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NEWS YOU CAN TRUST I **TUESDAY 25 DECEMBER 2018 I VOL. 15, NO 210 I N300 DO THEY KNOW IT IS CHRISTMAS?

Christmas cheer fails to lift retail sales as consumers remain stressed CHINWE AGBEZE

hristmas sales this year is looking gloomy for traders as a sluggish economic growth and rising inflation rate takes a toll on the purchasing power of Nigerians. Christmas which is usually characterised by massive shopping, gift-giving, symbolic decorations and feasting is not Continues on page 34

Seasons Greeting On behalf of management and staff of BusinessDay newspaper, we wish our esteemed readers and advertisers a Merry Christmas and Prosperous New Year. The paper will be off the newsstand December 26, to return on December 27. Thank you.

Inside Forte Oil rises to highest in 6 months on Otedola’s divestment plan

P. 2

₦1,485,222.86

+4.88 pc

BUY

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$-N 362.00 365.00 £-N 457.00 465.00 €-N 406.00 414.00

Market I&E FX Window CBN Official Rate Currency Futures

($/N)

FGN BONDS

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Spot ($/N)

364.34 306.95

-0.42 12.97

NGUS FEB 27 2019 365.25

https: www.

0.23 13.50

-0.55

10 Y -0.07

20 Y 0.00

15.59

15.56

15.52

NGUS MAY 29 2019 365.70

NGUS NOV 27 2019 366.60

MTN pays N19.2bn to settle CCI dispute with CBN I

ENDURANCE OKAFOR

n what is seen as a positive development for portfolio and foreign direct investments (FDI) into Nigeria, MTN Group has reached an agreement with the Central Bank of Nigeria (CBN) to resolve the dispute over an alleged illegal transfer of $8.1 billion out

To implement notional reversal of 2008 private placement Case with AGF regarding $2bn back taxes continues

of Nigeria. MTN Group said on its twitter handle that it made a N19.2 billion ($53m) payment, and is “engaging with banks regarding

the agreement.” Responding to the settlement reached, Bismarck Rewane, CEO of economics consulting firm Financial Derivatives Company

(FDC) said it is a “very good development and will help repair part of the self-inflicted Continues on page 34

L-R: Zainab Ahmed, minister of finance; Mary Uduk, acting director-general, Securities and Exchange Commission (SEC); Patience Oniha, director-general, Debt Management Office, and Hameed Ali, comptroller general, Nigeria Customs Service, during a world press conference on the 2018 activities of the Ministry of Finance in Abuja, yesterday. Pic by Tunde Adeniyi

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Tuesday 25 December 2018

Total’s export plans put Nigeria’s oil production in a dilemma

…Shipment to be handled by biggest FPSO ever built DIPO OLADEHINDE

s Organization of Petroleum Exporting Countries (OPEC) and allied members unveils new plans of production cut to reduce an oil glut, France’s Total is poised to begin exports from the new ultra-deep Egina oil field offshore Nigeria in February 2019, at an initial rate of just over 100,000 bpd which could double in the following months. Quoting a copy of a loading program for the new grade it had seen, Bloomberg reported that Shipments of Egina crude from a floating offshore production vessel have been scheduled for February while the extra supplies will arrive at an awkward moment for an oil market that’s seen prices for benchmark Brent and West Texas Intermediate grades plunge by more than $30 a barrel since early October. The timing of the new field startup coincides with OPEC and nonOPEC production cuts of 800,000 barrels, or 2.5 percent of members daily output, from which Nigeria wasn’t spared this time around which will see its daily oil production drop by a minimum of 40,000 barrels a day. “Supported by both the oil and non-oil sector; the Oil and gas sector will benefit from higher oil production (2019f: 2.1mb/b vs. 2019e: 1.9mb/d), in view of expected onstreaming of Total’s 200kbpd Egina oil field and subsisting low-base effect in the sector,” Omotola Abimbola, a research analyst at Ecobank told BusinessDay. Despite some concerns over the stability of Nigeria’s oil operations

ahead of the February elections, exports of 200,000 barrels a day would make Egina a bigger grade than all bar three Nigerian crudes, based on January loading-program data compiled by Bloomberg. “The news about Total export plans is good news for Nigeria’s oil production, however the OPEC production cut is really a big challenge,” Femi Akinbobola an energy analyst at Sofidam Capital limited said. News about France Total’s export plans also comes as oil prices continue to be depressed by market fears that the cuts may not be enough to erase the oversupply, especially if fears of slowing global economic growth materialize. Brent crude futures were down 37 cents at $53.45 a barrel as U.S. crude futures lost 72 cents, or 1.6 percent, to $44.87, falling below $45 for the first time since July 2017. Brent fell 11 percent last week and hit its lowest level since September 2017, while U.S. futures slid to their lowest since July 2017. Akinbobola explained that the government will be faced with a dilemma of either increasing its oil revenue or incurring the wrath of OPEC through increase in oil production. The Egina oil field project is based on a subsea production system connected to a floating production, storage and offloading (FPSO) unit. The field’s production capacity is forecast at 200,000 bpd—around 10 percent of Nigeria’s total oil production, the project operator Total says.

•Continues online at www.businessdayonline.com

CBN to sanction BDCs for non-submission of audited financial statements ... Operators seek more time to comply HOPE MOSES-ASHIKE

he Central Bank of Nigeria (CBN) on Monday threatened to sanction Bureau De Change (BDC) operators who fail to submit their audited financial statement. Section 13 of the revised operational guidelines for the BDCs in Nigeria issued in November 2015 provides that every licensed BDC shall submit its audited financial statement to the director, Other Financial Institutions Supervision Department (OFIDs) of the CBN for approval not later than three months after the end of its financial year. It also provides that no BDC shall publish its audited financial accounts in a newspaper without the prior approval in writing of the CBN. However, the CBN observed that many BDCs have not been submitting their annual audited accounts contrary to the regulatory requirement. “We also observed that in some instance, the accounts were incomplete and inaccurate, and that some of the accounts were not endorsed or stamped by the external auditors, thus casting doubts on their integrity and reliability,” Tokunbo Martins, director, OFIDs said in a letter to BDCs. She said the audited financial statements to be submitted to the CBN shall be prepared in accordance with the applicable accounting standards.

Consequently, Martins said all BDCs are reminded to strictly comply with the regulatory requirement by submitting complete and accurate annual audited accounts duly stamped by and bearing the professional seal of a qualified audit firm and signed by the directors as required. “The CBN will in due course advise on the modalities for the electronic submission of the annual audited accounts to ensure efficiency and reduction in the use of paper. In the meantime all BDCs are required to submit hard copy,” Martins said in the letter. Responding to the development, Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON) said it is a statutory requirement that should be complied with, adding that the association has been sensitising its members on the need to comply with the regulatory requirement. Gwadabe noted that this is not the first time that the CBN is sanctioning the BDCs for non-compliance. He said the association will continue to dialogue with the CBN for more time to comply with and also to collaborate with the CBN on capacity building for members. He told BusinessDay by phone that over 2,000 BDC operators joined the sub-sector last year and that there is capacity gap among the members as a result. Currently, there are about 5,000 BDCs operating in the country.

L-R: Alma Etuk; Dolapo Ojo; Doyin Rhodes-Vivour; Bunmi Solanke; Desola Bello, and Ngozi Onyia, all members of the Old Girls Queen’s College 1971-76/77 set, during the celebration of Christmas with the less privileged as part of activities to inaugurate Children Arise Foundation in Lagos.

Forte Oil rises to highest in 6 months on Otedola’s divestment plan OLUWASEGUN OLAKOYENIKAN & ISRAEL ODUBOLA

orte Oil (FO) Plc, a Nigerian indigenous Oil and Gas company, rose to the highest in almost six months Monday on plans by Femi Otedola, its majority shareholder, to fully divest from the company.

The stock rose by 9.84 percent to N31.25 per share at the close of trading in Lagos, its highest since June 29, 2018, according to data from the Nigerian Stock Exchange (NSE). At the current price, Forte Oil is 40.61 percent below its 52-week high of N52.62 and 80.64 percent above its 52-week low of N17.30, while its year to date loss moderated to -34.57

percent. Otedola, a Nigerian billionaire, plans to sell his “75% direct and indirect shareholdings in the company’s downstream business,” Forte said in a statement posted on the NSE website.

•Continues online at www.businessdayonline.com

Winners, losers in Nigeria’s oil, gas sector in 2018 DIPO OLADEHINDE

018 was an eventful year for Nigeria oil and gas following a significant recovery in 2017 thanks to a turbulent 2016 when crude prices found the floor at $30 per barrel and militants were blowing up pipelines. Here are the top winners and losers in 2018. Winners Asset Renewals 2018 was a good year for asset owners who secured renewal of licenses for their acreages as President Muhammadu Buhari who is also Nigeria’s petroleum minister gave consent for the renewal of some Oil Mining Licenses (OML). Nigeria’s Seplat Petroleum Development Company Plc got consent for the renewal of OMLs 4, 38 and 41 while Eland Oil & Gas Plc received 20 year extension for OML 40 which hosts the Opuama field where production rates recently reached around 30,000 barrels of oil per day with further expansion through additional new wells. Shell was the biggest winner with Federal Government renewing 14 out of its 17 oil licenses which were due to expire in 2019. The 14 renewed assets includes OMLs 11, 17, 20, 21, 22, 23, 25, 27, 28, 32, 35, 43, 45 and 46; while the acreages revoked include OMLs 31, 33 and 36. FPSO Anticipated increase by 200,000 barrels of oil per day to Nigeria’s oil production (approximately 10 per cent of the country’s total oil production) received impetus following the successful deployment of the Egina Floating, Production, Storage and Offloading (FPSO) in 2018. WalterSmith Refining and Petrochemical Company Limited One of the major winners in 2018

ANALYSIS is WalterSmith Petroleum Ltd; the company made a $35 million debt facility agreement for the construction of a 5,000 barrels per day modular refinery which is expected to be completed within the next 18 months. According to Abdulrasaq Isa, chairman of the WalterSmith Petroleum Ltd the facility would be scaled up to 30,000 barrels per day after the first phase of the project must have been completed. Automotive Gas Oil (AGO), House Hold kerosene, Naphata would be the major products that would be produced from the 5,000 barrels per day refinery. Salvic Petroleum There is a lot of positive things to say about Oil Mining Lease (OML) 30, Nigeria’s second largest onshore Oil & Gas asset, located in the Niger Delta, about 35km East of Warri in 2018. SALVIC was the 3rd party operator of OML30 on behalf of the official (name-plate) operator, a company called Heritage Energy Operational Services Ltd (HEOSL). Undaunted by the foregoing challenges, Between March 2017, and April 2018, Salvic Petroleum embarked on the task of turning around the fortunes of OML30. The company assembled some of the best Nigerian hands in the Oil and Gas space, both locally and internationally, to set the company on its journey to create value from the erstwhile inactive OML30 and rehabilitate the Trans Forcados Pipeline which is a major evacuation line not just for OML30 but also many other oil and gas producers in the region. Petrobras After years of multiple efforts,

Brazilian state-controlled oil company, Petrobras sold its 50 per cent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader Vitol for $1.407 billion. The consortium was led by Vitol and comprises Africa Oil Corp, Delonex Energy Limited and Vitol Investment Partnership II Limited. Africa Oil has 25 per cent in the deal, Delonex Energy Limited (25 per cent) and Vitol Investment Partnership II Ltd. (50 per cent). First Exploration& Petroleum Development Company Limited (First E & P) Nigerian independent First Exploration & Petroleum Development Company Limited (FIRST E&P) made improved plans with Anyala and Madu fields and also finalized the acquisition of three dimensional (3D) seismic data on Oil Mining Leases (OMLs) 83 and 85. Under the agreement, global oil services giant, Schlumberger will contribute the required services in kind and capital for the project development until first oil. The joint project team will leverage the technical expertise of Schlumberger and the extensive local knowledge of the partners. The project is to be developed with an existing FPSO and is designed to add 50,000 Bbls of oil per day and 120 mmscf of gas per day. Losers PIGB bill President Muhammadu Buhari withheld assent to the Petroleum Industrial Governance Bill (PIGB) in 2018. The decision came after 17 years of rigorous consultations and legislative hassles on the document. The bill which has been in the saddle for close to two decades had

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Nigerian stocks record biggest daily rise in almost 3 years on banks, Nestle OLUWASEGUN OLAKOYENIKAN

igerian equities gained the most in a day on Monday in almost three years, driven by gains in two banks, consumer goods, and oil and gas companies. The All-Share Index gained 3.88 percent to 31,967.01 points at the close of trading in Lagos, cutting the year-to-date loss of the Nigerian Stock Exchange (NSE) to -16.41 percent. Dangote Sugar, Stanbic IBTC, Diamond Bank and Nestle gained the daily maximum increase of 10 percent each to N15.40, N50.60, N1.65 and N1,617.10, respectively. Seplat, an oil and gas company that is also listed on the London Stock Exchange, gained 9.99 percent to close at N642.90. Diamond Bank gained a seventh day following the

announcement last week of a planned merger with Access Bank. The merger is expected to produce Nigeria’s and Africa’s largest retail bank by customers. Performance of the local bourse has been challenged by concerns over Nigeria’s general elections scheduled for early 2019, exit of foreign investors to take advantage of higher returns in the United States and other countries. These have combined to weigh down on prices of stocks listed on the exchange. Today’s rally “can be likened to portfolio rebalancing by institutional investors,” Ayodele Ebo, Managing Director of Afrinvest Securities Limited told Businessday. “Most times, fund managers that have been heavy in other asset classes will try to rebalance their portfolios to align with their targets.”

The rally also came as billionaire Femi Otedola announced his intention to fully divest from Forte Oil, where he is the majority shareholder. Forte Oil said in a statement sent to the NSE that Otedola would sell all his 75 percent direct and indirect shareholding in the downstream business of the oil and gas company. Forte Oil gained 9.84 percent to rise to N31.25, the highest in nearly six months. All major sector indices also closed higher. NSE Oil & Gas rose by 5.7 percent; the Insurance 1.0 percent; Consumer Goods 5.5 percent, Industrial Goods, 2.6 percent; while Banking gained 1.4 percent. “We expect market performance to be positive in subsequent sessions till yearend, largely driven by portfolio rebalancing,” analysts at Lagos-based Afrinvest said in a note to clients today.

We’re using arts, entertainment to grow Lagos GDP - Ambode JOSHUA BASSEY

agos State governor, Akinwunmi Ambode, has stated the commitment of his administration to continue to play up the arts and entertainment industry to grow the economy and positively engage the youth, saying the sector remains a veritable platform to improve the Gross Domestic Product (GDP) of the state and Nigeria. Ambode spoke at the performance of a stage play – Oba Esugbayi, held at the Muson Centre in Onikan, Lagos, saying since coming on board, his administration has made conscious efforts

to invest in the arts and entertainment sector in view of its potentials. Ambode, who described the sector as the future of the state, said the investment so far made was geared towards using the industry as a springboard to plan for the burgeoning youth population in the state. “I am a lover of arts and as a government, we have invested so much in culture, entertainment and so on. The real GDP of Lagos is in entertainment and arts because that is where the future is. “The population dynamics of Lagos is like 65 percent below the age of 35 and you have to start to find somewhere to actually fill in that

gap to grow the GDP of Lagos and that is why we have decided that we would promote arts, culture and entertainment and that is just the right way to go,” Ambode said. The governor, who also commended the creativity and versatility of the cast and production crew of the stage play in coming up with the show, assured of continued support to the sector whether in government or out of government. “When I see younger people and the sense of creativity around them and the energy, it brings that sense of hope in this country and whatever support I can give in and out of government, I will do it without hesitation,” he said.

Set up special task force on flood disaster, clergy tells FG FRANCIS SADHERE, Warri

nited Nations Peace Advocate and general overseer, God’s Ministry Int. Inc., S.Y. Mamamu, has urged the Federal Government to set up a special task force on flood disaster to take care of the needs of flood victims in the future. Mamamu made this call on Sunday during the church’s 42nd celebration of the “Christian Feast of InGathering of the Children of God” held at Salvation City, New Ogbe-Ijoh, Warri, Delta State. He lamented that the recent flood, which devastated some communities close to the riverine areas in Delta State and other states, had caused a lot of hunger and starvation as people in the affected areas lost all they had

in the flood. He said he was compelled to appeal to the Federal Government to set up the special task force on flood disaster so as to put an end to the sufferings of flood victims across the country. He said, “The devilish flood that came this year has affected the resources of the whole economy, ranging from agriculture (farmlands, economic trees, rural/urban food production), mineral oil, air, water among others. “This situation has greatly affected the living conditions of many Nigerians in all the affected states.” Mamamu, who is also an Ijaw leader, appealed to Nigerian politicians not to heat up the polity but rather play politics of love for one another. He warned that the recent politics of bitterness being exhibited by politicians in the

country would not allow for progress to thrive, appealing to Nigerians to love one another. Also, the member representing the Ijaw ethnic nationality in the Delta State Oil Producing Areas Development Commission (DESOPADEC), Favour Izoukumor, who spoke with journalists at the occasion, commended the clergyman for organising the Christian feast, saying it was spiritually uplifting. Izoukumor used the occasion to appeal to Deltans to vote en mass for Governor Ifeanyi Okowa in the 2019 general election. “I want to employ the people of Delta State to continuously support the present government of Delta State being led by our smart and amiable governor, Senator Dr. Ifeanyi Okowa and our own leader, Deacon Kingsley Otuaro.

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Ignore the economy, enjoy the Christmas

Mazi Sam Ohuabunwa OFR, FPSN sam@starteamconsult.com

he timing is very wrong. Just last week, few days to Christmas, the National Bureau of Statistics (NBS), released its latest labour force statistics. Total number of the unemployed increased from 17.6 million in Q3 2017 to 20.9million in Q3 2018. Official unemployment rate moved from 18.8% in Q3 2017 to 21. 3% in Q3 2018. Unemployment plus underemployment reached 40%. Before this unpleasant news from NBS, the UNDP had announced Nigeria as the new world poverty capital with 53.7% of its 180 million Nigerians living in extreme poverty. That is to say that nearly 97 million Nigerians (those working and those not working) live on less than two dollars a day (700 Naira). India with about four times Nigeria’s population now has about 71 million people in that category. With Nigeria’s GDP growing at 1.8% and population growing at 2.5%, this is bound to happen. Perhaps this helps to explain why, in the last two weeks, I have Okechukwu Keshi Ukegbu Ukegbu, a public policy analyst and communication strategist, writes from Umuahia, Abia State

he Enyimba Economic City Project received a boost recently as Abia State and Federal Government signed Definitive Agreements .Definitive Agreements are documents defining the final terms of an agreement between buyer and seller, typically of a company’s assets or stock. In the words of President Muhammadu Buhari who witnessed the event, “such initiatives were exactly what his administration was looking for to create employment for the people and boost the economy”. The project which is expected to begin in 2019 as a private public partnership (PPP) of Crown Realties Plc, the host communities, Abia, and the federal government, targets over 625,000 jobs, urban housing of over 300,000 units, urban population of more than 1.5 million people. It is also projected to provide more than 2,000 industrial/ business units, with estimated annual value output of more than $5 billion. According to Gov Okezie Ikpeazu, Aba, the location of the project,” is strategically located for

constantly been on my Diamond mobile bank app transferring money to different people in different parts of the country, who have accompanied their pathetic stories with their account numbers. An acquaintance of mine in Kaduna sent me a text message: “Mazi, pls in the name of Jesus Christ, kindly find a place in your heart to assist me this Christmas, as I sms you, not a single pepper do I have at home....your widow’s might will do a lot. Below is my account details”. Single pepper? That is the pattern of most of the messages that pour into my phone repeatedly. Last Friday night, I promised a cousin of mine in Portharcourt that I would send him something to buy rice and chicken for the children after a lengthy cry of woes. That night I tried using my app, the bank said they were doing maintenance and so could not go. This ‘desperate’ cousin of mine had called seven times and the eighth call woke me from sleep. Why the apparent harassment? He said he had told the children and their mother that I was sending them something for food, and everybody kept a vigil waiting for the alert! This is the damning reality of today! I can bet that my situation is not exceptional. I am wondering what our politicians are going through now? If a retired man like me is facing this deluge of desperate calls for help, I can only imagine what politicians and office

‘

My first suggestion is to encourage all those who have, to make efforts to share with those who do not have. The Bible said that “those who lend to the poor, lend to the Lord” and that the Lord will pay them back bountifully

’

holders are facing this season. And coincidentally this is elections season. And some people who have no idea of what the reality is on the ground are talking about banning or legislating against vote buying. How long have we legislated against the police collecting bribes or extorting road users in the open on our highways? Who is obeying? And yet the Nigerian Police authorities cannot do anything about that. Let me see how legislation against vote-buying can be enforced. Recently I read a story (I have also read such reports in the past) that the IG asked

that all check points be dismantled in Nigeria. I travelled from Portharcourt Airport to Owerri to Umuahia to Arochukwu last week and I passed more than 30 police checkpoints and they were all busy collecting cash and in some cases returning change in the full glare of all. I then wondered if this area was still part of Nigeria and within the jurisdiction of the IGP? But when all is said and done, the situation with Nigeria Police is only symptomatic of what is wrong with Nigeria. Before I left Lagos, I met many of my friends from the South East and when I asked when they were going home, I was shocked that an unusual number said they were going nowhere. Some said they would travel home after Christmas and those that indicated they would travel for Christmas said they were not going in full force (that is to say they would leave some of their family members behind). What about who would host the meetings at home? No volunteers! That’s when I knew that Latin has moved from ‘Mensa’. Yet the cost of transportation did not come down, neither has the cost of foodstuff. Eventually we blackmailed some who have recently received arrears of salary in Abia state to at least host the compound meeting. The redeeming feature in all this is that the federal government is aware of this persisting challenge. And despite the large social spending and the efforts in implementing the Economic Recovery

and Growth Plan, the continued worsening of unemployment and poverty must be embarrassing to the government. Perhaps that’s why President Muhammadu Buhari has asked Nigerians to show understanding, be patient and give him more time to solve this apparently intractable problem. That is hoping that Nigerians have not reached the limit of their patience. But whatever may be their verdict on February 16, 2019, the critical issue now is what to do to enjoy this Christmas. My first suggestion is to encourage all those who have, to make efforts to share with those who do not have. The Bible said that “those who lend to the poor, lend to the Lord” and that the Lord will pay them back bountifully. I saw MTN giving out N10, 000.00 to passengers on Arik flight. What a misplaced gesture. They should have gone to motor parks! But that is the kind of gesture we badly need to help many of our countrymen enjoy this Christmas. Secondly, I urge the suffering Nigerians to accept the invitation given by the Lord Himself whom we celebrate His birth at Christmas “come unto me all ye that labour and are heavy laden and I will give you rest”. This, in my view, is the surest way to forget about problems and pains of the economy. Because in Him “there is liberty and fullness of joy.” Merry Christmas Nigerians! Send reactions to: comment@businessdayonline.com

Boosting economic opportunities through Enyimba Economic City Project easy access from all south-east and south-south states”. The governor added that “Aba alone has over 250,000 artisans engaged in various arts and trades; the Enyimba City zone covers three local governments of the state. The project would not only be of immense benefit to Abia state but to the entire region and country.” The economic benefits of the project cannot be overemphasised. Aba, the economic hub of Abia State is blessed with over 250,000 artisans engaged in various arts and trades, and that the Enyimba City zone covers three local governments of the state. The project is a Private Public Partnership (PPP) initiative of Abia State Government and Crown Realties PLC, Under a Special Purpose Vehicle (SPV) of Enyimba Industrial Development Company Limited, under which it is proposed to develop a new Industrial Township in Aba, spanning from Akwa Ibom State boundary of Abia State to Imo State boundary, on a West/ East of Enugu/PortHacourt highway and covering 9600 hectares to include industrial park, logistics, entertainment village, medical, ICT hubs, among others. It is also designated as a Special Economic Zone by the Federal

Government and will have Free Trade Zone status with the intention of connecting South-East states and four out of the six states in the south south. While the vision of the project is to develop a connected global business hub in southeast Nigeria; the mission is to create economic hub central to the nine southeast and south south states linked with high grade access roads, rails, airport and seaports that will transform the region into a manufacturing and industrial powerhouse, with ancillary drivers of commerce, logistics, entertainment, education, health and lifestyle living. In the Advisory Board of Enyimba Economic City Development are seasoned administrators and technocrats such Pascal Dozie Chairman, C. Darl Uzu Vice Chairman/CEO, Barth Nnaji, Abraham Nwankwo, Emmanuel Adaelu. Others are Adolphus Wabara, Anya O. Anya, Sam Nwaogu, Paul Ananaba, SAN, Empire Kanu, Tom Aguiyi Ironsi, Ugochukwu Okoroafor, Austin Ufomba, and Chibuzor Ekwekwuo. It is important to note here that one of the designs of the project is to close economic gap between PortHarcurt and Aba which constitute two energetic centres in the South East and South South regions. L i k e G o v. I k o e a z u r i g h t l y posited:”If we close the gap, what

it means is that there is a fusion in terms of creating a new hub that can compare with what you see in Dubai today. “I have moved on from made in Aba to make in Aba; Aba people and Abia people and Nigerians are capable of producing things. “So, we are now saying come and make, come and produce; we have created an environment that we can say is good enough.” Some of the infrastructure to be provided in the city to include a gas basin because of the abundant gas deposits in the state and a narrow gauge rail line, which will link Abonima wharf and Onne wharf in Port-Harcourt to Aba. This project is apt now that nations of the world are diversifying to the non-oil sector. For instance, Saudi Arabia’s 10th Development Plan, for the period 2015-19, emphasises the need to diversify the country’s economy and reduce its reliance on oil, which accounts for 90% of fiscal revenues and 80% of export revenues, and also highlights the need to provide livelihoods for future generations. Industrial enterprises that can add value to the Saudi economy in this way will find businesses in the Kingdom keen to engage in joint ventures, and will also be able to tap government

funds and land to facilitate project development. Also, the Saudi Arabian Company for Industrial Investment was formed in 2014 with SR2bn ($533m) in capital and will invest SR7.5bn ($2bn) in the next five years in a programme targeting conversion industries that rely on non-oil manufactured products, including petrochemicals, plastics, fertilisers and steel. The company is a joint venture between Saudi Aramco, Saudi Basic Industries Corporation (SABIC) and the Public Investment Fund. This gives credence to the statement credited to President Buhari during the signing if the Definitive Agreements that” such initiatives were exactly what his administration was desperately looking for to create employment for the populace and boost the national economy”. On this note, Abians should join the President in commending Gov Ikpeazu for initiating the project. We should also rely on the assurances of the President thus:”everyone should be more confident of the success of the project since the Minister of Trade and Investments, Okechukwu Enelamah, under whose portfolio it falls, hails from Abia State”.

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May Nigeria not travel the path of perdition CHIEDU UCHE OKOYE Okoye, a poet, wrote in from Uruowulu-Obosi, Anambra State08062220654

efore the white people came to Nigeria, the peoples of Nigeria had their different types of pre-colonial governments, which guaranteed peaceful co-existence among them. For example, in the North, we had the Emirate system; and in the West, the Obaship. The Igbo people of the South East of Nigeria, who are republican in nature, had acephalous political organizations. But, till now, the towns in Igboland are ruled by Obis, Ezes, and Igwes. However, it is an incontestable fact that western imperialism truncated the evolutionary growth of our pre-colonial governments. But, now, our traditional modes of leadership still exist alongside representative government with democratic governance overriding the powers of the ruling monarchs and traditional institutions. It’s the British colonizers who brought western democracy to us

Charles Onunaiju Onunaiju is Director, Centre for China Studies, Abuja.

n his speech to mark the 40th anniversary of China’s reforms and opening up, recently President Xi Jinping said that the process is a great revolution that has propelled a quantum leap forward in the cause of socialism with Chinese characteristics and a great reawakening of the Communist Party of China, nurturing its creativity in both theory and practice. He has earlier in a keynote speech to the first China International Import Expo held in Shanghai in November, described “the last four decades of reform and opening up in China as an “epic journey for the Chinese people,” and added that “China has pursued development with its door open and succeeded in transforming a closed and semiclosed economy into a fully open economy.” It has been forty years since China embarked on “crossing the river by feeling the stones,” navigating through the untroded path and uncharted waters that defied any known economic orthodoxy, to drive its iconic modernization effort through reforms and opening up and consequently exploding on the world as the most enigmatic human experiment with the exponential returns of pulling more than 700

with its major characteristic feature of periodic election to guarantee seamless transfer of political power from one person or political party to another. Election, as we all know, is a necessary and periodic ritual, which presages and facilitates the change of leadership in a country so as to confer political legitimacy on incoming political leaders. However, dating back to the post-colonial Nigeria, starting from 1960, electoral crises have become major features of our national life. Since Nigerian politicians perceive their occupation of exalted political offices as opportunities to amass wealth, they will employ underhand and sinister means to subvert the electoral processes in order to win elections. Consequently, electoral malpractice has become part of our democratic ethos, now. Electoral malpractices had caused political chaos and troubles in Nigeria, which brought our country to the precipice on many occasions. For examples, in the 1960s, the Chief Awolowo and Akintola political feud cum personality clash snowballed into a major political crisis, which was one of the reasons for the military incursion into our politics in the first republic. The events of that period, including the massacre of the Igbo people in the North led to the Nigeria-Biafra civil war. Millions of human lives were lost; and our infrastructures destroyed. Luckily, Nigeria emerged from that gratuitous civil war not dismembered. So, we had the military interregnum between 1967 and 1979. But the military struck again to bring to an end the second republic. Their reason for staging the coup

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For the government to hurl people into detention for innocuous Face book posts are proofs that it is morphing to a fascist government

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was to save Nigeria from implosion as the 1983 elections were marked and marred by electoral rigging and infractions. And in the aftermath of the election, tension was mounting in the country. Perhaps, the soldiers’ reason for truncating the second republic was justified. Then, Nigeria experienced successive military governments. But they wound back the development of our country by decades. While Gen. Babangida institutionalized and entrenched corruption in our body politic, as well as annulled the 1993 Presidential election, which was adjudged the freest and fairest in our political annals, Sani Abacha, a maximum ruler, stole Nigeria blind, and killed many members of NADECO, an opposition group then. But, thankfully, democracy birthed in Nigeria again in 1999. And, since then, Nigeria has been practising democratic governance for nineteen unbroken years with one political party handing over

power to another. And against all expectations, our country has not descended into a fratricidal civil war. Rather, our democracy is deepening and taking firm roots. Now, APC, which is believed to be the political party of progressive-minded people, is the ruling political in Nigeria. And President Buhari ,who is at the helm came to power on the coattail of his ascetic nature, perceived probity, aversion to corruption, and burning zeal for political leadership. But he has squandered our collective goodwill owing to his clannishness, tardiness, cluelessness, religious bigotry, ethnic jingoism, and maladministration. Today, the gale of defection is sweeping across the political landscape of Nigeria. And APC is not spared by the defection scourge. The ruling APC has suffered mass defection with some top members of the party pitching tents with the major opposition party in Nigeria, the PDP. The depletion of its ranks is a portent of doom for it. In addition to this, countless Nigerians are agreed on the verifiable fact that President Buhari is a sectional leader, who sets store by religion and ethnicity. And that will not bode well for his re-election bid. His religious bigotry, ethnic jingoism, nepotistic proclivities, and clannish characteristic are evidenced in his appointments of northern Muslims into the security apparatchiks in Nigeria. Not surprisingly, the fight against the Boko Haram insurgency in the northeast has been suffering upsets. And his fight against corruption is a witch-hunt of members of the opposition political party. So, has

the ruling APC gone for broke in order to retain political power at the centre? But if it decides to use strong arm tactics to emasculate, cow, and brow-beat members of the opposition political party, it will not augur well for the survival of our democracy. Recently, we read in the national newspapers about the freezing of Mr. Peter Obi’s bank accounts. It’s said that his wife’s and relatives’ bank accounts were frozen, too. But EFCC has denied blocking those accounts. It is advisable for President Buhari and top members of the APC to tread carefully and cautiously, and desist from engaging in deeds that can imperil our democracy. For the government to hurl people into detention for innocuous Face book posts are proofs that it is morphing to a fascist government. I would like President Buhari to follow the example of Goodluck Jonathan, who accepted defeat before all the 2015 Presidential election results were announced. He deemed the survival of our democracy and the indissolubility of Nigeria more important than his personal political ambitions. Again, it behooves all the political contestants for elective posts in Nigeria to eschew the politics of bitterness and rancor. They should tell us about their political manifestoes and ideologies rather than engage in splitting hairs over inanities and defamation of characters of one another. Let their politics be issuebased and not political mudslinging. I pray that Nigeria will not travel the path of perdition.

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China’s reform at 40 and lesson in many pathways to modernization million people out of poverty in the shortest period in all human history. China’s epic revolutionary struggle leading to national liberation and socialist construction was momentous in the annals of human history, but nothing actually prepared the world, when the historic 3rd plenum of the 11th central committee of the Communist Party of China (CPC), in December 1978, made the decision to take economic modernization as the core of its work and proclaimed reforms and opening up as the major trajectory for its future governance of China. At the end of the Cold War in the 1990s and the demise of former Soviet Union, triumphant treatise about “the end of history” and “remarkable consensus that liberal democracy constitute the end point of mankind’s ideological evolution,” led to the infamous Washington Consensus then, the well known diet of economic reform program widely sold out especially to developing countries as the only path to modernization and development. China famously differed, choosing her own path to modernization and taking her national condition, social realities and the theoretical compass of Marxism-Leninism as a guide. China’s then preeminent leader, Deng Xiaoping, who was convinced that “economic reform is the only way to develop the pro-

ductive forces,” has however categorically made clear that “in the course of reform, it is very important for us to maintain our socialist orientation.” In the huge task of “carrying out our modernization,” Deng exhorted that “the program must proceed from Chinese realities, adding that “both in revolution and in construction, we should also learn from foreign countries and draw on their experiences but warned that “mechanical copying and application of foreign experience and models will get us nowhere.” He, therefore, charged that “we must integrate the universal truth of Marxism with the concrete realities of China, blaze the path of our own and build a socialism with Chinese characteristics,” and summarized that “this is the basic conclusion we have reached after reviewing our long historical experience.” Even though, opening up and reform, according to President Xi Jinping is a strategic decision made by China based on its need for development as well as a concrete action taken by China to move economic globalization forward in ways that benefits people across the world,” the lessons and experiences in staying in the arduous course of reform and opening up constitute critical and strategic resource materials from which vital insights can be gleamed in driving the course of sustainable and inclusive development in Africa. Forty years of ceaseless exertions, relentless drive and uncommon

focus, China’s governing party, the CPC in cooperation and coordination with other responsible social forces, leading the Chinese people have opened a fresh vista and bright prospect for human possibilities, putting to an end very firmly that history has drawn to a close to the power creative thinking and imaginative resources of the human community. Forty years into what some people called the China’s second revolution, it is not only the country that has changed but even mankind faces a bright and new prospect of opportunities that can address the core concerns of humanity ranging from the existential material needs to peace and security. The Chinese experience teaches that there is no ready-made model but in ceaseless and confident experimentation of “crossing the river by feeling the stones” with only the cautious and natural impulse of careful examinations of any particular step taken to either reduce or increase the pace but never standing still or turning back. If making a “revolution is not a dinner party or writing an essay or painting a picture or doing embroidery,” to stay steady and firmly on the course of reforms, described by president Xi Jinping as “indepth Revolution,” is even far less of a pleasure ride but a determined struggle that engages man’s fertile faculty in “seeking truth from facts”. Forty years of relentless drive

of China’s modernization through reforms and opening up have proved that difficult but independent choices made, from understanding one’s real national condition, engaging it realistically and constant evaluations of contradictions, with its inbuilt mechanisms for fact checks can guarantee the steady flow of capabilities and capacities to drive sustainable and inclusive development. The long trajectories of shared fate between China and Africa to raise answers about the questions of the course of action to address the existential needs of their respective brotherly peoples for better life has taken a life of its own, suggesting critical fundamentals that must be interrogated and that fact as it objectively exist today is the experience of China’s forty years of reforms and opening up. With forty years of intense modernization efforts, consisting largely of persistent reforms and opening up, China is evidently restless, and far from resting on her oars. Having plucked the low hanging fruits of reform, the country is even more poised for deeper reforms and wider opening up.

Note: the rest of this article continues in the online edition of Business Day @https://businessdayonline.com/ Send reactions to: comment@businessdayonline.com

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

Bashir Ibrahim Hassan

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

Tuesday 25 December 2018

Growing intolerance for divergent opinions frightening

he unseemly drama of the suspension by the Nigerian Army of the operations of UNICEF in Borno State and their reinstatement within 48 hours speaks to the uncoordinated and reflexive nature of the military’s response to international agencies in the operational area of the Boko Haram fight. The Armed Forces are striking out, in concern and panic, against the possible collaboration of the agencies with enemy forces. In doing so, they have acted in manners that suggest inordinate haste and lack of diligence. Current concerns focus on the engagement of the Nigerian Army with UNICEF and their running battle with the international NGO Amnesty International over its statements and critique of the human rights record of the Nigerian Army. Then there is overt interference of the Federal Government in dictating to publishers who and what to allow space in their media platforms. Moreover, there are the matters of the squelching of the non-violent IPOB, andthe Muslim sect in Kaduna. Nigeria is increasingly adorning itself in the toga of an intolerant government and one prone to dictatorship. The Nigerian Army declared a three-month ban on the United Nations Children’s Emergency Fund on December 14 alleging that its staff were spies for

enemies of the nation. The Army statement asserted that “UNICEF stafftrain and deploy spies who support the insurgents and their sympathisers.” It added that such actions amounted to “unwholesome practices that could further jeopardise the fight against terrorism and insurgency.” By the very next working day, the Army lifted the ban following a meeting with representatives of UNICEF. The Army spoke through Colonel Onyema Nwachukwu, spokesman of the Operation Lafiya Dole: “Sequel to intervention by well-meaning and concerned Nigerians over the recent suspension of UNICEF operations in the North East theatre of operations, the Theatre Command Operation LAFIYA DOLE convened and held an emergency meeting with representatives of UNICEF this evening. “During the meeting, the Theatre Command admonished the representatives of the organisation to desist from activities inimical to Nigeria’s national security and capable of undermining the ongoing fight against terrorism and insurgency. The Command also urged UNICEF representatives to ensure they share information with relevant authorities whenever induction or training of new staff is being conducted in the theatre. “Consequently, after extensive deliberations on the need to seek modalities to work harmoniously with the security agencies in the theatre of operation, the Theatre

Command has henceforth lifted the three months suspension earlier imposed on UNICEF activities in North Eastern Nigeria.” The lifting of the ban left many wondering if the Army did not interact with UNICEF and carry out proper diligence before its slammer. Were they not supposed to be even sensitive to the international relations significance and implications of any action against a UN agency? How strategic was the move in the overall context of the war and managing the challenges of the North East? In the North East, the Army continued its long-running battle with Amnesty International. The Army wants to force the closure of the Nigerian operations of the human rights watchdog. It claimed Amnesty International seeks to destabilise Nigeria simply because its latest report indicts the Army and the Government for failing to act decisively to stop the herder-farmer clashes. The AI report, Harvest of Death: Three Years of Bloody Clashes Between Farmers and Herders, puts the body count at 3641 deaths. It monitored clashes from 2016 to 2018 and found that 57 per cent of the deaths occurred in 2018. Popular columnist and blogger, Prof Farooq Kperogi unveiled the secret pressure the Federal Government applies to publishers and editors of public information platforms to prevent any dissenting views of its officials and their performance. Kperogi is based in the United States of America

and writes an influential column in Daily Trust. Analysts and the trade regard Daily Trust as the most authoritative platform in Northern Nigeria and one of Nigeria’s best. Kperogi was one of the fervent supporters of President Muhammadu Buhari in the run-up to the 2015 elections. He became a highly vocal critic because of disappointment with the performance of the government. He reported that the Presidency pressured the management of the newspaper to stop his “Notes from Atlanta” column for consistent criticism of the government. He has run the column for 13 and claims that it was even more critical of former Presidents Olusegun Obasanjo and Goodluck Jonathan. None of those took extra steps to stop his expression of his views. Kperogi has rightly blown the whistle on the creeping intolerance of dissent and arm-twisting of the media. It is a bad omen that would not do the Government any good. Driving dissent underground has never favoured any government. Nigerian authorities must eschew intolerance. We are in a democracy. Divergent views are a pillar of democracy. We need collaboration in the matter of the NorthEast. On the performance of government, citizens and journalists must be free to express their opinions within the bounds of the canons of practice. No to intolerance and actions that promote it.

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Tuesday 25 December 2018

Afromedia re-strategises, restructures management Stories by Daniel Obi Media Business Editor

he Board of Afromedia Plc, premier Out-ofHome Media company in Nigeria has approved the retirement of Otunba Akin Ire Olopade, as its Group Managing Director/CEO effective from 30th November 2018. The board has also appointed Femi Olaiya to replace him and continue to steer the ship of the company to greater heights, a statement from the company has said. Olopade retires after 26 years of meritorious service to the company. The statement said Olapade joined Afromedia Plc in 1992 as a Product Development Manager and was elevated to the position of General Manager one year after assumption of duties based on his outstanding performance in product development. He was appointed Executive Director in 1995 and rose to the position of Group Managing Director/ CEO of Afromedia Plc in October 1999. The new CEO, Olaiya, joined the services of Afromedia in 2014 as

Associate Director in charge of the Sales and Marketing Division. “He did well with his mandate to revamp the Sales and Marketing operations of the business. He was appointed Executive Director and Chief Operating Officer on 1st October 2017. Olaiya, a Member of the Institute of Directors, is an alumnus of Obafemi Awolowo University and the Lagos Business School. He brings to the table over twenty years work experience gathered from various sectors of the economy rang-

ing from publishing, Oil and Gas, Information Technology, Telecoms and Manufacturing industries. He is a versatile professional with a thorough grasp of Business-to-Business and Business-to-Consumer sales and marketing strategies and tactics. He has worked in large corporations such as Schlumberger and NNPC, Medium Companies, and Small companies. Olaiya is a serial entrepreneur who has been involved with building four startup companies from ground zero up.

Winning awards is icing on cake for good creative works – Babaeko

outhful but revolutionary Lagos agency, X3M Ideas once again displayed great consistency as the agency maintained its enviable position as one of the most valuable creative and consistent agencies in the country, emerging one of the best three at the

prestigious 2018 Lagos Advertising and Idea Festival. The agency confirmed its staying power, tenacity and uncanny creative prowess as its works became cynosure of all eyes, winning laurels for its clients and brands cutting across multinationals and indigenous brands as the Association Advertising Agencies of Nigeria held the 13th edition of its LAIF Awards at the prestigious Landmark Event Centre, Victoria Island, Lagos. The agency carted home 5 Gold; 7 Silver and 8 Bronze, making a total of 20 medals to place an enviable 3rd in an industry that boasts of almost a hundred agencies. Speaking on the agency’s feat, the agency’s CEO, Steve Babaeko, explained that one of the things that delights him is the consistency of his team and “fresh breath of life we have brought to bear on the Nigerian advertising industry and our clients’

businesses”. He said winning awards is Icing on cake for good creative works. “I am really proud of the team, since we started participating in LAIF in 2013, we’ve consistently been on the top 3 or 4 bracket. This year, not an exception, we came 3rd in the awards that are becoming more competitive LAIF by the day. We’re really proud, and feel so proud of the clients we work with, for giving us opportunities to push for something new”, he said. Applauding the agency’s client, Babaeko says the client as the agency’s editor and gatekeeper, should be duly acknowledged for not killing ideas that may first look extreme and allowing them see the light of the day. “The glory belongs to agency and the clients because the clients need to believe in these ideas before they see the light of the day. We’re really thankful to them for really pushing us to come out with the best”

StarTimes says its video streaming service saves data cost

n November, StarTimes launched a new brand, StarTimes ON, for its online video streaming service with declaring that its App can save 20- 40% data cost for users when they are watching videos with the application. “The data saving is realized with adopting our self-developed and world’s leading video encoding technology,” Ariel Lin, Operation Director

of StarTimes ON said. According to Lin, the encoding technology will increase the data compression ratio greatly, but meanwhile won’t damage the video quality. Besides the advanced encoding technology, StarTimes satellite transmitting system will also help reduce internet bandwidth cost of StarTimes ON CDNs.

StarTimes ON is also cooperating with over 20 African telecom operators and has co-established CDNs in different African countries. The integrated CDNs with telecom networks lower huge internet bandwidth fees for StarTimes ON and telecom companies, being able to provide high quality video data bundle products for users at affordable prices.

Spectranet renews commitment to subscribers on quality service

gainst the backdrop of the information that some networks are indebted within the industry which might disrupt service offering soon, Spectranet 4G LTE has come clear to state that the network is not affected by the issues as it is an organization that is consistently meeting its obligations with stakeholders. Ajay Awasthi, Chief Executive Officer, Spectranet 4G LTE says the Spectranet 4G LTE network, since inception in 2013, has been in the forefront of ensuring that its service quotient is high and to sustain such high level service quotient, the Spectranet brand has not only invested in technology but also in human capital to ensure that customers enjoy high speed internet service.

He added that, Spectranet 4G LTE tapped into the yuletide period to initiate a special promotion tagged the Big Five Promo to celebrate with new and existing subscribers hoping that they will take advantage of the benefits of the promotion to increase data as well as onboard close friends and associates to the network that provides best-in-class service to subscribers.

MTN elevates Funso Aina to Senior Manager, External Relations

unso Aina, Public Relations Manager, MTN Nigeria as has been appointed as Senior Manager, External Relations at the telecommunications giant. After over 22 years of work experience in journalism, cultural diplomacy and telecommunications, Funso Aina, is a result-oriented professional with varied competencies and handson experience in public relations, corporate communications, media relations, public affairs, perception/stakeholder/reputation/ issues and crisis management. Based on his vast experience and academic background, Funso takes PR beyond nomenclature – to a demonstrable understanding of the strategic importance of targeted communication and its use in the achievement of business results and

organisational efficiency. He holds a Bachelor of Arts degree in History (University of Ilorin, 1992) and a Masters degree in International Relations (Obafemi Awolowo University, Ile-Ife, 1998). He is an Associate of the Nigerian Institute of Public Relations (NIPR). Funso joined MTN Nigeria in January 2009, and until his latest appointment, he was the company’s Public Relations Manager where he had oversight responsibility for MTN’s reputation/perception management; stakeholder management; media relations and PR leveraging for all activities; corporate sponsorships and events management. Prior to joining MTN, Funso was the Communications Manager of British Council, UK’s international organisation for educational opportunities and cultural relations.

Maltina, Noble Igwe hit 1000 smile mark

t’s been a remarkable few weeks for Maltina and Noble Igwe. Back in November, Maltina announced it will be partnering with the fashion and music enthusiast to capture 1000 smiles from across the country. Revered for sharing happiness, this was a noble act from Maltina . Now after 30 days in which various cities across Nigeria were visited, the 1000 mark has been reached and in the process, sharing happiness and capturing hundreds of compelling stories.

From the Hawker on the street, to the Investment banker, to the market woman, Maltina managed to capture these people at key moments, leading to some of the happiest depiction of the Nigerian people you may ever come across. The accompanying stories for these people also added some needed context to the campaign, with Maltina chronicling their journey to a 1000 smiles with social media posts which profiled individuals that were photographed.

Betway unveils multi Bet promo aimed at rewarding consumers

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

Bets. For every Multi Bet placed this month, Betway will give a payout increase on winnings depending on the number of bets in a betslip, the firm said. To participate in this promotion, customers must place Multi Bets on any sport. The value of the increased payout is dependent on how many fixtures you have in a Multi Bet. The payout increase will be credited within 24 hours following the settlement of the qualifying Multi Bet.

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Tuesday 25 December 2018

BRANDING

Tackling bacteria to prevent diseases, a brand’s approach Concerned with the ravaging effects of diseases such a cholera, typhoid and tuberculosis caused by bacteria which have killed many people in Africa, PZ Cussons, in 2014, introduced an antibacterial variant in its grease-cutting dishwashing Morning Fresh product. This report assesses the brand’s impact in controlling these diseases. Daniel Obi writes.

acteria is said to be a type of micro-organism that can cause different diseases such as cholera, typhoid, syphilis, tetanus, tuberculosis, amongst others. Experts say the most common symptoms from a bacterial infection are diarrhoea, fever, and sometimes abdominal cramping. Most of these diseases have killed many people in countries where levels of unhygienic living are high. According to experts, bacteria has been detected on plants, animals, fruits, and vegetables and “when carriers of these bacteria contaminate the surroundings through their waste products, it will definitely affect the water and food within the environment and when ingested, the bacteria will now penetrate to the blood stream through the small intestine thereby making the new carrier to display symptoms of headaches, pain, loss of appetite, lethargy, and diarrhoea (in some cases)”. These deadly bacterial diseases can survive for several weeks in water or even in dried liquid waste, says Finelib.com, a health issue website. For instance, typhoid, associated with stomach pain, acute headache, or loss of appetite and which has killed many people in Africa can easily be contracted through unclean environment, infected food, water or infested bowls. There may not be accurate data on cases and deaths arising from each of these diseases but it is said that in the first eight months of 2018, about 430 Nigerians have lost their lives to cholera alone from about 24,000 cases recorded. Also, typhoid fever continues to pose a serious health challenge in Nigeria with most cases of patients diagnosed of the disease. In Nigeria, another common disease after malaria

L-R: Charles Nnochiri, head of marketing, PZ Cussons Consumer; Ahusimere Ejiroghene, brand manager, Morning Fresh; Philips Edafiogho, sales director, PZ Cussons; Joyce Coker, human resource and Admin Director, PZ Cussons; and Alex Goma, managing director, PZ Cussons Consumer, at the official Morning Fresh Relaunch in Lagos.

is typhoid and it is estimated that typhoid fever and malaria constitute about 50 per cent of all hospitalisation in Nigeria. Thousands of Nigerians have also lost their lives to the disease which is contracted through dirty environment, eating with unclean bowls or drinking dirty water. Reports quoting World Health Organization, WHO, also said that no less than 18 Nigerians die of tuberculosis, TB, every hour totalling 432 deaths daily. The world health body ranks Nigeria as having the 2nd highest incidence rate in Africa and 7th among the 30 high TB burden countries in the world. “The disease in Nigeria is further fuelled by the large number of undetected TB cases (missing cases), which serve as pool of reservoir for the continuous transmission of the disease. Each undetected TB case has potential of infecting 10-15 persons in a year”, a report said. Health experts have listed several ways these diseases could be prevented instead of getting contracted with the microorganisms and seeking for ways of

treatment with implications on health and cost. Apart from proper vaccination to stimulate the immune system, being mindful of what somebody eats and drinks, especially water, washing of hands with sanitizers or simply soap and water, and keeping the kitchen and bowls clean always are other effective methods. Private sector intervention In addition to other efforts to checkmate bacteria and the resultant diseases, PZ Cussons, a multinational company that has been in Nigeria for over 70 years had in 2014 introduced anti-bacteria variant of its Morning Fresh dishwashing product. The company must have been touched by the ravaging effects of the diseases in Nigeria and Africa, which have claimed many lives as the officials undertook thorough research which resulted in the introduction of an anti-bacterial variant of the product, not only for clean-washing, but also controlling bacteria. The objective of the innovation is to make the kitchen cleaner and healthier for the Nigerian consumer.

The innovation was particularly welcomed in the market because of its role in checkmating bacteria which has caused diseases such as cholera, typhoid and tuberculosis. “The kitchen is the heart of most homes and a lot of activities happen within this confined space. Bacteria survive in moist environments and the kitchen is usually the breeding ground for germs, especially around the wash area, the sink, on kitchen surfaces, sponges and wash bowls.” The brand owners explained that the new addition of anti-bacterial variant was as a result of the company’s commitment to responding to customers’ needs with innovative and exciting products. “Superior performance is our unique proposition. Superior grease-cutting is what we do best. Every drop of Morning Fresh Antibacterial is stronger than any other competitor. You feel the cleaning power, the thickness and you can smell the fragrance. It is a superior delivery,” the multinational company said. Custodians of the brand further explained that as

the front-runner in the category, “the brand is evolving with its consumers by being innovative, setting the pace in the market and providing value for money spent. The anti-bacterial variant is in addition to the grease-cutting variants of the product. Over the years, Morning Fresh has led innovation and has set trends in numerous ways with several milestones to its credit. In 2012, the brand re-launched its packaging in a trendy, easy-to-grip bottle with the introduction of the new Zesty Lemon variant. “In 2013, the brand pioneered a massive penetration drive campaign with dish wash demonstrations and free product placements across the country, reaching over 100,000 households and in the process, brought smiles to the faces of Nigerian women across the key cities. In February 2014, the brand launched a new adulteration-proof cap to curb adulteration and proudly launched its new look taking kitchen cleanliness to the next level with the introduction of a new antibacterial variant,” In a bid to increase consumer traction, Morning Fresh brand recently organized trade launch event recently in Port Harcourt where it introduced the product in new, transparent bottle. Accompanying the brand team was veteran actress, Mercy Johnson; Ahusimere Ejiroghene, Brand Manager, Morning Fresh ; Sunday Okereke, Regional Sales Manager, East, PZ Cussons Consumer ; and Sunday Ekpo, Area Sales Manager, Morning Fresh, PZ Cussons Consumer; who introduced the stakeholders to the new Morning Fresh which was unveiled last month. Sp e a k i ng ab ou t t h e in-market activations, Ahusimere expressed delight at the turnout at the event. “We are delighted to re-

introduce Morning Fresh in these markets. We have totally revamped the Morning Fresh brand, emphasizing on its premium look and feel, which is in line with our commitment to constantly innovate and evolve to exceed the expectations of the stakeholders in the country. The elegant transparent bottle delivers both functional and aesthetic value to our stakeholders, making the product stand out on shelves – we are confident that these stakeholders will take completely to our products and aid us in achieving our sales targets,” she said. She further said that over the years the Morning Fresh packaging has always stood out and stood tall in a trendy, attractive and easy to grab bottle, with a cap for the easy of dispensing. What has changed? As an innovative brand we are always looking for ways to improve and continuously provide top quality products that not only deliver on performance but also possess aesthetic qualities as well. According to brand representatives, the Morning Fresh brand is a household name, and has continued to evolve over the years. The relaunch is in continuation of that tradition and also in line with the brand’s strategy to combat counterfeiting and to also sustain its drive to maintain its position as the leading dishwashing brand in Nigeria. Morning Fresh has been in Nigeria for 25 years and has established itself as the foremost dishwashing liquid in the market, remaining relevant with consistent delivery on superior grease-cutting performance designed to tackle with ease, all food stains and providing squeaky clean results. According to analysts, the market is appreciative of the product for its stainremoval characteristic, but more importantly, the addition of anti-bacterial variant for the control of diseases among consumers.

Tuesday 25 December 2018

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Nigeria ends 2018 on a cautious note; 2019 elections in focus

Pg. 17

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

MARKETS

Santa visits Nigerian Market once again with 3.88 % gain on Christmas eve IFEANYI JOHN

he historical trend has once a g a i n p rov e n solid as the Nigerian equities market gained considerably on Christmas Eve by 3.88 percent edging the final month to a positive territory making this the 18th out of 22 years with a positive return in December. A shopping spree before the market closes for the holidays was enough to turn around what was a flattish December for the local bourse. “Portfolio managers are looking into the idea of re-balancing their portfolios and positioning for the upcoming earnings season. The sell-off since the beginning of the year has also left some of the very good companies at relatively cheap prices which is another catalyst to incite the late buying activity in the Nigerian equities market” said Tochukwu Okafor, Lecturer in Banking and Finance department, Covenant University. In the last 21 Decembers, the All Share Index has only

posted negative monthly returns in 2001, 2005, 2008 and 2009 with an average 5-year return of 2.9 percent. With the Christmas Eve rally, history seems to be on the right track once again. The recent dip in oil increased the possibility of a 5-year negative December, but that didn’t seem to bother investors who took over the market yesterday. The value of the Nigerian equities market grew by 3.88 percent from N11.24 trillion to N11.68 turning the month to date performance positive from -0.04 percent to 3.85 percent, marking its single biggest day jump in months. 36 stocks rose yesterday with Dangote Sugar (10.00%), Diamond Bank (10.00%), Nestle (10.00%), Stanbic IBTC Holdings (10.00%), and Seplat (9.99%) leading the pack. Dangote Cement was the highest in terms on nominal growth gaining over N120 billion which represented 27 percent of the total nominal gains of N440 billion in market capitalization. Wale Olusi, equity research analyst with United Capital Research in a report

L-R: Muhammad Ali AlKamal, deputy CEO, Dubai Exports; Ganiyu Rufai, permanent secretary, ministry of commerce, industry, trade and investment, Lagos State; Olukayode Pitan, MD/CEO, Bank of Industry; Fahad Al Taffaq, United Arab Emirates Ambassador to Nigeria, and Ulvmoen Knut, deputy president, Lagos Chamber of Commerce and Industry, at the LCCI-Dubai B2B Session in Lagos

released earlier this month forecasted a Santa rally may likely occur in December. “The probability that there would be a December rally is whopping 81.0 percent. Added to this, the market clearly looks attractively valued in the light of the selloff we have seen this year. This clearly offers an interesting entry point ahead of

AWARDS

n recognition of its drive for excellence in the Nigerian Pharmaceutical industry, Fidson Healthcare Plc was recently rewarded for its outstanding performance in Human Resource Management with the award for ‘’Best Employee Engagement Programme’’. The award was given at this year’s edition of the HR Future Workplace Awards during the HR Summit and Expo for West Africa, 2018 which took place at the Landmark Event Centre, Victoria Island Lagos. This award came only less than a week after the company bagged the PEARL award for ‘Sectoral Leadership in Healthcare-Pharmaceutical’ based on its performance in the Nigerian capital market. The Future Workplace Awards (2018), themed ‘’Celebrating the Human

That’s despite the fact that the companies’ return on equity climbed to 15 percent as the end of September 2018. Investors pay much higher to hold stocks in peer markets. In South Africa, investors pay the equivalent of 15x earnings, while listed companies in Egypt are valued at an average of 12.5 times earnings.

Investors are forecasting an improved market performance for the Nigerian equity market in 2019 after a lackluster performance this year. Even though the market has been far from generous to investors this year, at least investors can enjoy Christmas knowing they got a Santa bonus rally on Christmas eve.

FINTECH

Fidson wins HR future Workplace Award IHEANYI NWACHUKWU

the upcoming presidential elections,” T h e Ni g e r i a n St o c k Exchange which will be closed for the Christmas holidays is still down by -16.4 percent from the beginning of the year. Investors currently pay as low as N9.5 for each naira of profit made by companies listed on the NSE.

Side of Business’’, sought to recognise outstanding achievements of individuals, departments, teams and organizations that have contributed to the growth and development of the West African HR Industry. The events showcased the best HR talents in West Africa and also recognised HR professionals in government and private sector for their contributions towards creating a high performing workforce for the future. Fidson was shortlisted for the ‘’Best Employee Engagement Programme’’ award category along-side top organizations and eventually emerged winner, based on the quality and impact of the company’s several employee engagement initiatives. Upon receiving the award, Head, Human Resource, Fidson Healthcare Plc, Adejoke Alli expressed gratitude to the organisers of the event for recognising Fidson’s commitment to-

wards building a workplace for the future. ‘’We are excited about this award because it shows that the company’s commitment and the efforts of our HR team in ensuring Fidson is a great place to work, are not in vain. The team worked hard to pull this off and I believe God has rewarded our efforts with success. We are extremely thankful’’. In line with the company’s value proposition, we recognise that the way we do things determines our outcomes. We support each other to greatness. We not only inspire our people to achieve, we celebrate their achievements with them. The event was organised by Informa Africa and Dubai, a well-known multinational events and publishing company that has been organising world-class HR engagements in Nigeria, Dubai and other countries for many years.

Inlaks introduces “thehatch” innovation lab to boost African FinTech startups JUMOKE AKIYODE-LAWANSON

nlaks, a leading system integrator in Sub-Saharan Africa, recently introduced its innovation lab “thehatch” at the just concluded Africa Fintech festival held. The innovation lab is established to identify, nurture and scale innovative technology driven ideas that have the potential to transform the financial service sector in Nigeria and Africa. The launch began with a Start-up fair in collaboration with the Africa Fintech Festival where several growing companies were present to pitch their innovative ideas and services to stakeholders and representatives of the Africa Fintech Festival body. Femi Adeoti, MD/CEO, Africa operations at, Femi Adeoti, highlighted critical benefits of the innovation lab to Fintech start-ups which include fostering relationships between them and several Inlaks clients and partners as well as providing a stepping stone into the marketplace. According to him, the innovation lab will also build and scale Fintech solutions through collaboration with the technological industry, private sector, Government, investors, academia and the digital workforce. “Most of the startup entrepre-

neurs do not have the experience and capability to reach the quality of customers available to Inlaks. It is our goal to hand-hold these startups and take them to whenever we go so they can interface with some of our global clients and partners, and thereby take advantage of the opportunities that are available,” Adeoti said. He further emphasized the evolution of Inlaks termed “Inlaks 2.0”, designed to bring innovative solutions to the industry, and provide young technology entrepreneurs to grow and expand their horizon. Inlaks built thehatch to encourage start-up entrepreneurs to be creative and serve as solution providers to major challenges facing the society. “It’s our pleasure to host Africa Fintech Festival Start-Up Fair in Nigeria at our business incubator, thehatch,” Adeoti concluded. Among the Fintech start-ups that pitched their ideas are Esusu Africa, System Variant, Social Lender, Oyapay, Fint, XendBit, Biya Bot, and Spender. Faith Adesemowo speaking on behalf of Social Lender shared the company’s’ offerings which is to connect the unbanked and under-banked population. She looked forward to enjoying the benefits that thehatch would accrue to Social Lender. One of the judges at the

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

startup pitch, Feyi Agagu, director, business development at Soft Alliance, described some of the ideas presented at the fair as “amazing,” adding that all the start-ups present were focused on digital payment solutions. He emphasized on the importance surrounding how the ideas pitched can be applied outside the shore of Nigeria by focusing on trust to enable the target customers to disburse payment. “Instead of looking for ways of doing traditional business, people are finding informal means of gaining access to capital or how to settle trust issues that will break the traditional bureaucracy in various informal sectors that enable speedy transactions,” Agagu said. Inlaks has progressed in the last 35 years as a key player in the Fintech space, attaining a super-agency status in financial inclusion, and has provided over 6,000 automated teller machines [ATMs] for banking institutions, amongst other financial technology services provided to clients in Nigeria and across Africa. Inlaks partners leading original equipment manufacturers (OEMs) in the technology industry to provide world-class information technology solutions that exceed the needs of its customers. MARKETS

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Tuesday 25 December 2018

COMPANIES & MARKETS FINTECH

eTranzact plans N7bn capital raise ... As analysts say the fund could position the company to apply for PSB license IFEANYI JOHN

n January 17, 2019, stakeholders of eTranzact, Nigerian e-payment solutions provider, will sit to consider a N7 billion capital raise through a possible rights issue. This was stated on the Notice of Extraordinary General Meeting submitted to the NSE yesterday. Adedurotimi Omowunmi Adetoun, PAC SOLICITORS, Company Secretary of eTranzact in the statement submitted to the Lagos bourse disclosed that ”The Directors be and are hereby authorized to raise additional capital of up to Seven Billion Naira (N7, 000,000,000.00), through the issuance of any form of equity instrument(s), whether by way of public offering, private placement, rights issue, offer for subscription or other methods they deemg fit, with or without preferential allotments, either locally or internationally, at such dates and on such terms and conditions as shall be determined by the Directors.” Analysts have premised that the possible use of N7 billion capital is to be in a position to apply for a payment service bank license as the company’s current equity position stands at N2.5 billion. Subsidiaries of mobile network operators, mobile money operators, retail chains (super-

markets) and banking agents are all welcome to apply for the PSB license, provided they can meet certain requirements, including a N5 billion capital base, and a combined N2.5 million application and license fee which are non-refundable. Over 30 companies are currently undergoing registration at the Corporate Affairs Commission (CAC) including Verve, Quickteller, Interswitch, Paga and Paystack. The four-page document further stated the different alternatives for which the additional capital may be raised. “The Directors be and are hereby authorized to consider as an alternative or in addition to any of the methods in paragraph (a) above and if thought fit, to raise the said amount through the issuance of convertible or non-convertible loans, and/or any other instruments either as a standalone issue or by way of a programme, in such tranches, series or proportions, at such coupon or interest rates, within such maturity periods, and on such terms and conditions as may be determined by the Directors, subject to obtaining the approvals of relevant regulatory authorities.” In the event of a rights issue, the share capital was recommended to be increased from 4.2 billion shares to 18.2 billion shares to ensure the total sum of N7 billion is attained. “The Authorized Share Capital of the Company be and

Yemi Osinbajo (r) vice president; Abdurahaman Aliyu Dikko, chairman, Bank of Industry, and Olukayode Pitan , managing director, during the vice president’s visit to the Tradermoni Command centre at Bank of Industry in Abuja recently.

is hereby increased from Two Billion, One Hundred Million Naira (N2,100,000,000.00) divided into Four Billion, Two Hundred Million (4,200,000,000) Ordinary shares of Fifty Kobo (N0.50k) each to Nine Billion, One Hundred Million Naira (N9,100,000,000.00) divided into Eighteen Billion, Two Hun-

dred Million (18,200,000,000) Ordinary shares of Fifty Kobo (N0,50k)- each by the creation of additional Fourteen Billion, (14,000,000,000) Ordinary shares of Fifty Kobo (N0.50k) each, such new shares ranking pari-passu in all respects with the existing ordinary shares in the share capital of the Company.”

Earlier in the year, the management of eTranzact was reshuffled with 5 key executive changes to the company’s board after the Central bank of Nigeria ordered the action along with the audit of the firms’ books. The Managing Director, Valentine Obi, two Executive Directors, the CTO and COO were replaced.

The current market value of eTranzacts’ 4.2billion shares is N16.6 billion, quoted with a price of N3.95 on the Nigerian stock exchange; rising to highs of N5.0 in the rally at the beginning of the year. eTranzact International Plc develops remote real-time settlements of transaction software solutions.

BANKING

MARKETS

Sterling Bank Unveils Africa’s First Skills Champions

Forte Oil rises to near six-month high on Otedola’s divestment plan

frica’s most agile company, Sterling Bank Plc, has unveiled the champions of the recently concluded iCreate Skills Festival and about 10 of them would be representing Nigeria in Russia in 2019. The winners are Otareh Alvin who won in the cooking category, Nejo Tolulope (graphics), Silas Adedoyin (web design), Patrick Obafemi (app development), Barnabas Kudi (robotics), Afolabi Caleb Kayode (art), Ms. Malissa Onojo (tailoring), Yusuf Abdullahi (barbing), Kingsley Ihejirika (hair dressing), Ms. Faiza Usman Adamu (make up), Joshua Olalekan (carpentry), Oladoja Peter (tilling), Kumshuan Talgang (plumbing) and Prince Isitua (bricklaying). The bank had partnered with iCreate Skill Fest 2018 to host the premier youth empowerment festival in Abuja with the aim of transforming skill acquisition across the continent. Speaking at a press conference in Lagos, Chief Executive Officer of Sterling Bank,

Mr. Suleiman Abubakar said following the huge success of the premier edition the bank has decided to sponsor the second edition, adding that they will also extend credit facilities to the winners of the first edition and that such loans will be fast track within two weeks. He said, “Bright Jaja, the CEO and Founder of iCreate Skills Festival gives him hope for the future of this country,” adding that, “there is an ongoing conversation about which generation of Nigerians will salvage this country. I have started to worry if my generation will be able to do it, which is debatable, it may or may not. But it is clear to me that your generation will do it.” “I have no doubt in my mind and I only need to meet one young man (Bright) and the belief he has in the future of the country and the energy he brought to it as well as the sacrifices he has made. I have watched the project over the last couple of months and I have started to see some of the winners come out and every single one of you have convinced me completely that

generation that will salvage Nigeria is here,” Abubakar said. The CEO who also commended the winners, remarked that, “I don’t think we prepared you for this and I don’t think we gave you a ladder to climb up.” He noted that whether it is the work some of the youths had done in entertainment or the work that they are doing now in the technology space or the work they had done in their various areas of specialization, not just earning a living but actually bringing in respect to the various skills they have because at the end of the day, it is lack of respect that make certain people to avoid certain skills and at the end of the day, the country is stuck with it. Abubakar said the future of the country is in jobs and there was need to do all that is necessary to create jobs in various sectors of the economy. Also speaking, Mr. Bright Jaja, the Founder of iCreate Africa, said iCreate is one of the most difficult things he has ever put himself into.

“For me it is like setting up a goal bigger than myself and growing into it, adding that the experience has made him a better person during and after the festival. “It was not really about the event but the process to the event, learning and understanding and meeting amazing people, Jaja said. He said the reason why young people refused to get involved in technical skill is because of societal perspective and stereotypes, adding that skill is taken as a second option when all other expectations did not work out and that should not be the case. Anne Dirkling, Director of Partnership, iCreate Africa, said there was need to focus on the positive side of how to change the narrative, how to send out the right message by celebrating the winners that can actually change the game. Sam Onyemelukwe, Managing Director of Trace West Africa said the media has a great role to play by communicating big ideas and respectable living people have earned with their hands.

orte Oil (FO) Plc., a Nigerian indigenous Oil and Gas company, rose to the highest in almost six months Monday on plans by Femi Otedola, its majority shareholder, to fully divest from the company. The stock rose to N31.25 per s hare at the close of trading in Lagos, its highest since June 24, 2018, according to records from the Nigerian Stock Exchange. Otedola, a Nigerian billionaire, plans to sell his “75% direct and indirect shareholdings in the company’s downstream business,” Forte said in a statement posted on the NSE website. “Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refin-

ing and petrochemicals,” Forte explained. The transaction is expected to be completed in the first quarter of 2019, subject to the satisfaction of various conditions and receipt of applicable regulatory approvals, it added. Forte emerged the fifth-best performer on the Nigerian Stock Exchange on Friday, December 21, after gaining 9.63 percent to close at N28.45 per share, its highest level since July 13, 2018. The rally in the stock price began Tuesday, December 18 after the equity rose by 9.91 percent to close at N23.85 per share. The gain was sustained Wednesday when it gained 9.85 percent to close at N26.20 per share but shed 0.95 percent at the close of trading on Thursday.

Tuesday 25 December 2018

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Nigeria ends 2018 on a cautious note; 2019 elections in focus LUKMAN OTUNUGA, research analyst at FXTM

t has been another monumental year for the Nigerian economy which continued to display resilience against domestic and external headwinds. The healthy combination of easing inflationary pressures, foreign exchange stability and rising commodity prices initially stabilized Nigeria’s macro fundamentals. With domestic conditions clearly improving and foreign investor appetite increasing, expectations were elevated over the Central Bank of Nigeria (CBN) cutting interest rates to stimulate further growth. The outlook for Nigeria looked highly encouraging up until mid Q2 2018 when economic growth slowed for the first time since the end of the recession. The deceleration in growth acted as a critical wakeup call to speed up efforts in diversifying away from oil reliance. However, sentiment was dented further by the repeated delay of the 2018 budget which was finally passed in June 2018. Although Nigeria managed to hold its ground during the first half of 2018, it must be kept in mind that the nation found itself vulnerable to external shocks – namely an appreciating Dollar and oil price volatility. An appreciating Dollar, global trade tensions and prospects of higher US interest rates punished many emerging markets in 2018 with Nigeria falling into the category.

Although the Naira witnessed stability despite an appreciating Dollar, this came at a heavy price to the CBN in the form of falling external reserves. Global trade tensions presented a significant risk to Nigeria, especially when considering how the United States and China remain its biggest trading partners. With a trade war threatening global economic growth and demand for commodities, this presented challenges to Nigeria which remained heavily depended on earnings from oil exports. While there was scope for the CBN to cut interest rates to boost growth, this window of opportunity was missed when inflationary pressures returned. Focusing on macro fundamentals, the picture looks somewhat encouraging with GDP expected to rise 2% in 2018. Signs of Non-Oil sectors contributing to growth will be a welcome development that highlights how Nigeria remains on a quest to break away from oil reliance. With Nigeria’s economic resilience potentially stimulating investor risk appetite, the Nigerian Stock Exchange has the opportunity to rebound in 2019. Although manufacturing production decreased 1.7% in September, a rebound could be in the cards as increased government spending ahead of the presidential elections boosts economic growth.

In regards to CBN policy, falling oil prices are seen weighing on the Naira’s peg against the Dollar on the official exchange. This may complicate the CBN’s effort to defend the Naira on the parallel markets in 2019. While a weaker Dollar could limit capital outflows, falling oil prices are poised to shave government revenues. Focusing on oil prices, the outlook remains tilted to the downside amid oversupply fears and concerns over weaker oil demand. With markets struggling to find signs of the oil market rebalancing following OPEC and Russia’s deal to cut production by 1.2 million barrels per day and global growth fears fuelling concerns over falling demand, oil prices remain fundamentally bearish. Severely depressed oil prices have raised concerns over Nigeria’s ability to move forward with the 2019 budget which pegged oil prices at $60 per barrel. With falling oil prices eroding government revenues, Nigeria’s Excess Crude Account (ECA), which has already depleted by roughly 73% in three weeks, is seen falling further. Although the short-term outlook paints a gloomy picture, as we enter the New Year there is still some light at the end of the tunnel. With diversification in motion, government spending expected to increase and infrastructure developments in the pipeline, the longer-term outlook remains bright.

L-R: John Obaro, managing director, SystemSpecs; Chidinma Lawanson, director, Ecosystem Accelerex Network Ltd; Tunde Ogungbade, managing director, Global Accelerex Ltd; Christabel Onyejekwe, executive director, business development, Nigeria Inter-Bank Settlement System (NIBSS); Stanley Jacob, chairman, Committee of e-Business Industry Heads (CeBIH); Niyi Ajah, acting managing director, NIBSS, and Edwin Otieno, head, agent banking, Kenya Commercial Bank/keynote speaker, during the fourth quarter PoS Innovation Summit, which held in Lagos recently

L-R: Ben Agadagba, board of trustees, IADC Nigeria; Hisham Zebian, IADC regional representative Middle East, Caspian and Africa; Marvelyn Ehika, treasurer IADC Nigeria; Ote Enaibe, chairman; Chuks Enwereji, vice chairman; Olushola Ismail, board of trustees, and Ramoni Adeniji, board of trustees, at the annual general meeting in Lagos.

COMPANY RELEASE

Schneider Electric, Visiola Foundation empower girls in STEM

chneider Electric, under the framework of its Access to Energy (A2E) Programme, recently partnered with the Visiola Foundation to empower girls in science, technology, engineering and maths (STEM), as part of a commitment to develop local content. Schneider Electric’s second edition of a sponsored training took place in Abuja. It was a one-week rigorous boot camp in solar energy, IT and robotics technical skills, directly tackling the limiting cultural stereotypes and barriers that young girls may experience as they try to develop themselves in technical fields. As part of the process, the trainees formed teams, developed ideas around coding and competed against one other. A group comprising five girls stood out for their design and creation of a robotic arm trash collector prototype, which collects and separates wastes. They won a discovery tour to Schneider Electric’s facility in Lagos. On the two-day Lagos tour, the girls received various interactive presentations from Schneider Electric staff. They had an educative session on

Programmable Logic Controllers with demonstration kits for practical applications. They also had a stimulating session on discovering EcoStruxure; visited a Schneider Electric partner’s factory on an industrial excursion; were exposed to various manufacturing processes; and met with female engineers who further inspired them to have more grit in the STEM paths they have chosen. The experience was capped with a lecture on building soft skills for employability. Speaking on behalf of Schneider Electric, Viviane Mike-Eze, the Marketing and Communications Manager stressed that, “Schneider Electric is committed to developing local talents and diversity, particularly in Africa, seeing that the girl child often has limited opportunity to develop herself in STEM.” Again, she added, “At Schneider Electric, we see it as a responsibility to expose them to other women who are thriving in these areas, for them to know how limitless the possibilities are.” Farida, one of the STEM girls said she was pleased by the display of technology. “Knowing that you can con-

serve energy by controlling your home appliances with the use of technology, even while far away from home, via EcoStruxure and automation is simply amazing”, she said. This initiative is the latest in a series of education programmes from Schneider Electric in West Africa. Others include the setup of a Schneider Electric Laboratory at the University of Ibadan, and its partnership with Deutsche Gesellschaft fur Internationale Zusammenarbelt (GIZ), which involves the implementation of a solar training program in three Nigerian technical training institutions for young, underprivileged Nigerians. Schneider Electric’s Access to Energy Programme is based on its philosophy to contribute to poverty alleviation and environmental protection by equipping everyone with safe, efficient and sustainable energy through helping businesses develop inclusive models. “As Schneider Electric continues to grow in Nigeria, it aims to continue grooming local capacities and local content in such a way that will contribute to national development”, Mike-Eze said.

L-R: Ilyas Kazeem, marketing manager, Domino’s Pizza Nigeria; Patrick McMichael , CEO, Eat’N’Go Limited; Otto Orondaam, CEO/founder, Slum2 School Africa, and Ruth Ene, head of operations, Slum2 School Africa, at the Eat’N’Go and Slum2 School Africa partnership to send 1000 children to school in Lagos . Pic by Pius Okeosisi

L-R: Chinwe Greg-Egu, brand manager, international brands, Nigerian Breweries Plc.: Emmanuel Oriakhi, marketing director, Nigerian Breweries Plc, and Sandra Amachree, brands pr and sponsorship manager, Nigerian Breweries Plc, during Born In Africa Festival 2018 in Lagos.

BUSINESS DAY

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Tuesday 25 December 2018

BDTECH

BUSINESS DAY

Tuesday 25 December 2018

In association with

Retailers turning to technology to offer smarter online and in-store experiences Oludare Ogunlade

s the holiday shopping rush gets into full swing, retailers are increasingly looking to technology that they can use to improve their operations, better understand and engage with their customers - using both off- and online channels - and set themselves apart from the competition. While the industry has relied heavily on big seasonal sales to drive revenue and profitability over the course of the year, changing consumer behaviour and buying patterns means retailers are having to explore alternative methods convincing customers to buy their products and services. Estimates from The Economist Intelligence Unit’s (EIU) report on How technology is driving retail in Africa suggest that e-commerce sales in Africa could reach somewhere in the region of US$50- 75bn per year within the next 5-10 years and Nigeria is in pole position to take advantage of e-commerce potential, on the basis of its high business environment opportunity potential. While many African consumers still prefer shopping in physical stores or using street traders and informal markets for their purchases, access to technology is on the rise, which brings a larger range of products to a wider range of consumers. In some countries, e-commerce is serving rural areas very effectively, as companies are able to deliver to

less accessible places, where sourcing goods from shops or stalls may not be as straightforward. Engaging digital experiences Mobile accounts for 52.2 % of all worldwide website traffic generated in 2018 and for half of all global web pages served, as such retailers need to have a comprehensive digital presence in order to stay relevant. This is especially the case in developing markets, including in Africa, where mobile devices are their primary means of access to the internet. According to the EIU’s report, smartphones are a gateway tool to the internet for Africans, especially in Nigeria, where the mobile penetration rate is forecast to rise from 103 per 100 in 2016 to 122 per 100 by 2021. The report also found that smartphone adoption in Nigeria has been growing strongly with the Nigerian Communications Commission reporting that mobile subscriptions accounted for 99.9% of all phone subscriptions as at end2016, while the number of active mobile internet subscriptions at 91.9 million, or 59.6% of total subscriptions represents one of the highest rates of mobile internet usage in the world. It is also interesting to note that Nigeria came second in the list of countries with the highest percentage of online sites viewed on mobile phones (81%), compared to the global average of 50%, according to Statcounter data from January 2018. Customers are doing more research online before making a

purchasing decision, even while in store, and brands need to ensure that they are able to capitalise on this initial interest. Apart from more information on products or services, a brand’s website or application should also give users the ability to engage in real-time conversations to resolve any queries and further persuade the customer to buy. Increased personalisation While African retailers are sitting on huge volumes of data about their customers, many are still not sure what to make of it all. Thankfully, improvements in connectivity and advances in cloud computing mean that they can now turn to customer experience cloud applications, such as Oracle CX Cloud to deliver a consistent and personalised experience across all channels, touch points and interactions. With the right algorithms, cus-

tomers are presented with better product recommendations, which take into account their buying history, and spending patterns. By considering unique tastes and preferences, customers are shown products that they are more likely to be interested in, while the retailer stands to benefit from increased sales. Armed with this data, retailers can also overhaul the way in which they manage their sales and promotions: rather than a one-size fits all, they can provide different levels of savings, promotions that are exclusive to actively engaged shoppers and even event invitations for VIP loyalty members. A smarter in-store experience Traditional brick and mortar stores are not going disappear anytime, and taking an omni-channel approach means that they still have a role to play for retailers - they

will just have to change the way in which they operate, by offering an in-store experience that cannot be replicated online. The Nielsen Shopper Trends 2017 study found that 87% of Nigerian shoppers say they prefer to shop in a well organised grocery store with an enjoyable atmosphere. The same number stated that customer service is very important to them, especially when they shop for groceries. Retailers that want to capitalise on this feedback must optimise the in-store experience for their shoppers and provide them with a more personalised service. This can be achieved with innovative merchandising, stand out promotional displays and smart stores. Brands can use smart stores to meld the digital and physical world, enabling shoppers to browse and buy online, but then pick up their purchases in store. Shoppers can be linked to their online profiles through technologies such as bluetooth or near field communications, and have personalised offers or loyalty rewards instantly sent to them. The retail sector in Nigeria is burgeoning thanks to increased access to connectivity and smartphone penetration. Both physical stores and e-commerce platforms can benefit from this growth potential by investing in the right technology to future-proof their businesses. Oludare Ogunlade is the Sales Director, West Africa Applications at Oracle NIGERIA.

Mastercard partners DPO Group to further boost digital payments in Africa Jumoke Akiyode Lawanson

astercard, global payment service provider is collaborating with Direct pay online (DPO)Group, a secure online billing platform, to enable more than 40,000 African merchants to accept Mastercard payments, by using DPO as a Pan-African switch to independently authorize transactions without any bank integration.

The solution which utilizes MasterCard’s payments gateway services (MPGS) enables payment partners like DPO to easily and securely accept a wide range of digital payment methods from all over the world and for numerous industries online, in-person and via mobile. The collaboration seeks to enable both small and medium enterprises (SMEs), which are critical to the growth of the African economy and global enterprises,

to better process payments across Africa via a simple integration to a single platform. According to MasterCard, the collaboration between the two companies will improve merchant benefits like seamless, secure digital payment acceptance; access to cutting-edge technologies; fraud management, and global connectivity through recognised payment methods. “Mastercard’s partnership with

DPO is an important milestone in our vision to financially include every African. Our partnerships with DPO and other key FinTechs across Africa, allows Mastercard to speed up building of the acceptance railroads that will drive the growth of secure and convenient electronic payments. This in turn acts as the engine that drives faster economic growth across the continent for the benefit of millions of Africans” says Raghav Prasad,

MasterCard’s division president for Sub-Saharan Africa. Eran Feinstein DPO Group CEO says “By enabling both customers and merchants to transact securely online and offline we’re able to facilitate the growth of businesses across Africa. With the right pan-African technology partners, we’ve managed to turn online transactions to a preferred choice of conducting business across all industries.”

BUSINESS DAY

Tuesday 25 December 2018

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E-mail: jumoke.akiyode@businessdayonline.com

Telcos shaken as NCC approves disconnection from IHS, ATC facilities for indebtedness ... ATC exonerates Smile Communications, both explore new tower agreement Stories by JUMOKE AKIYODE-LAWANSON

elecommunication operators (Telcos) have been unsettled in the last one week, after the Nigerian Communications Commission (NCC) granted IHS and ATC Nigeria permission to disconnect any operator from their facilities for failing to pay debts owed to the tower operators. Disconnection from these towers will most likely lead to failed network and ultimately lead to loss of subscribers and revenues. Regardless, NCC went ahead to give an approval for the disconnection, explaining that the telcos had no reason to owe facility operators. However, in order to allay the fears of subscribers to Smile Communications, one of the telecoms companies listed for disconnection, ATC Nigeria has confirmed that Smile Communications Nigeria is not indebted to it. To affirm Smile’s nonindebtedness, ATC has also withdrawn the earlier disconnection notice. ATC Nigeria has confirmed the payment of all legacy amount due from Smile Communications to ATC Nigeria. ATC Nigeria has by a letter dated 18th December to the NCC, withdrawn the notice of disconnection.

L-R: Tele Oyegoke; Chief Operating Officer, Bingo9ja, Onuorah Iyizoba; Board member, Chinedu Iyizoba; Board member, and Eni Eniola; Chief Executive Officer, at the media launch of Bingo9ja gaming platform in Lagos recently.

According to a very reliable source close to both ATC and Smile Communications, ATC’s request to NCC was premised on the payment of all legacy amount due to ATC by Smile Communications. Sources from both organisations confirmed that whatever was outstanding related to exchange rate differentials which is very minimal and late payment fees which is being contested, have been addressed. “Both organisations are

currently exploring new tower agreement that will be naira denominated and would be mutually beneficial to support Smile Communications Nigeria long term rollout plan,” the source said. According to the source, the legacy debts from most telecoms operators to tower vendors mostly arouse as a result of the devaluation of the naira by over 40 per cent in 2016, which brought about a significant increase in tower lease rental, considering

that the tower agreements were denominated in dollars. “Moving to a naira denominated contract will ensure sustainability of telecommunications’ business and facilitate expansion of broadband services across the country to fuel economic development and social engagement,” the telcos said. Meanwhile, NCC has assured telecoms subscribers that the disconnection order would not affect any tele-

coms subscribers, since as a regulator, it has a duty to protect telecoms subscribers always. Sunday Dare, executive commissioner, stakeholder management at NCC, who gave the assurance in Abuja at the weekend, clarified that the approval given by the NCC was not for any network to disconnect subscribers as being wrongly perceived, but for some creditor networks to restrict services to debtor networks.

VoguePay’s CEO wins online payment leadership award

he CEO of VoguePay, Michael Femi Simeon has won the online payment leadership award. Michael Femi Simeon, CEO of VoguePay, a popular online payment gateway in Nigeria, has been named Payment Personality Leader of the year at African Prize for Leadership Awards. The award, supported by Forbes Africa and NEPAD, celebrates national icons with proven track records in business, governance and social advocacy. While thanking the organizers for the recognition, Simeon used the occasion to express gratitude to more than 85,000 global businesses using VoguePay to accept payment saying that

their continued patronage enabled the startup to become the fastest growing fintech company from West Africa that has not raised external capital. He remarked that the entry of VoguePay into the payment landscape in 2012 was the beginning of the fintech revolution in Nigeria as more than 17,000 SMEs took their business online for the first time, at no cost. The company has continued to innovate by building new payment processing capabilities that enables small businesses to accept payment globally and become global companies without the associated cost. Simeon challenged both fintech startups and banks to collaborate with each

other, not to see the other as threat, stating that this will unlock value for millennial.

Michael Femi Simeon

He hinted that the company is due to launch its digital financial services platform in

collaboration with partner banks by Q1, 2019. The CEO of VoguePay also solicited the support of government to provide regulations that encourage innovation.As he pointed out; “proactive regulations that encourage innovations like open banking and sandbox program will enable fintechs to launch bank-grade financial products that can position Nigeria’s financial services sector to global significance.” In his final remarks, Michael added that the most exciting part of his job is working with an amazing team of talented cofounders and staff across the company’s offices in United Kingdom, Nigeria and Estonia.

Instagram boosts women startups with Inspire Action training

s part of the Africa Tech Week which took place in Lagos, photo sharing app, Instagram on Thursday, 6 December held the maiden edition of ‘Inspire Action’ training - aimed to inspire, educate, and train between 70 to 80 women entrepreneurs and women working in the technology industry during TechCrunch Week. Speaking on the program, Kezia Anim-Addo, communications manager for Sub-Saharan Africa, Facebook said that part of the goal is to demonstrate to entrepreneurs and policy makers that Instagram is the perfect platform that creative businesses need to grow locally and internationally. “We have come to realise that more women are keying into the tech culture, and as a result, there is a new wave of growth that cannot be neglected. More importantly, the number of startups and young entrepreneurs who are keying into the Instagram platform is on the increase. This training will serve as a guide, while introducing them to new models of ensuring business growth,” Anim-Addo said. She added that the training also celebrated the achievements and contributions of womenowned businesses on Facebook and Instagram. The program introduced participants to an overview of Instagram including local insights, branded content and influencer narrative, better ways of leveraging Instagram stories, and a host of others. It also featured an influencer panel. Participants at the training included SMBs, women founders of brands of various categories including fashion, beauty, food & beverage, lifestyle, artists, social initiatives and a host of others.

BUSINESS DAY

Tuesday 25 December 2018

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Gloomy Christmas await students as ASUU vows to continue strike KELECHI EWUZIE

ny plans by students in b oth federal and state universities to resume normal academic activities soon have been dashed as Academic Staff Union of Universities (ASUU) has vowed not to suspend the ongoing strike due to government’s insincerity and unseriousness in addressing the contentious issues. Biodun Ogunyemi, president of ASUU who disparaged the Federal Government for its negligence on issues of such magnitude, also described the rumour that the union’s struggle is politically motivated to disrupt the 2019 election as laughable and unfounded. Ogunyemi who stated this Sunday at a briefing held at the University of Lagos (UNILAG) ASUU secretariat, where members, zonal and chapter heads congregated in solidarity for their struggle. According to him, “The only thing that will make ASUU to

shift ground is demonstration of serious commitment on the part of government to the implementation of the spirit and letters of 2009 FGNASUU agreement, as well as the resulting 2013 MoU and

2017 MoA. This he added will pave way for the rapid transformation of Nigeria’s public universities for improved efficiency, infrastructural development and global competitiveness.

Endowment funds to boost academic pursuit for indigent students Akinremi Feyisipo, Ibadan.

he prospects for indigent students pursuing their academic dreams have being given a boost as Tunde Afolabi, Chancellor, First Technical University; Ibadan has endowed a scholarship scheme to help them through university tertiary education. The scholarship awarded through the Josephus Foundation is strictly merit-based and it covers tuition, accommodation and other fees of beneficiaries who are newly admitted undergraduate and direct entry students of First Technical University commencing from the 2018/2019 academic session till the end of their study. Ayobami Salami, vice chancellor, First Technical University, speaking during

the presentation of letter of awards to beneficiaries, appreciated the Chancellor for his thoughtfulness and generosity. Salami assured that the University is committed to its vision of world-class institution fully grounded in entrepreneurial practices, unique innovation, sustainability science and international best practices for radical societal transformation. According to him, “The essence of Tech-U is to raise the bar in tertiary education. This University was established to address the skills gap in the country and not to mass-produce unskilled certificate wielding graduates, as it is in the country today. Here, our students are carefully baked to be outstanding entrepreneurs and innovators”. In addition to the Josephus Scholarship and the LGAs-backed scholarships

available for top-flights students at the STEM-BASED institution, Salami noted that the Tech-U management is commitment to providing more support schemes to enable students have a best-in-class, globally competitive education. A distinguished professor of Space Application, Salami encouraged the students to justify their selection by demonstrating excellent moral and academic performance during their course of study. Pioneer recipients of the scholarship were selected from diverse applicants through a keenly competitive aptitude test. The Scholarship will be offered on an annual basis to newly admitted (UTME, JUPEB and direct entry) students and could be held, subject to satisfactory performance, for the duration of a beneficiary’s programme of study.

Ogunyemi said, “Since the commencement of our industrial action on November 4, 2018, we have had six meetings with agents of the FG, with no clear commitment from government to resolv-

ing all the affected issues. Government appears to have adopted the ‘keep-them-talking’ strategy, while deceiving the pubic that progress was being made, and that partial agreement had been reached between the government and the union. “Through its press interactions, government through its representatives had falsely raised the hope of the Nigerian public on the state of discussion with out union. Our expectation from a very responsive and sincere government is that by now, all outstanding issues would have been resolved to the satisfaction of both parties. Unfortunately, government is yet to show sincerity in addressing the problem. He continued, “Nigerians should please note that, as at today, there are no concrete commitments on the part of government to warrant considering the suspension of this strike action, which we did all that was possible to avoid. We appreciate the understanding of our students,

their parents, among whom are many ASUU members, and all people of goodwill since the resumption of this preventable strike action. ASUU does not take your sacrifice for granted. With your continued support, we can make the Nigerian ruling class come to accept the centrality of university education in improving the human condition.” On the accusation that the strike has political undertone, Ogunyemi said, “In 2013 when we had a six months strike, the then Goodluck Jonathan’s government said opposition was sponsoring us, today that opposition is in power, who is sponsoring us? We are not perturbed because we see all these as distractions. To us, it is not an issue. For those accusing us of planning to abort the election, it is unfounded and there is no basis for it. Our strike has nothing to do with election. We do not want to create problem for this country, but let government not create problem for itself.”

Ibadan Poly graduates 9, 549 Akinremi Feyisipo, Ibadan.

he management of the Polytechnic Ibadan has awarded various academic certificates in both National Diploma (ND) and Higher National Diploma (HND) to nine thousand, five hundred and forty nine (9,549) students who were found worthy in character and learning. The faculty of financial management studies has 1,773, faculty of business and communications studies has 2,794, faculty of Engineering has 1,627, faculty of environmental studies has 1,435, while faculty of science 1,920. Olatunde Fawole, rector of the institution while speaking at the 32nd/33rd combined convocation ceremony said the Polytechnic Ibadan is today graduating a total number of nine thousand, five hundred and forty nine students (9,549), students for the 2015/2016 and 2016/2016 academic sessions. Fawole while speaking said, “Your Excellency, distinguished ladies and gentlemen, “All the programmes being

run by this institution as at today are fully accredited by the National Board for Technical Education (NBTE), which is being the regulating body of all academic programmes in Nigerian polytechnics. The institution will continue to strive to attain excellence in all spheres of life. The institution is also expanding its scope of academic programmes. “Two new programmes, National Diploma in Library and Information Science and Higher National Diploma in Mechatronics are expected to commence this academic session. Fawole while felicitating with the graduands maintained that the spirit of tolerance, high moral standard and dedication to duty will see them through. He said, “You are going into the larger world that is different from the campus. The spirit of tolerance, high moral standard and dedication to duty which we added to spice your academic pursuit will definitely see you through your future endeavours. I urge you to be good ambassadors of The

Polytechnic Ibadan. “The Diplomas you are receiving today should make you proud of your years of training and remember that there is no inferiority in you except that which you allow. “Graduates of Polytechnics are found in every field of human endeavours, be it commerce, government, industries. Remember the spirit of hardwork that we have impacted to you and the motto of the institution. Ise loogun Ise (Work is the antidote of poverty). “You should also note that the certificates you are holding belong to The Polytechnic Ibadan and you must continue to defend the name and integrity of the institution at any time. At the ceremony were the Governor of Oyo State, Abiola Ajimobi who was represented by his Deputy, Moses AlakeAdeyemo, Chairman of the governing council of the institution, Adebayo Adeyemi,both professors and the Olubadan of Ibadan land, Oba Saliu Adetunji who was represented by Mukaila Olawoyin, Bada Balogun of Ibadan land.

BUSINESS DAY

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Tuesday 25 December 2018

EDUCATION Greensprings School takes learning experience outside the classroom ...Extend care to under privileged KELECHI EWUZIE

he concept of education does not necessarily end in the classroom, it goes beyond that. It is therefore with the mindset of giving her pupils a holistic approach to learning that Greensprings School, Ikoyi campus extended their pupils learning experience outside the classroom by donating various gift items to under privileged within her environs. The donation tagged Christmas in the Box was done in association with the Selfaid Capacity Development Initiative. Dolapo Fatoki, head, Greensprings School, Ikoyi campus, said the school in so many ways try to reach out to the under privileged adding that charity is part of Greensprings core value. According to her, “I am happy this is a successful project because the children were heavily involved from

beginning. By the time they understood who they are giving to and why they are doing it, they did not stop reminding their parents till they all come in with box full of stuffs,” Fatoki says the gesture is not part of the school curriculum, however, the school makes it a point of duty to teach empathy and morals to the pupils’ adding that the school have achieve what it set out to. “Aside from providing quality education, we are also abreast of what is going on in educational space. As a new school, we will continue to support more charity organisations”. “We support displaced children, we are just one of the four campuses that we have the Lekki campus supports like three to four orphanages, we have children on scholarship from less privileged background”, she said. Fatoki further stated in Greensprings School all round of education, building of character is very important. According to her, “Through the thinking school initiative, we

bring up children that see the world as places they can operate from any of its part because of the type of education they receive. We are locally situated, but we train internationally minded children that are ready to face any child in the world and ready to operate.” “We have sports scholarship and academic scholar-

ships. I wish that many schools like ours can do this or reach out to the less privileged community on a regular basis so that education will reach out to them,” she added. On her part, Ngozi Eze, founder, Selfaid Capacity Development Initiative, said that identifying with less privileged in the society was an awesome

experience. She said the foundation is all about the widows, children and orphans. “We have four projects, the first one is the fresh start, where we train widows and empower them take on their business to enable them carter for their families. The second one is back to school; we

have a lot of kids that are out of school. We get sponsors to send their kids to school and some scholarship for the children”. “The third one is preventive healthcare; where we do basic medical care for them and they get tested for hepatitis B, diabetes, hypertension and blood sugar. The last one is feed the needy. We do this quarterly, we go out in the public and feed people on the street,” she said. Eze said the foundation has lot more people to cater for, adding that it is not all about feeding them; we need to take then to the next level so that they become productive for the country. A beneficiary, Veronica Ogbu said, “I am so excited. I say a very big thank you to Greensprings Schools. I did not imagine I can come here not to talk of having something. I am grateful. The foundation has been very helpful. They use to give us food but now we are being trained and empowered so that we can be useful to ourselves.”

Private sector plans access to quality Enugu State lauds Promasidor career education for 1000 underserved children guidance initiative for students KELECHI EWUZIE

he plight of 1000 underserved children deprived of basic education is about to change for the better as Eat’N’Go Limited, Nigeria’s leading food franchisee in partnership with Slum2School Africa, a volunteer-driven developmental organisation is out to provide them access to quality education. Under the Hope for Every Child, One Bite/Scoop/Swirl At A Time’ initiative aims to through targeted funds raised from 1st December 2018 to 30th November 2019 support education. This initiative seeks to directly contribute 50 million naira generated from proceeds of select products from Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt. For every Cinnastix purchase from Domino’s Pizza, N100 will be donated to this cause, for every waffle purchased at Cold Stone Creamery N100 will also be given back while Pinkberry will donate N100 on every bubble waffle purchase. Patrick McMichael, chief executive officer, Eat’N’Go Limited speaking about the

partnership in Lagos said the company is not only passionate about putting smiles on the faces of customers with our products, but also about improving the lives of the people in Nigeria. According to him, “We believe that as individuals and corporate organisations, we have a collective role to play in improving the state of education in the country. We understand the value good quality education contributes to an economy and it is our responsibility to ensure we expand our support in partnership with NGOs like Slum2School who can help us achieve these goals”. McMichael the company is thankful for this opportunity to lend support to the development of the educational system for children in Nigeria and cannot wait to do even more. Otto Orondaam, founder Slum2School Africa observes that UNICEF report puts Nigeria as the country with the largest number of out-of-school-children in the world. Orondaam stated that this remains a looming threat to the economic prosperity, social security and developmental sustainabil-

ity of the nation. According to him, “Every child has a right to quality education, which is why we partner with organisations across the world to support as many disadvantaged children in Nigeria, as possible”. “We are grateful to be working with Eat’N’Go supporting our “Hope For Every Child” initiative, and we hope that in the coming years our goal would increase to cover thousands more.” He further said that through this collaboration Eat’N’Go is demonstrating a hands-on approach in combating one of the most challenging issues in Nigeria today, which is quality education for children. The organisation has further showcased its commitment to impacting Nigeria, and making it a better place one cause at a time. Valued at N50,000 per child, these 1000 underserved kids will receive quality education including psychosocial support encompassing school needs such as; instructional materials, uniforms, shoes, books, excursions, medical support, extra-curricular classes, tech classes, teacher support, and more.

nugu State government has commended the management of Promasidor Nigeria Limited for extending its corporate social responsibility initiative, “Harness Your Dream” to students of the state. Uche Eze, Enugu State Commissioner for Education in his goodwill message at the fourth edition of the career guidance programme held at Queen’s School, expressed deep appreciation to company for adding value to the students, drawn for JS 3 classes of the host and neighbouring schools. Eze who was represented by Chidiogo Ugodu said that the impact of the project would be felt in the years ahead of the beneficiaries, who would now be able to make the right career choices. Eze urged Promasidor to consider extending “Harness Your Dream” to other schools in the state, particularly those in the rural communities. According to him, “I have harnessed my dream today. With this programme, the students now know about other career choices. Promasidor, we thank you for coming to Enugu. We thank you for adding value to us. We will like you to extend this programme to other parts of the state,” Lazarus Ude, deputy director, guidance and counselling at the Ministry of Educa-

tion, and Ada Nweke, Principal of Queen’s School, Enugu, also thanked Promasidor for extending the programme to the state. “You did not make any mistake by choosing our state as one of your catchment zones. Our amiable governor is education friendly. He always want to see children achieve their aims in life,” Nweke said. Earlier, Anders Einarsson, managing director, Promasidor Nigeria Limited, said that the company is deeply committed to supporting Nigerian youths in fulfilling their potentials, adding that the motivation for the initiative to guide students to choose careers that match their talents, skills and aspirations. “We specifically target your class because by next session, you will be selecting relevant subjects that will determine your future careers,” explained Einarsson, who was represented by the company’s Head of Legal and Corporate Communications, Andrew Enahoro. He encouraged the students to take advantage of other projects by Promasidor, including Cowbellpedia Secondary School Mathematics Television Quiz Show, which is sponsored by the company’s flagship brand, Cowbell. Einarsson recalled the

feat of Munachi Ernest-Eze, who in November last year added the senior category of the Cowbellpedia Mathematics competition to the junior category he had won two years previously. “Munachi’s exceptional performance is a story of dedication, discipline and devotion. And this is the path you should follow,” the Managing Director admonished. He also stated that the Loy a Swim Meet, which has just concluded its third edition, helped to support the sports development aspirations of hundreds of youths. “These initiatives are not inspired by excess funds as we have limited resources like every other company. The difference we have make lies in our genuine passion in assisting you to achieve your dreams,” he explained. Enahoro said that Promasidor Harness Your Dream is encouraging the spirit of hard work among young Nigerians. He said the choice of courses taught at the programme was skewed towards helping the benefitting students ultimately becoming gainfully employed and useful to themselves and the society. “Next year, we are going to change the syllabus because this one has run for a whole year. We will like to incorporate other professions and careers into the programme,” he hinted.

Oil & Gas

Power

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Renewables

Energy Report

Tuesday 25 December 2018

BUSINESS DAY

Environment

Election results, oil price volatility may hamper 2019 budget projections OLUSOLA BELLO

hen presid e n t Mu ha m madu Buhari indicated that the 2019 budget was going to be presented to the national assembly, Nigerians were relieved that at last they would get to know what the government plans to do in the coming year to help reduce their current economic suffering. It was the expectation of some Nigerians that some drastic decisions would be taken in respect of the deregulation of the downstream sector of the petroleum industry where the economy is currently bleeding. So that the huge amount of money spent on the so called under recovery by the Nigerian National Petroleum Corporation (NNPC) would have been redirected to some more productive sectors of the economy and social sectors like education and health. Industry stakeholders had also expected the government to say that it would hand off the refineries and sell them straight away to the private sectors. Again there is no major policy shift from oil depen-

dent in 2019 and this has the tendency to put the economy in jeopardy given the unpredictability of oil prices in the international market and our own local situation in the Niger Delta , especially in an election year. The much mouthed diversification cannot even happen with this budget. Given the way the government is handling developments in the oil and gas industry. The refusal of the President to sign the Petroleum Industry Governance Bill (PIGB) because he allegedly wanted to hit back at his ’enemies’ has not helped the industry on which the country depend solely for more than 90 per cent of its foreign earnings and over 80 per cent of its revenue. Despite the fact that government is treating the industry shabbily without concrete plans to attract foreign investments it is still the fulcrum on which 2019 budget depend on for the economy to thrive . Here are some of the highlights of the budget as they affect the oil and gas industry. The budget provision is based on a projection of 2.3 million barrels per day. The benchmark is $60 per barrel. This has attracted some reactions from experts who are of the opinion that the government is not realistic

Muhammadu Buhari

with these projections and too optimistic. According to them, the fact that OPEC plans to cut production in order to shore up prices and grow crude oil inventory and cut excess supply makes the plan of a production level of 2.3 million per day a mirage and unattainable. On December 7, 2018, OPEC agreed to cut 1.2 million barrels per day from the October levels. Members would cut 800,000 barrels per day and allies would cut 400,000 bpd. Cuts would continue for six months. OPEC’s goal is to return prices to $70 a barrel by early fall 2019. Whether this will happen

Shell announces FID on Assa North Gas Project

this on weekend noted that the project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth. “This is good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints.” Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.” Okunbor added that the SPDC JV would continue to

explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions. Toyin Olagunju, SPDC’s director and general manager Projects, said the Assa North project would be a significant contribution to GDP growth in Imo State and across Nigeria as the gas produced will be utilised in-country across diverse industries, while providing economic opportunities for local communities. Just three weeks ago, the SPDC JV signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43million standard cubic feet of gas per day to support the 140MW Aba Integrated Power plant at Ossisioma in Abia State.

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

is not enough reason for the government to be too optimistic about oil production. He explained further, saying that even though militancy has gone down, the situation in the Niger Delta is highly unpredictable and anything can happen and the militants would be back to the creeks and may decide to blow the pipelines which may cause the country some differed productions. Toyin Akinosho, publisher of Africa Oil and Gas Report, a magazine focusing on the petroleum sector tows the same line of thought with the other operators. He said that in a situation where the country is being asked to cut production when it is producing less than 2 million barrels already by OPEC, it sounds funny that the country is projecting 2.3 million barrels per day in 2019 budget. He said: “It is not true, the country cannot at this current situation produce 2 million barrels not to talk about 2.3 million 2019.” According to him, the country’s production at this moment is zigzag and highly unpredictable because of so many things happening in the Niger Delta. On the benchmark of $60 per barrel, he dismissed the action as lacking foresight.

Yuletide: Ikeja Electric Expands Network Maintenance to Ensure Stable Supply

…targets 300 million cubic feet gas for domestic market he Shell Petroleum Development Comp a n y o f Ni g e r i a Limited (SPDC) has announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State, a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation. At peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network. Osagie Okunbor, managing director of SPDC and country chair, Shell Companies in Nigeria, who disclosed

would be based on the volatility of oil prices of today. But only time will tell if this would happen. The experts also stated that the benchmark price of $60/bbl used for the budget is not smart based on all the uncertainties and volatility surrounding the price of oil, surplus production. Muda yusuf, director general of the Lagos Chamber of Commerce and industries (LCCI) assumptions of the government are not realistic. “Already the price of oil is below $60 per barrels. We must be conservative if we are talking of revenue. Even the assumption on production I

don’t think it can work.” The exchange rate that is put at $305 he said will not do anybody and good as it would affect the government revenue negatively Bank -Anthony Okorafor, chairman, Petroleum and Technology Association of Nigeria (PETAN) while reacting to the budget assumptions of 2.3 million barrels per day and $60 per barrel of oil, he said: “But the reality today is $59 per barrel. Worldwide crude oil prices will average $61 a barrel in 2019. That’s according to the Short-term Energy Outlook by the U.S. Energy Information Administration. The estimate is $11/b lower than the EIA prediction just a month ago. The forecast dropped after oil prices dipped below $50 a barrel in November. The average for the month was $65/b”. He said they believed higher U.S. supplies would flood the market at the same time slowing global growth would cut into demand. Saudi Arabia and Russia had also produced oil at record levels. Also reacting to the budget assumptions, Seye Fadahunsi , a former executive director of Pillar oil, described the budget as an optimistic project. He said even though the Egina project is coming on stream with about 150,000 barrels of crude next year this

espite the current power supply Ikeja Electric says it has put in place mechanism that would ensure customers have an enjoyable Yuletide. According to the management of Ikeja Electric (IE) it has expanded the scope of its patrol teams and field operations for preemptive maintenance across its network. This will see various installations undergo preemptive maintenance work, as well as increased number of patrol teams to ensure swift repair of faults was confirmed in a statement released by Head, Corporate Communications of IE, he said the company was aware that its customers need stable supply of power to enjoy Christmas and New Year celebrations. According to him: “The company is not unaware of

expectations of customers to enjoy regular and stable power supply during the yuletide, so, a lot of measures have been put in place to ensure that customers’ hopes are not dashed. We have started replacing faulty cables and equipment to ensure easy evacuation of power as received from the National Grid (NG)”. “In addition, our Fault Clearing Teams in all Business Units have been reinforced and enhanced to meet the demands which expectedly will increase this period because of the pressure that our facilities will be subjected to. We are mindful that during holidays, customers in festive mood will need more supply and this load on our aging infrastructure may cause some faults and trips. Our teams are ready to ensure they are rectified in the shortest possible time” he said.

Ofulue advised customers not to resort to using those road side electricians to clear fault in their areas, adding that such people usually compounded the problem on the network. Similarly, he informed that the metering program IE is still ongoing, urging patience from customers as the metering exercise was moving according to schedule, while indicating that some locations like Egbeda, Ifako, Oworonshoki, Ajao, Ojodu, Magodo and Abule Odu among others already enjoyed a metering density of over 50 percent. However, he appealed to customers within its network to settle their monthly electricity bills promptly as this provided the company the much needed resources to expand and maintain its technical/metering initiative timetables.

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

BUSINESS DAY

Energy Report

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Tuesday 25 December 2018

’National Gas Policy commits to ending gas flaring’ Justice Derekafa is the Programme Manager, Nigeria Gas Flare Commercialisation Programme in the office of the Minister of state, Petroleum Resources. He speaks to BusinessDay’s Harrison Edeh on key efforts of the Federal government in addressing concerns of flared gas through the National Gas Policy and several other policy initiatives.Excerpts: Can we confidently say that the federal government is making serious progress in addressing gas flaring concerns in the country? es indeed. We can confidently say the Federal Government Nigeria (FGN|) has made tremendous progress in addressing the age long gas flaring menace. Let me start by saying that the FGN acknowledges the fact that gas flaring is a tremendous waste and we cannot simply tolerate that, especially from a climate change perspective. And in a world where we are under increased climate pressure, we cannot get rid of a precious natural resource and fuel in that manner. Apart from the detrimental health and environmental impact, we also acknowledge the fact that the gas we flare is an important part of the global energy transition, the closet ally to renewables. In a world where we still have about 1.1 billion people without access to electricity and another 1 billion people struggle with unreliable supplies of electricity this is not acceptable. More worrisome is the fact that 95% of these people are from sub-Saharan Africa and Developing Asia. Of that 1.1 billion, Africa has 588 million with the West African sub region having about 175 million and this closely followed by Central Africa with 172 million. Now back home in Nigeria with a population of over 180 million people, only 12.5% of Nigeria’s population have access to power supply and others with epileptic supply. Yet we flare gas that can generate electricity for us and boost economic development. It is based on this premise and other detrimental impact of gas flaring in the country that the Federal Government of Nigeria (FGN)

took a policy position that gas flaring is unacceptable and will no longer tolerate it. This aligns with the National Gas Policy approved in June 2017 and with the Ministry of Petroleum Resources’ “7 Big Wins”, which are short - and medium-term priorities to grow Nigeria’s oil and gas industry. Just to add, the National Gas Policy commits to ending gas flaring, creating an enabling environment for investors, seeking value addition for gas, and improving governance in the sector. So it is in this regard, the FGN went ahead to initiate a number of actions to reiterate its commitment to ending the practice of gas flaring in our oil fields. Explicitly, the FGN ratified the 2015 Paris Climate Change Agreement (what everybody knows as COP21) in 2017, and is a signatory to the Global Gas Flaring Reduction partnership (GGFR) principles and the World Bank’s Zero Routine Flaring Reduction global flare-out by 2030 and submitted its first nationally determined contributions (NDC), which included gas flaring reduction as a mitigation measure to combat global warming whilst committing to a national flare-out target by year 2020. Additionally, in acknowledgement that flared gas could be harnessed to stimulate economic growth, drive investments and provide jobs in oil producing communities and indeed for Nigerians through the utilization of widely available innovative technologies, the Federal Executive Council (FEC) approved the Nigerian Gas Flare Commercialisation Programme (NGFCP) as the mechanism for implementing Nigeria’s commitment to eliminate routine gas flaring. What is the level of updates regarding the amount

sources and Department of Petroleum Resources (DPR). We have worked from December 2016 to date in finalizing the development of a competitive procurement process for the allocation of gas flares to competent third party investors with marketable solutions, financial capability and technical cumoperational competence. To provide leadership as well as supervise and coordinate the implementation and integrate the multiple moving parts, a Programme Manager (“PM”) was sourced from the private sector. The Shell Petroleum Development Company of Nigeria (SPDC) yielded to the call for a PM at no cost to the Ministry of Petroleum Resources. Notwithstanding some bottlenecks, to date, the Programme is on track as we have completed the design of the key Programme transactional, commercial framework and documentation. We have now announced the Expression of Interest (EoI) for the first bid round for the flare gas in national [with the closing date for the

submission of Statement of Qualifications (SOQs) set to 20th January, 2019 in international dailies. According to our development partners, the design of the NGFCP is an innovative, robust and scalable approach to gas flare reduction - a “game changer” (first of a kind) consistent with the climate change action plans anticipated in the Paris Climate Change Accords which could be replicable in many other gas flaring countries around the World. Apart from the design of the key Programme transactional, commercial framework and documentation, one key accomplishment of the Programme is historic and recording breaking achievement is the enactment and approval of the Flare Gas (Prevention of Waste and Pollution) Regulations 2018. Which ushers a unique and historic opportunity to attract major investment in economically viable gas flare capture projects whilst permanently addressing a 60 year environmental problem in Nigeria. The Flare Gas (Prevention of Waste and Pollution) Regulations 2018 was signed by His Excellency, Muhammadu Buhari (GCFR), the President of the Federal Republic of Nigeria on the 5th July, 2018 as well as the regulatory instrument that will underpin the implementation of the NGFCP was gazetted within record time on the 9th July, 2018 The Regulations provide the legal basis for the implementation of the Nigerian Gas Flare Commercialisation Programme (NGFCP), introduces a new payment regime (penalties) for gas flaring which adopts the “polluter pays” principle and mimics a carbon tax. You will also notice that significant obligations are imposed on producers and gas flare out

projects for the reporting of data in respect of activities related to gas flaring. Could you kindly give us updates on the flaring sites considered for commercialization? By the design of the Programme, all flare sites are up for auctioning. Although we are feeling that not all of the sites will be taken in this first bid round. We are seeking to eliminate gas flaring through technically and commercially sustainable gas utilization projects developed by competent third party investors who will be invited to participate in a competitive and transparent bid process. These third party investors are to access and utilize flared gas that is currently being sent to flare and convert into what we call the ‘Flare-Gas-to-Market-Products (FG-2-MP)’ and they must demonstrate project development experience and proven technologies in commercial application. And we have now though DPR called for Expression of Interest (EoI) and Issuance of the Programme Request for Qualification (RfQ) package to the public to conduct the first bid round for the largest market driven flare gas monetization and utilization programme undertaken on a global scale Nigeria is the sixth largest gas flaring country globally, and the second largest in Africa after Algeria, does this not worry the Nigerian government and how are we working to specifically address this concern? Sadly, Government is not happy that we are amongst the top ten (10) in the league of gas flare nations in the world. We want relegation from that leaque which is why the FGN is now a signatory to international conventions and treaties relating to climate change

Journal, Saudi Arabia will cut by 322,000 bpd from October levels, rather than 250,000 bpd. That would limit output to 10.311 mb/d for six months. The report offers a mixed message, however, since Saudi Arabia has already signaled that it could lower output to 10.2 mb/d in January. Trump admin cuts deal with Iraq. The Wall Street Journal reported that the Trump administration has granted Iraq a waiver ex-

tension, allowing it to continue to import natural gas from Iran for another three months. In return, Iraq has seemingly pledged to allow American energy companies greater access in the country, including GE and Orion Gas Processors LLC for power generation, and ExxonMobil and Chevron for oil production. China is still holding off on buying much American oil, despite the three-month trade truce between the two

countries. “Chinese companies have little incentive to buy U.S. crude due to the wide availability of crude supplies today from Iran and Russia,” Seng Yick Tee, an analyst at Beijing-based consultancy SIA Energy, told Reuters. “Even though the trade tension between China and the U.S. had been defused recently, the executives from the national oil companies hesitate to procure U.S. crude unless they are told to do so.”

Justice Derekafa

of work the government is putting in to addressing flaring concerns with the 2020 targets? Very good question. We know and hear a lot of pundits saying the FGN’s NGFCP programme will not succeed and that it will go the way of other gas flare initiatives by previous government. Truth is, this Programme is a uniquely designed initiative in collaboration with our development partners i.e. the joint Programme Implementation Team of the NGFCP comprising of advisors from the US government (United State Agency for International Development - USAID) through the Power Africa Transactions and Reforms Programme (PATRP), the World Bank Group (WBG) through the Global Gas Flaring Reduction Partnership (GGFR) and the United Kingdom Government through their Department for International Development - Facility for Oil Sector Transparency and Reform in Nigeria (DFIDFOSTER) and staff of the Ministry of Petroleum Re-

OPEC+ battles to halt oil price slide …global financial upheaval presents major threats Olusola Bello with agency report

he global financial upheaval, which could presage a growing economic slowdown, presents a major threat to oil prices. OPEC+ is set to release country-specific production quotas, recognizing that the lack of detail in Vienna earlier this month has hurt its efforts to convince the market. “In the interests of openness

and transparency, and to support market sentiment and confidence, it is vital to make these production adjustments publicly available,” OPEC Secretary-General Mohammad Barkindo told OPEC members in a letter. With Brent in the mid$50s, the budgets for OPEC members will come under strain, and perhaps only Kuwait can see its budget breakeven. Low prices could sow unrest in several OPEC member states. “At current

prices, too much attention on shale, not enough on OPEC,” Olivier Jakob, managing director at Swiss consultant Petromatrix GmbH, told Bloomberg. Libya and Algeria, for instance, need oil prices above $100 per barrel. Even Saudi Arabia needs oil north of $80 per barrel for its budget to breakeven. Saudi Arabia could increase the size of its production cut after watching oil prices spiral downwards. According to the Wall Street

Tuesday 25 December 2018

Harvard Business Review

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The Draw of Co-Working Spaces 84%: In a report from researchers at the University of Michigan, 84% of respondents state that interaction with people is among the most common reasons they opt for co-working spaces.

Build strengths that complement your weaknesses

Find Ways to Be Productive in an Open Office

e all have strengths that simultaneously work for us and against us. For example, you may be detail-oriented in a way that causes you to spend too much time checking others’ work. Or you may ask questions that are important — but so incisive that they intimidate people. In these cases, the answer isn’t to play down the strength or not use it. (If you do, you might lose its benefits.) Instead, build a complementary skill that compensates for the strength’s downside. For example, if you tend to ask incisive questions,

When building a business, be selective about the work you take on

you can balance that out by increasing your warmth — maybe by acknowledging the speaker’s insights before asking your questions. Or you could thank the person for bringing the topic to your attention, or add a few words of support. On the flip side, if you’re so friendly and supportive that you don’t sufficiently challenge people’s thinking, push yourself to ask more difficult questions — without losing your natural friendliness. (Adapted from “Why Leaders Need to Cultivate Complementary Strengths,” by Peter Bregman.)

When presenting to the c-suite, organize your time well

hen you’re building a business, it’s obvious that you want to find lucrative projects. What’s less obvious is that, at a certain point, saying yes to all opportunities — even profitable ones — may actually thwart your future success. Why? If you take on too much, you’ll become spread too thin and risk prioritizing money over other important factors, such as learning. In the early days of your business, a project that tests and expands the limits of your skills is exactly what you should be looking for. But

Tips & Talking Points

TALKING POINTS You’re Invited 80%: The American outplacement firm Challenger, Gray & Christmas found that 80% of companies will organize a holiday party for their employees. + Cost of Christmas 11 billion: The cost of lost productivity and employee stress resulting from the holiday season in the United Kingdom is an estimated 11 billion English pounds, according to Kellogg College at the University of Oxford. + The Gift of Giving 40%: Employees who offer social support to their colleagues are 40% more likely to be promoted, according to Shawn Achor, author of “Big Potential.” + Billion-Dollar Fine $9 billion: BNP Paribas paid almost $9 billion in criminal penalties in 2014 for illicitly moving billions of dollars through New York banks on behalf of clients in U.S.-sanctioned countries, including Sudan, Iran and Cuba. +

BUSINESS DAY

hen

after a while, things that used to be novel no longer seem so interesting — and that’s when it’s tempting to say yes to something just for the money. Make sure to ask yourself: “Do I really want to do this project? Paycheck aside, will it help me reach my goals?” Sometimes, to preserve your happiness, it’s OK to say no to the money.

(Adapted from “When to Turn Down a Lucrative Opportunity,” by Dorie

you’re asked to share your idea with the C-suite, you h av e t o b e ready to prove its worth. The CEO likely hears a lot of smart ideas, so yours has to solve a business problem if it’s going to stand out. Spend the first 25% of your time calling out that problem. Talk about the pain points and build a sense of urgency. Spend the next 25% on the idea itself. Show how your initiative will be funded and how you expect it to grow and affect other parts of the organization. But don’t

get bogged down in details. In fact, you should reserve the last 50% of your time for questions. While that seems like an outsize chunk, it can be the most valuable part of your talk. Rapid-fire, blunt questions are a sign that executives are interested in and testing the angles of your idea. The more questions you receive, the better the presentation. (Adapted from “How to Blow a Presentation to the C-Suite,” by Sabina Nawaz.)

n open office can be a nightmare when it comes to noise — especially when you’re working on something that requires your undivided attention. To get the focus you need, talk to your team to sync up expectations about how you can all work optimally. Develop some ground rules. For example, you all might agree that when one colleague is on the phone, everyone else will only whisper. It’s also smart to invest in noise-canceling headphones. They not only drown out unwanted noise but also serve as a visual cue that you don’t want to be disturbed. Another tactic is to scout out a private, quiet space — an underused conference room, say — that will allow you to write and think when you truly can’t be interrupted. Finally, if noise is still a problem, ask your manager about moving to a new desk. Don’t lodge complaints about your talkative co-workers; be positive and tell your boss that you’ll be more productive in another space. (Adapted from “Staying Focused in a Noisy Open Office,” by Rebecca Knight.)

To get employees on board with change, tell them how they benefit

h a n g e can create uncertainty, instability and stress for your team. To get people on board with a change, and to ease them through the transition, it’s helpful to clearly articulate the meaning or purpose behind it. Start by crafting a narrative that explains the big picture: why the change is important and how it will positively affect the organization over the long term. Be consistent with this narrative; all of your communications should tie back to it, reiterating the case for change and presenting a compelling vision for the future. Sometimes you won’t have all the answers about the situation, so be honest about what you know and candid about what

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

you don’t. Tell employees that you are committed to communicating openly and transparently, and will follow up as soon as you know more. And don’t forget to articulate how the change will benefit them. If team members understand what’s in it for them personally, they’re more likely to commit.

(Adapted from “Don’t Just Tell Employees Organizational Changes Are Coming — Explain Why,” by Morgan Galbraith.)

BUSINESS DAY

Tuesday 25 December 2018

Experts offer insights as real estate lags, Cooperative, devt partners N20bn affordable economy moves without sector in 2018 plan housing scheme …oversupply, low demand, high vacancy rate, rents default persist Stories By CHUKA UROKO

nlike other sectors of the economy, real estate remained in negative growth territory in 2018 long after the wider economy exited recession. Figures from the Nigerian Bureau of Statistics (NBS) however showed incremental improvement in the sector, but that improvement could not, in real terms, change the sector’s narrative. At the end of Q3 2018, the sector reported growth of -2.68 percent as against the -3.88 percent growth rate recorded for Q2 and -9.40 percent in Q1 2018. Experts say the impact of the improvements in the wider economy was not much on the real estate sector which was challenged by oversupply, high vacancy rates and rent default in the high end residential, commercial office and retail segments of the market. Demand softened and prices alongside rents went down considerably at this end. “The economy really improved but real estate lagged behind. But this is understandable. Not much progress can be made in this sector with a large portion of Nigeria’s population outside the housing market and mortgage still remains too expensive for many people to access and afford”, explained Adeniyi Akinlusi, CEO, Trustbond Mortgage in an interview. He explained that the informal sector which is the largest segment of the Nigerian population is still outside the housing market and this population accounts for over 60 percent of the country’s GDP. MKO Balogun, MD/CEO, Global Property and Facilities International, agrees, adding however that “a lot of things are not being done properly in the real estate sector and the players are to blame; not the government. The solution to the sector’s problems must come from the players and until these problems are solved, the sector will never grow”. Balogun is of the view that the high vacancy rate at the high end market is caused by investors and developers who have refused to listen to expert advice

IDRIS UMAR MOMOH, BENIN

or to follow the trend in the market. According to him, market demand has shifted significantly from three and four-bedroom stand alone houses and apartments to studio, one-bedroom and two-bedroom apartments. “For me there is no oversupply in the market because a lot of people are looking for homes to buy or rent. Anybody who dimensions the market very well will sell off before completion. Statistics shows that 60 percent of home seekers are those looking for one and two-bedroom apartments”, he said. Due to job losses and shrinking personal/household income, many people could not buy or rent houses and even pay house rents by those who already have accommodation. In effect, during the period under review, there were movements out of expensive areas to relatively affordable locations. In Abuja, there was significant urban-rural movement occasioned by tenants’ inability to pay rents in the city centre. An estate surveyor and valuer, Alomaja Olajide , confirmed to BusinessDay that people were relocating from places like Garki, Wuse and other highbrow locations where they could no longer afford N1.3 million to N1.5 million rent to satellite towns like Kubwa where rent was more affordable at N700, 000 per annum for a three-bedroom apartment. Similarly in Lagos, the midlow end market has witnessed

tenants’ movement. Areas like Maryland, Omole Phase 1, Magodo Estate, Ikeja GRA, Surulere, Ilupeju, Ajao Estate, among others, saw vacancy rates that were unusual in such locations which are sought after by young executives that work in banks and other blue chip industries. But many of these young executives lost their jobs and could no longer afford their rents. Some of those who were still at work were not sure of their salaries, leading to high rent default rate. Some of them moved from the mid-income locations where rents ranged from N2 million to N3 million per annum for a duplex, and N800,000 to N1.5 million per annum for a three-bedroom apartment to areas like Ketu, Aguda, Ejigbo, Okota, Egbeda, Iyana-Ipaja, Oke Afa, etc where rents were relatively lower at N1million to N1.5 million per annum for a duplex and N500,000 to N750,000 per annum for a three-bedroom apartment. On the island, people who occupied the N3 million to N3.5 million property in Lekki Phase 1 moved down to the Chevron axis to pay N2 million rent. Some people moved from Ikoyi or Victoria Island where rent was as high as $70,000 per annum to Lekki Phase 1 where a flat went for just N6 million per annum. As bad as the situation was, some positive developments

happened. In the course of the year also, in order to sustain their businesses, investors and developers became, increasingly, creative and innovative, leading to increased investment in student housing, co-work office space, short-let apartments, rent-to-own initiatives, among others. Observably, many big ticket investors including African Capital Alliance, Elalan, Grenadines Himes, etc, scaled down their developments to respond to market demand with smallsize housing units developments in the expensive areas. This explains the development of the Blue Water Lagos in Lekki, The Oceania in Victoria Island and 4Bourdilon in Ikoyi, each offering mostly one and two bedroom apartments. The real estate market, at the moment, is buyers and tenants market and, according to analysts, the market slowdown will persist into the second quarter of next year, more so as it is an election year. Next year, the analysts insist, looks set to be another challenging one for landlords. In the UK, as it was in Nigeria, the lettings market was flat in 2018 with not much prospect of growth next year with policy changes relating to fees and costs due to kick in. PropertyWire, an online residential real estate platform, notes that this is certainly to be the case in London with the latest reports suggesting a slow outlook.

taff Multi-Purpose Cooperative Society Limited of the Nigerian Petroleum Development Company (NPDC) (NPDCSMPCS) and their development partners are perfecting plans to build a mini city that will offer affordable housing to the members of the co-operative. The new housing scheme to be known as Golden City Estate is to be located at Utesi near Benin, in the Ikpoba-Okha Local Government Area of Edo City and is estimated to cost N2 billion on completion. Amos Mabur, president, NPDC- SMPCS, explained that the housing project wouldl be executed in partnership with three development partners that would provide funding and technical expertise while the cooperative provides the land. These partners are Dreamcity Property And Investments Limited, Citiprops Limited and Landscape Transformers Limited. Mabur who spoke at the site re-opening and ground breaking ceremony for the construction of 2-Mega Watts Captive Power Plant in Benin-City, hinted that the estate would feature modern residential areas, hotels, tourism, entertainment and other 21st century and beyond facilities which will be found in the developed world. “The estate is also planned as a self-sustaining mini city where occupants can live, work and play and enjoy all the amenities and services essential for safe and comfortable modern living; some of the state- ofart include 24 hours dedicated electricity and water, Nursery and Primary school as well as Crèche, clinic, pharmacy, fire department, musical water fountain, international 5-Star hotel among others”, he said. He disclosed that a Memorandum of Under-

standing (MoU) has been signed with Highland Energy Solution Services Limited for the provision of a 2 MW Power Plant in the estate for 24 hours. Akinpelu Shogunke, managing director of HighLand Energy Solution Services Limited (HESSL), managers of the project, said the initiative for the power project was taken by the NPDC-SMPCS. He said the power company and consortium partners which include VTT LNG ( West Africa ) Limited, the fuel supplier and gas aggregator is partnering NPDC-SMPCS and others to provide a sustainable electrical energy supply strategy implementing a Captive Independent Electrical Power Concession Infrastructure Scheme at the site. He said the estimated $3.5 million power plant become necessary following the perennial epileptic power supply in the state and Nigeria in general with a view to ensuring that a clean and stable supply of electricity is available on a 24-hour basis weekly. He added that in the Estate, HESSL Consortium shall generate and distribute electric power within the estate to serve all the industries, commercial businesses, recreation centres, educational centres and residents in the estate. “Excess energy generated in the estate shall be made available, particularly to the existing satellite towns and communities that would develop around the estate, through the national electric grid to which the estate grid shall be connected. “This connection to the PHCN grid may also serve as a backup for electricity generated within the estate as and when required; to this end HESSL Consortium shall establish a sound working relationship with PHCN or its approved representative to achieve this purpose”, he stated.

Why Bristow touched down at NIS with roofs over their school

he desired and determination to promote good learning environment and also enhance quality of training have caused Bristow Helicopters Nigeria Limited, an air-shuttle services provider, to touch-down at the Nigeria Immigration Service (NIS) with two classroom blocks and two solar-powered boreholes. Bristow reasons that there is need for good learning

environment for the nation’s immigration officers whom it believes deserves a very conducive training environment. This, the company explained in a statement obtained by BusinessDay at the weekend, was the reason for the donation and the intension to replicate that gesture at at NIS training school in Ahoda, River State. Disclosing this last Friday during the official commissioning, Oladapo Oyeleke,

the managing director of says NIS are key to the nation’s development efforts, hence the projects were strategically conceived to enhance quality of training for efficient service delivery by the service. Specifically, Oyeleke said Bristow’s intention for embanking on the projects was in line with the organisation’s belief and commitment to professionalism through sustained capacity

development. Besides, it is the vision of Bristow to replicate global standard centres across Nigeria Immigration Training Schools as part of their corporate social responsibility. “The face of Nigeria immigration is so conspicuous. They are the last face on your way out of the country and the first face on your way into the country on arrival. “So, it is important that immigration staff acquires

quality training equal to global standard in a conducive environment. For us at Bristow Helicopters, we consider the donation of the classrooms as a way of enhancing our goals, that is, training intellectuals and bringing out the best in our immigration officers”, he said. Though he commended Bristow for the support, Muhammed Babandede, NIS Comptroller General, also appealed to other corporate organisations to emulate the

good gesture. He revealed that the service under his leadership has enhanced both human and capital development for efficient service delivery and results achievements. Specifically, he disclosed that no fewer than 651 cadets were currently undergoing 6-months training programme at the NIS facility in Kano, a figure which he said is the highest in the history of NIS.

Tuesday 25 December 2018

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BUSINESS DAY

What to expect from Nigeria’s housing market in 2019 Endurance Okafor

hether you are looking to invest in real estate, buy or sell a home, get an office space, open a real estate company, or find the perfect rental in 2019, it helps to know what you will be up against. Nigeria’s real estate market is constantly shifting, with investment approaches evolving as consumers’ demand shape the trends and choice of investors in the industry. The real estate experts polled in a BusinessDay survey say small size apartments, co-working offices, community malls and property technology (proptech) are the way to go in 2019, as they are the various areas that meet consumers’ demand. As such, real estate investors who stay rigid and play by old rules may be outpaced by their more flexible, informed and relevant industry counterparts. Olurogba Orimalade, Chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State Branch, said movement into smaller size investments in real estate is already taking place. “Going into next year, small unit investment is the way to go. Even for those that are used to the big size property investments and all of that, if you talk to them now, they are looking at going into this kind of development, Orimalade told BusinessDay. He said this is because the “highest population in Nigeria is within a certain class, so why stress yourself to build to a class that is less,” he queried. The opinion of Modupe Anjous, MD of Rydal Mews Limited, a real estate firm, was not different as she said 2019 will be the year of disruptive innovation in Nigeria’s real estate sector, considering there will be a lot of cohabitation and co-working space as against the

large and more expensive spaces and investments. “There is higher number of millennial who are below 50 years of age in the working industry; definitely you have more young families,” she said. “Whenever two bedroom apartments are developed, it goes faster than three bedroom and the former is less expensive; putting that into consideration, going into 2019, although it is already beginning to happen, smaller spaces, which has been imbibed in other countries, will start happening in Nigeria”, she said. Rising income and low unemployment rates give renters a high spending ability, that is however not the case in Nigeria considering the country’s minimum wage has been constant for the last 8 years and recent figures by the National Bureau of Statistics (NBS) shows that unemployment rate was up 23.1 percent in Q3 2018.

As such, investors and developers see a lot of Nigerians relocating to smaller units instead of the normal 2-3 bedroom apartments owing to insufficient income and declining purchasing power. Nigeria with the highest population in Africa has one of the widest housing deficits in the region, amid high mortgage rate and insufficient income. The commercial office space is also not left out in the forecast by the industry experts. For the sub-sector, co-working space initiative is the direction the players are projecting as the future for the country’s commercial office space considering that it is less expensive. With evolving technology, more people tend to imbibe the idea of working from home, and as such large office space will soon become a thing of the past. Responding to the expectations, Adeniyi Akinlusi, President of Mortgage

Banking Association of Nigeria (MBAN) and CEO of TrustBond Mortgage Bank, said this generation does not mind sharing things coupled with the fact that sharing is more affordable than a single person occupying large spaces. “Even those who want to live large and occupy big spaces can no longer afford it; so a lot of people will share cost by co-working and living in small unit spaces going forward,” he said. For the retail sub sector, various stakeholders see community malls as the way to go and not the 20,000 square metres malls which have above 50 percent vacancy rate, as BusinessDay survey reveals. Dolapo Omidire, Founder of Estate Intel said “definitely smaller malls are going to be constructed.” Technology is also seen as a disruptive agent in retail as more consumers are now shifting their shopping online, and as a result more online shops and

vendors are springing up in different online platforms. The incentive of delivering the products shopped online to the consumers’ door step has made online as a shopping destination more attractive to Nigerians, but the conventional malls still remain preferable to mostly the elderly and not the young, as the latter makes more use of smart phones that the aged. Technology is also projected by industry experts as a factor that will impact Nigeria’s real estate sector going into 2019. Already the use of the internet in searching for properties to acquire or rent is a platform that has carved a niche for the companies in that space. The online platform is welcomed by many players in the industry as it has made transactions among developers, property owners, prospective buyers, and potential tenants easier, compared to the cumbersome processes witnessed few years ago. Some of the benefits of the online property platform include the fact that it is time and money saving as against the conventional moving from one location to another in search for properties. This sub-sector of the property industry has given birth to firms like Propertypro.ng (formerly ToLet.ng), Hotels.ng, myPadi.ng, and Nigeria Property Centre. Through the online platform they are able to render different services like leasing of landed property, house & office acquisition, hotel accommodation, and provision of hostels for university students. “Think back to the 80s and 90s; if you were going to purchase a property, you would spend many days trying to find a decent agent who will charge you high fees to take you from property to property in only a few locations -meaning he was limited,” Yemi Johnson, the COO of Hotels.ng told BusinessDay.

How efficient land administration boosts Ogun property market, economy …Homeowners Charter is state’s devt game changer CHUKA UROKO & RAZAQ AYINLA

ike the 1992 revolution in land administration that has made Dubai a global real estate destination, efficient and cost-effective land administration in Ogun State has given the state’s property market and economy a big boost in the last five to six years. Like Dubai which decided to allow foreign investors freehold on land in order to attract more of such investors, Ogun State in 2012 launched discounted payments for certificate of occupancy, land survey and titles documentation which had been major obstacles to home ownership in the state. The discounted payment, which allows would-be owners to pay only N95,000 by installments over nine months, down from N450,000, was made all the more feasible by the introduction of what the state’s ‘Homeowners Charter’ that has become a major

game changer in the state’s economic development. The Homeowners Charter’ presents an opportunity for all those who have built on private land without obtaining building plan approval and are, therefore, unable to apply for a Certificate of Occupancy to regularise their status at a huge discount on what they would, ordinarily, have paid. The Charter is also for those who have built illegally on land that belongs to the state government, OPIC or Housing Corporation who, for years, have lived with uncertainty on whether government would eventually repossess the land. Such people are being offered an opportunity, through the Charter, to formalise their ownership, also at a huge discount. Ogun has also launched its Geosystem Information Service (GIS) and, according to Ronke Sokenu, commissioner for Urban and Regional Planning, “a lot of things have been done on this and one good thing that is up and run-

ning is documentation which means a lot of documents including Cof O and surveys have been uploaded into the system”. “This also means that when people come to do searching, instead of flipping through the files, they just press the button and that is done. Our target is also to create a website where land buyers can access information online and also pay online. This reduces interface with government officials and also minimizes corruption”, she added in an interview with BusinessDay. What these actions by the state have helped to do is to empower property owners in the state who can now trade with their property by using the title documents to secure credit facilities from lenders. And because they are relatively affordable and easy to access, more property owners are going for them. Because of the discounts which range from 40 – 80 percent on land allocation for industrial, agricultural, reli-

gious and educational uses, Ogun has become an industrial hub which has helped its economy significantly with an internally generated revenue size that has ranked it high among its peers. “When it comes to the issue of where people go next for citing industries, we are number one choice. If you look at the records on the entire FDI into the country in the last couple of year, about 35 percent came into Ogun alone. This information came directly from the office of the statistician general of the federation, that is, the Nigerian Bureau of Statistics (NBS)”, Sokenu explained. Besides the many religious bodies which have their headquarters, businesses and praying grounds in Ogun, the state is also the new destination for many investors. At the Shagamu Interchange, there are many industries springing up, including Flour Mills, Olam, Nestle, Honeywell, CDK which is the second largest

sanitary ware products manufacturers in the world, etc. “We are taking advantage of our nearness to Lagos, knowing that Lagos is landlocked. More and more investors are coming in”, Sokenu enthused. The implication of what is happening in Ogun is that it is possible for all the states of the federation to depend less on oil revenue by just taking a major decision that can bring a positive turnaround in their economy. Each state should be able to identify its area of comparative advantage and leverage on it. It is estimated that 30,000 title documents have been processed so far and distributed to home owners in Ogun. BusinessDay findings reveal that 1,000 C of O were distributed to home owners on monthly basis up to June 2017. This was increased to 2,000 monthly in order to clear existing backlog. Adekunle Adeosun, a member of the state’s Economic Team and chairman of

Ogun State Internal Revenue (OGIRS), noted that the state has done more than expected under the scheme. “So far, there has been consistency in the distribution of C of O and the number has now moved up from 1,000 to 2,000 monthly in order to cover large number before this administration hands over to the next one.” Confirming this, Tunde Adeyemo, CEO, Pelican Valley, told BusinessDay that Homeowners Charter has really helped prospective and existing land and home owners in the state to regularise and process afresh their C of Os and other documents that had been difficult to secure before now. “Since C of O, land survey and other relevant land title documents became easier to secure under Governor Amosun, there has been much economic value on landed property and more buildings and construction sites are springing up, testifying to easy of doing business in Ogun”, Adeyemo added.

BUSINESS DAY

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Tuesday 25 December 2018

Markets + Finance ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Insurance firms’ low profitability triggers continuous investors’ apathy BALA AUGIE AND OLUWASEGUN OLAKOYENIKAN

igerian insurers have a very weak price to book ratio, which measures the stock price against the value of assets minus liability. The reason for weak valuation is because equities investors are not willing to pay more for liquid assets of insurance companies because these firms are beleaguered by low profitability, poor corporate governance and apathy towards the industry. The price-to-book

(P/B) ratios of most of the insurance companies listed on the Nigerian Stock Exchange (NSE), excluding those of Nem Insurance Plc and Axa Mansard Plc, are trading at less one book value, indicating investors are unenthusiastic about the stocks. Little wonder the stock price of most of them are stock at N0.50- except AXA Mansard, Continental Re and NEM Insurance- while others have been trading below N0.50 since NSE removed cap. “Investors will be willing to pay more for the shares if they perceived the company as being profitable,” said an industry expert, who doesn’t

want his name mentioned. “Those with strong profitability and corporate governance are not stuck at N0.50,” said the analyst. Insurers in Africa’s largest economy have not been growing premium income and investment income at a blazing speed that will help augment a weak underwriting income, hence undermining net income and return on equity. Markets and Intelligence data shows that the cumulative average return on equity of 19 largest listed insurers fell to 7.47 percent in September 2018 from 7.78 percent as at September 2017. Drilling down the figure

shows Aiico Insurance’s return on equity fell to 13.88 percent in September 2018 from 22.97 percent the previous while net income dipped by 24.80 percent same period. Linkage Assurance return on equity reduced to 0.40 percent in the period under review from 14.31 percent as at September 2017 while net income dipped by 97.30 percent in the period under review. The weak profitability explains why the insurance companies do not pay robust dividends to their shareholders as a way of giving back to their owners, a development which made existing investors apathetic and dis-

BD MARKETS + FINANCE Analysts: BALA AUGIE

couraged potential investors from taking new offers. While Nem Insurance Plc has a P/B ratio of 1.2472 as at the close of business on Friday, November, 2018, Axa Mansard Insurance, the biggest insurance company by market capitalisation, posted a P/B ratio of 1.0249. The P/B ratio of Continental Insurance Plc, another highly capitalised insurance company, stood at 0.9144 the same day. Apart from weak valuation of the stocks shown by the companies’ P/B ratios, their shares have been slipping in the last five years. For instance, the shares of Axa Mansard have lost as much as 19.18 percent in value to

N1.98 per share; Niger Insurance shed 56 percent; while those of Cornerstone Insurance and Mutual Benefits Assurance depreciated by 60 percent since December 2013, respectively. Most of the stocks have their shares currently trading below 50 kobo at the local bourse. In fact, the shares of companies like Niger Insurance, Regency Alliance Insurance, Universal Insurance Company fell steadily to 20 kobo from 50 kobo after the NSE officially reviewed its 50 kobo minimum floor policy for stocks trading on the exchange. This is an indication that the stocks were trading above their intrinsic values.

Tuesday 25 December 2018

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“… if the Land Use Decree is implemented in such a way as to serve the interest of the privileged, then our society must be prepared, in no distant future, for increased cases of armed robbery and the possible introduction of a western type of kidnapping and demand for huge ransom.” P.A Oluyede, 1989

8. The Act promotes land speculation as the Act is silent on the aggregate holding an individual or corporate organization can acquire in this country. an individual can acquire the maximum allowed under sections 6 and 34 of the Act in each of the state and Abuja if he has the means. The result of this flaw in the Act has been a high concentration of land in the hands of a few well connected with the government. This denies a large population of the peasantry access to land 9. The Act has led to drastic increase in the price of land. Apart from the increase introduced by land speculators. The Act itself helps the government to compulsorily acquire land and still end up selling it to the people at exorbitant prices. Such practice will only make the rich richer and the poor poorer.” It has been said that a society that is serious about alleviating poverty will work towards putting a proper land administration system in place. Therefore, if Nigeria is serious about poverty alleviation there is urgent need for the review of the 1978

Locus Classicus

D & C Builders v Rees [1966] 2 WLR 28 Court of Appeal

r Rees contracted out a building work in his house to D & C Builders. The work was valued at 746 pounds. Mr Rees deposited on account the sum of 250 pounds. Due to the deposit, the company reduced the bill by 14 pounds – leaving a balance of 482 pounds. After completing the work, the company wrote to Mr Rees on several occasions demanding for the balance of 482 pounds. However, Mr Rees refused to pay. It must be noted that there was no complaint on the work done by the company as at the time the company was demanding for the balance. At the time the company was pushing for the money, the company was in

Do you know your obligations under the National Library Act? o you know that if you publish a book in Nigeria the National Library Act places an obligation on you? Also, failure to do what is stated in the law attracts a penalty. The necessary provisions of the Act are reproduced below.

tenants stopped paying ground rent. 7. section 28, sub-section 4 clearly states that ‘the Military Governor shall revoke a Right of Occupancy in the event of the issue of notice by or on behalf of the head of Federal Military Government if such notice declares such land to be required by the government for public purposes. What this means in practice is that action by the relevant state Governor is indispensable. As experience has shown, some state Governors have invoked this subsection to play politics by creating problems for the Federal Government whenever the latter acquires land for Federal projects. This situation is justified by the squable between the then Oyo State Government and the Federal Government. The Oyo State Government was alleged to have sued the Federal Housing Authority and the Minister of Housing for trespass and for illegal entry into the land for its housing projects in Oyo town and Ogbomosho. The Oyo State Government had earlier demolished 36 units of Federal houses.

dire need and even at the verge of collapsing. This was known to Mrs Rees. The company called Mr Rees home and the call was picked by Mrs Rees. She complained about the work and said she would pay the sum of 300 pounds in satisfaction of the outstanding sum of 482 pounds. The company refused and stated that the sum of the 300 pounds will be collected while the balance is expected to be paid within a year. Mrs Rees insisted on paying 300 pounds as full and final payment when the company went to their house to collect the money. She insisted that the company must write ‘in completion of the account’ on the receipt to be issued. She stated that if it is not written she

Odunayo Oyasiji

Land use act as the reason for many problems we presently face as Nigerians he above is already happening. The land Use Act 1978 seems to have created different problems. Some of the problems that have been identified by different writers and legal practitioners are – “1. The Act is responsible for the fall out in the Niger Delta area - in 1978, the military government of General Olusegun Obasanjo enacted the Land Use Act which authorized the public collection of land rent. In practice therefore, instead of revenues and royalties including oil incomes generated from land going to the people, the benefits are expropriated by the government, its officials and their cohorts 2. in western Nigeria, the Act has served to increase the marginalization, dislocation and fragmentation of small agriculture holdings and has also rendered access to land more difficult for women. 3. It has not improved security of land tenure and has therefore only intensified environmental degradation. 4. The Act constraints the smooth process of land titling, assignment and foreclosure. It has introduced bottlenecks in housing delivery in the country 5. By subjecting all transactions without exception to consent the Act has really gone to the extreme in its attempt to regulate and control land transaction. There is no reason why mortgage to banks and other financial institutions should not be exempted from the consent provisions of the Act. 6. The Land Use Act was ambiguous in key respects as to its implications for the continued validity of rural tenures and introduced considerable confusion and uncertainty. In particular, tenancy became insecure with the deterioration of relationships between landowners and tenants as many

BUSINESS DAY

will not pay anything. The company being in dire need of money reluctantly agreed to write this on the receipt but indicated that he still intends to recover the balance because the money paid does not even cover the cost incurred on the work. The company subsequently instituted an action to recover the balance. The Rees placed their defence on what was written on the receipt and claimed that they have fully paid the company. The court held that they could not rely on what was written on the receipt as there was no genuine agreement to accept a lesser sum and that Mrs Rees took advantage of the fact that the company was in dire need of money.

Section 4(1)-(4) states that(1) The publisher of every book published in Nigeria shall, within one month after the publication, deliver at his own expense to the National Library three copies of the book, two of which shall be kept in the National Library for permanent preservation and one of which shall be sent by the Director to the Ibadan University Library. (2) The copies of the book delivered to the National Library under subsection (1) of this section— (a) shall be perfect copies of the whole book, with all maps and illustrations belonging thereto, finished and coloured in the same manner as the best copies of the book are published; and (b) shall be bound, sewed or stitched together and in the best paper on which the book is printed. (3) Where any printed matter (other than matter of such descriptions as the Director may specify from time to time) is published by or on behalf of any department of Government of the Federation or of a State, it shall be the duty of the official in charge of the department to deliver forthwith to the Director for the purposes of the National Library— (a) 25 copies of the publication, if it is published by or on behalf of a department of Government of the Federation; or (b) ten copies of the publication, if it is published by or on behalf of a department of Government of a State, or such smaller

numbers of copies as the Director may determine in any particular case. (4) If a publisher fails to comply with any provision of subsection (1) or (2) of this section, he shall be guilty of an offence and on conviction shall be liable to a fine not exceeding N100; and the court before which he is convicted may in addition order him to deliver to the Director three copies of the book in question or to pay to the Director the value of those copies. The summary of the above is that the publisher of a book is under an obligation to submit exact copies of the published books to the National library at his or her own cost within one month of its publication. Failure to do so will attract a fine not more than 100 naira. Also, the court may in addition to the fine ask him to deliver three copies of the book or the cash value of the three copies to the director of the National Library. For better understanding, section 4(7) defines what is meant by book. It reads(7) In this section “book” includes— (a) all literary works such as books, pamphlets, sheets of music, maps, charts, plans, tables and compilations; (b) dramatic works; (c) collective works such as encyclopaedias, dictionaries, year books or similar works, newspapers, magazines and similar periodicals; (d) any work written in distinct parts by different authors or in which a part or parts of work of different authors is or are incorporated, and every part or division of such a work; and (e) all forms in which documentary or oral records are published; The above covers a lot of things. Therefore, book under this Act is not limited to textbooks.

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Thursday 27 December 2018

2019: Afenifere denies endorsing Buhari … Describes Fasanmi’s group as impostors Ibadan. “We have decided to host the whole Yorubaland in Ibadan on January 29, 2019. It is to proclaim the support of the Yorubaland for President Muhammadu Buhari in 2019. “It is also to tell the whole world that Afenifere created by Awolowo before his death is still intact as a progressive movement and any Afenifere person who is not in the progressive is not part of us. “We are now telling the Yoruba people and the whole world that we are going to support President Muhammadu Buhari and Vice President Yemi Osinbajo come 2019 Presidential election”. But speaking in an interview with BusinessDay, Monday, Fa-

Iniobong Iwok

head of the 2019 general election, leader of pan -Yoruba socio political group, Afenifere, Ruben Fasoranti has denied endorsing incumbent President Muhammadu Buhari for a second term in office. Recall that last week, a splinter group of Afenifere, headed by former Senator, Ayo Fasanmi, reportedly endorsed President Buhari for second term in office. The group’s Spokesman, Biodun Akin-Fasae, stated this after a meeting of delegates and elders from the six Southwest states held last Thursday at the House of Chiefs,

Buhari

2019: Okowa preaches peace, condemns ritual, political killings Francis Sadhere, Warri

s we approach 2019 and the yuletide periods, the Delta State Governor, Senator Dr Ifeanyi Okowa has condemned the rate of ritual killings and political killings going on in Nigerian. He therefore, called on the people to reconcile themselves with God and their neighbours. The governor said this at the Delta state festival of Nine Lessons and Carols christened, “an Evening of Praise” organised by the Ministry of Information, The Pointer Newspaper, Delta Broadcasting Service, Asaba and Warri in conjunction with office of the Executive Assistant to the Governor on Religious Matters at the Stephen Keshi Stadium, Asaba.

Okowa

He condemned ritual killings and called on politicians against political killing ahead of 2019 general elections. The governor said, “reconciliation with God is the reason for the season which is about our Lord, Jesus Christ. “ “Once you are reconciled with God, you will reconcile with man; you will stay away from sin and the blessing of God will flow in you,” Governor Okowa said, adding, “it is time to prepare a room in your heart for Jesus Christ because, once you have done that, you will receive peace.” Chairman, Christian Association of Nigeria (CAN), Snr Apostle Sylvanus Okorote in a sermon asserted that, “God as the author of peace, reconciled man to Himself through His son, Jesus Christ; once you are reconciled with God, you are a new creature.”

soranti, distanced his group from the purported endorsement, stressing that the group has not met to at any point to discuss on the endorsement of Buhari for second term. Fasoranti described the Fasanmi-led group as imposters, stressing that the group was been sponsored by some individuals for their selfish gains. “That report is not true, I am the leader of Afenifere, there has not been anytime that we met to adopt Buhari for 2019 election. Fasanmi and his group are an impostors, where have he or his group been all this while? The way they are going about it shows that he is sponsored by some individuals for their personal gains”, Fasoranti said.

Udom calls for prayers ahead of 2019 elections ANIEFIOK UDONQUAK, Uyo

overnor Udom Emmanuel of Akwa Ibom State has called for prayers to ensure a peaceful election as the preparations for 2019 polls begin to gather momentum; The governor says the government will continue to rely on prayers from the church for peace, progress and continued prosperity in Akwa Ibom State. The call for prayers comes on the heels of fears in some quarters that that politicians would desperate perpetrate violence in a bid to win the elections. Godswill Akpabio, former senate minority leader had been quoted as promised to unleash Warsaw in Akwa Ibom State, a development which had attracted condemnations from many quarters. Speaking at at a thanksgiving service in honour of commissioner for information and strategy, Charles Udoh and his wife, Regina at St. Mary’s Catholic Church, Obio Offot, Uyo the governor appealed to the church to pray that only God fearing individual would be given the opportunity to govern the state come 2019. Represented by the Deputy Governor, Moses Ekpo, the governor expressed the optimism that as a state named after God, only the will of God’s will prevail on who leads Akwa Ibom state . He prayed God to continue to guide the newly initiated member of the St John’s Knighthood, Charles Udoh (KSJ), and strengthen him in his desire to expand his sphere in his service to God and humanity. “I want to thank the church for giving us the opportunity for this thanksgiving, and I want to assure the church that government will

Udom

continue to rely on the church to continue to pray for peace and prosperity and peaceful elections in 2019.’’ “We sincerely believe that as a state named after God, only those who are God fearing will be given the opportunity to serve Akwa Ibom come 2019. I am extremely happy to be opportune to worship and take part in the thanksgiving in this church. God will continue to guide you,’’ he said. In his remarks, Charles Udoh said his initiation into the St John International commandery, 450, Uyo was to an acknowledgment of God’s mercy and love and pledged to continue to serve humanity by doing good to all manners of people. Udoh who recalled his miraculous survival in the 2016 Reigners Bible Church collapse in 2016 pledged to continue to contribute to the development of the society with sincerity of purpose and with a clear conscience adding that he would stay in close bond with God who as from childhood has proven

to be his most reliable rescuer. “I am a living testimony of God’s goodness. I have cheated death several times. God wanted me to take a spiritual step closer to him before giving me this chance of thanksgiving. The journey of my life through the reigners church and other traveils of life truly revealed God’s love for me,” he said. Leading the thanksgiving mass, the Parish priest, Very Rev. Ernest Udoh charged the new Knight to go back to the virtues of knighthood which could be found in the fruits of the spirit which include wisdom, joy, peace, understandings etc. “The world and the church need wisdom, understanding, love, joy, peace. By virtue of your office, you must fulfil your duties to the state. Read the scriptures to remind yourself and carry out some self assessment to be sure you are constantly on track. Knighthood is an elites organization, only second to priesthood in learning and character. Your duty is to continue to defend the church to make heaven,’’ he said.

Thursday 27 December 2018

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Nigeria’s next president must take proactive steps on business environment GBEMI FAMINU

ith the 2019 g e n e ra l e l e ctions around the corner, whoever becomes Nigeria’s next president must look at the ease of doing business again. According to the 2019 World Bank’s Doing Business Index, Nigeria ranked 146th out of 190 countries, scoring 52.89 out of 100 points. After the presidential election, investors will be looking at pronouncements from the next president and what he/ she has in stock for the country in terms of improving the business environment. Realities of today show that the number of taxes paid by businesses in the country has increased from 37 to 54 in the last three years, owing to states’ new drive for internally generated revenue (IGR). Drop in monthly federal allocations due to oil price turmoil has pushed states into embarking on desperate revenue drive, but this is not without costs to businesses, especially the micro, small and medium enterprises (MSMEs). Many taxes, levies and fees charged by the federal government are duplicated by states and local governments. Local governments in Lagos still ask businesses to pay television and radio taxes, which make little or no sense. Also, the ports in Lagos are increasingly becoming a clog in the wheel of progress. A recent research report conducted by the Lagos Chamber of Commerce and Industry (LCCI) shows that at least 5,000 trucks seek access to Apapa and Tin Can ports in Lagos every day, despite that the two ports were originally meant to accommodate only 1,500 trucks. The report shows that Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in nonoil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of Nigerian ports. The LCCI report notes that 25 percent of cashew nuts exported from Lagos to Vietnam in 2017 went bad or were downgraded owing to delays at Lagos ports. Similarly, only 10 percent of cargoes are cleared within the set timeline of 48 hours, while the majority of cargoes take between five and 14 days to clear. The report further states that some cargoes take as many as 20 days to be cleared at

Buhari

the ports. More so, the number of government agencies at the ports is now 12 rather than eight, with each demanding inspection and associated fees. Speaking on these, Babatunde Paul Ruwase, president of the LCCI, advised the federal government to begin reforms on the ports. “There is a need to extend reform action plans of Presidential Enabling Business Environment Council (PEBEC) to Eastern ports, air and land ports,” Ruwase said at a press conference in Lagos. “The concessioning of Onitsha seaport should be finalised, while government should improve the security situation along and within the Warri port in order to ward off militants and touts. Stakeholders request that government should approve and publicise a bouquet of incentives to importers and exports that patronise ports outside Lagos,” he added. Many Nigerians may think that Apapa and Tin Can ports crises do not affect them, but the fact is that every Nigerians bears the cost in one way or another. First, raw materials arrive factories late, after manufacturers spend huge demurrage charges. These manufacturers, who are typical profitdriven enterprises, transfer the costs to the consumers. In some cases, the goods are not sold and are kept in warehouse as inventories. Either of the two involves economic costs. Also, exporters, who should repatriate dollars into

Atiku

the economy, are frustrated by Apapa. This further narrows the contribution of the non-oil sector to the foreign exchange, thereby weakening the Naira further. Although Nigeria is Africa’s largest economy, it has not done well enough to attract investors. Some investors are withdrawing their investments, taking them to other African countries. The exit of OXL, a trading website, earlier this year is still fresh on Nigerians’ memory. OLX, which had been operating in the country since 2012, offered Nigerians a platform to buy and sell second-hand items. The site had more than a million second-hand items posted on it in 2016, but it still struggled to remain profitable in the country’s difficult operating environment, forcing it to pull out. Most businesses, especially MSMEs, are the worst hit as they are more susceptible to the vagaries of multiple taxation and regulatory gridlocks. An entrepreneur told BusinessDay that she applied to register a product with the National Agency for Food and Drug Administration and Control (NAFDAC) for over eight months but could not obtain any certification, owing to unnecessary demands by officials of the body. This is worsened by the fact that even the Standards Organisation of Nigeria (SON) will not accept tests done by NAFDAC and vice versa. Although the Muhammadu Buhari/Yemi Osinbajo adminis-

tration has given attention to the ease of doing business through various implemented reforms and policies, what it has done is not effective enough. There are still various things that the federal government can do to improve the ease of doing business in Nigeria, say analysts. These include improving the infrastructure and transportation system as well as reforming the taxation system. Infrastructure is one of the major drivers of any economy. Analysts say good infrastructure boosts businesses and raises the gross domestic product (GDP) , creating jobs and economic prosperity. However, Nigeria lacks the necessary infrastructure needed to grow businesses, especially steady power supply and developed rail and water transport system. According to USAID’s energy sector review, Nigeria’s growth and economic development is limited despite its large economy, which is attributed to constraints in the power sector. Nigeria has the ability to generate 12,522 megawatts (MW) of electric power from existing plants, but it is only able to distribute around 4,000 MW. It is also yet to tap into other forms of energy. According to the South Africa’s Ministry of Energy, the country’s total domestic electricity generation capacity is 51,309 megawatts (MW) from all sources. About 91.2 percent or 46,776 MW comes from thermal power stations, while

4,533 MW or 8.8 percent emanates from renewable energy. Much of this power is transmitted and distributed by Eskom. South Africa has a population of 57 million while Nigeria is estimated at 198 million, according to the National Population Commission. “It is no more news that manufacturers in Nigeria currently selfgenerate as much as 13,000MW through alternative sources of energy in order to stay afloat. In fact, cost of alternative electricity generation alone constitutes about 40 percent of our production cost. With such high costs, made-inNigeria products will hardly be competitive,” Frank Jacobs, immediate past president of MAN, said in Lagos in June 2018. In fact, manufacturers have given up on power distribution companies (DisCos), prompting them to form a corporation known as MAN Power Development Company to cater to their energy needs. Many firms now generate power for themselves with the use of generators or solar energy, but these in turn erode their margins. Despite having the largest road network in West Africa, Nigeria’s transport system is not encouraging as major transport systems are mostly in dilapidated condition with bad roads, non-functional rail systems, badly maintained boats, ferries and airplanes causing panic and prolonged movement. Poor infrastructure increases logistics costs of firms in the country, raising their cost of production and causing losses, especially in common cases of accidents and thefts. Funding is also a major hiccup. Businesses require funding either in the form of loans or grants. Nigerian banks are usually reluctant to lend to businesses especially MSMEs. Those willing to give out loans charge high interests that are usually difficult for firms to pay. The results of survey conducted by MAN shows that the average interest rate banks charged manufacturers in the second half (H2) of 2017 was 23.05 percent as against 22.65 percent in first half (H1) of 2017 and 21.4 percent in H1 of 2016. Analysts say the next president must practically look into improving the ease of doing business in order to make the economy more attractive for investors. Analysts are keenly watching the elections and weighing the impact of the result on portfolio and direct investors.

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Declining oil price puts more pressure on naira DIPO OLADEHINDE & BUNMI BAILEY

utlook for naira dims as analysts anticipate pressure on the local currency this week due to falling oil prices amid another decline across global stock markets. Brent crude futures were down 37 cents at $53.45 a barrel as US crude futures lost 72 cents, or 1.6 percent, to $44.87, falling below $45 for the first time since July 2017. The price of oil has already fallen by about 40 percent from October highs to its lowest since the third quarter of 2017, as investors have grown increasingly wary of the impact to global growth, and crude demand, from an escalating trade dispute between the US and China. Naira eased to 364 per dollar on the Investors and

Exporters Window according to data from FMDQ as of December 24. Ibrahim Tajudeen, head of research, Chapel Hill Denham, said the speculative movement in crude oil prices and production was what was happening in the exchange rate parallel market. “I think the pressure is linked to the oil price outlook because the moderation of oil prices is an indication of reduced Foreign Exchange (FX) inflow for Nigeria in terms of export earnings, and that will have further negative impact on FX reserves,” Tajudeem said. Lukman Otunuga, a research analyst with ForexTimes Nigeria, said the naira might struggle to reap the full benefits of a weakening dollar due to heavily depressed oil prices. “With oil prices sinking to a fresh yearly low, this not only impacts government

revenues, but economic growth and the nation’s ability to enact the 2019 budget which pegged the Oil price at $60 per barrel, Otunuga said by mail. The research analyst at ForexTimes Nigeria noted if falling reserves result in the CBN being unable to defend the naira, it would weigh heavily on the local currency. Johnson Chukwu, CEO at Cowry Asset Management Limited, supported the view that the drop in crude oil price was having a negative impact on the naira. “It implies that foreign reserves will come under pressure. So, you are seeing elevated demand for FX than people who want to meet their obligation before the reserve reduced significantly,” Chukwu told BusinessDay on phone. Ayodeji Ebo, managing director at Afrinvest Securities

Limited, does not support the view that crude oil prices attributed to the pressure on the naira, but however believes that the election season is what is putting pressure on local currency. Keeping the naira as strong as possible against the dollar is popular in Nigeria, which imports the bulk of its needs from other countries. That has been a priority for most central bank governors whose fixation on exchange rate stability is also in recognition of its impact on price stability, a core mandate of any central bank. With two currency devaluations under his belt, the current CBN, Godwin Emefiele, is prepared to fight off another naira depreciation in the months leading up to the general elections in February 2019, even though the rate of foreign capital outflows make it a daunting task.

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Tuesday 25 December 2018

Andrew Alli joins SouthBridge as CEO of the group

outhBridge Group announces that Andrew Alli, former CEO of Africa Finance Corporation, will join and lead the SouthBridge group as CEO. A dual citizen of Nigeria and the UK, Andrew is a Chartered Accountant, who holds a BEng in Electronics and Electrical Engineering from King’s College, University of London, and an MBA from INSEAD. After a decade at the International Finance Corporation (IFC) in different positions including country manager for Southern Africa and Nigeria, he was appointed CEO of the nascent Africa Finance Corporation, which he built into a robust DFI focusing on African infrastructure, natural resources and heavy industry sectors. During his tenure as CEO, AFC made cumulative investments of over $4 billion

Illegal bunkering: Navy hands over four suspects, vessel to EFCC INNOCENT ODOH, Abuja

T L-R: Olubayo Adekanmbi, chief transformation officer, MTN Nigeria; Ugonwa Nwoye, customer services executive, MTN Nigeria; Kunle Adebiyi, sales and distribution executive, MTN Nigeria; Lynda Saint-Nwafor, chief enterprise business officer, MTN Nigeria, and Cyril Ilok, compliance executive, MTN Nigeria, at the grand finale of the MTN Season of Surprises initiative, following 20 days of brightening lives across Nigeria.

CCSJ convener praises Buhari’s proposed tenure extension of Ibrahim Idris as IGP

oodluck Obi, convener, Centre for Civil Society and Justice (CCSJ), has commended President Muhammadu Buhari for the proposed tenure extension of Ibrahim Kpotun Idris, the Inspector General of Police (IGP), for another six months. Obi, who reacted to the news of Idris’ extension of service in a statement in Lagos on Monday, maintained that by available records, the IGP deserves the privilege, adding that Buhari’s action should be commended. The CCSJ boss stated that Idris, during his tenure so far, had garnered a lot of achievements, stressing that he had contributed a lot to the success of the current administration with the several innovations he brought into crime fighting and policing in the country. He stated that the IGP

had been able to oversee more than 1,300 police stations, 370,800 men and women, 36 state commands, 12 Zones and seven administrative organs of the Nigeria Police Force with effortless excellence. He said Idris was selected from among the eligible senior police officers because of his credibility, stressing that he was the only one who passed the integrity test secretly conducted by the Presidency and had completely repositioned the Force to be among the most efficient in nation’s recent history. Obi stressed that Idris had also improved the lot of policemen through regular training, came out with several policies to ensure safety of Nigerians at all times, even as several high profile criminals had been arrested and brought to book during his tenure.

He added that the welfare of members of the Police Force has improved tremendously under Idris, even as there had been numerous promotions as well as the recent increase in salaries of policemen. Obi maintained that the next six months would be very critical in the life of Nigerians as the elections draw nearer, stressing that the Federal Government needed a trusted hand like Idris, who had achieved everything that needed to be achieved in his career, to head the police force between now till the hand over in May 29 next year. He urged Idris to justify the trust of President Buhari in him by ensuring that he remained impartial, especially in handling issued relating to the on-going political campaigns by political parties and the elections proper.

in 30 African countries and achieved the second highest credit rating for an African lending institution. Donald Kaberuka, chairman/managing partner, said: “I am very excited to welcome Andrew to SouthBridge. An excellent pedigree, first-class rigorous management, business ethics and acumen, commitment to African entrepreneurship and continental champions. At SouthBridge, he will build on his phenomenal record at the AFC to provide the leadership for the next level. “ Lionel Zinsou, chairman/ managing partner, said: “We have known Andrew for many years and could not be more pleased to have him join us. His proven track record at the head of a large banking institution and his vast experience will benefit SouthBridge significantly.”

he Nigerian Navy has handed over four persons and a vessel allegedly involved in illegal oil bunkering to operatives of the Economic and Financial Crimes Commission (EFCC), Benin zonal office, for further investigation and possible prosecution. A statement issued by Tony Orilade, acting head of media and publicity of the Commission, made available to BusinessDay on Monday, disclosed that the suspects: Promise Onate, Emonefe Stanley, Samson Obaje and Peresey Friday

were onboard the vessel, MV Enterprise, when they were rounded up by men of the Nigerian Navy, NNS Delta, on December 4, 2018, at Nana Creek Escravos, Delta State. They were arrested on the suspicion that they were conveying Automotive Gas Oil, AGO, without any valid approval. Captain P. G. Yilme, who represented the NNS Commander at the handing over in Warri, Delta State, said, “After forensic analysis of the product by officials of Department of Petroleum Resources (DPR), the result revealed that the product onboard were poorly refined AGO.”

Shell acquires FID on new gas project DIPO OLADEHINDE

… targets 300mscf for domestic market

n what stakeholders described as a game changer, the Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State. The project is regarded as a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation. Osagie Okunbor, managing director of SPDC and country chair, Shell Companies in Nigeria, said the announcement was “good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints.” At peak production, the project is expected to produce 300 million standard cubic feet (mscf) of gas per

day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the ObiafuObrikom-Oben pipeline network. Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.” The SPDC’s director and general manager (projects), Toyin Olagunju, said the Assa North project would be a significant contribution to the GDP growth in Imo State and across Nigeria, as the gas produced would be utilised

in-country across diverse industries, while providing economic opportunities for local communities. Just three weeks ago, the SPDC JV signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43mscf of gas per day to support the 140mw Aba Integrated Power plant at Ossisioma in Abia State. By the agreement, SPDC will supply gas from its joint venture gas plant in Imo River traversing Abia and Rivers states to the power producer, GPAL, via a gas pipeline network, which is already installed. SPDC is the operator of a joint venture involving the NNPC, which holds 55 percent; Shell 30 percent; Total Exploration and Production Nigeria Limited (TEPNG) 10 percent, and Nigerian Agip Oil Company Limited (NAOC), 5 percent.

Tuesday 25 December 2018

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Nigeria’s lip service to diversification heightens economic woes on foreseeable oil run off HARRISON EDEH, Abuja

igerian government’s continuous lip service on economic diversification is worsening its economic woes, as the oil, which is the mainstay of the country’s economic base, will soon run off in a foreseeable future. The Federal Government has persistently relied on hydro-carbon resources as a major driver of its annual budgets, which has continuously exposed the economy to several shocks such as the global oil price volatility, adjustments in OPEC quota and vandalism of the oil and gas assets in the oil rich Niger Delta. Apart from the afore mentioned risks, the recent disclosure by the Department of Petroleum Resources (DPR) that the current reserves depletion rate of Nigeria oil reserves is 1.93 percent, revealing that on the average, Nigeria pro-

duced 1,973,995 barrels of oil per day (bpd) as at the end of June 2018, exposes high risk dependency on oil resources. Also, Nigeria’s 2.5 million barrel daily production target has also been impeded by the recent OPEC’s meeting in Vienna, Austria, as Emmanuel Ibeh Kachikwu, Nigeria’s deputy petroleum minister, has confirmed that Nigeria won’t enjoy any exemption as it did not request for any exemption. Kachikwu in Vienna at the recent OPEC meeting said, “Collectively, OPEC and their non-OPEC allies agreed to cut their outputs by 1.2 million barrels per day (mbpd), with OPEC countries accounting for 800,000bdp of the cut, while non-OPEC will cut 400,000bpd.” Against this backdrop, industry watchers have expressed concern that the government has no clear-cut diversification plan, as it continuously hinges its budget on oil revenue resources.

“Am yet to see any clearcut policy that is deliberately targeted at pushing/lifting people out of poverty and entrenching diversification. “The National Bureau of Statistics latest release has declared 20.9 million people had lost their jobs. The performance of this year’s budget, specifically the capital component, is less than 30%. This is not a good sign for our budget,” Tunji Ogunyemi, a budget historian and senior lecturer at Obafemi Awolowo University, Ile Ife, said. ”Am surprised that we are not factoring in the fact that Nigeria is an OPEC member and this would definitely affect our quota in the international oil markets. Even while we were given exemption by the OPEC country, we could not even do the 2.3 and 2.5 million barrels, we were doing between 1.89 million barrels,” Tunji said. Suggesting measures for economic diversification, Kruz David, and economic expert said, “When am talking about

diversifying this economy, it is all about how do you design, the appropriate tax policy mix that would become a catalyst to spur economic growth and prosperity. “Today, the number of taxes we are collecting in Nigeria is too many .We must have that design that makes companies to actually flourish, while paying huge taxes to the government. Government in designing the tax policy would factor in those ecstatic sectors that they are meant to diversify the economy such as sports and tourism. “Government is actually supposed to design policies that would make people come into this sector not government bringing money to build infrastructure for our economic diversification. Can you imagine the United Kingdom without the English premiership, which is generation huge money to government’s coffers and creating wealth. Government must come up

L-R: Mike Adenuga, chairman, Globacom, and Udeme Ufot, group managing director, SO&U Group, during the presentation of LAIF Awards recently won by SO&U to the Globacom chairman

WAWOOH, a fashion, lifestyle e-commerce platform, debuts in Nigeria

AWOOH, an African focused fashion and lifestyle e-commerce platform, has commenced operations in Nigeria. This announcement was made during a media parley held recently in Lagos. WAWOOH is set to facilitate growth in Africa fashion industry by providing a platform for fashion designers and consumers to engage in transactions and collaborations. Speaking during the launch, Kunle Oladipo, CEO, WAWOOH, reiterated the commitment of the company to unlocking more opportunities for fashion creators by providing them a platform to showcase their designs to a larger audience. “Through our WAWOOH Event and WAWOOH Marketplace platforms, we have cre-

ated a solution that will help fashion creators increase their earnings. “This platform which features thousands of unique fashion items from leading designers across Africa also has a unique feature that enables you input your measurement online, and order for a bespoke/ made-to-fit item, which will be delivered to your doorstep. “We have also put in place an escrow system which ensures vendors aren’t paid until you have indicated that you received your order in perfect condition. This is to maintain a high quality of service,” he said. Business development manager, WAWOOH, Bolaji Omitogun, also said, “We are focused on projecting positive narratives about Africa through fashion, we are showing the world the creativity, brilliance and craftsmanship

of Africans. We currently have a large database of designers who showcase a diverse line of bespoke and ready to wear African fashion items, modern attires and accessories including; customised native ankara apparels, embellished Asooke or Batik dresses, patterned dresses, bags, native Hausa caps, Ankara bags and shoes on WAWOOH.” Leading fashion influencers including Denola Grey, Ozinna Anumudu, Temisan Emmanuel, and Makida Moka were in attendance at the fashion and lifestyle marketplace. WAWOOH already has an extensive array of exclusive fashion items on its platform. This is being showcased by hundreds of leading fashion designers who have signed up on its marketplace to give you the chance to make the choice that best suit your style.

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BUSINESS DAY

Economic zones are Plateau presents major accelerator of N148.7bn 2019 industrialisation - FG budget to Assembly HARRISON EDEH, Abuja

he Federal Government says the Economic Recovery and Growth Plan (ERGP) has identified the development of Special Economic Zones (SEZs) as major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan (NIRP). Ministry of Industry, Trade and Investment gave the information on Monday, as it clarified further that the Ministry and the Nigeria Export Processing Zone Authority (NEPZA) were currently developing SEZS to world-class standards. The Ministry also noted that the economic zones were geared towards positioning Nigeria as the pre-eminent manufacturing hub in subSaharan Africa and a major exporter of made-in-Nigeria goods and services regionally and globally. The project seeks further to aid structural transformation of the Nigerian economy by increasing the manufacturing sector’s contribution to Gross Domestic Product to 20 percent by 2025. It also seeks to contribute to sustainable inclusive growth by creating 1.5 million new manufacturing jobs in the initial phase of the project, in addition to increasing and diversifying foreign exchange earnings by increasing manufacturing sector exports to at least $30 billion annually by 2025. The SEZs will attract world-class investors with strong positions in global supply chains and investors with potential to increase the scale of operations rapidly to set up operations in SEZs; and further create an enabling environment for SEZ businesses.

overnor Simon Lalong of Plateau State on Monday presented the 2019 budget of N148.7 billion to the Plateau State House of Assembly. Presenting the budget before the Assembly, Lalong said the appropriation bill was christened “Budget of Rescue and Infrastructural Growth.” According to Lalong, the 2019 budget was increased by over N2.4 billion compare with the 2018 proposal. He said over N83.4 billion representing 56 percent of the proposal would go for recurrent expenditure, while capital expenditure would gulp over N65.3 billion, representing 43.9 percent. “Mr speaker, you will recall that last year I presented the 2018 budget of over N125.5 billion, and over N146.5 billion was passed by the House. Today, I am here again to present the 2019 budget of over N148.7 billion,” he said. The governor said the recurrent expenditure would cover personnel and overhead costs, while capital expenditure would take care of administrative cost, the economy, social sector, and law and justice, among others. He urged members of the Assembly to give the budget proposal a speedy passage. In his response, Joshua Madaki, speaker of the Assembly, promised to ensure speedy passage of the bill to enable quick development in the state. He, however, called on ministries, departments and agencies of the state to avail themselves when called to defend their various proposals.

NHIS: SGF receives investigative panel report

ecretary to the Government of the Federation (SGF), Boss Mustapha, on Monday in Abuja received the report of the Presidential Independent Fact-Finding Panel on National Health Insurance Scheme (NHIS). The News Agency of Nigeria reports that a seven-member panel was inaugurated in November to investigate the conflict that engulfed the NHIS and led to the suspension of its executive secretary, Usman Yusuf. Mustapha said the government’s decision and recommendations of the panel would be made public at the appropriate time, saying the NHIS was critical in enabling government deliver on its promise of qualitative and affordable health care to Nigerians.

He noted that healthcare delivery was a cardinal programme in which huge investments had been made because a healthy nation was a wealthy nation. “I am delighted to receive the report of the panel on NHIS from the chairman and members who were assigned to look at the immediate and remote causes of the conflict that engulfed the NHIS. The panel was earlier given two weeks to submit its report; it was, however, extended due to the nature of the work and the need to address core issues. “I receive this report with deep sense of appreciation and I assure you that the report would be expeditiously processed for implementation,” he said. The SGF also thanked the panel members for their vari-

ous sacrifices in ensuring that the scheme was sustained and remained beneficial to all Nigerians. In his remarks, Bukar Hassan, chairman of the panel, said the report contained a set of recommendations that could be considered for short, medium and long-term implementation, and called for urgent attention to the key recommendations. He explained that the panel extended the period for the submission of the report because of the quantum of the documents that had to be perused and the need to be fair. “In the course of the work, the panel had to interface with stakeholders including the minister of health, the permanent secretary, chairman of governing council, unions, the National Assembly, among others.

34 BUSINESS DAY NEWS

MTN pays N19.2bn to settle CCI dispute with... Continued from page 1

damage.”

The CBN reached the agreement with MTN on the basis of new information received that shows no wrong was done by MTN regarding most of the repatriations, except for $1 billion involving repatriation of proceeds from a Private Placement it undertook, using improperly issued Certificate of Capital Importation or CCIs. “The CBN and MTNN have mutually agreed that the aforementioned transaction be reversed notionally to bring it into full compliance with foreign exchange laws and regulations. The parties have resolved that execution of the terms of the agreement will lead to amicable disposal of the pending legal suit between the parties and final resolution of the matter,” Isaac Okorafor, Director, Corporate Communications, CBN said in a statement. “The CBN assures foreign investors that the integrity of the CCIs issued by authorized dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities

that abound within Nigeria.” BusinessDay learnt that the CBN does not typically review decisions it has made but decided to do so this time because it does not regulate MTN. The initial announcement from the CBNwasforMTNtorefund$8.1billion. “We are very fine with the new agreement,” Pascal Dozie, Chairman of MTN Nigeria, told BusinessDay. MTN stock was up 2 percent in Johannesburg trading. Its shares are down some 16 percent since news of the fine broke. MTN Nigeria held various engagements with the CBN in order to find an equitable resolution to the matter. In particular, a series of meetings were held in Lagos with CBN officials during November 2018. At these meetings MTN Nigeria provided additional material documentation which satisfactorily clarified its remittances. The CBN upon review of the additional documentation concluded that MTNNigeriaisnolongerrequiredtoreverse the historical dividend payments made to MTN Nigeria shareholders.

https: www.

However, the CBN maintained that the proceeds from the preference shares in MTN Nigeria’s private placement remittances of 2008 of about $ 1 billion were irregular having been based on CCIs that only had an approval in-principle, but not final regulatory approval of CBN. The CBN instructed MTN Nigeria to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of N19.2 billion - equivalent to US$52.6m (the notional reversal amount). This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued. MTN Nigeria and the CBN agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability. “In terms of the resolution agreement, the CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs, thereby bringing to a final resolution all incidental disputes arising from this matter,” MTN said in a statement.

MTN Nigeria relied on certain commercial banks to ensure all approvals had been obtained prior to the CCIs being issued and to ensure the CCIs were properly utilised in the private placement. MTNNigeriasaysitwillbeengaging with the banks in relation to the issues dealt with in the resolution agreement. Omotola Abimbola, a research analyst at Ecobank, said it is a good thing that both parties were able to reach a reasonable agreement. But he further explained that “perhaps the situation could have been better managed without having an impact on Nigeria’s investment attractiveness, because MTN is a global company and this issue went far and wide. So it has had an impact on investors’ perception towards Nigeria.” Emefiele had said in the last MonetaryPolicyCommittee(MPC)meeting heldinNovemberthattheissuewiththe mobile operator was almost finalised. “We are in the process of saying ‘this matter has been resolved’. We have held meetings with the MTN group, they flew in from South Africa, and we are at the verge, when I mean verge, it is as good as announcing it,” Emefiele said. Another source close to the CBN, had earlier told BusinessDay that even though theapexbank was looking atresolving the issue amicably, the decision by MTN to go to court was a ‘mistake.’ The Apex bank had in August 29, 2018 ordered MTN and its four banks to refund $8.134 billion back into

Tuesday 25 December 2018

the country, sending the company’s shares plummeting. The CBN had explained that the sanction was due to irregularities with respect to repatriations made by four banks on behalf of MTN Nigeria Limited. MTN however advised shareholders that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing. The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to 7 February 2019. “MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim. As a result of the above, shareholders are no longer required to exercise caution in dealing with the Company securities,” MTN said. “This is positive for Nigeria’s image abroad as well as MTN’s investors. We expect this to impact positively on its shares after the Christmas break. In addition, This will improve foreign investor confidence. MTN may begin talks on its listing initiative on the Nigerian bourse. Though, most of these activities may occur after the 2019 General Elections,” said Ayodeji Ebo, MD, Afrinvest Securities Limited.

Winners, losers in Nigeria’s oil, gas sector... Continued from page 2

L-R: Adedayo Amzat, group managing director; Stella Duru, director; Babatunde Sanda, chairman, and Oluseyi Akinbi, director, all of Zedcrest Capital Limited, at the company’s end-of-year party and formal introduction of Sanda and Duru as board members of the company in Lagos.

Christmas cheer fail to lift retail sales as... Continued from page 1

looking the same this year for many Nigerians hit by stagnant incomes, unpaid salaries and

job losses. NBS released data last week showing that the country’s unemployment rates now sit at 23.1 percent, the highest since 2010. BusinessDayvisittosomemallsand informal retail outlet showed that consumer turnout for Christmas shopping is low even with retailers’ efforts to win them with discounts on several items. At SPAR supermarket in Ilupeju, consumers were seen shopping for everyday groceries only despite the fact that Spar had on offer 25 to 50 percent discount on clothes and Christmas decorations but many consumers were not taking up the offer. “We are hopeful that they will shop on Christmas day,” an attendant at SPAR told BusinessDay on Monday. The story is similar at Ikeja City Mall, where retailers had their stores well decorated and inviting shoppers to look in. Like SPAR, some stores at the mall are offering slight reductions on selected items and consumers are weighing their options. ‘‘I am looking for an item that is not too pricy,’’ said Oyekemi Ojo, a teacher. “Despite the way things are in the country, that wouldn’t stop me from celebrating.” An attendant at Party Perfect,

a gift shop at the mall, is visibly troubled about her turnover this year. Party Perfect lowered the prices of their gift items considerably to encourage consumers to buy. The Christmas trees went down to N52,000 from N70,000, and N25,500 from N31,500. But, the attendant said they are yet to make any reasonable sale. “This time last year, we sold more items but this year sales have been low,” the attendant who gave her name as Cecelia, said. ‘‘I have not been paid in two months,’’ said Fred Udile, who works at a Public relation firm in Lagos. ‘‘My wife put to bed few months ago, and that is an additional responsibility.’’ Africa’s biggest economy with an estimated population of 200 million is mired in economic slowdown since 2016 amidst rising inflation and unemployment. Over 30 states in the federation owe workers’ salaries or allowances or both. According to the National Bureau of Statistics (NBS) report last week, Nigeria’s unemployment rate climbed to 23.1 percent in Q3 of 2018 from 18.8 percent in Q3 of 2017. Consumerpricesrose11.28percent in November 2018 from a year earlier, compared with 11.26 percent in October, the NBS said on December 14. The huge consumer traffic that is evident around Marina, the gateway to the popular Balogun market, has

also thinned this Christmas. A year ago, it was challenging finding a parking space days to Christmas. Now, it is quite easy, an indication that shoppers are shying away. “This Christmas is the worst for me in years. People are not buying anything,’’ said Kemi Amuwa, a hampers retailer near the Balogun Market. Besides her are about 10 baskets of hampers sitting quietly in the blazing afternoon soon waiting for buyers. A few metres away seats Mercy Ihionu who sells Christmas lightings, treesandbulbs.Disappointinglyshetells the reporter that ‘‘patronage has been discouraging’’ as she points to the heaps of unsold items lying on the ground. At Apongbo and Idumota markets, retailers expressed deep worries over the state of the economy which they say has greatly reduced their sales during this festive period. “Some of my customers who bought hampers last year are not buying this year,” said Esther, a retailer at Apongbo market. “They said they don’t have the money for hampers.” Esther, who is yet to sell a hamper in almost a week say it has never been this bad. “Last year was tough but not as bad as this year,” said Esther. “I used to sell more hampers in a day than I do now in a week.” Bukola is a clothing retailer at Balogun market. Although she said sales have been discouraging, she’s optimistic.

suffered several delays and setbacks, forcing the 8th National Assembly to unbundle it into four parts for ease of administration with the first being the PIGB. The proposed law, which is conceived to liberalize the governance structure of Nigeria’s oil industry and open the sector up for more Foreign Direct Investment (FDI) has been described by stakeholders as the only leeway for the oil sector. Marginal Field Bid Rounds In 2018, hopes of having a marginal field bid round that would have generated huge signature bonus was dashed as politics and regulatory challenges continued to obstruct growth in the sector. Stakeholders that spoke to BusinessDay lamented that the lack of a scheduled programme for the exercise has left prospective investors more confused in 2018 than before as they are not getting any information even from the Department of Petroleum Resources (DPR). Addax Oil Addax Petroleum Development Nigeria Ltd was plagued with controversies all through 2018 as the federal government, through the office of the Attorney-General of the Federation commenced legal proceedings against it for alleged under-remittance of $3 billion in taxes and royalties. Documents before Justice Mojisola Olatoregun showed that the funds are outstanding claims against the company under the Petroleum Profit Tax Act and Petroleum (Drilling and Production) Amendment Regulation 2003 over Oil Mining Leases (OMLs) 123, 124, 126, and 137. Also in 2018, the company had workers unrest as all the entrances to the premises were firmly locked by protesting workers. Erin Energy The bankruptcy of Houston based Erin Energy is not only the straw that broke the camel’s back but also the beginning of more legal woes for the company formally known as Camac Energy as it’s at the verge of losing its only cash-generating asset, a Nigerian oilfield.

New York and Johannesburg listed Erin Energy filed for bankruptcy in April 2018 and sought to restructure its debt and regain financial viability. Independents majors on Nembe Creek Trunk Line pipeline AITEO, Eroton and Newcross, three Nigerian independents who evacuate their crude through the Nembe Creek Trunk Line pipeline (NCTL), lost as much as 40 percent of crude routinely to oil theft in 2018. The 97kilometre pipeline, with capacity to pump 150,000Barrels Per Day, is a favourite of oil thieves, who routinely hack into the line, creating as many as 24 illegal bunkering points that require constant plugging. Hopefully, the alternative evacuation plans the companies are pursuing will provide relief in 2019. Lekoil Once considered one of the brightest promising independent oil firm years ago, Africa-focused oil and gas company Lekoil had a lacklustre 2018. The company requested for an extension for lease OPL 310 from the Nigerian Federal Ministry of Petroleum Resources in order to recover the three years and one month lostdue toregulatory delays out of Lekoil’s control. Uncertainty on FID for NLNG Train 7 The much publicized Final Investment Decision (FID) for Train 7 of the Nigeria Liquefied Natural Gas (NLNG) limited that was anticipated to take place December 2018 will not happen again sources tell BusinessDay. The reason is that the exercise will nottakeplaceuntilafterthecompletion of the Front End Engineering Design (FEED) which is expected to give investors a fair idea of what would be needed financially to complete the project. OPEC Organization of Petroleum Exporting Countries (OPEC) found itself in a very unusual situation. Although they were able agree on a production cut, the last meeting in Vienna is a clear writing on the wall that OPEC can’t unilaterally dominate the energy markets as it has done for the last five decades.

Tuesday 25 December 2018

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2019: How politicians violate Electoral Act with Christmas gifts JAMES KWEN, Abuja

head the 2019 general elections evidence abounds that politicians, particularly those contesting for elective offices, are violating the 2010 Electoral Act via Christmas gifts. The gifts range from bags of rice and salt, wrappers, T-Shirts, face caps, foot wears crested with their images and the logos of their political parties as well positions they are vying for, cows, goats, chickens and cash. While some politicians claim that they always give Christmas gifts to their constituents or supporters, this year’s Christmas gifts are with different intent and purpose as they are clearly meant to induce voters to support

them during the elections. For instance, pictures of bags of rice crested with photographs of President Muhammadu Buhari, his wife Aisha and Governor David Umahi of Ebonyi State and his wife for distribution to people at Christmas have gone viral on social media while many governors and National Assembly members seeking re-election have taken to this strategy of vote buying. A famous senator in North Central Nigeria is said to have procured seven trailer loads of bags of rice crested with his campaign posters for distribution to the seven local government areas that made up his constituency. This politically motivated benevolence in this year’s Yuletide season out rightly contravenes the Electoral Act 2010, which

would be used to conduct the 2019 general elections after President Buhari declined assent to the 2018 electoral amendment act which also retain the provision on vote buying or inducement of voters in whatever guise. According to Section 124 of the 2010 Electoral Act, “Any person who directly or indirectly, by himself or by any other person on his behalf, gives, lends or agrees to give or lend, or offers any money or valuable consideration; “Directly or indirectly, by himself or by any other person on his behalf, corruptly makes any gift, loan, offer, promise, procurement or agreement to or for any person, in order to induce such person to procure or to endeavour to procure the return of any person as a member of a

legislative house or to an elective office or the vote of any voter at any election; “Upon or in consequence of any gift, loan, offer, promise, procurement or agreement corruptly procures, or engages or promises or endeavours to procure, the return of any person as a member of a legislative house or to an elective office or the vote of any voter at any election; “Advances or pays or causes to be paid any money to or for the use of any other person, with the intent that such money or any part thereof shall be expended in bribery at any election, or who knowingly pays or causes to be paid any money to any person in discharge or repayment of any money wholly or in part expended in bribery at any election.

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BUSINESS DAY

Edo SIP trains 20 entrepreneurs on access to funding

s part of Governor Godwin Obaseki’s strategy to boost job creation and stimulate innovation, the Edo State government has trained 20 entrepreneurs on tactics for accessing funding to scale up their businesses. Focal person, Edo Social Investment Programme, Osayuwamen Aladeselu, disclosed this in an interview with journalists in Benin City, noting that of the over 70 entrepreneurs that indicated interest to be part of the Edo Start-Up Fund, only 20 were selected as pioneers. Aladeselu said the entrepreneurs include, “Nuna Food, a special solution and formula for nursing mothers; Paybyana, a software application, which can grow businesses through easy-touse card payment service; Med-Plan; Gloph Concept, a customised plantain chips

producer; Nano Doors, owned by a 20-year-old inventor, which makes a desk with installed computers to ensure easy computer access for students. The training programme includes training on business idea development, business pitch, marketing and advertising, sales and profit projection, among others. She said, “Most of the entrepreneurs who previously could not pitch their business ideas to inventors are now able to articulate themselves. Another two-week intensive training was organised for the incubates of EDSUF at the South-South Innovation Hub in Benin City.” She congratulated the trainees for making it to the final stage of the pitch as Governor Godwin Obaseki had promised a start-up fund of N500,000 and N300,000 to the best in each category.

Xmas: Obaseki enjoins citizens to emulate Jesus, spread love, oneness

L-R: Oludare Olateju, senior brand manager, Star Lager Beer; Sarah Agah, portfolio manager, national premium, NB plc; Onyebuchi Nwangwu, brand manager, Star Lager Beer, and Toheeb Azzez, media manager, NB plc, at Olamide Live In Concert With Star Lager Beer.

do State governor, Godwin Obaseki, has enjoined Edo people and residents to emulate Jesus Christ as they celebrate Christmas. In his Christmas message issued on Monday in Benin City, Obaseki said: “On behalf of the government of Edo State, I rejoice with all Edo people, at home and in the Diaspora as well as residents, as we celebrate Christmas.” According to Obaseki, “Christmas season is an auspicious occasion to show love and reflect on the life of Jesus Christ, whose birth we are commemorat-

ing. “As we celebrate with our friends, relatives and neighbours, I enjoin you to spread the message of oneness, love, generosity and hope for greater things as demonstrated by Jesus Christ.” He expressed the state government’s gratitude to the people for their support for his administration. “As a government, we are grateful to all Edo people and residents who have stood by us in our pursuit of a united and prosperous state, where we all can realise our dreams. It is with great joy that I wish you a merry Christmas.”

Christmas: Buhari reaffirms commitment to free, fair elections EU’s General Data Protection Regulation to affect Nigerian organisations … as Ambode urges care for less privileged JOSHUA BASSEY

resident Muhammadu Buhari on Monday reaffirmed commitment to free, fair and credible elections in 2019, saying it was the only way to secure the future for Nigeria. Buhari also urged the citizens to have faith that what lies ahead of us as a nation was better than whatever we must have experienced in the past. The President stated this in his message on the occasion of the 2018 Christmas celebration personally signed by him. According to Buhari, with general elections around the corner and heightened political activities across the country, I have charged our security and law enforcement agencies to secure the sanctity of the ballot box and ensure that the outcome of the polls reflects the will of the Nigerian people.

“My avowed commitment to free, fair, credible and violence-free polls is not a ruse or yet another vain political promise. My word is my bond. “It is a sworn declaration on the advancement of Nigeria, the future and safety of our young and unborn generations. Let us tell the world that, indeed, ‘something good’ can come out from Nigeria. And it will happen, as we all team up to make it happen.” The President, who said a lot had been done by his administration to strengthen the economy and deliver value to the people, especially in the agricultural sector, urged Nigerians to, in this season of love, show care to one another. “One the downside, we have seen so many unnecessary deaths caused by violent clashes between neighbours, who ordinarily should complement and support one an-

other. We cannot bring back the lives lost to floods, unfortunate fire disasters, road accidents, farmers/herders clashes and insurgency. “But we can put back smiles on the faces of the grieving, the displaced and the troubled, if we show a little love and recommit ourselves to building relationships with those outside our ethnic, religious and socio-political divides.” On his part, Governor of Lagos State, Akinwunmi Ambode, has emphasise the need for the citizens of the state to seize the occasion of Christmas to extend acts of love and kindness to all mankind and the less privileged persons in particular. Christmas is an annual event observed every December 25, to remember the birth of Jesus Christ, around whom Christianity, one of the world’s most popular and practiced religions, revolves.

… Hitachi advises use of tech for data protection compliance JUMOKE AKYODE-LAWANSON

igerian companies are likely to be negatively impacted by the European Union’s (EU) General Data Protection (GDPR) if adequate sensitisation is not carried out, data experts say. Experts at Hitachi Vantara, a data storage system provider, say Nigeria must abide by the directives of the GDPR law since it hosts data of different nationals and does business with citizens from other countries, including countries in the EU. Speaking during a collaborative event with Allied Computers, organised to provide insights to organisations, chief risk officers and compliance officers in Lagos recently, Manfred Gramlich, director, data intelligence, Hitachi Vantara, states there is

an increasing need for Nigerian companies dealing with EU to understand the impact breaching the GDPR can have on their businesses. “Hitachi can help Nigerian businesses in their journey to GDPR and other regulations compliance requirements by providing an end-to-end solution for anything related to GDPR to ensure companies are not penalised,” Gramlich says. He urges chief executive officers to have clear understanding of those regulations to prevent data breaches, which can have adverse effect on their companies and reputation. Akinwale Awosokanre, regional managing director, Hitachi West Africa, also reinforces the position of Gramlich, saying anybody that does business anywhere in the world with EU entities, companies and keeps record

of data concerning those entities are affected by the GDPR, irrespective of whether they are in the EU or in Nigeria. He says organisations should govern and manage data properly and also ensure that data are released to the right people. “Hitachi has been involved in doing this in order countries and felt the need to bring it home and localise it,” Awosokanre says. Also speaking, Olatunji Kehinde, general manager, Allied Computers, says they understand that it could be explosive if a company runs foul of the regulations. “We discovered that a lot of people don’t understand the regulation and how to go about compliance. So, this event explained the process of getting compliance, the tools and technology needed to achieve it.

Tuesday 25 December 2018

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FINANCIAL TIMES

World Business Newspaper

Steven Mnuchin sparks further unease in markets

S&P 500 and Dow Jones indices both open lower as Europe stalls Joe Rennison and Kate Allen

S stocks slid further on Monday following US Treasury secretary Steven Mnuchin’s highly unusual effort over the weekend to reassure investors about Wall Street banks’ liquidity. The S&P 500 fell 1.4 per cent as trading began on Wall Street, putting it down 18.7 per cent from it’s 2018 high in September and leaving it on course to enter a bear market, which is defined as a drop of 20 per cent or more from the peak. Some investors said they anticipated greater volatility this week due to light trading volumes during the holiday period. The Dow Jones Industrial Average dropped 1.3 per cent, while the tech-heavy Nasdaq is sank 1.6 per cent. The political tensions surrounding the US government shutdown on Friday also weighed on the dollar, down 0.4 per cent against a basket of other currencies. In Asia on Monday, equities trading was muted, with markets in Japan shut for a holiday and many others closing early for Christmas. China’s CSI 300 ended the day up 0.3 per cent and Hong Kong’s Hang Seng index finished

a shortened session down 0.4 per cent. In Australia the S&P/ASX 200 rose 0.5 per cent while South Korea’s Kospi Composite slipped 0.2 per cent. Mr Mnuchin’s said on Sunday that the chiefs of the country’s biggest banks had confirmed to him that they had “ample liquidity for lending to consumer, business markets, and all other market operations” — a matter that had not been a widespread point of concern. Mr Mnuchin’s statement appeared to be an attempt by the administration to calm nerves after a volatile week for traders, and media reports that President Donald Trump was contemplating firing Federal Reserve chairman Jay Powell. Win Thin, global head of currency strategy at Brown Brothers Harriman, warned that among traders, “sentiment is so negative right now that markets will assume the worst” about any suggestion that Mr Trump could seek to remove Mr Powell. “Until this weekend, markets were not that concerned about liquidity or clearance issues,” Mr Thin said. “At best, Mnuchin made a rookie policy mistake in trying to reassure markets; at worst, Mnuchin knows something that the markets don’t.” European markets also ap-

Big Tech in hiring spree for looming antitrust battles Facebook and Amazon recently hired former US justice department officials Kiran Stacey

ig technology and telecoms companies have embarked on a hiring spree of former antitrust officials as their industries gear up for what experts warn could be an “existential” battle over whether they should be broken up. In the last few months, Facebook, Amazon and AT&T have all hired senior antitrust officials from the US Department of Justice as they confront a new generation of regulators who are interested in preventing concentrations of economic power. Critics have dismissed the increased interest in antitrust from younger economists and regulators in particular as “hipster antitrust”— but it has begun to catch the attention of some of America’s biggest companies. Since the summer, Makan Delrahim, the assistant attorneygeneral for antitrust in the justice department, has lost two of his senior advisers to technology companies: Bryson Bachman to

Amazon and Brinkley Tappan to AT&T. Both worked on the move to block the merger of the health insurers Cigna and Anthem. Meanwhile Kate Patchen, who previously led the justice department’s antitrust office in San Francisco, last month joined Facebook as an associate general counsel on litigation matters. All of the companies declined to comment on the moves. Many of the biggest US technology companies have endured a difficult year, facing allegations of not protecting customer data, failing to prevent Russian interference in American democracy and showing political bias. In response, several have beefed up their lobbying operations in Washington as they look to engage more with politicians, having previously preferred to operate under the radar. Amazon for example has doubled the size of its lobbying team since Donald Trump became US president. Experts say the hirings reflect Continues on page A2

Steven Mnuchin said in a statement that the chiefs of the US’s biggest banks had confirmed to him that they have ample liquidity © Bloomberg

peared to respond to the uncertainty — the FTSE 100 closed down 0.5 per cent in thin preChristmas trading on Monday, with the pan-European Stoxx 50 closing down 0.9 per cent. Oil prices were also affected, with Brent crude falling by 0.5 per cent to $53.45. US Treasury yields initially rose in early trading on Monday and then trended lower. The 10year yield dropped 2 basis points from Friday’s close to 2.77 per

cent. Mr Mnuchin said he was preparing to chair a call on Monday with the President’s Working Group on Financial Markets, which would include Fed governors, along with regulators from the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Deposit Insurance Corporation. The Treasury secretary also on the weekend acted to douse

concerns about the tenure of Mr Powell, tweeting that the president had “never suggested” firing the Fed chief and nor does he believe he has such a right. The Treasury secretary was acting “to dampen speculation” over Mr Powell’s future, Kathy Bostjancic, an analyst at Oxford Economics, said. “If Trump tries to remove Powell, it could throw the financial markets into deep chaos that makes the current market turmoil look tame,” she added.

China drafts law to ban forced tech transfer from foreign partners New rules would prevent local authorities from acquiring IP through joint ventures Gabriel Wildau

hina plans to ban local governments from forcing foreign companies to transfer proprietary technology to their Chinese partners, to address a complaint at the heart of the US-China trade and technology dispute. The government is considering a streamlined foreign investment law that would replace the regime governing which industries are open to foreigners and the conditions under which they can enter, according to the official Xinhua news agency. Foreign companies complain that they are required to operate through Sino-foreign joint ventures in many industries, forcing them to transfer valuable technology to Chinese partners, who later go on to compete with the foreign investor through the partner’s parent company. The Office of the US Trade Representative emphasised such complaints in its so-called “Section 301” report on Chinese trade and investment practices, named for a provision in a rarely invoked 1974 law. The law says that terms of technology “co-operation” should be

determined by negotiation, while local governments and officials cannot use administrative methods to force technology transfers. “The foreign investment law is meant to promote and protect foreign investment and ensure foreign businesses enjoy fair treatment, which will boost their confidence in the Chinese market,” Xinhua reported. The draft law explicitly forbids local governments from adopting policies and practices that infringe on foreign investors’ “legal rights and interests” or erecting illegal market entry or exit barriers, according to the official Securities Times. But foreign analysts caution that China often uses informal methods to pressure foreign groups into technology transfers. These include denying administrative approvals unless a foreign group agrees to include transfer provisions in joint-venture agreements, even when such provisions are not legally required. “More needed than simple rule changes. Reducing coercive tech transfer would require banning and penalising informal demands and threats, [and] heavily constraining industrial policy that directs and constrains investment,”

Scott Kennedy, director of the project on Chinese business and political economy at the Center for Strategic and International Studies in Washington, tweeted in response to the proposal. The standing committee of the National People’s Congress, China’s parliament, began reviewing a draft of the law at a bimonthly session that began on Sunday. The standing committee typically conducts multiple rounds of deliberation before referring legislation to a plenary session of the NPC. That means final passage of the law could take anywhere from several months to over a year. In addition to the provisions on tech transfer, the new law aims to streamline regulation of foreign investment. It would replace three separate laws that govern, respectively, equity joint ventures, contractual joint ventures and whollyforeign-owned enterprises. Separately on Monday, China’s finance ministry announced tariff cuts to 706 products, effective on January 1. Among the affected products were lithium-ion battery cells for electric vehicles and animal-feed meal used as alternatives to soyabean meal. China raised tariffs on US soyabeans as part of a tit-for-tat response to US tariffs.

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NATIONAL NEWS

Big Tech in hiring spree for looming antitrust...

Beach resorts near Jakarta most affected as volcanic eruption causes undersea landslide

Continued from page A1

a growing belief that competition policy could become the next significant political battleground. Brandon Barford, a partner at Beacon Policy Advisors, said: “Lots of technology companies are worried about things that are currently making headlines, such as Russian electoral interference and data privacy. “But while these issues are problematic, the real existential threat to their businesses is antitrust. Any company of a certain size that does not have a tonne of competitors is vulnerable.” The European Commission has investigated US technology companies for alleged anti-competitive behaviour. Margrethe Vestager, the European Commissioner for Competition, is bringing cases against Google and is looking into Amazon. Such cases have been more difficult to pursue in the US, where the law is focused more on whether anti-competitive behaviour is keeping prices artificially high. A group of younger progressive regulators and politicians have argued in recent years, however, that technology companies that give their services away for free but dominate their markets should come in for as much attention. Rohit Chopra, a Federal Trade Commissioner in his mid-30s, for example, recently hired Lina Khan, a 29-year-old policy thinker who has argued that large technology companies can both bring prices down and be harmful to society in general. These policy experts have allies among more established Democrats, such as Elizabeth Warren, the senator for Massachusetts. Last week, David Cicilline, a Democratic representative in Rhode Island, told Sundar Pichai, the chief executive of Google, during a House judiciary committee hearing: “It has become increasingly clear that the virtuous cycle of [technological] innovation is fundamentally threatened by the dominance of a few powerful companies.” There are even some signs of concern in the White House. Last month Donald Trump, the US president, told Axios “I do have a lot of people talking about monopoly when they mention those three [Google, Facebook and Amazon] in particular.” One executive at a large US technology company said: “We do not think we have too much market power, but we see that it is a big topic of conversation right now, especially with the new Democrat-controlled Congress coming in. It is something we are very aware of.”

Tuesday 25 December 2018

Ben Bland

Israel to hold early elections as Knesset is dissolved Vote in April will be seen as referendum on Prime Minister Benjamin Netanyahu

Ilan Ben Zion

enjamin Netanyahu’s governing coalition has agreed to dissolve the Israeli parliament and call early elections in April that will be seen as a referendum on the veteran prime minister. Party leaders issued a statement on Monday saying that “out of budgetary and national responsibility the heads of the coalition parties decided, in unanimous agreement, to dissolve the Knesset and go to new elections at the start of April”. Israeli media said elections were likely to be scheduled for April 9. The early elections have been called as Israel’s attorney-general considers police recommendations

to indict Mr Netanyahu on three corruption cases. The attorney-general is expected to announce his decision whether or not to charge the prime minister sometime before April. It remains unclear whether Mr Netanyahu can legally serve as prime minister while under indictment, but a parliamentary election is widely seen as a referendum on his ability to lead the country. The cause of Monday’s announcement was disagreement between coalition parties over the particulars of a military draft bill that would require greater ultraOrthodox enlistment, a move Mr Netanyahu’s ultra-Orthodox allies oppose. The announcement came after two opposition parties said

they, too, would vote against the bill. Following the announcement, Mr Netanyahu touted his administration’s “enormous achievements” at a Likud meeting at the Knesset, saying his party would continue to succeed after the upcoming elections. Mr Netanyahu has led Israel for nearly 10 consecutive years. His current government, a narrow 61-seat coalition of rightwing and religious parties in the 120-member parliament, has managed to remain together since May 2015. Opposition politicians welcomed the new elections. Tzipi Livni, opposition leader and a former foreign minister, said April was “not election day — it’s revolution day”.

Queen calls on UK to overcome ‘deeply held differences’ Monarch uses Christmas message to say goodwill ‘needed as much as ever’ Laura Hughes

he Queen will call on Britain to overcome “deeply held differences” and treat each other with “respect and as a fellow human being” in her annual Christmas message. The 92-year-old monarch will say the Christian message of “peace on earth and goodwill to all” is “needed as much as ever”, according to extracts released by Buckingham Palace. “Even with the most deeply held differences, treating the other person with respect and as a fellow human being is always a good first step towards greater understanding,” she will say. The Queen’s words come as parliament remains torn over Brexit and the UK prime minister’s

compromise deal with Brussels. Theresa May has cut short her cabinet ministers’ Christmas break, summoning them to a meeting to discuss a no-deal Brexit on January 2, as she tries to increase pressure on her critics. Mrs May still hopes Brussels can offer “reassurances” to MPs over the terms of Britain’s exit deal before a crucial vote on her deal in January and that over the Christmas break some of her Eurosceptic colleagues will come to view it as the best deal on offer. As the head of state, the Queen is expected to be politically neutral and avoid publicly commenting on controversial matters of government. Referring to birth of Jesus, she will say: “I believe his message of peace on earth and goodwill to all is never

out of date. It can be heeded by everyone; it’s needed as much as ever. “Even with the most deeply held differences, treating the other person with respect and as a fellow human being is always a good step towards greater understanding.” Mrs May has used her own Christmas message to pay tribute to the UK’s armed forces, who she said had “continued to demonstrate why you are the finest in the world”. She praised their efforts in responding to the Salisbury chemical weapons attack and the Islamic State. Mrs May said this had sent a message to the Syrian regime “that we will not stand by while chemical weapons are used, as they were in April on families, including young children”.

Future awards Africa 2018: Amstel Malta awards Samson Itodo ‘Young Person of the Year’

mstel Malta, one of Nigeria’s leading malt brands recently demonstrated its support for young Nigerians stepping into the spotlight by awarding Samson Itodo, the Young Person of the Year at the 2018 Future Awards Africa. Samson Itodo took home a much coveted award for his role in challenging the pre-independence laws that set the ages for participation in Federal, State and Local Government elections through the ‘Not Too Young To Run’ bill. Emmanuel Oriakhi, the market-

ing director, Nigerian Breweries Plc., in a statement said Amstel Malta is proud to be part of the process of rewarding young Nigerians for their efforts and individual journeys. “It is quite important for us to encourage Nigerians to be their best no matter where they find themselves. Amstel Malta’s readiness to support laudable projects like this further solidifies the brand’s stance at applauding excellence,” said Oriakhi. Amstel Malta has for a long time, play an active role in uplifting

core lifestyle interests of Nigerians’ leveraging platforms like the Amstel Malta Box Office, Act The Part online competition, Amstel Malta Showtime, and support of events like the AMVCAs, FitFamFest and Okpekpe Race among others. The future awards, which was launched in 2005, rewards deserving young Nigerians and Africans who have carved a niche for themselves in their chosen field. It celebrates young people who have made outstanding achievements in the year.

escuers combing wreckage after a tsunami struck Indonesia on Saturday continued to find more victims on Monday, with at least 373 people now known to have been killed and more than 1,400 injured after a volcanic eruption was believed to have triggered surging tides. At least 128 people are reported missing, while hundreds of homes, hotels, shops and other buildings have been destroyed. Although they were still investigating, Indonesian officials and volcanologists believed that the tsunami was likely to have been caused by an undersea landslide following an eruption of Anak Krakatau, the “child of Krakatau” volcano. Anak Krakatau, which sits in the Sunda Strait separating Indonesia’s two most populous islands of Java and Sumatra, emerged from the caldera of Krakatau after it erupted in cataclysmic fashion in 1883. It has been erupting regularly in the past few months. Extending for 5,000km along the Pacific “Ring of Fire”, Indonesia is the world’s most volcanically active nation and has been hit hard by seismic activity this year, with several thousand people killed by earthquakes on the island of Lombok in July and an earthquake and tsunami striking Palu on the island of Sulawesi in September. The area worst hit by Saturday’s tsunami was Banten province in western Java, just 100km west of Jakarta, where residents of the capital city often go for weekend breaks by the sea. Several hotels there were badly damaged and terrifying video footage showed the waves hitting one resort during a concert by Seventeen, a local rock band that lost several members in the disaster. Officials said that the scale of the human impact was exacerbated by a lack of warnings, despite efforts to build public alert systems after the devastating Indian Ocean tsunami of 2004, which killed 170,000 people in Indonesia alone. Sutopo Purwo Nugroho, head of information at Indonesia’s BNPB national disaster mitigation agency, said that a buoy system designed to warn of incoming tsunamis had not been operational since 2012 because of budget limitations, vandalism and other damage. “It needs to be rebuilt in order to strengthen Indonesia’s tsunami early warning system,” he said. President Joko Widodo, who faces a re-election battle against longtime rival Prabowo Subianto in April, visited the affected areas on Monday morning to inspect the damage. The BNPB said that it expected the death toll to rise as it continues its relief operations, with several thousand of its staff working alongside the military and police to find victims, clear debris and start the rebuilding process. The local branch of the Red Cross has deployed medical teams, emergency food and water supplies and search and rescue helicopters. Indonesia has so far not asked for international assistance.

Tuesday 25 December 2018

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Rivers budgets N480bn for 2019, set for minimum wage IGNATIUS CHUKWU

… says no going back on security outfit

overnor Nyesom Wike of Rivers State has rolled out the state’s 2019 budget of N480 billion, less than the N510 billion of 2018. The budget provides for the new minimum wage should the National Assembly pass it, as the governor said there was no going back on the controversial state security outfit for which he set aside N18 billion. Presenting the 2019 Appropriation Bill to the Rivers State House of Assembly, Governor Wike said the strategic thrust for the 2019 budget was to promote economic growth and diversification, create jobs and reduce unemployment; take as many of Rivers people out of poverty and improve the standard of living of the state. The budget is premised on an oil price benchmark of $55 per barrel, which is $5 lower than that of the Federal Government. The 2019 Rivers State Budget is christened: “Budget of Sustainable Growth and Development.” The governor proposed N323.288 billion as capital expenditure, while recurrent expenditure will gulp N157.122 billion.

He said: “The capital allocation of N323.288 billion for the 2019 fiscal year represents 65 per cent of the total budget. This sum is however less than the figure for 2018 by N57/7 billion due to the reduction in the total size of the 2019 budget as against that of 2018. He said because the 2019 Appropriation Bill had set priorities for human capital development and infrastructural provision, a substantial part of the capital budget was allocated to the Ministries of Agriculture; Education; Employment Generation and Empowerment; Health; Sports Development; Women Affairs; Works, and Youth Development. The governor proposed N72.9 billion for the construction and improvement of the state’s road network and transport infrastructure. He said: “This sum, which constitute about 24 per cent of the total capital budget, will be utilised to continue with the funding of the construction and completion of roads.” The sectoral allocation of the capital budget is as follows: (Proposed) Administration Sector; N17.82 billion, Economic Sector: N99 bil-

lion; Law and Justice Sector; N 4.35 billion; Social Sector; N127.3 billion, and Special Heads, N50.37 billion; Loan Repayments N24.4 billion. The governor said the following roads would be completed in 2019. They include: the dualization of Kira – Sakpenwa – Bori – Kono road; the Andoni - Opobo Unity road; the Oyigbo town – Ebete road; Tema – Ifoko road the Mbano camp road; Eleme - Obete road; Eteo – Sime – Bayayira-Nonwa-Kira road; Rumuji – Ibaa – obele – isiokpo road; Akabuka Omoku road; Flyover bridge at Garisson Junction abd Abonnema ring road. Others are: Abua-Degema – Emoh-Iyak-Ighom-Elok road; Ula Ehuda – Odioku – Anwunugboko – Ubeta – Ihuechi – Odiereke road; Rumuche road in Emouha Local Government Area; Flyover bridge at Rumuokwuta roundabout; Flyover bridge at University of Port Harcourt Junction Ahoada – Odiemerenyi – Ihugbogo-odieke road; Isiodu roads , Ahoada – Ekpena road; Omoku-AligwuKreigani-Oduoboburu road, Odieku internal roads; Bolo internal roads; Rumukpakani internal roads, and

Umuogba – Umuokpurukpu – Umueke – Umunju Umuelechi – Eberi roundabout link road. He proposed the sum of N17.11 billion for the Bureau for Special Projects to fund the completion of land reclamation at Bakana in Degema Local Government Area, land reclamation at Abalama in Asari Toru Local Government Area; land reclamation and shore protection at Kula in Akuku Toru Local Government Area; the Secretariat buildings for Trade Union Congress, Nigeria Labour Congress, National Union of Rivers State Students and Rivers State Students Union Government; and the Fruit Garden market in Port Harcourt City Local Government Area. The governor stated the administration allocated the sum of N25.3Bn to fund healthcare delivery in the State. He said key projects in the sector would be completed and delivered in 2019. Governor Wike said his administration would continue to give security of lives and property all the attention that it deserves in spite of the obvious lack of cooperation from the Federal Government.

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ICCI seeks to explore opportunities in Lagos ferry services ANTHONIA OBOKOH

takeholders in Ikorodu’s industrial/ commercial sector, especially the Small and Medium Enterprises (SMEs), are set to be identified with the Lagos State government in its developmental effort to involve in opportunities of ferry services in Ikorodu division to reduce the huge traffic congestion in the metropolis. Organised by the Ikorodu Chamber of Commerce and Industry (ICCI), the event is the 12th Business Luncheon with the theme “Involvement of ICCI in the development of ferry services in Ikorodu division.” “Water transportation is rapidly becoming an alternative to road transportation as the chaotic traffic congestion on Lagos roads has forced many commuters to explore ferry and speed boats,” said Samuel Adejere, commissioner for water infrastructure development, represented by Balogun Rasheed. Adejere said Ikorodu, the second most populous local government area in the state, with a population of over 2 million people, was

a littoral city and the fastest growing suburb near the Lagos metropolis, owing in part to the influx of people from Lagos and the environment provided by navigable Lagos lagoon. “Ikorodu has the advantage of investing in her natural endowment and as such, should be in the forefront of harnessing maximum potential from the abundant waterways,” Adejere said. He observed that this singular reason makes it pertinent for investment in water transportation especially by Ikorodu business elites and organisation like you. Adejere expressed hope that, it will not only boost the economic base and investment capacity of the Ikorodu division, but will enhance the area’s strategic advancement of Ikorodu division, which I believe other coastal cities like Epe, Badagry and Apapa will eagerly emulate. “I therefore, charge you to propel, educate member and liaise with the state government in strategic development of water transportation master plan for the benefit of your member and Ikorodu generally,” Adejere said.

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Tuesday 25 December 2018

National Discourse

What if Buhari wins? JOHN OSADOLOR

igerians will on February 16, 2019 go to the poll to elect the nation’s next president for a four year term. There are two serious contenders for that post: The incumbent President Muhammadu Buhari. He was a former military head of state and a retired Army General. He was shoved out of power in 1985 through a military coup de’ tat. The coup plotters alleged that Buhari was very incompetent. …” the initial objectives and programmes of action which were meant to have been implemented since the ascension to power of the Buhari Administration in January 1984 have been betrayed and discarded. The present state of uncertainty and stagnation cannot be permitted to degenerate into suppression and retrogression.” Brigadier

Joshua Nimyel Dogonyaro who read the coup speech told a bewildered nation on August 27, 1985. The other candidate is Atiku Abubakar, a retired Customs officer and a former vice president. There have been allegations of corruption against Atiku but no one has proof of it. And he has never been arraigned for it in any court of law in Nigeria or elsewhere. He is said to be stupendously rich and runs a vast empire of companies. Some people also question the source of that huge wealth. Political pundits have made diverse permutations of the contending candidates and how their outlooks might play out against the Nigerian environment, economy, history and sensibilities to predict who would or could win the election, Buhari or Atiku. Buhari is the incumbent and flag bearer of the ruling All Progressives Congress (APC), while Atiku is the presidential candidate of the opposition Peoples Democratic Party (PDP). The PDP ruled Nigeria between May 29, 1999 and May 29, 2015. The party, its leaders and members were accused of massively looting the national purse. Some members of the party have been arraigned before the courts in Nigeria while others have been

declared wanted by the Economic and Financial Crimes Commission (EFCC). Some “smart” former PDP members who were alleged to be corrupt who are either being investigated or have their cases in court have crossed the divide and joined the APC. This has given them some respite from either further investigation or persecution. Virtually all those being investigated or prosecuted are members of the PDP. There are legions of members of the APC who have erred in the past three years of the Buhari-led government who were caught red-handed for corruption who were not even investigated, let alone prosecuted. Babachir David Lawal, former Secretary to the Government of the Federation, is a classic example of the double-speak in the fight against corruption. Lawal was suspected, investigated and found culpable. He was never prosecuted. He was simply asked to go and sin no more. “He was simply told, just go and remain incommunicado”, a friend who understands the power-play in the Presidency said that was what he was told. If Buhari wins the 2019 poll, would anything change? Yes. APC has promised Nigerians change to the “Next Level”. In the run up to the 2015 elec-

tions, Patience Jonathan, wife of ex-President Goodluck Jonathan, while she campaigned for her husband’s re-election bid asked Nigerians to ask APC members and leaders to define the change they were promising Nigerians. Three years down the line, Nigerians now know the change promised them by the APC. The next level heralds more hardship for Nigerians. President Buhari said so. He has seen it that his government does not have the capacity to mitigate whatever challenges that Nigerians will face in the years ahead, especial with oil price heading south. As usual, after May29, Buhari will retain the current underperforming ministers. If he does not retain them, it means Nigeria will not have ministers until December, 2019. Heads of departments and agencies will remain; those in acting capacity will continue to act. Why? The president does not have the zeal, do we say, the capacity to make new appointments. Again, the only changes that will happen in appointment will be in the Presidency: Lawal will return as Secretary to the Government of the Federation and Lawal Musa Daura will return as the Director-General of the Department of State Security Service (DSS). Currently, there are 20.93

million unemployed Nigerians. This figure will increase. Why? The government will introduce new measures aimed at “fighting corruption” that will disrupt the economy further. At the inception of this administration, the Treasury Single Account (TSA) was implemented to fight “corruption”. This was the beginning of the disruption of the economy. Over 4,000 bank workers were laid off at the start of the implementation of TSA as the entire banking system shutdown their public sector accounts departments. The economy will nose-dive deeper and more Nigerians will find it difficult to feed. There is a growing number of people eating from garbage bins on the street now. My fear is that those who throw edible items into the garbage bins will be so poor that there will be nothing to throw away. More “corrupt” PDP members will join the APC to avoid prosecution. They will be crawling like the biblical Nicodemus to See Adams Oshiomhole, the ‘military commandant’ of the APC, to beg him to allow them to join the APC. Don’t ask me what herdsmen will do to Nigerians. Your guess is as good as mine. Religious and tribal fault-lines in Nigeria will widen. This is not a prophecy. Let Buhari prove me wrong.

NEWS

Ocean Marine distances self from illegalities in Trans Forcados Pipeline surveillance contract OLUSOLA BELLO

cean Marine Solutions Limited (OMS) has distanced itself from any illegality concerning the award of Trans Forcados Pipeline Surveillance contract, as being alleged by Eraskorp Nigeria Limited, another oil servicing firm. The company, while responding to claims by Eraskorp Nigeria Limited in the media that the contract was laden with corrupt practices, said it got the contract through legal and due processes. It stated that ordinarily it would not have responded to the publication but in the interest of the general public who have been presented with a publication that is “riddled with untruths, inaccuracies and fabrications which we believe serves no utilitarian purpose than to undercut the reputation and goodwill of the company. “We counsel that any allegation of corruption by Eraskorp should be directed at the rel-

evant anti-graft agency (ies), rather than co-opting the instrumentality of the media to conduct a medial trial that relies on pedestrian, half baked, and inaccurate allegations, devoid of factual evidence. “OMS pride itself on it robust ant-corruption policy, and for the avoidance of doubt, the company does not engage in any form of corrupt practices, economic crimes, financial crimes and/or acts of economic sabotage, specifically, the award of surveillance contract for the Trans Forcadoes (TFP) to OMS followed due process, with no wrong doing, illegality, or illicit activities underpinning its award.” Ocean Marine Solution, also refuting the allegations through the media, said it records of contribution to Nigerian economy, through stellar services were clear. “We categorically state that we are proud of our work in assisting the Nigeria National Petro-

leum Corporation (NNPC) in a number of pipeline surveillance mandates, including our impressive performance surveilling the Bonny- Port Harcourt and Warri Escravos evacuation lines.” It said despite the allegations its efforts that could be independently verify were directly responsible for an increase in revenues for Nigeria and a significant reduction in what had become recurring cost in repairing damaged and/or vandalised pipelines. The management of the NNPC had recently proffered informed perspective on the award of oil infrastructure surveillance contract to an indigenous firm, Ocean Marine Solutions for the protection of the strategic 87-kilometre Trans Forcados Pipeline (TFP). The NNPC in a detailed press release by Ndu Ughamadu, its group general manager, Group Public Affairs Division, explained that the decision to assign the TFP surveillance

package to Ocean Marine Solutions was reached after consideration of huge losses on TFP and rigorous appraisal of the company’s impressive record of performance on the Bonny-Port Harcourt and Warri-Escravos crude evacuation lines. The Corporation clarified that the new contract, which requires the contractor to pay for any damage to any inch of pipeline under its watch, offered immeasurable benefits to the NNPC, its Joint Venture partners, the host communities and the entire Federation. According to the NNPC, faced with massive losses in projected revenue, stakeholders in the TFP, which today account for daily production throughput of over 250,000 barrels of crude oil, were unanimous in the decision to seek better ways of ensuring reliability and availability of the line. “In 2018, we lost over 60 days of production due to incessant breaches on the TFP despite having a security contract in place.

In terms of production numbers, this translates to over 11 million barrels of crude oil which on face value equates to over $800m in lost revenue to all the stakeholders in the matrix which includes: NNPC, its Joint Venture partners and the Nigerian Federation,” the Corporation stated. The NNPC stated that no responsible business entity or government would allow this level of haemorrhage to subsist without acting swiftly to protect the enterprise from further bleeding. The Corporation said based on the above scenario, Ocean Marine Solution was assigned to handle the TFP under the proof of concept arrangement which is yielding great results in the Bonny-Port Harcourt and Escravos-Warri crude evacuation lines. Under this package, the surveillance company is obligated to protect the lines and bear the cost of repairs if and when there is any breach to the pipeline.

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INSIGHT/INNOVATION

My takeaways from Budget 2019

ATIKU ABUBAKAR Atiku Abubakar is former Vice President of Nigeria and Presidential candidate of the PDP.

resident Muhammadu Buhari presented the 2019 Budget Proposals to the Joint Session of the National Assembly on Wednesday 20 December 2018. Its key aim is to, according to the President, ‘further place the economy on the path of inclusive, diversified and sustainable growth in order to continue to lift significant numbers of our citizens out of poverty’. The 2019 Appropriation Bill proposes an aggregate expenditure of N8.83 trillion for the year of which N4.04 trillion is recurrent, N2.31 trillion capital and N2.14 trillion will be devoted to debt service. The planned spending is lower than the 2018 budget by N300 billion. Allowing for 11% inflation rate, its real value is N7.95 trillion. The proposed budget as presented is fundamentally flawed. It deliberately ignores and fails to address current realities and pretends, as Mr. President asserts, ‘we are on the right direction’. On the contrary, the 2019 budget is built on very shaky foundation and makes very generous, often wild and untenable assumptions which pose significant risks to its implementation. It will be a disservice to the country if we ignore these fundamental flaws. Several inaccurate claims litter the budget document - all, I think, in an attempt for Mr. President to whitewash the regime and hide their monumental failure to improve, even minimally, the welfare and living standards of much of the population. I see the rhetoric of ‘inclusive, diversified and sustainable growth’ as no more than an amplification of the APCled government’s renewed propaganda to hoodwink the citizens into believing that there is ‘light at the end of the tunnel’. Few of these claims by Mr. President are that ‘we have recorded several successes in economic management’, that ‘the economy has recovered from recession’, that ‘foreign capital inflows including direct and portfolio investments (have) responded to improved economic management and that ‘we have had a sustained accretion to foreign exchange reserves’ etc. In reality, the economy is yet to recover from the 2016/2017 recession as it remains severely stressed, extremely fragile and vulnerable to external shocks. GDP growth declined from 2.11% in 2017 to 1.9% in Q1 and to 1.5% in Q2 of 2018. In Q3 of 2018 there was only a marginal increase of 0.3% to 1.8%. In its current form, the local economy is not dynamic enough to journey to their so-called NEXTLEVEL. For the year 2019, a general slowdown in the real growth rates of economic activity in both the oil and non-oil sectors has been projected at 1.9% by the World Bank. This rate is well below the 2019 budget projection of 3.01% and is not enough to create the needed jobs for the growing population of the country

or for the attainment of the SDGs. As a sign of the weakness of the economy, the rate of unemployment has increased from 18.8% in 2017 to 23.1% in Q3 of 2018. Today, close to 20 million people are unemployed compared to 7.2 million people in 2014. These high rates of unemployment represent both a significant distortion in the economic system and a lost opportunity for critical national development and could potentially threaten social stability. Sadly, Foreign Direct Investment (FDI) is limited and is declining. In Q3, 2018 capital inflows were US$2.855.21 billion showing a decrease of 48.21% compared to Q2 2018 and 31.12% decrease compared to Q3 2017. Indeed, its current level is the lowest since Q2, 2017. Value of Foreign Portfolio recorded at US$1.7 billion represents a decrease of 58.2% compared to Q2 2018. It also represents a 37.7% decrease compared to the Q3 of 2017. Finally, it is very significant to note that capital importation in 2014 (Q3) was US$6.5 billion and in 2018 (Q3) US$2.9 billion. This shows US$3.6 billion or 55% decline since the regime came into power. So, contrary to Mr. President’s assertion, capital importation actually shrinks! In reality Mr. President should expect no less. It is a fact that under his watch and resulting from his actions or inactions, investor confidence in the economy has waned like never before in Nigeria’s history. Nigeria remains an uncompetitive economy as demonstrated by the recent World Economic Forum (WEF), Global Competitiveness Index which positions Nigeria as 115th of 140 Countries. The Report shows that Nigeria has moved three places down, contrary to Mr. President’s claim that ‘we are moving in the right direction’. Nigeria remains one of the most difficult places to do business as evidenced by the massive outflows of capital in recent times. Yes, we have seen some increases in gross reserves. However, the so-called ‘successes’ recorded did not emanate from any coherent and comprehensive economic policies of the Federal Government. The ‘sustained accretion’ to foreign exchange reserves resulted from increases in international prices of Brent Crude and foreign borrowing. Given our total dependence on the oil sector for foreign exchange earnings, any turbulence in the international oil market will lead to reversals. This cannot be counted as ‘success’. The acclaimed ‘success’ was simply by the Grace of God. Even Mr. President’s acclaimed successes in agriculture can be interrogated. In spite of the so-called ‘increased investment across the entire value chain from agricultural inputs to farming and ultimately, food processing’, agricultural growth is well below historical levels. The growth in agricultural production declined from 3.48% in Q3 2015 to 1.91% in Q3 2018. Similarly, in 2018, growth has been declining from 3% in Q1, to 1.19% in Q2 and 1.91% in Q3. There is little evidence to show that ‘increased investment’ in agriculture has yielded positive results. This brings us to what the key question is: can the 2019 budget place the economy on the path of inclusive, diversified and sustainable growth in order to continue to lift significant numbers of our citizens out of poverty as PMB claims? Here are 6 reasons why it cannot. First, the 2019 is built on a very shaky foundation. It seeks to consolidate on the ‘achievements’ and ‘successes’ of the 2018 budget. However, the 2018 budget was itself poorly implemented. Actual revenue collected was only N2.84 trillion (as at September 2018) against projected revenue of N7.17 trillion. This implied that as at September 2018, only approximately 40% of projected revenues were realized by the Federal Government. Similarly, by December 14 2018, only N820.57 billion was released for capital spending out of a projected expenditure of N2.652 trillion. This implied that only 31% of the capital budget was

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In reality, the economy is yet to recover from the 2016/2017 recession as it remains severely stressed, extremely fragile and vulnerable to external shocks. GDP growth declined from 2.11% in 2017 to 1.9% in Q1 and to 1.5% in Q2 of 2018. In Q3 of 2018 there was only a marginal increase of 0.3% to 1.8%

implemented. This would impact negatively on growth, jobs and poverty. With such a dismal budget performance, the economy would not have had the capacity to grow, generate wealth and jobs. Secondly, the 2019 budget is a business as usual budget. The Federal Government keeps repeating the same mistakes but expects different results. For example, although the current resource position remains precarious, government does not intend to introduce significant fiscal restructuring. Thus, in spite of dwindling revenues, subsidy on PMS will continue (US$1 billion is budgeted for that); Government does not intend to introduce any reforms in the foreign exchange market as multiple exchange rates will be maintained thus given away between ₦300 billion and ₦800 billion to opportunists, rent-seekers, middlemen, arbitrageurs, and fraudsters; and finally, the budget is overwhelmingly recurrent, with capital spending taking the back seat. Thirdly, 2019 Budget is based on grossly exaggerated assumptions. They are not able to put in place any coherent and comprehensive policies to give hope that these assumptions can be met. For example the Oil price benchmark has been pegged at $60 per barrel and domestic oil production will be maintained at 2.3 million barrels per day. Of recent, the oil market has been turbulent and Brent Crude sells at less than US$60. There are projections of over-supply resulting from US shale production and pressure on Saudi by the US not to cut production. With regards to local production, we all know that throughout 2018, average production was 1.95 million barrels per day. Indeed, the latest report from OPEC suggests that Nigeria will be required to cut production to 1.65 million barrels per day. This implies that revenue targets to implement the budget will not be met. The most laughable assumption is that real GDP will grow at 3.01 percent. When indeed, GDP growth has been sluggish, with a projection of 1.9% in 2019. The government cannot cut spending and expect the economy to grow. Fourthly and very fundamentally, 2019 Budget is very small. The size of the budget is not sufficient to stimulate growth of the economy, create jobs and alleviate poverty. The planned total expenditure of N8.83 trillion is lower than 2018 budget by approximately N290 billion. The Federal Government is contracting the economy whereas in a period of recession, governments MUST spend more to have meaningful impact on jobs and poverty. The budget is also very low in relation to the size of the Nigerian economy, which is estimated at approximately N150 trillion. This means that the 2019 budget is barely 6% of GDP. (Compare Bangladesh 15.30%, India 12.74% and Afghanistan 11.9% in 2017). Again, this will have no meaningful impact on jobs

and poverty. Fifthly, Nigeria’s fiscal crisis persists and fiscal position of the Federal Government, and by extension, the states and local governments remains precarious. First, projected revenues of N6.97 trillion are 3% lower than 2018 and second, the oil sector continues its dominance as it contributes 54% of the budget revenues. The non-oil sector is expected to contribute only 20% of the budget revenues. There are no coherent and comprehensive plans to expand the resource horizon of the Federal Government. As a result of the brewing fiscal crisis, budget deficit remains high at N1.86 trillion. This is equivalent to 21% of the budget and 1.3% of GDP. The implication is that the Federal Government will need to borrow more in 2018 to implement the budget. Debt Service is already putting a strain on government revenues. The sum of N2.14 trillion has been provided for debt service. This means that 30% of projected revenue will be used in debt service. Six, as has been with previous budgets, recurrent costs and debt service will take a lion share of the budget as against capital expenditure. Capital expenditure will be only 23% of planned expenditure. On the other hand, 24% of the budget will be spent on debt service and 46% on overhead and personnel costs. Thus over 70% of the budget will be devoted to recurrent costs and debt service. This will not grow the economy and create jobs. It is therefore putting it mild to say that the 2019 proposed budget is not developmental, will not pull Nigeria from the abyss and may, indeed accentuate the misery and hopelessness the Nigerian people have lived with since 2015. There must be an alternative to this Budget. Nigeria needs a government which understands how to run the economy in order to Get Nigeria Working Again. Fortunately for the country, the Atiku/Obi team has exactly that capacity and experience. For the avoidance of doubt, an Atiku Presidency, come 2019, will present to Nigerians a people’s budget that will prioritize and focus on the twin challenges of unemployment and poverty. Nigeria’s high rates of unemployment, poverty and inequality represent both a significant distortion in the economic system and a lost opportunity for critical national development and could potentially threaten social stability. Resolving these thorny issues requires significant departure from the APC-led government’s ways of doing things. #TheAtikuPlan will accelerate growth rather than contract the economy to steer Nigeria out of recession and to create opportunities for our youth to be selfemployed. The private sector will be a critical driver of economic growth and #TheAtikuPlan will therefore act expeditiously to create a supportive and enabling environment for businesses to invest and thrive. We shall disrupt and improve the budgeting process to facilitate more effective budget impact on the economy by increasing, significantly, the share of capital expenditure in the budget to a minimum of 40% in the first instance. To facilitate increased capital spending, we shall improve spending efficiency by cutting on recurrent expenses, by ensuring the judicious utilization of all borrowed funds for economic diversification and infrastructural development and by promoting more Public Private Partnerships in critical infrastructure funding. #TheAtikuPlan recognizes that Nigeria’s current unprecedented fiscal crises, characterized by rising debt levels and revenue short falls, have resulted largely from APC-led government’s poor management of resources. We shall therefore undertake significant fiscal re-structuring including a review of the current subsidy regime and of the monumental losses to the economy arising from leakages from the operation of the foreign exchange market, in order to channel resources into the critical sectors of the economy. #TheAtikuPlan Will Get Nigeria Working Again.

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