (UAVs) in my country Tunisia and my region, Africa,” said Lazhar Meskine, an air traffic management

engineer, who was among the trainees. After accumulating 20 hours of flight time and passing the practical flight, they obtained a “Drone Pilot Certificate” recognised by the Tunisian government. The four best trainees from this first batch will undergo further training for eight weeks to accumulate 100 hours of flight

time. This will make them eligible to take the certification examination and qualify as drone pilot trainers. “I have also learned many things through Tunisian trainees. It gives us a great chance to understand the local situation for further projects by using drone technologies,” their instructor, Yong-ju Seo, added.

he International Nut and Dried Fruit Council (INC) has launched its Annual Call for Research Projects, with a value of 300,000 Euros, and annual call for promotion and dissemination projects to fund research into the health benefits of nuts and dried fruits and spread the message around the globe. The grants are aimed at

helping improve understanding of the benefits of eating nuts and dried fruits and promoting their consumption, especially in developing countries. The invite is open to public and private institutions, as well as not-for-profit organizations. More information can be found at https://www.nutfruit. org/health-professionals/ funding-opportunities.

Nobel Peace Prize Laureate Nadia Murad joins FAO’s efforts to end hunger

he Yazidi human rights activist and 2018 Nobel Peace Laureate Nadia Murad has joined FAO’s efforts to tackle the twin problems of hunger and violence by becoming a new member of FAO’s Nobel Peace Laureates Alliance for Food Security and Peace. José Graziano da Silva, FAO’s Director-General presented Murad with a membership diploma on the sidelines of the Nobel Peace Prize ceremony, which took place in Oslo. Murad, who became the voice and face of women who survived sexual violence by the Islamic State and doctor Denis Mukwege, a gynecological surgeon who founded a hospital in the Democratic Republic of Congo, have been awarded the 2018 Nobel Peace Prize for their campaigns against the use of rape as a weapon of war and armed conflict. Launched in 2016, the Alliance cooperates with FAO to strengthen the link between peace and food security and is part of the agency’s ongoing work to promote sustainable development and resilience across the world. It includes former Costa Rican president Oscar Arias Sánchez, women’s rights promoter Tawakkol Karman, advocate against inter-religious violence

Betty Williams, microcredit creator Muhammad Yunus, former Colombian president Juan Manuel Santos, former president of South Africa, Frederik Willem de Klerk, and Argentinian activist Adolfo Pérez Esquivel. No peace without food security “We do not lack any evidence: if conflict increases, hunger increases. The relationship is direct,” FAO Director-General José Graziano da Silva said welcoming Murad to the Alliance. “I thank Nadia for her engagement and put FAO at her disposal to support her work and her advocacy efforts for world peace.” G raz i a n o d a Si l va stressed the role of wars and conflict as drivers of the rise of hunger in the world, and lamented that global military spending continues to increase while countries allocate scarce resources to fight against hunger. He stressed that rural areas and their populations, particularly women, continue to be the most affected in conflicts, as attacks on farming communities undermine rural livelihoods and displace people from their homes. Assisting farmers and empowering rural women is critical to prevent widespread displacement and harassment.

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FINANCIAL TIMES

World Business Newspaper

The new era of US-China decoupling

Decades of convergence are unravelling, forcing other nations into an unwelcome choice Edward Luce

his year’s most startling meeting of minds has been the rise of an antiChina consensus in the US. It spans Donald Trump’s White House and Congress, Republicans and Democrats, business and unions, globalists and populists. America may be at war with itself on almost everything else. But it is uniting on fear of China. Standing up to Beijing is the sole issue on which Democrats are often to the right of Mr Trump. “They need us more than we need them,” said Chuck Schumer, the Democratic Senate leader, last summer in praise of the president’s punitive China tariffs. The coming year will put Mr Schumer’s claim to the test. Even if Mr Trump strikes a truce with Xi Jinping, China’s leader, when they meet next month, cross-border businesses are planning as though the larger trade war will continue. Former US cheerleaders of USChina integration, such as Hank Paulson, foresee an “economic iron curtain”. Others talk of a “ new cold war”. It is hard to disagree. Mr Trump, backed by a new Washington consensus, wants Mr Xi to dismantle his “Made in China 2025”. It is one of Mr Xi’s signature drives. A climbdown would undo his domestic authority and upend China’s national security goals. It would be a shock were he to agree

to it. As a result, 40 years of US-China convergence is starting to unravel. It is hard to overstate the strategic importance of this reversal. Since they normalised ties in 1979, the US has underwritten China’s emergence on the world stage. With one or two pauses, notably after the 1989 Tiananmen Square massacre and tension over the Taiwan Strait in 1996, the US kept its faith in China’s destiny as an increasingly open — and decreasingly authoritarian — partner. America put its faith in a “winwin” relationship. Barack Obama even tried an informal “G2” world in which they would settle big problems together. He was spurned. China today is less open and much less free than when Mr Obama came to office. The prism has now changed to “win-lose”. It is easy to be distracted by Mr Trump’s bluster. One moment he accuses China of raping America. The next he speaks enviously of Mr Xi being “president for life”. Beneath the mood swings lies a consistent hawkishness. When Mr Trump wavers, his critics pounce. Last week he hinted he could release Meng Wanzhou, Huawei’s chief financial officer, who faces extradition from Canada, in exchange for Chinese concessions. He was also criticised for waiving sanctions earlier this year on ZTE, China’s other telecoms giant. Both Huawei and ZTE are accused of being arms of China’s national se-

Brexit uncertainty has ‘intensified considerably’, Bank of England warns Policymakers hold interest rates steady in unanimous decision Chris Giles

he Bank of England warned that Brexit uncertainties had “intensified considerably” during the past month as it left interest rates unchanged at 0.75 per cent. The Monetary Policy Committee voted unanimously to keep rates on hold and make no alterations in the amount of money it had previously printed under its quantitative easing programme after the global financial crisis. With little idea whether the UK was going to leave the EU smoothly or crash out in March, the MPC for the first time gave no indication of how recent data were shaping its thinking on monetary policy. It merely repeated what it had said at its November meeting — that if there was a smooth Brexit with a transition period, the economy was likely to need roughly one quarterpoint interest rate rise a year to keep inflation anchored to its target of 2 per cent. The MPC’s reticence in providing markets with any guidance was even starker because it noted that there

had been significant changes in the UK and global economies since it last met to discuss interest rates in early November. “Brexit uncertainties have intensified considerably since the committee’s last meeting,” the minutes of the meeting said. “The further intensification of Brexit uncertainties, coupled with the slowing global economy, has also weighed on the near-term outlook for UK growth”. MPC members cited the BoE’s regional agents report, which showed weaker consumer demand and companies’ reluctantance to invest in new plant and equipment until they had a better idea what trading relationship Britain would have with the EU after Brexit. The committee’s near-term forecasting model suggested UK economic growth had slowed from 0.6 per cent in the third quarter to an estimated 0.2 per cent in the fourth quarter. While the MPC was generally downbeat on the changes to the UK economy since its last meeting, it noted that conditions in the labour Continues on page A53

curity state. Either way, the normal rules of globalisation are breaking down. Businesses dislike few things more than uncertainty. This is creating two effects. The first is economic disengagement. After years of rapid growth, China’s investment in the US is dropping rapidly. From $56bn in 2016, it has fallen to less than a quarter of that in 2018. US barriers to Chinese entry are getting higher by the day. China’s technology strategy is thus shifting from foreign acquisition to import substitution. Global supply chains are starting to fragment. China is accelerating the “indigenisation” of microchips,

aviation technology and robotics. Trade hawks in Washington believe China is like Japan — efficient at making things that America invented. If they are wrong, they are only advancing the day China will emulate US innovation. If they are right, it will take years before it becomes apparent. The second is that other countries are being forced into an unwelcome choice. In a win-lose world, you are either with America or you are with China. Most countries would prefer never to face this dilemma. Some, such as Japan and Singapore, are hedging their bets by trying to

move closer to both. Others, notably Russia, have chosen China. Therein lies the other strategic unravelling. Richard Nixon broke China from the Soviet orbit in 1972. That dramatic manoeuvre helped America win the cold war. Mr Trump is triggering a “reverse Nixon”. This year, Mr Xi said that ChinaRussia was the “most important bilateral relationship in the world”. He was exaggerating for effect. The most critical by far is between the US and China. Decades of convergence is going into reverse. It is happening at a speed that is taking even Americans by surprise.

US and UK accuse China-backed hackers of ‘widespread intrusions’ America, Britain and allies in co-ordinated push against Beijing sponsored espionage Demetri Sevastopulo and David Bond

he US justice department on Thursday charged two Chinese nationals with conducting a global hacking campaign, in a co-ordinated move with US allies designed to send a stark warning to China to stop stealing technology around the world. Rod Rosenstein, deputy attorney-general, and Christopher Wray, the FBI director who earlier this year warned Congress about the growing threat from Chinese espionage, unveiled the action which is part of a new justice department “China initiative” aimed at tackling rising Chinese cyber espionage. The threat is increasingly raising alarm bells from the US, UK and Canada to Japan, New Zealand and Australia. In the UK, the British government said Chinese state sponsored hackers had been running one of the most “significant and

widespread cyber intrusions” against the UK and its allies, targeting trade secrets and economies around the world. The move to publicly attribute the two year campaign to a hacking group known as APT10 is part of a co-ordinated push back by the US and western allies against Beijing backed espionage and intellectual property theft. UK Foreign Secretary Jeremy Hunt said: “These activities must stop. Our message to governments prepared to enable these activities is clear: together with our allies, we will expose your actions.” Mr Rosenstein said the Chinese nationals were charged with conspiracy to commit “computer intrusion” against dozens of companies in the US and around the world. He said they helped the Chinese government target and penetrate managed service providers that store data on servers around the

world. “It is unacceptable that we continue to uncover cyber crimes by China,” said Mr Rosenstein. “We want China to cease its illegal cyber activities.” One official familiar with the move told the Financial Times that it would “further demonstrate the depths that China has gone to in their quest to cheat their way up the global economic ladder”. The action comes as the Trump administration steps up pressure on China across the board. In addition to attempts to reduce its trade deficit with China, the administration is increasing efforts to tackle everything from the theft of intellectual property to Chinese spying and “influence operations” in the US. In a speech in October, US vice-president Mike Pence put China on notice that the Trump administration believed that previous administrations had been too soft.

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NATIONAL NEWS

FT Brexit uncertainty has ‘ intensified considerably...

China’s share of global output ‘to fall’ by 2040

Continued from page 52

market had improved further and this was likely to generate stronger inflationary pressure in the medium term. “Annual growth in regular pay had risen to 3.3 per cent, stronger than anticipated in the November inflation report, and the committee judged that near-term risks were slightly to the upside,” the MPC minutes of the December meeting said. With continued low productivity growth, rising pay was likely to increase companies’ costs and put upward pressure on prices, the MPC added. And the committee judged that Philip Hammond’s late October Budget had also injected further spending into the economy, which was likely to raise output 0.3 per cent over three years, further boosting inflationary pressure.

Marlboro maker stake values vaping group Juul at $38bn Altria pays $12.8bn for 35% of ecigarette group in ‘biggest investment in our history’ Mamta Badkar

igarette maker Altria on Thursday confirmed a 35 per cent stake in Juul Labs that values the ecigarette group at about $38bn. Altria will invest $12.8bn in Juul, helping to make it one of the world’s most valuable private companies. The deal comes at a time when health concerns and shifting consumer preferences has seen cigarette consumption decline in developed markets. “We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction,”. said Howard Willard, Altria’s chief executive. “Through Juul, we are making the biggest investment in our history toward that goal.” The investment comes despite a crackdown on flavoured ecigarettes. The Food and Drug Administration’s head Scott Gottlieb has said he is preparing to crack down on what he has called “epidemic” levels of underage vaping and Juul has already pulled sweet flavours from more than 90,000 retailers. As part of the deal Altria will give Juul shelf space alongside its combustible cigarettes, though flavoured products will only be available on Juul.com. It will also provide Juul with its logistics and distribution experience, including the option to be supported by its 230,000 retail locations. Altria financed the deal through a $14.6bn term loan facility arranged by JPMorgan. The remaining $1.8bn may be used to finance investment in Cronos Group. Altria will be subject to a standstill agreement, which prevents the company from growing its stake beyond 35 per cent and prevents it from selling Juul shares for six years from closing. Perella Weinberg Partners and JPMorgan Securities serve as financial advisers to Altria. Wachtell, Lipton, Rosen & Katz provide legal counsel to Altria.

Income gaps between rich and poor countries may also fail to close or even widen Steve Johnson

DRC presidential elections may be postponed by at least a week David Pilling

unday’s presidential election in the Democratic Republic of Congo is now likely to be postponed by at least a week after the electoral commission told candidates it would not be able to hold the poll on time. The run-up to polling day, which is already two years behind schedule, has been marred by deadly violence, obstruction of opposition campaigning and a fire in a Kinshasa warehouse in which some 7,000 touchscreen voting machines are said to have gone up in flames. On Thursday at least three candidates received a text message from the election board saying that it was “technically unable” to organise the ballot on time, according to Reuters. The delay threatens to inflame an already tense situation in the

western European sized country, many of whose nearly 50m registered voters suspect the government is preparing to rig the poll. The voting devices purchased from a South Korean company are so controversial, one opposition leader called them “cheating machines” and up until a few days ago had advised his supporters not to use them. After intense pressure for him to go, Joseph Kabila is due to step down as president after 17 years in power, but his administration has used all the levers of incumbency to ensure that his chosen successor Emmanuel Shadary is elected. Mr Shadary has a 400-strong campaign team and has been able to visit all 25 provinces in the country during the campaign. By contrast, on more than one occasion, a plane belonging to one of the two main opposition candidates — Martin Fayulu and

Felix Tshisekedi — has been prevented from landing in government strongholds, forcing them to cancel planned campaign rallies. On Wednesday, police fired tear gas into crowds in Kinshasa who were protesting against a decision by authorities to stop Mr Fayulu from holding a rally in the capital, where Mr Kabila is hugely unpopular. The logistics of holding an election in the vast country, much of it covered in rainforest and accessible only by plane, helicopter, motorbike or boat has stretched an administration that has thrived more on chaos than efficient organisation. Compounding the difficulties are militant insurgencies in the east of the country, an Ebola outbreak in North Kivu province, and widespread suspicion that Mr Kabila has no intention of bowing out from politics.

Global stocks hit by concerns over growth and Fed rates forecast Equities in US, Asia and Europe all sustain fresh blows Adam Samson

lobal stock markets came under pressure on Thursday, with Wall Street dropping further and European shares falling 1 per cent, amid growing concerns over the global economy and the risk that the Federal Reserve will go too far in raising interest rates. The central bank on Wednesday reduced its forecast for 2019 rate increases, from three quarter point rises to two. Policymakers’ more dovish approach comes amid rising risks across the global economy, from Europe to Asia and the US. However, some investors had hoped for a more soothing tone from the Fed and its chairman Jay Powell. In a press conference, Mr Powell unnerved markets by saying that he did not see the central bank

changing its “autopilot” policy of reducing the size of the Fed’s balance sheet. “As widely expected, the Fed revised down its outlook for future rate increases and made other dovish changes to its message,” said Zach Pandl, Goldman Sachs economist. “But it was not dovish enough to support markets increasingly driven by concerns over slowing economic growth.” The sense of unease over the outlook for the US economy was sharpened on Thursday after a survey by the Philadelphia Federal Reserve showed factory conditions in the mid-Atlantic region had improved at the weakest pace in two years this month. It echoed a poll released earlier this week by the New York Fed. Wall Street stocks declined fol-

lowing the opening bell in New York. The S&P 500 shed 0.8 per cent, leaving the barometer down 2.2 per cent over the past two days. The pan-European Stoxx 600 index dropped 1.3 per cent, after earlier hitting its lowest level since November 2016. Germany’s DAX shed 1.5 per cent, France’s CAC 40 fell 1.9 per cent, while in London, the FTSE 100 edged lower by a more modest 0.4 per cent. In Asia, Japan’s Topix index closed down 2.5 per cent. MSCI’s pan-Asian index of stocks outside of Japan fell 1.2 per cent. Crude oil prices retreated, with Brent crude down 3.9 per cent to $54.99 a barrel at one point. It was the latest in a string of sell-offs that has left the international benchmark down almost 9 per cent for the week to date.

Betway launches multi bet promo aimed at rewarding stakers

nternational online sports betting platform, Betway, has announced the launch of a new promotion that will be rewarding stakers on its platform this festive season. Betway, the official partner and sponsor of the first ever Nigerian 5-a-side league, will be rewarding sports enthusiasts with mouth-watering bonuses in its Multi Bet Madness promo. Betway is giving customers the chance to supercharge their wagering with payout increases on all multi bets. For every multi

bet placed in December, Betway will give a payout increase on winnings depending on the number of bets in a bet slip. To participate in this promotion is easy, customers must place multi bets on any sport. The value of the increased payout is dependent on how many fixtures stakers have in a multi bet. The payout increase will be credited within 24 hours following the settlement of the qualifying multi bet. “This promotion is all about

rewarding Nigerian customers during the holiday season. Betway is committed to making customers happy and satisfied at all times and one way we can do that is by frequently rewarding our loyal customers with fantastic promos,” said Lere Awokoya, Betway country manager. Betway has been involved in many promotional activities since its entry into the Nigerian market and looks forward to introducing much more reward-based promotions in the future.

hina’s share of global output will fall over the next two decades, a leading consultancy is forecasting, upending the expectations of a generation that has only ever seen the Middle Kingdom rise inexorably in importance. The country will account for 17 per cent of global gross domestic product, measured on a purchasing power parity basis, by 2040, below its current 19 per cent weight, according to Neil Shearing, group chief economist at Capital Economics, having peaked at 20 per cent in the mid2020s, as the first chart shows. The projected small but noticeable reversal in China’s dramatic rise to prominence since it opened up to the world 40 years ago is largely driven by an expected 12 per cent decline in its working-age population by 2040, depicted in the second chart. “China’s working age population peaked in 2013 and employment will start to shrink before long, possibly as soon as this year, which will become an increasing headwind to economic growth,” said Mr Shearing. In combination with other structural headwinds — such as an over-investment boom that has bolstered growth in recent years but led to too many resources being pumped into relatively unproductive parts of the economy — this means that China’s sustainable growth rate will fall to just 2 per cent by the late 2020s, Mr Shearing forecast. Moreover, China’s rapidly ageing population, a result of its onechild policy, and its lack of private provision, means that, without reform, it is on course to spend 9.5 per cent of its GDP on pensions, a larger slice than in developed countries such as Japan, the UK and the US by 2050, as illustrated in the third chart, the consultancy calculates. China has made dramatic strides since 1980, when its share of the global economy was only 2.3 per cent in PPP terms, as seen in the fourth chart, but Mr Shearing saw this progress petering out. “We think China will fall off the path of rapid development laid down by the Asian growth stars of Japan, Korea and Taiwan,” he said. “Our forecasts suggest that China will remain much poorer than all the major advanced economies, with its GDP per capita staying around a third of that of the US.” Capital Economics’ analysis suggests a challenging future for many emerging market countries. While many economists and policymakers work on the assumption that, broadly, the developing world will gradually narrow the income gap with advanced economies thanks to faster growth in GDP per capita, the consultancy suggests that convergence will actually reverse over the next 20 years in some countries.

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ANALYSIS WhatsApp fails to curb sharing of child sex abuse videos Encryption poses dilemma for messaging service owned by Facebook Leila Abboud, Hannah Kuchler and Mehul Srivastava

V Passive attack: the story of a Wall Street revolution The explosive growth of index funds has changed markets. How far can they go? Robin Wigglesworth

very year, hordes of aspiring investors make the pilgrimage to Omaha, hoping to learn at the feet of Warren Buffett at Berkshire Hathaway’s annual meeting. But for more than two decades the Sage of Omaha has offered the same staid advice: just buy an index fund. In fact, earlier this year Buffett won a wager that a cheap index fund, which does nothing but track the US stock market would, over 10 years, thrash an elite crew of hedge funds picked by Protégé Partners, a Wall Street investment firm. Buffett hammered home his message in his latest annual letter to shareholders. “During the 10-year bet, the 200-plus hedge fund managers that were involved almost certainly made tens of thousands of buyand-sell decisions. Most of those managers undoubtedly thought hard about their decisions, each of which they believed would prove advantageous. In the process of investing, they studied 10-Ks [a company’s annual report], interviewed managements, read trade journals and conferred with Wall Street analysts,” he wrote. And yet, the nearly free, “dumb” index fund prevailed, returning 126 per cent over the decade, while the hedge funds made a more modest 36 per cent. Index funds are vehicles that simply attempt to mimic a market benchmark — whether the FTSE 100, the S&P 500 or developing country bonds — as cheaply as possible. Some are unmanaged mutual funds, others are exchange-traded funds (ETFs) that can be bought and sold throughout the day, just like any stock. While their genesis can be traced to the 1970s, the shift towards passive investing has been seismic since the financial crisis. The global index-tracking-fund industry now manages nearly $10tn, according to the Investment Company Institute — making it almost twice as big as the hedge fund and private equity industries combined. Index funds have revolutionised investing, saving millions of people untold billions of dollars in fees that would otherwise have gone to fund managers with a dismal long-term record of actually beating the market. It is no

exaggeration to say that the rise of passive investing is probably one of the most consequential financial inventions of the past halfcentury. It is rewiring markets and reshaping the finance industry. Yet some detractors say that index investing is an insidious disease. According to a critique by analysts at Bernstein, passive investing is “worse than Marxism”, because at least communists tried to allocate resources efficiently, while index funds just blindly invest according to an arbitrary benchmark’s formula. Paul Singer, a famed hedge fund manager, even argues index funds are “devouring capitalism”. Proponents laugh this off as scaremongering. “Whenever something goes bad, we now blame ETFs. But it is one of the greatest financial innovations of all time,” argues Deborah Fuhr of ETFGI, a prominent industry analyst, who believes index funds have become the “punching bag” that hedge funds used to be. The trend towards passive investing has profound implications for the finance industry, where an army of analysts and traders exist solely to help portfolio managers invest our money. As the novelist Gary Shteyngart observed to investment magazine Barron’s in September: “Everyone in New York who’s not a portfolio manager is just this little helper animal, and their existence is tied into the health of the greater animal. If the main animal perishes, the whole ecosystem goes.” Indeed, even some of the passive investment industry’s pioneers concede that its rampant growth raises important questions that need to be addressed. But how did this revolution spread, how is it changing markets, and how far can it go? To understand where we are going, it helps to understand where we came from. And for that, we need to wind the clock back half a century. The early rebellion John McQuown grew up on his family’s farm in rural Illinois, far from the bustle of Wall Street, and was the first in his family to get a higher education, graduating with a degree in mechanical engineering from Northwestern. After two years on a US Navy destroyer, McQuown took an MBA and, in 1961, started at Smith Barney, a storied Wall Street brokerage. Then, serendipity struck. At night and over weekends, McQuown and a friend moon-

lighted at a new company, renting a hulking 7094 IBM mainframe computer in the basement of the Time-Life building for $500 a shift to generate reams of esoteric stock market data. IBM, keen to show off the versatility of its machines, invited the young man with a big mop of hair to present his work at a conference in San Jose in 1964. One of the attendees was Ransom Cook, the chairman of Wells Fargo, at the time a venerable but sleepy regional bank of little consequence. Intrigued, he asked McQuown to lead a new research team dedicated to more analytical, rigorous investing. “His suspicion was that what they were doing wasn’t really leading to an improvement of investment management,” McQuown tells me. This was a heretical thought for anyone in the investment industry, but one that had been gaining ground. In 1940, a former stockbroker called Fred Schwed had published a book titled Where are the Customers’ Yachts?, an acerbic take on Wall Street that has since become a classic. By the 1950s there was fresh interest in measuring and analysing market performance, and in 1957 Standard & Poor’s launched the first computer-calculated stock index of America’s biggest companies, “a symbol of the beginning of the electronic era in finance”, according to Robert Shiller, the Nobel economics laureate. By the 1960s better data and more powerful computers led to the dawning realisation that most fund managers actually did a poor job — and people began to investigate why. “That’s when, in a sense, life begins,” says David Booth, the chairman of Dimensional Fund Advisors. “All of a sudden, computers are around, and a dozen landmark papers were coming out every year.” The University of Chicago and MIT were at the centre of this nascent financial-academic revolution. In 1965 Eugene Fama, the famed Chicago economist, first articulated his “efficient markets” hypothesis, which stipulated that securities fully reflect all known information, and the market cannot be beaten. But even for those who believe that markets are inefficient, there is a simple, inescapable mathematical truth: the market is made up of investors, so the average investor cannot do better than the market. For every one that beats it, someone else must fall short.

ideos and pictures of children being subjected to sexual abus e are b eing op enly shared on Facebook’s WhatsApp on a vast scale, w ith the encrypted messaging service failing to curb the problem despite banning thousands of accounts every day. The revelations emerged after Israeli researchers warned Facebook, the owner of WhatsApp, in September that it was easy to find and join group chats where — in some instances — up to 256 people were sharing sexual images and videos of children. These groups were monitored and documented for months by two charities in Israel dedicated to online safety, Netivei Reshet and Screensaverz. Their purpose was often obvious from names such as “cp” and from explicit photographs used on their profile photos. Such identifiers were not encrypted, and were publicly viewable so as to advertise the illegal content,

With the users of encrypted messaging services, such as WhatsApp, Apple’s iMessage, Telegram and Signal now numbering in the billions, political pressure has mounted in the US and UK for companies to grant access to criminal investigators. WhatsApp, which Facebook bought in 2014 for $22bn, finished rolling out end-to-end encryption for messages in 2016. As a result, even if Facebook wanted to, it could not apply the same tools it uses to remove illegal images and text from its main social networking site and the photosharing site Instagram, which it also owns. On those services, software automatically searches for keywords and images of nudity, pornography and violence. Facebook also employs 20,000 content moderators, often low-paid contractors, who review posts manually. By contrast, WhatsApp has only 300 employees in total, and far fewer resources dedicated to monitoring for illegal activity. Even so, Hany Farid, a professor of computer science at Berkeley who

Encryption on WhatsApp has meant that Facebook is having difficulty curbing the sharing of sexual images and videos of children © FT montage

yet systems that WhatsApp said it had in place failed to detect them. A review of the groups by the Financial Times quickly found several that were still extremely active this week, long after WhatsApp was warned about the problem by the researchers. “It is a disaster: this sort of material was once mostly found on the darknet, but now it’s on WhatsApp,” said Netivei Reshet’s Yona Pressburger, referring to the parts of the internet that are purposefully hidden from normal search engines and that criminals use to cloak their activities. A spokesman for WhatsApp said it “has a zero-tolerance policy around child sexual abuse” and “actively bans accounts suspected of sharing this vile content”. The messaging app also said it actively scanned WhatsApp group names and profile photos in an attempt to identify people sharing such illegal material. Such techniques led WhatsApp to ban approximately 130,000 accounts in the last 10 days, out of its user base of about 1.5bn. But the NGOs’ findings illustrate a bigger problem: WhatsApp’s end-to-end encryption, designed to protect privacy, means that the company cannot see the content of the messages users send, making it harder to monitor when child abuse imagery is shared. It can also hamper law enforcement from uncovering illegal activity.

developed the PhotoDNA system used by more than 150 companies to detect child abuse imagery online, said Facebook could do more to get rid of illegal content on WhatsApp. “Crimes against children are getting worse and worse, the kids are getting younger and younger and the acts are getting more violent. It’s all being fuelled by these platforms,” he said. “The problem is deep-rooted in these companies. It’s the ‘move fast and break things’ model.” Law enforcement officials have noted a change in how paedophiles are using technology to mask their activities. “We are seeing an uptick in the use of encrypted messaging apps on the offender side, and it poses significant issues for law enforcement in terms of traceability and visibility,” said Cathal Delaney, who leads the team combating online child sexual abuse at Europol. WhatsApp was at the centre of a 2017 child abuse investigation led by Spanish police dubbed Operation Tantalio that led to the arrest of 38 people in 15 countries. The investigation began in 2016 when Spanish investigators identified dozens of WhatsApp groups that were circulating child sexual exploitation materials. They then traced the mobile phone numbers used to identify individuals involved, as well as those suspected of producing the material.

Friday 21 December 2018

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BUSINESS DAY

Christmas: Vehicles, general cargoes, industrial chemicals, top imports at ports AMAKA ANAGOR-EWUZIE

ew days to this year’s Christmas and New Year celebrations, Nigerian importers and other businesses are now bringing in more used tokunbo vehicles, pharmaceutical products, manufactured finished and semi-finished goods and other general cargos to meet local demand. BusinessDay understands that petroleum products, industrial chemicals and raw materials for the onward production of fast moving consumer goods (FMCG) by lo-

Benin becomes fifth City with Taxify’ operations SEYI JOHN SALAU

ide-hailing service Taxify is expanding its Nigerian operations to its fifth town – Benin City. This continues Taxify’s recent expansion across Nigeria, following launches in Lagos, Abuja, Owerri and Ibadan. The ride hailing service said in June 2018 that it had completed an investment of about $175 million, and that it intended to use this investment to expand its services worldwide, particularly across Africa. “Adding a new city to our Nigerian network emphasises our continued focus on launching ride-hailing services in more towns and cities across the country, outside of the obvious main centres,” Uche Okafor, country manager for Taxify in Nigeria, says. Having started operations in Nigeria with its first city launched in November 2016 in Lagos, the ride-hailing service has grown exponentially year-on-year. Taxify will now operate in five cities across the country, and is available in more Nigerian urban centres than any other ride-hailing platform. “What this expansion means for us is that more riders can enjoy the safety and convenience of the service, but more importantly, more Nigerians have access to earning a decent living by joining the platform as drivers,” he adds. One of Taxify’s key success factors in its rapid expansion has been the fact that drivers utilising its platform receive 85 percent of all fares paid by riders - a significantly higher percentage than what drivers using other similar platforms receive. “We intend to expand our footprint even further in 2019, as we believe that all Nigerians can benefit from the convenience and costefficiency of ride-hailing,” Okafor says.

cal industrials are among the major divers of imports into the nation’s seaports. The rising volume of import, no doubt, was expected to meet the increase in demand for household consumables, food, electronics and other finished goods required for social events such as weddings and parties that take place during yuletide period. Also, the upbeat activities in port activities have resulted in an increased number of trucks visiting Apapa and TinCan Island ports daily, to take delivery of consignments. This is further aggravating Apapa’s much dreaded traffic gridlock.

Tony Anakebe, managing director of Gold-Link Investment Ltd, a Lagos based clearing and forwarding company, told our correspondent in an interview that there are so many vessels billed to call into Nigerian ports with consignments due to rush for people to bring in their goods for yuletide sales. Anakebe listed the goods that are coming into the port to include chemical products, pharmaceutical products owned by companies that are fully registered with the National Agency for Food and Drug Administration and Control (NAFDAC) and general cargoes including equip-

ment and vehicles. “There is rush now and goods coming in. Congestion is also building at the ports because the goods are not being cleared out of the ports as they should. The way Nigeria Customs Service (NCS) operates has changed. We understand that officers are now being summoned to Abuja on regular basis to answer queries on why they released some certain goods, and this development is giving the officers some measure of concern that is why the officers take their time to examine containers before releasing them,” Anakebe explained. According to Anakebe,

the Customs and other agencies in charge are not doing enough to properly manage the berthing of these ships at ports. The congestion in the port terminals has made way for some bonded terminals that have been empty in the third quarter of the year, to be receiving goods. “Due to Nigerian factor, the management of the movement of the containers and the clearance hiccups, which are manmade, delay containers in the ports. For instance, when importers and their agents book for examination, it takes two to three days before the container would be dropped for exami-

nation, and all these things are part of the delay that we are encountering in the port,” he added. The Nigerian Ports Authority (NPA) Shipping Position revealed that close to 40 oceangoing vessels with containerised cargoes, general cargoes, bulk liquid and dry cargo, petroleum products, frozen foods and many others are billed to call the port terminals in Lagos pilotage district alone. In addition, about 20 motor tankers and motor vessels were already awaiting Customs clearance to discharge their cargoes in the oil jetties situated in Lagos pilotage district.

56 BUSINESS DAY NEWS Trader-Moni not vote buying, approved by N/Assembly - Osinbajo HARRISON EDEH, Abuja

ice President Yemi Osinbajo has debunked allegations from various quarters that the ongoing Trader-Moni programme powered by the Federal Government and the Bank of Industry (BoI) to empower petty traders was another means of vote buying. Speaking after an inspection and demonstration of the Trader Moni command centre at the BoI office on Thursday in Abuja, Vice President Osinbajo stressed that there was no way the programme could have been set up primarily to secure votes as alleged, as it was approved by the National Assembly before its implementation across the country. “Anybody who calls Trader Moni vote buying is absurd, you can see it for yourself that this is a programme that has affected millions of lives. “In any case, it was approved by the Senate and the en-

tire National Assembly. If a programme is duly approved by the National Assembly and we are going out and implementing that programme and doing it as vigorously as possible, I don’t understand where anyone will get that kind of notion from, it is a very weird notion,” he said. He said further that so far over 1.5 million petty traders had benefitted from the programme, targeted at capturing at least 2 million traders before the end of the year, noting that it was the largest programme currently running in Africa. “Am very happy about the programme for the fact that it really does in essence what the President would want to do himself. He was chairman of something called the Katsina Foundation, giving very small traders N2,000 as loans from the Foundation. For him, this was very important and he felt that it could be replicated in a national scale,” he said. While noting that petty traders were the largest network in the commer-

cial value chain, he further revealed that Trader Moni was an offshoot and extension of President Muhammadu Buhari’s earlier project under the Katsina foundation, where petty traders were empowered with N2,000 to boost their businesses. “We intend to ensure that as many petty traders as possible gets into this programme. It is a very important programme for us and the single reason is that petty traders are the largest number of people in our commercial value chain, and we want to be able to touch them. “Nobody really wants to give petty traders loan; banks don’t want to give them loan so with the very innovative programme developed by the bank of industry, in association with the social investment programme by the Federal Government, we now have a huge opportunity to enrich a large number of petty traders in a systematic, credible and monitor-able way that we can monitor and evaluate what is going on; this is exciting.

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57 NEWS

BUSINESS DAY

Kwara Polytechnic begins production of gas, diesel Delta urged to implement Maputo Declaration on agriculture SIKIRAT SHEHU, Ilorin

wara State government owned polytechnic located in Ilorin, the state capital, has begun work on gas production and other valuable commodities for domestic and industrial uses. This is consequent upon intense research and innovation by the polytechnic towards tackling challenges Nigerians face in getting these essential products. Mas’ud Elelu, Rector of the Polytechnic, who made this known at the 25th convocation ceremony, noted that the gesture was aimed at easing accessibility to daily needs for households with the aim of developing the state and the country at large. The Rector said the polytechnic was able to access research fund fully from the

Tertiary Education Trust Fund (TETFund), saying, “Indeed, the polytechnic has tried its best within the available resources to keep the institution in full stream. “On our campus, we have Paralysis Oil Plant for generating gas, diesel to power generator and produces kerosene as well. The remnants from the plant can be used further for the production of shoe polish and toner for printer. “Also, Biomass Dryer the device used for drying of fruits and vegetables by utilising agricultural wastes as heat source. “There is also the incubator specially fabricated for hatching eggs as well as Briquette Machine, which produces briquette that helps rural dwellers to ignite fire. The machine uses different farm wastes as input

and different shapes of briquettes as output. Briquette stove has been fabricated as well; instead of kerosene, briquette fires the stove for domestic use. “We are excited about these innovations as it promises to help in tackling some challenges Nigerians have in the supply of these products which are so vital for domestic and industrial usage,” he explained. Other machines fabricated include Fixed Cold Storage for food and vegetables storage, Mobile Cold Storage, Evaporating Cooling system, and Pando Yam Machine. The Rector, however, enjoined the graduands to explore their technical handson for economic gain and be self-reliant towards contributing meaningfully to the economic development of the nation.

FRANCIS SADHERE, Warri

takeholders in the agricultural sector have urged the Delta State government to implement the Maputo Declaration on agriculture, which recommended that 10 percent of national budget be allocated to agriculture. This demand formed part of a communiqué issued during a day stakeholders consultative meeting organised by Environmental and Rural Mediation Centre (ENVIRUMEDIC) in collaboration with the Budget Committee Group (BCG) and support from ActionAid Nigeria (AAN). The stakeholders lamented that budgetary allocation to agriculture in Delta State had been in a

“lukewarm progressive ascending of 0.59, 0.63 and 0.90 for 2016, 2017 and 2018, respectively.” They advocated for increased allocation to agriculture in a bid to comply with the Maputo Declaration of 10 percent allocation to agriculture annually. While noting that majority of farmers in the state were smallholder women farmers, the stakeholders stressed that they should be recognised in the state’s annual budgeting for agriculture. The stakeholders also recommended a re-introduction of Mobilisation of Rural Women for Sustainable Agriculture (MORWSA) in the budget, for gender sensitivity. “Allocate funds for Agriculture should be released

accordingly and as at when due. Extension services and Women in Agriculture should be a sub-heading under the Agricultural Development Programme (ADP) in the budget,” the communiqué reads. “Mobilisation of Rural Women for Sustainable Agriculture, MORWOSA was not cited in the 2018 budget as a budget line item. “It is a known fact that if women are empowered the entire nation is equally empowered. Allocation to agriculture has never met the Maputo declaration of 10% from 2013 – 2018. “Youth Agriculture Enterprise Programme of the Delta State Government did not fall into any budget line item to ascertain how much was committed to it in the 2018 budget,” the communiqué read further.

FCT IGR hits N65bn in 2018, targets N130bn in 2019

L-R: Danny Kioupouroglou, general manager, Eko Hotel & Suites; Emmanuel Oriakhi, marketing director, Nigerian Breweries Plc, and Felix Awogu, general manager, Super Sport West Africa, at the Wizkid VIP Experience sponsored by Star Lager in Lagos.

JAMES KWEN, Abuja

ederal Capital Territory (FCT) internally generated revenue (IGR) hits N65 billion in 2018. The Federal Capital Territory Internal Revenue Services (FCT-IRS) generated N59 billion at the end November while it was expecting to get between N5 billion and N6 billion at the end of December. Abdullahi Attah, executive chairman, FCT-IRS, made this known Thursday, while briefing journalists in Abuja where he said the agency was targeting N130 billion in 2019.

Attah said the 2019 target could be achieved as the Federal Inland Revenue Service (FIRS) was giving FCT-IRS eight of its offices and 117 staff for the purpose of taking over all the past records and for the purpose of seamless transition. He explained that before the establishment of FCT-IRS, FIRS had been the tax authority for the FCT and the need to achieve systematic and seamless takeover of the mandate for the administration of Personal Income Tax, FCT-IRS commenced a transition with FIRS in September this year.

Returnee passenger attacks immigration officials at Lagos airport Edo, ICE Commercial Power partner on sustainable energy for PHCs IFEOMA OKEKE

passenger aboard Turkish Airlines, Tony Lucky, last Friday violently attacked officials of the Nigeria Immigration Service (NIS) attached to the Murtala Muhammed International Airport (MMIA), Lagos, over his profiling by the officials. Lucky, who was allegedly drunk, had come into the country from Italy on December 14, 2018, without international passport, which is against aviation standards. A source close to the scene of the incident confided in our correspondent that officials of immigration said Lucky bluntly refused to be profiled by the officials and went berserk by attacking them when they insisted on following the required standards. Lucky had flown into the country without an international passport, but was in

possession of Emergency Travel Certificate (ETC), which is usually issued to citizens without international passport by embassies. It is required that any passenger who enters into the country with such certificate must have his or her five fingers captured, but Lucky refused to follow the protocol and refused to be captured by the officials. The ETC is meant to be submitted to the immigration after profiling. In the cause of the milieu, Lucky attacked all the officials present and refused to supply his finger prints until he was eventually overpowered by security details at the airport. When he was taken to the duty room, he apologised for his misconduct and wrote an apology letter. In the apology letter, he confessed that he misunderstood the workings of immigration and was rude to them.

He also promised to be of good conduct in the future. The source said: “His names on the ETC is Tony Lucky. He arrived aboard Turkish Airline on Friday, December 14, 2018. In the course of immigration profiling, he became violent insisting that he has no reason to be asked questions about his details. “He had no passport on him and was not ready to answer any question about the passport or give information about himself. “When he was told that it is compulsory that he supply his detailed information and also live his finger prints on the back of the ETC, he became violent and tried to force his way out in order to evade immigration clearance. In the process, he landed a punch on one of my officers (ACII D. MAMMAN), which led to mouth bleeding. He virtually assaulted everyone that came

n line with Governor Godwin Obaseki’s drive to make quality and affordable healthcare accessible in rural areas, the Edo State government has partnered ICE Commercial Power to deliver clean and reliable energy solution to 20 Primary Healthcare Centres (PHCs) under the Edo Healthcare Improvement Programme (Edo-HIP). In a statement, cofounder, ICE Commercial Power, Emmanuel Ekwueme, says the partnership is geared at delivering Governor Obaseki’s promise to revamp primary healthcare in the state. Ekwueme said the first stage of the programme with the state government is the transition of 20 PHCs across the state to clean, reliable energy with the deployment of 164KVA total solar power for each facility’s operations and

water supply. According to Ekwueme, “ICE Commercial Power, in partnership with the Edo State Ministry of Health, is deploying solar energy in 20 pilot PHCs in the state. “This is part of Governor Obaseki’s Healthcare Improvement Programme (HIP). The initiative will see the transition to clean, reliable energy in these first 20 PHCs. The first phase of the programme will see the deployment of 164 KVA total solar energy to power each PHC with critical electrical supply for operations and water supply.” The second phase of the programme, according to him, “will see the deployment of solar power under a sustainable pay-as-yougo model for 180 PHCs in the state. The HIP is part of a set of healthcare reforms in the state, along with the

Health Insurance Scheme, which will ensure that residents have better access to quality, universal health coverage.” Explaining the rationale for the deployment of solar energy, senior special assistant to Governor Obaseki on Human Resource, Paul Okungbowa, says the government is intent on deploying innovative solutions in solving challenges. According to Okungbowa, “We are working with ICE Commercial Power on the solar power at the PHCs because it is a sustainable option if we intend to realise the vision of repositioning the PHCs for optimal service delivery. Ours is a plan that ensures that the infrastructure needed to support affordable healthcare is guaranteed even as we prepare for the take-off of the Health Insurance Scheme.”

BUSINESS DAY

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Friday 21 December 2018

2019: Accord Party Adopts Agbaje …As 20,000 APC members joins party bers of the APC had the interest of Lagos at heart and were determined to wrestle it from the hand of an individual who believed that the state was his personal property. According to him, you are all aware of what happened in the last APC primary elections in the State, where one man felt that without him no one will rule Lagos State. We want to show him that he is no longer a grassroots man. “Look at what he did to an incumbent Governor Ambode. They said he was not a party man, but he was a party man in 2015”. He added. Ajayi further said that the plan of the party was to defeat APC and demonstrated the condition of APC in Lagos and 35 States of the federation when he took a broom, which is the symbol of the party, broke it into pieces and tore the flag of the party to connote the demise of the party. The Accord party gubernatorial candidate in the state, Sunday Ajose,

Iniobong Iwok

Agbaje

Pressure mounts on INEC, court to disqualify Abiodun as Ogun APC guber candidate RAZAQ AYINLA

arely 72 hours that Inter Party Advisory Council (IPAC) protested against Dapo Abiodun, governorship candidate of All Progressives Congress (APC) in Ogun State over alleged perjury as regards his academic qualifications, another legal case has been filed before Federal High Court sitting in Abeokuta, seeking the disqualification of Abiodun on ground of false declaration on oath under section 182, sub-section (1) (J) of Constitution of the Federal Republic 1999. Recall that the Ogun State chapter of an advisory council of political parties, Inter-Party Advisory Council (IPAC) on Monday gave Dapo Abiodun 48 hours to explain an alleged perjury and forgery as regards his educational qualifications, saying failure to give satisfactory explanation would force the council to file legal suit for his disqualification as governorship candidate of APC. IPAC through its Chairman Abayomi Arabambi, alleged that Abiodun

claimed to have graduated from both University of Ife now Obafemi Awolowo University, Ile-Ife and Kennesaw State University, Atlanta, Georgia, United State of America in 1986 and 1998, respectively and filled in that when he was contesting for Ogun East Senatorial seat in 2015. Abayomi added that Abiodun submitted to the Independent National Electoral Commission (INEC), a certificate of West African School Examinations in his form Cf 001 for governorship election in 2019 on the platform of the All Progressives Congress (APC) as against two degrees he submitted in 2015 when he stood for election in Ogun East Senatorial District, saying Abiodun is not qualified to be fielded as APC governorship candidate based on false declaration on oath. In a legal suit filed before Federal High Court sitting in Abeokuta on Thursday by some APC members in Ogun state, including Bolanle Adisa Adeyemi, Jide Salau and Taiwo Jimoh, first, second and third plaintiffs against INEC, APC and Dapo Abiodun as first, second and third defendants, the trio of Adeyemi, Salau and

Jimoh sought disqualification of Dapo Abiodun, Ogun APC governorship candidate on ground of false declaration on oath contrary to Section 182, Sub-section (1)(J) of the Constitution of the Federal Republic of Nigeria. In the Suit No. FHC/CS/151/2018 seeking an order disqualifying Dapo Abiodun on ground of having made false declarations on oath contrary to section 182(1)(J) of 1999 Constitution, Section 31(2), (5), and (6) of the Electoral Act and Section13 of the NYSC Act in which Dapo Abiodun claimed to have had two degrees in 2015 for Senatorial election and West African School Certificate for 2019 governorship election. In the suit filed on behalf of the Plaintiffs by Yemi Oke of MJS Partners, the Plaintiffs sought five other reliefs including an order nullifying the nomination and/or eventual election (and any Certificate of Return issued in favour) of Dapo Abiodun, in case he wins the Governorship election scheduled for March 2, 2019 and issuing fresh Certificate of Return in favour of Adekunle Akinlade, being the authentic candidate of the APC (2nd Defendant in the suit).

who stepped down for Agbaje, stated that he took the decision because he observed that Agbaje had a better capacity to deliver Lagos State from APC stronghold and make Lagos better for all of them. Speaking at the event, Agbaje, applauded the decision of Ajose to step for him, describing it as a sign of his large heart, while stressing that his victory was not going to be for him alone but for PDP and for all Lagosians. “It takes a man of character to have got an office and accept that there is a bigger picture, and agrees to step down for somebody he feels has a better chance”. A board of trustee (BOT) member of Accord Party, Adebayo Adeniyi, expressed delight that Lagosians were now understanding that their freedom was necessary, wondering why a particular party powered by one man would hold a the state to ransom for about two decades with nothing to show for it.

Budget: Reactions trail NASS booing of Buhari as APC condemns NASS igerians have continued to react differently to the booing of President Muhammadu Buhari Wednesday by members of the National Assembly during the presentation of the N8.8 trillion 2019 budget proposal. Some members of the joint session of National Assembly believed to be of the main opposition People’s Democratic Party, PDP objected with noooo! exclamation when President Buhari was recounting the performance of the 2018 Budget, pointing out achievements recorded. Buhari, who was visibly angry reminded the legislators that, “the world is watching us. We are supposed to be above this”. But stakeholders in their various reactions either commended or condemned the action of the senators and members of the House of Representatives. Idayat Hassan, director, Centre for Democracy and Development, said: “It is not so surprising that he was booed since report claims the opposition legislators planned a protest against the president. It is unfortunate

that in the last 19 years of democracy, this is one of the most fractitious relation witnessed between the legislature and executive. “And importantly none of these two arms of government is innocent; they are both culpable. Our elected representatives should never forget the world is watching them and that means us, and they should refrain from embarrassing us in the global community”, Idayat said. Femi Fani-Kayode, former Minister of Aviation on his part commended the lawmakers for “putting the President in his place”. Fani-Kayode said: “I commend the members of NASS for standing up to the tyrant today and putting him in his place. It is a sign of things to come. My advice to Buhari, Jubril or whatever your name is: resign before you are disgraced out of office”. Shehu Sani, senator Representing Kaduna Central, stated that, “the Budget Presentation was a theater of the absurd; one side of the opera occupied by the oleaginous and obsequious choristers craving for the attention of Mr President, cheering even a sip of water;And the other occupied by unruly bands of impudent hecklers & discourteous objectors”.

group, Akin Fasae. Fasae, who spoke on behalf of the group, described the Reuben Fasoranti group as usurpers. According to him, “We decided to host the whole Yoruba land in Ibadan on January 29 next year. It is to proclaim support of the Yoruba land for President Muhammadu Buhari come 2019. And also to tell the whole world that the Afenifere

that Baba Awolowo created before he left is still intact. “The Afenifere is a progressive movement and any Afenifere who is not a progressive is not Afenifere. The Afenifere that Baba Awolowo created is still intact and we are going to support President Muhammadu Buhari and Professor Yemi Osinbajo in the presidential election come February 2019”.

James Kwen, Abuja

2019: Another Afenifere faction adopts Buhari, Osinbajo Akinremi Feyisipo, Ibadan

Yoruba socio-cultural group, Afenifere has yesterday endorsed the candidature of President Muhammadu Buhari as its presidential candidate ahead of the 2019 general election. But another group led by Rueben

Fasoranti had told journalists in September that the group will support the candidature of former Vice President, Atiku Abubakar. The group led by Senator Ayo Fasanmi on Thursday said that President Muhammadu Buhari has performed well, hence he deserved another term in office and will do the endorsement on Tuesday 29th January 2019.

The Senator Ayo Fasanmi-led Afenifere after its meeting in Ibadan told journalists that it will on Tuesday January 29 formally declare its support for Buhari and his Vice, Professor Yemi Osinbajo. Leaders of the group at the Ibadan meeting included Ayo Fasanmi, former governor of Oyo State, Omololu Olunloyo, Biyi Durojaye and Chairman of Ekiti State chapter of the

Friday 21 December 2018

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BUSINESS DAY

ACPN’s pledge to broaden NHIS shows understanding of health sector problem IFEANYI JOHN

biageli Ezekweseli, presidential candidate of the Allied Congress Party of Nigeria (ACPN), in her ‘Project Rescue Nigeria: The Manifesto’ shows a concise understanding of a major problem of the National Health Insurance Scheme (NHIS) and pledged to tackle it if she is elected in 2019. In a 48-page document detailing her proposed programme for Nigeria, Ezekwesili says, “Our government will broaden the National Health Insurance Scheme (NHIS) to ensure universal coverage in a decade. Every Nigerian will be migrated in the system, starting with those currently earning income.” The objective of the NHIS is to ensure that every Nigerian has access to good health care service, to protect families from the financial hardship of huge medical bills, to limit the rise in the cost of healthcare services and to ensure

Obiageli Ezekweseli

equitable distribution of health care costs among different income groups. Despite the efforts of stakeholders in attaining these objectives,

the coverage of the NHIS has struggled to take off with coverage numbers ranging from five to 10 percent of the entire population. Industry specialists continue to

Why govt needs to channel agric interventions to mechanisation, by PwC Temitayo Ayetoto

espite being a year that witnessed increase in financial interventions to Nigeria’s farming community through the Anchor Borrowers Programme (ABP), there hasn’t been a significant focus on bridging the mechanisation gap in agricultural processes, Taiwo Oyaniran, an associate director at PricewaterhouseCoopers (PwC), says. The country’s mechanisation rate has been stagnant around 0.3 hp/ha compared to 2.6 or 8 in India or China while the number of tractors in the country hovers over an estimated 22 million. Ramping up local production capacity has largely been hinged on expansion of cultivated areas, aiding a decline in the sector’s growth to 1.91 percent, from 3.07 percent in Q3’17. But Oyaniran sees better results being achieved in terms of raising productivity, paring post-harvest losses, and scaling up farmer’s income through import substitution with mechanisation. Government, he says, has to find effective mechanisms to incentivise mechanisa-

tion for investors locally if Nigeria must lead a revolution against food importation. “The government has to be able to say to investors that if you continue in business, you have my back and guarantee that you would be able to sell 1,000 of your tractors in a year. If an investor comes into that business and doesn’t sell more than five hundred, he knows that he has something with the government. Those kinds of arrangement can make people to commit their investment,” Oyaniran explains. Speaking on discouraging industrial demand for agricultural produce while local harvest rot owing to lack of off-taking and uncompetitive pricing, the associate director canvassed for an enabling environment that reduces cost of production both for fixed overhead and indirect overhead costs, noting that issues around logistics and storage need to be addressed to limit impact on the unit cost of produce in Nigeria. Although the tomato market currently appears a win-win for both consumers and producers, Sanni Yadakwari, secretary of Tomato Growers Association of Nigeria, says the industry continued to lose

demand to importation as major processors were inoperative. Tomato and tomato paste are among the 41 items banned by Central bank of Nigeria from accessing foreign exchange but available data indicate industrial users still import tomato concentrates for processing. With production scale of 2.3 million tonnes as of 2016, Nigeria the 14th and 2nd largest producer in the world and Africa respectively. Processed tomato serves as an alternative to preservation and has been a major export commodity from the US, Italy and China into Nigeria. Commercial users find it cheaper than processing local tomato fruits. To minimise the trend, Oyaniran suggests that investors be encouraged to embark on backward integration. “It means that some things in the value chain need to change and one of it is, how do we preserve tomato output from the farmers up on to the manufacturing line and is converted to paste? The industrial users need to find a way of doing a bit of backward integration around making investments in large tomato plantation to feed their production,” he suggests.

appeal to the Federal Government to enforce laws adequately to enable access of the remaining 90 percent uncovered Nigerians into the scheme. “The population of citizens that are not enrolled in NHIS is an investment opportunity to anyone who has the assurance of a genuinely ordered policy by the Federal government to improve the health sector through insurance,” an industry expert says. “We can pull foreign investments into HMOs by having clear policy directions on where the country is headed in terms of our health sector. Businessmen do not need to be told about a great opportunity. Foreign direct investments will flow into the sector once there is an enabling environment,” the expert adds. On drawing investments into the country, the ACPN manifesto mentions that, “We will also attract at least three top-quality global health providers to be linked with the Nigerian Health Insurance Scheme in each sub-region.”

The general health sector policy objective in the manifesto was directed at reducing infant and maternal mortality and reducing medical tourism. “The central plank of our health agenda is to build a functional health system that serves the needs of different segments of our population. The specific objectives include: to reverse and significantly reduce by 50 percent the negative trend of maternal and infant mortality rate as well as needless deaths caused by non-communicable diseases while also reducing the trend of medical tourism,” the ACPN manifesto says. The National Health Insurance Scheme was set up under Act 35 of 1999 Constitution by the Federal government with the aim of improving the health of all Nigerians and ensure that affordable health care was available to all, irrespective of class, gender or social status. It came into operation in 2005 during the second term of President Obasanjo’s democratic rule.

FG must devolve powers to federation units—Don SIKIRAT SHEHU, Ilorin

unzali Jibril, emeritus professor, pro-chancellor and chairman of the council, AlHikmah University, has said that Nigeria needs devolution of powers, responsibilities and resources from the centre to the federation units Jibril also said that restructuring Nigeria will take the country fifty years back, stressing that the country must restore accountability and good governance to the system for sustainable development of the nation. Jibril, while delivering his lecture of 8th convocation ceremony of AlHikmah University, Ilorin, spoke on the topic, ‘To Re- Structure or Not To Re- Structure Nigeria: That Is The Question.’ According to the convocation lecturer, the confusion in the restructuring debate arises out of the assumption on the part of the protagonists that a return to regional structure automatically includes a return to less centralised federation where the federal units have more autonomy. “But the truth is that there is a world of difference between the

regional structure and over centralisation. “In this, there should be no holds barred and we can accommodate the whole range of demands from state police to restore control. As a corollary to the envisage reform, we must restore accountability and good governance. This can be achieved without restructuring Nigeria into six or more geopolitical region s which would only take us fifty years back,” he said. While expressing surprise at which Nigerian elite seem less concerned about more critical issues such as accountability than they are with restructuring, he said, “We may return to all the lofty ideals of First Republic, such as fiscal federation and the derivation principle but without restoring accountability and good governance, we would simply lead to enriching a few individuals and improvising our communities. “Our overall governance score is 49. 9 and our rank is 33rd out of 54 African countries. We recorded only a modest improvement of 2.8 between 2008 and 2017. Our score on transparency and accountability is 34.5 and our rank is 30 out of 54. Accountability is very low in Nigeria.”

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Opinion Restructuring for nation building and development (Part 2)

n 30 November in this column we reflected on the imperatives of restructuring and the pre-conditions that we believe to be essential for successful federations. Today we conclude our reflections by considering the way forward. The Constitution of Weimar Germany in the 1920s has been considered by jurists to have been one of the best constitutional documents ever written. And yet it failed. The 1999 Nigerian constitution was designed and handed-over to us by a military dictatorship without the full consent of “We, the people”. By that fact alone, it lacks political as well as moral legitimacy. That document is replete with jurisprudential mischief and widespread gerrymandering of the structure of our federation in such a manner that favours some while short-changing others. It has also compromised the secular character of our constitutional government. I happen to believe that the 2014 Political Conference was one of the most successful episodes in democratic consultations that we have ever had as a country. The conclusions of the confab provide the basic framework for more constructive dialogue on future constitutional re-engineering and restructuring of our federation. We believe that holding a similar exercise will amount to a waste of public funds. What the government needs to do at this point is to release the report and develop

a White Paper out of it as a basis for further action. After the report and What Paper would have been released, the federal government should create an enabling law for a constituent assembly to design a new constitution for our country. We believe that the current six geopolitical zones, which have no basis in law but exist merely as convention, should be expanded to twelve regions. Among the regions that will need to be created, we demand two regions within the North Central area comprising Western Central Region and Eastern Central Region. The states or sections that would comprise the new regions will include the 6 existing states of the North Central Zone in addition to Southern Borno, Southern Kebbi, Southern Kaduna and parts of Adamawa, Taraba and Gombe. We envisage a two-tier federation in which the federating units will be the 8 regions, each governed by an elected Governor-General. Within the regions there will be provinces with elected Provincial Administrators. Each province will be free to create its own municipal councils with Municipal Administrators and part-time councils. We envisage regions that shall be economically and financially viable; able to meet their basic obligations in terms of operating an elected government and professional civil service. We advocate for a system of regional police with powers under the Governors-General

to provide security for lives and properties of each of the federating regions and provinces. The bulk of the natural resources of each region shall belong to the region. A sharing formula will be worked out such that the central federal government does have some share of the revenues accruable from those natural resources. But the bulk will belong to the regions and states. The definition of “natural resources” must also include hydro-electrical resources such as Kainji, Shiroro, Kurra Falls and Mambila Falls. At the national level, we advocate return to the parliamentary system, with a Prime Minister who shall be the executive head of government as well as Commander-in-Chief. We also advocate for an elected President who will serve as head of

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The presidential system confers frightening powers on President and Governors. Only those who fear God will exercise power with restraint and justice. The system, as it is, must be reformed. I am persuaded that we need a decentralised parliamentary federation

, HumanAngle

FEMI OLUGBILE Physician, psycho-profiler and essayist

n Monday, 17thDecember 2018, the great and the good of Lagos society assembled to celebrate the life of Chief J.K. Randle, Lisa of Lagos, scion of the distinguished Randle family, and one of the pillars of old Lagos. He had died on 17thDecember 1956, at the age of forty-seven years. In the afternoon, there was a service at the Cathedral Church of Christ, Marina. A party would follow in the evening. Growing up in the mainland, you had a cousin who came to spend the Christmas holidays. He told stories of his adventures and escapades. To you on the mainland, where nothing ever seemed to happen, his stories were like tales from another planet. Going to swim after school at JK Randle swimming pool at Onikan. Sometimes he would not go to school at all and spend the day swimming. And sometimes he would sit in the Love Garden and watch the shenanigans of older boys and girls doing what you all vaguely understood then as ‘romance’. The Thanksgiving Service and the party on this day were not really about Dr J.K. Randle, who bequeathed the swimming pool, along with great many other things, to the good people of Lagos. But it was a good place to start the story of three JK Randles, which was interwoven with the history of Lagos.

state and symbol of the country. We believe that the spring and fountain of participatory democracy must be founded on a vibrant parliament. Our parliament as a political institution has been the weakest link within the three arms of government. This is because throughout the long night of military dictatorship in our country, both the executive and the judiciary continued to function. It was always the parliament that was the casualty in every military coup d’état. As a consequence the institution of parliament has tended to be the weakest link in our political system. In the restructuring that we desire, we advocate for a popularly elected full-time unicameral legislature at the federal level. At the level of regional government we also advocate the creation of a popularly elected full-time unicameral legislature. At the level of state and local governments, however, we recommend the creation of popularly elected part-time legislative assemblies. Whereas in the former, the full-time legislators will subsist on a salary, the part-time legislators at state and municipal levels will only receive sitting allowances. With regards to the judiciary, we believe that the common law tradition inherited from the British has served our country rather well. It is a corpus of living law rooted in equity and justice and also capable of development through organic evolution to meet the needs of changing times. I am a believer in the inherent fairness of the British

common law tradition with its commitments to equity, natural justice and good conscience. The British, in their wisdom often applied the “repugnancy test” to all legal tenets that were alien to the common law tradition. A multiplicity of often conflicting legal systems is a recipe for confusion, if not disaster. For the sake of good public administration and sound civil government, it is always recommended that a country that aspires to a civilised status among the nations must possess one legal system and one corpus of laws that embodies its legal tradition. Throughout the long history of constitutional development in Nigeria, our people were openly and actively involved in the process. Even in colonial times, the succession of constitutional developments from the Clifford Constitution of 1922, to the Richards Constitution 1946, Macpherson Constitution 1951 and Lyttleton Constitution 1954 involved some level of consultation with Nigerians. Indeed, the 1979 constitution, with all its defects, was based largely on the will of the people. The 1999 constitution marks a major departure from the letter and spirit of constitutional consultation. This is why, ab initio, it does not reflect the will of the majority of Nigerians and is therefore of limited moral and political legitimacy. Going forward, we demand, that, in the design of a successor constitutional settlement, a committee of “wise men and women,” made of jurists and

time he was displeased at the fact that he, as a Lagos indigene and a black man, was paid only about half of the salary of his European colleagues in government service. Despite the snide, even racist remarks of the then Governor of Lagos, Gilbert Thomas Carter (yes, of ‘Carter Bridge’ fame) about the inferior aptitude of ‘native doctors’, he withdrew his resignation after

agitation against the proposal by Governor Frederick Lugard (yes, that man!) to declare all land to be the property of government. Eventually government dropped the proposal, due to the strength of the opposition. Another battle involved the introduction by Lugard (that man again!) in 1915 of a water rate to be paid by Lagosians. Lugard was furious at the People’s Union for their initial opposition to the move and accused them of ‘sedition’. Eventually the PU softened their opposition, only insisting that the rate should not be ‘exorbitant’. When Herbert Macaulay founded the Nigerian National Democratic Party (NNDP) in 1922 and there were elections in Lagos in 1923, the People’s Union was revived under the doctor’s leadership, but its candidate, Obasa, lost the election. Ideological divisions were already crystallizing between the NNDP, who favoured radical reform, and the People’s Union, who also wanted reform but were somewhat more conservative. Dr JK Randle, generous, strongwilled, never afraid to say what was on his mind, died on 27 February 1928. The second JK Randle in this story – Chief Joseph Kosoniola Randle was born in Lagos on July 28, 1909. He attended CMS Grammar School and Kings College, Lagos. He played football and cricket at school. His father - the doctor, died when he was in Kings College, and he could not attend university because his father’s fortune was tied up in his philanthropic activities. He became a businessman and a prominent figure in Lagos society. He was a founding member of Island Club and was made Lisa of Lagos by Oba Adeniji Adele. He greatly supported sports development. He was chairman

A story of three J.K. Randles John K Randle was born in Regent, Sierra Leone on 1stFebruary 1855. The town was a settlement for liberated slaves from different parts of Africa. His father was originally

an indigene of a village in Oyo, and he would later move to Lagos to set up a successful business in men’s clothing. Randle began his education at a Missionary School in Regent, and later attended a Grammar School run by the CMS in Freetown. In 1874, he became a ‘dispenser’ at the Colonial Hospital. In 1884, he travelled to Edinburgh, Scotland to commence training at the University of Edinburgh Medical School.

He graduated with distinction in 1888 and returned to Lagos. In 1889, he took a job as an Assistant Colonial Surgeon at the Lagos Colonial Hospital. Almost straight-off he commenced a lucrative private practice on the side, treating both local citizens and expatriates. The story of his marriage, one year after commencing his new job, adds fresh mystique to the Randle family story. His wife was Victoria Matilda Davies, whose mother was Sara Forbes Bonetta. Sara was a young Yoruba girl who had been taken as a slave and had come to the attention of Queen Victoria. Enchanted by her charm and brilliance, Queen Victoria had adopted the slave girl and arranged to have her educated at her own expense. When she subsequently got married – to a wealthy trader named James Pinson Labulo Davies, and had the child Matilda Davies, Queen Victoria was the baby’s godmother and gave her the name Victoria, with an allowance of forty pounds for life as well as a gold christening set. That was not the end. When eventually Matilda got married to her beau, the dashing Dr JK Randle, in 1890, the queen donated the material for the bride’s wedding gown. But back to Dr JK himself. Over

obtaining a salary increase. Three years later, he was out of the government service anyway, dismissed for refusal to take duty sessions in Ijebu Ode where the government had a military outpost. He flowered from then on, going into full time private practice and becoming a man of great means well known all over Lagos. In 1908, along with Dr Orisadipe Obasa, he founded the People’s Union, the first major political association in Nigeria. Significant members of the People’s Union included Sir Kitoye Ajasa, Dr Richard Akinwande Savage, and Sir Adeyemo Alakija. One major struggle the People’s Union got involved in was

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It was around Bashorun Randle and the rest of the family that Lagos society were gathered to celebrate on this day, and in style and substance it was really a celebration of JK Randle the Doctor, and his son the Lisa, and his own son, the Bashorun

THE NEW WEALTH OF NATIONS

OBADIAH MAILAFIA Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only) scholars of the highest intellect, will develop a White Paper out of the report of the 2014 political conference. They will also undertake broad consultations throughout all the sections of Nigeria to distil the essential elements of a broad national consensus on the way forward. The next process will be for a Constituent Assembly, drawn from a broad cross section of our country, to work together on drafting a new constitution based on the broad elements provided by the committee of wise men and women. Continues online at www. businessdayonline.com of the Lagos Race club and Vice President of the Nigerian Olympic and British Empire and Commonwealth Games Association.He was Chef de Mission of the Nigerian Olympic team to the 1956 Summer Olympics and was awarded the medal of the Victorian Order. Sadly, he took ill on the flight back from Melbourne and died at the General Hospital, Lagos on 17thDecember 1956. Finally, at this anniversary and celebration, it was impossible to leave out the chief celebrant, Bashorun JK Randle, eminent chartered accountant, former Chairman KPMG Nigeria, and a man of many parts. Seventy-four years old, but still ebullient and engaging as ever. It was around Bashorun Randle and the rest of the family that Lagos society were gathered to celebrate on this day, and in style and substance it was really a celebration of JK Randle the Doctor, and his son the Lisa, and his own son, the Bashorun. After the church service, the celebrants retired to the expansive grounds of the Randle mansion on King Ologunkutere Street in Parkview estate. King Sunny Ade was on the bandstand. The food was good, and the company excellent. Bashorun shook a leg on the podium, before KSA, and friends and family joined him. As KSA began to run down his long list of celebrities present, singing familiar songs a whole generation had listened to all their lives, there was a faint whiff of nostalgia in the air. Juju Music itself, embodied by KSA and Ebenezer Obey was dying out, and there was no succession in sight. Old and young lapped up the music happily, swaying in their seats, as if by doing so they could cling to a culture that was fast vanishing before their eyes.

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