BusinessDay 24 Jan 2020

In Davos, Okonjo-Iweala says Africa must invest in its youth to harvest the dividend that the debt to GDP ratio in Africa is moving a little bit too high and heading to the territory that is uncomfortable.

She spoke with BusinessDay on the side-lines of the World Economic Forum (WEF) in Davos amid frequent greetings from her many admirers, including Ivanka Trump, the stall daughter of the US president who walked to her and gave a warm hug and

Frank Aigbogun, Davos

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ormer Nigeria’s Finance Minister Ngozi Okonjo Iweala says Africa can reap a tremendous dividend from its youth bulge if governments in the continent will make the right investment in their youths to make them more productive.

The former minister states

a kiss on the cheek.

Iweala called Africa’s youth a significant impetus but also warned that it works two ways.

According to the well-respected former World Bank managing director, “Our youths are technologically savvy, 40 percent of them are on the internet compared to 13 percent of the rest of the population. So, they are really out there. If we invest

in them they can create jobs for themselves and for others. But on the other hand, if we do not do that then we are going to experience tremendous stress and dislocation, and so I think it cuts on both sides.

“I believe that on the positive side, we should focus on them; ask ourselves now what Continues on page 39

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Modestus Anaesoronye, Lagos, & Cynthia Egboboh, Abuja

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ife insurance premium currently growing at an average of 32 percent annually since 2014 following implementation of retiree annuity and group life policy in some public and private sector institutions could witness significant growth if the National Pension Commission (PenCom) succeeds in enforcing compliance of life cover among employers of labour this year.

Just like the growth witnessed in pension assets under management because of enforcement, which currently stands at about N10 trillion, insurance could as well see major boost in premiums that will change the

NGUS jan 27 2021 367.48

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Insurers’ premium income may rise 40% on PenCom’s life cover enforcement

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BusinessDay’s ‘Lead battery’ investigation wins world’s biggest journalism prize ISAAC ANYAOGU

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usinessDay’s investigative series “Dying in instalments,” which uncovered the harmful effects of unsafe lead battery recycling in Ogun State has won the inaugural edition of the biggest prize in Continues on page 39

Inside

INVESTIGATION: Many things not right at ‘Yaba Left’ P. 4

President Muhammadu Buhari (r), and Dapo Abiodun, Ogun State governor, at the just concluded UK-Africa Investment Summit 2020 in London.

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news Coronavirus: Nigeria ramps up preparedness as Lagos puts residents on red alert

L-R: Florizel Liser, president/CEO, United States corporate council on Africa; Kingsley Moghalu, CEO, Sogato Strategies LLC/former deputy governor, Central Bank of Nigeria, and Laird Treiber, US State Department Liaison for Prosper Africa, at the corporate council for Africa’s 2020 Economic Outlook Briefing

by Albert Zeufack, Chief Economist, Africa, World Bank Group in Washington DC, recently.

… as FAAN beefs up screening at Lagos airport ANTHONIA OBOKOH, JOSHUA BASSEY, & IFEOMA OKEKE

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Nigeria’s prosperity in next decade will hinge on data, productivity, population SEGUN ADAMS

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riddle for SubSaharan African countries which enjoyed impressive growth in the last decade but failed to bridge income gaps with the developed world has just one lesson for growth and population-challenged Nigeria – a high population growth with low productivity makes prosperity unlikely.

Strong GDP growth over an extended period of time has not resulted in meaningful real convergence in most of Sub-Saharan Africa says Washington-based Institute of International Finance (IIF), blaming the region’s high population growth.

“Additionally, total factor productivity growth remains low and is declining across the region,” said IIF, in a report investigating why fast growth has not raised per-capita income levels in poorer countries relative to richer ones.

Meanwhile, Nigeria, one

of the world’s fastest-growing populations, is neither among SSA’s best-performing economies nor among its global peers.

Since 2015 Nigeria’s economy has averaged less than 2 percent growth compared to regional peer’s average slightly above 5 percent and lower-middle-income countries’ average of 3 percent, according to World Bank data.

This is ignoring Nigeria’s pre-commodity bust average growth of 7.2 percent (2000-2014) because it was a sloppy oil market in 2016 that sent Nigeria into a recession- one it is slowly recovering from- and led to an unwanted ‘World Poverty Capital’ crowning as the economy couldn’t keep pace with population expansion.

Notably, unemployment in the period reached its record-high in Nigeria with slightly nearly 1 in 4 Nigerians capable and willing to work but unable to find a job. Youth unemployment is even higher at around 30

percent, according to the National Bureau of Statistics (NBS).

In the next ten years, the World Bank says a businessas-usual approach would lead to a dramatic increase in poverty in Nigeria (already affecting about 100 million people) so that 1 in 4 of the poorest people globally is Nigerian.

World Bank’s breakdown of Nigeria’s projected 250 million people shows that almost 150 million Nigerians would be in their productive age bracket (15-64 yrs) by 2030 when the gloomy prediction might materialize.

This clearly highlights a productivity issue in the country that could keep income levels low with Nigeria still playing catch up even when it becomes the world’s third most populous country by 2050.

Already, Nigeria’s economic productivity is low compared to peers and the rest of the world, and this has weighed on the country’s growth and pared income

per head.

Aggregate labour productivity for Nigeria has fallen from as high as 26 percent of the average US worker in the 1970s to around 10 percent in 2017, according to World Bank estimates.

While this is above the SSA average (lower than 10 percent), the gap between Nigeria and SSA is narrowing (owing to Nigeria’s decline).

Meanwhile, Non-SSA developing countries which had similar productivity with Nigeria in the early 1960s are now towards heading 30 percent (as of 2017) with advanced economies seeing a sharp increase to around 80 percent of the average US worker.

The efficiency of converting input to output in Nigeria is declining, causing labour to be less productive. However, the trend can be reversed by increased investment that enhances labour capabilities (e.g. health and education), says the World Bank.

•Continues online at www.businessday.ng

he Nigerian government is ramping up its level of preparedness and has included a vast system to its port health service unit alert for screening following the outbreak of Coronavirus, which has risen sharply in China.

The novel coronavirus, known as 2019-nCoV, mostly in Central Chinese city of Wuhan, has left at least nine deaths and 440 cases of infection have been confirmed.

However, the Nigeria Centre for Disease Control (NCDC) is currently coordinating a multisectoral technical group that is assessing and managing the risk of its importation to Nigeria, as the disease has already spread abroad, with cases in South Korea, Japan, Taiwan, Thailand, and the United State.

“The recent emergence of a novel coronavirus in Wuhan, China, and its spread to other countries within weeks reminds us of the threat infec-

tious diseases pose to all countries,” Chikwe Ihekweazu, CEO of NCDC, wrote on his tweeter handle — @Chikwe_I tweeted In light of the rapid spread of the virus, “through the risk of spread to nigeria is moderate according to World Health Organisation(WHO),weremainat alert and continue to strengthen preparedness,” he tweeted.

The first case of a novel (new)coronavirus(2019nCoV) strain was confirmed in China on January 7, 2020. According to preliminary investigations, most patients either visited or worked in the Huanan Seafood wholesale market, Wuhan city.

A novel coronavirus (nCoV) is a new strain of the virus that has not been previously identified in humans. Some coronaviruses can be transmitted from person to person, usually after close contact with an infected patient, for example, in a household or health care setting.

Several known coronaviruses are circulating in animals that have not yet infected humans.

•Continues online at www.businessday.ng

NEC mulls reversal of power privatisation . . As FG set to deploy 20% pension funds for infrastructure Tony Ailemen, Abuja

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head of the planned submission of repor ts on power sector reforms, the National Economic Council (NEC) Thursday said it would back reversal of the 2014 power privatisation by the administration of former President Goodluck Jonathan.

This is part of the recommendations being proposed by the Governor Nasir el- Rufai-led committee inaugurated last year by the NEC as part of efforts to ensure stable power supplies.

“This is one of the recommendations we are putting forward, but we know that it

has implications,” El- Rufai said, while briefing State House Correspondents after the monthly NEC meeting presided over by Vice President Yemi Osinbajo, lamenting that “electricity supply in the country industry is broken down completely.

“The problems are many, the entire sector is broken, and there is a fundamental structural problem. Government has supported the industry with N1.7trillion in the past three years. Government will take some very tough decisions. There is a lot of blame games. Over 80million Nigerians are without electricity.

•Continues online at www.businessday.ng

Undercover Investigation (II)

Staff shortage, ghost workers, principalities and powers… Many things not right at ‘Yaba Left’ After altering his looks and taking psychiatric lessons every day for one week, investigative journalist ‘FISAYO SOYOMBO went undercover for three weeks in November, including 10 straight days on ward admission, as a patient of the Federal Neuropsychiatric Hospital, Yaba, Lagos, one of the nation’s most historic mental rehabilitation centres. His report unveils the decrepit state of hospital facilities, gross understaffing of critical staff despite a bloated workforce widely believed to be populated by ghost workers, low quality of service delivery, arbitrary charges on patients — all stemming from personal and institutional corruption and the hospital’s implicit stigmatising of its very own patients.

‘This food is clearly for mad people’ hursday morning was pap and two balls of bean cake.

The general complaint was that the pap lacked the sugar that the servers claimed to have added. Afternoon was low-grade beans plus garri. Evening was lumpfilled semolina and bland ewedu stew containing a pebble-size meat.

Hard as I tried to eat, I couldn’t. That Thursday night, I lodged a verbal complaint with the male nurse on duty. “This is not fair,” I told him in an impassioned tone, personally

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pained because I was truly hungry.

“It’s not like the hospital is rendering us a favour; we paid for this service.”

Friday morning was yam and stew; it ought to contain fish or meat but it didn’t. Afternoon was jollof rice, which, to be honest, was perhaps the only meal that tasted good of the 28 I ate at the hospital — a success rate of 3.6%. Dinner sucked away all the good of lunch; the eba was so lump-filled my appetite instantly went numb; the egusi was watery as usual and therefore tasteless. I threw it away and went to bed on empty stomach. www.businessday.ng

Saturday morning was pap and bean cakes; it was manageable. Afternoon was stony and husky white rice with stew. Dinner was irritating; the amala was so horrible I wondered if the lumps were deliberately introduced in it. I couldn’t believe that someone indeed cooked that and was proud enough to serve it to anyone.

“Look, the hospital management and the cooks in the kitchen prepare these meals like they’re meant for mad people,” one patient told me that night while I threw the food away for the umpteenth time. “Nobody in

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his right senses would serve this kind of food to a normal human being.

No hospital will give this to regular patients. In their heads, we’ve run mad and our taste buds can’t spot ill-prepared food.”

A one-man protest dealt with ‘the Yaba Left way’ Breakfast on Sunday, November 24, was bread, tea and egg. Lunch was jollof made from low-grade rice. The eba served for dinner was well-done this time; however, the vegetable stew was so watery and stony it rendered the eba inedible.

I managed to eat it without com@Businessdayng

plaints but one patient who claimed to have studied Theology at a UK school couldn’t. It was the Sunday Sheffield United’s Olivier McBurnie scored a last-gasp 3-3 equaliser to deny Manchester United victory at

Bramall Lane.

Marcus Rashford had just put United 3-2 ahead when the theologian abruptly switched off the television in the paved courtyard to the consternation of viewers. “This hospital is taking us for a ride and you all are here watching football,”

Continues on page 37

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news

NNPC, PETAN pledge collaboration to rev up activities in oil, gas sector OLUSOLA BELLO

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ired of the sedentary situation in oil and gas industry, the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Technology Association of Nigeria (PETAN) have pledged to partner on ways to bolster production activities in the nation’s oil and gas sector.

Mele Kyari, group managing director of NNPC, stated that it was not possible for the industry to thrive without local service providers, stressing that there was therefore the need to ensure the development of local capacity.

The resolution was reached Thursday when the chairman of PETAN, Bank Anthony Okoroafor, led members of the Association’s executive to a meeting with Mele Kyari, at the NNPC Towers, Abuja.

Kyari said NNPC was working in concert with the Ministry of Petroleum Resources and the National Assembly to facilitate the passage of the Petroleum Industry Bill before the end of the second quarter of 2020 in order to provide clarity and certainty to investors with a view to stemming the trend of dwindling Exploration and Production activities in the sector.

“While work on the PIB is

going on, we are engaging with the IOCs to resolve some of the commercial processes to make sure that these businesses continue. That was how we were able to deliver the Train 7 FID. We are working on the Bonga South project and a number of projects that you listed. I know that our partners are ready to do business with us. That way, exploration work will spring back, I am very optimistic about that,” the GMD said.

He charged member companies of PETAN to be ethical in their transactions and pledged to support the Association in its objective of growing local capacity in the oil and gas sector.

On his part, PETAN chairman, Bank Anthony Okoroafor, pledged the Association’s support to help NNPC meet the target production growth of 3 million barrels per day and 40 billion barrels reserves by 2023.

He also commended the NNPC boss for his efficient leadership of the oil and gas industry, which has yielded great results such as the signing of the NLNG Train 7 FID and the resolution of the Shell-Belema Oil dispute.

High point of the occasion was the decoration of Kyari with the PETAN brooch to mark his induction as an honorary member of the Association.

Delta Airlines cancels Lagos-Atlanta flight over mechanical fault IFEOMA OKEKE

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elta Airlines on Wednesday cancelled its Lagos-Atlanta flight over mechanical fault in its aircraft scheduled to convey passengers from Murtala Muhammed International Airport, Lagos.

Passengers affected by the development told BusinessDay that the airline had since got a transit hotel close to the airport for them but expressed regrets that the flight still did not depart on Thursday morning.

“After our flight was cancelled on Tuesday, I expected the airline to make provision for another flight on Thursday morning but the airline is saying we will have to wait till evening.

“I have a business engagement on Friday morning but

with this development, I can no longer meet up. The airline has also refused to refund us our money,” a passenger, who craved anonymity, told BusinessDay. However, a source at the airline who confirmed the development, said Delta Airlines’ aircraft developed mechanical problem on Wednesday hence it did not fly but was expected to leave on Thursday at 18.00hr.

“Another flight is coming in from Atlanta on Thursday and will also depart on Thursday night as scheduled. Delta Atlanta flight is not daily. We fly to Atlanta on Mondays, Wednesdays, Fridays and Saturdays. While the airline goes to John F. Kennedy International Airport on Tuesdays, Thursdays and Sundays,” the source said.

24 killed as Lassa fever cases rise - CDC reports Godsgift Onyedinefu, Abuja

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he number of deaths resulting from Lassa fever attack has risen to 24, the Nigeria Centre for Disease Control (NCDC) says.

The centre announced this in its weekly situation report for week three.

The report also shows a total of 163 confirmed cases of infection from 398 suspected cases in 2020 compared to 141 in 2019.

This week indicator shows that the number of new confirmed cases increased from 64 cases to 81.These cases were report-

ed from six states, including Ondo, Edo, Delta, Taraba, Plateau, and Bauchi.

According to the report, nine states recorded at least one confirmed case across 32 Local Government Areas in 2020. Of all the confirmed cases, 89 percent are from Edo, Ondo and Ebonyi states, with the predominant agegroup affected being 11-40 years.

The report also notes that the number of deaths has decreased as the overall case fatality rate (CFR) for 2020 is 14.7 percent, which is lower than the CFR for the same period during 2019 23.4 percent. www.businessday.ng

L-R: Tukur Buratai, chief of army staff; Abayomi Olonisakin, minister of defence, and Nuratu Batagarawa, permanent secretary, Ministry of Defence, during the opening ceremony of an Inter-Agency Synergy Workshop organised by the Ministry of Defence in Abuja, yesterday.

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After 17 years, Nigeria ready to apply over $200m Cabotage Fund for ship acquisition AMAKA ANAGOR-EWUZIE

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fter diverting the initial money accumulated in the much awaited Cabotage Vessel Financing Fund (CVFF) into building maritime faculties in about six universities in Nigeria as well as the Maritime University in Okerenkoko, Delta State, the Federal Government says it is ready to apply the over $200 million accumulated fund into the acquisition of vessels, the real reason for setting it up.

The CVFF was established alongside the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003, to empower indigenous ship owners to take control of the nation’s coastal and inland shipping business, otherwise known as Cabotage trade.

Speaking with newsmen

in Lagos on Thursday after an engagement with Cabotage Operators in Nigeria over the disbursement of CVFF, Chibuike Amaechi, minister of transportation, said before the current administration the money accumulated in the CVFF was applied to building university, faculty of maritime in different Nigerian universities.

“This was the first time or about the first time that we will apply that money to ship owners directly. We have agreed to set up a committee that would be chaired by the director general of NIMASA, and comprised of other stakeholders. They would come up with guidelines for disbursement of the fund, which will be taken to the National Assembly for approval,” he said.

According to Amaechi, it is the committee that would

determine whether the interest rate for repayment of the disbursed funds would be single digit or not.

Emphasising that the responsibility and risk for managing the fund would be transferred to lending institutions to ensure that nobody walks away with the fund, Amaechi stated that the financial institution would ensure that ship owners met the criteria for accessing the fund.

He said the idea was to enhance the development of the maritime industry by ensuring that ship owners were able to borrow funds responsibly, and return to enable others to borrow. “The more vessels we acquire, the more persons we create employment for and the more we grow our economy.”

The minister also noted that the committee would deter-

mine the percentage interest to be inserted in the procurement of CVFF. Dakuku Peterside, directorgeneral of NIMASA and head of the committee to develop the guidelines, said the minister had got the approval of Mr. President to disburse the CVFF. “After extensive discussions with stakeholders here, it was decided that the committee should come up with the draft guidelines. The Minister would study this draft and pass on to the National Assembly for approval in line with the Cabotage Act. Thereafter, we would move to the next phase of actual disbursement using the banks as platform to be disbursed,” Peterside said.

Two factors would determine how soon the actual disbursement of CVFF takes place, Peterside said.

AM Best revises outlook to ‘stable’ for AXA Mansard

NEXIM Bank to host exporter enlightenment programme in South-South

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Obinna Emelike

XAMansardInsuranceplc. is pleased to announce the review of its rating outlook from negative to stable by the global insurance rating agency, A.M. Best, and affirmation of its Financial Strength Rating (FSR) of“B+”(Good)and“bbb-”(Good) for the Issuer Credit Rating (ICR).

A.M. Best in its press release stated, “The ratings reflect AXA Mansard’sbalancesheetstrength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The agency further stated that “We expect that AXA Mansard’s riskadjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), will remain at the strongest level over the medium term, benefiting from the derisking of its investment portfolio”.

AXA Mansard remains an outstanding Insurer with strong financial strength and excellent underwriting capabilities. The organisation has demonstrated

this over the years through its superior financial and technical competencies.

In the third quarter of 2019, AXA Mansard reported a 29% growth in Gross written Premium (GWP) from core businesses, which is driven by significant growth in the life and health insurance businesses. AXA Mansard has achieved measurable results through the effective implementation of sound risk management principles and business innovation which reflected in the Company’s recognition as the Insurance Company of the Year attherecentBusinessDayAwards.

The company has also received several other awards including the Award for Most Innovative Insurance Company of the Year and Insurance CEO of the Year.

Ngozi Ola-Israel, chief financial officer, said, “This rating confirms the strength of AXA Mansard’s business model and capital position evidenced by a balance sheet stronger than ever, even in a difficult market context.

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n furtherance of its mandate of promoting the diversification of the Nigerian economy and boosting non-oil exports, the Nigerian Export-Import Bank (NEXIM) will be hosting the Exporter Enlightenment Programme for the South-South Geopolitical Zone from January 28-30, 2020.

The event, which will hold at the Dome Event Centre, Opkanam Road, Asaba, Delta State, and will be declared open by Ifeanyi Okowa, governor, Delta State, and seeks to bring together exporters, bankers, policy makers, top government officials and other operators in the non-oil export sector towards highlighting the non-oil export potentials of the south-south region and other pertinent issues that impact the contribution of the region to economic diversification.

The theme of the conference “Maximising the Export Potentials of the South-South @Businessdayng

Region for Economic Growth” will be addressed by various high profile speakers, including chief executive officers of the Nigerian Export Promotion Council (NEPC), the Nigerian Incentive Risk Based System for Agricultural Lending (NIRSAL), the Small & Medium Enterprises Development Agency of Nigeria (SMEDAN), the Nigerian Customs Service, the National Agency for Food & Drugs Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON). Others include the Nigerian Agricultural Quarantine Service, the Nigerian Institute for Oil Palm Research (NIFOR) and the Raw Materials Research & Development Council (RMRDC).

Also speaking at the event are various banking institutions led by the Central Bank of Nigeria. Others include the Development Bank of Nigeria, the Bank of Agriculture, the Bank of Industry and the Nigerian Export-Import Bank.

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Technology and our post-oil future THE NEW WEALTH OF NATIONS

Obadiah Mailafia

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ne of the great megatrends of our era is the phenomenon of globalisation and deepening interconnectedness. Unfortunately, it is quite paradoxical that some people really want to pull back the hand of the clock. It has become a virtual cliché that our world has truly become a “global neighbourhood”. The current administration of Donald Trump has taken measures that look like a retreat from globalisation, notably the revocation of the Atlantic Trade Agreement with Asia and Europe. The Brexit misadventure is another test-case of whether European integration and the tendency towards regionalism will survive. But we believe that the forces of globalisation will survive. This is because global capital will always need access to bigger markets and global finance will always be attracted to cross-border locations that offer better returns on investments.

New ICT technologies have the capacity to spur new entrepreneurial and business opportunities in unprecedented ways. According to Ernst & Young: “Fuelled by the convergence of social, mobile, cloud, big data and growing demand for anytime anywhere access to information, technology is disrupting all areas of the business enterprise.

Disruption is taking place across all industries and in all geographies. Enormous opportunities exist for enterprises

to take advantage of connected devices enabled by the ‘Internet of Things’ to capture vast amounts of information, enter new markets, transform existing products, and introduce new business and delivery models”.

This will also mean that the threat of cyber wars will increase. Indeed, cloud-based services and third-party management and storage is heightening risks for firms and nations. Competition is driving digital espionage as rivals struggle to know what their opponents are doing. China, we understand, has thousands of experts working on digital espionage alone. They aim to spy on foreign companies and to steal technology in order to gain competitive advantage.

Linked to this is the erosion of privacy. The idea of liberty since John Locke and John Stuart Mill is premised on the notion of respect for the privacy of the individual. In our 21st digital industrial civilisation, this right will come increasingly under threat. To all intents and purposes, we are entering a new Orwellian Age when individuals and families will have no secrets to hide from prying states and firms.

Technology also plays its own overwhelming role in bringing people together across regions and oceans.

Global interconnectedness is likely to deepen in the years ahead. More recently, the bulk of African countries have signed up to the African Continental Free Trade Area, with potential to become the largest free-trade area in the world, generating an additional $1 trillion to the African economy. Fastracking African integration will require deployment of new technologies that link individuals, firms and markets.

The reality of our interconnected world has its good as well as negative fallouts. On the positive side, it brings different communities closer together while opening up opportunities for

new ideas as well as new networks and opportunities. It will further reduce barriers to trade while encouraging increasingly sophisticated cross-border investment instruments. What these changes will also portend is more choice for “prosumers” in terms of lifestyles, entertainment and consumption. The primacy of the individual in mass consumer society will become even more pronounced.

But there are risks. Just as in the past globalisation, has pushed some sections of the world into greater poverty and inequality Nations that fail to realign their national systems to hook on to global networks of economic opportunity will regress while the life-chances of their people will diminish. In addition, financial and banking contagion effects will become more difficult to contain in future. Radical terrorists, for example, can recruit followers using social media and other forms of electronic communications. Policing borders, patrolling cyber criminals and keeping out radical extremist ideas will become a nightmare for national regulators and governments alike.

At the heart of the new global economy will be the primacy of knowledge capital. Those nations that will be ahead of the competition will be those that invest in human capital and in research and innovation. People are the foundation for the new wealth of nations.

Countries that invest in training and skills, particularly in science, technology, engineering and mathematics – the STEM disciplines -- will be ahead of the curve. At the same time, there will be increasing competition for talents. In an increasingly mobile world, those with skills will move to those eco-systems where talent is rewarded. In the words of the global consulting firm Ernst & Young, “In the global marketplace, the war for talent will become increasingly

‘

At the heart of the new global economy will be the primacy of knowledge capital. Those nations that will be ahead of the competition will be those that invest in human capital and in research and innovation

fierce, necessitating greater workforce diversity to secure competitive advantage”.

What all this calls for is for developing countries such as ours to craft new development strategies anchored on a diversified economy, economic institutions that align with global norms and resilient financial and banking systems that can resist the pressures of global financial contagion. We will also have to be strong on cyber-warfare and cyber-security to ensure that radical extremist ideas are frozen out and cyber criminals are easily detected, thwarted and prosecuted.

By 2030 the global information revolution would have reached the mature stage of consolidation. The so-called “digital divide” would have been reduced. Rudimentary technologies such as robotics, nanotechnology and sustainable energy systems would have begun to flower. Intercontinental maglev trains traversing oceans should be possible. Supersonic flights will be back after the disappearance of the French Concorde. Electric cars would have become more dominant even as hydrocarbon fuelled vehicles would be in their way out. The Age of Big Data would reign supreme, including use of blockchain in business, finance and public communications. Unless governmental authorities take measures to curtail it, electronic money will threaten the survival of some national currencies.

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

Performance appraisal – goal setting

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his year has started off with quite a fast pace. Many people are doing business and the Christmas buzz still seems to be in the air. I love Nigeria and Nigerians for our sheer resilience. I am sure many countries would buckle under the weight of our lack of infrastructure, just to mention just one thing.

What have you decided to do this year?

Anything new? Remember one of the tenets of TQM (Total Quality Management) is continuous improvement. Gone are the days of the saying “if it is not broken, don’t fix it”. Now even if it is not broken, you may want to break it yourself and re-mould it in a much better way.

Today we are going to be talking about one of the main pillars of HR Management. Performance Appraisal. It is part of a larger system known as the Performance Management System.

This system is the approach to the management of people using performance, planned goals and objectives, measurement, feedback and recognition to motivate people to realise their maximum potential. To begin a performance appraisal, you must set clear quantifiable goals and objectives which will be a basis for assessment.

These goals should be set once the member of staff starts work. Clearly each individuals’ goals must cascade down from the departmental goals which is in-line with the company goals. The goals must be set at the beginning of the appraisal period or at least reinforced at the beginning of the appraisal period.

Why and how should we set goals in the work place? The purpose of goal setting in the workplace is to show employees what they need to focus on most during the appraisal period which can be quarterly or half yearly which then helps them to prioritise their tasks for maximum

effectiveness. For managers or the people with the appraisal responsibilities, the goals help them decide which major projects to focus on and how best to delegate responsibilities to their subordinates. The goals help both parties see clearly where things have been done wrong or right and, in most cases leaves all parties in no doubt about measurement of effectiveness and excellence.

Many organisations appraise people and skip this process. There was a young man whose employment was terminated because he was watching pornography at work. They wanted to put that in his termination letter. My advice was that an employment cannot be terminated on an offence never communicated to the employee.

You can go into the argument that he was wasting company time by not working when he should have. That I believe is another issue entirely.

Goals ensure that staff are not just working but that they are working towards company success. Goals ensure staff are committed in terms of the tasks they are completing. It is also a helpful way to understand how each employee’s role impacts the overall success and goals of the organisation.

Goals also keep staff motivated. If you are like me, being able to tick off my achieved goals can be motivating. If for any reason I have not achieved the goal, I am motivated to go ahead and finish the task, unless of course I am not sure what I am supposed to do (this will be the case if the goals were not well articulated in the first place). The goals keep people motivated especially during the times the employee may not feel like working. (This can happen sometimes because the human being is different from a machine even though they are both factors of

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production). If you don’t feel like working, knowing that a reward of finishing a task lies ahead, motivates you. This helps to get the employee off his behind.

Goal setting fosters team work as the goal makes everybody work together to achieve it.

If there is a group reward in place, people are encouraged to work together, since they can’t earn the reward on their own.

With an increase in teamwork comes an increase in morale. No goals mean no end in sight which just tires people out. So besides increasing teamwork goals especially the achievement of goals makes people feel good and this motivation can increase workplace morale. Please let us not think motivation and morale building are the same. I will be talking about this in another article but one is more about emotional intelligence than the other.

Most importantly however well thought out goals will help you measure your individual, departmental and company’s success in amazing ways especially compared to not setting goals.

Setting performance goals therefore in a nutshell, boosts performance by motivating people to increase their efforts, inducing stronger focus while helping them prioritise.

However, it can be questionable how useful and well thought out some goals can be. If goals are either too challenging or not challenging enough, this can cause numerous issues among team members in terms of their motivation and drive. Unrealistically high goals are incredibly demotivating in the same way goals aimed too low are also. Goals must be attainable, yet challenging. When goals are not clearly outlined, there will definitely be problems trying to set them in action.

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Olamide Balogun More importantly, I am sure you must have heard in the last year or two how so many people seem to be dropping dead. Male and female.

Many of the professionals working in high powered organisations. As I don’t have the statistics, I can’t say for sure that unrealistically high goals were the cause of all those deaths but we can’t rule it out. Those who are not dropping dead are getting auto-immune diseases, all stress related.

The goals must be, specific, Measurable, Achievable, Relevant and Timely. Goals should suit both employee and employer’s needs and expectation. The goals should both help provide you with a clear purpose and lead to successful goal completion that feels straightforward and stress free. Most definitely an employee performance goal must lead to the employee’s development and success and that of their work mates.

To conclude, I realise I did not have the time to give you the ‘how to’ of goal setting only the “why”. I will do that next week. In the meantime, begin to look at your appraisal system and it may give you an insight into why you have some issues. Welcome to the weekend. As usual I say, take a break.

Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

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Ekwegh is a private legal practitioner with over 15 years

Friday 24 January 2020

BUSINESS DAY

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Toppling Monuments and demystifying “Heroes Past” HumanAngle

Femi olugbile

R

ecently, a statue of Mahatma Gandhi was toppled by students at the University of Ghana in Accra. The reason? The students accused Gandhi of being a racist.

The notion that Mahatma Gandhi – one of the most venerated figures all over the world, could be a racist was enough to boggle the mind.

What were the students in Accra thinking of?

Mahatma Gandhi lived in South Africa as a young lawyer between 1893 and 1914. He was a socially active and outspoken man who quickly saw the difficulties that his fellow Indians had to live with in what was then a land of oppression, especially towards its black majority. According to a book titled “The South African Gandhi: StretcherBearer of Empire”, published in 2015, authors Desai and Vahed averred that Gandhi “kept the Indian struggle separate from that of Africans…”. In a letter to the Natal Parliament in 1893, he was quoted as saying: “…a general belief seems to prevail in the colony that the Indians are little better, if at all, than savages or the Natives of Africa”.

The Gandhi portrayed here is difficult to reconcile with the Gandhi the world would later know, whose philosophy of “Satyagraha” – non-violent resistance, would spread universally, and become a major driving force in the Civil Rights movement and the push for the rights of oppressed people in all corners of the globe.

Devoted Gandhi-ists would want to “blank out” the racist Gandhi of 1983.

Another historical figure whose image has been called into question is Winston Churchill. He is known as the hero who rescued the UK from the jaws of defeat in the Second World War and led it to a famous victory over Nazi Germany. Some months ago, a London-businessman opened a Churchillthemed pub in Finsbury Park. Soon afterwards, a group of activists burst into the pub, startling breakfast diners by protesting that Winston Churchill was a war criminal and a racist who should not be dignified with a monument in that part of London, or anywhere else for that matter. They described the glorification of the man as “colonial” and pronounced themselves appalled that patrons were drinking from Churchill mugs underneath pictures of Spitfires and Union Jack flags. Many of the activists were students.

The truth was that Churchill was both the hero that saved England and the racist who once derided Mahatma Gandhi as a “half-naked fakir”. It is even said he withheld food from starving Indians at one time because he felt it was more important to concentrate on the war effort. In history books read till today by students from Alaska to Nigeria, Winston Churchill is hailed as a great hero.

Which is the true Churchill – the hero or the villain? Is it an act of treason for any Briton to question Churchill’s legacy, as some claim?

Back home, everyone accepts that the “Founding Fathers” of Nigeria were great men of unblemished character, and that if anything is wrong with the country today, the fault is in present generation, and not embedded in these untouchable icons of heroism and service.

Chief Obafemi Awolowo is one of the most adulated “founding fathers”.

Ironically, what he wanted most, and the one thing he could not have, was the leadership of Nigeria, something that would come with minimal effort to a man of much less endowment – Olusegun Obasanjo. What would actually stamp Awolowo’s imprint on History was his tenure as Premier of the Western Region, which he himself regarded merely as a steppingstone.

Having set up the first television station in Africa, having unleashed the people’s potential through Free Education, having positioned the Western Region head to head with the emerging giants of Asia – Malaysia, Singapore, South Korea, the question may well be asked: What might Awo have accomplished if he had stayed on the job- to thinkthrough and sustain his big ideas?

Instead he would fizzle out in Lagos, and WNTV would become, not a First World pacesetter, but a shabby relic of a lost dream. Perhaps Nigeria itself would have developed like the Asian tigers, because his achievements would have spurred a healthy competition from other regions of the nation. Perhaps there would have been no need for a kangaroo ‘treasonable felony’ trial, no

‘

Back home, everyone accepts that the “Founding Fathers” of Nigeria were great men of unblemished character, and that if anything is wrong with the country today, the fault is in present generation, and not embedded in these untouchable icons of heroism and service

1966 coup, no ‘revenge’ coup, and so on. History can be cruel.

Sir Ahmadu Bello, the Sardauna of Sokoto, was a generous and inspirational leader with a clearly self-defined brief – to advance the cause of Northern Nigeria. How that ambition, and the strategy he chose to pursue it, would sit with a cosmopolitan, egalitarian Nigerian entity is a question that has not been answered to this day. His insights concerning other Nigerians were deep and deeply troubling, as shown in his Daily Star interview, the video of which is still available on U tube.

And the great Zik? He spoke English and Yoruba “like a native”, and was much beloved of Herbert Macaulay, whose political mantle he inherited.

He was the quintessential “nationalist” Nigerian – or was he? It was said loyalty was not his forte – while some people were waiting to make a deal with him at Asaba, he was off somewhere else making a deal with another set of people.

Even his dramatic return from “Biafra” left many questions hanging.

Is it fair to judge people outside their times? Most people cannot abide the complexity of “good and bad” heroes and are only comfortable with the pure hero who embodies all that is noble and good in his people. Unfortunately, that involves shutting out part of the truth, because that is not how it is in the real world. The writers of the book that demystified Gandhi were fellow Indians. Flawed heroes are easier to embrace, emulate and learn from than saintly mythical figures who never put a foot wrong.

Olugbile is a writer and psychiatrist. synthesiz@gmail.com

Trends and revolutionary evolutions

A

ccording to evolutionary trends, about 4 billion years ago, life begun on earth with single cells emerging. 1.2 billion years ago multi-cellular creatures appeared. 600 million years ago organisms with central nervous systems came. About 500 million years ago animals with brains began to emerge, then 300 million years ago, the universe started to host amphibian creatures. 120 million years ago, the first mammals came. 60 million years ago, we see traces of the first primates, from which we are descendants. 4 million years ago Homo erectus, but 200,000 years ago, homo sapiens otherwise called man came.

Closer to modern evolutionary socio economic trend, we had the efficiency boom in the 1920s, the post-war gigantism of the 1940s, the rationalization of government and rise of marketing in the 1950s, the age of corporate influence in the 1960s, the restructuring of America and rise of strategy and management in the 1970s, the massive growth of information technology in the 1980s, globalization of the 1990s, and the boom-bust-and-clean-up of the 2000s.

In all of these we see a trend. Things change and trends are altered. In general, there are mainly four things that have the capacity to alter destiny in any direction. They are: people, places, events and knowledge. They trigger changes that cause trends. But those trends don’t just happen. It depends on the quality of people that start them and how others adopt them in terms of speed and pattern. For anything to become a new trend, many must adopt it. And in general, there are 5 categories of adopters. They are the innovators, early adopters, early majority, late majority, and laggards. Now let’s explore their characteristics.

Innovators are a small group who are first to know and try things, then make it popular.

They are adventurous. They make up less than 2.5percent of the total population of any system.

The early adopters are opinion leaders. Their endorsement goes a pretty long way. They are the gap between trendsetters and the majority.

They make less than 12.5percent of the total population of any system.

Early majority adopts trends as it gains more momentum. They adopt these products only when they think it has real benefits. 2/3rd of every population are either early or late majority. They make less than 34percent of the total population of any system.

Late majority are resistant to change. They make less than 34percent of the total population of any system.

Laggards are the last or never get to adopt the trend. This is because they have very minimal exposure to media so it reduces their ability to be responsive to change.

From the over 175 videos that have 1 billion YouTube views which includes songs like Gangnam style and Baby Shark’s lullaby to over 1 billion bottles of Coca Cola sold daily, from the millions of people that buy products that creates billions for Dangote, to the billions we’ve spent on buying Gala and Indomie, what sits on top of it all is trend which either started off a fluke or as a result of a great business model and marketing strategy. Sometimes, it’s just plain fluke. A good example on the global scale is the Mannequin Challenge. It went viral a few years ago and cooled off. This is typical of trends.

The Mannequin Challenge was a viral Internet video trend which became popular in November 2016, in which people remain frozen in action like mannequins while a moving camera films them, often with the song “Black Beatles”

by Rae Sremmund playing in the background.

It inspired the corresponding hashtag #MannequinChallenge, which was used for popular social media platforms such as Twitter and Instagram. It is believed that students at a high school in Jacksonville in Florida started the phe-

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nomenon. It’s still to date is a powerful concept where people just stay still, like mannequins and the only thing that moves is the camera in 360 degree. Everyone seemed to have done it in a few days just after the Florida kids had done it, from Hillary Clinton to Nigeria’s Emmanuella to, UBA, to Kelvin Hart and even an entire stadium in a football match. It’s creative and engaging.

It was lovely. It was a powerfully deep view and experience, especially with the Black Beetle song featuring Gucci Mane playing in the background. The roots have been traced back to Twitter user @thvtmelanin_, a high school student named Emili from Jacksonville, Florida.

“One day I just went to the front of the class and stood there,” Emili told Inverse magazine via Twitter DM. “That’s when my friend A’laynah said, ‘Hey, you look like a mannequin.’ Then my friend Bre’Onna and Jasmine joined and we started doing all these crazy poses.”

My question first of all is, so who are Emili and A’laynah and why do they matter?

People like Emili and E’layanah exists around us. They start trends. They have special features in their behavioural patterns. They are mavens, sneezers, innovators or connectors.

MAVENS on the one hand are people who know a lot about a skill, Sneezers house them as platforms while CONNECTORS know and engage them.

Mavens are masters. They are experts and thought leaders in their chosen field and industry, and since there are different industries in the world, they are usually scattered everywhere. But connectors are people who connect everyone to the same page, the same world.

They have a special gift of bringing the bests of a particular demography, the world together through the sneezers.

In marketing or any campaign, know the guys with the characteristics of mavens, sneezers, connector and inventors. Together they

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EIZU UWAOMA

make up what we call influencers.

These days, it’s not boardroom strategy and marketing budgets, but underrated influencers and people like these that start and end trends, destroying and recreating products that disrupts industry and our world. Its people like these that actually made Trump win an election, like yawning, they possess an unknown spirit and gift to create what is highly contagious and other people just copy. Don’t ignore them, like the guy that that burnt himself and started the Arab spring. Strangely we have them unnoticed (even to themselves) in all industries. We call people like Emili, Bre’Onna, Jasmine and A’layanah connectors, they teamed up with Mavens (other cool college kids) and Sneezers (social media).

Every industry has them. Let me break down a key concept through this.

“This Mannequin challenge, a silly class prank then evolved into a full-blown social media challenge reaching billions in days thanks to a little encouragement from a friend”, Emili said. How did it then go viral?

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

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Friday 24 January 2020

BUSINESS DAY

Editorial Publisher/Editor-in-chief

Frank Aigbogun editor Patrick Atuanya

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

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Proof of Finance Bill is implementation

T

he Finance Bill, the first of its kind in 20 years, recently signed by President Buhari and passed into law is a step in the right direction. Proof of the success of the bill, however, is its implementation.

It fills a fiscal vacuum that the central bank has struggled to fill in a bid to revive the economy through unorthodox policies, interventions and directives. An increase in value-added tax (VAT) to 7.5 percent means more revenue for the federal government.

With more revenue, budget deficits should reduce, the federal government borrow less, spend less on debt servicing, and have more funds to deploy on capital expenditures which stimulate GDP growth.

In addition, it aligns domestic tax laws with global best practices but most importantly raises revenue for the federal government. The latest tools proposed for tracking and collecting taxes which are included in the bill makes

Nigeria an early adopter of tax systems in a digital era. The finance bill, in addition, will help promote fiscal equity, introduce tax incentives for investments in infrastructure and the capital market, and support small businesses.

Furthermore, if implemented properly the bill complements the regulatory reforms that improved the position of Nigeria on the Doing Business Rankings in 2019; it moved up 15 places to 131st position. Paying taxes, starting a business, getting electricity, registering property and trading across borders were the areas it performed poorly. More bold reforms must be implemented.

The economy is still recovering from the substantial termsof-trade shock that triggered the 2016 recession. The last two years has seen a rebound in oil prices, higher foreign reserves, tighter monetary policy, and convergence in foreign exchange windows and led to a decline of inflation (although the general prices are rising, crimping purchasing power).

Still, Nigeria’s overreliance on

oil revenue is like Manchester City counting less on winning its matches and more on Liverpool to lose in order to win the English Premier League.

A significant oil shock and the economy will shrink – 90 percent of the dollars Nigeria earns is from crude oil.

When considering the implications for small businesses, the provision of no Company Income Tax (CIT) and Value Added Tax (VAT) for businesses with revenue less than or equal to N25 million would help companies within this threshold save more money and deploy into more profitable projects for expansion. This will in turn create more jobs and in the long run reduce unemployment rate which is currently 23 percent.

The finance bill isn’t void of drawbacks. According to a report by Deloitte, there is a possibility that investors may take advantage of this proposed provision. The same promoters could set up several companies carrying out similar businesses but earning just below N25 million or N100 million in order to

avoid paying taxes or paying at a higher rate accordingly. To this end, the FG must put in place administrative regulations that discourage such practices.

Also, companies not exempted from the new VAT, are caught in between whether to pass on higher costs to already squeezed consumers or bear the cost.

Increasing prices of goods may see consumers port to cheaper products, hence shrinking their revenues. Companies quoted on the stock market will have to cut costs otherwise investors will sell their shares if they sense higher expenses will affect profitability.

The federal government has reemphasised its commitment to use income from the VAT increase to fund the pay for the new minimum wage, at the expense of more economic threatening challenges like the yawning infrastructure gap. With inflation moving northwards, implementing the N30,000 minimum wage could put pressure on inflation, further reducing the purchasing power of consumers.

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Friday 24 January 2020

comment The new rude: Sardine treatment Tales from the main road

Eugenia Abu

I

n the last 72 hours I have asked myself again and again whether it was divine providence to have handled Customer Service aka “Servicom” in NTA for two years at some point in my life. I was largely misunderstood by both staff and service providers. Simple reason being that very few people are interested in Customer service in Nigeria. In fact, it will seem that both those at the receiving end of customer service and those providing it are either clueless or do not know their rights if receiving a paid service. I am completely gobsmacked by the poor levels of customer service or the complete dearth of it. Now that I also train in Customer service along with other faculty at The Eugenia Abu Media centre, it is clear to me that people come into a service provision job or any other job for that matter, untrained, self-entitled and unwilling to give the customer their due.

At the end of 2019, I was invited by a big supermarket and chain of stores to train staff on customer service. To my utter dismay, I found staff who had no interest in the business other than their salary and closed themselves to learning. I found others who told me point blank that they would be physical with any customer who was verbally inappropriate with them. I was quite

amazed. I mean while I do not encourage customer verbal inappropriateness, for a cashier to tell me they were ready to be physical was for me the height of it. Question is how were they hired? What did they understand as their role in the business chain?

In another space where I was involved in mystery shopping for a big store, my staff returned with bizarre reports of staff complaining that they had had enough of customer service training. Should we lie down for these customers? This was the question a particular staff kept asking. And she was a deputy manager. Surreal. I was billed to deploy our customer service training that weekend for this store and that staff was to be a participant.

We are literally on our knees in the customer service business, from restaurants to airports and shops, staff are treating people like rubbish and owners seem like they do not care. I wonder if they hired motor park touts to man their business. Sales girls only behave when their bosses are around.

Gum chewing, rude and eyelash batting girls are at the counter, give you a full eye when you walk in and then promptly ignore you. Those who greet act like they are doing you a favour.

They are impatient and seem to want to shoo you out of the shop. In addition, they have no information about the product they are selling or when it will be available or even if it will ever be. They seem to be out of their depth when you ask them a simple question.

In the last 72 hours, I have lunched and dined out at some of the finest restaurants in Abuja. I am literally at my wits end with some of my observations. I have practically begged for a menu from a waiter who dropped it and

went his merry way and then pleaded for his attention to take my order. I then waited another 15 minutes for him to return and tell me something was not on the menu. At another restaurant, the waiter had to be told to stop humming under his breath as I waited to make my choice of food. Waiters have shown that they would rather hold an office job and in fact if not for Nigeria and lack of job, they would not wait on you. They usually don’t verbalize it. Often it would be through body language and attitude.

So, question is, why does it seem that I am the only one incensed when I received bad customer service. Why are my compatriots acting like it is a bit too much to ask if I say waiters should not yell at each other in my presence while I am trying to eat or hairdressers should not gossip while doing up my hair which will ultimately lead to their spittle in my hair because they are discussing inanities that have nothing to do with me. Again, how do we hire our staff? I find that most service providers in Nigeria in the medium stream tend to hire cheap labour, do not train them and unleash them on us.

Let me say here clearly to shop owners. When you do not train your staff, they practically send off your customers and ruin your relationships. If you have a quarrelsome sales girl, you are cooked and if your shop is made up of inefficient and rude staff it is time to pack up your business.

In the course of doing this column, I have had cause to speak to a multiple entrepreneur whose hands are in every pie, tailoring, restaurant buisness and all other unrelated businesses. She has scaled up so quickly that I doubt she is able to manage her ever expanding businesses. Again, another problem

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‘

Business owners have to decide if they like the title entrepreneur without the work and customer service quotient that goes with it. It’s a tragedy that here in Nigeria customers are treated like Sardines

impacting customer service. Scaling up without the requisite preparation or capacity. She told me she has many good hairdressers, just that some of them are rude and impatient but they are very good. Oh really! Madam can you hear yourself? Rudeness is not my thing. If you are the best of anything and add rudeness, then I don’t consider you good at all. Character is everything.

Business owners have to decide if they like the title entrepreneur without the work and customer service quotient that goes with it. It’s a tragedy that here in Nigeria customers are treated like Sardines. No one tells you thank you for making a choice of their shop to buy what you need, those at car washes toss you around like a scarecrow’s assistant and those at restaurants are dealing with too many customers and treats you like a number. No one thanks you for your custom, they are more interested in the tip for a bad job done. And when buffet points are out of a particular variety of food, you will be the one to have to advise the waiter to get the kitchen to replenish.

My question to business owners is this? Are you in this business for fancy or you are serious about it? Your staff are treating customers like sardines, bunching them together and refusing to listen. Other staff are rude, unethical and disrespectful while trying g to sell you a product clearly not on the menu.

Something is dangerously wrong.

Nigeria needs fixing, one customer at a time.

I rest!

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

Make commitment your organisation’s enduring advantage

Y

ears back during a meeting with a CEO of a bank, he was telling me how he taught that by promoting people and increasing salaries across board would radically improve performances. Much to his chagrin, his expectations were not met. He equally said to me - despite the skilled and experience people they have hired – that things are not still working the way they had anticipated.

The reality is, organisations can have people with the right skills, required expertise, powerful experiences, and compelling qualifications, but if they lack what I like to see as a “game changer”, they might have a hard time delivering desired results. So, after listening to the CEO, I simply said to him that “people can comply and meet the targets in order to be promoted but they are not truly committed” and he quickly said – that is very (very) true, Uju. From my experiencing working across industries, the number one key thing I have seen in a short supply in our workplaces of today and truly is a game changer is “commitment”.

The sad news is that one can have all the skills in this world, all the education and experience but without “that one thing” - commitment – growth and performance will end up being impeded. I really like what Ken Blanchard said “There is a difference between interest and commitment. When you are interested in doing something, you do it only when it’s convenient, but when you are committed to something, you accept no excuses – only results.” This is really true, when one is deeply committed to what he or she does, he or she moves away from convenience to dedication. This is pretty much akin to parenting, which all of us know sometimes could be inconveniencing, but every parent whether they like it or not are expected to be dedicated to raising their kids to be successful

in life – and that is simply an act of commitment. organisations that will truly thrive will be those organisations that understand the need to build a commitment culture across board.

What I usually advice CEOs not to do is to heap the blame of not being committed to their employees alone. As a CEO first and foremost ask yourself, how much transparently committed are you in driving the organisation’s affairs?

I strongly believe that CEOs should endeavour to create the culture of commitment first in their organisations. Like Edgar Schein rightly said, “leaders create culture, culture drives behaviour and behaviour produce results.” I think the right thing for organisational leaders to do is to exemplify commitment across board.

As a leader, get to a point where people can say something like, “because my boss is committed, I have to take after him or after her”.

In today’s world, many people across the organisation give so many reasons and justifications for their poor performances. In the last 5 to 10 years employees’ productivity have gone down and may likely become worse in the future. When you listen to some workplace excuses and reasons for non-performance, it would be very easy to pick out the fact that the main cause of their non-performance is simply lack of commitment to their jobs. Let’s look at it, when one is not committed, he/she will never go the extra mile for his/her organisation, and such person will only do what is convenient to do. You will agree with me that with the current situation of businesses today across the world, no organisation anywhere can ever achieve sustainable results working with people that will only do what is convenient for them. Every organisation needs a collective workforce who are committed and are ready to deliver results regardless circumstances. The reality is – cirwww.businessday.ng

cumstances will always be there – but we have to move away from excuse to having results in mind! Remember, circumstances abound in all organisations, but through dedication (driven by commitment) we tend to deliver our best.

During the training I did for the Nigerian Navy on her 57th anniversary on “Attitudinal Change Transformation” years back, a personnel of an engineering department raised up a point that over the years has created a false impression on employees. He believed that without adequate resources, employees might not deliver expected results. This has been the thinking of so many people till today. The truth of the matter is that resources can never be enough. Employees must learn to make the most out of the available resources. Budgets can be reduced or cut down, but nobody can ever succeed in cutting down or reducing the flow of someone’s attitude. And commitment comes with having the right attitude.

The commitment gap in many organisations is continuously increasing. Many people are just earning salaries without justifying their pay. “Presenteeism” is now the order of the day.

Presenteeism is really difficult to discover as opposed to absenteeism. It exists when employees are fully present in the office, but they are not working, not adding value, and not committed to their jobs. Someone might ask, is it possible for one to be in the office and not working? Yes, when one is present but not adding value to the organisation. A committed staff member is always adding value and will keep doing things differently in order to achieve a better result.

Points to ponder Leaders and managers in your organisation should show commitments first. People do what they see others doing. Leaders and managers are expected to set the examples. It is much

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Uju Onwuzulike easier to lead others when you are committed.

Employees should focus less on things that are nice to do, but instead should focus more on things that matter most to the company.

For your business to grow, you need people who are committed. Without commitment, there would be no sustainable growth.

In conclusion, we must ensure we close up the growing commitment gap in our organisation as urgent as possible. Growth, progress and improved performance and profitability would be farfetched with non-committed people who are just getting by. We should always be guided by the fact that no amount of skills, expertise, exposure or education can take the place of commitment. As leaders, CEOs and managers, let us pass the message to our subordinates that nothing can cut short their level of commitment or attitude to achieve any result they want. Show me a man or woman who is committed and I will point to that same person as someone who has the key to their organisation’s growth.

Importantly, the people at the top have tremendous role to play in helping their people to be committed and the starting point to me is “to be what you preach” because your people see what you do more than what you say.

Make commitment your organisation’s enduring advantage Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management.

He can be reached on 09091142093 or uju.onwuzulike@ mclgroup.net.

@Businessdayng

14

Friday 24 January 2020

BUSINESS DAY

MONEYINSIGHT 10 Predictions for Digital Payments in 2020 but but, don’t dance too fast, this would be dominated by MTN as they are pushing more infrastructure and agent recruitment spend that all other super agents, combined. Those guys don’t play around!

ADEDEJI OLOWE, Guest Writer

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019 was an interesting year for payments globally, and our dear Nigeria wasn’t left out of the party. But 2020 would be even much more exciting as many of the payments food that got on the fire last year would be served piping hot at the start of the new decade. 2020 would be lit.

So, here’s the third annual prediction of the payments ecosystem in Nigeria.

Let’s dive right in!

1 Despite CBN’s push, commercial banks won’t crack retail credit If you didn’t skip Economics 101, you would know that retail credit drives consumption within an economy. Our Nigerian bankers know as well, but maybe they just don’t care. The CBN has been pushing them with stringent regulatory measures but you can’t give what you don’t have. Our bankers are mostly of the Shashe type and there isn’t a shred of retail DNA in their body.

Come December 2020, the drive for retail credit would only have been marginal with banks turning their backside to collect the cane that the CBN would be using to whoop them for not expanding credits.

2 Account-based payments explode. Rapidly overtakes card payments online Card payments suck in Nigeria, and it isn’t a secret and using accounts to make payments for services have been the mainstay of Instagram and Whatsapp commerce in Nigeria for almost 5 years. But automating and wrapping this around with some beautiful APIs would go mainstream this year. It would touch at least 50 percent of all card

8 A heavy hitter launches a digital bank, eclipses all the struggling existing small players Many players have tried to crack the digital bank nuts, but it has been mostly eggs thrown at walls just to pull it down. If you call yourself a digital bank in Nigeria today, you are probably too small to be just a little over insignificant.

But come this year, someone (probably not a Nigerian entity) puts money down to end this argument and launches the Monzo of Nigeria. But it wouldn’t be any of the players we have now. payments. How we will confirm if this prediction is accurate or not is anyone’s guess.

3 MTN gets a PSB license.

Trouble ensures for bankers MTN has been dancing around financial services for as long as chicken lacked teeth. Last year they got the super agents license and they are already doing something with it but it seems their PSB license application has more dust on it than all the sands at Eleko Beach. But give it to MTN, they don’t give up easily, so expect that somewhere and somehow, they would meet the requirements and get their PSB license. Then trouble ensures for all bankers.

4 Monthly interbank transfer hits 300m/month and it would be fueled by cheap low-value transfers Last year, I predicted that interbank pricing would crash; the CBN didn’t disappoint. Now that you can now do transfers as low

as N10 a pop, start seeing crazy emergent behavior where it’s now way cheaper to use your app or USSD to send N250 for bread and moin-moin than taking Keke Marwa to the nearest ATM. 5 Opay will be one of the top ten banks in Nigeria Everyone seems to be screaming about how the Chinese African juggernaut has ridden roughshod over GoKada and Max.NG. What they haven’t paid attention to has been the massive growth of the payment infrastructure backing it. In 2017, the first thing Opay did was buy the derelict Paycomm mobile money which has now grown from nothing to becoming the seventh-largest player on the interbank market.

In 2020, Opay will push massive retail credit, offer better rates for investments, and their size means money stays within their ecosystem than move out. Expect them to get a seat at the Banker’s Committee soon. And if they ain’t invited, they would buy one of the commercial banks.

6 CBN kickstarts Open Banking APIs rule the world and the last walls erected by banks against the onslaught customers integrating their bank services into other apps are crashing down with open banking APIs. Nigeria has been slugging it since 2017 but this year, CBN will back it with a directive and possibly adopt the standards being done by Open Banking Nigeria (disclosure, I’m a trustee at Open Banking so this is as much as a prayer and as a prediction) 7 Agency banking becomes successful as the number of agents hits 600K My good friends at SANEF had an amazing 2019; they did multiples of what they started the year with.

The growth of adoption would see agency banking exploding to over a million agent touchpoints.

The vast agent banking network would drive the emergence of new payment products and business models from fintechs. But

9 A prominent international player buys a major fintech (think Flutterwave, Paystack and not Interswitch) Visa just plopped $200m to get 20 percent of Interswitch but doesn’t own it and would have to share the crumbs and strategies with other institutional investors. This year, however, a big hitter would come for any of Flutterwave, Paystack, or even some of the lesserknown but kicking-it fintechs.

10 Whatsapp decides to launch the next payment play in Nigeria using Facebook Pay, trouble starts for all fintechs Whatsapp would land forcefully in Nigeria as it’s first foray to own payments within the African ecosystem. After all, if the only massive growth potential left in the world is in the SSA, why not start from the palace of the king of Africa?

Adedeji Olowe is the CEO of Trium Networks.

CRC’s 95% coverage of Nigeria earns firm best credit bureau of 2020 STEPHEN ONYEKWELU

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RC Credit Bureau Limited (CRC) has been named the Best Credit Bureau in Nigeria 2020 by London-based Capital Finance International (CFI.co), a print journal and online resource reporting on business, economics and finance.

The CFI.co judging panel stated in their report that CRC is the largest credit reporting agency in Nigeria, responsible for over 95 percent of the nation’s recorded credit data from commercial banks, on-bank institutions, utility companies and retailers. This im-

pressive market share is the result of a well-designed organisational structure, fine-tuned processes and highly principled governance.

“CRC creates a database of risk profiles deploying diligent research and data mining. Credit providers and borrowers alike rely on CRC Credit Bureau to facilitate informed lending and borrowing decisions with fast and hard facts,” said CFI.co Judges Report, in London, December 2019.

Creditors can access the CRC database to check a prospective borrower’s credit history or tailor new credit products using its www.businessday.ng

tech-driven development tools.

Catch-22 that it is, accessing a credit line requires a good credit history, whether a private person or corporate entity and CRC foresees fintech partnerships filling the gap in financial inclusion The report showcased CRC’s choice of international partnerships stating “with the Fair Isaac Corporation (FICO), a worldwide leader of credit analytics, CRC has developed a methodology to standardise credit scoring across the Nigerian market and with its latest partnership with Nova, enables Nigerians who emigrate to the US take

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their credit history with them and gives them access to credit products and services,” Tunde Popoola, managing director & chief executive officer at CRC Credit Bureau Limited said.

The CFI.co judging panel concluded their report by agreeing that sustainable retail lending is fuelled by digitalisation and data-driven decisions and confirms CRC Credit Bureau as the obvious choice for the 2020 Best Credit Bureau (Nigeria) award.

Each year, CFI.co seeks out individuals and organisations in their various sectors of the economy who truly add value to @Businessdayng

stakeholders. Reporting from the frontlines of economic convergence, CFI.co realises that best practice is to be found throughout the world.

The awards programme aims to identify and reward excellence wherever it is found, in the hope to inspire others to further improve their own performance.

The Capital Finance International judges panel, review information generated from independent sources during the nomination process and draw on their members’ expertise to identify candidates for award consideration.

Friday 24 January 2020

BUSINESS DAY

15

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

Expectations high for next agric policy as ‘poorly implemented’ APP ends this year Stories by CALEB OJEWALE Twiiter: @calebtinolu

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he Agriculture Promotion Policy (2016 to 2020) was drafted to drive growth in the sector, but as it terminates this year, it appears to be a consensus that the current policy to a large extent did not deliver on its ‘lofty propositions’.

For Emmanuel Ibru, chairman, Plantation Owners Forum of Nigeria (POFON), “The agric policy is fantastic on paper, but not properly implemented, due largely to inadequate funding for the agric sector.”

Summarising Nigeria’s deficit in food production, data from the policy document showed a 20.14 million metric tonne deficit across 13 major crops and 60 million poultry bird deficit.

With increasing emphasis on local food production, there has been more agricultural activity, which ordinarily would indicate more food is being produced. However, there is no official data to ascertain how much progress has been recorded year-on-year, since the policy was launched.

“Not sure the plan was adhered to,” said Ade Adefeko, chairman, Agric Trade Group, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). “Suffice to say food production has been on the increase but storage has been an issue as well as logistics to move same while again not having a national grains or food reserve.”

Turn of Cassava after Rice?

Segun Adewumi, national president, Nigeria Cassava Growers Association (NCGA), described the APP as a good foundation towards agricultural prosperity in Nigeria, but had some reservations about its implementation that he hopes would be improved in any future policy.

For him, however, “it was agenda by agenda; they started with rice

and have now ventured to cassava.

During the time of rice I am sure they gave the right people attention, now they have seen the economic potentials of cassava and are listening to us.”

Adewumi who says his association is now getting attention from the Central Bank of Nigeria, notes that some of the lapses the current agriculture policy failed to address border largely on the cost of production in Nigeria.

“Cost of production is higher than anywhere in the world,” said Adewumi, as a result, when cassava derivatives are produced, they may not penetrate the international market owing to uncompetitive pricing.

He also described transportation as another challenge, as according to him, Cassava has 70 percent water content so when transported over a long distance could drive up costs to possibly double the raw cassava’s value.

“In another one or two years, we hope Nigerian cassava will be cheaper than what obtains in the international market,” he hopes.

significant reduction in the volume of palm oil coming into Nigeria illegally.

On his part, Ezikiel Ibrahim, president, Poultry Association of Nigeria (PAN), says the “agric policy has done well, but we need to fine tune it.” More efforts need to be put into expanding production and possibly start exploring exportation.

In fact, he says “we have to carry our neighbours along because border closure cannot be permanent.

It shouldn’t exceed one month as the negative impacts will likely outweigh any positive ones.”

While Ibrahim thinks the prospects for 2020 are good, he considers the economic dynamics to be a bit confusing and challenging.

“When you want to expand growth, and at the same time increase taxes, it may boomerang,” he said.

He explained that when taxes are increased, somebody that is planning expansion would also be considering how the higher taxes would affect them.

Government, he says, should create a more enabling environment

Palm Oil, Poultry producers want better operating environment “No neighbouring country has the capacity to feed themselves let alone having the capacity to export,” said Ibru, POFON’s chairman. He further explained that Nigeria’s neighbours import to augment their production, and if that is the case, “how come they can afford to export to us?”

The narrative from Ibru is that palm oil is often imported into neighbouring countries, then assigned Certificates of Origin that claim they are produced within West Africa, thus seeking to benefit from the low tariff in bringing same into Nigeria under the ELTS. The result: local palm oil producers struggle to sell their made in Nigeria palm oil.

Even with the border closure, Ibru says there has not been any

L-R: Olubola Aikulola, permanent secretary, Ogun State Ministry of Commerce and Industry; Tomi Coker, commissioner for health, Ogun State; Karima Babangida, director, Department of Agriculture, FMARD; Oba Lukman Jayeola Agunbiade, the Alagbara of Agbara; Mauricio Alarcon, MD/CEO Nestlé Nigeria PLC; Aboubacar Coulibaly, category manager, Dairy, Nestle Nigeria PLC during Nestle’s relaunch of Golden Morn this week at the company’s Agbara factory.

that will favour local producers. “If production is increased, there will be employment opportunities leading to more revenue for government through taxes,” said Ibrahim.

New policy underway?

Kabiru Ibrahim, president, All Farmers Association of Nigeria (AFAN), exclusively informed Agribusiness Insight that a committee has been set up by government to draft a new agriculture policy that will incorporate the Agricultural Transformation Agenda (ATA) and the Agriculture Promotion Policy (APP).

“People are working on it already and we are there as stakeholders,” Ibrahim said in a phone interview.

He also told Agribusiness Insight that Nigeria “needs to scale up production, because we have this opportunity of exporting through the African Continental Free Trade Area (AfCFTA).”

The APP, which for all intent represents the country’s agriculture roadmap, highlighted “food security at national level is achieved

by a combination of domestic food production, imports and strategic storage”.

Out of these three sources expected to drive food security, only one (primary production) is functional, and even so, barely scratching the Surface.

As contained in the APP, Nigeria required 4.7 Million Metric Tonnes (MMT) of wheat but only produced 60,000 MT; Maize, required 7.5 MMT but produced 7MMT; Soya Beans, required 750,000 MT but produced 600,000 MT; Tomato, required 2.2 MMT but produced 800,000 MT. Nigeria also had a demand of 39 Million Metric Tonnes (MMT) of Yam, but only produced 37 MMT; required 8 MMT of palm oil but produced 4.5 MMT; required 3.6 MMT of Cocoa but produced 250,000 MT; required 7 MMT of Sorghum but produced 6.2 MMT. Also, Nigeria required 2.7 MMT of fish, only producing 800,000 MT; required 200 million chickens, but only producing 140 million, at the time of the report.

Ogun steps up infrastructural activities to key into World Bank’s agric intervention RAZAQ AYINLA, Abeokuta

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arring any alteration to the terms and conditions spelt out in the contracts being awarded under the Ogun State Rural Access and Agricultural Marketing Project (RAAMP), the State government appears to be making efforts to ensure the provision of required infrastructure to boost agricultural economy at the rural areas and prevent rural-urban migration of people, especially the farmers.

The World Bank had identified some rural areas across the three Senatorial districts of Ogun state under Africa intervention programmes for immediate undertakings of infrastructure

such as roads, bridges, electricity, water, among others. Consequently, the administration of Dapo Abiodun, the Ogun state governor is mobilising to key into the World Bank’s quest for economic prosperity for the rural farmers, especially the threshold female farmers and youths in accordance with the administration’s “building our future together” mantra.

Speaking on the pact during an inspection to a newly built office complex located in Abeokuta and designed for the Ogun State Rural Access and Agricultural Marketing Project (RAAMP), Taiwo Oludotun, the Commissioner for Rural Development, noted that the World Bank-financed www.businessday.ng

scheme would not only empower the farmers but would also improve ease of farming and doing other businesses.

Oludotun, who was accompanied on the inspection by the Permanent Secretary in the Ministry, Olalekan Lukan, assured members of the State Project Implementation Unit of RAAMP that “energising of rural economy through the provision of enabling infrastructure like roads, electricity and water among social needs, form the fulcrum of the present administration mantra.”

“You can be rest assured of the support of the governor for this project. Anything that has to do with the return of economic

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and social prosperity to our people, like RAAMP intends doing, will get the actionable attention of the governor.

“This vision is anchored on the sanctity of the fact that only an economically viable population can contribute to nation building through taxes and other corporate social responsibilities”, he added.

Also speaking at the event, Samuel Onabanjo, the Project Coordinator of RAAMP, told the Commissioner “500km rural roads will either be rehabilitated or constructed, barring any last minute review.”

Onabanjo, while taking the Commissioner through the “buy-in and sensitization ac@Businessdayng

tivities” of the project, said value chains like rice, maize, fruits and vegetables, fisheries and poultry, cassava and palm oil would receive optimal attention.

He recalled that the buy-in and sensitization needed to ensure the success of the project has taken the state project implementation unit (SPIU) on a courtesy visits to the managements of OGBC and OGTV (both state-owned radio and television) in recent times.

The Project Coordinator added that six markets across the state would be upgraded to become complete “Agro-logistic hubs” in line with the vision of returning and retaining prosperity with all along the value-chain.

16

Friday 24 January 2020

BUSINESS DAY

FINTECH News

Products Review

In association with

Technology Review

Personality Review

Company Review

What you should know about PSBs as CBN delays licence undertake insurance underwriting or any other transaction, which is not prescribed by the proposed Guidelines.

They are also not allowed to establish any subsidiary except as prescribed in the CBN Regulation on the Scope of Banking and Ancillary Matters, No 3, 2010.

FRANK ELEANYA

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he Payment Service Bank (PSB) licence is seen by many people as the last hurdle to unleashing a new era of pervasive mobile money in Nigeria, led by mobile network operators (MNOs).

The Central Bank of Nigeria (CBN) is also desperate to include millions more Nigerians who are financially excluded by 2024.

However, since October 2018 when the apex bank released guidelines for PSBs, it has yet to issue a license to MNOs that have applied. But operators continue to nurture hope and they may be justified. In 2019 the CBN issued a ‘Full Super Agent’ licence and an ‘Approval in Principle’ for a PSB licence to Glomobile, 9Mobile and Unified Payment, a fintech company owned by banks.

An Approval in Principle (AIP) does not mean the CBN has granted the licence to the three entities. It is merely a stepping stone and an indication that the regulator is willing to issue the licence subject to specific conditions.

Nevertheless, while a PSB licence may change a lot of things in terms of deepening mobile money accounts and opening more access to financial access to millions who are unbanked or under banked, concerns remain as to the extent the new players will go given the limitations already placed in their way by the licence.

It should be said that the PSB is a borrowed playbook from India, which first introduced it in 2013.

A PSB can be defined as a new category of banks with smaller scale operations and the absence of credit risk and foreign exchange operations.

Usually, PSBs can offer nearly every service a deposit money bank can provide from accounts (current and savings), payments and remittance services, to issue of debit and prepaid cards and deployment of ATMs. In the case of Nigeria, PSBs are expected to have not less than 50 percent physical access points in rural areas. While this can easily be

www.businessday.ng

achieved by the telcos with their robust distribution network, the impediment would likely be the requirement to deploy ATM infrastructure in the rural communities.

Apart from the added cost of moving ATMs to places where they have never existed before, the requirement makes telcos more technical than they are digital. Not only would telcos have to physically install ATMs like banks do, they would need to print and issue cards to their customers instead of having a purely digital proposition.

This means more operational cost apart from running a wide network of banking agents.

The CBN guideline also

specifies the following: Permissible activities Under the proposed Guidelines, PSBs are required to carry out the following permissible activities: Operation of savings accounts and acceptance of deposits from individuals and small businesses; Carry out payments and remittance (including inbound cross-border personal remittances) services through various channels within Nigeria; Issue debit and prepaid cards as well as operate electronic purse; Invest in Federal Government of Nigeria and CBN

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securities and carry out such other activities as CBN may from time to time prescribe.

Eligible promoters The nature of persons permitted under the proposed Guidelines to act as promoters of PSBs are: banking agents (within the meaning of the Banking Agent Guidelines); telecommunications companies through their subsidiaries; and supermarkets and retail chains.

Furthermore, Mobile Money Operators that intend to convert to PSBs are required to comply with the requirements of the proposed Guidelines.

However, CBN may from time to time, consider the eligibility of other entities as the above list is not exhaustive.

Non-permissible activities Paragraph 4.2 of the proposed Guidelines prohibits PSBs from carrying out activities like the grant of any form of loans, advances and guarantees or trade in the foreign exchange market except as permitted. This is a sore point for many industry stakeholders as credit is considered the most profitable aspect or the sweet spot of financial services. It is also a critical factor for financially including unbanked populations.

PSBs are not permitted to

Financial requirements The financial requirements for the registration of a PSB, which are subject to variation

by CBN, include minimum capital of N5 billion; nonrefundable application fee of N500 million; and nonrefundable licensing fee of N2 million.

It’s been fourteen months since the CBN made an indication it will issue licences, but is yet to make it a reality.

Nonetheless, stakeholders are hopeful that 2020 would usher in the era of pervasive mobile money in Nigeria.

@Businessdayng

Friday 24 January 2020

BUSINESS DAY

COMPANIES & MARKETS

17

COMPANY NEWS ANALYSIS INSIGHT

ECONOMY

Clarity, accountability must justify new government borrowings in 2020 … as sustained debt stock increase fail to stimulate economic growth DAVID IBIDAPO

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t is a sad reality that the Nigerian economy has failed to rise above its recovery phase since its exit from the 2016 recession, instead remained stuck within an average 2 percent GDP growth in the last 4 years. It is rather more disturbing that despite intense borrowings by the federal government within this period to make up its budget deficits across these years, the impact hasn’t been felt in an economy wholly in need of growth.

This has been hinged largely on the need for clarity and accountability when considering new debts.

The Debt Management Office (DMO) released Nigeria total debt stock for 9 months ended 2019 and largely expected is a further increase in country’s debt level year on year by c.17 percent to N26.2 trillion ($85.39 billion at an official exchange rate of N307 to $1).

Since September 2015, Nigeria’s total debt stock has accelerated at an annual average rate of 20 percent, a

rate much faster than its GDP growth during the same period. Also, our analysis shows that the government appetite to borrow was fuelled in 2019 with a 17 percent increase in total debt stock y/y, halting a decelerating trend in debt increase since 2016.

While some analysts have argued that Nigeria still remains within a comfortable range given debt to GDP ratio of c.18.5 percent, some 6.5 percentage points below 25 percent target level hence more room for borrowing; more worrisome is the ratio of debt service ratio to gov-

ernment revenue which is more than 50 percent.

According to a report by United Capital, “this provides a strong justification for the current FG’s drive to increase oil and non-oil revenues significantly. However, we believe more needs to be done in terms of clarity and accountability for new borrowings.”

Debt in itself isn’t outrightly bad as there is no economy in the world that is debt free. However, channelling borrowed funds into viable economic stimulating projects able to fund

itself and generate returns is a good justification for incurring debts as a nation.

“Nigeria’s major challenge is spending not really revenue.

We spend on things that doesn’t justify our borrowings and abandon projects that matter,” an analyst who pleaded anonymity told BusinessDay. We shouldn’t also be quick to forget that Nigeria faces revenue challenges, hence its inspiration to accompany its appropriation bill with a finance bill.

The newly signed finance bill which is intended to

take effect in February, provides among other things the possibility for the federal government to see non-oil revenue increase on the back of a VAT hike to 7.5 percent, hence a diversification from a more volatile revenue source in the oil sector of which forms more than 90 percent of the federal government FX inflow.

“The increment in VAT will support government revenue obviously, but won’t be sufficient to bridge the fiscal deficit hence there won’t be a fundamental change in borrowing plans of the government in line with what we saw in 2019,” Gbolahan Ologunro, research analyst at CSL stockbrokers told BusinessDay in a phone conversation.

Given the levels of borrowing cost in the T-bills spaces, this will mean the federal government would be able to borrow at lowers levels compared to what was obtainable in the early periods of 2019. Also, the clamour for higher minimum wage by the Labour would mean more pressure on personnel cost which is a component of recurrent

expenditure, hence, seeing major bulk of revenue generated from VAT used for that purpose leaving little for financing capital projects.

Speaking on the direction of borrowings expected by the government in 2020, Ologunro maintains that, “rates a still relatively lower in the domestic market than in the external market. However, in 2020 we will see the issuance of Eurobonds unlike in 2019 on the back lower yield in the global space following the 3rd consecutive rate cut of the US fed.”

According to him, on a net basis it is favourable to look at the external market from the perspective of bonds given the rate cuts by the US fed, Nigeria is likely to issue Eurobonds at a lower cost than its last issuance. However, given recent credit downgrade ratings from Moody and Fitch, “we believe that there would not be a material reduction in cost of issuing Eurobonds.”

Given the domestic and external debt mix target ratio of 60/40 percent, the Nigerian federal government is likely to tilt more to raising funds domestically than internationally.

promised to deliver on the mandate of the gas expansion programme.

“We are aware of the task before us and the expec-

tation; we shall hit the ground running to bring to bear our expertise to make the program a success”.

OIL & GAS

Sylva inaugurates National Gas Committee DIPO OLADEHINDE

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he Honorable Minister of State for Petroleum Resources, Timipre Sylva has inaugurated the National Gas Expansion Programme Committe to steer the Gas Sector for optimal performance and better utilization of the massive gas resources in the country.

Sylva stated that the country is on the verge of revolutionalizing the Gas Sector to position the country as a major gas hub for the African subregion. He stated further that “We must make the industry relevant to the people by touching the lives of the ordinary citizens through equitable distribution of petroleum products in the country”.

The Minister further tasked members of the Committee to work as-

siduously to achieve their mandates and take their appointment as a clarion call to serve the country.

The Committee’s mandates among others is to serve as a catalyst for rapid development and utilization of available assets and ensure strict adherence to the National Gas Policy thrust as gazetted.

They are also to reform and implement a market infrastructure strategy to promote cost-effective distribution.

The Committee is also to engage state and nonstate stakeholders on the gas policy.

Speaking further, Sylva reiterated that the programme if effectively implemented can reduce poverty and increase the per capita income of Nigerians. Thus, he implored the Committee

to show utmost commitment in the discharge of its duties in the coordination of the programme In his remark, the

Chairman of the newly inaugurated committee, Mohammed Ibrahim on behalf of the Committee thanked the Minister and

L-R: Theo Adewale Onadeko, vice president/senior investment officer, ARM Agribusiness Fund Managers Ltd; Godman Akinlabi, lead pastor, The Elevation Church; Tunji Iyiola, chief operating officer, and Chinny Ugoji, head, communications, , at the press conference to announce the Vantage Forum 2020: A Business and Economic Outlook event in Lagos.

Pic by Olawale Amoo

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Friday 24 January 2020

BUSINESS DAY

COMPANIES&MARKETS

Business Event

CONSUMER GOODS

Nestle eyes larger market share as it re-launches Golden Morn GBEMI FAMINU

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n its drive to improve customer satisfaction and earn a larger market share, Nestlé Nigeria, a top player in the Fast Moving Consumer Goods industry (FMCG) on Wednesday re-launched its Golden Morn cereal at its Agbara factory.

Speaking to guest at the product re-launch, Mauricio Alarcon, Managing Director/ CEO, Nestle Nigeria, said golden morn is a product created in Nigeria for Nigerians by Nigerians, adding that in delivering value, Nestle has always moved for consumer satisfaction.

Speaking on the relaunched cereal, he said asides having the production materials and ingredients 100 percent locally sourced, the cereal has increased vitamins and minerals with the inclusion of smart grain, which is necessary to combat undernourishment and vitamin deficiency adding that almost 200million people in Africa are undernourished while Nigeria has almost 26 million undernourished people.

“The re-launch of Golden morn today is one more step towards fulfilling our commitment to help address the health challenges created by micronutrients deficiency especially iron deficiency among the most vulnerable in our society.

At Nestle, we are committed to helping to develop a sustainable solution to this menace through the inclusion of bio-fortified food crops and the fortification of our products today over 80 percent of Nestle products sold in Nigeria is fortified with micronutrients reaching 34 million households.” Alarcon said.

He mentioned that the product is 100 percent locally sourced from its agricultural ingredients to its packaging materials which is described as an activity that not only ensure supply but also contribute to transforming SMEs involved in the Nestle value chain.

Despite the production cost, Alarcon said Nestle will continue to value to its consumers, “Our business model is built on our belief that our business will only be profitable in the long term by creating value for shareholders and for the society, particularly in the communities where we operate, a concept we call Creating Shared Value (CSV),” he said.

Noimot Salako-Oyedele, deputy governor, Ogun State, commended Nestle for its activities and the re-launch which she described as a milestone towards the industrialization and development of the state.

Salako-Oyedele, who was represented by Olubola Aikulola, permanent secretary, ministry of commerce and industry described them as a

good partner in progress and urged them to continue to increase their contribution to state development through employment generation, product variety, and other avenues.

Sabo Nanono, minister of agriculture and rural development commended Nestle for being a key stakeholder and partner of the ministry in producing and supplying quality and nutritious products toward the reduction of malnutrition in Nigeria.

Nanono who was represented by Karima Babangida, Director, federal department of Agriculture, said “This is a typical private sector investment that would contribute to greatly reducing malnutrition and boosting the economy of our nation, The Federal Government is encouraging more private sector investment in the production and marketing of bio-fortified foods and other micronutrientrich commodities,’’ Aboubakar Coulibaly, Category Manager, Dairy, Nestle Nigeria, said aside from providing more health benefits, it has an improved package which will improve consumer attraction.

“GRAINSMART is a combination of different vitamins (B1, B5 and C) specially made for cereals which will provide the necessary and required daily dose of protein, vitamins and minerals, it will also curb nutrient deficiency which is rampant in Africa”

L-R: Emeka Awagu, head, digital commerce, Quickteller; Olawande Oyewole, assistant brand director, DDB; Afeye Momoh, digital marketing officer, Interswitch, and Adedeji Layade, product marketing manager, Quickteller Services, at the inauguration of the new Quickteller TVC at the Interswitch head office in Lagos.

Pic by Pius Okeosisi

L-R: Mathew Ojo, assistant director, research and advocacy, Lagos Chamber of Commerce and Industry (LCCI); Muda Yusuf, director general, LCCI; Toki Mabogunje, president, LCCI; Michael Olawale-Cole, deputy president, LCCI, and Leye Kupoluyi, vice president, LCCI, during a Press Conference on the State of the Economy in Lagos.

COMPANY RELEASE

NEXCEL marketing partners Veative Labs to drill experiential learning

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excel Marketing and C o m mu n i cat i o n s Limited has partnered with Veative Labs, a global provider of interactive Virtual Reality Education Content, with a view to boosting the learning and teaching of Science, Technology, Engineering, and Mathematics (STEM) concepts.

“STEM” is an important educational topic sweeping through homes and schools across the world. STEM is an acronym representing the huge push to teach and involve students in science, technology, engineering, and mathematics.

Due to low enthusiasm in many schools, both parents and teachers are striving to find new and better ways to create greater interest in these critical learning topics.

These classroom subjects give children relevant keys to a booming future in one of these science-driven fields.

Although there are many ways to help encourage a STEM education, Virtual Reality makes teaching and learning of STEM concepts engaging, involving , impactful and memorable.

The quest to take Virtual Reality experience beyond games and contribute to rekindling of interest in the learning and teaching of STEM concept in Nigeria,

necessitated Nexcel Marketing’s partnership with Veative Labs.

Tagged “Veative VR Module,” the application is localized to any language backed with OST (on-screen text) and VO (voice-over) to take care of different learning styles, including auditory learners. Information on Veative is also presented in clear immersive visuals.

Veative Labs, is the largest global provider of interactive Virtual Reality Education Content dedicated to improving learning outcomes in the classroom.

Veative offers the only virtual reality education solution that combines powerful virtual reality technology with research-based instructional practices, formative assessment data, and usage analytics.

On the other hand , Nexcel Marketing has been in the vanguard of promoting Virtual Reality Experiences for Games and entertainment with bespoke Virtual Reality arcades deployed in leading Shopping Malls in key cities pan Nigeria which has heightened the awareness of VR technology in Nigeria..

Speaking at the unveiling Ceremony in Lagos, the Chief Experience Officer of Nexcel Marketing , Uduak Bassey said “ the Ve-

ative VR modules are curriculum aligned, practical, and interactive covering the core science subjects Physics, Chemistry, Biology , Mathematics and English Language in Secondary Schools” .

Continuing, Bassey emphasized that Veative VR bridges the gap between knowledge and understanding, connecting students with concepts by provoking higher-order thinking and a deeper sense of what something means by giving students the chance to experience things they otherwise couldn’t.

Once you put on the Veative VR Headsets , it practically takes you into an immersive, distraction-free environment. As you select the subject and topic of interest, it starts with clarifying the learning objective followed by paying attention to the core concept and thereafter the assessment all within the virtual space.

“This technology encourages students to become active learners rather than passive recipients of information. With the varied immersive experiences it offers, virtual reality transforms both teaching and learning processes. It is the ultimate medium for delivering what is known as experiential learning,” Bassey said.

L-R: Marvin Umebiye, marketing manager, itel; Oke Umurhohwo, marketing communications manager, itel; Femi Adeyanju, winner of 1million naira, and Mingo Ming, sales manager, itel, at the winners presentation ceremony of the itel End of Year Awoof campaign

L-R: Mohammed Sanusi, Emir of Kano; Sunday Onuoha, executive director, Nigeria Interfaith Action Association (NIFAA), and Alvaro Albacete, deputy secretary-general, King Abdullah bin Abdulaziz International Centre for Interreligious and Intercultural Dialogue (KAICIID), at the 3rd Annual General Assembly and Peace Conference of Interfaith Dialogue in Abuja

Friday 24 January 2020

BUSINESS DAY

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cityfile FG, USAID launch $8mn “water for agriculture” project in N/East

L-R: Umar Mukhtar Gejiram, resident electoral commissioner for Cross River state; Mahmood Yakubu, chairman, Independent National Electoral Commission (INEC), and Oluwatonyi Babalola, director, legal INEC, at the swearing in of the new resident electoral commissioners in Abuja.

CYNTHIA EGBOBOH, Abuja

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Pic by Tunde Adeniyi

Board destroys N50m illicit films in Kaduna INNOCENT EDEH, Abuja

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ational Film and Video Censors Board (NFVCB) has destroyed pornographic and other unapproved films and video works valued at not less than N50 million, in Kaduna.

Items destroyed include DVDs, CDs, copies of multiple- in-one video films, unclassified foreign, local and pornographic films as well as other illicit video works.

Adedayo Thomas, NFVCB Executive Director, in Kaduna, Wednesday, that the items were seized from markets during raid by board officers, adding that their destruction would serve as deterrent.

According to him, the board has zero-tolerance as regulator of the motion picture industry against distribution of unapproved and prohibited films and video works in Nigeria.

“Our enforcement drive within a period resulted in the removal of these unapproved films and video works with street value of over N50 million.

“The government has been promoting avenues to continually diversify the economy to promote economic growth and pursue strategic objectives of job creation, youth empowerment, improved human capital and improved business.

“If the creative industry is in a mess, investors will not come; that is why we are cleaning the market for film owners to enjoy reward for their work,’’ he said.

Thomas attributed the success in its operations to the unrelenting activities of the NFVCB task force, a body constituted to champion the raid of illegal film outlets across the country.

He noted that the collaboration of the police had sped up the arrest and prosecution of marketers and distributors

of illicit films and video works.

“The objective of President Muhammadu Buhari’s Economic Recovery and Growth Plan (ERGP) is the continuous improvement on, respect for, enforcement of intellectual property and ownership rights in the film industry.

“This is pursued by discouraging the distribution of unapproved, unclassified and unwholesome films and tackling other illicit activities in the film market.

“Industry players lose billions of naira to adulterated, smuggled and unclassified works through agents and distributors, which ultimately denies the government its statutory revenues.

“It is on this premise that the NFVCB two years ago re-constituted the national task force on unapproved movies with the support of the Minister of Information and Culture.

“The immediate intervention of the task force, which includes industry stakehold-

ers, guilds and in-house operation staff of the board led to unprecedented massive raid successes across the country,” he said.

Umar Muri, Kaduna State Commissioner of Police (CP), commended the NFVCB for remaining steadfast in the fight against illicit films.

Muri, who was represented by Aminu Lawan, a Chief Superintendent of Police (CSP), observed that some of the vices in the society could be attributed to unwholesome films watched by the youth.

He, therefore, urged filmmakers to always submit their works for censoring and approval by the NFVCB as required by law.

“I want to assure the board that the Police will continue to support its operations in the state,” he said.

Officials of the NFVCB, the police and the Federal Fire Service were among stakeholders present at the public burning of the products.

he Federal Government in partnership with the USAID has launched the $8 million water for agriculture project to deepen farmers and herders access to water in the North East region of the country.

The 3-year project is aimed at addressing identified gaps and needs of the livestock herders and crop farmers in the region, as well as strengthen the resilience of farmer and herders.

Stephen Haykin, USAID Mission director, said on Wednesday that the project will in no distant time boost the livelihood of both the crop and livestock farmers in the conflict affected states.

He said: “Water for agriculture will play a critical role

in USAID strategy to develop new sustainable water sources in rural communities where displaced population are returning”.

“It will also contribute to our promotion of agriculture led economic growth to improve resilience, nutrition and stronger governance of the water and sanitation sector”, he said.

Haykin further explained that the projects target at least 4000 smallholder farmers and 50,000 livestock herders by constructing new earth dams and system for crop production and livestock watering.

Ekramul Kabir, chief of party, water for agriculture project, Catholic Relief Service (CRS), said that the project aims to stimulate adequate and sustainable water supply for food and livestock production.

Two to die for stealing car at gunpoint

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n Ado-Ekiti High Court has sentenced two middle-aged men, Jamiu Idris and Ganiu Issah, to death by hanging for armed robbery.

Justice John Adeyeye held that the prosecution had proved its case beyond reasonable doubts and consequently found them guilty as charged.

The defendants, while armed with offensive weapons, such as guns and cutlass, carried out a robbery activity on November 16, 2016 at D5 Progress Street, off Poly Road in Ado- Ekiti.

The defendants, who pleaded not guilty, were arraigned on a two-count charge of conspiracy and armed robbery.

The prosecutor from the state ministry of justice, Kemi Ajumobi, told the court that the defendants, armed with guns, robbed one Obanibi

Adams of his Toyota Camry car, with registration number: LND 118 EA. Ajumobi added that the convicts were site labourers who worked on the site of Adams, whose car was stolen.

“The phones of the defendants were recovered, which made it easy for the police to track them before they were arrested. The convicts were arrested at Isua-Akoko, in Ondo State, while the car and the guns were recovered from them,” she said.

The prosecutor had called four witnesses to prove her case and tendered exhibits, including the two guns, five live cartridges, phones and the car as well as a confessional statement from the convicts.

Th e c o nv i c t s, w h o were represented by Chris Omokhafe, gave evidence in their own defence.

4 bags 2 yrs for engaging Prisons controller raises concern over awaiting-trial inmates minors in alms begging

… tasks judiciary

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igeria Correctional Service, formerly the Nigerian Prisons, has sent a Save our Soul (SOS) message to the judiciary, pointing to the menace of increasing number of awaiting-trial inmates being held.

The Controller of the Service in Imo State, Chris Okoye, raised issue when the Nigeria Union of Journalists (NUJ), Imo State council, visited him in Owerri.

According to him, there are many awaiting-trial inmates in the Owerri command whose cases were mi-

nor and needed to be cleared in the law courts.

He urged the judiciary and well-meaning Nigerians to help out in decongesting the centre.

Okoye, who appreciate NUJ for the visit, said that synergy between the media and the service could go a long way in finding a solution to the various challenges confronting the correctional service in Nigeria.

He pointed out that the society has a wrong impression about prisons that needed to be corrected by the media.

“The general perception www.businessday.ng

about the prison is negative and in bad faith, it is nothing to write home about, but the service knows what it is doing. Through the media, the society will have a better understanding of what the new name stands for and the impact it has brought to the inmates.

“There is a great difference between the Nigerian Prisons Service and the Nigeria Correctional Service which involves custodian and noncustodian activities,” he said.

The controller said many positive developments had evolved in the service with the

new name.

“We have improved the educational services where the inmates now obtain certificates to the level of doctorate degrees. The counselling services are now well established with a team of psychologists and counsellors to better improve the psyche of the inmates and properly place them where they belonged.

“We have also improved the medical and welfare services as well as sporting activities to engage the inmates, while staff trianing and retraining through attendance of various courses are ongoing.

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Federal High Court in Enugu has sentenced four women to six months imprisonment each for engaging minors to beg for alms for them.

Justice R.O Oghoghorie, sentenced Chinasa Ugwu, 28; Mary Effiong, 19; Grace Bright, 25 and Happiness Asuquo, 20.

They had earlier pleaded guilty to the charges.

The National Agency for the Prohibition of Trafficking in Persons (NAPTIP), charged Ugwu, Effiong, Bright and Asuquo with trafficking and child abuse.

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Justice Oghoghories, during the judgment on Wednesday, however, gave the women an option to pay a fine of N10, 000 each.

NAPTIP accused the women of employing the services of three minors to beg for alms begging and hired out and also hired out the babies for the same purpose.

The agency said that the offence contravened the provisions of Section 23(1) of the Trafficking in Persons (TIP) Act 2015.

The prosecution counsel, Nnamdi Ezemagu, applied for the review of the facts of the case.

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Friday 24 January 2020

BUSINESS DAY

FINANCE ACT, 2020

CHAPTER 7

Impact on Business Reorganisations

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business reorganization, such as a merger, acquisition, take-over, assetdeal, etc., which involves a change in ownership and/or transfer of operating assets, will typically trigger tax consequences under the CITA, CGTA and VATA. These may include taxing the proceeds on asset disposal and any transaction profits.

The CGTA provides tax concessions for share-based business reorganisation only.

The tax concessions contained under the CITA are applicable only to related-party business reorganisations, subject to meeting certain conditions.

Whereas, the VAT does not contain any specific tax provisions on business reorganisations.

As discussed below, the Finance Act seeks to: a) harmonise the tax concessions available to related parties undertaking a business reorganisation by introducing similar provisions in the CGTA, CITA and VATA as the basis for enjoying the concessions. b) modify the conditions under which the concessions may be enjoyed and the groups of persons that may enjoy the exemption.

The amendments are discussed as follows:

would no longer be an effective business reorganisation strategy. Investors will now be forced to consider the cost and benefits of reorganising immediately after an acquisition and forfeiting the tax benefits versus fulfilling the holding period conditions and taking the benefits accorded under the tax laws.

The minimum holding requirement seeks to cultivate a more responsible approach to business reorganisations and limit the concessions to bonafide commercial transactions. It is expected that tax leakages to the government as a result of artificial reorganisation structures will reduce significantly.

7.2 Exemption of assets transferred from CGT and VAT 7.2.1CGT concession Chargeable gains on business reorganisations are exempted from CGT to the extent that the consideration for any shares disposed of pursuant to a business reorganisation.

The same CGT Act also exempts gains on disposal of shares from CGT, regardless of whether the consideration for such disposal is monetary or non-monetary. Based on this, the utility of the first mentioned exemption had hitherto been questioned, given that there is a general exemption for any transac-

tion in share.

The Finance Act modifies the tax exemption on business reorganisations which exempts assets transferred in a related-party business reorganisation, subject to passing the minimum holding requirement test.

Operating assets transferred in the course of a relatedparty business reorganisation will typically not give rise to the realisation of economic value for group of companies, as the benefits derived from utilising those assets will eventually devolve to the same persons who had hitherto benefited from those assets. Taxing the asset transfer would, therefore, result in a double taxation within the group on the same asset as opposed to taxing the synergies and other economic benefits derived from exploiting those assets.

The implication of the above amendment contained in the Finance Act is that, relatedparty business reorganisations can now be successfully completed in a tax-neural manner – subject to passing the minimum holding requirement test.

7.2.2 VAT concession The Finance Act also provides the same exemption for assets transferred in a relatedparty business reorganisation in relation to VAT. In view of the expanded definition of

“goods” under the Act, high-value goods, such as buildings, trademarks/tradenames, securities, etc., that would otherwise have been subjected to VAT at their transfer value, will now enjoy tax-exemption, subjectto passing the minimum holding requirement test.

7.3 Definition for recognised group of companies The Finance Act provides a definition for recognised group of companies to mean “a group of companies as prescribed under the relevant accounting standard”.

This definition clarifies the category of companies that may enjoy the exemptions contained in the CITA, VATA and CGTA. 7.4 Conclusion The changes contained in the Finance Act relating to related party reorganisation will impact the way business restructurings are consummated going forward.

Investors would therefore need to pay attention to the impact of these changes on their acquisition strategy.

Ajibola Olomola and Nike James, Partners

7.1 Introduction of a minimum holding period requirement The Finance Act introduces a “minimum holding requirement” test for related party group restructuring. Under the revised provisions of the CITA, VATA, CGTA, a company would be recognised as part of a group if such company has been a member of such group for a minimum 365 days prior to the date of the reorganisation. The Finance Act also specifies that any exemption provided shall be withdrawn where the acquiring company fails to hold the underlying assets transferred for less than 365 days after the date of the transaction.

The implication of the above is that short term group relationships created for the purpose of enjoying the tax concessions www.businessday.ng

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Friday 24 January 2020

BUSINESS DAY

CHAPTER 8

Impact on the Digital Economy

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echnological changes are constantly shaping business relationships and organizations have continued to refine their business models to keep up with digital innovations.

However, tax has not kept pace with the digital revolution and collective attempts are just being made globally to catch up with the fastchanging pace of the digital economy.

According to the Organisation for Economic Cooperation and Development (OECD)’s Action 1 on preventing Base Erosion and Profit Shifting (BEPS, digital economy is characterized by massive use of data, unparallel reliance on intangibles, difficulty in determining the jurisdiction in which value creation occurred, little or no physical presence required for value creation or service delivery, etc.

To address the tax challenges of the digital economy, the OECD, through its BEPS Inclusive Framework, has proposed the following approaches for allocation of taxing rights and nexus rules, for consideration by its members: a. User Contribution – which allocates taxing rights by focusing on user base for digital services, data and content generation in a highly digitized business. b. Marketing Intangibles – this has a broader application by focusing on aspects of commercial exploitation of a product or service, and includes trademarks, customer list, proprietary market, etc. c. Significant Economic Presence – this allocates taxing rights based on evidence of a combination of factors that create purposeful and sustained interaction with the economic life of a jurisdiction through digital means.

However, the approaches are still being debated, and OECD has up till December 2020 to conclude its work on the new architecture for corporate income tax.

Regarding the applicability of VAT to digital/ electronic transactions, Nigerian courts have before now been tasked to fill the gap in extant Nigerian tax legislation by ruling (such as in Vodacom Business Nigeria Limited vs FIRS; Appeal no. CA/L/556/2018) that such transactions are liable to VAT. Therefore, the legislative intervention by the Finance Act to address the uncertainties around taxation of digital economy in Nigeria is a welcome development that brings clarity to this area of Nigerian tax laws.

8.1 Establishment of Digital Permanent Establishment for Companies Income Tax The Finance Act introduces new provisions under the CITA aimed at, among other things, capturing the digital economy by adopting “significant economic presence” (SEP to affix the affected companies with a fixed base in Nigeria.

Prior to the Finance Act, Section 13 of the CITA subjected a Nonresident Company (NRC to tax in Nigeria only if such company had a fixed base in Nigeria and the taxable profit was the profit attributable to that fixed base.

A fixed base may be created by the physical presence of an NRC’s employees in Nigeria, an arrangement with a dependent agent who executes transactions on behalf of the NRC in Nigeria, the execution of a single contract for surveys, deliveries, installations or construction by the NRC in Nigeria, or existence of an artificial or fictious transaction involving related parties in Nigeria. Hence, the nexus for taxing profits derived by a foreign company in Nigeria is based on physical presence in Nigeria.

Accordingly, the profits derived by nonresident digital businesses from online activities, such as advertising, movie streaming, online gaming stores, e-commerce, etc., from their users/subscribers in Nigeria were outside Nigeria’s

tax net. The direct consequence of this was tax revenue leakage for the Nigerian Government.

To address the challenges of taxation of the digital economy, the Finance Act introduces SEP to create a nexus for taxing profits derived

by NRCs from digital operation in Nigeria. The amendments provide that the “profits of a company other than a Nigerian company from any trade or business shall be deemed to be derived from Nigeria if it transmits, emits or receives signals, sounds, messages, images or data of any kind from cable, radio, electromagnetic systems or any other electronic or wireless apparatus to Nigeria in respect of any activity, including electronic commerce, application store, high frequency trading, electronic data storage, online adverts, participative network platform, online payments and so on, to the extent that the company has significant economic presence in Nigeria and profit can be attributable to such activity.”

The implication of this amendment is that affected NRCs in e-commerce, filming, computing, ride-hailing, media, etc., who previously had no fixed base in Nigeria under the conventional rules, and no Nigerian tax obligations, will be liable to Nigerian income tax provided they meet the SEP threshold.

Also, such NRCs may be required to register for taxes and file income tax returns in Nigeria in line with Section 55 of CITA. The Finance Act vests the Honourable Minister of Finance (MoF) with the power to issue an Order on SEP. On this basis, it is expected that the tax regime for the digital economy introduced by the Finance Act will only become effective after the Order has been issued. As this is a matter of global importance, it is expected that the MoF will leverage guidelines provided

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by the OECD’s BEPS Action Point 1 in determining what constitutes SEP for the purpose of an NRC deriving digital income from Nigeria. According to the OECD guidelines, SEP principle allocates taxing rights based on evidence of a combination of factors that create purposeful and sustained interaction with the economic life of a jurisdiction via digital means. The factors include revenue generated on a sustained basis, existence of a user base, maintenance of website in a local language, volume of digital content generated from the jurisdiction, etc.

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Conclusion

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mendment of tax laws during annual budgetary process through the Finance Act is a laudable development that will to implement several important longawaited changes to the Nigerian taxation framework. The Finance Act would stimulate economic activities and bolster investor confidence, provide the long overdue clarity on hitherto controversial tax issues and create an opportunity for raising the much-needed tax revenue in a more efficient and equitable manner that encourages economic growth and development.

One of the more interesting expectations from the Finance Act is its positive impact on SMEs in Nigeria. In our view, the incentives provided to the SME sector are appropriate considering

8.2 Introduction of Place of Supply rules for VAT There had been uncertainties in the application of the provisions of the VATA to cross border services.

For instance, while the extant VATA contains definitions of “exported services” and “imported services”, it does not have provisions relating to the “place of supply”. This has led to civil suits between taxpayers and the tax authority on whether the Nigerian VAT Act is based on the “origin principle” or the “destination principle”.

The origin principle holds that goods and services are liable to VAT in the jurisdiction where value is created (i.e., where goods are produced and services are rendered), however, under the destination principle VAT is chargeable in the jurisdiction where goods and services are consumed.

The Finance Act seeks to resolve this issue by introducing “place of supply” rules in the definition of “services” and “exported services” and also adopts the destination principle which aligns with the OECD’s VAT/Goods and Services Tax international tax principles. From the effective date of the Finance Act, services received by a person resident in Nigeria will be chargeable to VAT, regardless of the location of the supplier.

The Nigerian recipient of a VATable service provided by an NRC will also be required to self-account for the VAT where the NRC has not included VAT in its invoice.

8.3 Conclusion The amendments aimed at taxation of the digital economy in Nigeria aligns with global trends and provide more certainty on liability of cross-border transactions to VAT in Nigeria.

The anticipated significant impact of the amendments on the affected businesses makes it necessary for them to review their commercial arrangements for the purpose of compliance or restructuring.

Wole Obayomi Partner

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that the National Bureau of Statistics data shows SMEs as employing about 84% of Nigeria’s labour force, whilst contributing about 50% of the number of industrial jobs. The sector has been variously described as the engine room for Nigeria’s development and industrialization and accounts for about 48% of GDP. Granting tax concessions provides them with a significant reduction in reporting complexities and frees them up to deploy additional capital into their business. These palliatives will result in greater employment opportunities across board whilst allowing the tax administration focus its additional resources towards harnessing tax revenue from the sectors of the economy that have the largest revenue footprints.

It may also be the right time for companies to re-imagine their tax function to ensure that it is sustainable into the future through the right blend of efficiency and effectiveness in delivering tax planning, compliance management and resource utilisation.

Therefore, a tax function review/workshop, to validate the “fit for purpose” test and determine improvements required, may be essential. The time to act is now!

Concluded

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Friday 24 January 2020

BUSINESS DAY

HEALTH BUSINESS&LIFE Experts stress on HPV screenings, vaccinations to reduce cervical cancer in Nigeria ANTHONIA OBOKOH

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e d i c a l e xperts have devoted January to cervical health awareness campaigns with an emphasis on the use the Pap Smears to detect abnormal, pre-cancerous cells and the presence of Human Papillomavirus (HPV) coupled with regular vaccination to prevent cancer.

These experts also identified ignorance, misconceptions and women’s poor response to Pap Smear – the test is done to know if they are at risk of cervical cancer.

The World Health Organisation (WHO) estimated that annually, about 14,089 new cases of cervical cancer is diagnosed in Nigeria, despite the fact that this is a disease that can be prevented by regular screening.

“Cervical cancer is the second commonest cancer in women after breast cancer, but it kills more than breast cancer,” said Jide Akeredolu, a medical practitioner and district governor, Rotary International District of 9110. “We know that from the World Health Organisation (WHO) statistics it kills 26 women in Nigeria every day and that is a troubling statistic, meaning that a woman dies of cervical cancer in Nigeria every 5 minutes.”

Akeredolu explained that cervical cancer is a unique form of cancer in the sense that a proper vaccination with the right vaccines against the virus will prevent girls from having cancer in their lifetime, unlike other cancers that do not have vaccines.

Meanwhile, the HPV in-

fection is a primary cause of cervical cancer along with types of cancer that affect both women and men. Approximately 8 out of 10 people will get an HPV infection in their lifetime.

One of the easiest ways to prevent HPV from developing into cancer is through vaccination. The HPV vaccine has been shown to be 90 percent effective in preventing cancers caused by HPV. Cervical cancer originates from uterine cervix and the neck of the womb, which is located at the lower end of the uterus extending into the upper part of the vagina.

In later stages, symptoms include heavy vaginal bleeding or discharge (more than usual), bleeding after sex, between periods or after a pelvic exam, pain during sex or urination.

In Nigeria, the absence of well-coordinated national screening programmes has significantly contributed to the late presentation of most cervical cancer.

Runcie Chidebe, executive director, Project PINK BLUE, a health and psychological trust centre in Abuja said that some women are

at higher risk because of factors such as having the HPV, not getting screened, smoking, multiple sex partners and age.

“The high mortality of the disease in Nigeria is due to late diagnosis, lack of awareness, low utilisation of screening services, lack of knowledge and suggestive symptoms.

“There is no systematic screenings program in Nigeria. What we have is sporadic screenings, where non-governmental organisations (NGOs) organise here and there.

“There is a need for the Federal Government to mandate that all Public Health Centre (PHC) through the State Levels to ensure that once a woman comes into any PHC, she must go for cervical cancer screening like Visual Inspection with Acetic Acid,” Chidebe said.

Ifeoma Okoye a radiologist at University of Nigeria Teaching Hospital (UNTH) and founder of Breast Without Spot said that late presentation of cervical and other cancers will continue to increase in Nigeria, unless

the country does something more proactive than it has been doing in the past.

According to her, the major drivers of the high morbidity are fear, reluctance to accept a fee for screening and the unaffordable medical bills associated with late presentation.

“We urge the public to be cancer conscious, know the causes and risk factors so that appropriate precautions can be taken to modify or avoid them. In addition to preventing and reducing the risk of cancer, individuals should refrain from smoking and drinking alcohol, be physically active, and have a balanced diet,” Okoye said.

She stated that fear fuels the wrong perception about cancer and can only be buried when the country can change the narrative through improving early detection, increasing opportunities for a free screening, and assisting indigent patients to cope with their medical bills. These interventions, according to her will improve survival statistics.

Habeebu Muhammad, head of the Department of Oncology at Lagos University Teaching Hospital (LUTH) said that most women in Nigeria lack the knowledge of how and why they need to do Pap smear test. There is poor response to Pap smear in the country,” “There is a whole lot of fear factor in our country because most people do not allow screening due to their religious beliefs.

“It is better to come for a check-up because early detection increases the chances of survival and there is so much that can be done to prevent or cure it,” Muhammad advised.

Eye diseases comparatively higher in Nigeria due to poverty, ignorance - experts GODSGIFT ONYEDINEFU, Abuja

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ome medical experts have claimed that the prevalence of eye diseases, particularly glaucoma and cataract is higher in Nigeria than in other countries across the world.

According to these experts the rising prevalence is due to ignorance, poor access and unavailability of eye care services and the high cost of treatment most patients cannot afford.

Deepak Kumar, a consultant ophthalmologist at the Tulsi Chanrai Foundation Eye Hospital, says this is most common in teenagers and patients not older than 10, which is rare in other countries. He says higher numbers of patients with these diseases are in need of surgery and warn that the diseases when not diagnosed early and treated result in blindness.

“Glaucoma prevalence in Nigeria is more than what we see in other countries. In other parts of the world, like in India, we see a very rare case of a patient with glaucoma below the age of 30 years, but in Nigeria, very frequently we see a patient at the age of 10 and 15 years having glaucoma,” Kumar states at a press meeting in Abuja.

The causes, according to Kumar, are the late diagnosis, poor understanding and awareness of the diseases among the populace and the high cost of medication. “They cannot afford it some start but cannot continue throughout their whole life,” he says.

While noting the diseases cannot be prevented, the ophthalmologist advised that Nigerians go for regular eye screening especially those who are prone to it, which

includes diabetic patients and those with a family history of glaucoma and cataract; so that the disease can be detected early before it becomes complicated.

However, Kannan Narayanan, director at the eye foundation said due to the huge gap in accessing affordable eye care services in Nigeria, Tulsi Chanrai Foundation Eye Hospital was built with a key target to reach the indigent patients in Nigeria. He said the hospital which was formally inaugurated by President Muhammadu Buhari on 15th January 2019 has reached 34,000 persons.

The director added that the speciality eye hospital has also performed more than 700 highly subsidized eye surgeries, treated more than 20,000 outpatients and conducted 96 rural eye camps where it screened no fewer than 14,000 persons during its one year of existence.

Narayanan said the objective of the hospital is to offer services at a subsidized cost to those who can pay and offer services absolutely free to the poor. He said the subsidized tariff from those who pay are used to fund services for the poor.

“We conduct surgeries completely free for the poor, provide life transforming services and we do it with the kindness of heart. It is free from their doorstep back to their doorstep, we pick them up, accomodate them, provide them with good food, give them the medicine and take them back.

30 days after the surgery we go back for a review.

“Services we give to the poor is exactly the same for the paying patient there is no distinction and the feedback has been very encouraging”, he said.

Senate maps out strategies to address medical tourism SIKIRAT SHEHU, Ilorin

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he chairman of the Senate Committee on Health, Ibrahim Yahaya Oloriegbe, has disclosed that the ninth National Assembly has mapped out strategies to discourage medical tourism abroad with the resuscitation of specialised centres in federal tertiary hospitals.

Oloriegbe, equally revealed that a minimum of one centre would also be identified and designated as the centre of excellence in each of the nation’s geopolitical zones to enable Nigerians undergo treatment in the country, thereby, reducing the quest for treatment in foreign countries.

He spoke recently on the side-lines of a town hall meeting he held with the people of Kwara Central

Senatorial District where he gave an account of his stewardship in almost seven months in the Upper Chamber of the National Assembly.

Oloriegbe had while explaining that some Nigerians travel abroad for treatment due to lack of information on the availability of manpower and equipment needed in local Hospitals informed that cancer fund had been created with the 2020 budget, as he even pointed out that one of the issues responsible for treatment abroad was the availability of certain specialised equipment.

He says the Senate had agreed with stakeholders to establish a database to link all hospitals with media broadcast to keep Nigerians abreast of what is available.

The lawmaker, however, www.businessday.ng

posited that brain drain in the medical profession was also being tackled with the provision of fund for Residency Training Programme, adding that talks are ongoing with the Federal Ministry of Health to make available incentives for medical practitioners in the country.

“Medical tourism is a major issue we considered in the 2020 budget.

As the Chairman Health Committee, we discussed extensively on how we can reduce it to the barest minimum; we engaged stakeholders including the Federal Ministry of Health and heads of federal tertiary hospitals.

“Of course, there are many reasons why people go abroad for treatment.

There are those we cannot prevent, those who have

the resources. They are not going because of lack of manpower or services here; they are going because they just believe they want the best hotels and Nigerians are those treating them.

“What we want to do is to identify a minimum of at least one centre per geopolitical zones that will be designated centre of excellence to treat what makes Nigerians go out.

Part of the main issue is the availability of certain specialised equipment and we have used the 2020 budget to create cancer fund.

“We have also looked at the budget of various teaching hospitals and we identified some hospitals where we have allocated resources to make them do better. National Hospital is one of such. If you looked at the 2020 budget, it didn’t

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come from the executive; it was our initiative, to put certain resources in the national hospital for a certain area of cancer treatment.

“We looked at the University of Benin Teaching Hospital; it has a Centre for Bone marrow Transplantation, which has been abandoned for many years. We put resources for this. There is an Accident and Emergency at the University of Abuja Teaching Hospital, Gwagwalada, which the previous government had done concession. We said they should recover it and we put resources for this to be able to address that.

“We identified that we do have some manpower that is not even known.

Some people go out of this country due to the ignorance of the availability of manpower and equip@Businessdayng

ment to manage that. So, we agreed to establish a database that will be linked to all hospitals and then there will also be a media broadcast to enable Nigerians to be aware of what is available.

We are really working hard to do that.

“Secondly, the issue of Nigerian doctors or health professionals going abroad, we were able to address this through the provision of fund for Residency Training Programme, and we are also discussing with the Ministry of Health on how to create certain incentives that will enable Nigerian professionals to stay in Nigeria,” Oloriegbe stated.

The legislator noted that the town hall meeting was to serve as a feedback mechanism for his constituents and to also get their inputs on his representation.

Friday 24 January 2020

BUSINESS DAY

23

HEALTH BUSINESS&LIFE State advocacy groups tasked on family planning, sustainability in Nigeria RASQAK AYINLA

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arious Advocacy Working Groups on family planning have been told to evolve strategies on resource mobilization and prudent fund management in order to sustain the increased health indices on Contraceptive Prevalence Rate (CPR) of states.

The new country director,

Pathfinder International, Nigeria, Amina Aminu Dorayi, a physician, gave the charge in Abuja at the opening ceremony of a five-day Resources Mobilization and Grant Proposal Writing workshop held for the Advocacy Working Groups in Ogun, Kwara and Plateau states.

Doroyi said that Pathfinder, among other development partners, are interested in the progress made through advocacy involvement which has

brought about reduction in maternal mortality rate as well as increase in uptake of family planning contraceptives and effective services.

She regarded the groups as essential link which have acquired necessary skills to assist states with multiplying effects on the country at large.

“A d v o c a c y Wo r k i n g Groups have been doing a lot and we want to appreciate your efforts, at the same time, build your capacities

on mobilizing resources and other important areas to ensure that states achieve more on maternal and child health to sustain activities on family planning and wellbeing of the people “she emphasized.

Participants at the workshop were of the opinion that the programme is apt and would help the larger house on the best global practice in accessing resources and proposal writing for the benefit of the states.

Advice to International travellers during disease outbreaks Executive Travel Health

Dr Ade Alakija Q-life Family Clinic

lifeadvisoryservices@outlook.com

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ith the ever- increasing rate of travels around the world, it has become relatively easy to transmit diseases from one part of the world to another. A typical example of this is the ongoing corona virus (2019nCoV ) outbreak. It was discovered in China, December 2019 in the city of Wuhan. It was found among group of people who has been exposed to animals at local market.

As at 21st January 2020, the number of cases of infection from this virus has increased to nearly 300 and there are sick people in at least five other countries. That includes the first case in the United States. This patient had recently travelled to Wuhan, China, the epi-centre of the outbreak, and returned to Seattle in the US on January 15. He tested positive for the corona virus (2019-nCoV) after being hospitalized with pneumonia on arrival in the US. It is reported he is presently doing well clinically. It is not known exactly the exact way the virus is spreading or how easy it is to catch it. But it is known to be a part of a large family of viruses called coronaviruses, which mostly infect mammals,

HBL TEAM

including bats. Coronaviruses attack the respiratory system, sometimes targeting the cells deep within the lungs. Only seven, including 2019-nCoV, SARS, and MERS, are known to be spread to humans. According to the Centre for Disease Control (CDC), human coronaviruses are most commonly passed via: the air through coughing and sneezing, close personal contact, including touching and shaking hands, touching an object or surface with the virus on it, then touching your mouth, nose, or eyes before washing your hands, fecal contamination (this is rarer).

So far, the main symptoms reported are fever followed by difficulty breathing. Chest X-rays have shown signs of pneumonia in both lungs. (Pneumonia is an infection in the lungs that can be caused by a variety of organisms which include bacteria, fungi, viruses, even parasites. The lungs’ air sacs become inflamed and fill up with fluid or pus instead of air.) Of the 298 infected with 2019-nCoV since it started, nearly 230 are being treated in the hospital.

Among them, around 60 cases are critically ill. Others who are sick have recovered or been sent home from the hospital. And six people have died.

How worried should the traveler be?

There are too many unknowns to say. We don’t know which animal carries this virus, how exactly it spreads, how easily it spreads among people, how deadly it is, or the range of symptoms it can cause. We don’t know how vulnerable the people who have

died were to pneumonia.

But many affected so far appear to be elderly with underlying health conditions, which would suggest this virus may not be a mass killer. Even so, the fact that cases are already turning up in so many countries merely few weeks after this outbreak was first declared could suggest we should brace ourselves for an escalation.

Tips for staying healthy during your trip This outbreak is no longer restricted to China.

Hence, the need to be on the alert. International travellers are main route of transmitting diseases across the borders. It is therefore important to take precautions.

The following general pieces of advice are applicable to respiratory tract infections including2019nCoV: You are advised to avoid close contact with people with who are sneezing and coughing. Stay at home if you are sick and do not let vulnerable people close to you. Encourage people with active symptoms to cover their mouth while coughing and sneezing. Encourage them to also wear face mask. Avoid touching your face with your unwashedhands. Do not hold rails in public places and remember to wash your hands with soap and water if you do.

While on board, open the vent over your seat which will help in reducing droplets transmission.

You can also preferably choose a window seat to limit contacts with other passengers who might have droplets infections. Ensure regular washing of the hands with soap and water

for at least 20 seconds. Do not hold the toilet knobs with your bare hands. You can hold it with tissue papers. Carry sanitizers with you. You can use it to clean your hands when water and soap are not readily available. Carry wipes to clean your arm rest and trays which are potential source of germs. Also limit contacts with other hard surfaces especially in the rest room. You can request for a change of seat if close to a patient who is actively coughing or sneezing. If you or any member of your family develop with fever with difficult breathing, see your physician immediately.

Remember! Limiting the spread of disease is everyone’s responsibility.

Ade Alakija, medical director Q-Life Family Clinic & Bukola Adeniyi, Consultant Family physician and travel medicine physician Q-Life Family Clinic.

UBTH set to establish Brachytherapy Centre for prostate cancer patients IDRIS UMAR MOMOH & CHURCHILL OKORO, BENIN

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ope beckons on prostate cancer patients as University of Benin Teaching (UBTH) and Federal Government plans to establish a brachytherapy centre for the treatment of the ailment.

A consultant Urologist at the University of Benin Teaching Hospital (UBTH), Emmanuel Osaigbovo gave the hint during an interview with BusinessDay in Benin City.

“Brachytherapy is the recent machine used to treat early prostate cancer. Unfortunately this facility is not found in Nigeria.

“Happily, plans are underway by the University of Benin Teaching Hospital (UBTH) in collaboration with the federal government to build a brachytherapy center at the hospital,” he said.

Osaigbovo said the establishment of the brachytherapy centre is part of efforts to reduce medical tourism in the treatment of prostate cancer

by Nigerians.

The immediate past chairman of Nigerian Medical Association (NMA), Edo state chapter lamented that lack of brachytherapy center in the country has made patients to seek medical treatment abroad.

The consultant who noted that Nigerians have spent billions of naira for the treatment of cancer outside the country, however called for the establishment of brachytherapy center across the six geo-political zones in the country.

“I want to urge governments at all level to provide special treatment centers for prostate cancer in each of the six geopolitical zones, offer loans as well as create an enabling environment for investors to venture into healthcare sector in the country”,he said.

The consultant who urged governments, health professionals and other relevant stakeholders to come together

to curb the menace of prostate cancer, however, enjoined governments to embark on aggressive awareness campaigns of prostate cancer like they did in Human Immunodeficiency Virus (HIV).

“By the time the level of awareness is high, it will be easier to propagate health practices and our health indices will increase,” he stated.

While lamenting late-presentation of prostate cancer to medical personnel by patients, he explained that only five out of 100 percent patients come early for detection.

“Healthcare practices in Nigeria are bad, people still don’t visit hospitals for normal checkup; they only go to the hospital when they have symptoms and by the time prostate cancer starts giving you symptoms, it has advanced.

“By the time they come late, we will not be able to cure the cancer but it doesn’t mean we can’t manage the cancer and take care of the person to live as he can and in those cases drugs called antiandrogens can be used to delay the growth of cancer.

“Late presentation of prostate cancer for diagnosis and treatment is a onerous challenge for medical experts”,he added.

He recommended a Prostate-Specific Antigen (PSA) test annually for patients between 40 years and above to know if the prostate is secreting too much of the PSA. “PSA is a blood test used to screen for prostate cancer, if the PSA level is high, then it may be a sign of prostate cancer The medical expert who expressed concern over the high cost of treatment, however, called for improved enrollment and coverage of patients with cancer under the health insurance scheme.

He identified ageing, family history, high fatty diet, cigarette smoking as risk factors of developing prostate cancer.

L-R:Ireti Akinola, National President, Society of Gynaecology and Obstetrics of Nigeria); Funmi Babington Ashaye(CEO, Risk Analysts Insurance Brokers); Abayomi Ajayi (MD, Nordica Fertility Centre); Abiodun Eke-Aluko, chairperson, Premier Specialist Medical Centre; Bomi Ogedengbe, former president, West African College of Surgeons; Folasade Ogunsola (deputy vice chancellor, University of Lagos; Adedeji Adekunle SAN (former director general, Nigerian Institute of Advanced Legal Studies; Bunmi Adeleye-Ogwuche (Project Coordinator, Abayomi Ajayi Physicians Mentoring Program, at the Inaugural meeting of mentors of the Dr Abayomi Ajayi Physicians Mentoring Program held in Lagos.

ANTHONIA OBOKOH / Reporters. Email: obokoh.anthonia@businessdayonline.com

I David Ogar, Graphics

24

Friday 24 January 2020

BUSINESS DAY

LEADINGWOMAN Reva Stryder, first African footwear brand to partner Azzedine Alaia in Italy Stories by KEMI AJUMOBI

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n 2014, Temitola Olanrewaju started her career as an Executive Trainee in Corporate Banking. As a relationship manager, she easily identified several industries that were disregarded or underdeveloped in Nigeria.

With an ardent passion but no prior experience, she was convinced that she could achieve her dreams of creating Nigeria’s First Female Footwear Luxury Brand.

Her goal is simple “to create a lifestyle footwear brand with unique designs that match the international standard of luxury yet extremely comfortable”.

With a clear vision but no finance, Temi spent the last months of 2016 studying footwear locally, creating a business plan and pitching her idea from one potential investor to another (while still working her day job at the bank).

Her request was rather herculean - Not only was she asking for funds to start the business, she was asking for funds to attend one of Italy’s finest footwear luxury academies.

Notwithstanding the several rejections, she persistently pitched her idea again for the ninth time and received a yes at age 24. She made her first step into the luxury footwear world by earning two professional degrees as a certified footwear designer and footwear pattern engineer at Arsutoria School of Design , the Milan based luxury footwear academy between 2017/18’.

Between 2018/19’, she achieved the complex task of convincing Azzedine Alaia’s foremost footwear manufacturer in Italy to produce for her new brand, without a third party agent. This same factory is currently home to luxury brands at the top of Haute Couture and Prêtà-Porter such as: Gianvito Rossi, Gucci, Azzedine Alaia, Versace, Cesare Paccioti, Midnight Zero – Zero, Tommy Hilfiger and Giambattista Valli to mention a few.

Reva Stryder is the first African footwear brand to successfully partner with the 45 year old factory for footwear production.

For her debut capsule collection, the goal was simple. She says “ I want to make everyday lifestyle shoes as

“take long decisive steps in a specific direction (movement).

After merging both words, the nature of the Reva Stryder woman was born.

The Reva Stryder woman (RVS) is a modern day captivating warrior who takes long decisive steps to achieve her goals; she has a purpose (a vision) and will stride to the ends of the earth to reach them.

Within a space of four months, the new brand is fast building its own client base of professional women such as Adaeze Udensi – ED, Titan Trust Bank, Lara Olaniran – CEO, Zone 4 Energy, Hon Toke Benson , Commissioner for Housing, Powede Awujo , elegant and breath-taking as red Obatoyinbo, MD, FBN Quest carpet shoes but still extremely com- funds to mention a few.

“My shoes are made exclufortable because you practically live sively for the woman who sets your whole day in them”. out each day to nurture the After three years of strategic works of her hands and surely planning and an impeccable exhas a clear definition of where ecution, Reva Stryder released she is headed.

They are made selected designs from her first colfor the woman tired of comlection in September 2019 called muting around with extra pair “Forever Reva”. of shoes and bearing the pain The Italian Made luxury female footwear brand is partially named of breaking into shoes.

This woman has a clear prefafter the designer, Rebecca. erence for quality and underHer name, Rebecca, originates stands that style and comfort from the Hebrew name “Revka” results in a proper body carwhich means a “captivating strong riage which in turn communiwarrior “, which is exactly how the cates her confidence.

With my designer captures the 21st Century perfect shoes, you’ll never walk Woman. “Stryder” comes from the alone. ” Temitola says. verb “to stride” which means to

Mary the lady welder, daring to tread the uncommon path presumed to be gender sensitive

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ary Alaba Oyewole is the fourth child out of five. She grew up in a small neighbourhood in Lagos with her Mom who she later lost two weeks after her Dad’s 15 year remembrance. Mary is left with her four siblings.

She became a welder at the age of 22. She was trained by Daewoo Nigeria Limited, which was sponsored

by Nigerian Content Development and Monitoring Board (NCDMB) in collaboration with SHELL in the year 2015. This gave her the opportunity to earn stipends from the training and welding skills for 16 months.

She developed passion for welding and paused schooling to concentrate on welding. After the training in 2017, she bagged her Diploma in Tube/Pipe (SMAW) Welding from International Institute of Welding (IIW).

Mary later went back to school (University of Benin) to complete her programme, B.Sc. in Computer Science in year 2018.

She went for the second phase of the training with Subsea 7 which was sponsored by NCDMB later in 2018.

She learnt more on Advanced Welding in the training school and she bagged an IIW Diploma in TIG Welding. She’s also certified in Orbital TIG Welding and some professional certifications that include American

Society for Non-Destructive Testing [ASNT, Level II {UT, PT, VT, RFI and MT}], Institution for Occupational Safety and Health (IOSH,Working Safely and Managing Safely) and T-BOSIET (Tropical-Basic Offshore Safety Induction and Emergency www.businessday.ng

Training).

During the training, she was opportuned to go for “On the Job Training” with Subsea 7 on their pipe-laying vessel (7 Antares), which gave her the privilege to work together with SERIMAX on ExxonMobil’s project

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as Barge Welder and Welder’s Mate on the welding stations until the end of her training in July 2019.

She is skilled in welding pipes and tubes on horizontal, vertical and overhead (2G, 5G and 6G) with both Stick and Tig welding process.

She can also operate Orbital TIG Welding machine. She can read and understand welding schematics and blueprints. The young lady is determined, devoted, experienced and focused.

“Sadly, my male counterparts always wonder what I am doing in the field and some even try to discourage me but I am too determined to be relegated. In this work, it is either you know it or you don’t.

It isn’t about your gender but your ability and I boldly dare to say I am capable” Mary says.

In wanting to contribute to her family in her own way since the demise of her parents, she has been consistent in working hard to earn a living. Asked what she hopes for and she says “I will like to take my welding skills and career to the highest level and later have my own company but for now, a good and well-paying job will certainly go a long way to ease the burden and responsibilities. I am not lazy, I am hardworking and proficient, I just really need a job. My determination @Businessdayng

made me to go ahead and learn it.

It is hard to stay focused with all the distractions around but I have chosen to use my hands and I can only hope for the best” says Mary.

Mary can be reached on both email (olaitan210@gmail.com) and phone number (0813 264 9131).

Friday 24 January 2020

Harvard Business Review

BUSINESS DAY

25

MANAGEMENTDIGEST

Managing the most expensive patients DR. ROBERT PEARL AND DR. PHILIP MADVIG A NEW PRIMARY CARE MODEL CAN LOWER COSTS AND IMPROVE OUTCOMES. hen corporate executives, health care leaders and policymakers discuss the challenge of curbing U.S. health care costs, the conversation invariably turns to the sickest 5% of the population, who consume 50% of health care spending. For a long time the hope has been that improving the efficiency and quality of their treatment would significantly reduce the $3.5 trillion that the United States lays out annually for health care. Over the past two decades this thinking has led employers, insurers and health systems to embrace expensive disease-management programs that, operating in parallel with patients’ primary care physicians, use registered nurses and social workers to monitor, coach and provide services to many people in the top 5%. While these programs do increase the quality of their care, our health system, Kaiser Permanente and nearly all others have found that they do not reduce net costs.

To learn why, KP started looking at internal studies of utilization and detailed information on care given its 4 million patients in Northern California, which had been captured by its electronic health record system. KP developed a new model for treating people with multiple but relatively manageable chronic diseases — focusing on both those who are currently in the top 5% and those who could end up there in the coming years if their medical problems worsen and their health deteriorates.

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THE THREE COHORTS When health care experts talk about the most expensive 5% of patients, they usually have in mind people suffering from chronic conditions. The aim of disease-management programs is to improve their health — and reduce medical costs — through better care and coaching. But what the experts don’t realize is that these people account for only a third of the most expensive 5% of patients and that the makeup of this cohort isn’t constant; it changes from year to year.

Another third of the top 5% are patients who experience a

onetime catastrophic health event: a major trauma, an extremely premature birth or a sudden life-threatening illness such as acute cancer. The care for this second cohort consumes about 35% of the total spent on the 5% in a single year.

But since most onetime events can’t be predicted, there’s little opportunity to achieve savings.

The final third of the 5% are people with medical conditions such as severe heart failure and chronic renal disease, who require expensive, ongoing treatment every year. Many were in the first cohort years before but deteriorated, and with few exceptions, little can be done to restore them to good health or avoid large future medical bills.

The people in this cohort also account for about 35% of the total dollars spent on the 5%.

The bottom line here is that the actual opportunity to reduce the costs of caring for the most expensive 5% of patients is much smaller than is appreciated. The only cohort whose costs can be significantly reduced is the first, but these people account for just 30% of all the money spent on the top 5%. And the fact that the people in this cohort change every year means that to be truly effective, cost-savings programs need to target patients who might end up in it too. That’s a huge group.

Because the rest are also at high risk of landing in this cohort the following year, a care program would have to include all 27.5 million to achieve maximum success. For conventional disease-management programs, the cost of this would be

wildly prohibitive. KP’s leveraged primary care model obviates that difficulty by integrating the support staff directly into the primary care doctor’s practice, using people who command lower pay than registered nurses and social workers do and by employing technology.

LEVERAGED PRIMARY CARE VS. DISEASE MANAGEMENT Disease-management companies typically organize nurses and social workers into teams that focus on just one disease, which means that patients with several chronic illnesses could be dealing with multiple teams. These interactions occur outside the primary care physician’s practice and often duplicate its work: Both the teams and the physicians monitor each patient’s laboratory results, medications and overall health. Most patients like the convenience of diseasemanagement programs, but the dollars the programs consume could be better used to address the needs of far more individuals.

KP’s model solves the problem of reaching a large population cost-effectively, by incorporating four components: — INTEGRATION WITH ONGOING PRIMARY CARE. This avoids the duplication of services. But doctors still get support with outreach, which allows them to leverage their expertise in the most efficient way possible.

— TECHNOLOGY. The model uses four types. One is a com-

prehensive EHR system that provides physicians up-to-date information on each patient’s condition, highlighting the need for additional treatments or testing. A second type is wearable devices that record data on blood pressure and weight.

A third is computer-generated voice and text messages that remind patients about preventive screenings. And a fourth is a smartphone video function that allows doctors to monitor patients after they leave the hospital, immediately address new medical problems and avoid readmissions.

— LOW-COST MEDICAL ASSISTANTS. At KP each primary care doctor is assigned a medical assistant. By communicating with the patient, reviewing information, readying it for the physician, relaying physician orders and arranging transportation through community services, medical assistants help physicians manage patients’ chronic diseases better — and at a small fraction of the cost of other approaches.

— PHARMACISTS. Added recently to the model, pharmacists can access laboratory data and, using protocols created by the physicians, make many of the medication changes needed, saving doctors even more time.

SUPERIOR OUTCOMES The KP approach — combined with other efforts to improve operational efficiency, maximize prevention and patient safety and utilize “centers of excellence” — has allowed us to reduce hospitalizations

for Medicare patients in California (where we own our own hospitals) to an average of 0.7 days per patient per year, which is half the national average. Before the model’s implementation, our rate was closer to 1.2 days per Medicare enrollee per year, or 85% of the national average. Improvements in prevention have also reduced KP’s mortality rates.

We believe that in the years ahead KP’s strategy of supporting primary care doctors with medical assistants who are armed with advanced information technology will save even more money. It can be applied to patients with any chronic health-threatening problem.

With the U.S. population aging, the incidence of chronic disease will continue to rise, driving up health care costs dramatically. The operational and capitated-payment approach used by KP offers a way to address this growing crisis.

Dr. Robert Pearl is the former CEO of the Permanente Medical Group, a physician organization, which, along with Kaiser Foundation Health Plan and Hospitals, is part of Kaiser Permanente. He is also a professor at Stanford University’s medical school and a lecturer at its business school. He is the author of “Mistreated: Why We Think We’re Getting Good Health Care and Why We’re Usually Wrong.” Dr. Philip Madvig is the former associate executive director of quality and hospital operations at the Permanente Medical Group.

26

Friday 24 January 2020

BUSINESS DAY

entertainment

Kesiena C. Obue; the playwright on the rise

drama.

She also tries to initiate change or lead a campaign with her works.

In Hertitude, she was querying the rationale for judging others, and asked the question, “Who made you are judge over others”?

“I wanted my play to be a mirror for the society. We are always free to judge or to condemn. What people are judging is not the same as what they do.

I wanted my people to come and see that since you do not have the morals you claim to have, so do not judge me because I am doing something you do not do or you are doing something I am not doing. So, we all see it differently”, she explains.

Another intrigue about the playwright is that she is a microbiologist turned playwright. “I was a microbiologist, but I went back to school to do film and theatre. After I finished from the University of Ibadan, I was already producing film in Ibadan”.

On what inspired her to study Theatre Arts, she confesses that she was born with it. “I remember when I was growing up, I have always been writing. I would use my school notes to write stories and my mother would scream. I used to have stories in my head that I used to tell my sister. I have a thing for stories. But it was in the university that I knew I had to do that. I was not feeling myself in science anymore. I knew during my NYSC, that I was going back to school.

“Thankfully, my parents understood, they did not understand at first but later they did. My father right now is my major sponsor for Hertitude. He brought the bulk of the money. We did not leave any stone unturned. The quality, the costumes, I am a perfectionist sort of. So, when I do a production, I touch everything. I collaborated with the National Theatre, Z-mirage and Moto media”, she explains.

She is grateful that she is not the only female theatre director and producer. She appreciates other fantastic directors such as Ikimi Douglas, Ifeoma Fafunwa, and most importantly, Bolanle Austen-Peters, CEO, Bolanle Asuten-Peters Productions (BAP), who saw her as a director and writer, and gave her the first break in the industry.

“I worked for Bolanle AustenPeters. When I started working for Terra Culture, I did not start as her executive assistant. I started as a writer before I became her executive assistant. I think she trusted me a lot, that is why we have a very good relationship”, she says.

With her successful output in the past years, fans and theatre lovers and even sponsors are expecting more enthralling plays and stories from her. In that regard, she is working on a feature film that will be produced and directed by her, among other undisclosed theatre projects this year. “We are looking at March/ April this year to release it. We are also looking at bringing back Hertitude once again on stage just in time for the Easter celebrations”, she concludes.

a bouquet of laughter from all angles.

Well, it is no surprise that the movie is much-awaited because of the names behind it. Funke Akindele is an experienced producer of eight movies, including the widely acclaimed Jenifa and The Return of Jenifa. She parlayed this success into the immensely popular television series Jenifa’s Diary, which became the most-watched family series in Nigeria. She also played a leading role in her directorial debut.

Of course, EbonyLife Films,

which produced movies such as; Fifty, The Wedding Party, The Wedding Party 2: Destination Dubai and Chief Daddy, also bankrolled the movie.

Funke Akindele said it was not just a realization of her dream, but also an adventure that has proven fruitful and helped to catapult her to her next level in the movie industry.

“I am grateful to have achieved this directorial debut and I appreciate all the support from everybody, the cast and crew members and especially EbonyLife Films”, she said.

OBINNA EMLEIKE

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f you were at the National Theatre Iganmu, Lagos over the festive holiday to see Hertitude, an enthralling stage play, you will appreciate the stellar performance by the cast for the 10 days the play staged.

Likewise, you will applaud the creative ingenuity of the writer and director of the drama because of the odd path or rather, the unthinkable storyline being followed.

The play is a smooth simmering homage around three young Nigerian female professionals and sisters forced into an uncomfortable reunion by the death of their mother. They come to play and ever so gingerly navigate the contours of their maturing lives under the glare of social media, Lagos fakery and glitz with a nasty underbelly.

Hertitude is fun but serious.

It offers a five-course meal of beauty, music, dance, technical pizzazz and real drama, while examining the past, challenging society’s view of the future, as well as, surprise and inspires the audience.

However, what makes Hertitude thick is the creative hand behind it. The bold new play by Kessavier Vanille Productions was written and directed by Kesiena C. Obue. She is one of the most engaging voices in contemporary Nigerian theater and film industry. She is truly a playwright on the rise judging by the many exciting plays she has written, directed or co-produced.

The intrigue is that Kesiena, who is the managing director of Kessavier Vanille Productions, is often behind the scene, while letting her works speak for her on every stage, production platform and screen they appear.

Having gained expertise in her career and passion, in 2009, she founded Kesservier Vanille Productions, an arts production company, which became the platform for her early artistic expressions and success.

For those who can easily re-

Kesiena C. Obue

call the fantastic excitement they had watching Nigerian musicals staged across the country and abroad, Kesiena has been part of almost every successful musical play in Nigeria, though from behind the scene.

The playwright on the rise has written successful musicals such as Wakaa the Musical and Fela and the Kalakuta Queens, while The Bling Lagosians is her most recent film credit.

She has also written, directed and produced three short films and other works for independent feature and documentary film projects, with two full length plays including; “Ivie” and “Hey Brother”, which are under review for publication.

Her creative ingenuity has seen her succeed in other art genres. The creative writer has also published a book “Move A Brain Muscle and Make History”, and written commissioned works for Cable Television.

Kesiena is truly a synergy of talent, good training and a resonant, inclusive worldview. Her voice as a woman and a writer is essential and fully representative of contemporary Nigerian life. She is poised to tap these for societal growth and development, navigating the complex, global cross-cultural challenges of our 21st century, where Africa is set to play a defining role.

She is an interesting person to meet. While encountering her at the National Theatre Iganmu, Lagos, last December during one of the showing days of Hertitude, her amiable personality and simplicity baffle.

Speaking on the new play, she says, “Hertitude is a bold move with a punch, a thumb up for legacy, theatrical beauty and professional pride. I hope it excited you”.

Of course, the stage play excited the audience with its fivecourse meal of beauty, music, dance, technical pizzazz and real

‘Your Excellency’ still thrills at the cinema OBINNA EMELIKE

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our Excellency, a directorial debut of Funke Akindele-Bello, is still worth watching after the festive thrills at the cinemas.

The movie tells the story of Chief Olalekan Ajadi, a billionaire businessman and failed presidential candidate, who is obsessed with Donald Trump.

Just when his campaign looks set to be another disaster, Ajadi is anointed by a major party and becomes a credible contender –

all through the power of social media.

As the political drama unfolds, it seems possible that even the most inept candidate, with little to offer voters except viral soundbites and amusing antics, can mount a serious challenge for the presidency It parades movie stars who really delivered on their roles. From Akin Lewis, Funke Akindele, Kemi ‘Lala’ Akindoju, Eku Edewor, Emmanuel ‘EmmaOhMaGod’, Alexx Ekubo, Deyemi Okanlawon, Ini Dima-Okojie, Chioma ‘Chigul’ Omeruah, Ikechukwu www.businessday.ng

Onunaku and Helen Paul, to others, the cast members will hold you spellbound with their hilarious antics.

However, Akin Lewis, who played Chief Olalekan Ajadi, the presidential aspirant, was in his element or was rather truly ‘Your Excellency’ in the movie.

As well, Funke Akindele, appears to be in fine comedic form as the other half of Akin Lewis while the other stars all combined to poke fun at Nigerian political class and society at large.

A media executive, who saw the set, described the movie as

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Friday 24 January 2020

Business etiquette

Janet Adetu

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was reflecting on the past year myself, I decided to go the whole nine yards and take complete stock of what went very well. I asked myself what could have been done much better and what did not go well in my opinion. My mindset took a totally new turn, I am now so excited about the new ideas I have and am motivated to look at anything to inspire me to excel. With this in mind my drive to lead and carry my team along has escalated to newer and greater heights. I feel that it is the way to enter the New Year with a better perspective, ideas, innovation and strategies that will challenge you to go the extra mile. No doubt you may not feel that way if things seem to be going on pretty well and you feel you are great in the space you are now. Things may be working just fine, however the future as they say is so unpredictable, also as we can see times are constantly changing.

This calls for one to be alert, on point and on the go, time waits for no one; our task today is to keep up with time.

In order for you to evolve in this new decade there is an important exercise that beckons for us all to do. This is the season to declutter, yes you need to declutter everything and now.

BUSINESS DAY

Declutter now kick start your declutter exercise; however you know best all those areas you need to declutter in your life, just take a leaf from my ideas.

Declutter your goals In life at the beginning of the year, it is expected that you sit back and set good life goals for yourself, that will set the tone for how you will maneuver work life balance, feel happy and accomplished. It is when your goals are too many, when they appear unachievable and unrealistic that procrastination first sets in and the goals become endless and never achieved. You may start by pruning down all your goals; start with dividing your goals into quarterly goals and limit to one or two major goals per quarter. It is those quarterly goals that are realistic and appear very achievable that can be dissected into smaller goals for ease and simplicity. Take out all those goals that are good, but long term dreams for now and keep them in a safe place for the future.

entertainment

Declutter your office space Your desk in the office is part of your office space, you may have accumulated a lot of unwanted papers all over hiding in drawers in file trays and on the table. Double check if they are still useful or simply discard and declutter your space. It is always refreshing to walk into a clean space in the New Year.

Psychologically you prepare your mind for new things, new ideas and you are motivated to kick start the new season on a good note. What was from the past keep it in the past and lay the foundation for a new beginning. Take away all files and store them in your cupboard or drawers create space for the old files and make way for the new stationaries, you will see that you feel much more prepared to take on new challenges in your new role.

‘ Things may be working just fine, however the future as they say is so unpredictable, also as we can see times are constantly changing

Declutter relationships As open ended as this may sound there will be relationships that

you have acquired that have been great, existing relationships that are still going on very well, acquaintances that have good potential and intimate relationships that are for a lifetime. You must not overlook the fact that some relationships did not go well, some friendships have taken a bad turn while others have become toxic. There is no harm identifying where you need to disassociate from relationships that are not adding value to your life. At times this may be hard core as it requires elements of exercising the art of forgiveness, kindness, consideration, discipline, calm and forward thinking. Declutter yourself from any relationship that is toxic and harmful to your state of mind. Declutter yourself from relationships that add no progress to your core values. In the process of decluttering it is a good idea to build relationships that will add valued progress to you, your calling, your career and your progress.

Declutter your home Finally in the entire exercise of decluttering you cannot forget to declutter your place of abode that is your home. Declutter rooms that you have wanted to tidy up for a while. Declutter your bedroom space by giving it a new face lift. This includes your kitchen, living areas, guest rooms. It may involve areas you can rearrange with no added cost involved. Look for areas that could do with renovation. You may add pictures, flowers, ornaments and other finishing touches to give that new sense of life. Endeavor to do something different, something new this season.

Declutter strategies Let me give you my strategies to

Share your experience with me and follow me @janetadetu

Lagos Theatre 2020 to host 120 events, 200 performers, 5 countries The 7th edition of the Lagos Theatre Festival is set to hold in multiple locations within the Lagos metropolis including; National Museum Lagos, African Artists Foundation, British Council, Alliance Française with Freedom Park, Broad Street, Lagos Island as the main festival hub among other venues.

This year’s festival will explore the theme, ‘Going out of Bounds’ and will feature over 120 events – drama, opera, dance, comedy, and spoken word and evening events of karaoke, comedy, music

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performances and disco.

There will be side attractions to include the famous LTF Leisure Market bringing together vendors providing food, art and crafts, and services for the pleasure of attendants (families included) of the festival.

There will also be learning opportunities with workshops and panel discussions included in festival activities for talent development.

Speaking recently at a press conference held at Freedom Park, Lagos, Olasupo Shasore (SAN),

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chairman of LTF Foundation, revealed that the festival is aimed at portraying Lagos as the home of artistic expressions.

This year’s edition, in partnership with the British Council, is aimed at exceeding bounds.

Bikiya Graham-Douglas, the festival executive director, shared that LTF remains focused on creating opportunities for upcoming performing artists through its sitespecific scope of presentations outside the traditional theatre.

“This festival will create platforms for many. We want local and international production companies to see the Lagos Theatre Festival as a hub that fosters exchange and collaborations while telling our stories and promoting our culture”, she said.

Lydia Idakula-Sobogun, the artistic director, added that the event will bring together shows and events by over 45 production companies from home and abroad selected specifically to suit this year’s theme “Going out of Bounds” and the selection was made from over three hundred entries for LTF2020.

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Ultimate Love: What to expect from Aunty

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ltimate Love, the new reality show from MultiChoice Nigeria, is set to hit DStv and GOtv screens on Sunday, February 9, 2020.

The show will see eight males and eight females placed in a secluded location known as the “Love Pad”, with hopes that they will find lifelong love. The contestants will have to compete and carry out different tasks and win the votes of the public.

The winning couple will not only have won each other’s hearts and the hearts of viewers but will also win an all-expense-paid traditional wedding ceremony and a fully furnished house – if they commit to getting married. If not, they still get to win a cash prize and other amazing prizes.

One of the unique features of the show is the presence of “Aunty”. Who is Aunty and what is she all about?

Just like Big Brother, Aunty will also be a prominent feature on the show but unlike the former who is recognized by his voice only, Aunty will be physically present in the Love Pad. Her job will be to help the singles find their perfect partner and provide them with counsel where necessary.

Aunty will also ensure that the contestants are occupied with loads of daily and weekly tasks and activities, all designed to help them pick @Businessdayng

the perfect partner and groom their new-found love.

Already, this pivotal character has left soon-to-be fans of the show guessing who would play the role of Aunty. Perhaps she will be revealed before the show or maybe not, but what is certain is that the Ultimate Love reality TV show promises to deliver a good dose of excitement, twists, surprises and suspense when it makes its debut on Sunday February 9th. This is no regular dating show, as it is a journey for 16 strangers who are willing to take a chance on love against the background of a reality TV show. There will be raw emotions, lovers’ spats and most importantly, expressions of love that will keep viewers glued to their screens.

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Friday 24 January 2020

BUSINESS DAY

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Friday 24 January 2020

BUSINESS DAY

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MADE in aba Nigerian farmers need support to overtake Indonesia on oil palm production — Aba-based industrialist GODFREY OFURUM, Aba

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igeria is capable o f ov e r t a k i n g Indonesia and Malaysia in palm oil production if the government supports real farmers in the countr y with funds and machinery, Celestine Odogwu, managing director, Winners United Farms and Agro Industries, has observed.

Odogwu, an Ababased industrialist, urged government agencies to inter view small and medium entrepreneurs (SMEs) to find out what their problems are and how they could partner them, noting that some SMEs were not interested in cash, but machines.

“Government can also remove those I call ‘political farmers’ and deal with real farmers. These real farmers are not hidden; they could be reached in our communities through chambers of commerce and farmers associations.

“Government should also be practical in their suppor t to far mers by removing all bottlenecks that have hampered small and medium entrepreneurs

from accessing loans, like collateral and business plans,” he further said, stressing that real farmers did not have these.

“Most farmers are excluded from government funds because of lack of business plan. In organised climes, they address issues practically. Government should identify these far mers, link them up with financial institutions, donor agencies and watch them. If they do this, things will be turned around,” he stated.

Odogwu, a Malaysiatrained farmer, explained that he came up with Wufag Palm Oil to prove to the world that Nigeria was capable of producing good quality palm oil.

“We are all l o oking at how we can help our economy. After getting NAFDAC registration, we also applied for certification from SON, which we also got.

“Everybody is talking about importation; nobody is talking about export. It is only export that can help the country because we would create jobs and generate foreign exchange, through export business.”

Celestine Odogwu, managing director, Winners United Farms and Agro Industries

He explained that Wufag brand of palm oil had 100 percent local content, noting that paucity of funds had made it difficult for the product to be in markets across the country.

“We cannot produce enough in commercial quantity. Even when you a p p ro a c h c o m m e rc i a l banks, they will see you as another criminal, whereas they can see what you are creating,” Odogwu said.

Speaking on the u n i q u e n e s s o f Wu f a g brand of palm oil, Odogwu explained that the product was well refined, contained no impurities and enhanced with vitamin E. He also stated that the moisture content of the product was 0.4 percent, while the British standard was 0.5 percent.

“Wufag is well purified.

The fatty acid is okay and again the impurity is well filtered, making it 100 percent pure palm oil, not mixed with colorant or preservative or any other thing.

“It has a shelf life of two years. It is also cholesterol free. The cholesterol in palm oil is good, it is heart friendly. And it has export quality. We have

few samples in the market, but due to paucity of funds, we have not been able to produce enough to meet demand,” he stated.

“At a point, we started looking for partners. We also wanted to partner with government to develop this product, to be in all markets locally and internationally,” he further said.

Odogwu, who had a sad experience in the hands of herdsmen and their cows that destroyed his oil palm plantation in Ogor Affa, in Udi Local Government Area of Enugu State, in 2016, said his plan was to have a large oil palm plantation, like is obtainable in Malaysia and Indonesia, while the processing plant stood on its own.

“I want to create an oil palm value chain, whereby the oil mill will be separate from the plantation, thereby creating jobs for so many people.

“When you have your own plantation, you can produce all year round. The only thing that you’ll battle with is infrastructure.”

H o w e v e r, s i n c e h i s plantation is not ready, Odogwu said he often bought oil palm seeds from the open market.

Aba products are as good as foreign counterparts, say Nigerians ODINAKA ANUDU & GBEMI FAMINU

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ome Nigerians say Aba leather and fabrics are good enough for them and can compete with their foreign counterparts.

Speaking with BusinessDay, some of the respondents applauded Aba entrepreneurs for their hard work and artistry, but urged them to improve their finishing.

O l o r o g u n To p e , a resident of Lagos, said he always bought Aba-made products and urged the entrepreneurs to produce more quality products.

“With the reputation of made-in-Nigeria products, Aba manufacturers actually produce good, quality and affordable products. With a little help and training, I expect Aba-made products to become sought-after globally,” Tope said.

Isaac Loveth, a trader in Lagos, said as a true

Nigerian he would always buy products from Aba because of the artistry of the entrepreneurs.

“Whatever the case is, Aba-made products will be my choice. They are always up to the task when we talk of durability, affordability and quality. Even some foreign products are not as good as our indigenous products here. From travel bags to shoes to handbags, Aba products are the best,” Loveth said.

Another respondent, Tobi Joseph, said he loved made-in-Aba products any time, any day.

“I love Aba-made products all the time. Most of my shoes are Aba-made and they have served their purpose well,” he said.

He said some of the products manufactured in Aba were exported abroad, rebranded and sent back into the market at high prices. “ Most Nig er ians do not appreciate our homemade products, which is wrong. Nigerians www.businessday.ng

need to appreciate Aba made products. This will encourage more products from the industry with all the specifications of foreign products,” he noted.

O s h i n o w o Ta i w o, a Lagos-based professional, said most Aba products were easy to get and could also be very beautiful.

“I even prefer them to

foreign products. Some believe that Aba- made products are inferior, but we also have foreign products that are sub-standard. It revolves around what you can afford. The major point is to get value for your money.

O nye ka I h e o ma, a n Enugu-based civil servant, said Aba products had good standards.

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@Businessdayng

“Even if you do not have much money, they will produce shoes or bags or trunk boxes that fit the amount you have. That is flexibility.”

However, some stressed the need for Aba artisans to improve the quality of their products, especially finishing.

Wunmi Alabi, a Lagosbased businessman, said he @Businessdayng

preferred foreign products because he believed they had better quality.

“I will not waste my money. Foreign products have better designs and innovations that always make the products loveable.

Most Aba products that I know have mediocre designs and unpalatable colours,” he said.

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Friday 24 January 2020

BUSINESS DAY

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

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

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

Tel: 01 277 3560

Relish the Bvlgari experience OBINNA EMELIKE

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or globetrotters and particularly lovers of exclusivity among them, the Bvlgari hotel brand is truly sought-after.

There are just few selected properties in major cosmopolitan cities and luxury resorts destinations across the world.

At each of the select properties (about five in the world) the luxury hospitality collection conveys the excitement of the Bvlgari brand, its timeless glamour and its heritage of magnificent Roman jeweller.

For now the Bvlgari experience is only felt in six properties in six destinations in the world; Milan, London, Bali, Beijing, Shanghai and Dubai. That lies the exclusivity of the brand.

If you want a taste of the Bvlgari brand, it is possible but with a cost. However, the magnificence and luxury of the brand exude more at Bvlgari Resort Dubai.

Opened in December 2017, Bvlgari Resort which is located in Dubai is a destination of choice for visitors seeking the solitude of an island escape, the residential feeling of a private house, yet situated just minutes from the heart of the vibrant city and its cultural attractions.

The 1.4 million-squarefoot property is a first-ofits-kind development for Bvlgari, both in terms of scale and magnitude. With its Mediterranean village charm, the complex features the Resort joined by six residential buildings of 173 seafacing apartments, 15 private mansions, a Beach Club, and Bvlgari’s first-ever Marina and Yacht Club.

It is all-round exclusivity at Bvlgari Resort Dubai, which most guests describe as an urban oasis. Developed

by Meraas, a leading Dubai-

based holding company, the hotel is exclusively situated on the manmade seahorse shaped island of Jumeira Bay, connected by a 300m bridge to central Dubai.

As with all the Bvlgari Hotels & Resorts, the Bvlgari Resort Dubai was designed by renowned Italian architectural firm Antonio Citterio Patricia Viel. Both the interiors and exteriors have been created with the same detail and precision of a Bvlgari jewel: pairing rare, raw materials according to colour, texture and feel, and sculpting them into objects of enduring beauty. Styled with illuminated gardens and pools and resembling a traditional seaside Italian village, it blends Mediterranean landscaping with the natural surroundings of the shores of the Arabian Gulf.

The resort includes 101 hotel rooms and suites and 20 hotel villas, all exquisitely furnished with the highest quality Italian luxury furniture brands such as Maxalto, Flos, Fexform and others, in an expression of the quality of ‘Made in Italy’. All rooms and suites have expansive views over the breathtaking Dubai skyline or the Arabian Gulf, with large balconies to truly soak up the magnificent scenery.

The size of the rooms makes the difference. From 55 to 540 square meters, the rooms offer enough space to frolic in comfort and tranquility.

B e yo n d t h e ma s s i v e room offerings, Bvlgari Resort Dubai is sought-after because of other exclusive offerings. One of them is the Bvlgari Spa. The 1,700 sqm BVLGARI Spa adds a further luxurious touch to the guest experience with eight treatment rooms and 25-metre indoor pool with full sea view through its magnificent floor to ceiling windows. Guests will enjoy the ultimate wellbeing experience, immersing in innowww.businessday.ng

vative treatments, therapies and grooming for both men and women, in addition to thermal and bathing experiences. Adjacent to the spa, a state-of-the-art fitness centre offers workshop gymnasium signature training method: a results-driven approach that redefines the very concept of well-being.

Corporate and business executives also enjoy exclusive leisure at the hotel, while being offered the best business aids and meeting venues, both at the Resort and the Yacht Club. From the Bvlgari Ballroom, Yacht Club Dubai, BVLGARI Pre-Function Garden, and BVLGARI Private Members Boardroom exclusive to the Yacht Club members, there is enough space to engage the executives.

There are great offerings for lovers of culinary delights.

Niko Romito, renowned Michelin starred Italian chef, awaits your visit to fete you with his well-curated blend of modern and classical Italian concepts. At Il Ristorante

by Niko Romito restaurant, guests marvel at the chef who interprets the exquisite flavours of Italy with modern simplicity.

You can always enjoy signature beverages at Il Bar, a quintessential steel and bronze oval bar, while soaking up the magical dusk on the outdoor terrace, with views sweeping across the Arabian Gulf.

As well, Hōseki, located on the top floors of the resort, offers one-of-a-kind Japanese culinary journey to discerning guests. At the restaurant, with only 9 seats overlooking the Dubai’s skyline, Chef Masahiro Sugiyama, who has over 157 years of family sushi traditions, offers a memorable gastronomic treat with the finest ingredients directly imported from Japan.

For casual dining experience, Il Café offers itself, while the Lobby Lounge of-

fers the residential atmosphere of a living room where guests can enjoy Italianthemed teas and coffees in a relaxed setting, surrounded by sumptuous soft furnishings, coffee table books and famous icons of Bvlgari’s rich heritage, a taste of modern Italian comfort.

Again, the resort’s beach club is a place to heighten your excitement. It features private villa cabanas, a children’s pool and Little Gems Kids’ Club while an outdoor pool and restaurant, La Spiaggia, is the perfect spot to wind down by day or night.

But a visit to the hotel without experiencing yacht club is not complete. Located at the Marina, the club is the world’s first Bvlgari Marina & Yacht Club and it is a unique destination which overlooks a 50-boat harbour and recreates the charm of a Mediterranean village in the heart of the Arabian Gulf.

You can also see La Limonaia, the secret lemontree garden. It offers guests a private country garden-style space with the quaintness of old Italy, while offering impressive views of the Dubai skyline.

Before you go, make sure to peep into the BVLGARI Il Cioccolato boutique for ‘chocolate gem’ creations, and La Galleria, the resort’s concept store, for gift items including the sophisticated Bvlgari Le Gemme perfume collection together with a large selection of items from top niche local and international designers, to complete the resort experience.

Saeed Shehata, director of sales, Bvlgari Resorts Dubai, who was in Lagos recently to launch the brand to discerning Nigerian travellers, awaits your visit. The hotel, according to him, is partnering with Emirates Airline and Emirates Holidays to encourage Nigerians to experience the highest class of hotel luxury in the world.

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

Tel: +234 9 4603900, +234 805 7522500

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

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

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BUSINESS DAY

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INTERVIEW ‘Organisations must develop their people to handle and cope with change’ In December 2019, the Chartered Institute of Personnel Management of Nigeria (CIPM), appointed Busola Alofe, as registrar/CEO. In this interview, she highlights the emerging and trending issues in human resource policy environment in Nigeria. Excerpts by SEYI JOHN SALAU Happy New Year: can you give us highlights of CIPM strategic objectives for 2020? believe that the strategic objectives of CIPM for 2020 will be continually reiterated by the current leadership team led by the President/Chairman of Council, Mr. Olawale Adediran, our long-term goal is to build the CIPM of our dream.

We will achieve this by driving a number of priority areas, and I am certain that implementing the initiative in our current strategic plans will move us in leaps and bounds towards achieving those objectives.

So our strategic objectives are derived from our current three-year plan which we updated in 2019 and it will take us to 2021. I was part of a team that developed it as a member of council. Key area of focus is stakeholders’ satisfaction.

Our stakeholders cut across different areas of our economy, even into Africa as I have mentioned previously, they need to be satisfied with our value proposition and how we contribute to meeting their needs and objectives. We want to understand what is important to them and through that create and tailor our services offering, so that they get what they need, when they need it and translate that into impacts in their organisations.

Secondly, operational excellence is very important. We will not be able to achieve stakeholders’ satisfaction or deliver prime experience if our own ways of working are not excellent. We need efficient and effective processes.

We need top quality people that will do the work of the institute. So we will be focusing on the work, the worker and the workplace and ensure that everything we do in delivering our operational activities creates and deliver prime experience. In addition, we have to focus on our brand presence; what is the CIPM? What do we do? What is the value preposition to our different stakeholders groups?

That has to be properly articulated, but importantly communicated so that they understand what is in it for them, by either becoming members of the CIPM or collaborating with us.

We are present in several States of Nigeria, not just in Lagos. Everywhere, we go the stamp of professional quality and excellence should be what is associated with the CIPM brand. So we are working on brand presence.

We are the apex regulatory institute for people management practices in Nigeria and Africa. So the effectiveness of our regulatory oversight duties are important, we hear stories from time to time of unsavoury practices in certain companies where workers are not treated well.

We need to help organisations understand their responsibilities towards their workers, what the laws allows and make sure that erring organisations and people are made to face the consequences of those actions. Where it is due to ignorance,

I

Busola Alofe

we have a mandate to ensure that people understand, so we will not just communicate these things, but also monitor to ensure that the overall people’s experience is positive.

As the new Chief Executive Officer of CIPM, what values are you bringing to the institute?

Nigeria has a number of challenges and there are things we are not quite happy about. But at the same time, we are a country of tremendous opportunity and talent, and that is something you will see in the way the CIPM is positioned going forward. I want to continue being part of our change journey as a country. As a country, we have rich and diverse culture. We have abundant resources and we can truly be a world leader. Fundamentally, the challenges we have as a country, boils to people and the leadership qualities, that will make our economy and the country work or not. Therefore as the CEO of CIPM, I have 28 years of extensive experience in the area of human resource management tied very strongly to the achievements of business objectives. As the CIPM forges ahead with our mission of being the foremost organisation of development and people management institute in Africa and the world; the expertise and knowledge of global best practices, and having worked in a number of Nigeria organisations, and being able to localize the practices www.businessday.ng

that will help in achieving competitive advantage as a country in respective to organisations in public and private sectors, and different industries across the country. We will see impact in those areas.

Experts say Nigeria unemployment rate is projected to trend around 32% in 2020. What are your thoughts and how is CIPM positioned to half this figure?

In my last role, before I left Shell I partnered with industrial training fund. I was a member of the committee that was setup there. The committee worked with UNIDO on some research into the skills gap in Nigeria, looking at both the demand and supply sides respectively. The CIPM also conducted a similar study, so there is opportunity to collaborate; so there is research and it is ongoing.

Different institutes and organisations are doing some similar works.

We will partner as much as it is visible when it comes to research. We have research and we have studies, however this needs to dovetail into action, especially the execution of recommendations from these studies. There is another opportunity for partnership with other organisations such as the industrial training fund and others, when it comes to the execution to close the gaps and address the so called unemployability issue.

In 2018, for the CIPM particularly, we launched an internship

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programme known as ready to market. This is a six intensive industrial scheme that was designed following the observations of a huge gap in the skills and readiness of graduates of tertiary institutions and freshly certified CIPM members who may not have prior work experience.

Participants in this ready to market programme are deployed to various organisations for six months of internship after ongoing three weeks of intensive experiential learning sessions with HR thought leaders. What we found in the various badges we have done since is that after these participants have gone through the programme, completed their internship time; many of them are getting jobs in these different organisations.

One of the answers to these unemployability challenge is the CIPM understanding where the root causes of the issues lay, which lead to gaps, in skills, knowledge, experience and expertise and whether we do it for ourselves through our ready to market programme or we choose to collaborate with other institutions to create programme and deploy programme that help to close the gap in the knowledge and skills of these graduates.

How would you rate HR practice in Nigeria?

I will say that the HR profession in Nigeria is evolving from what the CIPM is doing to partnership and support from the civil service; what the private sector organisations are doing, there is a very strong focus on professionalizing, professional excellence, on being mentioned when you talk about global best practice. But there is that top focus on quality and it is not going to be achieved overnight; so that is why I said it is a journey. The other thing I said is that people are our greatest assets indeed and I fully believe in that, but for people to perform, a number of other things must also be in place, so there is the question around the quality of leadership, there are questions around the availability of resources that people need to be able to deliver work. There are questions around what is happening in terms of a future focused world. We are in a knowledge economy where it is all about digital solutions. Technology is driving speed and change across the world. So organisations must be able to develop their people to handle and cope with change.

My view is that there is that desire in different sector of the economy and we are all partnering on this journey to excellence. It is a journey we have started and we will continue.

Thereseemtobeprevalentcasesof unfair treatment and unjust termination of employment in several sectors of the economy: what is your take?

My response to this question will come from our mandate as the apex regulatory body for the practice of people management in Nigeria. So we do have a responsibility to state @Businessdayng

abreast of how things are actually done, when it comes to labour practices. First, there is a perception that it is HR fault actually; however HR practitioners we end up having to clean the mess, after certain things have gone wrong. I actually believe that there is a big responsibility as well on the business managers, who oversees the workers directly. There is a saying that people actually join their managers/leaders, they don’t join the company. My experience of an organisation whether positive or negative is going to be largely my experience with my boss and because of the culture of the organisation. If there are unfair practices, we have to go back and find out the people leading in these organisations.

There is a huge responsibility for us to look into the area of leadership and development. Secondly, our regulatory accountability also means that we have view into labour laws and how they are being complied with and through our members who are leaders of HR in all these organisations, and members of HR departments in all these organisations.

We also have that accountability to pay attention to how people are being treated, whether it is in accordance with the laws or not. Whether the practices, and processes are in compliance or not and where they are not, there is need to step up and do something to change it. We are tending towards an area, where increasingly we step in to regulate and enforce, for instance, we have a mediation and resolution committee in the CIPM and we sit on cases that are brought to our attention particularly with the mindset of arbitration. But there are very serious cases we have had to bring to the attention of the National Industrial Court with a view to say that these things are happening, maybe in a particular sector, prevalently with certain type of organisations and the things are not in line with labour laws and something needs to be done.

So, that space is increasingly where we are going to step in.

What do organisations need to do to improve the landscape of work in line with your strategic objective for 2020?

There are a number of things.

First is the role of leadership. Leadership is a thread that holds everybody together in an organisation. Leadership has the power to mandate things to happen. So if leadership that focuses on connecting the strategic objectives of the organisation to the people strategic and make sure that the people have everything that they need. Then I am certain that such organisations will better achieve their business objectives. So focus on leadership, appointing the right leaders and developing them and making sure that they in turn are nurturing the workforce. Secondly, it is digital world so digitalisation has taken over everything that we do.

32

Friday 24 January 2020

BUSINESS DAY

INSIGHT Multichoice exclusive broadcast of live sports events:

Copyright and competition law perspectives

O

Toyosi Alabi talabi@olaniwunajayi.net

Jonathan Aluju jaluju@olaniwunajayi.net

Damola Adediji dadediji@olaniwunajayi.net

Background n January 11, 2020, the Federal Government issued a directive terminating the exclusive rights in life broadcast of sporting events in Nigeria. Communicating the directive via a press release, a media aide to the president said the Minister of Culture and Information, Alhaji Lai Mohammed (the “Minister”) specifically directed the Nigeria Broadcasting Corporation (NBC) to put in place a new regulation mandating broadcasters and exclusive licensees to share such exclusive rights with other broadcasters…”1 (the “Ministerial Directive”).

According to the Minister, “this regulation prevents the misuse of monopoly or market power or anti- competitive and unfair practices by a foreign or local broadcaster to suppress other local broadcasters in the television and radio markets”. The minister stressed that the halt in monopoly will enhance reach and maximise utilization by all broadcasters of premium content, in order to grow their platforms and investment in other content.

The ab ove dire ctive has brought to the fore a few issues indicative of the complex but complementary relationship between intellectual property (IP) rights (in this instance, copyright) and competition law.

The confluence of copyright and competition law through the prism of the ministerial directive Copyright laws grant and protect exclusive rights vested to incentivize creativity and investments expended on creative and innovative ventures. These rights are not just exclusive but are also for lengthy, though limited periods of time. For example, copyright in broadcasts lasts till the end of fifty years after the broadcast first took place.2 By contrast, competition law aims to facilitate the operation of competitive markets by putting checks on undertakings possessing market power (in some instances, an IP); it thereby seeks to ensure that these undertakings do not use their market power to exclude rivals and stifle competition. One may safely conclude www.businessday.ng

that both fields of law (copyright and competition) have divergent goals. For example, Multichoice has acquired the exclusive right to broadcast live matches and other major sporting event. As a result of this, it has the legal right to exploit same by excluding others, setting prices, and other licensing terms to other interested broadcasting outfits. A major area where friction occurs is when competition law is relied upon to limit the exclusivity of the copyright, as seen clearly from the Ministerial Directive mandating Multichoice to open its license to other broadcasters.

This exclusivity may cause it to increase its prices and lower its output than without the existence of such exclusive rights. Explicit from the Ministerial Directive is the need to curb excesses by firms with powers, conferred either by IP or contract, to exclude others.

The Minister reportedly argued “You cannot use your financial or whatever power to corner and hold on tight to a chunk of the market, preventing others from having access”.

Navigating the confluence of copyright and competition law Despite the seemingly divergent goals, the modern view is that copyright (and indeed all aspects of IP) and competition law have

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complementary or converging objectives, even though both fields of law deploy different approaches toward the advancement of these goals.3 Both fields of law are conceived to advance a system that creates incentives for dynamic competition for better and diversified processes and products by excluding competition by imitation and enhancing competition by substitution.4 The interplay between copyright (and other IP rights) and competition law is very important for the maintenance of a competitive and dynamic economic climate. Accordingly, copyright law and competition law should be conceived in the sense of promoting complementary goals, even though frictions may arise where both doctrines are applied in practice. To further buttress the complementary nature of the goals of copyright and competition law are the exceptions and other in-built mechanisms within the copyright regulation. These exceptions exist to ensure that exclusivity granted by copyright law is not abused in a manner that may stifle competition by substitution and incremental creativity or innovation.

Examples of these exceptions and internal mechanisms are: first sale doctrine, fair use, and idea-expression dichotomy. @Businessdayng

Conclusion Having highlighted the complementary objectives of competition law and copyright in line with modern perspective, the pertinent question then to be asked is how competition law rules should be applied in IP-intensive markets. It is not within the remit of this piece to answer this question. However, the answer appears to require a balancing approach that considers both pro and anti-competitive effects of the copyright on competition in the market.

Competition law authorities in advanced climes typically release guidelines that address the application of competition law rules in IP- intensive markets. It however remains to be seen the approach to be taken by the Federal Competition and Consumer Protection Commission through regulations and guidelines that may be issued under the Federal Competition and Consumer Protection Commission Act 2019 (FCCPA). An ancillary question, is whether in fact the Ministerial Directive can be validly situated within the provisions of the National Broadcasting Act 1992 (the NBC Act) and whether the NBC can validly exercise powers under the NBC Act to regulate competition in the broadcasting industry in the face of the all-embracing provisions of the FCCPA. - Courtesy Olaniwun Ajayi

Friday 24 January 2020

BUSINESS DAY

33

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 23 January 2020 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 367,893.09 10.35 2.48 282 20,393,728 UNITED BANK FOR AFRICA PLC 295,824.99 8.65 -1.14 274 26,596,467 ZENITH BANK PLC 690,722.86 22.00 -0.23 280 15,232,894 836 62,223,089 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 269,214.70 7.50 -1.33 153 6,271,954 153 6,271,954 989 68,495,043 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,585,023.16 127.00 -0.94 57 4,109,280 57 4,109,280 57 4,109,280 BUILDING MATERIALS DANGOTE CEMENT PLC 2,980,384.75 174.90 1.22 100 871,685 LAFARGE AFRICA PLC. 277,054.08 17.20 2.38 176 5,436,672 276 6,308,357 276 6,308,357 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 353,066.74 600.00 2.04 11 8,784,972 11 8,784,972 11 8,784,972 1,333 87,697,652 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 9,072.12 3.40 - 3 56,010 3 56,010 3 56,010 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 3 56,010 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 1 1,927,620 OKOMU OIL PALM PLC. 62,958.06 66.00 - 6 30,595 PRESCO PLC 52,250.00 52.25 - 6 12,830 13 1,971,045 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,500.00 4.25 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,680.00 0.56 - 4 188,400 4 188,400 17 2,159,445 DIVERSIFIED INDUSTRIES JOHN HOLT PLC. 217.92 0.56 - 3 2,200 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 43,899.83 1.08 4.85 62 9,363,242 U A C N PLC. 30,253.61 10.50 -0.47 59 3,934,293 124 13,299,735 124 13,299,735 BUILDING CONSTRUCTION ARBICO PLC. 469.26 3.16 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 26,400.00 20.00 - 16 519,195 165.00 6.60 - 0 0 ROADS NIG PLC. 16 519,195 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,598.40 1.00 - 1 23,300 1 23,300 17 542,495 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 7,046.55 0.90 -1.10 15 580,406 GOLDEN GUINEA BREW. PLC. 220.45 0.81 - 0 0 GUINNESS NIG PLC 66,149.56 30.20 - 18 52,626 INTERNATIONAL BREWERIES PLC. 77,362.76 9.00 - 21 67,723 NIGERIAN BREW. PLC. 415,838.91 52.00 - 30 286,340 84 987,095 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 175,800.00 14.65 - 63 1,096,119 92,873.60 22.65 - 43 793,414 FLOUR MILLS NIG. PLC. HONEYWELL FLOUR MILL PLC 8,564.61 1.08 -7.69 22 691,897 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 39,741.58 15.00 - 14 79,440 UNION DICON SALT PLC. 2,993.06 10.95 - 0 0 142 2,660,870 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 20,378.49 10.85 - 13 78,532 NESTLE NIGERIA PLC. 1,093,865.63 1,380.00 - 23 23,788 36 102,320 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 6,254.22 5.00 - 6 27,258 6 27,258 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 23,227.29 5.85 - 22 178,372 UNILEVER NIGERIA PLC. 111,740.36 19.45 8.06 32 380,530 54 558,902 322 4,336,445 BANKING ECOBANK TRANSNATIONAL INCORPORATED 139,456.59 7.60 -1.30 42 2,219,549 FIDELITY BANK PLC 66,642.03 2.30 4.55 66 6,446,130 GUARANTY TRUST BANK PLC. 944,740.85 32.10 -0.31 197 15,988,982 JAIZ BANK PLC 19,151.76 0.65 -4.41 31 3,336,056 STERLING BANK PLC. 56,429.22 1.96 3.16 69 4,241,075 UNION BANK NIG.PLC. 180,548.67 6.20 - 35 198,670 UNITY BANK PLC 8,065.64 0.69 - 22 614,991 WEMA BANK PLC. 27,387.87 0.71 -2.74 19 910,128 481 33,955,581 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,752.07 0.83 -5.68 14 498,500 AXAMANSARD INSURANCE PLC 22,365.00 2.13 - 4 19,800 CONSOLIDATED HALLMARK INSURANCE PLC 2,926.80 0.36 - 3 38,400 CORNERSTONE INSURANCE PLC 7,953.93 0.54 -3.57 16 832,720 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,904.09 0.26 - 3 46,478 LAW UNION AND ROCK INS. PLC. 2,835.58 0.66 - 1 15,000 LINKAGE ASSURANCE PLC 3,520.00 0.44 -8.33 11 647,500 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 3 2,339,500 NEM INSURANCE PLC 10,561.01 2.00 - 4 12,200 1,547.90 0.20 - 0 0 NIGER INSURANCE PLC PRESTIGE ASSURANCE PLC 2,906.58 0.54 - 1 49,170 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 2,272.89 0.20 - 4 1,020,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 1 4,500 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 4,683.96 0.35 -7.89 22 2,111,558 87 7,635,326 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,743.97 1.20 - 0 0 0 0

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,410.00 1.05 - 1 39,319 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 1 39,319 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 9,200.00 4.60 - 27 404,300 CUSTODIAN INVESTMENT PLC 34,997.09 5.95 - 8 125,365 DEAP CAPITAL MANAGEMENT & TRUST PLC 540.00 0.36 - 0 0 FCMB GROUP PLC. 39,605.42 2.00 2.56 74 23,435,270 ROYAL EXCHANGE PLC. 1,697.97 0.33 - 0 0 STANBIC IBTC HOLDINGS PLC 446,461.11 42.50 - 16 223,406 UNITED CAPITAL PLC 16,200.00 2.70 - 29 568,604 154 24,756,945 723 66,387,171 HEALTHCARE PROVIDERS EKOCORP PLC. 2,592.72 5.20 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 746.16 0.21 - 0 0 0 0 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 1 583 1 583 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 5,507.99 2.64 1.54 12 168,721 GLAXO SMITHKLINE CONSUMER NIG. PLC. 7,175.26 6.00 - 11 244,945 MAY & BAKER NIGERIA PLC. 3,743.76 2.17 - 8 78,045 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 968.57 0.51 - 2 1,126 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 0 0 PHARMA-DEKO PLC. 33 492,837 34 493,420 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 781.44 0.22 -4.35 2 200,000 2 200,000 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,206.13 0.41 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 394.20 3.65 - 5 130,100 TRIPPLE GEE AND COMPANY PLC. 287.07 0.58 - 2 13,515,456 7 13,645,556 PROCESSING SYSTEMS CHAMS PLC 1,549.70 0.33 6.45 20 3,489,063 E-TRANZACT INTERNATIONAL PLC 10,962.00 2.61 - 0 0 20 3,489,063 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 4 853 4 853 33 17,335,472 BUILDING MATERIALS BERGER PAINTS PLC 1,956.31 6.75 - 6 18,336 BUA CEMENT PLC 1,280,072.58 37.80 2.16 46 1,340,088 CAP PLC 19,250.00 27.50 10.00 26 106,307 MEYER PLC. 244.37 0.46 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 1 300 PREMIER PAINTS PLC. 1,156.20 9.40 - 1 11,159 80 1,476,190 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,192.12 2.03 - 0 0 CUTIX PLC. 2,518.69 1.43 - 7 164,162 7 164,162 PACKAGING/CONTAINERS BETA GLASS PLC. 31,948.21 63.90 - 5 10,000 GREIF NIGERIA PLC 388.02 9.10 - 0 0 5 10,000 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 92 1,650,352 CHEMICALS B.O.C. GASES PLC. 2,060.41 4.95 - 5 221,000 5 221,000 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 77.00 0.35 - 0 0 0 0 5 221,000 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 0 0 0 0 INTEGRATED OIL AND GAS SERVICES OANDO PLC 47,985.25 3.86 4.32 64 1,747,153 64 1,747,153 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 53,332.04 147.90 - 8 3,122 CONOIL PLC 13,879.04 20.00 - 29 34,317 ETERNA PLC. 4,108.06 3.15 - 9 9,480 FORTE OIL PLC. 26,831.11 20.60 - 17 96,311 4,663.23 15.30 - 24 5,663 MRS OIL NIGERIA PLC. TOTAL NIGERIA PLC. 39,724.05 117.00 - 8 5,202 95 154,095 159 1,901,248

ADVERTISING AFROMEDIA PLC 1,509.28 0.34 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 15,796.05 1.62 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 235.27 0.20 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,623.26 4.45 - 2 18,020 421.96 0.90 - 1 10,000 TRANS-NATIONWIDE EXPRESS PLC. 3 28,020 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 0 0 IKEJA HOTEL PLC 2,328.25 1.12 - 2 48,400 7,076.28 3.15 - 0 0 TOURIST COMPANY OF NIGERIA PLC. TRANSCORP HOTELS PLC 33,821.80 4.45 - 2 5,200 4 53,600 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,320.00 0.36 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 1 24,640 LEARN AFRICA PLC 933.45 1.21 - 2 7,500 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 539.26 1.25 - 5 40,256 8 72,396 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 745.97 0.45 - 0 0 0 0 SPECIALTY INTERLINKED TECHNOLOGIES PLC 688.80 2.91 - 0 0

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34

Friday 24 January 2020

BUSINESS DAY

sponsored by

An easy to make coconut fried rice recipe by chef Obito

T

hese days everywhere you go, you are guaranteed to see a variation of rice.

Whatever it’s on the streets, at a party, or any restaurant, rice is a staple food for many. To most of the world, rice connotes Asia and the vast agriculture of Far Eastern river deltas. Indeed, humanity’s second major crop is from Asia, and 90 percent of it—the main source of calories for 2.7 billion people—is grown there.

But rice is also African. A different species has been cultivated in West Africa for at least 1,500 years. Some West African countries have, since ancient times, been just as rice-oriented as any Asian ones.

The rice of Africa (Oryza glaberrima ) has a long and noteworthy history. It was selected and established in West Africa centuries before any organized expeditions could have introduced its Asian cousin (Oryza sativa). It probably arose in the flood basin of the central Niger and prehistoric Africans carried it westward to Senegal, southward to the Guinea coast, and eastward as far as Lake Chad. In these new homes, diligent people developed it further.

Rice to me brings back so many pleasant memories. It is the staple for almost every Senegalese dish and brings back memories of my father filling his plate to the fullest every evening. I remember at some point, our family changed the size of our dinner plates so that his rice portions would heavily reduce, for

looking for.

INGREDIENTS 1 Cup of Rice 2 cups of water 1 cup of coconut milk 1 teaspoon of crayfish 1 smoked fish (optional) ½ teaspoon of curry powder ½ cup of chicken stock (optional) 2 Maggi cubes Mixed vegetables Salt and pepper to taste

health reasons.

Nigeria is known for many great rice variations, but mostly famous for jollof rice. There are many types of rice that you can make when you want something a little different. There is fried rice, broken rice, and quinoa amongst other options.

On this edition of Culinary Delights learn how to make coconut rice courtesy of Chef Obi who is trained from the

Reddish Culinary School in Lagos. The culinary school seeks to groom, teach and equip individuals with the skills needed to create, replicate and revamp the finest cuisine from around the world.

For this recipe, you can use basmati rice to make coconut rice and if you don’t like your rice to be sticky, it is best you wash the rice directly under running water and cook with the coconut milk, this is one of the best way or trick in making coconut fried rice without it turning soggy (sticky). This easy coconut rice has an amazing aroma and appetizing. If you want to intensify the flavor of your coconut fried rice, its best you add the coconut water to the rice and cook apart from the coconut milk which is the main ingredient. Additionally, you can add a few tablespoons of coconut milk powder to the rice to give the dish that authentic coconut flavor which is exactly what you are

Chef Obito’s instructions 1. Wash rice with a little bit of salt ( this helps to wash the starch) after washing and water runs clear put rice in a bowl and let it soak ( saves per boiling time and makes the rice fluffy) 2. Place 1 cup of water and coconut milk in a saucepan add crayfish, salt, pepper, curry powder, Maggi cubes, place the sauce over high heat and bring to a boil 3. Next, add the washed rice into the boiling sauce cover and cook on medium heat until rice is soft 4. Add smoked fish, and mixed vegetables, cover and allow to simmer for 5-10mins 5. Stir then allow to steam for 5mins. Serve with any protein of your choice

Please try it at home and let us know how it goes! Follow us on Instagram, Twitter, and Facebook @bdculinarydelights and @maggi_nigeria and use the hashtags #magginigeria #myculinaryrecipe to show us your coconut fried rice and stand a chance to win some special prizes.

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

@lehlelalalumiere Lehle Balde works at BusinessDay in the department of Strategy Innovation and Partnerships, she is also a financial inclusion advocate and impact investing radio anchor.

Originally from Senegal Lehle has a passion for culinary experiences.

Follow @bdculinarydelights on Instagram.

CHEF

OBI OLUWATOBILOBA CHIOMA Contact: nstagram: @chef_obito @anybelly.ng

@maggi_nigeria

Friday 24 January 2020

BUSINESS DAY

35

CULINARY DELIGHTS

ILÉ EROS a polished casual restaurant that celebrates Nigerian cuisine

M

y appreciation of Chef Eros’ food started a few years ago, when I was first introduced to him through his bakery Cookie Jar. Cookie Jar sells pastries such as cakes, sandwiches and of course cookies. Tolu Erogbogbo, popularly known as Chef Eros is the founder and CEO of Cookie Jar Bakery, Executive Chef of Eros & Gourmet Foods and Founder and Executive Chef of one of the first chef-owned Gourmet Nigerian restaurant, a polished casual restaurant that celebrates Nigerian Cuisine. Often called “The Billionaires’ Chef”, has has cooked forDr. Mike Adenuga, Founder and Chairman of Globacom and Conoil, and Alhaji Aliko Dangote, Founder and Chairman of the Dangote Group. He has also had the opportunity to serve President Emmanuel Macron of France, Reverend TD Jakes, Lauryn Hill and many others.

Dotted in the heart of Lekki Phase I on 14 Kafayat Abdulrazak Street off Fola Osibo, the space is characterized by a Modern-African theme. As you walk through the doors, you are welcomed into an Afro-chic, intimate space which is reminiscent of a home, inspired by the notion of a well-traveled Nigerian family of old - passionate about culture, art, music, and food. ILÉ EROS is a polished casual restaurant that celebrates Nigerian Cuisine. The menu takes a whole new approach to Nigerian food applying Haute cooking techniques and Avant Guard presentation to deliver recipes that are tasty, filling and mind-blowing. A destination worthy experience which tells a story of beautiful designs, trendy flavors, and diverse menu options, iLÉ ÉROS is a true touch of Nigerian luxury.

As part of my December activities, I had it in mind to check out the restaurant and was delighted to hear that they were having an official opening. One thing about Chef Eros’ food, is that it is always flavourful and mouth-watering, so I was more than excited to go and glad to support his new entrepre-

@lehlelalalumiere Lehle Balde works at BusinessDay in the department of Strategy Innovation and Partnerships, she is also a financial inclusion advocate and impact investing radio anchor. had the Roselle mocktail which Originally from Senegal Lehle has is aHomemade Zobo, Lime Juice, passion for culinary experiences.

Tangerine, Ginger.

The restaurant Follow @bdculinarydelights on uses a slow-cooked technique that Instagram. infuses maximum flavor in each bite which makes for a more enjoyable culinary experience. This is what Seyi had to say.” The space is cozy, and well decorated and I enjoyed the food and creativity of the drinks. Well done Eros” I would definitely recommend this restaurant for a 5-course meal, a catch up with friends or even a games night. I definitely will be back.

GUEST

neurial venture. On this occasion, I went with my friend Seyi Shay. She is a talented singer and songwriter.

What’s your favourite Seyi Shay song?

Mine has to be gimme love. Seyi is not only a musical superstar she is

also an actress and overall a hardworking person who also loves food. As we arrived at the venue we were immediately transported into a decor reminiscent of a 90’s African home, vintage pots, and pans and traditional accessories.

The space is modern and chic with heavy accents of Africa and more specifically Nigeria.

We came for an opening so, the space was filled to capacity with food lovers and supporters eating, drinking and having a merry time. As I mentioned above I find Chef Eros’ food is always flavorfilled and this time around was no different. We had the BBQ RIBS & MASH which is Slow-Cooked BBQ Beef Ribs With Spicy Mashed Potatoe, Ewa Agoyin which is honey Beans, Agoyin Sauce, Crispy Beef, Plantain Fries. To drink I

SEYI SHAY Instagram @iamseyishay

Total N 23,000

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

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@Businessdayng

Contact

0700 453 3767‬

36

Friday 24 January 2020

BUSINESS DAY

Sports

2022 World Cup Qualifiers: Nigeria gets favorurable draw Anthony Nlebem

N

igeria have b e e n d r aw n to square up against Cape Verde, Central African Republic (CAR) and Liberia in the qualifying race for the 2022 FIFA World Cup finals in Qater.

Nigeria first game comes up against the Lone Star of Liberia, who reached this stage after shoving neighbours Sierra Leone in the first round in October.

African champions, Algeria head Group A and will have two interesting games against the Etalons of Burkina Faso, with Niger Republic and Djibouti also in the pool.

Tunisia’s Carthage Eagles head Group B which also has Zambia, Mauritania and Equatorial Guinea, but

the presence of Cameroon and Cote d’Ivoire in Group D makes that pool most interesting. They are joined by Mozambique and Malawi.

Meanwhile, Group E looks the most evenly set, with Mali, Uganda, Kenya and Rwanda – none of which had been to the FIFA World Cup previously.

Group G is also mouthwatering, as Ghana, quarter finalists at the only FIFA World Cup finals to have been hosted on African soil, face the

2020 Access Bank Lagos City Marathon: Media accreditation gets new deadline Anthony Nlebem

T

he window for media accreditation for those interested in covering the 2020 Access Bank Lagos City Marathon has been extended until Friday, January 31st.

Head of Communications and Media for the marathon, Olukayode Thomas in a statement on Tuesday said the decision to extend the window initially meant to close on Friday, January 25 was to avail more journalists the chance to cover the 2020 race.

As previously announced, Thomas explained that journalists will still be required to send in their passport photographs and biodata to Mara-

thon2020accreditation@gmail. com for them to be considered for accreditation.

“We have decided to give a one-week extension so that more journalists across the globe can be part of this epic event,” Thomas stated.

“Journalists are expected to send in their passport photo-

graphs and biodata to the email address provided or bring the same to the Marathon Village situated inside the Teslim Balogun Stadium, Lagos” he added.

Thomas enjoined all to take advantage of the extended window even as he warned that the process will no longer be extended after January 31st.

“I hope our media partners will make use of these extended days, there is no point waiting till is too late, once we make our final collation next Friday, there would be no waiver for anyone that is not accredited,” Thomas stated.

While assuring journalists of a seamless environment to carry out their duties at this year’s marathon, the Head of Communications and Media for the Access Bank Lagos City Marathon appealed to all to follow the specified rules and regulations that would be contained in the media guide to be given to all.

The 2020 Access Bank Lagos City Marathon is billed to place on February 8 with over 100,000 runners expected to participate across the world.

country that hosted that finals in 2010, South Africa, as well as Zimbabwe and Ethiopia.

Certainly, Group J is similarly something to savour, as Democratic Republic of Congo, Benin Republic and Madagascar are joined by Tanzania.

Each of the 40 teams will play two matches each towards the end of this year, with the remaining four matches coming up next year.

The third and final round of the qualifiers will see the 10 winners of the pools drawn into five explosive home-andaway fixtures that will produce Africa’s flagbearers in Qatar.

Those knockout games come up in November 2021.

Speaking on the draws, Super Eagles Coach Gernot Rohr, has advised that Eagles must be focused and be at their best to make it out of their 2022 FIFA World Cup

qualifying group.

“We have three tricky opponents in Group C. A few years ago, Cape Verde were Africa’s best FIFA ranked team, CAR have some good players in Europe and we played a friendly in Liberia recently that was not easy. We have to be at our best against them,” Rohr said.

Rohr will be hoping to be the first foreign manager to qualify Nigeria for FIFA world cup twice, having led the three time African Champions to the last edition in Russia back in 2018.

The qualifiers will get under way in October, with the pool stage completed 12 months later.

The 10 group winners will then face-off in November 2021, with the five victors of those knockout matches sealing a place at 2022 FIFA World Cup in Qater.

FIFA Ban: Siasia pleads with Nigerians to help raise €250,000 Anthony Nlebem

F

ormer Super Eagles head coach, Samson Siasia in a video that went viral has called for financial support from Nigerians to help him seek legal services to overturn his suspension by FIFA. World governing football body FIFA banned Samson Siasia for life and fined him $50,000 for agreeing to receive bribe in the manipulation of matches, according to a statement from FIFA. Siaisa was banned for life from participating in all football matches by the world football governing body, FIFA in 2019 after he was found guilty of accepting bribes in order to manipulate matches.

Reacting to this, the former Nigeria coach filed an appeal with FIFA and the Court of Ar-

bitration for Sport against the life ban. Siasia decided to reach out to Nigerians to help him raise funds so he can be able to defend himself and hopefully overturn the lifetime ban placed on him by the world football governing body.

In the short video, the former Nigeria coach said; “Good day Nigerians, my name is Samson Siasia. I am coming to you at a very difficult time in my life and career. I need to raise the sum of €250,000.

That’s a lot of money. So l am appealing to all well-meaning Nigerians, the sports-loving Nigerians to come to my aid for me to use these funds to defend myself against FIFA. We have this calculation, if 200,000 people can give N500 each, we could be able to reach our target.

I wanna thank you as you do this. God bless you

Visa signs Divine Oduduru to their Tokyo 2020 cohort Anthony Nlebem

V

isa has announced the signature of Nigerian Athlete Divine Oduduru to their global Team Visa program for the Olympic Games Tokyo 2020.

Team Visa athletes are selected based on their expected demonstration of strong competitive performance at the Olympic and Paralympic Games, regardless of nationality and background. They are selected based on their personal journey, competitive achievements and community involvement. In talent as well as character, its members represent Visa’s values of ac-

L-R: Niyi Adebiyi, director, Corporate Communications, Visa West Africa; Kemi Okusanya, Country Manager and Vice President, Visa West Africa; Divine Oduduru, Nigerian track and field athlete and Seun Adaramola, director, marketing, Visa West Africa at the signing of Divine on to the team Visa program for the Olympic Games Tokyo 2020. www.businessday.ng

ceptance, partnership and inclusion.

Divine Oduduru, is the second fastest athlete in Africa after finishing 100 metres race in 9.86 seconds and 200 meters in 19.73 seconds at the NCAA championships this year. He actively began his career in 2007 and has since gone on to set groundbreaking records at both local and international levels. The Nigerian sprint sensation broke into limelight five years ago at the 2014 World Junior Athletic Championship, and recently made his debut as a pro-athlete at World Championship Diamond’s league with active preparations underway for his participation at the Olympic Games Tokyo 2020.

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Speaking on the signing, Divine Oduduru, said: “Joining other athletes from across the world as part of Team Visa has been a dream come true for me. As a track and field athlete, having a strong support system is important and so it means so much to me to have a partner in my corner that provides me with the same opportunities as other athletes competing in Tokyo 2020. I am very proud and honored to be representing Nigeria and Team Visa at the Olympics next year.”

“We are excited to welcome Divine Oduduru into TeamVisa for the highly anticipated Olympic Games Tokyo 2020 tournament said. His dedica@Businessdayng

tion, record of accomplishment and consistency in the track and field category over the years, has set him apart. At Visa, we embrace the culture of extending support to sports men and women to assist them in ways that can motivate them and enable them achieve their goals,” said Kemi Okusanya, Vice President, Visa West Africa “Divine’s journey has been truly remarkable and inspiring. His tenacity, dedication and passion to the sport are a perfect fit for Team Visa,” she added. “We hope to provide him with a global stage at The Olympics to tell his story and inspire other athletes in Nigeria to follow their dreams and never give up.”

Friday 24 January 2020

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Continued from page 4

he barked. “This food is sh*t.

They do it all the time, and now it must stop.”

Many liked his anti-badfood campaign but only a few supported his methods; they wanted to continue watching their TV, but he wouldn’t budge. A patient— let’s call him Yellow — stood up to him. There was uproar. Had they not been separated, Yellow and the theologian might have come to blows. During the melee, one patient kept warning the protester: “Looks like you don’t know where you are. This is Yaba Left o. The nurses will just change your drugs.”

“Changing of drugs,” as I was made to understand, is the practice of adding sleeping pills to the drug list of patients deemed troublesome by the hospital. I personally doubted the credulity of this claim, but by Monday the theologian was sleeping like a pregnant woman.

He’d borrowed Dr. Olayinka Egbokare’s ‘Dazzling Mirage’ from me the previous day but hadn’t read beyond the opening pages. When I saw he’d spent more than half of Tuesday sleeping again, I approached him shortly before 5pm: “You’ve been sleeping all day like someone bitten by tsetse fly, man. What’s wrong with you?”

“Nothing, bro,” he replied.

“I told the nurses the hospital food was making me purge, so they gave me new drugs.”

“Are you sure they didn’t ‘change your drugs’ because of your Sunday protest?”

“No, bro. Just drugs to stop the purging.”

I could tell he was living in denial. I almost believed him, in fact. But when I went looking for him half an hour later, he was back in bed, sleeping and snoring away, oblivious of my presence.”

This wasn’t the effervescent man I’d come to know for almost a week; he had become, as Darey would say, a “shadow of himself”.

Full-blown protest Monday morning was pap and beans cake, afternoon was beans and yam, evening was another lump-filled yam

flour with okra. I went into the nursing office not just to complain but to show the male nurse on duty. “You know that even if we were hopelessly mentally deranged, we don’t deserve this kind of food,” I told him. “You cannot continue doing this just because you think nobody is watching you.”

Truly, nobody was watching them. And if any drug patient dared report to his parents/guardian, they wouldn’t be believed for obvious reasons. Many of the drug patients, even those who weren’t psychotic, landed at Yaba Left in the first place because they had started to misbehave at home. The substances they were abusing had given them such false sense of confidence that they could insult anyone.

The psychotic ones among them often hallucinated, felt persecuted, felt being gossiped about, saw ghosts, felt families and friends were ganging up against them and felt the entire world was against them. Therefore, if any of them complained about the hospital’s food, no one would believe. Such complaints would be viewed as one of the many manifestations of psychosis.

Breakfast on Tuesday was yam and stew, lunch marshy rice plus half-done beans, and dinner garri with stony egusi.

Wednesday morning was sugarless pap with beans cake, while lunch was marshy rice and egg with water melon.

One patient who couldn’t take it anymore raised his voice against a nurse. “Please, hold your breath!” the woman exclaimed. “The people who served you the food were here minutes ago; you didn’t shout at them. Now that they’ve gone, you want to shout at me?”

The patients felt they’d directed their protest at the wrong quarters; they resolved to correct it. A protest was starting to brew. By the time the servers returned with dinner, the patients had seethed with rage for hours. Some of them had lined up with their plates but they were crowded out by the dissenting voices.

Soon, they unanimously insisted they weren’t going to

eat the food.

Stunned, the servers scampered to the nursing office for help. One elderly patient was impressed by the steam the nonviolent protest was gathering. I had picked out his face from the food queue the previous week when he politely asked a lady server if the yam flour to be served that day was not lump-filled.

“Can you enter the kitchen?” the lady, clearly offended, had fired back.

“Don’t you have a father at home?” the man responded.

“Which father?” she snapped. “He’s in heaven!”

One nurse came to plead with the patients, promising that the food would improve, but her pleas were drowned by the angry voices of the patients. I couldn’t witness it to the end because my team had come to discharge me against medical advice, as laid out in the plan. I’d in fact been discharged an hour earlier but I managed to delay my exit by spending idle time in the toilet just to witness the protest.

“We will not eat this food… we cannot take this anymore,” I could still hear some patients shouting as I slipped through the gates of Tolani Asuni into the general space of Yaba Left.

I may not have witnessed the outcome of the protests but I really could tell, based on precedent. Five months back, in June, patients had staged a stiffer protest against the servers, insisting there wouldn’t be peace unless the CMD came forward to address them. A patient who was on admission at the time said the group went as far as insisting they would no longer take their drugs. “The CMD indeed came,” the patient said of the incident. “However, to the disappointment of everyone, when she tasted the food, she claimed nothing was wrong with it.”

‘Principalities and powers in the kitchen’

The horrible food eaten by patients of the hospital is the end result of a complex mix of corruption and desperate office politicking. So said an employee of the hospital who asked not to be named for fear of retribution.

“There are certain people who have been in charge of the kitchen for a long time now; they are the ones who buy foodstuffs from the market,” said the source. “When the present CMD came in, part of what she did was to get those people out of the way.

And it was quite messy — because there were accusations that their purchases were rarely commensurate with the released funds.”

The responsibility of buying foodstuffs and verifying the prices was then transferred to another committee. However, in terms of the cooking, the original set of people in charge of preparing the food remained in charge.

Repeated complaints by patients prompted a decision to employ a dietician to oversee the kitchen.

“The dietician was frustrated out of the system by every means possible,” the source said. “And since her exit, nobody has been brought in for that purpose.”

The failure to replace the former dietician has meant a lack of professional input into the goings-on in the kitchen.

For instance, when patients request special meals, the kitchen staff don’t seem to know what should be prepared. What the patients get, instead, is the same set of food served to all the patients.

“The complaints about the quality of food persist but the reasons are not clear,” the source concluded. “It is hard to say whether some of the foodstuffs are being kept back or not, but the final food output that we see is not palatable at all. And this has been going on for years.”

The toilet used by patients of Tolani Asuni ward will make you puke! www.businessday.ng

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The patients’ bathroom is an eyesore The first time I entered the toilet serving Tolani Asuni Ward, the scenery was so nauseating I wanted to puke.

I ran straight back out! The tiles were either irredeemably stained or unrestrainedly peeling off the walls. Parts of the floor were somewhat waterlogged, helped by burst pipes that shelled out water in place of regular taps. The water closets had all lost their lids and, just like the pintsized bathrooms, had become permanently discoloured by filth. Professor Asuni would be turning in his grave at the sight of the bathroom in the ward named after him!

One consequence of the shabby state of the Asuni toilet is the pressure it puts on Adeoye Lambo’s, still relatively new. A philanthropist — not the hospital management — renovated the Adeoye Lambo bathroom recently. This was a bathroom built for a small group, the 30 patients of Lambo, but it now serves no less than 20 more patients from Asuni. I was a late bloomer in this regard — until my sixth day at the ward, when, seeing that I was holding myself back from using the toilet, a patient asked me to “try Lambo like almost everyone else”.

‘Corruption and all that stuff’ Someday during my first week of admission, there was almost an outbreak of fisticuffs between the theologian and another patient who is the son of a pastor, over the rights to the television remote in the lobby. Each wanted to see something on TV that the other didn’t want to. In truth, the pastor’s son was part of a small clique that controlled the TV remote; the theologian was indeed right to protest. As resentment welled up in both parties, the pastor’s son, clearly ego-battered at being knock

off his perch, barked out to the theologian: “Look, I paid the same amount as you did to be in this ward, therefore I have the same rights as you do to watch whatever I want.”

Irritated by the raised voices, the nurse on duty intervened. “Please, you people should stop all this noise about how much you paid,” she cut in. “You think it is your money that was used to fund this DStv subscription? Look, most the of things you see around here are not from the management; you know this is Nigeria and there is corruption and all that stuff. Most of the social services you enjoy here were put in place by public-spirited individuals.”

She hadn’t lied. I would later discover that the monthly DStv subscription was paid for by a doctor. The bathroom at Adeoye Lambo was renovated by an Egba chief. The hospital had sold him the idea of renovating Tolani Asuni as well, but he didn’t buy it, insisting he would only renovate Lambo because the late psychiatrist hailed from his town.

The painting of the exterior of Tolani Asuni Ward, plus an inscription that reads ‘Turn off drugs, turn on the music’, was the idea of an arts-endowed ex-drug patient. Even the materials used for the painting were donated; they weren’t from the hospital.

‘Who should misbehave if not a mad man?’

Not long after I got to the ward, I started to notice a thin, dark boy at Adeoye Lambo.

He was restless and desperate to get out of the hospital. He must have been aged somewhere between 17 and 20; he had a few open sores as well.

The first time I saw him, it was so early in the morning yet he was shedding tears profusely.

Two problems. He wanted to leave the ward; and if he couldn’t, he wanted access to Mali Kush and Colorado, two of the many drugs he abused. In his first few days, he was pretty unstable, crying, howling, scratching his body, sometimes screaming incoherently and acting irrationally. For these, he often earned himself cheap slaps and whips from the nurses, much to the chagrin of one of the two elderly patients in the ward — a dark-skinned sexagenarian who always spotted a black pair of spotty boxer shorts. While he sometimes changed his vests, his black briefs were ever-present, leaving me wondering if he had so many pairs or he wore just one

This bathroom just as bad as the toilet. @Businessdayng

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Friday 24 January 2020

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Continued from page 37

over and over again.

“You’ve started beating him again!” the man screamed one day. “Why?” We were soon told he took some keys that weren’t his. I’m not sure if the keys belonged to a fellow patient or a nurse, but I remember the nurses were clearly displeased, and they beat him for it.

“He took keys belonging to a nurse and he wasn’t supposed to, and so?” the man queried no one in particular.

“We say someone is mad, you say he is misbehaving?

Who should misbehave if not a mad man?”

The elderly patient motioned the boy to come over, and to the surprise of everyone, he hearkened. The boy sat beside him, calm and attentive. I witnessed this two more times, that there was uproar and this man was the only one who could still the boy.

How come the boy listened to him without a beating? The man blew his own trumpet on the third occasion.

“Without beating him, he listens to me when I talk to him,” he boasted. “No nurse should beat him. He may be mad but all he needs is love.

He’ll do whatever you ask him to if you ask nicely.”

When asked to comment, a psychiatric doctor, who didn’t want to be named for fear of being seen as helping to plan the undercover work, condemned the act.

“It is a matter on two levels,” he says.

“I do not support beating a patient under any guise. But if a patient is violent — kicks at a doctor/nurse, bites someone and so on — maybe I can understand the beating, even though it still doesn’t make it right.

“However, if a patient exhibits stubbornness prompted by mental illness, such as the boy taking possession of keys that aren’t his, it’s not right to beat him. He wasn’t violent, why should he be rewarded with violence?”

Had the boy been beaten up at a hospital in the UK, the nurses in question would have been investigated and dismissed if found guilty. So said a Nigerian psychiatric nurse based in Camden, a district of northwest London, England.

“Even if a patient is violent, a nurse has no right to respond with physical assault,” she said.

“By policy here in the UK, if the patient hits you, you are not allowed to hit back.

Mentally-ill patients are vulnerable people; they are vulnerable, that’s why they are in the hospital. If you hit back and there is a complaint, you will be investigated; if found guilty, you will be suspended or sacked, depending on the weight of your guilt. There are cameras everywhere so there’s always evidence.

“What that nurse can do is to restrain the patient. And it

may interest you to know that the nurse cannot do it solitarily. You alone cannot; you have to involve a minimum of two staff. And then the extent of strength you invest into restraining the patient has to be commensurate with the scale of violence perpetrated by the patient. By the way, restraining has to be the last resort. The first step is to call for help by pressing the alarm button attached to your body.”

10 days, no treatment — 10 days of nothing On the day I arrived Tolani Asuni, before I slipped into the hospital-approved pyjamas and I was stripped of all my personal possessions, I asked the nurse on duty exactly what kind of treatment to expect since the doctors had exempted me from drugs and injections. “Therapy,” she answered me. “Group Therapy (GT) and Cognitive Behavioural Therapy (CBT).”

Held every working day of the week, the GT allowed all drug inpatients to come together to learn from one another’s mistakes. It was led by a firm but likeable baldheaded male doctor, who is an alumnus of the University of Ibadan, plus a fair-complexioned female psychologist who spoke with a thick Igbo accent and was generally considered by patients as brilliant but puffy. The GT came with the total N120,000 admission package.

But I would need to pay an extra N10,000, the nurse told me. This was separate from the admission fee, and this was regardless of the initial charge of N20,000 for drugs that the hospital knew I wouldn’t need but made me pay for. If I paid the N10,000 early enough, the nurse explained, I would get an early CBT date. So I paid in cash right there — before I stepped into the room allocated to me in the ward.

I would soon find out my CBT had been scheduled for December 31 — six full weeks after the commencement of admission. Effectively, this meant that the hospital was offering me no single condition-specific treatment or therapy. I spent the last five

The bathroom walls and ceiling.

days of my stay pestering the nurses, doctors and psychologist for a readjustment of my CBT date. “My brother, it’s not our fault,” the Igbo-accented psychologist told me one day.

“Tell Buhari to employ more people.”

Until my discharge on the 10th day, I hadn’t experienced one single session of CBT. Just before signing the papers for my release as pressed for by my team, Dr. Ojo, the consultant in charge of my case, said: “Let me emphasisie that we have not released him so that you can take him away permanently. He should be coming from home — because we know that we haven’t done anything on him. Up till now, he hasn’t even been attended to at this ward yet.”

For a drug patient that hadn’t entered psychosis, that had never experienced it, that wasn’t placed on drugs or injection, this is inexplicable, actually. Ten full days of “doing nothing” on a patient who already made full payment!

Staff shortage, ghost workers, lopsided recruitment In truth, the hospital was experiencing an acute shortage of nurses, doctors and psychologists. Only two psychologists served a patient population that often hovered around 535 inpatients and approximately 800 outpatients.

Working in shifts, the nurses number just under 200, but they were evidently overworked. Ideally, two of them ought to be on duty in the morning, and another two at night. This seldom happened.

Oftentimes, two worked in the morning and one in the evening, or one in the morning and two in the evening.

In addition to the general shortage of nurses, there is also a shortfall between the number of nurses on the hospital’s books and those actually operating the shifts. For a number of reasons.

“People retire every year, people get transferred, people die, people travel. If today there’s an opportunity for 50 nurses to travel, they won’t even wait till tomorrow,” a nurse said on phone when asked to explain the inadequacy of nurses.

“At every point in time, there is avenue for many people not to be on ground,” he added. “And the expectation of the government and the hospital management is on the nominal role. However, statutorily, everyone on the nominal role cannot be on the ground.”

According to the nurse, these challenges are nothing new, not peculiar to the neuropsychiatric hospital, and easily solvable with constant reemployment and futuristic planning.

“Since October this year, a serious administration would have sat down to say, how

Patients watching TV shortly before the clash of interests.

“All these deplete the workforce. Even I myself, if I get an opportunity to travel for a course for two or three years, I will go. But my name will remain in the employ of the hospital. There are people benefitting from such arrangements, which, of course is their absolute right. It’s in-practice training, and they return to the hospital better equipped for the job.”

Sometimes, nurses are seconded to other institutions to offer stability for a period of time, and they’re not replaced during their absence. One or two staff may even be hospitalised long term, yet no one is employed to fill in for them.

Instead, their work is spread among the remaining staff.

many people are retiring next year: how many nurses, pharmacists, doctor, cleaners, and so on? How many staff relocated abroad or travelled for trainings?” said the nurse.

“Then you can factor all these information into your recruitment plan for the next year — even if not to expand, at least to maintain the current staff strength. The solution is to employ more and plan ahead.”

The problem, though, is anything but that simple.

Even if nobody wants to talk about it, the scourge of ghost working is an open secret at the hospital. The nurse quoted above admitted that he was “aware that there were ghost workers” at the hospital, but

Mali Kush will push you right to the edge of the cliff. Flee from it! www.businessday.ng

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he said would rather not talk about it as he was, by official duty, not in a position to obtain formal evidence.

He was the second Yaba Left nurse contacted during the search for evidence. But unlike the first, who downright turned down a request to speak, he sent us the contact details of a nurse who “certainly can give you evidence”.

“I don’t know if she will want to speak with you,” he warned.

“But if you’re able to, trust me you’ll get a clear picture of the number of ghost workers in the system.”

At exactly 11:02am on December 23, I called the nurse, a female. She asked that I call back at 4pm. When I did at exactly 4pm, her initially encouraging countenance had become unfriendly “Please I’m still very very busy [sic]; I’m not yet at home.”

Asked what time I could call back or if she didn’t want me to at all, she replied: “You may not bother at all. I’m extremely busy presently.”

A mini-breakthrough came through a fourth nurse based in the South-South, who promised to speak with a colleague of his at Yaba Left.

The answer, when it came via Whatsapp chat, read: “The trusted colleague I spoke with confirmed to me that there are ghost workers. But he said what he will not do is give me names.”

Beyond ghost-working, there is a litany of admin issues to be resolved at Yaba Left. The hospital’s consultant-resident doctor ratio is thought to be approximately 2:1; meanwhile, standard practice is 1:4! This anomaly, I understand, has festered this badly because lots of consultants who should have exited the system are being retained on curious grounds.

Aside the belief in some quarters that probably as many as 500 nurses are in the hospital’s records while roughly half do the work in practice, it is interesting to note that there are approximately 1,000 admin staff on paper — more than the number of nurses and doctors combined! There are two psychologists on drug ward but about 12 in the entire hospital, which is still grossly inadequate. There are only four occupational therapists even though the hospital runs a school of occupational therapy.

There have also been complaints of deducted but unremitted tax from staff income, plus hushed talks about the nature of ongoing projects, the identity of the contractor and the financial value of the contracts.

‘I don’t talk on phone’ Yaba Left CMD On Friday January 17, 2019, I contacted Dr. Oluyemisi Ogun, the Chief Medical Director of the hospital, for her response to my findings.

I had only mentioned “the quality of food that patients

Continues on page 39

Friday 24 January 2020

BUSINESS DAY

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news BusinessDay’s ‘Lead battery’ investigation...

L-R: Omolola Abiola-Edewor, executive director corporate services, Nigeria Deposit Insurance Corporation (NDIC); Umaru Ibrahim, MD/ CE; Chizor Malize, MD/ CEO, Financial Institutions Training Centre (FITC), and Aghatise Erediauwa, executive director operations, NDIC, during FITC’s MD/CEO’s visit to the NDIC yesterday.

Continued from page 1

journalism in Switzerland, Tuesday night.

The Fetisov Journalism Award, an initiative of Gleb Fetisov, Russian

billionaire, passionate about using journalism to affect social change, awarded a cash prize of 100,000CHF to winner in each of the four categories: Outstanding Contribution to Peace, Contribution to Civil Rights, Outstanding Investigative Reporting and Excellence in Environmental Journalism.

The runners up won 20,000 CHFand10,000CHF,respectively.

One CHF or Swiss Franc is equivalent to 1.03 U.S dollars.

Isaac Anyaogu and Petra Sorgewere supported bythenonprofit SRADEV in researching for the story “Dying in instalments” published by BusinessDay and Die Spiegel in Germany. Sorge, a freelance journalist in 2018 when the story was written, is now a reporter for the Wall Street Journal.

Anyaogu, who studied Mass Communication at the University of Nigeria (UNN), reports energy and environment for BusinessDay, and has won several media awards. The Series “Dying in Instalments” has now won multiple media awards in Nigeria, South Africa,GermanyandSwitzerland.

“From the very first day he joined Businessday, Isaac has not only been diligent but rigorous as well. For him every story is an opportunity to bring the best in him and I am proud to have such a dynamic, talented and hardworking man in our editorial team,” BusinessDay Publisher, Frank Aigbogun said.

Therewere160entriesfrom50 countriesacceptedforthecompetition founded by Russian private investor, Gleb Fetisov and one of the country’s wealthiest men.

A team of respected international editors and journalism scholars led by Aiden White judged the competition assisted by a steering committee that includes PremiumTimes cofounder, Muskilu Mojeed.

According to Fetisov, the missionofFetisovJournalismAwardsis topromoteuniversalhumanvalues such as honesty, justice, courage andnobilitythroughtheexampleof outstandingjournalistsfromallover the world as their dedicated service and commitment contribute to changing the world for the better.

Its objective is the promotion of contemporary journalism as a unique profession that contributes to transforming the lives of individuals, communities and the world as a whole.

“Thisisatestamenttothepowerful and credible medium that BusinessDay is today,” said Patrick Atuanya, Editor, BusinessDay. “Beyond the recognition is the impact that our journalism is making, and this flows directly into other aspects of our business, including conferences, digital and our research work.” Atuanya said.

Since the publication of the series, Everest Metal Limited investigated for environmental pollution has begun to turn away from unsafe recycling.

According to Vikas Das, the company’s managing director, it has spent over $150,000 in remediation efforts in Ipetoro, Sagamu, Ogun State, where its factory was located.

Ithasbuiltaneffluenttreatment

Isaac Anyaogu

plan to collect and process waste water previously dumped into the community, it provided free medicalservicesfortheaffectedcommunity and embarked on various CSR projects, including grading roads, drilling borehole and providing electricity, buying the community transformers and helping to connect them to the national grid.

Spurred by revelations in the articles, European countries have banned export of recycled lead from Nigeria and right now global operators have drafted international guidelines that will guide safer recycling.

“It gives me great pleasure to accept this award on behalf of the wonderful team that worked on it. This validates my long-held belief that good journalism not only brings rewards but can be a catalystforsocialgood,”IsaacAnyaogu, BusinessDay’s analyst, said.

On Monday 4, major global industry associations in the field of lead-acid batteries publicly committed to new rules for all its members.

“While this has been done by some companies before, this now means that all members of the four associations have to impose related company policies. Thus, none of the big players in the lead and battery business should buy any lead, scrap or waste batteries without checking on the conduct of their business partners first.

“Ifthisisimplementedproperly, dirty recyclers will only be able to sell to off-takers not organised in any of the four associations,” says Andreas Manhart, expert on lead acid battery recycling, from theGermanenvironmentalthinktank, the Oeko institute.

Staff shortage, ghost workers, principalities...

that time, the most expensive linac radiotherapy machines cost between of $750,000 and $1.5million (between N228 million and N456million, at the then CBN rate), excluding associated costs such as the vault that will house the system, treatment planning and oncology information system software, lasers, and other accessories. Still, the government bought only one RT machine — for the National Hospital! And this is despite knowing there were only four functioning radiotherapy machines all over the country at the time to serve an estimated 200million Nigerians, The question, then, is: where is the rest of the N8bn?

One big strength of the Federal Neuropsychiatric Hospital Yaba is the sheer passion of majority of its workforce. There are many Dr. Ogunlowos and Dr. Akingbolas at the hospital — medical staff who are incredibly committed to the profession but are becoming increasingly pessimistic about the Nigeria project.

“Many of us love this job to bits but our frustrations with

the system pushed us out of the country,” said a former staff of the hospital who now practices in the Canada. “I hope the government addresses Yaba Left’s problems because the more the doctors get frustrated by the system, the more they leave and the more the number of untreated or shabbily-treated mentally-ill patients walking the streets. That can’t be good for Nigeria.”

Those sentiments were shared by the UK-based Nigerian nurse. “I probably would have beaten that boy myself if I was still in Nigeria,” she said.

“Over there in Nigeria, it isn’t that professionals are inherently civil. But here in the UK, we have a system in place that punishes unprofessional behaviour. That way, civility is inculcated by sheer force of discipline. Look at the idea of CCTV camera, for instance!

We can do it in Nigeria, too, if we really want to.”

This investigation was published with collaborative support from Cable Newspaper Journalism Foundation and BusinessDay.

In Davos, Okonjo-Iweala says Africa must... Insurers’ premium income may rise 40% on...

“The Insurance Certificates shall state that all employees are covered up to an amount not less than 3 times their respective Annual Total Emoluments (ATE).”

According to the notice, employers that have not yet submitted copies of Insurance Certificates for the current year to the Commission are therefore advised to do so before 31 March, 2020, failing which the National Pension Commission would consider such employers in default of Section 4(5) of the PensionReformAct(PRA)2014.

To the employees, therefore, PenComsaid,“Thisistoremind all employees in the Public Service of the Federation, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector, that it is their rights; under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three (3) times their annual total emolument.

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do these youths need in order for Africa to realise the

potential and have them drive the economic growth of the continent.”

This progress can come about only if some big countries make progress themselves, she said.

“There are three economies that are consequential whose total contribution amount to about 50 percent of sub-Saharan Africa GDP, and they are Angola, South Africa and Nigeria. Unless these countries do well, the rest of the region will not do as well as they should.

“But there are eight countries now that are setting the example that they can grow at 6 percent and better. Countries like Cote d’Ivoire, Ethiopia, Rwanda, Uganda, Tanzania and Ghana are all doing this and the rest can catch up too because we got the base.

“But those three countries in particular have to do well www.businessday.ng

Continued from page 38

eat and understaffing, inadequate number of nurses possibly due to…” when she interjected: “Who gave you the statistics? Who is complaining to you? If you have anything, come and see us, please.

“When I see you face-toface… I don’t talk on phone.

If you have any problem, then come and then we see, and then you can see the facts yourself on ground. Thank you.”

Making Yaba Left right As with all other government-run hospitals, funding is one of the major impediments to the smooth operations of Yaba Left. Despite joining 20 other member nations of the African Union to sign the 2001 Abuja Declaration agreeing on the allocation of 15 percent of federal budgets to healthcare, Nigeria has never met the target, and has in fact always fallen short of even the halfway mark. Only 3.95 percent of the 2018 budget was reserved for the Ministry of Health;

otherwise the statistics for the continent, job creation numbers, will be unimpressive.”

She said she was impressed with the way many African leaders spoke at the UK-Africa Summit and it seemed that the leaders were beginning to understand the urgency of the work that must be done, because people were now constantly citing peers making great progress on the continent.

African governments have to make sure that their revenues are enough to service their debt, she said, but explained that in the context of low interest rates, “If you borrow and use it for productive assets like infrastructure, that could work but you need to watch the debt pile so you don’t get to the level where you have a crisis because interest rates could also move in the opposite direction at any time, and if you do not have enough hedges then you are in trouble.”

it was less than 2 percent in 2019 and 4.14 percent in 2020. The highest percentage since the declaration was the 5.95 per cent of 2012.

Meanwhile, seven countries — Rwanda, Botswana, Niger, Zambia, Malawi, Burkina Faso and Togo — have all met the Abuja target.

The neuropsychiatric hospital at Yaba — and indeed other government-managed hospitals — can’t offer quality healthcare to the people with continued underfunding, especially with an everincreasing patient population that rose by 51 per cent from 40,502 outpatients and inpatients in 2018 to 61,154 in 2019. However, the financeinduced problems of tertiary hospitals nationwide are always complicated by “corruption and all that stuff”.

In the 2017 budget, for example, N9 billion was specifically allotted to the purchase of radiotherapy machines for some teaching hospitals (and another N117 million was also budgeted for cancer-related issues). At

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face of the industry.

“I see more than 40 percent growth if it’s enforced across all levels of employers,” Larry Ademeso, managing director/CEO, Custodian Life Assurance Company, told BusinessDay. Ademeso said the only way to look at what the impact of the directive if enforced would be, was to look at the size of the pension contribution.

For instance, registered contributors are now about 8.5 million, if life premium is paid for this number of people it will meansomuchfortheinsurance industry, Ademeso argued.

Though, pension fund assets have contribution of employer and employee, but a steady payment of insurance across all employers would definitely have significant effect on insurance, Ademeso said.

PenCom on Thursday gave employers of labour at the Federal, State and the private sector up to March 31, 2020, to comply with the Pension

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Reform Act 2014, on provision of life insurance cover for employees, or assume to have breached the law.

Besides that, PenCom also gave employees the mandate to report any employer that fails to comply with this provision as well as other provisions of the PRA 2014, including pension remittances to the Pension Fund Custodians (PFCs).

The directive was contained in a circular notice to all employers of Labour with the theme “Re: Compliance With Guidelines For Life Insurance Policy for Employees And Submission Of Insurance Certificate For 2020.”

It read, in accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014 and Section 5.5 of the Guidelines for Life Insurance Policy for Employees, Employers of labour covered by the PRA 2014 are required to submit copies of the Insurance Certificates with the schedule of benefits to the National Pension Commission (PenCom). @Businessdayng

•Continues online at www.businessday.ng

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Friday 24 January 2020

BUSINESS DAY

news

FG must speed up planned partnership with OEMs on refineries ... as refineries loss of N123.3bn in 10 months worries stakeholders

HARRISON EDEH, Abuja

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ederal Government must speed up its planned engagement with Original Equipment Manufacturers (OEMs) of the Nigerian refineries as frequent loss posted by Nigerian refineries puts intense pressure on the economy.

The Nigeria’s petroleum sector, arguably the nation’s main source of economy, had not performed to the expected standards on the concerns of weak regulatory framework governing the sector.

Admittedly, Timipre Sylva, minister of state for petroleum resources, has said the government has set a target of May 29 to pass the Petroleum Industry Governance Bill (PIGB) to put the sector in the right footing among its global competitive peers.

The Federal Government is discussing with the OEMs on the terms of operate, manage and maintain strategy on the back of below par performance of Nigeria’s major refineries, Sylva said.

This is part of the reforms the government is embarking on to ensure the petroleum sector performs optimally, he said.

It could be noted that the country’s refineries under the management of the Nigerian National Petroleum Corporation (NNPC) made a cumulative loss of N123.25 billion from January to October 2019, latest figures released on Wednesday showed.

An analysis of data in the October 2019 oil and gas report of the NNPC showed that all three

entities recorded losses during the period under review.

Refineries under NNPC management include the Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.

Findings show that while KRPC posted a loss of N49.3 billion in the 10-month period, PHRC and WRPC lost N36.7 billion and N37.24 billion, respectively, during the same period.

It was further observed that the actual revenue made by the three facilities during the period was N68.82 billion while their expenses were put at N192.1 billion.

Of the three refineries, WRPC made the highest revenue of N59.1 billion during the period, even as it posted the highest loss of N96.32bn.

KRPC and PHRC made N6.23bn and N3.46bn as revenues in the 10-month period but lost N55.59bn and N40.16bn, respectively. For October 2019 alone, the facilities posted a cumulative loss of N11.72bn.

Their individual losses in October were N5.24bn, N3.38bn and N3.1bn for KRPC, PHRC and WRPC, respectively.

There had been various concerns over the abysmal performance of Nigeria’s refineries.

The Petroleum and Natural Gas Senior Staff association, for instance, told our correspondent recently that it was high time the Federal Government channelled the funds spent on petrol subsidy to making the refineries work.

NDLEA makes most arrest of drugs on Ethiopian Airlines, British Airways, SA in 2019 IFEOMA OKEKE

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ational Dr ug Law Enforcement Agency (NDLE A) has disclosed that in 2019 most arrest of suspects peddling illicit drugs made at Murtala Muhammed International Airport (MMIA) were passengers travelling with Ethiopian Airlines, British Airways, South African Airways and Emirates Airline.

The agency disclosed that out of 101 suspects arrested within the year under review, consisting of 87 males and 14 females, 19 people were arrested on Ethiopian Airlines, 13 on South African Airways, 10 on British Airways cargo airplane and seven on Emirates Airlines.

The command however stressed that these arrests were made with the collaborations of the international airlines.

Speaking during a press conference at its office in MMIA , Garba Ahmadu, NDLEA commander for Lagos airport, said Dubai was the transit point for most illicit drug peddlers.

Ahmadu said record of arrests in the year under review indicated that there was an increase in the number of persons arrested from 93

persons in year 2018 to 101 persons in year 2019, showing 8.6 percent increase.

He said the number of seizures and cases recorded in the year under review also increased to 76 from 73 in the previous year, showing an increase of 4.11 percent.

He however noted that from January to November 2019, the agency recorded 379. 061kg as against 5377.125kg recorded in 2018, showing annual decrease of 92.97 percent.

He said cocaine accounted for 9.03 percent of total drug seizures, heroin 5.75 percent, cannabis Sativa 44.71 percent, methamphetamine 24.93 percent, ephedrine 7.45 percent and others (psychotropic substances) 8.13 percent.

According to Ahmadu, “NDLE has been able to make these arrests because we have better capacity now and more officers are trained to do diverse investigations and follow ups.

“Collaboration with international airlines have improved our officers’ capabilities to do better targetting and profiling. Initially, the challenge that we had was access to airlines but now we have the access to airlines because of their corporation.” www.businessday.ng

N614bn bailout: Governors move against N162m monthly deductions from states’ allocations Solomon Ayado, Abuja

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igerian governors, under the platform of Nigeria Governors’ Forum (NGF), have moved against N162 million being deducted monthly by the Federal Government from allocation to states, as repayment for the N614 billion bailout funds granted them.

This is as the governors have agreed to partner the Federal Mortgage Bank of Nigeria (FMBN) to fashion out a new scheme to address the housing deficit faced by states in the country. The MD/CEO of the bank, Ahmed Musa Dangiwa, presented the agreement to the governors.

The governors had met in Abuja on Wednesday night to deliberate on the matters.

The meeting ended mid night.

... sign pact to end housing deficit Present at the meeting were governors of Ekiti, Osun, Ondo, Kogi, Kebbi, Plateau, Yobe, Niger, Delta, Kaduna, Jigawa, Nasarawa. Those of Gombe, Borno, Oyo, Kogi, Anambra, Enugu, were ably represented at the meeting by their deputies.

The meeting was convened ahead of the National Economic Council (NEC), which held Thursday, at the Presidential Villa.

Apart from the N162 million monthly deductions the governors viewed as very outrageous, they are also pressing for extension of the repayment period from 20 to 30 years.

The governors had earlier kicked against the initial monthly deduction sum of N252 million before the Federal Government reduced it to

N162 million. The repayment period was also extended from 20 to 30 years.

It would be recalled that N614 billion bailout was granted to states as facility loan in 2016, to offset owed salaries and pension arrears, and was agreed to be payable through deductions from the federal allocation to states.

At the moment, the governors have turned against the agreement it had with the Federal Government on the bailout deductions and repayment period, hence the serial marathon meetings to review it.

Fielding questions from newsmen after a crucial meeting of the NGF on Wednesday night, chairman of the forum and Ekiti State governor, Kayode Fayemi, disclosed that the governors

had evolved fresh recommendations that would be handed to the Federal Government.

Although states have since honoured the repayment of bailout, the governors will continue to review the deductions to suit capacity of states, he said.

“On reconciliation for budget support facilities, that is something that has been handled. We have come up with our own recommendations of special fund generally not just budget support facilities “On budget support facilities specifically, states are already honouring in their obligations. They are already paying back what is owned to the federal government.

The question of the amount is something that we will continue to review.

L-R: Javier Espiago, director, export credit agency finance for Africa, CitiBank; Peter Sullivan, managing director and public sector head-Europe, Middle East and Africa (EMEA) CitiBank; Funmi Ogunlesi, executive director, public sector/government relations, Citibank Nigeria; Babajide Sanwo-Olu, governor, Lagos State; Yemi Cardoso, chairman, Citibank Nigeria; Ireti Samuel-Ogbu, managing director, EMEA Payments and Receivable head, Treasury and Trade Solutions, and Samad Sirohey, CitiGroup managing director for Debt Capital Markets, Central Emerging Europe, Middle East and Africa (CEEMEA), during the governor’s meeting with the CitiBank Group in London.

FG, shareholders invest $500m in Afreximbank’s new equity Hope Moses-Ashike

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he African E xport-Import Bank (Afreximbank) on Thursday announced that existing shareholders, including Nigeria and the Arab Bank for Economic Development in Africa, have invested $200 million through Class A, B and C shares and $300 million in callable capital, bringing the total value of new shares issued by the bank in 2019 to $500 million.

The majority of the proceeds of the capital raise were used by the bank to retire warrants that were issued in December 2018.

The new equity also puts the bank in a strong position to continue its growth in line with its strategic plan, particularly in the wake of the recently launched African Conti-

nental Free Trade Area, the largest free trade area created worldwide since the formation of the World Trade Organisation.

The bank continues to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.

Benedict Oramah, president of Afreximbank, said: “The equity injection reflects the confidence which our existing shareholders have in the Bank and the Bank welcomes their decision to rapidly take up additional equity.

We are well positioned to take advantage of our relationships w ith our member states to provide a platform for trade and investment flows across the continent, delivering returns for the Bank and growth for African busi-

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Essenza opens new Abuja store with launch of bespoke scents

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uxury fragrance and lifestyle brand, Essenza, has opened a new store in Abuja, with the launch of new bespoke fragrances. The store, opening in December at the Jabi Lake Mall in Abuja, was hosted by ex-Big Brother housemate, Kim Oprah, and was well attended by personalities in the beauty and lifestyle industry.

This is Essenza’s flagship outlet in Abuja adding to the nearly three dozen Essenza stores opened, and maintains the delightful aesthetic and ambience synonymous with the Essenza brand. This new store has a modern and sophisticated setting designed to reflect the personality of the brand. It features Essenza’s familiar architectural and interior design concept, which aims to significantly improve the customer experience.

The new store opened with the launch of five new fragrances: La Perle Eau De Parfum, Patron De Nuit, Ambre Exclusif, Oud Blend and Le Meilleur, which were the highlights of the @Businessdayng

evening as guests couldn’t wait to try out the various fragrances.

Sultry, mysterious, seductive, free spirited and inviting, each fragrance is distinct not only in their scent, but in the sensuality and sophistication they evoke.

Abiola Kasumu, executive director of Essenza, said, “There is an increasing appetite and taste for luxury brands in Abuja, and this new store will provide more avenues for our customers to access their preferred local and international brands they’ve come to trust. We are also thrilled to unveil these new and exciting fragrances; they provide our customers the opportunity to identify and embrace their own unique scent, personality and style.”

With its industry heritage of over a decade, this store opening and launch of new fragrances reflect the growth of the Essenza brand with presence in Nigeria and Ghana. Essenza continues its goal to remain the number one retail outlet for luxury fragrances and lifestyle brands from around the world.

Friday 24 January 2020

BUSINESS DAY

news RoW issue: States agree to stop price increase following FG’s intervention Jumoke Akiyode-Lawanson

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overnors in the 14 states that planned to increase Right of Way (RoW) charges for telecoms operators have stopped the price hike and are keen to adopt the 2013 resolutions reached by the National Economic Council (NEC) to peg maximum RoW charges at N145 per linear metre of fibre, after the Federal Government opposed states’ decision to raise prices.

Isa Ali Pantami, minister of communications and digital economy who met with state governors at the Nigeria Governors’ Forum (NGF) in company of Umar Garba Danbatta, executive vice chairman, NCC; Inuwa Abdullahi, director-general of National Information Technology Development Agency (NITDA), and Funke

... resolve to N145 per linear metre of fibre Opeke, CEO, MainO ne and chairperson of the presidential committee on National Broadband P l a n ( 2 0 2 0 - 2 0 2 5 ) , e xplained to the governors the many benefits that an increase in broadband access could have on the economy of the various states.

Urging the governors w h o p l a n t o i n c re a s e charges by up to 1,200 percent more to stick to N145 per linear metre of fibre, Pantami said one of the key benefits was the rapid growth in the Gross Domestic Product (GDP) of any country that increased its broadband penetration.

Analysts say such a drastic increase in RoW charges could hamper national target of a digital economy and would definitely hurt prospects

of investment in the sector.

In response, the governors acknowledged the benefits of broadband penetration and Kayode Fayemi, chairman, NGF, and governor of Ekiti State, told the minister to consider the matter resolved.

“There will no longer be any need to appeal to the governors on the issue of RoW,” Fayemi said.

The minister also discussed the National Digital Economy Policy and Strategy (NDEPS) which was unveiled by the president, Muhammadu Buhari in November 2019.

Pantami told the state governors to key into the policy and strategy. He also informed them of the federal government’s plan to help states with a digital economy strategy, through policy, digital skills and other areas of intervention.

Seplat committed to more asset acquisitions, growth – Avuru Olusola Bello

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till basking from the euphoria of acquiring Eland Oil and Gas, Seplat Petroleum Development Company plc, an indigenous oil and gas firm, says it remains committed to more asset acquisitions in the exploration and production space, and to organic growth, the CEO of the company, Austin Avuru, says.

Avuru, who said this at the Nigerian Association of Petroleum Explorationists (NAPE) January Technical/ Business Meeting on Mergers, Acquisitions and Divestments in E&P Business held in Lagos, explained that one of Seplat’s key mandate was to leverage opportunities in the oil and gas industry

through acquisition of more oil and gas assets.

This is coming after the company announced the completion of its Eland Oil and Gas plc’s acquisition deal on December 17, 2019.

Avuru had said then: “We are delighted to successfully complete the acquisition of Eland, which further enhances Seplat’s footprint in Nigeria and provides opportunities for enhanced scale, diversification and growth. We welcome our new colleagues and Nigerian partners as we look forward to working together in this exciting phase of our development.”

Addressing stakeholders at the NAPE meeting, he said Seplat had positioned itself as an early mover

through the acquisition of a 45% operated interest in OMLs 4, 38 and 41 from Shell, Total and Agip in 2010; thus, becoming the first Nigerian independent to acquire a package of oil and gas blocs directly from the Major International Oil Companies (IOCs) as part of a disposal process.

Following this landmark deal in 2010, Seplat further grew its portfolio through the acquisition of a 40% interest in the OPL 283 marginal field area from Pillar Oil. In 2015 acquired further interests in OML 53 and OML 55 from Chevron Nigeria Limited.

Seplat grew production at OMLs 4, 38 & 41 from 14,000bopd as at acquisition to a peak rate of over 84,000bopd.

Yale varsity faculty, IMSU sign MoU to scale up mental wellness access KELECHI EWUZIE

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ale School of Medicine’s Department of Psychiatry has signed a memorandum of understanding (MoU) tagged ‘Happiness project’ with Imo State University Teaching Hospital to scale up access to mental health services to the citizen of the south-eastern state of Nigeria.

The MoU also has the backing of the Yale Global Mental Health Programme, CBM International, the Imo State Primary Health Care Development Agency, Row Foundation (USA) and the Imo State government.

Thaddeus Iheanacho, associate professor of Psychiatry, Yale School of Medicine and cofounder of Happiness Project, says the project seeks to bring solutions to areas of the country where getting treatment for mental health has been a challenge.

Iheanacho, while speaking at the signing of the MoU in Lagos, notes that the goal of the project is to expand the programme to all primary care facilities in Imo state and eventually to other Nigerian states by training primary care workers in Imo State to screen for, assess, and treat mental health www.businessday.ng

conditions like depression, psychosis, and anxiety. “The programme initially taught more than three dozen healthcare workers how to integrate mental health services into routine primary care.

Over 50 patients were seen after the first training session and many more people who otherwise would have gone without treatment are now being evaluated and treated by clinicians. “Most of these people would otherwise not have access to treatment or else would have travelled five or six hours to get it,” Iheanacho states. https://www.facebook.com/businessdayng

@Businessdayng

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Friday 24 January 2020

BUSINESS DAY

news

Amotekun: Osinbajo brokers FG-South West governors truce

Government’s lack of integrity drives Nigerian passport to worst position in 2020

… as North-Central opt for regional security outfit

ENDURANCE OKAFOR

Anthony Ailemen (Abuja), Iniobong Iwok (Lagos), & Solomon Attah (Lafia)

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he controversy surrounding the establishment of Amotekun, may have been laid to rest as Vice President Yemi Osinbajo on Thursday brokered a truce between the Federal government and the South West Governors at the Presidential Villa, Abuja.

The meeting which was attended by the Minister of Justice and Attorney General of the federation, Abubakar Malami, however directed the South West Governors to “back to their relevant State House of Assembly to enact relevant laws backing the establishment of Amotekun”.

G overnor Rotimi Akeredoliu of Ondo State, while briefing State House Correspondents after the meeting disclosed that both parties have agreed that Amotekun remains while the South West Governors go back to work on the legal frame work He stated that the meeting agreed on the way forward, saying that a legal framework would be established to back up the initiative.

The meeting followed apprehensions over Amotekun creation, following complaints raised by some groups

including the Miyetti Allah group.

The governors at the meeting, which took place in the Vice President’s office include the Chairman of Nigeria Governors Forum (NGF) and Ekiti state governors, Kayode Fayemi, Governor Gboyega Oyetola of Osun state and his Ondo state counterpart, Rotimi Akeredolu, as well as deputy governors of Lagos, Oyo, and Ogun states.

The creation of Amotekun, a local Vigilance security arrangement by the South West Governors is said to have emboldened other regions to mull establishment of similar initiatives to counter prevailing security challenges occasioned by kidnappings, banditry, and sundry criminal attacks in their domains.

With the agreement on Thursday, the coast is now clear for the south west to establish and operate the regional security outfit, Amotekun.

Prior the development, the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, had earlier declared Amoteku as “illegal”.

The Inspector General of Police, Mohammed Adamu

www.businessday.ng

was also in attendance at the meeting.

The North-Central region has unanimously agreed to adopt Community Policing Strategy as an effective tool in bringing policing to the grass roots, the governments in the area have announced.

The decision was taken at a security meeting, tagged the North-Central Security Summit, held in Lafia, the Nasarawa State capital. The meeting was aimed at mapping out strategies to content the rising security challenges in the region, and by extension the country.

The summit had in attendance, governors of the six states, including the Federal Capital Territory (FCT) in the region, security experts, traditional rulers, state and federal lawmakers civil society groups and other stakeholders.

The six states in the South West region recently formed a security outfit codenamed Amotekun – the Yoruba name for Leopard- to fight armed robbery and kidnapping in the area. The formation of the outfit is now smeared in controversy, after the federal government declared it illegal and in contravention of the Constitution.

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cclaimed as the giant of Africa with the largest economy, Nigeria has one of the worst passports in the world, thanks to the poor integrity of the country’s government, Henley Passport Index of 2020 reveals.

Nigeria’s travel document can only open a few doors around the world; the passport holders can access just 46 countries without visas out of a possible 227. This is compared to the 100 countries that are open to South Africans.

“These results imply that governments associated with relatively high corruption have difficulties increasing their visafree destinations, while highfunctioning states are likely to have stronger passports,” Uğur Altundal, a researcher in political science at Syracuse University, said.

The 2019 Corruption Perceptions Index (CPI) released globally by Transparency International on Thursday reveals that Nigeria slipped further in the perception of corruption in 2019. The Nigerian passport is ranked 46 on the Henley Passport Index and has a government integrity score of 26 out of 100 points.

Going two places worse

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… fell most sharply in last decade than 2018, the development is coming at a time when the current administration based its primary agenda on fighting corruption.

Coming behind war-toned Syria, Nigeria was ranked the biggest faller in the 2020 Passport Index by Henley & Partners.

Africa’s most populous nation dropped 19 spots since its 76th ranking in 2010 to settle at 95th position in 2020.

According to Juerg Steffen is CEO of Henley & Partners it is not surprising that countries which have lower passport power also have lower government integrity scores.

“Trade, for instance, is closely linked to passport strength, in that countries that have more open trade tend to sign more visa-waiver agreements. At the same time, visa-free travel broadens business opportunities. International travel and personal cross-border contact are also important in establishing and deepening business relationships,” Steffen said.

With the current rankings, Nigeria is trailing behind Ghana (65), Rwanda (59), Guinea (53), Mali (54), and Togo (55). Nigeria’s 62nd position in 2006 remains its best ranking so far since BusinessDay started tracking the data.

@Businessdayng

The Henley Passport Index, which periodically measures the world’s most travel-friendly passports stated in the first report of the new decade that Japan is now top of the leaderboard, offering visa-free or visa-on-arrival access to 191 destinations around the world.

Analysis of the report revealed that ten years ago, the UK held the number-one spot on the index, with a visa-free/visaon-arrival score of 166. Japan is now in first place, with passport holders able to access 191 destinations around the world without needing to acquire a visa in advance.

In 2010, the lowest ranking country on the index was Afghanistan, with a score of 26. Ten years later, Afghanistan remains at the bottom of the index, and, astonishingly, its score remains the same.

“In other words, there is a growing divide when it comes to travel freedom – a difficult truth that sits alongside the fact that globalization has made us more mobile and connected than ever before. It is undeniably the case that, over the years, there has been a substantial increase in the number of countries an average individual can visit without needing to get a visa in advance,” the report said.

Friday 24 January 2020

FT

BUSINESS DAY

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FINANCIAL TIMES

World Business Newspaper

MARTIN ARNOLD IN FRANKFURT

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he European Central Bank has kept its ultra-loose policy rates on hold and signalled that it expects them to stay there for many months as it undertakes its first strategic review for 16 years.

The central bank said it would outline the framework for the review of its monetary policy objectives and tools later on Thursday.

The review, only the second in the central bank’s 20-year history, is set to trigger bruising debates on some of the most divisive issues in central banking, from the side-effects of negative rates to the financial risks of climate change.

Christine Lagarde, who took over from Mario Draghi as ECB president in November, said it would be a “broad exercise” and that the bank “cannot operate as we did back in 2003”.

“It will be a whole host of things,” Ms Lagarde told a press conference on Thursday. “It will have to do with how we deliver, how we measure what tools we have and how we communicate.

“My commitment was to be able to listen to the expectations of the people.”

The ECB president said it had already shifted about €1bn of assets in its own pension fund into green assets. She added that its review would look at “how much the bank can do or should do” in a similar direction on the €200bn of corporate bonds it has bought via its €2.6tn quantitative easing programme and assess “whether

ECB holds rates as Christine Lagarde launches strategic review President promises broad scrutiny of central bank’s objectives and policy tools

Christine Lagarde said risks to the ECB’s growth outlook remained “tilted to the downside” © Armando Babani/EPA/Shutterstock

it collided with our mandate”.

The process starts at a time when central banks are grappling with doubts about whether their main tools have lost their effectiveness, as inflation remains stuck below their targets despite years of accommodative policy measures.

Ms Lagarde has been given some breathing space for the review after the eurozone economy showed signs of stabilising recently, albeit at a low level, as risks of a full-blown trade war or

a deeply disruptive Brexit recede.

In a press conference on Thursday Ms Lagarde said risks to the bank’s growth outlook remained “tilted to the downside”.

But she also said risks had become “somewhat less pronounced” as trade tensions have eased in recent weeks, after a partial deal over tariffs between China and the US. Ms Lagarde said the “phase one” agreement between Beijing and Washington was a “critical development” that would have

consequences around the globe, with trade potentially shifting in response to the deal. “It is something that our teams are looking at very carefully to examine what the impact [will be] on a net basis for the euro area,” she said.

Ms Lagarde said climate change would be “an important matter” for the review to examine. While acknowledging that some policymakers fear “mandate creep” by central banks on environmental issues, she said the ECB could not rely on others

to tackle the issue, adding: “Failing to act is already failing.”

The brightening prospects for the eurozone, despite the fact that growth is expected to have slowed from 1.8 per cent in 2018 to 1.2 per cent in 2019, have prompted investors to shift from anticipating a rate cut this year to positioning themselves for rates to rise next year.

One cloud over the ECB’s rate-setting meeting came from the German constitutional court, which is considering whether the central bank’s €2.6tn bondbuying programme is legal. The court announced on Thursday that it would give its ruling in the case on March 24.

The case stems from a complaint by a group of almost 2,000 people, led by German economists and law professors, who argue that the ECB’s so-called quantitative easing programme is illegal.

The German critics say QE breaches eurozone treaties that prevent the central bank from financing member states’ governments by buying their debt. While this was rejected by the European Court of Justice in December 2018, its ruling came back to the German court to interpret it under national law.

US and France agree deal on digital tax

Le Maire and Mnuchin reach truce in talks to transform how multinationals are taxed CHRIS GILES

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he US and France have formally declared a truce in their fight over digital taxation after the US dropped its insistence that any international taxation agreement should be optional, making the prospects for a global deal in 2020 significantly brighter.

Talks on the sidelines of the World Economic Forum in Davos on Thursday morning between Bruno Le Maire, the French finance minister, and Steven Mnuchin, US Treasury secretary, resulted in a US pledge that its trade representative would suspend planned tariffs on $2.4bn of French goods.

France agreed to stop collecting its digital tax, although corporate liabilities will still be accrued.

The breakthrough on Thursday shows that the two coun-

Bruno Le Maire, French finance minister, right, and Steven Mnuchin, US Treasury secretary, have made a breakthrough in negotiations © IAN LANGSDON/EPA-EFE/REX/Shutterstock

tries have established a basis of trust in their negotiations over a global accord to transform the way multinationals are taxed.

The agreement removes a US requirement that any global digital tax should be optional — a demand that proved a stumbling block in negotiations earlier this www.businessday.ng

week. The US stipulation — first made in December — threatened to kill any prospect of a deal because, as Mr Le Maire said in Davos this week, “I don’t know of any company that would opt for taxation”.

Officials close to the negotiations said that the US would

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stick to the language it used in its December statement that any international digital tax must follow “safe harbour” rules, but these would be redefined to avoid stating that the taxes were optional.

Angel Gurría, secretary-general of the OECD, said the negotiating process was back “on track” and he hoped countries would make progress in the next phase of negotiations in Paris next week, when 137 countries will engage in formal discussions at an OECD conference. The aim is to agree an international tax framework by the end of this year.

Mr Gurría said that “a lot of political will and a great spirit of compromise” was still needed to reach an international agreement. Failure, he added, would lead to a “cacophony” of national actions. @Businessdayng

At stake is the way companies are taxed; any agreement could rip up a century of corporate taxation policy that links companies’ revenues to their physical location. A breakdown in the talks could spark a transatlantic trade war, officials have warned.

The discussions have been tense, with the US threatening the UK and other countries over their plans to introduce national digital taxes if the global talks fail.

The UK said it intended to legislate for a digital tax to come into force in April.

Sajid Javid, the UK chancellor, said on Wednesday in Davos that “there has been a growing disconnect between where customers are based for these businesses and where the profits are generated”.

The UK’s resolute attitude, in Continues on page 44

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Friday 24 January 2020

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NATIONAL NEWS

China extends travel restrictions in effort to contain coronavirus

Hospitals in Wuhan overwhelmed by country’s worst viral outbreak since Sars

In addition, daily monitoring of people with respiratory symptoms is being broadened from recent arrivals from Wuhan to travellers from anywhere in China, including Hong Kong and Macau. The government also said it was probing the distribution of false reports about new infections via a messaging app.

Singapore’s health ministry confirmed the city-state’s first coronavirus case, a 66-year-old Wuhan man who travelled there from China this week. Two other suspected cases, both from Wuhan, had been identified. Preventive measures at land and sea checkpoints had been stepped up, the ministry added.

China’s benchmark CSI 300 index closed 3.1 per cent lower, marking its worst one-day performance since May in the final session before the week-long lunar new year holiday. Hong

Kong’s Hang Seng fell 1.9 per cent.

Shares in Macau casino operators were among the biggest movers, with SJM Holdings down 4.5 per cent and Galaxy Entertainment dropping 3.5 per cent in Hong Kong.

The World Health Organization was set to meet in Geneva on Thursday to decide whether to declare a global emergency over the outbreak. If it goes ahead with the measure, it would be just the sixth such instance in the past decade.

During the Sars outbreak in 2003, thousands of people in Beijing were quarantined in their homes, but a city-level travel ban was not imposed.

In Wuhan, some residents said they had attempted to depart before the ban was implemented but were unable to leave.

“I heard about the train cancella-

tions in the middle of the night, but came to the station anyway in case I could change my ticket.

It looks like that is not possible,” said Li Lei, 24, who planned to travel to Chongqing. Private road transport was still allowed.

Another Wuhan resident said her 57-year-old mother had been experiencing symptoms of the virus for a week but was turned away from several hospitals. “When we arrived at the hospital in the morning, staff said the pulmonology department was closed after four doctors had been diagnosed with coronavirus,” said the person, who asked not to be named.

Beijing is under mounting pressure to prevent a repeat of the Sars crisis, when nearly 800 people died. The reaction this time has been considered somewhat better than during the Sars outbreak, when the virus was thought to have emerged in late 2002 but was only reported officially in February 2003 — a delay that gave it more time to spread.

Chinese internet users took to social media to discuss how authorities in mainland China and Hong Kong were handling the outbreak, commenting on the rapid response from the Hong Kong government and condemning the lack of transparency and openness from mainland authorities.

The People’s Daily, the official Chinese Communist party’s mouthpiece, reported the outbreak far down on its homepage on Thursday, below news about President Xi Jinping wishing all Chinese a happy new year.

A report on the virus only appeared 34 minutes into Chinese state television’s nightly news programme the previous day.

tal taxes largely hit US companies and destroy international taxation conventions. France, the UK, Italy and others argue that the nature of business has changed and question why the world’s most profitable companies should pay little to no domestic corporate taxes because profits are shifted abroad.

But Mr Mnuchin faced frustration from some other countries in Davos over the aggressive stance he took.

As recently as October, no one thought international cor-

porate taxation would become the subject of a stand-off. Talks at the OECD initially progressed smoothly towards a grand bargain in which more countries gained corporate taxing power at the expense of multinationals that would have to pay more tax, and low-tax jurisdictions such as Ireland and the Netherlands.

Under OECD proposals, countries would gain the right for the first time to levy a tax on highly profitable multinationals based on the location of their customers. This would hit

companies such as Google, but also big French luxury brands and German car companies.

A global minimum corporate tax rate would reduce the scope for companies to shop around for the lowest tax jurisdictions in which to locate their profits.

In a December U-turn, Mr Mnuchin called for the first part of the proposal, the tax on multinationals, to be optional. Mr Le Maire said: “An optional solution is not a fair and efficient starting point for an OECD solution.”

DON WEINLAND AND TOM HANCOCK

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hina has expanded travel restrictions from Wuhan to two nearby cities, as authorities battle to contain a viral outbreak that has overwhelmed hospitals and sparked global alarm.

In Wuhan, a city of more than 10m people, all public transport in and out of the city was closed at 10am local time ahead of the new year holiday, when hundreds of millions typically travel across the country.

The authorities later extended similar restrictions to Huanggang city, south-east of Wuhan, where residents were told not to leave without a special reason, according to an announcement on a city government website.

In the nearby city of Ezhou, trains were stopped from leaving or entering the city.

The lockdown in Wuhan to curb the outbreak — China’s worst since the Sars epidemic 17 years ago — coincided with an announcement that Beijing was cancelling large public events, including fairs for China’s lunar new year, because of the coronavirus.

Beijing’s Forbidden City, one of the country’s top tourists attractions, also said it would close until further notice.

The new virus has killed 17 people and infected more than 600 in China. Chinese state television on Thursday afternoon reported three new confirmed cases in the northwestern province of Shaanxi. Beijing’s culture and tourism bureau said public events including temple fairs

The body temperatures of passengers on a train from Wuhan are checked as they arrive in the city of Hangzhou © AFP via Getty Images

were being cancelled in China’s capital to “strengthen control” of the situation.

Cases have also been confirmed in the US, Japan, South Korea, Thailand, Macau, Taiwan, Singapore and Hong Kong.

Residents of Hong Kong, which was hard hit during the Sars outbreak, rushed to buy face masks as news broke of the first confirmed case in the city on Wednesday. One pharmacy on Hong Kong island said it had sold out of its latest order of 200 boxes of masks within half an hour. Authorities in the city confirmed a second case in the city on Thursday.

Taiwan stepped up its border control measures. Chinese citizens who were Wuhan residents would be blocked from entering Taiwan with immediate effect, said Chen Shih-chung, health minister.

US and France agree deal...

Continued from page 43 the face of Mr Mnuchin’s threats to impose “arbitrary” tariffs on its car industry, emboldened the French.

Mr Le Maire insisted on Wednesday night that France had not dropped its tax, which he said would remain in place until there was an international agreement. He had faced criticism at home over suggestions that he had capitulated to the US. Mr Le Maire said: “I want to be very clear. [There has been]

no suspension of the French taxation, no withdrawal of the French taxation. Either there is an international agreement in 2020 and in that case the international agreement will replace the national taxation, or there is no agreement at the OECD, and in that case, since the French taxation remains in place, the companies will have to pay.

“In any case, digital companies in France will have to pay their due taxes in 2020.”

The US complains that digi-

Friday 24 January 2020

FT

BUSINESS DAY

45

ANALYSIS

Iran: the unspoken battle to succeed Ayatollah Khamenei After the assassination of Qassem Soleimani, hardliners believe they have the upper hand NAJMEH BOZORGMEHR

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“

ring your people out of darkness into light, and remind them of the Days of Allah,” reads a line in the Koran, Islam’s holy book.

This month Iran witnessed two Days of Allah, at least in the minds of Iranian leaders. When Ayatollah Ali Khamenei, the supreme leader, recited the verse to thousands of worshippers last Friday, he reminded them of what he called the blessings brought by two different events over five days.

The first was what he described as “the world’s biggest” funeral procession for Qassem Soleimani, a commander of the Islamic Revolutionary Guard Corps for overseas operations who was killed by the US in Baghdad on January 3. The second was the unprecedented missile strikes on bases housing US forces in Iraq on January 8 by the elite guards force.

The top leader’s metaphoric language sent a clear message to Iranian politicians — and to the rest of the world. The Islamic republic, analysts believe, will be even more steadfast in its ideological path at home, while in the rest of the Middle East the guards will promote a fresh radicalism.

Mr Khamenei’s steadfast support for the guards — despite their role in the shooting down of a Ukraine airliner that killed 82 Iranians just hours after the attack on the

missile attack on US forces which was choreographed to demonstrate Iran’s determination to avenge the assassination of Soleimani without triggering a full-blown war. While no American soldiers were killed, Iran sent messages to the US via the Swiss embassy that it would be the first and last strike if the US administration refrained from hitting back.

“Recent developments were like a wakeup call,” says a relative of the supreme leader. “[They] reminded us that the US can get too close to a war with Iran and we need another courageous leader who is able to maintain the country’s stability and power.”

An Iranian woman shows a photo of Qassem Soleimani during a protest against his killing in a US drone attack on January 3 © WANA/Reuters

US forces — comes against the backdrop of a tense battle over who will replace the 80-year-old supreme leader when he dies, a decision that will determine Iran’s fate for decades to come. The choice will depend on where the balance of power lies at that time within the Islamic republic. In recent weeks that balance has further tilted in favour of the guards and their hardline supporters.

“We are witnessing the most complicated domestic and foreign games all centred on the issue of succession,” says a reformist analyst. “The [further] empowerment of the guards is a deliberate policy to make them the dominant power so that they can play the main role in the power transition.”

According to many hardliners, the events highlight the need to have another pragmatic leader willing to stand up to the US. They play down speculation from reformists that Iranians will want the next supreme leader to be more of a ceremonial post, rather than another all-powerful figure.

It was Ayatollah Khamenei — as the commander-in-chief of the armed forces — who authorised the first-ever direct

“The country cannot afford to risk a period of trial and error by an unexperienced leader,” he adds.

Iran’s theocratic system is based on velayat-e faqih — rule of jurisprudence under Shia Islam. According to the interpretation favoured by hardline politicians, the religious leader may be selected by senior clergy in the Experts Assembly but he is considered to have been appointed

by God to rule the Islamic world in the absence of infallible descendants of Prophet Mohammed.

Reformist politicians, however, reject this religious interpretation. Instead, they say, a leader’s credentials need public legitimacy manifested in national elections.

These different interpretations have been at the centre of Iran’s political infighting since 1989, when Ayatollah Khamenei replaced Ayatollah Ruhollah Khomeini, leader of the 1979 Islamic revolution. Mr Khamenei, who does not have the charisma and high religious credentials of his predecessor, has instead relied on the revised constitution, which gave him an “absolute

authority” over all state affairs. Since then, he has helped the guards expand their influence and has turned them into his main arm to exercise power. After recent events, those efforts are now likely to be accelerated, say those close to the regime.

“When, God forbid, Mr Khamenei dies, the guards will completely take over the country so that the Experts Assembly can choose a leader,” says a regime insider. “On that day, the guards will be the top force to influence the choice, curb any possible crises and more importantly preserve the territorial integrity.”

The 120,000-strong guards are Iran’s most organised institution, giving it considerable influence over the succession. It also controls a voluntary force believed to be several million strong, adding to its ability to wield that influence.

It is not merely a military force. Politicians close to the guards are in various institutions such as the leader’s office, the parliament and the judiciary. The force is believed to have interests in telecoms, trade, petrochemicals and other sectors — something President Hassan Rouhani has previously tried to curb by cutting it out of contracts at state-owned enterprises. It has also expanded its cultural influence, from producing movies and documentaries to contemporary art, and runs a feared intelligence service responsible for the imprisonment of pro-democracy activists and dual nationals accused of espionage.

While the guards have some influence over Ayatollah Khamenei, analysts say, they remain loyal to him and respect his final say in all affairs. The next leader, however, may not enjoy so much authority.

“The guards are in such a powerful position that no [future] leader will ever threaten their interests,” says Amir Mohebbian, a commentator close to conservative forces in the country. “We are always in an emergency situation and in dire need of stability in a country characterised with historic fears of insecurity.”

The elite forces say they observe a constitutional duty to preserve the country’s frontiers but are also responsible “for fulfilling the ideological mission of jihad in God’s way”.

That translates as the guards believing they have a responsibility to galvanise the country against any perceived US threat to Iran and the Islamic world. Hardliners in Tehran fear the ability of Washington to influence Iran’s politics and suspect that Democrats in the US and reformists in Iran have long hoped to resolve historic differences to shape the Islamic republic’s future.

When Mr Rouhani signed the deal with the US and other major powers in 2015 to rein in Tehran’s nuclear ambitions, concerns grew within the guards about the potential for a loss of Iranian influence within the region. This was particularly worrisome because Mr Rouhani was re-

elected in a landslide in 2017 on promises of getting all US sanctions lifted — an apparent pronouncement of his desire for rapprochement.

However, President Donald Trump withdrew the US from the accord in 2018 and imposed even tougher sanctions on the country. Mr Rouhani’s signature achievement was erased and with it any ambitions he might have had of becoming the next supreme leader.

“Even if one day we negotiate with the US, the talks will not be with Trump; won’t be strategic [no normalisation of ties] and will be done only by conservatives not reformists,” adds the regime insider. “We need to see changes in [the US] Congress; whether Democrats will pursue a fair policy by which Iran is not under pressure over its missile programme.”

The strategy for now appears to be to play down the tough new US sanctions and mobilise public opinion in the region against Washington and Israel.

“The guards’ identity and power is in opposition to the US,” says a reformist politician. “They know that if they take a step back, Americans will look for them in the backyards of their houses. The guards are increasingly into games which are becoming more violent while still smart [in order] not to risk the regime’s survival.”

Reformists, however, say the guards are overplaying their hand — both in domestic and Middle East politics, with incidents such as the alleged attack on Saudi Aramco facilities last year — which could provoke further unrest at home.

Iranian society is not as obedient as it was three decades ago and potentially less willing to accept a new leader if he is close to hardline forces. Iranians are more educated and have constantly pushed back boundaries, forcing the republic’s rulers to grudgingly allow some opening of the country politically, culturally and socially.

Reformist politicians warn that Iranian public opinion cannot forever tolerate the regime’s risky hostility with the US. The accidental shooting down of the Ukraine International Airlines jet, killing all 176 people on board, is a vivid example. After initial denials, the guards admitted the blunder but only after the US, Canada and Britain had all disclosed details of Iran’s unintentional role in the disaster. The acknowledgment massively damaged public faith in the regime.

Thousands of people in big cities, including university students, poured on to the streets, chanting provocative slogans. They called the leader a “killer” whose guardianship was “null and void” and described the guards as a force similar to Isis. Ayatollah Khamenei did not back down, saying these “hundreds” were irrelevant in the face of “tens of millions” who attended the Soleimani funeral.

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Friday 24 January 2020

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FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

The world needs a Libor for carbon pricing Setting a price would make it easier to run economic models and explain choices to voters GILLIAN TETT

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lobal leaders made plenty of bold — and often pious — pledges about climate change this week as they gathered in Davos. One of the most thought-provoking comments came from Axel Weber, UBS chairman, about carbon taxes.

He predicted that finance is on the verge of “a big change in market structure”, as investors wake up to climate risks and embed carbon prices into their portfolio decisions.

“The carbon price will become like Libor,” he declared. The London Interbank Offered Rate — its full name — served as a vital benchmark for western loan markets for three decades, until revelations in 2012 that some traders had manipulated Libor prompted a regulatory overhaul.

Is this compar is on farfetched? Some UBS rivals think so. “The analogy doesn’t work,” a leading Wall Street banker snorted on Thursday after hearing Mr Weber’s prediction. He noted that Libor rates are set daily based on banks’ estimates of market conditions, while a carbon “price” would be an externally imposed concept largely devised by bureaucrats.

Moreover, the history of carbon pricing is not a happy one. The concept first cropped up in the previous century when economists suggested that companies and other institutions should pay penalties for emitting carbon pollution, either at a flat rate set by government or at a “price” established through market auction. This was supposed to push companies to reduce their emissions The EU and some other places have already introduced such

UBS chairman Axel Weber: finance is on the verge of ‘a big change in market structure’ © Simon Dawson/Bloomberg

penalties, to a limited degree. But the existing rate of global adoption is so uneven — and the mechanisms underpinning these projects sometimes so imperfect — that the existing implied “prices” for carbon have hitherto had limited impact.

The IMF recently calculated that with the world’s current hodgepodge of carbon pricing systems, there is an average global “price” of $2 per tonne today. But it warned that the world needs an average price of $75 a tonne to hit the Paris climate change goal of limiting global warming to less than 2C. The gap is depressing but does not mean the idea is dead. On the contrary, the fact that it came up repeatedly at this week’s World Economic Forum shows a rising level of interest.

On Wednesday alone, Britain’s Prince Charles called on the Davos

delegates to back a carbon tax and Ursula von der Leyen, European Commission president, warned that the EU plans to introduce tariffs on imports from countries without carbon prices in an effort to prod wider global adoption.

The current White House derides this as “protectionism”. But some US Republican luminaries including Hank Paulson and George Shultz are calling for a carbon tax, albeit renamed a “carbon dividend” to appeal to voters. Oil companies, including BP, ExxonMobil and Total, are supporting this initiative.

This does not guarantee that the world will heed Prince Charles’s appeal anytime soon, in a sensible or globally consistent way. But talking about a carbon tax now helps make clear to companies the looming costs to them if governments

get serious about climate change.

This week, Refinitiv calculated that if global policymakers do impose a $75 per tonne carbon price in the future, it would create a $4tn hit for companies. That scary number can be factored into models for valuing assets.

Discussing carbon prices now has a second benefit: it helps us think about the financial transfers which could or should be used to help specific populations or entire countries adjust to a climate shock.

When economists outline schemes for carbon taxes, they usually assume that the cash taken in will be redistributed. Setting a price would make it easier to model future economic scenarios and help politicians communicate the looming choices to voters long before a carbon tax system is actually put in place.

Such models do not equate to anything as precise (or as widely accepted) as a Libor benchmark rate. In that sense, then, Mr Weber’s bold prediction still seems far-fetched. But if nothing else, this week’s events have shown that the debate in business about climate change is moving faster than anyone might have predicted a year ago.

That in turn is sparking an explosion in green finance — and a commitment to overhaul corporate accounting systems. Sooner or later somebody is going to need to devise some credible benchmarks to anchor green financial products, and help the fast-swelling ranks of green auditors. Given the lack of alternatives, an imperfect carbon price is probably the least bad option. Let us hope that it turns out to be less scandal-tainted than Libor.

Isabel dos Santos charged with money laundering JOSEPH COTTERILL

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ngola’s attorney-general has brought charges of money laundering against Isabel dos Santos as the legal net around the daughter of the country’s former president tightened following revelations over the alleged source of her $2bn fortune.

Helder Pitta Gros said he had indicted Ms dos Santos as a probe into alleged embezzlement of funds from Sonangol, the state oil company she once chaired, entered a “decisive phase”, Angolan state media reported on Thursday.

Mr Pitta Gros added that the government could issue an inter-

national arrest warrant for Ms dos Santos if she did not voluntarily submit for questioning.

The indictment is the latest challenge for Ms Santos whose assets were frozen by the Angolan government earlier this month after prosecutors said she and her husband, Congolese art collector Sindika Dokolo, had failed to return more than $1bn in state funds.

Scrutiny of Ms dos Santos’s business empire increased this week after the International Consortium of Investigative Journalists accused Ms dos Santos of using her position as the former leader’s daughter to siphon hundreds of www.businessday.ng

millions of dollars from Angola through consulting fees to Sonangol and other schemes.

The allegations stem from 715,000 leaked emails, charts, contracts, audits and accounts that were initially obtained by the Platform to Protect Whistleblowers in Africa, an anti-corruption charity, and shared with the ICIJ. Ms dos Santos could not be immediately reached for comment on the indictment but has repeatedly denied all allegations of wrongdoing.

“This is an orchestrated and well-co-ordinated political attack by the current regime in Angola, which sees me as a threat,” she

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said this week. “Nowhere have the ICIJ even attempted to prove that my commercial endeavours have been at the expense of the Angolan people, because they can’t.”

Ms dos Santos, Africa’s richest woman, was appointed chairwoman of Sonangol under her father, José Eduardo dos Santos, who ruled Angola for 38 years and stepped down in 2017.

President Joao Lourenço was handpicked by Mr dos Santos to succeed him but soon after he took office Mr Lourenço set about removing Ms dos Santos and other members of the former leader’s family from state posts.

Ms dos Santos is also facing @Businessdayng

growing pressure in Portugal, Angola’s former colonial ruler, where she has several investments.

On Wednesday Eurobic, a Lisbon-based private bank, said that Ms dos Santos was selling her 42.5 per cent stake in the lender.

Since the leak, Eurobic has faced heavy scrutiny over its handling of offshore payments.

The sale “has already started, which given the existence of interested parties, should assure its completion very soon”, Eurobic said in a statement.

The bank said earlier that it would cut business ties with Ms dos Santos and her associates.

Friday 24 January 2020

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POLITICS & POLICY ‘Amotekun’ is a child of necessity - Afenifere Renewal …As South-West speakers meet in Ibadan over outfit Iniobong Iwok and REMI FEYISIPO

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ale Oshun, national p r e s i dent of the Afenifere Renewal Group (ARG), has said the formation of the Southwest security outfit ‘Amotekun’ has become inevitable because of the worsening security across the Southwest region.

Oshun said no amount of intimidation from any quarters could stop the security outfit from seeing the light of day, stressing that it had the full backing of the Yorubas both home and abroad.

According to him, “There is no Yoruba man that would not be in support of ‘Amotekun’; this is just to protect ourselves. Listen to our Obas, our intellectual community, the ordinary citizens; it has an overwhelming approval of the Yoruba people both home and abroad.

“We have to realise that it is an indication that every human being has a right to protect him/herself. Security is a public function; if anything, or someone comes to attack you, you have to defend yourself; that is what ‘Amotekun’ is all about,” Oshun said.

Speaking further, he criticised the Attorney-General of the Federation, Abubakar Malami, over his comment on the setting up of the security outfit, while describing it as ‘reckless’.

He said the constitution guarantees every Nigerian equal right, while adding that it was the highest form of injustice by the authorities if the current situation is allowed to continue without effort to check the trend.

“I have said it before that the AGF may be speaking for himself; because as the AGF, he should be conversant with the constitution that every individual has a right to defend himself from unlawful attacks.

“So, when you now say that we cannot set up ‘Amotekun’ and the criminals keep coming to attack us, so we can’t defend ourselves from them?

This is a government that is not providing the necessary guarantee that they can protect us. All the kidnapping, cult-related killings would not be taking place if the government is proactive. I believed the AGF comment is a reckless.

“He is the one that is politicising it; he is reckless. I have said that before and it is in the media. Maybe, he is waiting for all Yoruba people to be killed before he makes a move.

“What he has not realised is that even our laws do not say when you are attacked, you can’t fold your hands and look,” he added.

Meanwhile, speakers from the six states in the South West geo-political zone have thrown their weight behind the recently outfit.

Rising from a meeting of Conference of Speakers of

Wale Oshun

South West State Legislatures held in Ibadan, the Oyo State capital lauded the launch of the security outfit saying it would complement the efforts of the police and other security agencies.

Present at the meeting were Speaker of the Lagos State House of Assembly who is also the Chairman Conference of Speakers, Mudashiru Obasa; Speaker of Ekiti State House of Assembly, Funminiyi Afuye; Speaker of Osun State House of Assembly, Timothy Owoeye; Ondo State House of Assembly Speaker, Bamidele Oleyeloogun, and Ogun State House of Assembly, Olakunle Oluomo.

Others present at the meeting were representatives of

Imo Supreme Court judgment is abuse of judicial authority - Edo PDP IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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he Edo State chapter of the People’s Democratic Party (PDP) on Thursday described the recent Supreme Court judgment in Imo State Governorship Election as an abuse of judicial authority and a usurpation of the statutory duties of the Independent National Electoral Commission (INEC).

The party made the remarks during a peaceful protest against the judgment to the secretariat of the Nigeria Union of Journalists, Edo State council.

The Publicity Secretary of the party, Chris Osa Nehikhare, who spoke for the protesting party members and civil society groups, noted that the judiciary has become a rubber stamp of the executive.

Nehikhare said the protest tagged, ‘Deepening democ-

racy in Nigeria- signing the electoral law amendment by Muhammadu Buhari’, was aimed at reinforcing the previous protests nationwide which rejected the Supreme Court’s ruling in the Imo State governorship election.

He said it was also aimed at highlighting the need and exigency of assenting to the amended electoral law.

The opposition party, which also called for the immediate assenting to the amended electoral law by President Muhammadu Buhari, noted that assenting to the electoral law will substantially eliminate electoral malpractices in the country.

According to him, “There is a clear and present danger to the survival of democracy in Nigeria if the electoral laws and processes are not reviewed to suit transparent and open processes.

“The Imo State ruling is a clear misuse of judicial www.businessday.ng

authority and a usurpation of the statutory duties of the Independent National Electoral Commission.

“The legalising of the card reader will eliminate the absurd judgments where votes recorded surpass number of accredited voters and the law will turn a blind eye to this obvious anomaly.”

He recalled that over the years controversies have surrounded elections across the country because the processes, from the ballot box to the tribunal rulings have been manipulated.

“It is critical therefore, to bring to the attention of the Federal Government of Nigeria and the governments of the United States of America, The United Kingdom, Germany, France, China and other members of the United Nations General Assembly, that there are no credible, free, transparent and fair elections in Nigeria.

Development Agenda for Western Nigeria (DAWN) Commission, members from the state Houses of Assembly in the region, security advisers from the region and other concerned stakeholders.

In his welcome address, Speaker, Oyo State House of Assembly, Adebo Ogundoyin decried the statement credited to the Minister of Justice and Attorney-General of the Federation, Abubakar Malami where he said that the new security outfit is illegal.

“The reactions and controversies generated by the launch especially the statement credited to the Attorney General of the Federation, Abubakar Malami were surprising.

“Suffice to say again that ‘Operation Amotekun’ (which will consists mainly of locals in each community) is meant to complement the activities of other security agencies in curbing the rising and disturbing spate of kidnapping, assault, ritual killing, armed robbery and other criminal acts in the South West.

“To me, the legality or illegality of the launch is the most widely discussed issue in the media and indeed Nigeria today, hence our coming together under the auspices of the Southwest Speakers Conference to deliberate on the issue and pledge our unwavering support to the Operation is not only timely but also appropriate and commendable.

“I am happy this conference is providing further opportunity for us as number three citizens of our various states in the Southwest to give necessary legislative backing to our Governors so as to strengthen the efforts of the executive in putting adequate security measures in place in our zone. Another issue before us as Houses of Assembly is our quest to have financial autonomy as already enshrined in the nation’s Constitution.

“Recall that the Fourth Alteration Bill signed into law

by President Muhammadu Buhari granted financial autonomy to both the State Houses of Assembly and the Judiciary which consequently empowers us to receive our allocation straight from the

Federation Account. However, this is yet to be implemented.

“We are also expected to work in tandem with all the state governors in the region towards ensuring the success of the Southwest economic integration agenda. It gladdens my heart that states in the Southwest Nigeria have keyed into the vital need for regional cohesion, integration and synergy for all round growth and development of this part of the country.

I thank you most sincerely and I wish us all fruitful and happy deliberations”.

According to him, “I am delighted and pleased to offer a convivial welcome to Speakers of States Assembly in the South West Nigeria. It is gratifying to look around and see many familiar faces in our quest to work in synergy as well as lend our voices to issues relating to and affecting our states and the region as a whole.

“It is equally appropriate at this juncture to commend the DAWN Commission for its efforts in coming up with the security initiative. Since the launch of Operation Amotekun on January 9, 2020 in Ibadan by the South West Governors, several reactions have continued to trail the initiative.

The theme of this Conference ‘The imperative of Western Nigerian Security Network (Operation Amotekun): Legislative support for the initiative’, he said, could not have come at a more auspicious time than now.

Amotekun: Ibadan Progressive Union backs S/West governors …says there’s need for regional support to tackle insecurity REMI FEYISIPO, Ibadan

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badan Progressive Union (IPU), a foremost socio-cultural association in Ibadanland, has commended the courage of the six governors of the South-West states and their determination to secure Yorubaland through a collaborative initiative.

The IPU, according to a statement signed by its president and secretary, Olayinka Alli and M.B. Olatunji, respectively, declared its support for the recently launched Western Nigerian Security Network codenamed Amotekun.

This was just as the IPU promised the unflinching support of Ibadan sons and daughters to the success of the initiative, noting that it was strongly convinced that

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the regional outfit will be well-guided to prevent abuse and be focused on addressing the objectives for which it was set up.

Noting that the Nigerian Constitution made security of lives and property of every Nigerian a fundamental and inalienable right, the IPU said: “It is an open secret that our country has been faced with serious security challenges that have threatened the foundation of our nationhood.

“The daunting security challenges in the country have led to the deaths of many Nigerians in the hands of bandits and this has placed a moral burden on all patriotic citizens to join hands to halt the ugly trend.”

The Union added that with the country already at a stage where the poor and @Businessdayng

the rich are no longer saved, it became imperative to have a regional support for the nation’s security network, a role which it noted that Amotekun would play, if well-guided.

The statement further said: “The Ibadan Progressive Union is particularly delighted by the role being played by the Oyo State Governor, Seyi Makinde, for not only being part of the initiative, but also providing an enabling environment for the launching of the Amotekun outfit.”

The Union also commended the Governor of Ondo State and chairman of the South-West Governors’ Forum, Rotimi Akeredolu, as well as other South-West governors for providing the right and courageous leadership.

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Friday 24 January 2020

BUSINESS DAY

Business SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Enugu set to raise IGR to limit over-dependence on federal allocation REGIS ANUKWUOJI, Enugu

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nugu State government says it is set to utilize its improved internally generated revenue (IGR) to boost its economy, so that it would depend less and less on the federal allocations.

G overnor Ifeanyi Ugwuanyi also said that the state government has set in motion programs that would further lessen hardships faced by investors in the state.

The state has relaunched the revised Enugu State Business Agenda (SBA), an initiative of the Enugu Coalition of Business and Professional Association (ECOBPA).

The governor said that his administration had implemented reforms to increase the state’s IGR; pointing out that the impression that the state was a core civil service domain had been changed to include a state that is renowned for business.

Ugwuanyi represented by secretary to the state government (SSG), Simon Ortuanya, said that the state was only behind Lagos State in IGR recoup; saying that his administration had blocked all revenue leakages.

“Our state is currently the

Ifeanyi Ugwuanyi, governor, Enugu State

only one in the country that survive without Federal Allocations. We pay our workers and pensioners as and when due,” he said.

The governor stated that he had the desire to make investors comfortable in the state by providing the enabling environment. He said he has also addressed the incidences of multiple taxation in the state.

According to him, the state government was not unmindful of some touts that go about extorting money from business owners. He warned that

such people do not have the mandate of the state government to do that. And would be dealt with by the law. governor Ugwuanyi said that the state government has put in place a unified accounting system with a central revenue account; adding that the government has also taken the security of lives and property to the next level to ensure that businesses thrived in the state.

Matthew Kalu, a consultant with the Centre for International Private Enterprises (CIPE), while presenting a

brief, said, there were great need for economic reforms in the state. He decried the high taxes rates and rents in the state; saying that revenue generation needed not to be at the expense of businesses.

The consultant said that the issue had impugned on the development and growth of businesses in the state.

He said that granted that the state had made progress in the World Bank’s Index of Ease of Doing Business; but a lot still needed to be done. He called for the adoption of a business

agenda for important reforms.

“There should be an institutionalised system or forum where the public and private sector players will dialogue and look at issues that are negatively affecting businesses,” Kalu said.

Earlier, the chairman of ECOBPA and president of Enugu Chamber of Commerce, Industry, Mines and Agriculture, Emeka Udeze, said that the organisation comprised of over 30 different businesses and professional bodies. He said that the commitment of the association was to partner with the state government to create an enabling environment for businesses to thrive.

Udeze said that the maiden edition of SBA dealt with eight priority issues that were affecting businesses in the state; saying that it was gratifying to note that three of such issues had recorded some levels of improvement since the discourse.

“Interestingly, the 2018 World Bank Ease of Doing Business Report ranked Enugu State the second best in the country. There is no doubt that the implementation of the recommendations of this revised SBA would expand the state economy by attracting more investors,” he said.

Dep. minority leader ESHA set to change economic status of constituency REGIS ANUKWUOJI, Enugu

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he member representing Awgu, Aniniri and Oji River federal constituency of Enugu State, Toby Okechukwu has promised to take more youths from his constituency out of job seeking, and make them employers of labour.

Okechukwu, who is the deputy minority leader in the House of Representatives, disclosed this during a youth empowerment summit organized by the Awgu Youth Alliance (AYA) at Awgu, with the theme: “Youth Empowerment, Panacea to Sustainable Development of Awgu.” Over 3,000 youths attended the event.

The federal lawmaker said he had in 2019 empowered more than 200 youths from Awgu local government area of the state that went on skill acquisition training at the Scientific

Equipment Development Institute (SEDI), Enugu and the Metallurgical Institute, Onitsha in Anambra State.

Okechukwu, who was represented at the event by former state commissioner for information Godwin Udeuhele, said, that greater number of youths had already been shortlisted for another round of skill acquisition training in the 2020 empowerment program.

“I am impressed with the organisers of this program, which is meant to redirect the thinking of youths in Awgu local government, to think out of the box, to ensure they build themselves in different fields of endeavour, and become employers of labour in those chosen areas. The turnout in this summit is highly encouraging, unlike before.

I will redouble my efforts in making sure the empowerment programs are driven by the youth,” the federal

lawmaker said.

T h e d e p u t y m i n o rity leader HOR asked the youths to follow all the business tips and talks given to them by the resource persons to improve on whatever they are doing; and become employers of labour and trainers of people in various business of their interests. He added that if they do so, the sky would be their limit, provided their targets and focus are on selfdevelopment, he said.

The lawmaker promised to partner with AYA and other skill acquisition training agencies and organizations to ensure that youths of the constituency were empowered for self-actualization.

He called on the AYA and other youth associations to draw a master plan to key into the program, as over 50 percent of his 2020 empowerment program would be cantered on youths.

In his keynote address,

Akachukwu Chichebe from the National Space Research and Development Agency (NASRDA), Abuja, who spoke on a topic: “Awgu Youth empowerment: Synergizing the Barber, the Clipper and the Subject,” described the relationship between the human and material resources in Awgu and the tools available at the disposal to harness the opportunities that existed.

He advised that the youths should go for products that have comparative advantages, particularly in agriculture, where he said Awgu local government was a known entity in the agric fortunes of Enugu State.

Other resource persons at the summit that spoke, encouraged the youths on the need for skill acquisition and self-reliance, in view of dwindling white-collar jobs in the country. They were: S.N. Ndubuisi, the MD/CEO of SEDI; Greg Anyaegbudike,

team lead, UK Department for International Development/Partnership to Engage, Reform and Learn (DFID/ PERL) Abuja. They all stressed that there are so many federal and state agencies as well as private and international organisations which provide opportunities for training and empowerment of youths in different fields of human endeavour; and enjoined the youths to take advantage of such opportunities to better their lives.

Earlier, the president of Awgu Youth Alliance, Francis Akpa stated that the aim of organising the summit was to provoke industrial revolution and power up Awgu youths, having identified the challenges facing the youths and the development of Awgu. The summit, he said would, beside other areas, identify with the development of education, sports, entertainment and agriculture.

US based medical expert tasks FG, states on PHC services SABY ELEMBA, Owerri

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US based Nigerian medical doctor and humanitarian, Patience Onuoha has urged both the Federal Government and the state to initiate qualitative health care delivery services. Onuoha who is also the proprietor of Patchin Enterprises Limited, noted that sustainable free medical services at the grassroots would spare the masses from the hazardous effects of infectious diseases such as yellow fever, dysentery, malaria, diarrhoea and other infectious diseases.

The medical expert, an indigene of Ihiagwa clan in the Owerri West Local Government Area of Imo State, stated this at a ceremony marking the 2019 annual Ihiagwa day celebration during which she was conferred with a chieftaincy title by the traditional rulers of the two communities that make up the clan.

Famous for her penchant to alleviate the plight of the masses, Patience assured that she would continue to use her resources and connections within and outside the country to accelerate the pace of transformation of both the Ihiagwa ancient kingdom and the Dindi Ihiagwa communities.

In their separate remarks, the chairman of the Ihiagwa Town Management Committee (ITMC) and that of the event, Emeka Udokporo and Festus Ekechi (Akaekpuchi Onwa I of Dindi), described the day as sacred to the people. He said that it was organized to celebrate their common ancestry, the peace, love and unity of their clan.

Udokporo who particularly enumerated the achievements of Patience Onuoha in the community disclosed that the Mezie Ihiagwa (USA) had promised to construct the foundation and roof the civic centre project which would be properly equipped with among other things, the history of the Ihiagwa, its culture and festivals.

The traditional rulers of Dindi Ihiagwa Ancient kingdom, Eze Kingsley Odu and Eze Lucky Ajoku in their various remarks extolled Chief Patience Onuoha as a unique woman who has contributed immensely towards the development of the area.

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Friday 24 January 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Thursday 23 January 2020

Top Gainers/Losers as at Thursday 23 January 2020 LOSERS

GAINERS Company

Closing

Change

MTNN

N128.2

N127

-1.2

2.5

UBA

N8.75

N8.65

-0.1

N174.9

2.1

ETI

N7.7

N7.6

-0.1

VOLUME (Numbers)

N18

N19.45

1.45

N32.2

N32.1

-0.1

VALUE (N billion)

N37

N37.8

0.8

N1.17

N1.08

-0.09

Closing

Change

N588

N600

12

N25

N27.5

DANGCEM

N172.8

UNILEVER BUACEMENT

SEPLAT CAP

Company

ASI (Points)

Opening

Opening

GUARANTY HONYFLOUR

29,591.29

DEALS (Numbers)

2,915.00 196,929,090.00

MARKET CAP (N Trn)

7.710

…as Seplat, CAP, Dangote Cement, others rise Stories by Iheanyi Nwachukwu

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Dangote Cement Plc advanced from N172.8 to N174.9, adding N2.1 or 1.22percent.

The share price of Unilever gained N1.45 or 8.06percent, from N18 to N19.45. BUA Cement increased from N37 to N37.8 to, adding 80kobo or 2.16percent.

Market watchers observed that all sectors closed bullish

except for the Insurance sector that was negatively affected by the 8.33percent loss reported by Linkage Assurance.

Having traded even so far this week - two sessions of gains and declines –analysts we expect the week-onweek (WoW) performance to be largely determined by

FTSE 100 Index 7,507.67GBP -64.25-0.85%

Nikkei 225 23,795.44JPY -235.91-0.98%

S&P 500 Index 3,309.85USD -11.90-0.36%

Deutsche Boerse AG German Stock Index DAX 13,388.42EUR -127.33-0.94%

Generic 1st ‘DM’ Future 28,961.00USD -179.00-0.61%

Shanghai Stock Exchange Composite Index 2,976.53CNY -84.23-2.75%

15.242

Nigeria equities market end Thursday session in green igeria’s stock market ended Thursday t r a d i n g session in the green zone, thanks to equities like Seplat Petroleum D e ve l o p m e nt C o mpa ny Pl c, C h e m i ca l & A l l i e d Plc, Dangote Cement Plc, Unilever Nigeria Plc, and BUA Cement Cement Plc. The Nigerian Stock Exchange (NSE) All Share Index (ASI) gained 0.45 percent, helping to reduce the week-to-date (WtD) loss to -0.09percent, while the year-to-date (YtD) return increased to 10.24percent.

Investors gained N68.6billion as the value of listed stocks rose to N15.242trillion.

The NSE ASI increased t o 2 9 , 5 9 1 . 2 9 p o i nt s. In 2,915 deals, equity traders exchanged 196,929,090 units valued at N7.710billion. UBA, FCMB, Access Bank, GTBank, and Zenith Bank were actively traded stocks on the Bourse.

Seplat rallied most from N588 to N600, adding N12 or 2.04percent; CAP followed from N25 to N27.5, adding N2.5 or 10percent ; while

Global market indicators

Friday’s outcome.

On the losers table, MTN N Plc led the pack after its share price dipped from N128.2 to N127, losing N1.2 or 0.94percent. UBA moved down from N8.75 to N8.65, losing 10kobo or 1.14percent, while ETI Plc dipped from N7.7 to N7.6, losing 10kobo or 1.30percent.

United Capital hosts 2020 outlook breakfast session

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icking the year off on a high-note and as part of its strategic initiatives, the Investment Banking division of United Capital Plc, a leading pan-African investment banking group, is hosting a breakfast session titled 2020 Outlook: Decade of Alternative Investments.

The session which will hold on Friday, Januar y 24, 2020 in Lagos has been designed to discuss 2020 and this decade’s financial market outlook as well as the paradigm shift in investments subscribed to by the buyside investors (i.e. Pension Fund Administrators, Insurance Companies and Asset Management Firms).

The last decade witnessed the buyside participants invest largely in plain vanilla instruments offered by the market to yield positive returns. However, as the t o t a l a ss e t va l u e u n d e r ma na g e m e nt c o nt i nu e s to grow, we believe that the buyside investors can deploy funds into alternative instruments that contribute to the sustainable economic development as well as yield higher returns. Such instruments include the Infrastructure Funds, Real Estate Investment Trusts (REITS) and others aimed at improving the state of infrastructure in the country and ultimately aid growth and development.

On the breakfast session, the company’s Group CEO, Peter Ashade said “We believe

that as industry leaders, it falls on us to create platforms where the industr y can gather and have these crucial conversations on the next steps. It is also in line with our corporate strategy to embody fluidity that matches the changing times in our operations“.

“We are definitely excited about the possibilities for alternative investments in our clime and look forward to playing a big role in it.

While we are energized as an organization, it was also germain that we discuss with other players in the industry as such dialogues are beneficial to the industry across the board.“ He said.

The breakfast session is expected to be attended by the top echelons of the finance and investment banking community. It is to be headlined by Bismarck Rewane, Managing Director/ CEO of Financial Derivatives Limited and a seasoned economist Wale Olusi, Head United Capital Research.

It w ill als o feature a panel session of seasoned industry experts such as Andrew S. Nevin, Chief Economist & Partner at PwC; Eguarekhide Longe, MD/ CEO of AIICO Pension and immediate past chairman of PENOPs ; Ken Etim, Managing Partner, Banwo & Ighodalo;, Abdulkadir Abbas, Director, Securities and Investment Services of the SEC and Babatunde Obaniyi, Managing Director United Capital Investment Banking.

Seplat says committed to more asset acquisitions, growth

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eplat Petroleum Development Company Plc said it remains committed to more asset acquisitions in the exploration and production space, and to organic growth, the Chief Executive Officer of the company, Austin Avuru has said.

Avuru, who said this at the Nigerian Association of Petroleum Explorationists (NAPE) January Technical/ Business Meeting on Mergers, Acquisitions and Divestments in E&P Business held in Lagos

on Wednesday, explained that one of Seplat’s key mandate is to leverage opportunities in the oil and gas industry through acquisition of more

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oil and gas assets.

This is coming after the company announced the completion of its Eland Oil and Gas Plc’s acquisition deal on December 17, 2019.

Avuru had said then: “We are delighted to successfully complete the acquisition of Eland, which further enhances Seplat’s footprint in Nigeria and provides opportunities for enhanced scale, diversification and growth. We welcome our new colleagues and Nigerian partners as we look forward to working together

in this exciting phase of our development.”

Addressing stakeholders at the NAPE meeting, he said Seplat had positioned itself as an early mover through the acquisition of a 45percent operated interest in OMLs 4, 38 and 41 from Shell, Total and Agip in 2010; thus, becoming the first Nigerian independent to acquire a package of oil and gas blocks directly from the Major International Oil Companies (IOCs) as part of a disposal process.

Following this landmark

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deal in 2010, Seplat further grew its portfolio through the acquisition of a 40percent interest in the OPL 283 marginal field area from Pillar Oil. In 2015 acquired further interests in OML 53 and OML 55 from Chevron Nigeria Limited.

Seplat grew production at OMLs 4, 38 & 41 from 14,000bopd as at acquisition to a peak rate of over 84,000bopd.

Avuru explained: “The company has demonstrated its ability to work its assets and produce its reserves despite @Businessdayng

external negative factors such as downtime and losses.

“Seplat also began to invest in its gas business in 2010 in response to the Nigerian Government’s initiatives to improve the debilitating impact of poor power generation and supply in the country by opening the Domestic Supply Obligation pricing to market forces.

“We a re st rate gi ca l ly positioned to access Nigeria’s main demand centers with current well stock delivering around 300MMscfd (Gross).”

Friday 24 January 2020

BUSINESS DAY

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@Businessdayng

51

Women in Business

BUSINESS DAY Friday 24 January 2020

Nkasi Obim Nebo (Ph.D)

Clare Omatseye

Founder/Director of PeachAid Medical Initiative

MD/CEO JNC International Limited

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kasi Obim Nebo (Ph.D) was recently named Nigeria’s winner for the Commonwealth Points of Light Award by Her Majesty, The Queen of the United Kingdom.

Points of Light are outstanding individual volunteers – people who are making a change in their community. Every week day, the Prime Minister recognises an inspirational volunteer with the Daily Point of Light award.

UK Points of Light was developed in partnership with the US programme and launched in the Cabinet Room at 10 Downing Street in April 2014.

Since then, hundreds of people have been named Points of Light by the Prime Minister, highlighting an enormous array of innovative and inspirational volunteering across the length and breadth of Britain.

“I am greatly honoured and so touched to receive the Commonwealth Points of Light Award in recognition of my work. To see that every pregnancy is by choice; that every woman has access to clean and safe childbirth void of infections and bleeding; that every girl child has access to a hygienic menstrual supply is where my motivation comes from.

I am dedicating this award to all my incredible colleagues at ‘PeachAid Medical Initiative’: they are midwives, doctors, pharmacists, radiographers, lab scientists.

The many hours they put into this work, irrespective of where we go to, is the reason we are saving many lives and achieving results. We will not stop until we’ve reached every vulnerable young girl, and every pregnant mother in the rural communities across Nigeria with our life-saving services.”

Nkasi is a Maternal Health Advocate and a humanitarian worker experienced in reproductive health and family planning. She believes that no woman should die while giving life, and that every pregnancy should be by choice, and well planned. She is the Founder/ Director of PeachAid Medical Initiative.

PeachAid Medical Initiative (PMI), is a community based humanitarian Organisation, fully registered with the Corporate Affairs Commission (RC 80566), and the Federal Ministry of Health, Nigeria. They were established in July, 2015. Their work is

centred on reproductive health and family planning (their thematic areas).

They distribute menstrual cups to women who are internally displaced and cannot afford pads and tampons. They conduct free antenatal care services to give every pregnant mother in the poor rural community access to at least 1 antenatal care visit, even though about 4 or more is recommended throughout pregnancy by WHO. This service gives mothers the opportunity to see their babies in the womb, and know their sex and present conditions.

They distribute birthing kits so every woman will have a safe and clean delivery wherever they decide to give birth, without bleeding to death.

They train local birth attendants extensively; advancing their knowledge on maternal issues and afterward, set up a channel that monitors their activities. They also create access to unlimited supply of different types of contraceptives.

Their aim is to help reduce the high rate of maternal death at the rural communities and Internally Displaced Person Camps (IDPs) by bringing health closer to the people in these communities. They also aim at improving both the standard of reproductive health care service delivery and access to contraceptives options at the Primary Healthcare level in rural communities across Nigeria.

In this space, she oversees all the projects carried out at PMI. She works to continually develop an effective distribution line that will see women in rural communities’ access their lifesaving supplies, irrespective of their location at childbirth.

So far, she has reached about thirtyseven thousand (37,000) women and over 4,000 men and has connected with about four hundred (400) traditional birth attendants since the year 2015. Her work has been further developed through more than a decade of engaging in medical intervention activities. She has a Doctorate degree in Healthcare Ministry, and other professional certificates in Emergency Medical Services, Epidemiology, emergency obstetric and new born care, immunization essential, and maternal survival.

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By Kemi Ajumobi

lare is the Founder and Managing Director of JNC International, a 12-year old Turnkey Medical Equipment Solutions company, which presently has 16 exclusive distributorship agreements with major Global medical equipment manufacturers. These include Toshiba Medical -Japan, Olympus- Japan, Elekta-Sweden, Medtronic –USA and the Getinge Group-Sweden to name a few.

JNC’s competences are noticeable throughout the healthcare space in Nigeria as they constantly look to improve and provide quality and affordable solutions for desired need through their innovative strategies for solutions delivery. We deliver innovative healthcare solutions, create unique customer experiences and promote life & wellbeing through sustainable partnerships In the span of her 27-year career, Omatseye has developed the required capabilities to effectively monitor and oversee installations/ turnkey projects from the budding phase through execution to commissioning and post commissioning. She is highly skilled in healthcare equipment consultancy, management of healthcare equipment Installation and turnkey projects, project planning, management and integration, project fund and resource sourcing and healthcare solutions consulting and advisory.

Clare graduated from Ahmadu Bello University, Zaria with a Bachelor of Science degree in Pharmacy with honours and holds an MBA from Universidad De Navarra, (IESE) Barcelona. She founded JNCI in 1994 on the need to make a difference in the medical infrastructure landscape in Nigeria through the delivery of cutting edge medical diagnostic and interventional technology solutions and after sales service. Over the years, she has grown JNCI into a proudly ‘Nigerian National Corporate’ company receiving several International and Nigerian Awards/recognitions such as the renowned Frost & Sullivan Award for Quality in Customer Service.

Clare started her career in 1990 with an internship stint at Sterling Health (now GlaxoSmithkline). She later moved to May & Baker Nigeria, where she had a progressive career in several job roles – Sales Representative, Product Manager (Vaccines),

Business Development Manager (Pasteur Merieux Connaught) and National Sales Development Manager.

She left May & Baker Nigeria to become an Executive Director, Business Development with Aventis Pasteur Nigeria, (a French Multinational Pharmaceutical Company) where she spent another two and a half years, before taking on a new frontier position as the Country Manager, Nigeria for Huntleigh Healthcare UK Plc – a British multinational quoted on the NYSE. After a year, Clare decided to follow her passion to make a difference in the Healthcare arena and left to set up JNC International (JNCI).

She is a member of the Pharmaceutical Society of Nigeria (PSN), the Society of Quality in Healthcare in Nigeria (SQHN), Society for Corporate Governance (SCG), Paediatric Association of Nigeria (PAN) and Women in Successful Careers (WISCAR) NGO. She sits on the Board for a number of organisations as: Founder & Chairman, Vaccipharm Limited, a cold chain vaccines and pharmaceutical distribution firm that she founded in 1999; Director, Society for Corporate Governance (SCG), as the first and only female director; Director, Advisory Board of the Entrepreneurial Development Centre (EDC) of the Lagos Business School.

On the importance of Universal Health Care, she says “Universal health coverage is a human right and every year, there are so many people that lose their lives unnecessarily. This is because of the plethora of challenges that face us in West Africa health.

Access to finance is a big issue; people are paying out of pocket when they get sick. This vicious cycle of poverty makes people make tough choices. There are a lot of things we can do together and the only way we can do this is by having open dialogues with strategic partnerships in the public and private sector.” She says.

She is a Major Donor-Paul Harris Fellow and as an astute Rotarian, she chaired the 1st African Health Summit and also has several scholastic honours and membership of clubs and societies whose vision is to improve the health status of Nigerians. Omatseye is married and is the extremely proud mother of two daughters and a son.

For sponsorship and advert placement contact: kemi@businessdayonline.com Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.