BusinessDay 25 Dec 2019

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news you can trust I ** wednesDAY 25 DECEMBER 2019 I vol. 19, no 464

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DSS frees Sowore after FG’s directive, Dasuki’s fate uncertain JAMES KWEN, Abuja

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he Department of State Services (DSS), in compliance w ith Fe deral Government’s directive, on Tuesday freed Omoyele Sowore, the convener of #RevolutionNow protest, from detention after four months.

The release of Sowore came Continues on page 38

Seasons Greeting

L-R: Raymond Murphy, CEO, Mouka; Sanni Liman, commandant, Nigerian Armed Forces Resettlement Centre; Bashir Salihi Magashi, minister of defence, and Onari Duke, wife of former governor of Cross River State, at an event in honour of ex-service men at the Nigerian Armed Forces Resettlement Centre, Oshodi, Lagos.

Dying in instalments: How a polluting company was pressured to reform (4)

One year after the first article in this series detailed how a lead recycling plant in Ogijo, Ogun State, polluted soil, air and water sources in the community leading to the ban of imports of recycled lead from Nigeria into Europe, this follow-up report highlights how the company has been forced to clean up the environment, write ISAAC ANYAOGU & PETRA SORGE.

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hey were all gaily dressed sitting under the shade of three canopies; some took up a song intermittently accompanying the allur-

BD Investigative Series ing rhythm of a talking drum.

There were food and drinks and their radiant smiles seemed quite out of a place in a com-

munity that had always known abiding pain.

It was a ceremony to mark the installation of a 500KVA

transformer by Everest Metals Ltd for residents of Ipetoro and Ewurukun community in Ogun State, an hour away from Lagos.

For the company, this is both a Continues on page 38

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

LCC not raising toll fare, but going full cashless on LekkiIkoyi Link Bridge P. 2 Fighting corruption alone cannot guarantee economic development P. 32

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news Buhari, Gbajabiamila, Obaseki, others preach peace at Christmas JAMES KWEN, Abuja

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resident Muhammadu Buhari on Tuesday felicitated with Christians and all Nigerians “on the joyous occasion of Christmas of the year 2019”.

Buhari, in a message he personally signed, enjoined all Nigerians to imbibe and demonstrate the essence of the season of love – goodwill among all the ethnic groups in the country.

He called on Nigerians to give and share; strengthen the bonds of brotherhood and good neighbourliness, and focus on “all that binds us together as one united country”.

“I, therefore, urge our compatriots to shun all actions which negate the spirit of the season. However, celebrating the spirit and virtues of Christmas need not be a one-day affair, but rather, ought to continue into the New Year,” Buhari said.

“It is in line with the spirit of Christmas that I call on all elements whose actions are opposed to what the season represents, especially

insurgents, terrorists, armed robbers, kidnappers and economic saboteurs, to retrace their steps and join people of goodwill and common humanity. If they fail to heed this call, they will meet their end as the armed forces, security and law-enforcement agencies are poised now to confront and defeat them,” he said.

In a similar message, Femi Gbajabiamila, speaker of the House of Representatives, urged Nigerians, especially Christian faithful, to offer special prayers for the continuous unity and peaceful coexistence among the citizens.

Gbajabiamila also urged Christians to use the occasion for the celebration of the birth of Jesus Christ to pray for the country to overcome its challenges, including insecurity in some parts of the country.

“I wish to join millions of citizens to congratulate my Christian brothers and sisters for witnessing and marking this year’s Christmas peacefully. Christmas is a period of merrymaking, but beyond that, it is also a period for us all

Continues on page 38

Correction and clarification

LCC not raising toll fare, but going full cashless on Lekki-Ikoyi Link Bridge CHUKA UROKO

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or reasons bordering on enhanced, efficient, flexible and quality service delivery, Lekki Concession Company Limited (LCC) says it will implement the full-scale of cashless payment beginning from January 1, 2020.

The new initiative will, however, not bring about an increase in the toll paid on Lekki-Ikoyi Link Bridge, meaning the fare will remain the same.

This is contrary to our story on December 24, titled “Concessionaire explains why motorists have to pay more on Lekki-Ikoyi Link Bridge”, which erroneously said that Lekki Concession Company Limited (LCC) would be raising the toll paid by motorists on Lekki-Ikoyi Link Bridge by 100 percent beginning from January 1, 2020.

BusinessDay apologises for the mix-up and regrets any embarrassment the initial publication may have caused the concessionaire and the motoring public.

While the toll remains unchanged, only electronic payment systems that include eTags, prepaid cards, contactless cards and payment vouchers would be acceptable as

means of payment, according to LCC management.

Yomi Omomuwasan, managing director of LCC, said there would be additional convenience services offered by LCC including 24/7 security and traffic patrol services, free breakdown/recovery assistance, ambulance services, LCC dedicated police, LASTMA, Man O’ War, amongst others.

“We offer these services free of charge to road users irrespective of if you paid tolls or not. Our aim is to ensure a safe environment and ease of traffic flow on the expressway,” he assured.

The Lekki-Ikoyi Link is an engineering marvel constructed by the Lagos State government under Babatunde Fashola as governor. It was aimed to serve dual purposes including decongesting the Lekki-Epe Expressway and also enabling motorists to connect to the mainland through Ikoyi.

“We deemed it fit to upgrade the tolling system in order to achieve efficiency in traffic management on both the Lekki Road and Lekki-Ikoyi Link Bridge,” Omomuwasan explained.

H e e x p l a i n e d f u rContinues on page 39 www.businessday.ng

Seyi Makinde, governor, Oyo State (sitting), signing the 2020 budget. With him from left, Adeniyi Farinto, commissioner for budget and planning; Rauf Olaniyan, deputy governor; Debo Ogundoyin, speaker, Oyo State House of Assembly; Olubamiwo Adeosun, secretary to the state government, and Akiola Ojo, commissioner for finance, at executive chamber, Governor’s Office Secretariat, Ibadan.

NLNG Train-7 chances dim as FG fails to present letter of guaranty …We’re fully committed to realising the project, says NLNG Olusola Bello

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he chances of the multibilliondollar Nigeria Liquefied Natural Gas (NLNG) Train 7 project taking off are getting slimmer as the Nigerian government is yet to meet the condition put forward by other investors before they would take the Final Investment Decision (FID), sources have told BusinessDay. Some industry operators said if the project is

not signed off by December 31, 2019, that may well be the end of it. This, they said, is based on a clause in the agreement between stakeholders involved in the project which said if the FID is not taken by this year-end, Nigeria can as well forget about it.

The implication of not going ahead with the project is the loss of the expected $9 billion revenue from it for the government.

The 10,000 direct jobs and 40,000 indirect jobs to ease the youth unemployment

challenge in the country would also be lost.

But the Nigeria Liquefied Natural Gas Limited said it remains fully committed to realising the Train 7 project.

“NLNG remains fully committed to realising the Train 7 project which is expected to increase its production capacity by 35 percent as well as boost its competitive edge in the global LNG market,” the company said in a response to BusinessDay enquiries.

“As part of activities leading to the Final Investment Decision, NLNG recently signed Gas Supply Agreements with its gas suppliers. Other activities leading to achieving FID are in progress,” it said.

The Train-7 project is located at the Bonny Island LNG facility in the Niger Delta. Once complete, it would include a new liquefaction unit, an 84,200m3 storage tank, a 36,000 m3 condensate Continues on page 39

CBN’s transfer fee cuts upturn revenue model for fintechs FRANK ELEANYA

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he Central Bank of Nigeria may have handed Nigerian bank customers a Christmas present with the slashing of most charges and fees for banking services, but it also gave banks a competitive advantage against fintech companies with lower capital base relying on low fees to grow adoption.

With effect from January 1, 2020, charges on electronic funds transfer, for instance, will attract N10 for transactions below N5,000; N25 for those between N5,001 and N50,000, and just N50 for those above N50,000.

The new Guide to Charges

by Banks, Other Financial and Non-bank Financial Institutions was contained in a circular issued by the apex bank on Sunday, December 22, 2019.

“In a bid to encourage

financial inclusion and to reduce the burden of bank charges on consumers of financial service, CBN has issued a revised Guide to charges by Banks, Other Financial and Non-Bank Financial institutions in response to the evolution in the financial industry over the last few years,” the apex bank said on its twitter handle on Monday.

The new guide also includes a downward review of charges for electronic banking transactions, removal of Card Maintenance Fee (CAMF) on all cards linked to current accounts, reduction in the amount payable for cash withdrawals from other banks’ Automated Teller Machines (Remote-on-us), review of other bank charges to align with market developments, and inclusion of new sections on accountability and responsibility and a sanction regime to directly address instances of excess,

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unapproved and/or arbitrary charges.

Johnson Ajani, a digital banking expert, noted that a review of the percentage of digital banking income compared to banks’ Profit Before Tax over the last five years shows that digital banking is better rendered as a tool to recruit bigger businesses rather than a money-making machine.

“Banking is financial intermediation, not card maintenance charges and co,” Ajani said. “CBN took the right decision to force banks to actually do the banking business.”

Mobile payment platforms such as OPay, PalmPay and digital banks like Kudabank and Carbon have long tapped into customers’ complaints of arbitrary bank charges to convince them they were a better alternative.

OPay’s promise of N10 transfer fees early in 2019 for all transactions – at a time @Businessdayng

banks were charging N52 – brought it instant fame and $5 million in daily transaction volume as well as nearly $200 million in two rounds of investing in 2019.

Kudabank, a Nigerian online-only bank, describes itself as ‘Bank of the free’ because of its offer of 25 free interbank transfers every month for all its existing customers and everyone who a Kuda account before January 1, 2020. The digital bank now counts as achievement over N6.5 billion worth of transactions processed through its platform and $1.6 million investment.

With the new Guide to Charges by the CBN, these fintech companies would be scrambling for new strategies to either retain old or attract new customers as banks have every reason to intensify their drive to grow their customer base.

•Continues online at www.businessday.ng

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Alfred Okoigun and the fortune at the bottom of the pyramid Small Business handbook

Emeka Osuji “The moment we (the Nigerian elite) agree that ordinary Nigerians deserve to live well, then we will discover that there is business opportunity everywhere in Nigeria”. - Alfred Okoigun, Founder & Group CEO, ARCO Group he above statement was made by Okoigun, in response to a question as to how he keeps his innovative group going. It points to the fact that businesses that intend to endure must have the consumer at the bases, of their foundations.

There is something fundamental in this statement. For those who may not know him, Okoigun is one of the most successful private entrepreneurs in Nigeria – those that are truly silent achievers. Nigerians use the term selfmade man, loosely and generally, to describe mostly, people whom they consider to have worked hard and become successful, apparently, without any significant push from anyone else.

Well, we all know that people succeed through the assistance of others. This fact sometimes makes the concept of self-made man often a controversial one. However, if anyone in Nigeria can claim to be a self-made man, that person is Alfred Okoigun.

From way back as youths, those of us close to Fred knew he was passionate and consistent on things concerning oil and gas. The Petroleum Training Institute (PTI), Warri, his school, can tell that he is probably the most illustrious alumni. The only other thing anyone would notice was the he was sober and very gentle.

Given what he has accomplished for the oil industry, PTI and hundreds of Nigerian youths, I believe it is a service

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to this nation to make his views available to both present and future entrepreneurs in Nigeria.

Okoigun, who was recently conferred with an award by the Old Boys Association of Government College Ugheli, in recognition of his many achievements in the oil industry, made the quoted statement during the interviews he granted on the award. What he said, in effect, was that poverty in Nigeria is compounded because the elite do not think that other Nigerians deserve the good life. The general belief is that the average Nigerian being poor is local, unexposed to good things of life and does not deserve the good things of life; according to him is the bane of Nigerian business. Accordingly, there is little or no serious thinking going on about the economic condition of the dominant population component by businessmen, and hence no innovations and breakthroughs for business.

In response to a question as to how he creates the novel ideas that seem to always underline his many innovative and successful ventures, especially in the oil industry, Fred said that Nigeria is full of business opportunities but that our businessmen do not see the opportunities because of their mind-set. In other words,” the moment our entrepreneurs and leaders see ordinary Nigerians as human beings equally deserving of the good life, which the rich enjoy, they will see that there is much business opportunity. Doing things with the poor in mind opens new avenues for business. It unearths the most lucrative of business opportunities”. This sounds like the Fortune at the Bottom of the Pyramid thesis.

We completely agree with Okoigun.

The money minting business called GSM telephony is an example. Who would have thought that Nigerians, rich and poor, could downgrade other things they need to keep their telephones working. It had been said before in this country that telephone was not for the poor. Actually it wasn’t. I got my first private telephone line when I became Special Adviser to the Minister of Finance! And I was already a bank manager before that appointment.

Today, multibillion naira opportunities have opened due to the GSM explosion,

which is actually driven by the masses.

And almost all Nigerians, rich, poor; even beggars now have phones. And the service providers can’t thank God enough.

The same thing will happen the moment our leaders agree that we deserve steady electricity. Those who want this country dead have continued to defer the provision of regular electricity to the people, knowing that the prosperity that will happen in a 24/7 electricity economy Nigeria will dwarf every economy in all of Africa and even go further. This is why it is such an irredeemable shame that the last administration allowed economic terrorists to set up and shove out the world-acclaimed Robotics expert, Prof Berth Nnaji, who, not only had a clear vision of what he wanted to do in the power sector but also had the intellectual capacity (a rare attribute in many high places today) to deliver it. Nnaji created one of the first private power producing companies in Nigeria. As the Senior Regional Lending Officer in the bank he approached to finance the project, I found it novel and highly sophisticated, needing creative financing techniques.

I am still proud to have superintended the initial aspects of what is today one of Nigeria’s leading power provision idea by Geometric Power.

Several years after Jonathan, the enemies of Nigeria are still in control of the power sector. Darkness has regained momentum and Nigeria continues the foolish ambition of building a modern industrial state with energy from generators humming in homes, shops, offices and every imaginable human location. The lost opportunities and wealth trapped under the convoluted energy politics of Nigeria, in consort with corruption, is the biggest cause of poverty in our country.

It is the most potent source of the expansion of the bottom of the Nigerian pyramid. I have no doubt that Nigeria’s GDP will at least double if we have one third of the power supply our nearest competitor in Africa provides to its smaller population and economy. It will be our second independence after 1960.

There may be fortune at the bottom of the pyramid but that is only if you can reach the fortune and extract it. Fred

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I have no doubt that Nigeria’s GDP will at least double if we have one third of the power supply our nearest competitor in Africa provides to its smaller population and economy.

It will be our second independence after 1960

Taken from my new book: Entrepreneurship and Small business Development.

Dr Osuji is head of the department of Economics at Pan Atlantic University Lagos. eosuji@ pau.edu.ng @Emekaosujii

Don’t get weary I remember an old but hilarious Eddie Murphy movie called “Trading Places”. I won’t bore you with the finer details of the movie but it’ll suffice to say Eddie Murphy played a street smart petty thief who two wealthy but callous old men literally picked off the street. They went ahead to switch the fortune of this down and out criminal with that of their top employee, a disagreeable, snobbish but highly successful investor and placed a negligible, childish wager on the outcome. That was the value they placed on the two lives they heartlessly decided to play with.

The issue that concerns us here though is not that. It’s the fact that as Eddie Murphy’s character was being told while standing in his New York luxury apartment for the first time, that everything he sees there is effectively now his, he couldn’t stop himself from pilfering every item that took his fancy, when he thought no-one was watching and filling his pockets with them. And this he did with the trademark Eddie Murphy ear to ear guilty grin etched on his face. Yes, they were informing him all was now his but just in case, he wasn’t going to let this opportunity slip. He must take all he can, while he can. Poverty mentality.

If we know what’s good for us, we must as a matter of urgency check our leaning towards a poverty mentality. The way motorists switch from one lane to another as soon as they notice one lane appears to move an inch or two faster than the one they are on, to me is indicative of

a poverty mentality. Just as the way we make a dart to the exit door as soon as the plane lands as if, if we don’t do it now, we may never make it out. Truth is, despite the deceptive terminology, this progress hindering mentality is not an exclusive preserve of the poor.

Many well-heeled individuals have been fatally struck by this ailment too. No matter how much they have, it never seems to be enough.

There’s little difference between them and the motorist who feels he has to be at the very front at all times; seeing others ahead of him just makes him mad; he feels he must be losing somehow.

How? I really don’t know. All I know is that he must always feel like he’s winning. I guessed it’s similar to feeling you’ve been “chanced”. So he must do whatever it takes to get ahead as the end certainly justifies the means. To such people, all is fair in love and war; underhand tactics are allowed. Sportsmanship? What’s that? The name of the game is to grab whatever you can, as much as you can, every time you can. And you must do this any time such opportunity arises because if you don’t, you’ll feel you’re missing something; you must definitely be losing out to others in one way or the other.

Recently the Real Madrid team, including the players and coach, were given gifts by one of their sponsors, Audi, as is customary for them to do this time of the year. Each player and their legendary coach, Zidane, were asked to pick any Audi model of his choice. Ramos, the captain wasted no time in choosing the top

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of the range, the Audi A8 Quattro. What came as a surprise to me however is that Zidane and if memory serves me well, two of the players, Benzema, being one, chose the cheapest and smallest model. My reaction to this as a typical Naija man confirmed I’m in trouble. Chai! Naija has finally got me too; I just couldn’t understand why someone given a blank cheque wouldn’t go all the way! I’m not ashamed to admit that I was bewildered. Was I missing something?

After ruminating over it for a while I finally came to the conclusion that these people could afford to buy as many of these wonders on wheels as their hearts desire and since they very likely have several top end vehicles already, they just decided to pick the one they feel they need now. “Need” being the operative word. They feel no urge to grab it all just because they can.

There’s no sense of loss because they didn’t “make the most” of the opportunity. They won’t wake up tomorrow to feel Ramos somehow “chanced” them. How I wish our typical politician and even the average Nigerian could take a cue from this. No matter how much they grab and stash away it’s never enough. Classic poverty mentality. It’s all about want, want and want some more; leaving those with genuine needs with nothing. A wise man once said, “The earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person”. Woe to the nation saddled with people of such character in leadership.

No matter how bleak things currently look in

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Okoigun thinks we can only do so when we prioritize the needs of the poor, who constitute the bulk of our 200 million people. Our youth are known for their stamina, will-power and determination to succeed. The zeal to succeed forces them into the open sea of economic adventurism. They see the proverbial Golden Fleece when they imagine the population of their countrymen ready to buy up whatever they produce. They set up businesses and alas, they realize that they need to also set up mini power plants. They buy generators from the generator cabal, dissipating their meagre capital, to generate their own electricity.

Then they discover that they, like their parents in the homes they were raised, need to set up mini waterworks too. They drill boreholes only to discover, if they are in swamps like Lagos, that they also need treatment plants. Gosh, who is doing this to Nigeria?

Some voodoo water engineer helps them set up purification systems. But wait a minute, the water is salty and can only be purified by a mechanism which the voodoo water specialist calls Reverse Osmosis (RO) technology. On enquiry they are told that RO would cost a million naira in the minimum. They don’t have any more money to invest. They begin to produce substandard products and you call them fake and send the taxman and the Standards Organization (SON) after them. It is time to quit. They shut down and begin to free-lance either as street hawkers or touts – the type that follows you everywhere the moment you arrive Alaba, Idumota or Tejuosho market, claiming to have what you have not told him you want. Sooner or later they will either be Radicalised, Ariwanised, Oduanised or Biafranized. And you begin to prophesy about hate speech and insecurity, the root causes of which you appear incapable of understanding.

Character Matters with Daps

Dapo Akande our dear country and how everywhere we look, wrong appears to have been normalised, we should not get weary of talking to our children.

Words spoken now will by prayer take root now and because of this, they will also fly way ahead into their future, awaiting their arrival at that imminent moment when they’ll need to exercise the freedom of making choices on their own; choices that could make or mar their lives. At that moment, your earlier admonition may just be the only thing potent enough to steer them in the right direction. Like Theodore Zeldin once said, “conversations change the way we see the world and do indeed change the world”. It’s all about perception embedded in one’s mind-set.

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Akande is a graduate of the University of Surrey, UK, author of the acclaimed book: “The last flight: A personal journey to discovering values.” Contact: dapsakande25@gmail.com

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Charting the course of Nigeria’s future Olanrewaju Rufai

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lthough Nigeria’s Gross Domestic Product (GDP) is projected to reach $3.3 trillion by 2050, the gulf between the country’s reality and its undisputed potential has never been wider.

In fact, Nigeria has always been a nation of potential. When Nigeria achieved independence in October 1960, the nation was hailed as a beacon of hope for the African continent.

Almost sixty years afterwards, predictions of a glorious future are yet to be fulfilled.

Instead, the nation continues to grapple with basic economic problems.

As at this day, the Nigerian economy is yet to fully recover from its contraction in 2016. In addition, data from the Nigerian Bureau of Statistics (NBS) shows that the 2018 GDP growth rate was below 2 percent while inflation remains stubbornly high at 11.85 percent as at November 2019, a double whammy which means that for the average Nigerian, cost of living has increased while real income has declined.

Furthermore, despite promises to diversify the economy, the federal government remains reliant on crude oil for 90 percent of its revenues. The nation is also silently straining under the weight of its debt, as the national

debt stock has more than doubled in the last three years to over N24 trillion.

Currently, the federal government spends over half of its earnings on debt servicing, leaving little for infrastructure development. This in turn leads to the government taking on more debt to fund infrastructure, thus creating a vicious cycle of debt.

However, perhaps most alarming is the unprecedented rise in youth unemployment. Since 2015, the unemployment rate in Africa’s largest economy has soared, rising from 8.2 percent to 23.1 percent in the third quarter of 2018. For young people aged 15 to 35, the figures are even worse as 55 percent of the youth population are unemployed or underemployed. In addition to these galling figures, the nation continues to fail to prepare future generations for a fast-changing world, with over 10 million children currently out of school.

All of these paint a sordid picture for Nigeria. A combination of poor leadership, corruption and incompetence has resulted in a failure to diversify the economy, invest in critical infrastructure and harness the nation’s most valuable resource – its people.

Nevertheless, all hope is not lost.

An important first step in the process of rescuing the economy of our nation is the realisation that political will for restructuring is necessary for progress. There must be an urgent will to address pressing issues such as the nation’s reliance on oil earnings, the archaic land use act and the non-practice of fiscal federalism, all of which combine to hinder the nation from realising its potential.

Furthermore, all levels of government must incentivise and encourage private sector participation in various sectors of the economy and infrastructure development. The government must create an enabling business environment for small and medium-sized enterprises to thrive by making Nigeria a progressively easier place to do business. Far-reaching reforms which will encourage industrial manufacturing, technology and innovation in sectors where Nigeria can develop sustainable competitive advantages must be delivered. Non-oil sectors of the economy, in particular manufacturing and technology, must be actively encouraged via the implementation of supporting policies, while subversive acts such as multiple taxation of businesses and regulatory overreach must all be eliminated.

In addition, the nation’s ticking time bomb of youth unemployment must be resolved through the enactment of viable job creation policies and enhancement of labour productivity. This however will not be possible without sustainable investments in education and infrastructure development. Investments in education, particularly STEM education, are critical in order to prepare the young generations for the jobs of the future. In addition, there is a need for concerted effort to grow the economy. Given the current population growth and unemployment rates, the economy will need to grow 6-8 percent annually to reduce youth unemployment.

The need for infrastructure development for economic growth cannot be overemphasised. Therefore, while the

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An important first step in the process of rescuing the economy of our nation is the realisation that political will for restructuring is necessary for progress

Rufai holds a first class degree in Management and Masters degrees in Management and Finance. He is a finance and strategy analyst and can be found on Twitter @LanreRufai_.

The caring organisation – building a business with a soul

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he workplace is in need of care; care for the customers through excellent service delivery, care for investor through commensurate returns on investment and of course care for the employees for creating value for both the customers and the investors.

We can extend that by saying that our political leaders and by extension, leaders across all frontiers must build a country that cares for its people. Our definition of leadership must be service and legacy inclined.

This article is focused on the caring organisation. It explores issues such as diversity, the right of employees, sexual harassment protection and the requirements of the workplace for building an organisation with a human face; a business entity with a soul.

Following a four year research, *Jessica Pryce-Jones in his book Happiness at Work: Maximizing Your Psychological Capital for Success stated that “the average person spends more than 90,000 hours in their lifetime at work”.

This is time away from their most treasured relationships. Therefore this adventure of work must be worthy of their investment of time and trade off. This is not just in terms of monetary earnings or returns but also in the quality of experience of the journey, 7 days a week. The opportunity forgone must live up to its expectation.

Work without a doubt is an integral part of our lives, determining our level of prosperity, happiness and fulfilment. It is also a demanding part of our existence and nothing compensates for the demands than the feeling that we are “cared for” by those who are beneficiaries of our sweat, brains and stress. We want to know that not only does what we do matter, the individual in the value creation chain, matters as well.

“The duty of care” is a legal word that describes the obligation required of employers over employees. It means in summary that an employer has certain responsibilities to protect, nurture, and nourish the individual employee

in the course of the employment relationship.

One of the factors that underscore the importance of a caring organisation is the imperative of employee commitment in the economic transaction that happens in the workplace. There are two primary assets and instruments of performance that an employee brings to the workplace. These are competence (skills) and commitment (willingness), while competence is readily assessed during the recruitment process, unfortunately, commitment is harder to assess in a way that is sustainable. Simon Sinek in his book Leaders Eat Last stated that employee’s commitment cannot be demanded or compelled; it can only be earned and voluntarily offered by them. Unfortunately, an organisation that only focuses on the skills, ability and knowledge of its employees can only succeed thus far; it takes the motivation, confidence and desire of employees for an organisation to achieve sustainable success.

This is why organisations must be interested in both and it takes a posture of care to unlock the commitment of employees.

There are many sophisticated ways to define an organisation; a common thread will uncover the workplace as the web of connected relationships. At the top of the list is the relationship between the employer and the employee, followed by that between the employee and other employees, the employee and the customer, the employee and vendors etc.

These relationships are guarded and guided by laws, enacted nationally or locally. These laws are thereafter domesticated and operationalized in the workplace as policies, procedures and processes. A caring organisation must therefore have documented policies that protect the “needs” of its employees. Arbitrariness breeds abuse. This need will encompass situations or individuals that endanger the safety, dignity and humanity of employees; a hostile work environment epitomised by difficult, cruel

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and predating line managers, arising from the power dynamics in the workplace, which increases the vulnerability of individuals.

These needs also include the need for belonging and nothing helps foster a sense for belonging than group representation; which is the reason that organisations must be deliberate about diversity.

According to the Nigerian population, there are 371 tribes with male representation at 50.6 percent while female population is 49.4 percent. However, the workplace is organised in such a way that one gender and some tribes are not adequately represented as others. For example, according to the June report of the National Labour Force Demographics, the South West has 23.62 percent representation followed by the South- South (18.48 percent); the least is the North East (11.60 percent). This underrepresentation can be understood within historical, cultural and sometimes political context; however, it should not be ignored. It is on this premise that organisations must take cognisance of this balance of representation and invest in initiatives that address diversity of all kinds. There is a business benefit in leveraging the diversity of strength and strength of diversity for business sustainability. This also extends to how women are treated in the workplace and the need to protect the most vulnerable by tuning up the voices of those who champion the #MeToo movement because though its origin was the United States, the issues are universal.

One of the vulnerable categories in our ecosystem is the youth population, young people who are educated but still unemployed, who are passionate about making a difference but find that there is no commensurate infrastructure to make the translation of their dreams to reality an easy passage. Government must organise and execute concrete initiatives and policies around its agenda for the teeming

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federal government’s current focus on infrastructure development is laudable, the government must also realise that its resources are limited. Thus, it must encourage private sector participation in infrastructure development via public-private partnerships, concession agreements etc.

Subsequently, Nigeria’s ballooning debt problem must be swiftly addressed.

The nation is currently expending bulk of its revenues on debt servicing, thereby leaving nothing for infrastructure development which in turn leads to the government taking on more debt to fund projects. If left unchecked, the national debt stock might soon reach the level last attained prior to the debt relief in 2005. We only need to look at countries like Venezuela, Greece, and Zimbabwe to see how dangerous a public debt crisis can be. Therefore, the rising national debt volume must be tackled with urgency, perhaps starting with reducing government spending on recurrent expenditure.

Overall, fiscal prudence and investments in education and infrastructure are key to unlocking Nigeria’s potential.

However, this is only achievable with political will, implementation of market reforms and creation of policies which will improve the living conditions of a rapidly growing, young population.

The future of Nigeria is dependent on this. Otherwise, fifty years from now, we might still be describing Nigeria with the word potential.

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TUNDE-SUCCESS OSIDEKO

working population including entrepreneurs.

We must match the passion of our youth with the commitment of the government. There is an opportunity for corporate Nigeria to invest long term in the development of talent pipeline focusing on bridging the gap between classroom and the world of work. There should be more graduate development programs, internship programmes, career development clubs in secondary schools, adopt a school initiatives, career fairs etc. A quick win is to do away from practices that discriminate against age in recruitment; corporate Nigeria cannot distance itself from the impact of prolong industrial actions by various stakeholders in the tertiary institutions which in turn affect the average age of graduation. The wind of repercussion blowing across the world with the $11 million federal lawsuit settlement payment by Google on account of systematic discrimination practices is on its way to Nigeria sooner than later.

This is how we demonstrate compassion and teach the younger generation about empathy, loyalty, and patriotism beyond the classroom.

This is a powerful tool beyond theorisation of the subject. Actions speak louder than words.

Tunde-Success Osideko is Business Leader and Consultant. He has a degree in Mathematics from the University of Ibadan, and an MBA from Anglian Ruskin University United Kingdom.

He is an alumnus of IMD Switzerland, Gordon Institute of Business Science South Africa and has attended an Executive Education course at the Harvard Business School Boston. He can be reached via tundesuccess@theworkbooth.com; tundesuccess@gmail.com

12

Wednesday 25 December 2019

BUSINESS DAY

Editorial Publisher/CEO

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

A TIN for your bank account

T

he plan by the federal government to link various services to the taxman would have significant consequences for the country in the coming year. There are many upsides, but even more significant downsides in the socio-economic life of citizens. Government as a critical first step must outline a clear implementation schedule that shows readiness to grapple with the issues it will throw up.

Beginning in January 2020, citizens would no longer be able to operate bank accounts, renew or procure new Nigerian international passports or register new vehicles or renew existing licenses unless they show their taxpayer identification number (TIN). The TIN is proof of registration as a taxpayer.

A new Taxpayer Identification Number (TIN) registration system introduced by the Federal Inland Revenue Service in July 2019 is now part of the Finance Bill the Senate passed recently. The two-phased project involves a new Unified Tax

Identification Number (UTIN) and the Integrated Tax Identification System. They seek to assist taxpayers with easy verification of their TIN online, print their tax certificates and send it via email.

An overarching goal is to increase the tax base from 20 million to 45 million persons.

The route is through the amendment of Sections 33, 49 and 58 of the Personal Income Tax Act. Specifically, the Tax Clearance Certificate would now become one of the essential requirements for transactions across banking, immigration, vehicle registration and possible extensions.

Government is deploying the stick to not only grow but double the country’s tax base. Compulsion is the message of the new measures. Citizens must follow the legislation or find themselves out of the financial system.

On the positive side, the measures are likely to register a high degree of success. Compliance will happen even if it comes with grudges and grumbling. The citizen seemingly has no choice.

The first question, therefore, is

whether the federal government and its agencies that would implement the measures are ready and capable? We ask because of the experience with various schemes including the perennially unavailable national ID card or even the new national drivers’ license. The government would boastfully decree ownership of these items as mandatory but then fail in its duty of providing them as and when citizens need them.

The question has even more significance given the dire consequences of the measures. It threatens to cut off many citizens from banking services, deny others access to international passports etc. Should the availability of these essential services be encumbered with inhibiting provisions? Does it not constitute a denial of civil rights due to Nigerians?

The aggressive push for tax enrolment and compliance is commendable. However, taxation is a function of gainful activity. Only citizens who earn income pay taxes.

What are the prospects for this tax enrolment against the backdrop of an economy that witnesses daily

contraction and shutting down of big as well as large companies?

Default, unintended, is likely to be high in the immediate period.

The burden may fall on the many operators of small-scale enterprises, the mum and pop shops and street-side retailers who run the informal economy. In the last few years, Nigeria actively pursued financial inclusion with technology aiding the financial system to grow the number of persons utilising the banking system. When you add charges on mobile and online transactions to the demand for TIN or TCC as a basis for banking, we fear the effect on numbers of citizens participating in banking.

The upside is that taxation demands representation. The tax noose will compel engagement by citizens. They will ask questions and demand better answers than the system has offered thus far.

Above all, complete preparation is necessary and critical before the introduction and implementation of these measures. That preparation should include a period of communication, information and education.

HEAD, HUMAN RESOURCES Adeola Obisesan

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2019: The year of street protest Mass demonstrations around the globe show no sign of fizzling out

Gideon Rachman

C

ertain years in history — 1848, 1917, 1968, 1989 — conjure up images of street protests, mass demonstrations and revolutionary turmoil. When historians put 2019 in perspective, they may also declare it a vintage year for popular unrest.

In terms of sheer geographical spread, it is hard to think of a year to rival this one. Protests large enough to disrupt daily life and cause panic in government have broken out in Hong Kong, India, Chile, Bolivia, Ecuador, Colombia, Spain, France, the Czech Republic, Russia, Malta, Algeria, Iraq, Iran, Lebanon and Sudan — and that list is not comprehensive.

Yet all this turbulence has so far defied efforts to come up with a convincing global explanation.

One reason for the lack of analysis is that the 2019 rebellions have taken place in such disparate places — in wealthy global cities like Hong Kong

and Barcelona, as well as poor and relatively isolated nations such as Sudan and Venezuela. That makes it harder to join the dots and easier to cast doubt on the idea that there is anything global happening. There has also been no single iconic moment — no fall of the Berlin Wall or storming of the Winter Palace to capture the drama.

But while the 2019 revolts have not yet toppled a major world leader or government, they have certainly claimed some scalps. Street protests and strikes saw Evo Morales, the president of Bolivia, forced from office in November, after 13 years in power.

Other political leaders felled by mass demonstrations include Abdelaziz Bouteflika of Algeria and Omar al-Bashir of Sudan — both of whom fell in April after decades in power. (In the case of Mr al-Bashir, the military staged a coup, after months of protests.) The prime minister of Lebanon, Saad al-Hariri, was forced from office at the end of October after two weeks of mass protests. The following month, Adel Abdul Mahdi, the prime minister of Iraq also resigned, after several months of turmoil. In both Iran and Iraq, mass demonstrations have been met with shocking levels of violence — with hundreds killed on the streets of both countries.

The fact that several countries in north Africa and the Middle East have been convulsed by demonstrations, often at the same time, shows that there are indeed connections between popular upheavals in different countries. In two regions — the Middle East and Latin America — the protests are sufficiently

‘

The prime minister of Lebanon, Saad al-Hariri, was forced from office at the end of October after two weeks of mass protests

widespread to constitute a genuine regional upheaval, in which events in one country are clearly inspiring emulation in neighbours, in a manner reminiscent of the Arab Spring. The slogan made famous back then — “the people want the fall of the regime” — is once again being chanted. A common language in Latin America has also allowed news and images of unrest to spill easily across borders. In today’s connected world, ideas and slogans can even jump continents effortlessly — spread by smartphone.

Some Catalan protesters have been seen carrying the flag of Hong Kong and have adopted similar tactics — such as occupying an airport.

The spark for mass demonstrations has varied from country to country. In some places, it was an economic trigger — such as a rise in metro fares in Chile or a proposed tax on WhatsApp in Lebanon. In other places, the motive has been more clearly political — such as the new laws on citizenship and refugees in India, or a proposed extradition law in Hong Kong.

There are also certain common themes and tactics that emerge in location after location: protests at the harshness of everyday life; disgust at corruption and oligarchy; accusations that the country’s political and economic elite are outof-touch and unresponsive.

Social media is a powerful organising tool everywhere — allowing protesters to crowdsource grievances, slogans and tactics. In an effort to prevent protests going viral through social media, India has shut down mobile communications in some of the cities affected

by mass unrest.

But while large demonstrations are clearly more easily conjured up by social media, this new brand of “leaderless” revolt may also suffer from its spontaneity. Hashtags and internet memes are good at getting people on to the streets quickly — but they can disguise a lack of organisation and strategy.

Perhaps as a result, relatively few of the demonstrations have so far succeeded in toppling leaders — some that did succeed, such as those in Algeria, have continued even after a nominal change in government.

But the mass protests of 2019 show few signs of dying out. Indeed, as the year comes to end, they may be gathering force — with huge demonstrations, challenging the Indian government. The Modi administration’s response has been clumsy and violent — with prominent intellectuals arrested in front of television cameras and the police using brutal tactics against students.

All of that could easily fuel a spiral in unrest in India in the new year.

The Hong Kong protests also look set to rumble on, while confrontation in Spain and Chile could also intensify. Above all, as the last 12 months have demonstrated, social unrest is now repeatedly breaking out in unexpected places, for unanticipated reasons.

So while 2019 already qualifies for a place in the annals of street protest, it is possible that the really world-shaking year may turn out to be 2020.

FT

Family business: The collaboration of the advisory board and the board of directors (1)

I

n a 2018 report by International Finance Corporation, family businesses were stated to constitute the world’s oldest and most dominant form of business organisations. Also, these businesses represent more than 70 percent of the overall businesses and play a key role in the economy growth and workforce employment in most countries. The statistics show that 95 percent of family businesses do not survive the third generation of ownership due to lack of proper family governance structure. Structuring a business that is majorly controlled /owned by members of a particular family requires more than the general corporate governance practice.

Corporate governance practice in the corporate world recognises the position and functionality of a Board of Directors (BOD) who ordinarily should be a group of professionals who have excelled in their various fields and can bring a reasonable degree of relevant experience to the business. They should be saddled with the responsibility of developing business strategies and ensure sustainability and growth of a business.

While this looks adequate to solve any form of structural and governance issue in any organisation, the framework of a family business is such that the BOD is filled with family members and not necessarily experts in the relevant business. Therefore, the function of

the board is more regulatory compliant than result oriented.

Most experts find themselves resolving the difficulty in balancing the family factor of the business, with the required expertise to keep it running for multiple generations.

This is why an extra governance structure called the Advisory Board (“AB”) was created to cater to the peculiarity of family businesses.

The advisory board The advisory board is a group of experts in various fields with the responsibility of providing guidance and professional advice to owners of family businesses. This is in no way a replication or duplication of the BOD. The Business Dictionary refers to them as Individuals appointed to offer expert advice to the elected board of directors. The AB has no legislated regulatory function or framework but should be established and well regulated by the provisions of a family constitution.

Due to its subjective nature, there are no specific requirements for its composition, although it is often advised that the numbers be restricted to the required expertise needed to run the relevant business.

The family constitution establishing the AB should be formulated to clearly state the roles, guidelines and scope in which the AB would function. A major example of the provisions to be embedded in the fam-

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ily constitution is: to what extent should the BOD be compelled to take the advice of the AB? What level of interference should the AB have in achieving the objectives of the family business? What is the composition of the AB? What is the modus operandi of the AB? Collaboration of both boards A family business has two pillars holding it up; The Sociological & the Operational. In the structural framework of a family business, the BOD often focuses on the social issues affecting the business. This often centres on ownership structure, membership interference, legacy and the likes. This however can be said to be the cosmetic part of a family business.

The AB on the other hand should ensure the operational side of the business stays alive which effectively determines how long the family business survives. The technical decisions regarding the businesses’ challenges are what the AB focuses on. This means the AB must constitute of people who understand the space in which the family business operates, the uncertainty of the market trends, regulatory framework for the family business and the likes.

In a nutshell, while the BOD majorly keeps the business a family affair, the AB focuses on keeping the business alive.

These two bodies should then be brought into alignment by a well-articulated family

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OLANREWAJU OLUMIDE

constitution.

The reason many family businesses don’t go beyond the second generation at best, is the absence of the AB. Without the AB, the family business at some point will have to choose between opening the business up to external bodies for survival OR keeping it a family business but watch it die a natural death over time. The stark difference in the success rates of family businesses in developed economies and emerging markets can be directly traced to the presence or otherwise of the family governance framework, Advisory Board being a major component of such framework.

Another major component is the family constitution, which will be discussed in another publication.

This is a publication of Acuity Partners and is for general information only. It should not be construed as legal advice under any circumstance.

Olumide is a partner at Acuity Partners

@Businessdayng

14

Wednesday 25 December 2019

BUSINESS DAY

AGRIBUSINESS

In association with

ag@businessdayonline.com

Tackling Nigeria’s malnutrition Josephine Okojie

S

ince the 2017 devastating farmers-herders c r i s i s t hat h i t Egba village in Agatu Local Government Area in Benue State, things have been very difficult for Martha Ottene - a 37-yearold farmer, widow, and mother of four.

Martha who lost her husband and her trading business due to the crisis could barely feed her four children whose age ranges between four and twelve.

She was forced to depend on the small piece of land her late husband left behind as an inheritance for survival.

S h e c u l t i v at e s o n l y rice on the piece of land to feed her children and sell to generate income.

But she makes very little from the farm and are children always falling sick frequently.

Each time she visits the hospital with the children, doctors are always advising she feeds are children with food that contains essential micro-nutrients for their development.

“Each time I visit the hospital, the doctor always tells me to introduce other food to my children apart from rice,” Martha says.

“But how can I afford to feed them with other food when I do not have the money to do so?” she asked with pain in her voice.

Rice, which is a key staple in Nigeria is rich in carbohydrates, thiamin, and niacin but does not have the entire nutritional requirement for a child’s development.

Martha, like most Nigerians who feed daily on what they can find to satisfy their hunger needs and have been driven by poverty to consume a single staple crop-which, cannot provide the essential vitamins and minerals for a healthy living especially for her children’s development.

Most Nigerian families can hardly afford foods with high nutritional value, forcing them to feed mostly on starchy foods which are very high in carbohydrates and are often cheaper.

Owing to this, there

is a rise in the number of malnourished persons in the country, with available statistics indicating that over 90 percent of Nigerians undergo diverse forms of malnutrition.

This is coupled with the high rate of poverty which is not in any way showing any sign of decreasing.

Nigeria is currently the poverty capital of the world, with 98 million living in multidimensional or extreme poverty, according to the World Poverty Index.

Extreme poverty occurs when a person lives below $1.90 (N684) daily, and this is the case of most Nigerians.

Africa’s most populous nation has a prevalence of undernourishment to population rate of 12percent i n 2 0 1 6 , a c c o rd i n g t o Takw imu – a platfor m that provides data-driven analysis.

And the figure has been growing steadily since 2006, data from Takwimu shows.

According to the United Na t i o n s I n t e r n a t i o n a l Children’s Emergency Fund (UNICEF) about 2.5 million children under the age of five are malnourished and have stunted growth in Nigeria.

Experts say that Nigeria can change the narrative of the burden of malnutrition, especially in children, when the country fortifies its food through bio-fortification and fortifying processed foods with essential micro-nutrients as well as fertilisers.

Scientists have pioneered

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a simple but transformative technique to increase the nutritional value of staple food crops, such as sweet potatoes, beans, maize, and cassava amongst others in Africa.

These improved varieties of crops provide higher amounts of vitamin A , iron, and zinc—the three micronutrients identified b y t h e Wo r l d H e a l t h Organization (WHO) as most lacking in diets globally.

Recent studies have shown that crops pioneered by scientists have dramatically improved vitamin A status, reduce diarrhoea disease, improve visual function, and reverse iron deficiency in women and children.

Cu r re nt l y , m i n e ra l s or inorganic compounds are added to fertilizer by traditional plant breeding or biotechnology methods, though the application of fertilizers bio-fortified with micronutrients is the most simple of these methods, according to Kathleen L. Hefferon of the University of Toronto, Canada.

Also, a new variety of biotech rice, which can reduce the impact of vitamin A deficiency responsible for 500,000 cases of irreversible blindness and up to two million deaths each year, exists in many parts of the world and can help in Nigeria.

With biofortified rice, Mar tha’s children can get the daily nutritional

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re q u i re m e n t f o r t h e i r growth and development despite consuming a single staple food.

Biotechnology has enabled countries such as China, India and the United States to develop healthier foods for their people.

“With increasing vulnerability to hidden h u n g e r, a c o n d i t i o n where people do not get enough essential vitamins and minerals in their daily diets, cases of disabilities associated with micronutrient deficiencies, t h at i s, p o o r i m m u n e system, low IQ, diarrhea, night blindness, anemia among others, will continue to grow if not checked,” Paul Ilona, country manager, HarvestPlus, says.

“In Nigeria where about 50 percent of the population lives in the rural areas, micronutrient malnutrition will lead to increased pressure on national health budgets and a weak labour force which can be addressed with the adoption of biofortified crops,” Ilona says.

Biofortification is a feasible and costeffective means of delivering micronutrients to populations that may have limited access to diverse diets and other micronutrient interventions.

It is a process by which crops are bred in a way that increases their nutritional value, a procedure, experts @Businessdayng

say is much cheaper than adding micronutrients to already processed foods.

Also, fortifying food products with essential micro-nutrients will help Nigeria address its high malnutrition rate.

Shawn Baker, directorn u t r i t i o n p ro g ra m m e, Bill and Melinda Gates Foundation at a meeting last year with food processors in Nigeria stated that Nigeria has one of the largest burdens of malnutrition in the world which must be addressed.

“Most children in Nigeria do not get enough essential vitamins and minerals in their diets that the child needs for brain and immune system development, eyesight and building adequate blood supply,” Baker said.

“One of the most costeffective ways is to get essential vitamins and minerals to children-is by adding these micronutrients to the food we eat,” he said.

He n o t e d t hat f o o d fortification alone cannot tackle the problem of malnutrition in the country despite it is critical to micronutrient deficiency prevention and control.

In Nigeria and the rest of Sub Saharan Africa, micronutrient deficiencies are common among its people due to over-farmed, depleted and nutr ient lacking soils as well as high acidity problems among others, experts say.

“Nigeria is the country with the third-highest absolute number of children who are stunted globally.

The root cause of this is soil deficiency of micronutrients and inadequate dietary i n t a k e ,” s a i d I s m a i l Cakmak, a professor of Plant Nutrition, Sabanci University, Istanbul, Turkey at a training organised by OCP Africa for Agricultural reporters in the country.

“For Nigeria to reach targets levels of micronutrients in food, the country needs to combine fertiliser fortification with fortification of processed foods as well as biofortification. This approach is sustainable and the most effective solution to micronutrient deficiency in food,” Sabanci said.

Wednesday 25 December 2019

BUSINESS DAY

15

AGRIBUSINESS ag@businessdayonline.com

APPEALS project: Lagos to boost poultry, aquaculture production Josephine Okojie

L

agos State is set to boost the country’s poultry and aquaculture production as 350 agripreneurs graduated from the State’s Agro-Processing Productivity Enhancement And Livelihood Support (APPEALS) project.

The agripreneurs are the first batch of the targeted 1,620 beneficiaries of the Lagos APPEALS project of t h e Wo m e n a n d Yo u t h Empowerment Programme (WYEP) that will be trained in poultry, aquaculture and rice value chain as well as supported with technical assistance and grants.

Gbolahan Lawal, Lagos State Commissioner for Agriculture said the graduation of batch 1 of the WYEP signalled the beginning of a new concept to the APPEALS project implementation.

“Today, I present to you 350 beneficiaries; 165 in Poultry value chain, 35 in Rice value chain and 150 in Aquaculture value chain as batch 1 of the APPEALS project empowerment programme,” Lawal said in a statement.

He said the main thrust of APPEALS project was to increase productivity,

production, improve processing and marketing of the target value chains, which would foster job creation along identified value chains.

He said that one of the primary objectives of the APPEALS project was employment generation, which, according to him, is in tandem with Governor Babajide Sanwo-Olu’s vision of employing the teeming youth of the state in line with the administration’s THEMES agenda.

The commissioner said the government has been working to ensure employment generation and food security.

He urged the beneficiaries to open up their minds as agripreneurs and make the best use of the opportunities provided to ensure that the aim of the programme is achieved.

Also speaking during the graduation, Obafemi Hamzat, deputy governor of the state urged the beneficiaries of the APPEALS project to put their training and subsequent support from the project into productive agricultural use.

“Being here today as beneficiaries of APPEALS project WYEP is a major feat after being selected out of the over 7,000 applicants for the available 1,700 slots,” he said.

R-L: Adedoyin Adesanya, representative of the deputy governor of Lagos; Amin Babandi, national project coordinator, APPEALS Project; Prince Gbolahan Lawal, Commissioner for Agriculture; Olayinka Oluwatoyin, APPEALS Project beneficiary; Ms. Olusanya, special adviser on Agriculture, and Olayiwole Onasanya, permanent secretary, Ministry of Agriculture during the graduation ceremony of the first batch of the APPEALS Lagos youth and women empowerment prolgramme recently in Badagry, Lagos State.

Ha m z a t a d v i s e d t h e beneficiaries to access the grant element of the project by developing viable investment plans that will not just make them agriprenuers but also employers of labour.

The deputy governor who was represented by Adedoyin Adesanya, chairman of Epe Local Government said the APPEALS project was aimed a t s u p p o r t i n g f a r m e r s’ productivity.

He noted that the

‘Nigeria’s food security hangs on mechanised farming’ SIKIRAT SHEHU, Ilorin

T

he need for systematic d e p l o y m e n t of agricultural mechanisation and agro- industrial policies that will reduce food wastages and enhance agro productivity is vital in Nigeria’s quest of s elfsufficiency, an expert says.

Joshua olarewaju Olaoye, professor of Farm Power and Machinery of the department of Agricultural and Bio-systems Engineering, University of Ilorin stated this while delivering a paper at the institution’s 187th inaugural lecture.

Olaoye, who pointed out that Nigeria needs National Agricultural Mechanisation and Agro-Industrial Development Policy, enjoined the government to deploy all necessary political will and commitment to implement already documented food security programmes to the letter.

According to him, mechanisation covers all levels of farming and processing technologies from simple and basic hand tools to more sophisticated and motorized

equipment and improves productivity and timeliness of agricultural operations as well as improves the efficient use of resources among other advantages. “ S u s t a i n a b l e mechanization considers technological, economic, social environmental and cultural aspects when contributing to the sustainable development of the food and agricultural sector,” he said.

“There is a pressing need to increase global food production to feed the growing and increasingly global population.

To achieve food sovereignty, appropriate action must be taken to till the land,” he further.

“In tilling the land a d e q u at e e n e rg y s ou rc e will be required to drive agricultural mechanization. If this is sustained a continuous loop will emerge as food will subsequently lead to energy supply,” he added.

The professor therefore called for teaching and training of agricultural engineering across polytechnic and universities must be restructured to provide oriented approach and solutions to meet the needs of farmers, www.businessday.ng

as he advocated adequate government regulation on deforestation, mining, indiscriminate bush burning and dumping of refuse.

Olaoye suggested that, the Bank of Industries (BOI) is to be empowered to support industries and other stalk holders emanating from the researchers and farmers’ engagements.

The inaugural lecturer, in his research endeavours, designed and developed farm machineries and equipment to reduce drudgery during farm operations and improve agricultural productivity such as guided horizontal conveyor rice harvester, fabricated melon shelling and cleaning machine and slide crank squeezing action sugarcane juice extractor.

Others are, locust bean decorticating – dehaulling cabinet dryer and parboiler machines among others.

Olaoye, however, disclosed that his future research will be to explore and engage in new development in technology to farming, Agro-based industries and rural development as may be available in different parts of the world.

beneficiaries should avail themselves of the several opportunities and collaboration between the Federal and State governments as well as the World Bank offer to them by coming up with viable business plans to scale their businesses.

The deputy governor congratulated the beneficiaries of the first batch APPEALS project empowerment programme, describing their success at the selection stage

as a great feat.

He a l s o c o m m e n d e d the Lagos State Ministry of Agriculture for achieving the feat.

Also, Bisola Olusanya, special adviser for Agriculture, stated there was a deficit of 188metric tons for broilers, 6.7metric tons for eggs and 218metric tons for aquaculture respectively in the state.

O l u s a n ya n o t e d t hat agripreneurs that have been empowered with the training

and grant support from APPEALS project would be able to bridge the gaps in the poultry and aquaculture value chain in the state.

In her speech, Oluranti Sagoe-Oviebo, Lagos project coordinator, APPEALS project, sounded confident that the beneficiaries would soon become major contributors in the food production and supply chains in Lagos.

Sagoe-Oviebo said the beneficiaries have assured her that their business plans would be ready by next week, assuring that the project is not just going to impact in the lives of the 350 beneficiaries but will have a multiplier effect with lots of job creation and livelihood improvement.

The APPE ALS project WYEP consists of provision of technical assistance in business planning, grants to finance sub-projects and mentorship for start-ups or consolidation of existing women and youth-led businesses as an individual or a group of beneficiaries.

The basic strategy of APPEALS project is to increase productivity, production and improve processing and marketing of the targeted value chains which are expected to foster job creation.

NVRC releases 11 new crop varieties for farmers REMI FEYISIPO, Ibadan

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n its bid to boost agricultural productivity in the countr y, the N a t i o n a l Va r i e t i e s Release Committee (NVRC) has released 11 high yielding and quality crop varieties to farmers.

The 11 varieties were selected out of a total of 20 crop varieties initially submitted to the sub - committee on crops for consideration for registration.

Oladosu Awoyemi, chairman of the committee, announced the release at the 28th meeting of the committee held at its secretariat, the National Centre for Genetic Resources and Biotechnology (NACGRAB), Ibadan,the Oyo state capital.

Giving further details, Olusoji Olufajo, chairman of the technical sub - committee on crops, listed the new hybrid crops varieties as six maize, two castor, two yam, and one cowpea varieties.

Olufajo,a professor said

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the first maize variety, Zuma 450 and second maize variety, Zuma 500, were released based on extra earliness and high grain yield.

He said the other four maize varieties, SAMMAZ 56, SAMMAZ 57, SAMMAZ 58 and SAMMAZ 59, were approved for release based on high protein content, high pro-vitamin A content, high yield, and tolerance to multiple stress.

Olufajo said the first Castor variety NCRICAS1, was released based on high seed yield and large endosperm.

On the second castor variety, NCRICAS 2, the chairman said it was released based on high yield, high oil content, early maturity and good oil physicochemical properties.

He announced that the first yam variety UMUDa 27, was released based on slow rate of oxidation, good taste and high dry matter.

According to Olufajo, the second yam variety, UMUDa 28, was released based on @Businessdayng

good processing quality and good taste.

With respect to the new cowpea variety, SAMPEA 20 T, he said it was released based on resistance to legumes pod borer and early maturity.

Olufajo used the occasion to express displeasure at the late submission of materials to the Secretariat adding that any late submission in the future would be rejected.

NACGR AB’ Re gistrar, Sunday Aladele urged breeders, seed companies, and scientists to always submit the Distinct Uniformity Stability (DUS) requirements of their crop varieties with the crops.

Aladele said a list of the requirements could be obtained anytime at NACGRAB. He reminded them that all crop varieties must meet the DUS requirements of being distinct, uniform and stable for acceptance not only in the country but in the West African sub -region.

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Wednesday 25 December 2019

BUSINESS DAY

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Wednesday 25 December 2019

COMPANIES & MARKETS

BUSINESS DAY

17

COMPANY NEWS ANALYSIS INSIGHT

INDUSTRIAL GOODS

Cement-makers bank on improved government spending, stronger economy for growth …analysts predict stronger domestic cement demand, stable cement prices in 2020 OLUFIKAYO OWOEYE

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mid an uninspiring private demand, the Nigerian cement demand improved this year, with demand growth estimated to have been 4.9 percent year-on-year higher to 16.3Mt, buoyed mainly by higher capital expenditure (CAPEX).

Analysis of performance during the year shows surge in cement demand in Q1 on the back of increased pre –election CAPEX spending in a bid to woo electorates. However, demand tanked in Q2 caused by the prolonged 2019 general elections postponements, together with the raining season in the country.

Consequently, performance improved markedly in Q3 even as the double whammy hammer of heavy rainfall in the period and land border closure, had put a cap on sales uptrend. Intense competition in the cement industry means that producers remain price sensitive as they struggle to maintain market share. With cement makers such as Dangote Cement introducing promotional launch during the period in a bid to drive sales volume in the country Dangote Cement, accounts for the largest market at 29.3Mt, 61percent of the market share. According to Mustapha Wahab, analyst at Cordros Securities, Dangote Cement’s economy of scale, superior margin, and excep-

tional portfolio diversification isolate it from peers in the Nigerian cement market.

The company also boast of a robust logistics system as evident in the number of trucks which ensure product delivery across the country.

During the year, WAPCO, the second-largest cement company in Nigeria by installed capacity, yanked off its loss-making South Africa operations, Lafarge South Africa Holding Limited (LSAH) to LafargeHolcim Group for the sum of $316.2 million, as it seeks to deleverage its balance sheet and tap into the massive opportunity in the Nigerian market. It accounts for 22percent that is 10.4Mt of the country’s total capacity of 48.3Mt. Also, capacity build up by BUA cement and the merger of both CCNN and Obu cement to form one enlarge

entity means it is ready to challenge the leaders in the market. It currently controls 18percent of the market at 8.0Mt. Sadly, the share price of cement producers has been tepid with two players namely CCNN and Lafarge outperforming the NSE All Share Index. According to industry watchers, this is not unconnected to the naira asset selloffs by foreign and domestic investors.

The good news is that the early signing of the 2020 budget into law by President Buhari, would eliminate slowdown in government spending on critical infrastructure across the country. Of the total N2 trillion earmarked in 2019, a total of about N294.63billion had been released for capital projects as at September 30th 2019.

In the 2020 budget, a total

of N2.14 trillion has been earmarked for Capital Expenditure (CAPEX) spending, excluding CAPEX components of statutory transfers. The government has also vowed to prioritise in favour of critical ongoing infrastructural projects in the power, roads, rail and agricultural sectors.

If the government could keep to his promise, it could further spur the growth of cement makers in the country.

Notable projects in 2020 budget which would be heavy cement consuming projects include the National housing program which is expected to gulp N17.5billion while the social housing scheme (family homes fund) would cost N30billion.

While over N210 billion has been earmarked for the construction and rehabilitation of roads across the country. Interestingly, there

is a growing preference for cement paved roads by the government as evident in the 28km Itori-Ibese road in Ogun State which was commissioned in 2016 and the 43km long Obajana-Kabba road in Kogi State, the 32km ApapaOshodi-Oworonshoki-Ojota road in Lagos State is almost done.

In aviation, N1 billion has been set aside for the construction of terminal building at Enugu Airport and N10 billion for the construction of the second run-way at the Nnamdi Azikwe International Airport in Abuja. N67.17 billion is also set aside for the counterpart funding for new and ongoing railway projects Also, in the 2020 budget, N2billion has been set aside for the Mambila hydropower project, a 3.05GW hydroelectric facility being developed on the Dongo River near Ba-

ruf, in Kakara Village of Taraba State. The project is being undertaken by Nigeria’s Federal Ministry of Power, Construction and Housing, with the help of Chinese investments.

According to Wahab, the upside risk for the industry in 2020 is a stronger demand growth, with average cement prices to rise by 1bp to NGN2,197/bag.

“While we acknowledge the significant shortfall from the NGN2.93 trillion budgeted in the prior year, our optimistic view hangs solely on a higher implementation rate, given better revenue prospects,” “However, the downside risk to our prognosis remains the possibility of significant cost pressure occasioned by currency devaluation, which would force players to rethink their pricing strategies,” he said.

MARKETS

Will stocks see first negative December in decade?

SEGUN ADAMS & DAVID IBIDAPO

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he stock market could end in a loss for the first December since 2009, making the last three trading days make-or-break for investors in a disappointing 2019 market.

In the absence of a usual December rally, the equities on Monday had declined 3.28 percent since the start of the month threatening a worst last-month performance in more-than-a-decade.

“Over the last decade, the month of December has consistently recorded gains save for 2009, a phenomenon which has been referred to as “Santa Claus” rally,” said Lagos-based CSL Stockbrokers in a note to clients.

Decembers since a negative 0.87 percent decline in 2009 have gained for the month. The average return

has been 3.31 percent according to BusinessDay computation, which puts -3.28 percent month-to-date on Monday at a record decline.

However, CSL expects “a mild rally in the remaining trading days, expected to be driven by year-end portfolio rebalancing activities as well as early positioning by early birds in high-yield dividend stocks with attractive entry points ahead of their full-year 2019 earnings announcement.”

CSL believes the anticipated bullish performance is unlikely to erase the current Year-To-Date loss, implying a second consecutive year of negative close for the Nigerian equities market.

BusinessDay estimates that a 2 percent gain in the last remaining three trading days of the year would suffice in helping the market maintain a positive December rally trend.

While it remains to see if the market would average as

much as 2 percent in the last trading days, a new hurdle for the market would be the effect of the recent CBN revision on bank charges which saw banking stocks shed value on Monday.

The banking sector is one of the most attractive destinations for investors – particularly foreign investors – given their strong prospects and fundamentals.

The banking sector regulator in a bid to make financial services more accessible and affordable to various stakeholders in the economy, reviewed downward most charges and fees for banking services as contained in the new Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions, with effect from January 1, 2020.

The new directive may see the market react negatively to banking stock in the short-term but with few

trading days remaining in the year, weak sentiments toward banking stocks may affect the possibility of a 2 percent daily

average.

It remains to see what the remaining days would be like on the bourse but a negative

return in December would speak volumes to the poor performance of equities this year.

L-R: Comfort Alli Babalola, president/ project manager, Street Child Care and Welfare Initiative; Ore Bajomo, investor relations & corporate planning manager, LEKOIL; Christabel Bomi-Dore, co-founder and trustee, The Gamesville Foundation; Chidinma Obi, co-founder and trustee, The Gamesville Foundation and Segun Odukoya, senior project engineer, LEKOIL, at The Gamesville Foundation’s Street Child Care and Welfare Initiative fundraising in Lagos

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Wednesday 25 December 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

TECHNOLOGY

Cellulant to eliminate wastages, inefficiency in Agric value chain with technology TEMITAYO AYETOTO

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eading pan-African technology company, Cellulant Corporation, has affirmed its commitment to eliminating inefficiency and wastages in Nigeria and Africa’s Agric value chain with the unveiling of its improved payment and market place solutions, Tingg and Agrikore.

While Tingg is a payment solution accessible to everyone, Agrikore is an innovative platform built on blockchain technology that has simplified and connected all players in the agriculture sector.

The Co-Chief Executive Officer of the agritech company, Ken Njoroge, reiterated its commitment on Thursday at Cellulant’s inaugural partners’ summit themed ‘Technology For Transformation: Connecting Everyone to Nigeria’s $50bn Agribusiness Opportunity & Creating Jobs For Africa’s Youth’ held in Lagos.

In his presentation entitled ‘Payments Laying Down the Foundation for Connecting Africa’, Njoroge explained that Africa has a comparative advantage in agriculture but needs efficiency

in its value chain to have the desired impacts of food security, job creation and economic development.

He disclosed that this was what motivated the company to research and invest in the two solutions operational in 20 African countries, including Nigeria and involving several strategic partners.

Njoroge said, “If you bring efficiency into the Agric valuechain, ensure that crops don’t rot on farms, trucks operate regularly, there are no unemployed youth in rural areas, and no factory produces below capacity. if we can connect these dots, we can bring efficiency that can power the transformation of Nigeria and Africa across the board.”

The co-founder of the panAfrican technology company further explained that Cellulant was building a business model called ‘farm to plate’ that involves connecting all players in the Agric sector with technology to ensure that the processes are optimised.

He added that both Agrikore and Tingg have been tested and confirmed to be connecting everyone in the Agric farm place while boosting transparency.

“The market place and pay-

ment platforms are connecting everyone. The payment platform ensures that everyone gets paid in real-time as transactions happen. We know it’s working, we are working with 120 banks on the continent; large businesses are our customers. This is a collaboration that continues to benefit all parties,” Ngoroje said.

Corroborating his partner, Co-Chief Executive Officer, Cellulant Corporation, Bolaji Akinboro, said Tingg and Agrikore 2.0 provide access to the market place, increase transparency and simplifies the whole Agric value chain “Farmers are producing, but access to the market is the issue.

Our payment platform allows both the farmer, aggregator, supplier, everyone to see how money is flowing in the system. It is for people who want to be part of an ecosystem that is profitable for them and which also provides jobs for hundreds of people,” he said.

The Cellulant summit was attended by development partners including African Development Bank, Shared Agent Network Expansion Facility (SANEF), Flutterwave, banks and DFID amongst others.

Femi Gbajabiamila (2nd r), speaker of the house of representatives, supported by Salamotu Gbajabiamila (r), his wife; Idris Olugbesan (l), MD, Regent Microfinance Bank, Abuja, and Tunde Balogun (2nd l), APC Lagos State chairman, while presenting a cheque of N200, 000 to Zainab Mosunmola Ayeni (m), at the 2019 End of the Year Grassroots Empowerment Programme by the Speaker for his constituents in Surulere 1 Federal Constituency

SERVICES

Boomerang Havas africa emerges one of the best 100 IMC in the world merang Havas has consistently played a leading role in Nigeria IMC industry, in 2018 the agency ranked one of the top ten media agencies in Nigeria

by Research Company Evaluating the Media Agency industry, (RCEMA) a Paris based global company that evaluates media agencies across the world.

This ranking was done on the performance of agencies in terms of their competitiveness at pitches, business performance and creativity, momentum resources and agency capability.

Boomerang Havas Africa, a 360-degree Integrated Marketing Communication (IMC) firm based in Nigeria is a member of the Havas Group, the 5th largest communications group with headquarters in Paris and provides a wide range of communication solutions to global clients in media strategy, media buying and digital marketing, branding, experiential, sports marketing, events solutions, content development, gaming and public relations.

L-R: Charlotte Adesiyan, head, administration, Nigerian Sovereign Investment Authority; Stephane Beuvelet, acting MD, 9mobile, and Abe Sekav, head of IT, UNHCR, at the 9mobile Enterprise Customer Forum in Abuja

Kevin Zhang, itel Mobile brand manager, West Africa, Oke Umurhohwo, itel Mobile marketing communications manager, West Africa, winners of the cars and well wishers

L-R: Seifullah Balarabe Gaya, MD, Ya Feng Technology Company limited; Teniola Apata, Nigerian musician, and Habeeb Somoye, marketing director, Xiaomi Nigeria, at the Xiaomi Mi-Xmas Show in Lagos.

INIOBONG IWOK

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oomerang Havas Africa has once again reaffirmed its position as a leading marketing communications company in the world after being named as one of the top 50 in the 100 marketing and advertising agency in the world at the Madcon conference and awards 2019 in Dubai.

The event is reputed for providing comprehensive coverage and analysis of the marketing industry over the years.

Madcon 2019, a three-day roller-coaster ride held 18-16 Dec 2019 at Le Meriden Dubai Hotel & Conference Center, Garhoud-Dubai with the theme “Where Marketing and Possibilities Meet” is an event where marketing professionals get unparalleled opportunities to connect with a marvellous community of marketing wizards and witness them unveil their success secrets.

Lanre Oyegbola Managing Director/CEO of Boomerang

Havas Africa, who received the awards on behalf of Boomerang Havas Africa, said the company was delighted to be recognized as the one of the best 100 marketing communications agency in the world in 2019, stressing that it was a confirmation of the feat the company had attained.

According to him, “We are humbled and glad to be recognized as the one of the best 100 marketing communications agency in the world in 2019, this is a confirmation of two things; that impossible is nothing and that we can always bring something out of nothing.

Oyegbola reiterated that Boomerang Havas Africa will continue to change the narrative and disrupt the marketing and advertising space through its combined focus on being locally relevant and globally significant.

He dedicated the award to the hard working, passionate and dedicated team at Boomerang Havas Africa and the clients and partners.

It will be recalled that Boo-

L-R: Pamela Emordi, manager, education portfolio, MTN Foundation; Odunayo Sanya, GM, planning and customer management, MTN Nigeria; Adeolu Odusote, director, Digital Pears International; Ibukun Odusote, permanent secretary, Federal Ministry of Agriculture and Rural Development; Ayo Jaiyesimi, executive producer/CEO, Thespian Family Theatre and Productions, and Abasi-Ekong Udobang, senior manager, programme implementation, MTN Nigeria, at the command performance of the Five Maids of Fadaka staged by the Thespian Family Theatre and supported by the MTN Foundation, in Lagos

Wednesday 25 December 2019

BUSINESS DAY

19

cityfile

German agency, Edo empower 60 female mechanics with automobile skill IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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Footwear seller making last minute sales at Diko market in Gurara LGA, Niger State on Monday.

Yuletide: Fare rises 100 % as travellers lament hardship

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ommuters travelling from Lagos to other parts of the countr y for the Christmas festivity on Monday said the hike in fares by commercial bus operators was adding to the already existing hardship in the country, as the fares on some routes have gone up 100 per cent.

The travellers, in separate interviews at various motor parks in Jibowu area, Lagos, decried the development, and called on the commercial bus operators to reduce the fares.

A Benin-bound traveller, James Uche, said that the hike was abnormal, as he was not prepared for up to 100 per cent hike.

Uche, who spoke at Edegbe Motors at Jibowu, said: “I boarded this bus at Ajah and paid N9,600 for

a trip to Benin, and I also paid another N9,600 for a seat for my luggage.

“Meanwhile, because passengers were not forthcoming, the bus carried us to Jibowu here to fill all seats. I never bargained for this, it is painful.”

A clergyman, Tony O. Tony of Redeeming the Lost Int’l Church, who brought his brother that was travelling to Owerri, from Chisco park, lamented the increase in the fare from N7,000 to N13, 000.

“To us in Nigeria, it has been a normal trend because of the season, but it should not be so because there is no hike in fuel price, gridlock has been there, road condition has been there also.

“So, there is no justification for this pain being inflicted on people, especially the masses,” Tony said.

A Port Harcourt-bound traveller at Veno Tours, Joseph Eleyi, said that the fares were unfriendly, as he had to pay N12,000 as against N6,500.

Eleyi said that the season, bad road and multiple checkpoints must have necessitated the near 100 per cent increase.

Monday Ani, a businessman travelling to Enugu from Ifesinachi Express park in Lagos, said that the fare, which rose from N6000 to N10,200, was unfair, considering the harsh economy.

At Chibest park, an Abuja-bound lady, Titilayo Aina, criticised the hike in fare from 5,000 to N8,000.

In many of the parks visited, it was observed that transport fare from Lagos to Onitsha, Port Harcourt, Owerri, Enugu and other Eastern parts

was going for N13, 000.

An official at Chisco Transport, who would not have his name mentioned, said that the increase was usual during the season.

He said: “That is how it has always been, even since the days of our parents. Fares are increased during festive seasons, so nothing is abnormal here. People are shouting too much now maybe because there is no money in town.”

On what government can do to alleviate hardship on the roads, the travellers called for speedy road rehabilitation and checkmating of extortion at numerous checkpoints.

According to them, most transport operators consider the challenges and factor them into the fare, which is usually passed down to the poor masses. NAN

NIS e-registration: Bayelsa captures 856 emigrants SAMUEL ESE, Yenagoa

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ayelsa State command of the Nigeria Immigration Service (NIS) has so far registered 856 emigrants in the on-going national e-registration.

Felix Odika, the comptroller of the command, said in Yenagoa, on Monday, that the e-registration was for emigrants, who

had stayed in the country beyond 90 days.

The programme is part of the efforts to strengthen Nigeria’s internal security.

It started on July 12, in Abuja and the deadline is January 2020.

“We have so far registered over 856. The exercise mandated all emigrants staying beyond 90 days in Nigeria to go to the nearest immigration cenwww.businessday.ng

tre for the e-registration.

“The idea is to register all foreign nationals to enable us to monitor them properly,” Odika said.

He urged all employers of labour, landlords, hoteliers and other citizens to support the programme by ensuring that foreigners provide proof of registration before attending to them.

He said that registra-

tion was open to any nonNigerian, who intends to stay in Nigeria for a period exceeding 90 days.

He also added that foreigners at the age of 18 and above were eligible for the e-registration.

He, however, said that persons enjoying diplomatic immunity and those staying less than 90 days in Nigeria were not qualified to register.

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n support of efforts at job creation in Nigeria, the German Agency for International Cooperation (GIZ), partnering with Edo State government and Lady Mechanic Academy, has empowered 60 women in automobile skills.

The women were trained in different areas of specialty, including:auto-mechanic,autoelectrician, diagnostic technician, body spraying and quick services. The graduands were empowered with starter-packs.

At the graduation ceremony in Benin, Eseosa Okuko, Edo State coordinator, Migration for Developments under the GIZ programme, said the initiative was geared towards providing reintegration and integration support both for returnee migrants as well as youths in Edo. According to her, we have our vocational skills training under which we have trained 25 ladies in auto repair.

Okuko, who encouraged the graduands to put into practice what they learnt during the training, noted that it would also encourage the German government not to relent in providing the necessary support to sustain the vocational training.

Sandra Aguebor, the founder of Lady Mechanic Academy, noted that a total of 60 ladies were trained out of which 25 were sponsored by the German government while 35 were supported by the Edo youth academy under the Edo state government.

Aguebor, who commended GIZ and Edo State for the partnership, stated that the major objective of the empowerment was to lift women out of poverty.

She said the GIZ provided starter-packs which include tools boxes, spraying machines, sewing machines among others, while the First Lady of Edo State, Betsy Obaseki provided the diagnostics machines for the graduands.

She commended Edo State governor, Godwin Obaseki for giving opportunity to the academy to repair government’s fleet of vehicles through which the institution was able to train the graduating ladies free of charge.

Aguebor added that the initiative has changed the narratives of Edo girls and has consequently reduced the number of girls traveling abroad to involve in social vices.

She called on private organisations to sponsor the initiative to enable more girls acquire skills in automobile repair.

LASG wants finance managers to embrace T.H.E.M.E.S agenda JOSHUA BASSEY

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he commissioner of finance, Lagos State, Rabiu Olowo has tasked public finance and account officers to align their actions with the THEMES agenda of the Babajide Sanwo-Olu’s administration.

The T.H.E.M.E.S which stands for Traffic Management/Transport; Health/ Environment; Education/ Technology; Making Lagos 21st Century Economy; Entertainment/Tourism; and Security/Governance is the guiding compass for the present administration.

Olowo gave the charge at a 3-day retreat organised for staff of the ministry of finance and other offices under its supervision.

The retreat with the theme, “Aligning Key Performance Indicators (KPIs) for the Lagos State T.H.E.M.E.S Agenda” was in the effort to bring the affected officers to embrace the new agenda. Olowo stated that apart from ensuring the implementation of the T.H.E.M.E.S, the coming together of the finance and accounts officers would further promote a working relationship among all the finance officers from the

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ministry of finance, Debt Management Office, (DMO) and State Treasury Office, (STO).

According to him, the retreat was also organised to define clear goals ahead the next fiscal year (2020) such that all key players in the management of the state finance will understand their respective roles and take required actions.

The commissioner maintained that judicious use of the state’s resources was vital in achieving each of the pillars of the administration’s development agenda as enunciated in the T.H.E.M.E.S policy framework.

His words: “The roles of finance cannot be over emphasised by any serious minded government because every policy or decision made by the government comes with its financial implications thus making finance indispensable in achieving the goals of this present administration”.

Rotimi Olowo, chairman, Lagos State House of Assembly finance committee, urged the officers to be more dedicated and committed with a view to impacting the lives of all residents of the state.

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Wednesday 25 December 2019

BUSINESS DAY

BANKING Banks borrowing from CBN window declines by 107.5% Stories by HOPE MOSES-ASHIKE

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he Deposit Money Banks (DMBs) and the merchant banks continued to access the Standing Facilities window to square-up their positions in November 2019.

The trend at the CBN standing facilities window showed a decline at the Standing Lending Facility (SLF) window, as against the increased patronage at the Standing Deposit Facility (SDF) window.

Standing facilities are monetary policy operations which are initiated by central banks’ counterparties as opposed to open market operations, which are initiated by central banks. The marginal

lending facility allows counterparties to quickly cover short-term liquidity requirements.

Consequently, the total SLF granted, during the review period, was N662.44 billion in November, which

was 107.5 percent declined compared to N319.28 billion in October 2019, the economic report for the month of November 2019, released by the Central Bank of Nigeria (CBN) revealed.

The SLF granted was made up of (made up of N490.29 billion direct SLF and N172.15 billion Intraday Lending Facilities (ILF) converted to overnight repo).

Daily average was N41.40 billion in the 16 transaction days from November 1 – 26, 2019. Daily request ranged from N0.48 billion to N126.74 billion. Total interest earned was N0.37 billion.

Applicable rates for the SLF and SDF remained at 15.50 and 8.50 per cent, respectively.

The total SDF granted during the review period was N443.63 billion with a daily

Echo MFB targets N1bn capital for state licence in 2020

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cho Microfinance Bank Limited, a customer focused bank has signaled plans to raise its capital from over N50 million to N1 billion in order to operate a State licence bank next year.

The Central Bank of Nigeria (CBN) had in March 2019 reviewed the minimum capital requirements for microfinance banks, allowing for installmental payment and categorisation of Unit Microfinance into two of Tier 1 and Tier 2.

Echo MFB is classified under rural licence with cap i t a l re q u i re m e nt o f N50 million but the bank’s

capital base is above the requirement.

“Our thinking is that we are going to go state wise having operated in the rural.

We want to move to the urban proper come 2020 and to tap into other markets we have not been able to move into because of our limitation,” Ndoma Ndoma Odey, managing director/CEO of the bank said.

Speaking at the bank’s promo/target end of year ceremony in Ikorodu, he said, the bank has been able to sustain itself for 10 years.

“Our authorized share capital is N100 million and fully paid is N83 million. The

new capital requirement for state-wise MFBs is N1 billion.

Our target is that we want to move to N1 billion so that we can operate outside the axis we are already operating and tap to other local government within Lagos”.

The bank on Thursday recognized and appreciated about 2,507 customers who are major savers and have been loyal and supportive to the bank.

Consequently, the bank gave out various reward items ranging from sewing machines, phones, toasting machines, blenders and iron among others.

“We want to reward cus-

tomers that are very loyal and supportive to this bank.

These people you see here contribute from January to December. They are good savers without withdrawal.

Today we want to reward them for their loyalty,” Odey said.

Odey who fully joined the bank in October 2019 has within three months disbursed a total of N28 million loan to active borrowers.

“We are looking at a loan target of N1.1 billion and we are looking at having profit before tax of N58 million.

We are targeting about N288 million to be disbursed in the four quarters”, he said.

Winners emerge in Keystone Bank’s savings promo

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eystone Bank Limited has rewarded 34 winners in its ‘Growbiz Account Save and Win’ promo with cash and consolation prizes in different parts of the country.

The winners which were selected through a computerised and random process, were picked from the bank’s branches across the six geo-political zones, with members of National and Lagos Lottery Regulatory Commission in Nigeria in attendance, to ensure transparency and accountability.

The event held at Keystone Bank headquarters in Lagos on Tuesday, December 17, 2019 also had in attendance

top executives of the bank, customers, friends as well as representatives from the press.

According to the lender, it had on August 5, 2019 launched the promo as part of its efforts aimed at expressing appreciation to its loyal customers whilst engendering a good savings culture in the country. The promo which was open to both new and existing customers of the bank and scheduled to run till November 30, 2019 requires customers to grow their Keystone Growbiz Account balance by N50, 000 and maintain it for 90 days to qualify for the raffle draw.

In all, 9 customers won www.businessday.ng

N100, 000 each, another 9 customers went home with N50, 000 each, while other consolation prizes of refrigerators, generators, standing fans and microwave ovens were given to other winners.

Speaking at the event, Helen Nwelle, head, MSME and value chain management of the bank said: “MSMEs are significant contributors to the nation’s economy, hence they consistently require intermittent support to scale up their business, thrive and also continue to create jobs which would impact the nation’s GDP. “It will be all smiles as we announce winners who

disciplined themselves to save for the period and for customers who do not win, we are still ever committed to being their preferred financial advisor.

“Let me also reiterate that the Keystone Growbiz account which we are rewarding loyal customers for today is designed to meet the needs of business owners and organizations; sole proprietors, partnerships & limited liability companies.

One of the winners, Nnaemeka Anthony (from the Northern region), who won N100, 000 thanked the bank for the gesture stressing that the cash would go a long way to supporting her business.

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average of N26.09 billion in the 17 transaction days from November 1- 26, 2019. Daily request ranged from N6.30 billion to N42.75 billion.

Cost incurred on SDF in the month stood at N0.16 billion.

Total assets and liabilities of commercial banks amounted to N41,425.1 billion at end-October 2019, showing 4.6 per cent increase, compared with the level at the end of the preceding month.

Funds were sourced, mainly, from increase in unclassified liabilities, and the mobilisation of time, savings and foreign currency deposits. The funds were used, mainly, to acquire unclassified assets, foreign assets and to boost reserves.

According to the report, commercial banks’ credit to the domestic economy rose by 0.6 per cent to N22,261.0

billion at end-October 2019, compared with the level at the end of the preceding month.

The development was attributed to the rise in its claims on the private sector.

The report show that Total specified liquid assets of banks stood at N14,272.4 billion at the end of October 2019, representing 59.3 per cent of their total current liabilities. At that level, the liquidity ratio was 0.9 percentage point lower than the level at the end of the preceding month, and was 29.30 percentage points above the stipulated minimum liquidity ratio of 30.0 per cent. The loan-to deposit ratio, at 61.9 per cent, was 0.3 percentage point below the level at the end of the preceding month and was lower than the maximum ratio of 80.0 per cent by 18.10 percentage points.

Fidelity Bank comes tops in KPMG SME Customer Experience Survey

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idelity Bank Plc has remained a leading financial institution among Micro Small Medium Enterprises (MSMEs) for deposit transaction, credit facilities and overall customer service experience, recording significant improvements in a recent survey.

The bank which has grown its reputation for supporting small business, moved up four places to reach second on the 2019 Nigeria Banking Industry Customer Experience Survey, recently published by the renowned audit and consultancy firm, KPMG. This remarkable achievement was followed by the award of ‘Best SME-Supporting Bank of the Year’ by African Newspapers of Nigeria; Publishers of Tribune Newspapers in recognition of “its efforts to stimulate economic growth by empowering small and medium-sized businesses, which are the engine of economic growth of any nation”. The award was bestowed on the bank at the 70th anniversary of the newspaper, which was founded by the late Nigerian sage, Chief Obafemi Awolowo.

Speaking on both developments, Nnamdi Okonkwo, Fidelity Bank CEO, said the MSME sub-sector is a niche area of focus for the bank. “As critical agents for economic development, we will continue to deploy resources to support the sector, from structured fi@Businessdayng

nancing, to advisory, capacity building and market access.

“Our unique approach to serving the market segment is multi-faceted, including robust business advisory, practical handholding and guidance of aspiring and existing entrepreneurs to build sustainable businesses. We are encouraged by the survey results as well as the recognition by Tribune, to do more for individuals and business in this area”, he stated.

Fidelity Bank is a fullfledged commercial bank operating in Nigeria with over 5 million customers that are serviced across its 250 business offices and various digital banking channels. The bank focuses on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs) and its currently driving its retail banking businesses through its robust digital banking channels.

Wednesday 25 December 2019

BUSINESS DAY

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Wednesday 25 December 2019

BUSINESS DAY

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Logistics

Maritime e-Commerce

With investment in industrial growth, maritime can add 30% to Nigeria’s GDP – Jadesimi amaka Anagor-Ewuzie

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adi Jadesimi, chairman of Lagos Deep Offshore Logistic Base (LADOL), has stated that Nigerian maritime sector, has the capacity to add 30 percent to the nation’s GDP, if government continues to support real private indigenous companies to invest in industrialising the economy.

Jadesimi, who described the global maritime industry as one that holds vast untapped potential for growth and wealth creation, said the sector also holds the key to sustainable economic development in Nigeria, if adequately harnessed.

He stated this when he chaired the Nigerian Shippers’ Council (NSC) 2019 Annual Stakeholders Appreciation Night, held recently in Lagos. “ Hav i ng t h e l o ng e st coastline in West Africa gave Nigerian maritime sector vast untapped opportunities.

Nigerian maritime sector needs to develop sustainable businesses that would boost the revenue realised from exporting commodities,” he said.

Globally, he pointed out,

crude oil is increasingly being marginalised and huge pressure has continued to mount on the need to move away from using fuel to using cleaner alternatives, and renewable.

“At the same time, the maritime sector offers wide range of new business opportunities from clean energy to new modes of trans-

portation, logistics and agriculture – because maritime cuts across almost all other sectors of the economy,” he said.

Jadesimi advised Nigerian businesses to consider strengthening their investments with strong local content involvement especially in today’s world – this can start with Nigerians own-

L-R: Hadiza Bala Usman, managing director, Nigerian Ports Authority (NPA), presents a plaque to Aminu Bello Masari, executive Governor of Katsina State, who paid courtesy call to her at the NPA Corporate Headquarters in Lagos recently.

NIMASA takes delivery of first mission vessel, graduates C4i officers amaka Anagor-Ewuzie

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etermined to tackle insecurity on Nigeria’s waterways up to the Gulf of Guinea, through the realisation of an integrated surveillance and security architectural project, the Nigerian Maritime Administration and Safety Agency (NIMASA), has taken delivery of the first special mission vessel under the Deep Blue Project.

Olu Mustapha, chairman of the project monitoring team for the Deep Blue Project, also known as Integrated National Security and Waterways Protection Infrastructure, disclosed this recently in Lagos, at a graduation ceremony of a new set of C4i system operators.

Mustapha, who doubles as director, project services, at the Ministry of Defence, said the essence of the training for the intelligence officers was to ensure adequate capacity to man the assets under the

ing, doing the engineering and building the ships used in-country.

“There is quite a large financial and capacity gap to fill for Nigerians to be in a position to own most of the vessels that are doing business on our waters. We are all aware of the challenges militating against expansion of vessel ownership by

Deep Blue Project, especially with the receipt of the special assets.

“The assets of the Deep Blue Project must be manned by competent personnel and that is what we are committed to through various training programmes for different components of the project.

This will produce additional personnel for the optimisation of the system,” Mustapha said.

Dakuku Peterside, director-general of NIMASA, said President Muhammadu Buhari’s administration was committed to diversifying the economy, because maritime was seen as an economic game changer in this direction.

He said security of the maritime environment was a top priority of the administration.

“The Nigerian maritime domain and the Gulf of Guinea are known globally as major maritime security flashpoints. In addressing the challenges, a bi-ministerial collaboration of the Fedwww.businessday.ng

Nigerians. The number one hurdle was being able to access long-term finance at a reasonable cost. Nonetheless, the opportunities here are considerable and more than sufficient to support the needed investment,” he assured.

Emphasising that Nigeria is ideally placed and suited to become the ship building, repair and maintenance hub for Africa, Jadesimi stated that this will go hand-inhand with ship building.

“Our local market alone can justify the investments and new facilities needed.

This is also an industry that has a significant multiplier effect on long-term job creation. We can just imagine the enormous positive socioeconomic impact of developing vibrant ship building capacity in Nigeria. This will come along with manpower training that would lead to gainful employment for hundreds of thousands of Nigerians,” he said.

He pointed out the need for Nigeria to borrow a leaf from the Philippines that has developed a very robust world-class merchant seamen training programme.

“Today, there are tens of thousands, perhaps even hundreds of thousands of

Pilipino merchant seamen deployed all over the world, who remit millions of dollars back to the Philippines yearin-year out.”

Water transportation, according to him, was another area where Nigerian water resources can be harnessed to boost industrial development. He said that agricultural products rot due to poor logistics and transportation options.

“With no means to move them to the market efficiently, the agricultural sector cannot compete globally.

Roads are expensive to build and maintain. Thanks to the present government, the railways are rising again but will take time. We can make use of the water ways today,” he added.

Jadesimi also outlined the boundless potential of a less spoken about sub-sector in maritime, which is the maritime agro industry, including fishing, shrimping and industrial processing, for local consumption and export.

He reminded members of NSC and other captains of the industry present that the opportunities before them in the maritime sector would significantly move Nigeria forward by growing the private and public sector.

Obi Ozor, Kobo360 boss honoured at CNBC awards amaka Anagor-Ewuzie

eral Ministries of Defence and Transportation, as well as the Office of the National Security Adviser (NSA), developed a maritime security architecture comprising all military and security services as well as NIMASA to ensure a conducive environment for maritime to thrive,” he said Peterside, who was represented by Rotimi Fashakin, executive director, operations, said the Federal Government, through NIMASA, had invested ample resources in infrastructure, including developing critical manpower required to run the Deep Blue Project effectively and efficiently.

Recall that the Command, Control, Computer Communication and intelligence (C4i) centre located at the NIMASA-owned Nigerian Maritime Resource Development Centre (NMRDC), Kirikiri, acts as the nerve centre for operations and workflow management for all platforms under the Deep Blue Project.

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b i O z o r, c o founder/CEO of Kobo360, was recently named the ‘Young Business Leader of the Year’ and ‘Innovator of the Year’ at the ninth All Africa Business Leaders Awards (AABLA) held in partnership with CNBC Africa in Johannesburg, South Africa.

With over six years of logistics and supply chain experience, Ozor manages all key aspects of Kobo360 including operations, investments, compliance risk management and product growth.

Prior to founding Kobo360, he was the operations coordinator at Uber Nigeria and his career also saw him worked at J.P. Morgan.

In 2016, he left Uber and with his co-founder, Ife Oyedele II, Kobo360 was launched in a bid to disrupt Africa’s $150 billion logistics sector through the power of technology.

Since then, the team has raised $37.3 million in institutional investment from global

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Obi Ozor

venture capital funds as well as built a truly pan-African logistics brand.

“I am extremely honoured to be the recipient of these awards, and grateful to CNBC Africa for supporting the Kobo360 narrative over the years as well as bringing Africa stories to Africans and the rest of the world,” Ozor says.

According to him, “Our story is one which young business leaders can resonate with - turning African problems into African opportunities, for the benefit of the entire continent and its people.

He however stated that Kobo360 is for SMEs and major businesses that need to move goods, having felt the pain points of the current @Businessdayng

fragmented logistics sector.

Backed by international and African investors, including Goldman Sachs, International Finance Corporation (IFC), Y Combinator and TLcom, Kobo360’s tech-enabled full truckload offering enables the development of an efficient supply chain for end-to-end long-haul freight operations.

It connects and supports cargo owners, truck owners & drivers, and cargo recipients at scale.

“Winning this award would not have been possible without the inspiration I have received from my family and the entire Kobo360 team.

We will only get better at what we do and remain committed to building a world-class organisation that will drive efficiency, reliability and affordability across the global supply chain ecosystem,” he assured.

The AABLA in partnership with CNBC Africa is an empowerment driven initiative intended to distinguish and uphold the achievements of inspiring corporate front-runners on the African continent.

Wednesday 25 December 2019

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LADOL retains ISO 45001:2018, 14001:2015 certifications amaka Anagor-Ewuzie

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fter being the first company i n We s t a n d North Africa to o b t a i n Int e rnational Organisation for Standardization (ISO) certification in ISO 45001:2018 and 14001:2015, the Lagos Deep Offshore Logistic Base (LADOL), has retained its certification.

The success was attributed to the company’s leading track record in implementation of quality, health, safety, environment and occupational health policies and procedures.

Retaining these certifications was achieved after a rigorous and transparent audit process conducted by RINA at LADOL Free Zone.

Bu s i n e s s Day u n d e rstands that LADOL’s management system keeps sustainability at its core while the Occupational Health and Safety as well as the Environment standards

Jide Jadesimi, executive director, Business Development (m) flanked by management staff and RINA representatives after the successful ISO 45001:2018 (OH&S), 14001:2015 (EMS) audit at LADOL’s office in Lagos recently.

the company maintains, reflects this throughout its operations.

Recall that LADOL transitioned to the ISO 45001:2018, the Occupa-

tional Health and Safety Management system in December 2018, and also

retained its certifications for ISO 14001:2015, the Environment Management System in the same year, meaning that LADOL is ISO 9001 certified. “ This success comes at the end of a very challenging year, when many hurdles have been thrown in LADOL’s way,” said Amy Jadesimi, managing director of LADOL. Expressing gratitude, she said that LADOL staff and management team have remained focused on the company’s core business by working hard and diligently to meet and exceed the standards achieved in 2018.

“Getting ISO certifications and our commitment to achieving the United Nations 17 Sustainable development Goals (SDGs) are not about reaching for empty goals or accolades.

This was about ensuring the company’s long-term success for decades to come by building on strong foundations that will enable us to scale both locally and

globally – helping Nigeria to become West Africa’s hub,” she stated.

She dedicated the successes to the entire LADOL staff and management team that had shown example of what real team work can achieve.

The ISO 45001:2018 certification is a badge of honour, confirming that LADOL provides safe and healthy workplace for its employees, contractors and clients, by preventing work-related injuries and ill health, as well as proactively improving its OH&S performance.

Meanwhile, ISO 14001:2015 confirms LADOL’s adherence to the highest global environmental standards. As the company’s systems are linked to achieving the United Nations’ 17 SDGs, there was deep and sincere focus on more efficient use of resources and reduction of waste, which gained the company, a competitive advantage and the trust of stakeholders.

different ways, and the way I got to become a SAN is not the same way Mr. A or B got the excellence in legal practice. So, when I got different people in different practice areas to share their experiences, I was able to get more information than I should have given from my personal experience,” he stated.

Femi Gbajabiamila, the speaker of House of Representatives described Ig-

bokwe as a very determined man that always perseveres.

According to him, Igbokwe’s persistence brought him, Gbajabiamila, to Lagos for the celebration despite his tight schedules.

Emmanuel Ihenacho, the chairman of the occasion and former minister of Interior, in congratulating Igbokwe @60, said the books will contribute to the existing body of knowledge in the legal profession.

Igbokwe, maritime lawyer unveils books on legal practice in Nigeria amaka Anagor-Ewuzie

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n c o m m e m o ra t i o n with his 60th birthday, Mike Igbokwe, a renowned maritime lawyer and senior advocate of Nigeria (SAN), unveiled two scholarly books written by him with contributions from other Nigerians from various fields.

The books named, “The Trajectory of Excellence

in Legal Practice: Insights from Legal Experts” and “The Dynamism of Law and Practice in Nigeria,” were reviewed by Fabian Ajogwu and Kemi Pinheiro respectively.

Speaking at the presentation of the books held in line with his 60th Birthday celebration, in Lagos recently, Igbokwe, author of both books, said he wanted to contribute his quota to the development of legal

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practice in Nigeria.

“I want a situation where in this day of ‘yahoo yahoo’ where our young graduates are going into all kinds of criminal ways of being successful, to create opportunity for the younger generation to gain experience from successful lawyers. These lawyers have achieved excellence in the legal profession and they need to share their experiences in order to encour-

age the young ones,” said Igbokwe, who stated that about 39 experts shared their experiences in different aspect of legal practice.

According to Igbokwe, the style of writing was adopted because he wanted to have a broad and appropriate dissemination of information that will not be restricted to him alone.

“S u c c e s s c a n n o t b e achieved through one way; it can be achieved through

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Wednesday 25 December 2019

BUSINESS DAY

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Wednesday 25 December 2019

BUSINESS DAY

PENSION today

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In Association With

Factors that will ensure continuous growth of pension industry – Mohammad Ahmad

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t second Annual Retreat organised by Pension Fund Operators Association (Penop) for the National Assembly Joint Committees for Establishment and Public Service of the Senate and House Of Representatives Committee On Pensions held at Akwa Ibom recently, Mohammad Ahmad, pioneer director general of PenCom outlined some of the factors that will ensure continuous growth of the pension industry.

The first issue in my view is for the Federal Government to prioritise the payment of accrued rights of retirees. Although the government had been religiously paying the monthly pension contributions based on the old rates, it has not been able to meet up with adequate and regular payment of accrued pension rights. This is causing untold hardship and pain to many who have been waiting for years for their Retirement Savings Account (RSA) to be funded appropriately. This is non-negotiable and we should constantly bring this up at every opportunity until these accrued rights are funded by the government. a. Although PenCom has been statutorily empowered by the PRA 2014 to direct the Accountant General of the Federation to deduct at source unpaid accrued pension rights, that power had never been exercised because of political constraints. The continued success of the pension industry will largely be hinged on the ability of employers to honour their obligations as and when due. In the recent past, the members of the National Assembly had assisted in getting the government to accelerate the payment of the arrears of accrued pension rights. It would appear another tier of unpaid obligations have been built and the industry would once again require the collective efforts of all stakeholders for the timely payment of the accrued rights.

It should be reiterated that the hallmark of the pension reform is the establishment of a fully funded scheme that guarantees the payment of retirement benefits as and when due.

However, while the funding of the accrued rights of Federal Government retirees is being awaited. There is a strong call for retirees to be allowed to access part of their RSA balances in the meantime by programme withdrawals.

Mohammad Ahmad

In addition, there is the urgent need to fund the shortfall in the RSAs of retiring political office holders by the Federal Government as provided by the Pension Reform Act 2014 so as to enable the payment of the equivalent of the monthly salary at retirement.

Closely related to these, is the issue of

“the right of pensioners to pension review” as per Section 39 (3) of PRA 2014. This will go a long way to make the pensioners feel valued and appreciated, especially as this provision is a right as enshrined in Section 173(3) of the 1999 constitution. While pensioner who retired under the defunct pension scheme do enjoy pension increases, those retiring under the new scheme have not been that lucky despite several proposals by the Commission.

Related to the first point, is the need for State Governments to be compliant with provision of the PRA 2014 and also fund their pension liabilities. The noncompliance by a number of states negates the intent of the Act and the spirit of the pension reforms. Since the Government at all levels employ the greatest number of Nigerians, the funding of accrued rights and the compliance to the Act by State Governments at all levels will go a long way in ensuring that more Nigerians benefit from the pension reforms.

I am aware that a bill is being sponsored to compel State Governments to comply and to criminalise non-payment of pension liabilities. This is a step in the right direction,

and I urge you, as the representatives of the good people of Nigeria to get behind this piece of legislation.

The set of issue I enumerated had to do with non-payment of pension liabilities.

However, in some cases, deductions are actually made, and payments are indeed done, but employers are using the old rate of 15 percent under the 2004 Act as opposed to the new rate of 18 percent as stipulated under 2014 amended Act. Essentially, we need to ensure compliance – both in respect of payments, for those who do not pay at all and for the correct percentage to be paid by those who still use the previous rate. In addition, we need to stipulate consequences for non-compliance and look for ways to incentivize those that are compliance. Again, this is where our Senators and Representatives would play a significant role in ensuring that effective legislations are made to address the identified challenges.

Speaking about incentives, we need to remove any form of encumbrance to both the employer and contributors (whether mandatory or voluntary) from making their contributions in the scheme.

L-R: Bayo Yusuf, treasurer of PenOp and managing director, UBA PFC; Ronke Adedeji, PenOp, president\ managing director; Leadway Pensure Ltd; Dave Uduanu, managing director, Sigma Pensions Ltd and Nkem Oni-Egboma, managing director, Zenith PFC at the National Assembly Retreat held in Uyo Akwa, Ibom State.

IS NOW RC634453

Diamond Pension Fund Custodian Limited 1A, Tiamiyu Savage Street, Victoria Island, Lagos State.

Tel: 01-4613753, 2713680, 2713954 Fax: 01-2713955 Email: info@accesspfc.com Website: www.accesspfc.com

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This section is created to increase awareness and deepen knowledge about the Contributory Pension Scheme.

If you have enquiries or contributions, send to this e-mail: accesspfcbusday@yahoo.com

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Wednesday 25 December 2019

BUSINESS DAY

insurance today

E-mail: insurancetoday@businessdayonline.com

Loss buffer occupies negotiation 2020 renewals

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Top management of Linkage Assurance Plc led by its managing director/CEO, Daniel Braie(middle), during the Company’s 2019 End of the Year Staff Annual Thanksgiving Party held in Lagos.

egotiations over details of loss buffer tables is becoming a key feature of all reinsurance and retrocession renewals for providers of collateralised sources of capacity, such as ILS funds and investors.

Following the impacts of recent heavy catastrophe loss years, the trapping of collateral and now further issues caused by loss pronouncements that some see as overly conservative with recent events, the mechanisms and structures used within insurancelinked securities (ILS) contracts are coming under increasing scrutiny.

The effect on capital efficiency and ultimately the cost of that capital can be significant, particularly if collateral is too easily trapped, too much of it is trapped, or it becomes hard to achieve any release.

Nobody in the ILS market would argue with the need for a ceding company to be able to retain and hold onto collateral that could be required for loss payments in the

future, under the right circumstances and when the right data is provided and made available to back up this need.

But over the last few years the shortcomings of some buffer loss tables have become evident, as collateral has perhaps been too easily trapped and held, or too egregiously in a number of cases.

Most people now agree that it is time for a rethink and perhaps redesign of the buffer loss table mechanism, or at the very least a more analytical look at how to make it truly responsive to the ceding companies loss payment needs, while protecting the interests of the investors.

This is resulting in some prolonged negotiations over loss buffers at renewals for this January 2020 season, we understand, with a number of collateralised reinsurance and retrocession players looking to negotiate them lower and find a level where both sides interests are protected in the contract.

Capital Express raises authorised Saham Unitrust changes name share capital to N8bn to Unitrust Insurance Modestus Anaesoronye

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apital Express Assurance Limited has increased its authorized share capital from N7.5billion to N8.0billion in compliance with the new minimum capital requirement for life insurance companies set by the National Insurance Commission (NAICOM).

Bola Odukale, managing director/CEO said this at the Company`s end of year media chat in Lagos, while stating that to ensure a smooth recapitalization exercise the Company is in talks with three Companies for acquisition purposes.

She continued that the shareholders at their meeting approved rights issue and private placement as complimentary efforts which were part of the plans submitted to the board and NAICOM as part of the Company`s recapitalization roadmap.

In her words” We have continued to follow our plans meticulously and would continue to review the implementation until our objectives are met according to the timeline set for ourselves”.

On the recapitalization generally she stated that her organization is going to concentrate on its life operations but continue to maintain its investments in viable general business firms.

She further said that the organization is repositioned for growth resulting from the recapitalization agenda approved by the board. While the number of investors interested in investing in the Company’s private placement is encouraging.

The MD/CEO also informed the gathering that come year 2020 the focus will heavily be on the retail arm of the business as that is the strength of any life office.

“More investments in the area of manpower and I.T. infrastructure would be enhanced to meet up with the growing demands of excellent and efficient service delivery on the retail side of the business” she enthused.

Odukale thanked the Board, Management and Staff of the Organization for the support , co-operation and loyalty to the brand over the years which has made it a force to be reckoned with in the life insurance arm of the industry in the country.

She urged the staff to continue to give their best to the company informing them that the board approved a lot of welfare incentives which commences at the end of recapitalization next year.

She stated that every customer of the firm should expect more going forward as serving them better is her number one priority always.

She concluded her speech by wishing all stakeholders in the company a happy Christmas and happy New Year celebrations.

Modestus Anaesoronye

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ith the return of the company back to its Nigerian owners, Saham Unitrust Insurance Nigeria Limited has changed its name to Unitrust Insurance Company Limited. This is following the exit of the foreign majority shareholders Saham Group from the Nigerian company.

A statement from the company said that this notification became necessary, having met all regulatory requirements.

Unitrust Insurance stated that all past correspondence, licenses, documents and title issued under the former name remains valid.

The underwriting company was established and licensed in 1986 as Unitrust Insurance Company Limited, and has remained as one of the major underwriters of non-life insurance services in Nigeria.

The company underwrites motor, marine, aviation, engineering, bonds, fire & special perils, burglary, money, goods in transit, personal/group personal accident, employers’ liability, fidelity guarantee, including oil and gas insurance and is a major player in travel insurance.

It would be recalled that its name was changed to Saham Unitrust Insurance Nigeria Ltd after the investment of Saham Finances in the company, before its current change of name.

John Ijerheime, managing director of

the company reiterated the company’s passion for excellent service delivery to its customers.

He assured that the company has set in plans to ensure that it meets the recapitalisation requirements of the regulatory body, the National Insurance Commission, before the deadline given to the industry to recapitalisation.

The managing director said that as part of its promise to honour all genuine claims, Unitrust Insurance will continue to ensure prompt claims settlement to its claimants.

Ijerheime assured the public that the company would continue to deploy cutting-edge technology to provide the best services in the insurance industry.

While assuring that it will continue to keep the legacy set over the years, he appreciated its customers, brokers, agents and other stakeholders who have continued to support and trust the underwriting company.

Records showed that the group’s gross written premium (GWP) rose by 27 per cent to N3.168bn at the end of December 2018 from N2.486bn at the end of December 2017.

It’s profit before tax stood at N806.18m at the end of 2018 from N818.04m at the end of 2017, while its profit after tax rose to N759.96m from N427.68m respectively.

The group’s underwriting profit stood at N220.25m in the period under review from N303.79m in the corresponding period of 2017.

Mutual Benefits Assurance names Asenuga MD/CEO, as Omosehin retires

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ollowing the retirement of Olusegun Omosehin as the Managing Director of Mutual Benefits Assurance Plc., the firm has appointed Femi Asenuga as new Managing Director/ Chief Executive Officer (CEO), subject to regulatory approvals.

The firm said this in a statement signed by its Chief Compliance Officer, Jide Ibitayo, adding that Omosehin’s retirement will take effect from tomorrow December 23, 2019, after he has served the firm for a period of 10 years.

The company’s board appreciated Omosehin’s contributions over the years

Asenuga www.businessday.ng

and wished him the best in his future endeavour.

The new Managing Director, Asenuga, holds a Master Degree in Business Administration and a Bachelor’s Degree in Insurance from the University of Lagos and an Associate of the Chartered Insurance Institute of Nigeria (CIIN).

He was the best graduating student in the final of the B.SC. Honours Insurance Examination, and won the Femi Johnson & Co. Prize as well as the Unity Life & Fire Insurance Company award for being the best overall graduating student in the department of Insurance for 1989/1990 https://www.facebook.com/businessdayng

session.

Asenuga started his Insurance career with Metropolitan Trust Insurance Company in 1993. He moved to Custodian and Allied Insurance as a pioneer manager in the underwriting department.

He is an alumnus of Lagos Business School and the Said Business School of University of Oxford, where he attended the Oxford Advanced Management & Leadership Programme.

He was until his appointment, the ManagingDirector/CEO of Mutual Benefits Life Assurance Limited.

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Wednesday 25 December 2019

BUSINESS DAY

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Our purpose is not to consolidate the insurance market in Nigeria – Allianz Africa boss Coenraad Vrolijk, is the Regional Chief Executive Officer, Allianz Africa. In this interview with Modestus Anaesoronye shares his thought on vision of Allianz in Nigeria, the ongoing recapitalization in the industry among other issues. Excerpt: You are here again in Nigeria, I think the last time we saw you was during the launch of Allianz brand few months ago if I am correct, may we know your feelings on the performance of the company so far and how you are preparing to meet the new capital requirement? bout four times a year I come to Lagos for Allianz Nigeria.We just had our board meeting and I think it will be interesting to just catch pace at how Allianz is doing in Africa, how Allianz is doing in Nigeria, and I want to reiterate that Allianz is doing well and will continue to do quite well in Africa. We will continue to grow in Africa at about 11 percent which is very good and we are happy with that because it is probably one of the highest growth regions in the world .We are active in about 13 countries in Africa. We will continue to look for expansion opportunities to expand our corporate brand in countries we are interested in. As a continent, we will be excited in the long term but as individual countries we have our different stories.

Nigeria is not very big for us at the moment, but definitely one of the biggest potential countries we are present in, with 200 million people and the highest GDP. Depending, Nigeria and South Africa are the two biggest economies in the continent.

Sometimes, Nigeria’s GDP will be the biggest sometimes, South Africa’s. Indeed two of them are the biggest economies in the continent. So it is very important to us as a result we have continued to expand our investment here.

In our board meeting, we saw that we have employed about 19 staff in the last three months which is reflecting in the growth of the company. In terms of agents, when we started Allianz in Nigeria, we had about 70 agents, but the number that I saw today is 800 to 900 agents. The exact number keeps changing by day because people keep coming and going. We tried to build 1000 sales people selling Allianz insurance products so I hope that will give you a sense of how serious we are. We want to build a franchise here.

One of the biggest discussion points in Nigeria today is recapitalisation. Can you tell us how Allianz is going about it?

I just want to reiterate and confirm that Allianz will obviously make sure that Allianz in Nigeria conforms to local regulation. We will conform to the regulator’s N18 billion recapitalisation mark for composite companies. The plan is that Allianz will add the money .We have 99.6 percent ownership of Allianz in Nigeria, so we will add the money.

I think we will be somewhere over N18 billion at the end of the exercise.We will add the money before account closes for 2019.

Other insurance companies in the country have their own way of doing their increase in capital. From Allianz perspective, we will just add up the capital. In the Sima zone which is more of French speaking countries, there has been increase in capital from 1billion CFA France to 3billion CFA France and I know in two years time, it will go up to 5billion CFA France. In Ghana, which is your next door neighbor, they are also talking

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Coenraad Vrolijk

about increase in minimum capital requirement . We will fulfill those minimum capital requirements .There is similar conversation in Kenya but wherever we are, we always conform to local regulation including Nigeria. So, I wish to reiterate that as Allianz, we are 100 percent committed to Allianz Nigeria and Nigerian market and we are going to put money to ensure we meet the requirement.

Since after the launch of Allianz brand in Nigeria, will you say you are happy investing in Nigeria. I am sure you must have been testing your strategy bit by bit, now looking at the operating environment, the culture, are you comfortable being here?

You asked a couple of questions, one is are we happy that we are here, yes. We look at it not in terms of getting our money ck in one year. We are not private equity investors, we are not investing to get our money back in three years time. We are investing because we are staying here, and over time there is economic profit that comes out of this. We are not investing for immediate returns but that is not to say that we don’t run our business for profit, we run our businesses very much for profit recognising that in a country like Nigeria, 100 percent of their profit will be retained locally to stay in the balance sheet.

The growth rate here doesn’t justify repatriating any divided.

So obviously, when you are in a very high growth market like Nigeria, then you need to keep pumping capital in to stay conformed with the minimum solvency requirement.

People are expecting that big companies like Allianz should consider acquiring other companies that may not be able to make it, are you looking in that direction?

The answer is no, we bought a company www.businessday.ng

here to start, and we are very happy with our team here and we will continue to invest in our company here. Our purpose is not to consolidate the market in Nigeria, the difference between developed markets like Germany and the Netherlands and growth markets like Nigeria , Brazil, or Vietaem is that in a developed market, yes there is very little growth, yes the growth is one percent so the only way you can grow more is to consolidate. But here in Nigeria, we are growing on the net premium basis which is what we retain ourselves, we are growing at 30, 40 to 50 percent, so, why should we buy another company, there is no logic to buying when you are growing that fast. So now, our intention is to grow the business to turn around capital requirements, it is not logical to buy into the companies. It is not a strategy we want to carry out in Nigeria for now. May be in 20 years time, it will be a strategy but now?

No, we will just grow.

A good example of the strategy in Nigeria is Egypt, In Egypt, 20 years ago, we started with a very small operation and we have grown to be one of the market leaders, we are the top three market players and we do about $200 million of premium per year in that market which is a good size and we are happy with that. Our ambition here with Allianz Nigeria is the same, it is to grow from where we are today to be a market leader. But this doesn’t happen in one year time .May be it happens in five, may be it happens in ten years time but it will be driven by those running the business .Owolabi and his team’s efforts to grow our agents from 70 to 1000 agents selling Allianz products will help to achieve that.

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What is your current capital now, how much are you expected to add?

I think we are somewhere around N10 billion today and we will grow to N18 billion as a composite.

Composite companies have been asked to raise N18 billion, in your opinion is there business for this money, and what will be used for?

The simple answer is this; you have to invest it locally in different ways. Suppose we have a hundred assets in Nigeria. Of that 100 assets, between 80 and 90 percent of it will be sitting in term deposits, government bonds or things like that. The difference between insurance and banks is this, in insurance unlike banks, people pay you premium upfront then you hold on to it, and then they make a claim later and then you pay out when they make claims. So insurance companies are always on long term cash, banks are always on short term cash. Banks start with capital, lend out the money and then make a spread on how much they charge people who deposit and if a bank doesn’t have enough deposits it goes to central bank for external borrowing, may be a billion naira and then goes out to lend out that billion naira. Insurance companies always go on long term cash . People pay premium upfront and you have to get enough capital, invest it wisely because you don’t know when the claims will come.

In other words are you saying the capital upgrading this time is necessary for the industry ?

If you are asking the question why has NAICOM made it N18 billion, I don’t know the exact science behind the N18 billion, N15 billion or N20billion, but there’s a correlation to the risk that you can retain, so if you have N18 billion on your balance sheet and supposing you are insuring a big building in Aguda and that building wroth N10billion obviously the sum insured is N10 billion and somebody paid you N100million premium depending on the rate, this is an illustration so all you have on your balance sheet is N100 million and it gets burnt, it means you should pay him N10 billion so that is why you need the capital.

You need that capital for that big risk and you need reinsurance for that too as an indication that you will end up retaining a certain percentage of your capital on any risk. If you have N20billion, and you say I don’t want to have more than one percent of the capital equal to the sum insured, obviously if you go from 5 to 18, so supposing that today you have this role and you say I can retain one percent of the risk ,obviously when I have N5billion worth of capital, I can retain one percent of N5billion per thing that I insured on my balance sheet, if I get up to N18 billion, I can retain more percent of N18 billion which is times three as much, obviously if I retain three times as much, I am going to reinsure less. So if someone pays you N100 million on that N10 billion building, you can reinsure N80 million and keep N20million of the premium. If I increase my capital, I can reinsure N70million and keep N30 million that’s obviously how the mathematics works.

So the more the minimum capital rises up, the more you retain, the less you re insure.

@Businessdayng

28

Wednesday 25 December 2019

BUSINESS DAY

Harvard Business Review

MANAGEMENTDIGEST

How women undersell their work MARC J. LERCHENMUELLER, OLAV SORENSON Anupam B. Jena

D

espite a narrowing of the gender gap in science, women still lag behind men, especially at the highest levels. In the life sciences, for example, women now earn just as many doctoral degrees as men. But they hold only one out of four full professorships at research universities in the United States. Women in the life sciences also earn less and receive less research funding than men.

Many factors contribute to these gender disparities in academia. Productivity differences, however, cannot account for them. Instead, research suggests that women receive less recognition than men for equivalent accomplishments.

Just why they receive less attention has been an open question.

Our research examined whether women and men differ in the degree to which they promote — or spin — their accomplishments by using positive terms when describing their research. In a study published in the British Medical Journal, we document that women use fewer of these positive adjectives in research articles. These differences in presentation, in turn, appear to influence the amount of attention that their articles receive.

The rate of scientific publication has exploded over the last few decades. The life sciences alone recently passed 1 million articles per year, a fourfold increase in scholarly output compared with the early 1980s. But with this wealth of information has come a poverty of attention.

Scientists have had to become ever more choosy in deciding what to read and how to allocate their time. Self-promotion has almost certainly become more important than ever in capturing scientists’ attention.

Self-promotion differs in several important ways from other means of vying for scarce resources, such as applying for grants or negotiating for pay.

Individuals often have substantial control over the extent to which they promote themselves. And opportunities to self-promote abound, from sharing research via social media to framing results in articles and presentations in the most favorable light.

We examined potential gender differences in self-promo-

tion by analyzing the titles and abstracts of approximately 6.2 million research articles in the life sciences, published over a 15-year period (2002—2017).

Our information on articles comes from the PubMed database. We determined author gender probabilistically, by using the first names of the authors and the Genderize database. If at least 90% of people with a particular name were women, we coded the author as a woman.

Our analyses focused on language use in article titles and abstracts, because these passages represent some of the most important text to convey the main findings. Scientists often use these short passages to determine what to read in detail. We counted the number of times authors used a set of 25 distinctively positive words — like “novel,” “unique,” “prominent,” “excellent” and “unprecedented.” We also used natural language processing to characterize the text surrounding these positive words.

One difficulty in studying language usage stems from the fact that every article reports a unique piece of research, yet these findings differ in their novelty and in their importance. If men happen to conduct more novel research than women, then men’s more frequent use of phrases like “novel finding” may simply reflect the nature of the work, as opposed to self-promotion. To ensure a www.businessday.ng

comparison of apples to apples, we compared only publications that investigated topics of similar novelty (determined from the keywords assigned to the articles). We also compared only articles published in the same journals in the same years to account for differences in journal prestige and subject area.

A second difficulty stems from the question of attribution. Science, and especially the life sciences, has become a team sport. Determining who wrote what in an article with three or more authors can prove difficult. Here, norms help us.

Long-standing tradition in the life sciences usually assigns the first author position to the junior scientist who executed the project and the last author position to the senior investigator who funded and who often conceived the project. We therefore compared articles written by teams of female first and last authors to teams that involved at least one man in either lead position.

We found that articles written by female first and last authors were up to 21% less likely to use positive terms to frame their research findings than comparable articles published in the most prestigious journals with at least one man in a lead author position. Additional analyses confirmed that these positive words typically qualified the findings: We would frequently see word combinations such as “novel approach,”

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“unique mechanism” or “promising result.” Both men and women used the positive words to describe their findings, but women used them less frequently.

We also examined whether these gender differences in selfpromotion had consequences by determining whether they influenced the number of downstream citations (when the work is referenced by others). We found that articles with positive words received up to 13% more citations compared with research of similar novelty published in the same journals but without the positive framing. This apparent advantage of positive framing was largest for articles published in the most influential journals, those with a journal impact factor exceeding 10. In other words, authors who did not self-promote paid a price — in terms of receiving less attention — particularly when they published in the most prominent journals.

For both first and last authors, gender differences in self-promotion appeared most pronounced at early- and midcareer stages. As women rose through the ranks, their usage of positive words increased.

At the most senior levels, the disparity disappears (the 95% confidence intervals straddle the parity line). Some of this effect may stem from selection, with the more self-promotional authors having better odds of reaching these senior ranks. @Businessdayng

But women may also present their research more confidently as they gain seniority.

Does this mean women should hype their research more? Our research cannot inform the optimal degree of positive framing for the scientific community. Generally speaking, the language used should accurately reflect the quality and importance of the findings.

Our study reveals that women self-promote less than men, but we cannot say whether women understate their achievements or whether men overstate them.

Although our research has focused on the life sciences, we suspect that these gender disparities in self-promotion occur in a wide variety of settings, probably contributing to the societal gender gaps in pay and promotion. So it seems fair to say that women would do well to promote their accomplishments more. But the onus does not reside only with them.

Male colleagues also need to encourage women and ensure that they do not get penalized for the self-promotion they do.

Marc J. Lerchenmueller is assistant professor of technological innovation and management science at the University of Mannheim. Olav Sorenson is a professor of management at Yale University. Anupam B. Jena is an associate professor of health care policy at Harvard Medical School.

Wednesday 25 December 2019

BUSINESS DAY

29

FINANCIAL INCLUSION

& INNOVATION

What CBN’s rollback on bank charges means for financial inclusion Stories by Endurance Okafor

M

aintaining a basic savings account is considered a luxury for millions of Nigerians who live on less than $2 a day; one of the reasons for its high financial exclusion rate.

To pay for account maintenance fee, ATM card maintenance charge, SMS notification fee, stamp duty, and transactions to other banks, an account holder in Nigeria would spend nothing less than an estimate of $1.69 per month as against $1.62 in South Africa.

“People will remain financially excluded because they are financially disempowered,” Yele Okeremi, MD/CEO of Precise Financial Systems (PFS), a Lagosbased financial software company said.

According to the World Bank, financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs; transactions, payments, savings, credit, and insurancedelivered in a responsible and sustainable way. It also stated that access to a transaction account is the first step toward broader financial inclusion.

“I opened an account last year, and the small money that was inside has been debited by the bank for different reasons and now there is almost nothing in

it,” a customer of a Nigerian tier-one lender said on the condition of anonymity.

In furtherance of its quest to make financial services more accessible and affordable to various stakeholders in the economy, the Central Bank of Nigeria (CBN) has reviewed downward most charges for banking services.

With effect from January 1, 2020, charges on electronic funds transfer, for instance, will attract N10 for transactions below N5,000; N25 for those between N5,001 and N50,000, and just N50 for those above N50,000. This is compared to the initial flat rate of N52 per transfer.

“In a bid to encourage financial inclusion and to reduce the burden of bank charges on consumers of financial service, CBN has

issued a revised Guide to charges by Banks, Other Financial and Non-Bank Financial institutions in response to the evolution in the financial industry over the last few years,” the apex bank said on its twitter handle on Monday.

The Guide which was first released 15 years ago was revised in 2013 and 2017 in the light of market developments such as innovations in products and/or channels and new industry participants.

The new Guide sent to Banks, Other Financial and Non-bank Financial Institutions as contained in a circular includes, amongst others, a downward review of charges for electronic banking transactions, removal of Card Maintenance Fee (CAMF) on all cards linked to current accounts,

reduction in the amount payable for cash withdrawals from other banks’ Automated Teller Machines (Remote-on-us), review of other bank charges to align with market developments, and inclusion of new sections on accountability/responsibility and a sanction regime to directly address instances of excess, unapproved and/or arbitrary charges.

“The current state of the economy has left the purchasing power of many Nigerian eroded, so the slash in bank charges will be an encouragement to many that want to either open new accounts or revisit their dormant accounts, hence spur financial inclusion,” a Lagos-based financial analyst said.

With a target to increase the number of Nigerian

adults in the financial system from the current 38 million to 100 million in the next five years, the Central Bank plans to use both bank and mobile money-led financial inclusion model.

Before October 2018 when the Central Bank released an exposure draft that requested an application from Telcos, retailers and other industry players to apply for Payment Service Bank (PSB) aimed at giving financial access to Nigeria’s excluded population, Africa’s largest economy only depended on its bank-led financial inclusion model.

While its Africa peers have been able to give access to a large number of their population through the use of money, Nigeria has remained a laggard due to its decades-old bank ledinclusion model.

According to a recent report by the World Bank, mobile money drove financial inclusion in Sub-Saharan Africa. Countries in Africa which included Burkina Faso, Côte d’Ivoire, Gabon, Kenya, Senegal, Tanzania, Uganda, and Zimbabwe recorded 20 percent or more adult using only a mobile money account.

Between 2014 and 2017, the World Bank noted that there was a significant increase in the use of mobile phones and the internet to conduct financial transactions which contributed to a rise in the share of account owners sending or receiving payments digitally from 67 percent to 76 percent glob-

ally while developing countries recorded 57 percent to 70 percent.

Most recent data by EFInA put Nigeria’s financial inclusion rate at 63.2 percent, meaning that as much 36.8 percent adults still lack access to financial services.

According to Uzoma Dozie, the last Group Managing Director of defunct Diamond Bank, and Founder/CEO of Sparkle, for a large number of the country’s population to be financially included, “we would have to leverage technology, for millions of Nigerians to have access.”

In his remarks, Oghogho Osula, financial expert and former MD/CEO of Coronation Trustees Limited, said Nigeria has a large mobile market, and the huge number provides an opportunity to use it in deploying easyto-use technology that can improve access to financial services.

Data by Nigerian Communications Commission (NCC) analysed by BusinessDay revealed that the total number of subscribers per individual telecoms operator as of October 2019 stood at 180.39million, the highest customer base reported for any industry in the country.

“With a very well-developed mobile market, and many tech-savvy consumers, there are exciting opportunities for mobilebased digital identity solutions in Nigeria,” Calum Handforth, Senior Consultant at GSMA said.

QuickCheck teams up with Jumia, PayAttitude to deepen access to credit

Q

uickCheck, a micro-lending mobile platform that provides collateral-free loans, has announced its partnerships with Jumia and PayAttitude, to get even closer to the majority of Nigerians who still lack access to credit.

According to the Fintech Company, the QuickCheck app was specifically designed to solve the difficulties Nigerians face in seeking access to credit.

“I believe that the increasing importance of

financial inclusion as a catalyst for economic growth and development cannot be overemphasized. More and more digital consumers use digital services, pay bills, shop and make payments online. Increased e-commerce transactions and smartphone penetration are indicative of a population segment seeking for a higher quality of living, it typically corresponds to the underbanked, who we currently serve,” Fabiano Di Tomaso, CEO of QuickCheck said.

According to the Lagos-

based lender, QuickCheck in the last six months has been the only credit provider for Jumia customers subscribed to the JumiaOne app. JumiaOne, one of Nigeria’s top lifestyle App allows consumers the options to buy airtime, pay bills and have access to all Jumia services in one place.

“QuickCheck takes it one step further by partnering with Jumia to provide their customers with access to loans, through its credit scoring algorithm used for the underwriting of borrowers. QuickCheck’s affili-

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ation with Jumia will allow customers to easily take loans on a mobile app they are already actively using,” QuickCheck said.

QuickCheck also announced its collaboration with PayAttitude – Payment Scheme and a player in the Fintech industry.

PayAttitude is known for being one of the pioneers and only multi-bank USSD and Mobile App for POS, Web payments, ATM Cash Withdrawal, and personto-person transactions using just a phone number.

According to Babatunde

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Okeniyi, the CEO of PayAttitude, the partnership with QuickCheck is a testimony to the commitment of PayAttitude to democratizing access to financial/payment services.

“The future is mobile and PayAttitude is driving inclusion through mobile in a way never before done.

This partnership with PayAttitude will, therefore, provide a convenient platform for QuickCheck to make loans available to hundreds of thousands of customers,” he said.

Fabiano, commenting @Businessdayng

on the par tnership expressed his excitement at the opportunity QuickCheck has in reducing the inclusion gap in the country and enabling consumers’ participation in the economy through its digital financial services.

“Yes, we do rely on our leading product, the QuickCheck app that is our main focus. However, we are driven by the relentless pace of innovation – we see challenges every day and we want to solve them and improve people’s lives,” Tomaso said.

30

Wednesday 25 December 2019

BUSINESS DAY

TRANSPORTATION Motoring

RailBusiness

ModernTravel

Roads

defeats Toyota Corolla recaptures Nigeria’s (COTY) crown Germaine Elizade in TCC Foot-

…Stallion, CFAO Motors, Cars45 others win big

ball Competition

MIKE OCHONMA Transport Editor

MIKE OCHONMA

G

I

t was all glitz and very touchy feeling when stakeholders in Nigeria’s automative defied the heavy traffic gridlock to gathered inside the Eko Hotel & Suites in Victoria Island, Lagos to receive their ‘score sheet’ during the 2019 Awards organised by the Nigeria Auto Journalists Association (NAJA).

The highpoint of the award night was the declaration of the Toyota Corolla as 2019 Nigeria’s Car-OfThe-Year (COTY) Award beating Hyundai Tucson and GAC GS4, a Chinese brand. The Corolla is reclaiming the coveted crown it lost to the Kia Rio, Peugeot 301 and Hyundai Creta few years ago.

NAJA’s award night which witnessed the presentation of other categories of awards to deserving winners from the auto industry, lubricants brands in the country and other allied sectors attracted representatives of the Director General of the National Automotive Design and Development Council (NADDC), Aliyu Jelani and that of the Corp Marshal of the Federal Roads Safety Corps (FRSC) as special guests was well attended by many Chief Executive Officers and other stakeholders in the nation’s automotive sector.

In the Luxury Car of The Year, Mercedes Benz S-class emerged winner ahead of BMW 7-series and Porsche Panamera, while the Luxury SUV of The Year award went to Range Rover Autobiography.

Mitsubishi L200 edged out the Toyota Hilux and Ford Ranger to clinch the Pick-Up 0f The Year Award while Mini Bus of the Year award went to the Toyota Hiace that competed with the Nissan Urvan and Mercedes Benz Sprinter buses.

New Auto Lubricant of the year went to Motul, just as Ondo Motor Rally smiled home with the Motor Sports of The Year Award.

Cars.45 was named as Online Auto Marketing Company of The Year; JAC, emerged the Most Improved Brand of The Year; even as Hyundai was named the Highest Selling Brand of The Year.

While Mandilas was announced

as thr Auto Workshop of The Year and Changan as Fastest Growing Auto Brand of The Year, the Honda Accord took home Executive Car of The Year award.

In his welcome speech, the chairman of NAJA, said that NAJA award is the most prestigious and only recognised auto award in the country.

He advised industry stakeholders to desist from ‘negotiating’ for awards from private merchants who give auto industry awards just to prove to their principals abroad that they are doing well in the market Emphasising that the awards is the only recognised award nationally and internationally, the NAJA chairman pointed out that the winners were arrived at, after an exhaustive, but objective evaluation of competitors in each of the categories He said that, the award winners which were arrived at through members’ votes will among other things, provide consumers with sound, comparative information on vehicles that are new to the market.

In his response after receiving the Corolla’s Car-Of-The-Year Awards on behalf of Toyota Nigeria Limited, Kunle Ade-Ojo, the compay’s managing director dedicated the award and other won by the company to brans’s customers.

In the submission of the elated TNL managing director, “Our customers are the reason behind our success in Nigeria and without the customers; we won’t be standing

L-R: Bukky Ogunnusi, PR/advert manager TNL, Kunle Ade-Ojo, MD TNL, receiving the Nigeria’s Car-Of-The-Year Award (COTY) award by the Toyota Corolla from Kayode Opeifa, executive vice-chairman, Presidential Task Team on Apapa Gridlock, while Ifeanyi Agwu, CEO, BKG Exhibitions Ltd looks on. The event was organised Tuesday, December 17, 2019 at the Eko Hotels, V/I, Lagos by the Nigeria Auto Journalists Association (NAJA).

Pic by Pius Okeosisi

here today.” She pledged that Toyota would continue to offer quality products to Nigerians at all time.

Kunle Ade-Ojo described the Toyota as very strong brand that offers value for money across all segments.

Ade-Ojo who received the COTY Award presented made by the duo of Kayode Opeifa, executive vicechairman, and Presidential Task Team on Restoration of Law and Order (Apapa) gridlock alongside Ifeanyi Agwu, CEO of BKG Exhibitions Limited orgainsers of the Lagos and Abuja Motorfairs respectively thanked the organisers for putting up the award and for finding the Toyota Corolla worthy for the COTY award.

He promised that the company will continue to uphold the integrity which the company has been known for, while contributing positively for the Nigeria Auto industry.

Special recognitions awards were also presented to Bukky Ogunnusi, advert and public relations manager of Toyota Nigeria Limited (TNL) and Abiona Babarinde, general manager, marketing & corporate communications, Coscharis Group. Thomas Pelletier, Managing Director/CEO of CFAO Motors was equally given the award of Most Innovative CEO of The Year in recognition of his sterling managerial qualities in turning the operational processes of CFAO Automotive group.

‘Mandilas commits to quality auto care delivery’

O

la Debayo-Doherty, group chief executive officer Mandilas group has reiterated the commitment of Mandilas Motors and front-line dealers of Toyota models for decades toward the delivery of quality automotive care to Nigerians irrespective of the location.

The Mandilas chief executive officer made this known at the opening of a quick service outlet inside the NNPC Mega station location on Kingsway road Ikyi, Lagos.

She recalled that for approximately 70 years, Mandilas has been at the forefront of providing excellent auto care service, repairs and maintenance backed by experienced and efficient technicians with many years of quality practical

L-R: Ola Debayo-Doherty, group chief executive officer, Mandilas group, Billy Okoye, MD, NNPC Reail Limited and Affiong Akpasubi, executive director, services, NNPC Retail Limited at the opening of the auto quick service outlet at the NNPC Megastation, Kingsway road, Ikoyi, Lagos. www.businessday.ng

training. These according to her further gives credence to Mandilas being the right partner to NNPC in bringing service closer to the people. ‘’Our unrivalled expertise and personalised service in auto care will be experienced by everyone who visits the Mandilas Quick Service Centres (MQSC). Customers will have access to affordable and quality auto care in the areas of routine service and maintenance, quick oil change, wheel balancing and alignment among others’’. Debayo-Doherty

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maintained.

She congratulated the board, management and staff of NNPC Retail, the downstream subsidiary of NNPC on the new partnership with Mandilas Motors, saying that, both organisations have a long way in its quest to deliver excellent services to their varied clientele in theie pursuit to make the motoring public happy.

The new strategic partnership is coming few weeks after a similar quick service centre was opened by Mandilas group (Motors division) and NNPC Retail Limited opened an ultra-modern facility in Abuja, the federal capital. Such deal which is set to transform the automotive aftermarket, will lead to the opening of more centres in parts of the country. @Businessdayng

ermaine Auto Centre has emerged back-to-back champions in the just concluded Toyota Chairman’s Cup Football competition by defeating Elizade Motors Limited by one goal in a gruelling football match played recently at the Meadow Hall School, Lekki, Lagos.

In the third place play-off, Mandilas Enterprises Limited edged out Kojo Motors also by one goal to nothing. Zenth Bank was the official partner of the 2019 Toyota Chairman’s Cup Football Competition (TCC FC) In a bid to promote wellness, bonding and create business networking among Toyota family, Toyota Nigeria limited, one of the leading automobile dealers in the country has finalised plans to host the 4th edition of the Toyota Chairman’s Cup Football Competition (TCCFC), scheduled to take place in Lagos.

Last September, the draws for the TCC FC was made at Toyota’s head office in Lagos that produced a total of eight teams. Based on the draw, only two groups (Groups A and B), with four teams in each participated in the tournament that was played between October through 12, 19 and 26 respectively.

In group A are Kojo Motors, RT Briscoe, Mandilas, and Metropolitan, while Omorege Motors, Toyota Nigeria, Germaine, and Elizade Motors battled for the trophy in group B. Accoring to Kunle Ade-Ojo, managing director, Toyota Nigeria Limited, the TCCFC is an inter-dealership championship organised by Toyota Nigeria as a way fostering togetherness, socialising, and bonding.

“It adds a bit of flavour to the relationship and the Toyota family as a whole,” Ade-Ojo also described it as a social event amongst dealers which sprung out of a hunger to provide an escape from the “hard work” dealers engage in during the year in a bid to promote the Toyota brand.

“We feel that even though we meet officially, working, brainstorming to try and move the business forward, it is also important to dedicate a period during the year where we have a social event which we term the Toyota chairman football championship,” he said.

As part of the guiding rules and regulations that qualifies any accredited Toyota dealer to take part in the competition, Sunday Okeowo, secretary, local organising committee (LOC), TCCFC, said that dealerships are visited to verify players’ statuses.

“Players who are not around after the first and second visits, will be disqualified and there is no substitute,” he said.

Checks were also carried out to ascertain the health condition of players at the dealership level, however, while there was a medical team at the major competitions preceding the grand finale to cater for all players and cash prize for the winners.

On the availability of a cash prize, the managing director revealed that at last year’s event, the winning team went home with a cash prize nearing N1million and a trophy. But he was uncertain whether the prize for this year would go up.

Wednesday 25 December 2019

BUSINESS DAY

31

TRANSPORTATION Motoring

RailBusiness

ModernTravel

Roads

Stallion records sweeping success in Auto

…scoop Assembly plant, executive car, highest selling MIKE OCHONMA

we will continue like that’’.

Ameachi said.

He however commended CCECC for completing the laying of tracks on the 156km distance, even as he scored below average on their performance on the construction of the train stations. He said that, it is not satisfactory, but still work on progress as there are still a lot to be improved upon as the project progresses.

According to the minister, ‘’If the contractor was able to use local cement, why should we be importing doors, doors, tiles and other things we can source locally. I quite disagree with the speed of work and I wondered what will happen when the next segment of the project from Ibadan to Kano begins with the slow pace they are going at the moment.

Ameachi who gave this charge during an inspection tour of the 156 kilometers standard gauge project expressed dismay

stations. He also charged the contractors to prioritize use of local contents in their operations.

G o i ng by t h e t i m e project time table, it is expected that, work on all the smaller stations and bigger stations will be completed by the contractors in February and April respectively.

On the challenges faced at the Lagos to Apapa segment, the minister said so far, a new technology has been deployed to identify critical and complex areas in the metropolis with high concentration of water pipes, gas pipes, petroleum pipelines and sewage pipes without necessary inflicting damage to them which may negatively impact economic activities.

The Lagos to Ibadan rail project has a total of 10 trains station from made up of three mega stations while seven are small stations. With the exception of one, it is still work in progress at all the stations.

R

basis for distribution, sales and aftersales service. Company sources said that, the Stallion group represents these brands through independent management and collectively contribute to over 49 percent share of the new automobiles market in Nigeria.

The best assembler and manufacturer award to Stallion’s VON is a testimony to the investment done by the organisation to get global brands to the Nigerian customers that are locally produced and are best suited for these roads.

Stallion’ VoN assembly plant has an annual capacity of 200,000 units and 6 dedicated lines for passenger cars and 2 for commercial vehicles. The company says it has hundreds of employees

in the sector, buoyed with an investment portfolio of ove N130 billion in the auto sector from manufacturing to sales to service and after sales.

Best Executive Car of the Year to Honda Accord amongst stiff competition is also a proof of Stallion Group’s approach to create the right brand salience in this market. The Honda Place (THP) is the first company of the group’s automotive business. Since then THP has developed impressive world class auto facilities for sales and service, delivering a global brand experience to customers in Nigeria.

Hyundai won the “Highest Selling Brand in Nigeria”, it has gained the momentum and trajectory to attain the status of a world-class auto-

motive brand. Represented through Hyundai Motors Nigeria – Stallion Group Company, the vehicles are now custom designed to meet local tastes and are the highest selling cars in the new car segment.

Changan was conferred the award for being the fastest emerging brand in Nigeria. Changan is one of the top Chinese auto brands that are gaining immense popularity in Nigeria for its value offering across automotive segments.

The CS series brought Changan into the heart of the growing SUV market in Nigeria. Zahav Motors a Stallion Group company has significantly invested in local production of these vehicles making these vehicles the best drive for Nigeria.

Elizade opens full-scale weekend services MIKE OCHONMA

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re you a corporate fleet or individual Toyota brand owner and too busy to go for the maintenance and service of your vehicle on week days, Elizade Nigeria Limited, one of the dealer outlets of the Japanese brand has taken a step further to offer extend service package on Saturdays nationwide.

These were one of the take-aways at the company’s last Drivers’ Education Forum held at its headquarters in Ogba, Lagos. The Saturday operations entail all normal after-sales normal work day service offerings.

It includes ehicle reception, routine checks of 5000, 10,000, 20,000 & 40,000 kilometer services, periodic maintenance, disgnostic repairs, estimate generation, vehicle evaluation, body and spraying, over

otimi Amaechi has once again reminded the Chinese Civil Engineering & Construction Corporation to prioritize the application of local content in the course of executing the LagosKano standard gauge rail project.

According to the minister, the focus on the use of local content has become necessary because many Nigerians need to be gainfully employed. ‘’There is no reason why they should be importing basic things like tiles and window frames from their home country. We have told them to use local materials at the Ibadan station, once it’s successful,

on the slow pace work on some stations such as the Alagomeji mega station where he accused the Chinese Civil Engineering & Construction Corporation (CCECC) of slowing down the speed of the project compared to what he saw on ground during his previous visit.

At Olodo in Odeda area of Ogun State, the minister said that design of the station by the CCECC did not meet the specifications and required standards as contained in the project agreement and ordered them to effect the necessary architectural changes.

Amaechi wondered why CCECC has failed to replicate the same pace and quality of work on the tracks to the building of the

MIKE OCHONMA

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n what industry watchers better described as a night of quadruple honours for one of Nigeria’s most resilient automotive group, Stallion Motors recorded a sweeping success when the automotive giant was conferred with four prestigious awards by The Nigerian Auto Journalists Association (NAJA) amongst an array of auto players.

NAJA awards are the most recognized and mentioned of all car awards in Nigeria.

The association hands out a multitude of awards in a variety of categories from automobile sector.

While ‘The best assembler and manufacturer of the year’ was grabbed by Stallion’s VON Assembly plant located along the LagosBadagry road, Honda Accord was clearly the favourite choice for “The Best Executive Car of the Year’.

The other two awards went to the Hyundai as “The highest selling brand of the year” and the fairly new, yet the formidable player Changan was awarded the “Fastest growing brand of the Year”.

Stallion group’s automobile division consists of a collective sub-group of companies which represent globally renowned automobile brands on an exclusive

Minister insists on local content on Lagos-Kano rail project

the counter (OTC) spare parts sales.

Dur ing the one day event titled ‘Toyota My Ride, Elizade My Choice’, the company outlined some of the benefits to include giving customers regular update on its products and services, to carry out a joint continuous improvement exercise (Kaizen) with the customers with the aim of getting better and desirable satisfaction, improved quality, reduced cost, simplify www.businessday.ng

work processes, less waste and increase productivity.

Among other things, the forum aims to open doors to new opportunities, allows room for positive improvement in growth areas as well as improves level of confidence.

Some of the innovativative service offerings are after-market installations, courtesy car at affordable rate, emergency recovey services, dianostic service, over night service, early-

bird service, and mobile services at Customers location for fleet & corporate customers as well as Elizade Satellite workshop services among others.

Generally, new cars are fully designed every four years and occasionally, the model cycle for a specific car or trucks lasts more than six years. In between designs, every, vehicle are given a face-lift to help keep them looking fresh and more appealing to the eye.

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Wednesday 25 December 2019

BUSINESS DAY

FEATURE Fighting corruption alone cannot guarantee economic development Efosa Ojomo

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and consumers are poor.

But the more I learnt about the relationship between innovation and corruption, the more I started to see things differently. This is how this played out in Sub-Saharan Africa as the region developed its telecommunication industry.

In the late 1990s, less than 5% of Sub-Saharan African had phones.

In Nigeria, for example, the country had more than 110 million people but fewer than 500,000 phones in the entire nation.

This fuels wide spread corruption in the entire industry. Public officials who worked for state government owned phone companies demanded bribes from people who wanted phones. Because most of the people couldn’t afford to pay the bribes, phones were only available to those who were wealthy.

An entrepreneur, Mo Ibrahim decided that he will set up a telecommunication company on the continent. When he told his colleagues about his idea, they laughed at him, but Mo Ibrahim was undeterred. So in 1998, he set up Celtel. The company provided affordable mobile phones and cell services to millions of Africans in some of the poorest and most corrupt countries in the region, countries such as Congo, Malawi, Sierra Leone and Uganda.

In our research, we call what Mo Ibrahim did, a market creating innovation. Market creating innovation transforms complicated and expensive products into products that are simple and affordable so that many more people in society can access them.

In this case, phones were expensive before Celtel made them much more affordable. Now other investors, some of his colleagues saw that it was possible to create www.businessday.ng

successful mobile phone company in the continent now flooded with billions of dollars of investment.

And this led to significant growth in the industry.

From nothing in year 2000, today virtually every African country has a vibrant mobile telecommunication industry. The sector now supports close to one billion phone connections, it has created nearly four million jobs and generates billions of dollars in taxes yearly. These are taxes that government can now re-invest into the economy to build various institutions.

Now, because most people now don’t need to bribe public officials just to get phones, corruption, at least within this industry has reduced. If Mo Ibrahim had waited for corruption to be fixed in Africa before he invested, he will be waiting till today.

Most people who engage in corruption know they shouldn’t.

The public officials were demanding bribes from people before they give phones and the people who were paying the bribes knew they were breaking the law, but they did it anyway. The question is why, the answer is scarcity.

Whenever people will benefit from gaining access to anything that is scarce, it makes corruption attractive. In poor countries, we complain a lot about corrupt poli-

“

...the public officials were demanding bribes from people before they give phones and the people who were paying the bribes knew they were breaking the law

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“

n 2011, someone broke into my sister’s office at the university where she teaches in Nigeria. Fortunately, the person was caught, arrested and charged to court.

In getting to court, the guys who were handling my sister’s case informed her that they won’t be able to process the paper work unless she pays a bribe. Initially, she thought it was a joke, but later, she realised that they were serious and she became furious.

Think about it, here she was a victim of a crime who is with very people who supposed to help her and they were demanding a bribe from her.

That is one of the many ways that corruption impacts millions of people in Nigeria. Growing up in Nigeria, corruption permeates virtually every element of the society.

Reports of politicians embezzling millions of dollars were common, police officers stealing money or extorting money from everyday hardworking citizens were also common practice.

I felt that development cannot actually happen so long as corruption persisted. But over the past several years, my research on innovation and prosperity has shown that corruption is actually not the problem hindering our development. Conventional thinking on corruption and its relationship to development is not only wrong but it is holding many poor countries backwards.

The thinking goes like this, in a society that is poor and corrupt, the best way of reducing corruption is to create good laws and foster them well, and this will make ways for development and innovation to flourish. This is why many governments and development organisations invest billions of dollars annually on institutional reforms and anti-corruption programmes. But many of these programmes fail to reduce corruption because we have the equation backwards.

Societies don’t develop because they reduced corruption; they are able to reduce corruption because they have developed.

Societies develop through investment in innovation. Earlier, I thought this was impossible, why should any person with right minds invest in a society, where at least, that on the surface things were terrible to do business. Societies where politicians are corrupt

ticians who have embezzled state funds but in many of those countries, economic opportunities are scarce. So corruption becomes an attractive way to gain wealth.

We also complain about civil servants like police officers who extort money from everyday hardworking citizens. But most civil servants are grossly underpaid and living desperate lives. For them, extortion is a good way to make a living.

This phenomenon also plays itself out in wealthy countries as well. When rich parents bribe university officials so that their children can gain admission in to lead colleges, the circumstance is different but the principle is the same. Admission into lead colleges scarce, so bribery becomes attractive.

I am not trying to say there shouldn’t be things that are scarce in society or selective, what I am trying to explain is this relationship between corruption and scarcity. In most poor countries, most basic things are scarce, things like food, education, healthcare, economic opportunity and jobs.

This creates the perfect breeding ground for corruption to thrive.

In no way this excuse corrupt behaviour, it enables us to understand it a bit better.

Investing in businesses that make things affordable and accessible to so many people attacks the scarcity and creates the revenues for government to re-invest in their economies. When this happens in a country-wide level, it can revolutionise nations.

Consider the impact in South Korea. In 1950s, South Korea was a desperately poor country and it was very corrupt. The country was ruled by an authoritarian government and also engaged in bribery and embezzlement.

Like some other economies, South Korea was trapped in poverty and they referred to it as economic basket case. When you look at South Korea, even the institutions and the leaders in 1980s the country was at par with some of the poorest African countries

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at the time. But companies like Samsung, Kia, and Hyundai invested in innovations that made things much more affordable for so many people. South Korea ultimately became prosperous.

As the country becomes prosperous, it was able to transition from authoritarian government to a democratic government and has been able to reinvest in building its institutions and this has paid off tremendously.

For instance, in 2018, South Korea’s President was sentenced to 25 years in prison on corruption related charges. This could not have happened decades ago when the country was poor and ruled by an authoritarian government.

As we look at most prosperous countries today, what we found was that they were able to reduce corruption as they became prosperous, not before.

Where does all this leave us?

It may sound like I am saying we should just ignore corruption that is not what I am saying. What I am suggesting though, is that corruption, especially for most people in poor countries is a work around. It is a utility in a place whether there a few better options to solve a problem. Investing in innovations that make products much more affordable for many people not only to attack the scarcity, but create a sustainable source of revenue for government to reinvest into the economies to strengthen the institutions.

This is the critical missing piece in the economic development puzzle that will ultimately help us reduce corruption.

I lost hope in Nigeria when I was 16. In some ways, the country has actually gone worse. In addition to wide spread poverty and endemic corruption, Nigeria now actually deals with terrorist organisations, like Boko Haram.

But somehow, I am more hopeful of Nigeria today than I ever been before. When I see organisations investing in innovations that are creating jobs for people and making things affordable, organisations like Lifestore Pharmacy, making drugs and pharmaceuticals more affordable for people; or Metro Africa Express tackling the scarcity of distribution and logistics for many small businesses; or Andela, creating economic opportunity for software developers, I am optimistic about the future. I hope you will be too.

Ojomo spoke in New York recently

Wednesday 25 December 2019

BUSINESS DAY

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BUSINESS DAY

Wednesday 25 December 2019

INSIGHT

Nigeria cracks down on a critic, When the Nigerian government went after a prominent detractor in the midst of a broad crackdown on free speech, it didn’t expect to stir resistance 5,000 miles away.

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peyemi Sowore watched the videos on her phone in bed in her New Jersey home, the children still asleep, the Christmas tree twinkling downstairs.

The videos showed her husband — a former presidential candidate and the publisher of a website known as Africa’s WikiLeaks — being wrestled to the floor in a Nigerian courtroom by a man in a black suit, as lawyers in wigs and gowns crowded around shouting.

The court had ruled that her husband, Omoyele Sowore, should be free on bail while awaiting trial on charges of treason, money laundering and, for criticizing President Muhammadu Buhari on television, cyberstalking. But on Dec. 6, while his wife slept more than 5,000 miles away, Mr. Sowore was taken from the courtroom back into detention, where he has been held for nearly all of the past five months.

Before Mr. Sowore was led away by Nigeria’s equivalent of the Secret Service, he was videotaped saying that these “might be my only words on record before they kill me.” His wife has had no contact with him since.

When Mr. Buhari was elected in 2015 as president of Nigeria, Africa’s most populous country and largest economy, it was hailed as a triumph for democracy. Since then, however, his government has turned toward harsh authoritarianism, putting the country’s thriving civic organizations and news media to the test.

Protests have been met with deadly force. The country’s chief justice was summarily sacked. Humanitarian organizations that criticize the state were threatened with closure, and newspaper offices were raided. One journalist, Jones Abiri, has been in detention so long that for a time, he was thought to be dead.

One bill now making its way through Nigeria’s Senate proposes the death penalty for some instances of “hate speech.” A second, the AntiSocial Media Bill, modeled on a new Singaporean law, calls for

Opeyemi Sowore, whose husband is jailed on political charges in Nigeria, with family members and neighbors tying yellow ribbons to a tree in Haworth, N.J., where they live.Credit...Gabriela Bhaskar for The New York Times

government critics to spend as much as three years in prison.

Nig e r ia is n o t a l on e i n clamping down on freedom of expression. ​A punitive new security law ​ i n traditionally media-friendly Burkina Faso, a proposed hate speech measure in Ethiopia, a harsh crackdown in Tanzania and routine internet and social media shutdowns across Africa point to a wider trend toward censorship.

“The people in power just don’t want to have to tolerate the voices of the people,” said Ayisha Osori, head of the Open Society Initiative for West Africa.

African leaders feel emboldened to strangle the news media because of a perceived global rollback in democracy, she said.

Mr. Sowore founded a website in 2006, Sahara Reporters, that specializes in exposing corruption and government malfeasance. With funding from American foundations and about 50 staff members working in Nigeria and the United States, the site’s publication of

Omoyele Sowore in court this month in Abuja, Nigeria.Credit...Afolabi Sotunde/Reuters

Wednesday 25 December 2019

BUSINESS DAY

35

INSIGHT

, and a US town fights back

Mr. Sowore’s supporters demonstrating in front of the Nigerian Consulate in New York this month.Credit...Gabriela Bhaskar for The New York Times

in another coup, he jailed hundreds of people, made tardy civil servants do frog jumps and had three men executed.

By the time he was democratically elected three decades later, in 2015, it was on promises to tackle corruption and insecurity. Nigeria was battling Boko Haram, oil theft and violent clashes across the country. He often appeared frail, said little in public and spent many months of his first term being treated for a mysterious illness in London.

Sahara Repor ters wrote about the absences and allegations of his allies’ corruption, and Mr. Sowore openly condemned the government for failing to meet its promises. He ran unsuccessfully for president against Mr. Buhari in February, and was preparing to lead a protest calling for revolution when he was arrested on August 3.

At the time, La Keisha Landrum Pierre, Sahara Reporters’ chief operating officer back in

leaked, often unfiltered information disrupted Nigeria’s traditional media scene.

By basing his operation in New York, Mr. Sowore for years had a degree of protection from the consequences of publishing often scandalous information about Nigeria’s most powerful people. He shuttled between his family home in New Jersey and Nigeria, where he is a citizen, without much interference.

Then, on Aug. 3, in the middle of the night, he was arrested by Nigeria’s Department of State Services, or D.S.S., in his Lagos hotel room.

At first, Opeyemi Sowore told no one in Haworth, a well-off suburb about 20 miles from midtown Manhattan, about her husband’s arrest.

None of them knew much about Nigeria, or what Mr. Sowore, known as Yele, did for a living. As far as they were concerned, he was just a dad and a keen runner.

One day, though, texting with another mother with children at the local school, Ms. Sowore explained why her husband had been away so long.

Word traveled fast in Haworth, a town of 3,500 people.

“One mom told another mom, told another mom, told another mom, and next thing we knew we had assembled what really is functioning as a crisis management team,” said Alanna Zahn Davis, one of the mothers in that chain.

If Mr. Buhari’s government had gotten tough, so would Haworth.

A core group of 10 women raised the alarm at the State Department.

Then they reached Amal Clooney, the human rights lawyer, who demanded Mr. Sowore’s release. They worked with Amnesty International,

New York, was heavily pregnant.

When she gave birth five days later, she was managing the company’s biggest crisis ever.

It keeps getting bigger.

She said that the Nigerian government had frozen the site’s financial account.

“There have been armed D.S.S. men standing outside our offices” in Nigeria, said Ms. Landrum Pierre, in between calls and meetings in Manhattan. She had to cut the staff by 70 percent, and said that most of the remaining employees, feeling intimidated, were staying at home.

which declared him a prisoner of conscience.

Sometimes they prepared meals for Ms. Sowore, a marketing executive, or looked after the couple’s two children. Inspired by an American tradition of using yellow ribbons to remember hostages, they held “Yele ribbon” ceremonies in Haworth’s tree-lined town center, attended by hundreds of people.

After the courtroom melee, they called members of Congress, engaging New Jersey Senators Robert Menendez and Cory Booker. Six members of Congress sent a letter on Friday to Nigeria’s attorney general condemning the treatment of Mr. Sowore.

His detention “will only serve to tarnish Nigeria’s international reputation and its standing as a leading African democracy,” they wrote.

Before his arrest, Mr. Sowore was often accused of favoring Mr. Buhari, even helping him get elected. Sahara Reporters’ relentless exposés of graft under the previous government meant Mr. Buhari’s vow to sweep the country clean of corruption resonated with voters. One of Mr. Buhari’s earliest interviews as president was with Sahara TV. However, Mr. Buhari’s administration turned out to have a corrupt bent, too, along with authoritarian tendencies, said Chidi Odinkalu, the former chairman of Nigeria’s Human Rights Commission.

“Yele ribbon” ceremonies in Haworth’s tree-lined town cen-

On Dec. 6, the court scheduled Mr. Sowore’s trial for February, but he did not remain free on bail as previously ordered. Instead, Mr. Sowore’s lawyers and family maintain, D.S.S. agents attacked Mr. Sowore while still in the courtroom and ultimately took him back into custody.

The D.S.S. said in a statement that it had rearrested Mr. Sowore because of public comments it claims he made the prior night promising to pursue his cause. A D.S.S. spokesman also claimed that Mr. Sowore’s supporters had staged the courtroom attack and were trying to frame its agents.

Ms. Sowore said that watching the videos made her afraid for his life.

“The hardest part about it for me was — how do I tell my kids?” she said.

They have tried to help. For the Haworth school fair in early December, their 12-year-old daughter Ayo made and sold

Ms. Sowore with her children, Komi and Ayo.Credit...Gabriela Bhaskar for The New York Times

ter were attended by hundreds of people.Credit...Gabriela Bhaskar for The New York Times “The Buhari administration has proved to be at least as bad, if not much worse” than the prior administration that Mr. Buhari had promised not to emulate, said Mr. Odinkalu, who is facing prosecution himself after he criticized one of the president’s close allies.

This was not a great surprise to those who remember how Mr. Buhari, now 77, first came to power in 1983 as a major general in the wake of a military coup. Before being overthrown

slime and stress balls, planning to put her profits toward her father’s bail. Her mother had to explain that he had already posted bail, but still wasn’t allowed out. Ayo gave her $80 to Amnesty International instead.

Ten-year-old Komi’s desires are clear from his Christmas list.

He wants: 1. A remote-controlled racing car that can climb walls.

2. An Apple watch.

3. His father safely home.

4. A turtle.

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Wednesday 25 December 2019

BUSINESS DAY

news Access Bank beats others to remain Most Sustainable Bank in Nigeria

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ccess Bank plc was recently acknowledged as the Most Sustainable Bank in Nigeria for the third consecutive time at the 2019 Central Bank of Nigeria Sustainability Awards held at the 2019 Bankers’ Committee Gala Night in Ogere, Ogun State, Nigeria.

The bank was also awarded first position in other categories such as the ‘Most Sustainable Transaction of the Year in Agriculture’ and the ‘Most Sustainable Transaction of the Year in Oil and Gas.’ Additional wins include the ‘Most Sustainable Transaction of the Year in Power’ and the ‘Bank of the Year in Women Economic Empowerment.’

According to Herbert Wigwe, the group managing director of Access Bank, the Awards are a “testament to Access Bank’s sustainability commitment.”

“Our vision is to be the world’s most respected African Bank and sustainability is critical to our achieving this,” he said.

The bank’s head of sustainability, Omobolanle Victor-Laniyan, said, “In our determined effort to offer more than banking, we will continue to set the standards for responsible business practices and

demonstrate corporate brand commitment to a d d re s s i n g s o c i a l , e c o nomic, and environmental issues.”

The bank has pioneered many innovative sustainability initiatives, some of which include the establishment of the first-ever disability-friendly inclusion hub to promote the access of persons with disabilities to ICT skills and opportunities - in partnership with Project Enable; the creation of a digital, toll-free platform to address gender violence in partnership with HACEY Health Initiative; up-cycling of waste and recycling of paper to pencils, among many others.

Other recognitions accorded the Bank in recent months include the ‘Outstanding Business Sustainability Award’ at the 2019 Karlsruhe Sustainable Finance Awards; ‘Most Socially Responsible Company of the Year (Overall Winner)’ at the 2019 Sustainability, Enterprise and Responsibility Awards (SERAs); ‘Bank of the Year’ Award at the 2019 Banker Awards; ‘Best Bank in Nigeria’ and ‘Best Product Launch (Pan Africa)’ Awards at the 2019 Europe, Middle East and Africa (EMEA) Finance Awards.

Passengers struggling to board free train ride from Ibadan to Lagos as part of activities to text run the new railway at the Ologuneru Station in Ibadan.

Korean shipper SHI turning Nigeria into Africa’s vessel construction hub - NCDMB ISAAC ANYAOGU

Ethics and Corporate Compliance Institute of Nigeria lauds NIPC on transparency HARRISON EDEH, Abuja

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irector-general, Ethics and Corporate Compliance Institute of Nigeria, Agabaidu Chukwuemeka Jideani, has commended Nigerian Investment Promotion Commission (NIPC) on its commitment to transparency through making mandatory information available on its website.

Agabaidu, who in the company of the officials of the Ministry of Justice, gave the commendation during a public institution implementation and compliance visit on the Executive Secretary of the Commission, a statement issued by the commission on Tuesday said.

Recall, in September this year, NIPC emerged second out of the 191 Ministries, Department and Agencies (MDAs) that were assessed for the 2019 National FOI Compliance & Transparency Ranking.

The parameters for the ranking were proactive disclosures, responsiveness in the request for information, level of disclosure, FOI training, and timelines with the Freedom of information (FOI), capacity building of its staff on the FOI Act and overall institutional development.

While commending the Commission as one of a few

government agencies that trained its entire staff on the Freedom of Information Act, he stated that the Commission had become a benchmark on how to achieve compliance with FOI obligations and proactively published the mandatory information required.

In response, NIPC’s chief executive, Yewande Sadiku, said the Commission was working on improving its current national ranking, which resulted from staff ’s hard work because of the believe that it could be done in-house. She noted that the required reports were increasingly produced as soon as the quarter ended. With the improvement in FOI, she noted that the Commission was setting its sights on global standards in line with Nigeria’s Open Government Partnership (OGP) commitments.

It would be noted that NIPC recently upgraded its website (www.nipc.gov.ng) to meet the information demands of the investing community and other stakeholders.

The upgraded site has a simplified design for easier navigation, and proactively provides information that should enable investors make better informed decisions on Nigeria as a preferred investment destination. www.businessday.ng

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xecutive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, says the successful completion of the Egina Floating, Production, Storage and Offloading unit (FPSO) by the Korean shipbuilding firm, Samsung Heavy Industries (SHI), has not only placed LADOL free zone on global map but significantly transformed Nigeria into a hub for fabrication and integration of FPSO, unit in Africa.

An impressed Wabote at a capacity workshop for media stakeholders organised by NCDMB in Lagos recently said LADOL would ever be grateful to SHI for this great exposure.

The theme of the workshop was: “Strategic Communication - a Cr itical

Enabler to Attainment of Nigerian Content 10-Years Roadmap.”

Speaking through Ginah O. Ginah, the NCDMB’s general manager, corporate communications and zonal coordination, the NCDMB boss said Nigeria through the Egina FPSO project had become a reference point in giant FPSO construction.

“Of course, it is on record that LADOL was existing but it did not have the capacity.

So, what did we do - which is in a way like the 10 years’ roadmap, during when we intend to achieve 70 percent attainment; so the calculation was that, ok, the South Korean people, significant part of the FPSO to be constructed in-country; so, we can begin to build capacity in Nigeria.

“Even the parts that are made in Nigeria - we understand that the capacity was

not there also; so, we have to engage SHI and other companies in Nigeria in building capacity.

“We engaged companies in Port Harcourt and other places, and yet all these places did not have the capacity as at then but we calculated that by the time the South Korea will finish their job we should be able to build the capacity in this country. So, it was a big risk, so, LADOL was already existing and they were praying for one big project that they will break all the records and the big project came.

“So to LADOL we were sent

by God; we are the one complaining. LADOL is now known everywhere in the world, and they have made more money through this project than they have made before altogether,” Wabote said.

Wabote said the successful construction and local

integration of the Egina FPSO in Samsung’s fabrication yard in Lagos was a key success story in the Nigerian content initiative.

“Under the local content implementation, we have seen a major breakthrough with the massive investment by Samsung in Lagos. The successful construction and integration of the FPSO for the Egina project is worthy of mention, and this is a key success story and going forward this singular asset will bring about massive revenue to the country as we expect other African countries to take advantage of this facility than going outside the shores of the continent for FPSO construction,” Wabote explained.

“Samsung has proved to have effectively transformed the country into FPSO construction hub, and recall we were doing this in Korea before now,” Wabote said.

Buhari to bandits, kidnappers: Retrace your steps or...

Tony Ailemen, Abuja

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resident Muhammadu Buhari has warned bandits, kidnappers, armed robbers terrorising Nigerian roads and causing sleepless nights to retrace their steps or be prepared to meet their ends.

The warning was contained in a Christmas message by the President where he also felicitated with Christians and all Nigerians in general, on the joyous occasion of Christmas The president in a message he signed, called on all evil doers to, in the spirit of Christmas, drop their evil ways or meet their Waterloo.

“It is in the Spirit of Christmas that I call on all elements whose actions are opposed to what the season represents,

especially, insurgents, terrorists, armed robbers, kidnappers and economic saboteurs, to retrace their steps and join people of goodwill and common humanity.

“If they fail to heed this call, they will meet their end as the armed forces, security and law-enforcement agencies are poised now to confront and defeat them.”

The President while also urging Nigerians to make extra efforts to live in peace and harmony with their neighbours, irrespective of differences, enjoined all Nigerians to imbibe and demonstrate the essence of the season of love; goodwill among all the ethnic groups in the country; giving and sharing; strengthening the bonds of brotherhood and good neighbourli-

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ness; and focusing on all that bind us together as one united country.

“While it is gladdening to note that incidents of violence and conflicts have reduced drastically owing to the several operations embarked on by our security agencies, we must not let our guards down.

“As Christmas indicates good tidings of hope and redemption, Nigerians can look forward to a turnaround in the administration’s priority areas of fighting corruption, providing security, economic diversification, job creation and infrastructure upgrade.”

Speaking on the recently signed the 2020 Appropriation Bill into Law, the President reiterated his early promise to implement the @Businessdayng

budget fully.

“We remain resolutely committed to the actualisation of our vision of a bright and prosperous future for all Nigerians.

“The 2020 Budget of Sustainable Growth and Job Creation will be rigorously implemented to further deepen its impact on the generality of our people.”

He commended leadership and members of the National Assembly for the speedy consideration and passage of the 2020 budget proposals.

“We are confident that this new era of cordiality and cooperation between the executive and the legislature will fast-track our collective commitment to giving our people better life and governance.

Wednesday 25 December 2019

BUSINESS DAY

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news

Obaseki commiserates with Falodun over his mother’s death

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do State governor, Godwin Obaseki, has commiserated with the Rector, Edo State Polytechnic, Abiodun Falodun, over the passing of his mother at the age of 95.

In a statement, the governor said late Mama Falodun was a kind-hearted, loving and conscientious woman, noting that her death is saddening.

According to Obaseki, “It was with a heavy heart that I received the news of the passing of Mrs. Itota Falodun, at the age of 95. Mama Falodun was a rare gem, and worked assiduously to develop her immediate com-

munity, showing love to anyone who crossed her path.”

He said, “Mama Falodun walked in the way of the lord and groomed her children to toe the same path, with many of them achieving great feats in life, as a testament to the good nurturing she bequeathed to them.

“I commiserate with her son, the Rector of Edo State Polytechnic, Usen, Prof. Abiodun Falodun and his siblings over the passing of Mama. I pray that God grants the Falodun family, friends and well-wishers the fortitude to bear this irreparable loss, even as we pray for the repose of her soul.”

NNPC reaffirms support for Waltersmith Modular Refinery

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ommendations and support continue to swell for Nigeria’s leading integrated energy company, Waltersmith Petroman Oil, as the completion date for its modular refinery draws close.

Speaking at a courtesy visit by the management of Waltersmith, the Group managing director of NNPC, Mele Kolo Kyari affirmed its willingness to support Waltersmith to ensure the take-off of Waltersmith’s modular refinery scheduled for May 2020.

Kyari stated that NNPC recognised Waltersmith as one of the most efficient operators in Nigeria, and encouraged it to make use of any opportunity to leverage NNPC’s assistance.

The GMD stated that NNPC was willing to collaborate with Waltersmith’s Modular refinery given the progress of the Refinery and the track record of Waltersmith’s operations in the country.

In his response, the chairman of Waltersmith, Abdulrazaq Isa, congratulated the GMD on his recent appointment and expressed his appreciation to NNPC for the support given to Waltersmith throughout the years.

In a similar vein, the managing director/CEO of Waltersmith, Chikezie Nwosu, stated that Waltersmith was also willing to work with NNPC on its plans to change the refinery landscape in Nigeria.

Furthermore, Nwosu requested NNPC’s support to ensure Waltersmith’s access to constant feedstock for its refinery operations, stressing that this was crucial to security of production in the area, the overall growth and sustainability of the refinery and its attendant effects on commercial activities to the benefit of the communities.

The GMD reiterated NNPC’s commitment to support indigenous companies like Waltersmith who are genuinely interested in growing the energy sector and contributing to the overall growth and development of Nigeria.

The Waltersmith 30,000bpd modular refinery project took FID in September 2018 with an 18-month delivery time from November 2018 to May 2020 for its Phase 1. This phase is planned to be commissioned in May 2020, having already reached ninety percent completion. Phase 1 of this project is expected to create several direct and indirect jobs for the host community and contribute an estimated 271 million litres of refined products including Diesel, Naptha, HFO and kerosene annually to the domestic market.

The ground-breaking ceremony for Phase 2 will hold in May 2020 and the product volumes, on completion, will be significantly higher than for Phase 1 and will include PMS and Aviation Jet fuel.

Orient Garden City partners Imo to provide quality housing IFEOMA OKEKE

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rient Garden City has collaborated with Imo State government to ensure quality housing in the state.

The present administration led by Governor Emeka Ihedioha promised a total revamp of the state infrastructure. This scheme is one of his major milestones to bring changes in residential development within the state.

The estate is located at Owerri-Port Harcourt Expressway, just after Avu Junction, New Owerri, approximately 4 minutes’ drive from Asumpta Cathedral Catholic Church, Imo State.

Orient Garden City will be among the few neighbourhoods in Nigeria that can rival other beautiful neighbourhoods of the world.

The estate, which would have a 9-hole golf course within the scheme as well as other recreations, was established to bridge the gap on the need for quality housing scheme within the state.

However, Orient Garden City Limited is a registered company with the Corporate Affairs Commission (CAC), with primary aim and objectives to provide real estate development, building construction, property and facility management services.

The company is made up of seasoned, highly skilled individuals and companies in estate development and construction, architectural designing, building engineers, town planners, property and facility managers with combined local and foreign experiences. www.businessday.ng

L-R: Babatunde Abdulqadir, head, internal audit; Adedayo Amzat, group managing director; Stella Duru, non-executive director; Idris Bello, head, finance, and Ever Obi, head, risk management, all of Zedcrest Capital at the company’s End of Year Party held in Lagos.

Human rights abuse: My conscience is clear - Buhari Tony Ailemen, Abuja

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resident Muhammadu Buhari has on the backdrop of accusations of human rights abuses and disregard for the rule of law by his administration said he was presiding over the country with a clear conscience.

The President made the remarks when he received Letters of Credence from United States of America Ambassador to Nigeria, Mary Beth Leonard, at the presidential villa, Abuja, saying the listing of Nigeria for human rights concerns created an impression that some people were being unfairly treated or marginalised in the country.

In a statement, presidential spokesman, Garba Shehu, quoted Buhari as saying: “I know that those with access have created an impression of being marginalised. I sit here

with a clear conscience. I took an oath and I am honouring the office.”

The United State authorities had in reaction to human rights violations in Nigeria, placed the country on a Special Watch List for tolerating “severe violations of religious freedom.”

Obviously disturbed by the development, Buhari used the meeting to appeal to the United States of America to ensure that its sources of information on Nigeria cut across all sectors as some people might provide misleading and manipulative narratives for self-serving purposes, ignoring the larger picture of a united country.

The President said the listing of Nigeria for human rights concerns created an impression that some people were being unfairly treated or marginalized in the country.

President Buhari said he took some time to explain the

situation in the country when he met with President Donald Trump in Washington DC as the American President expressed concern with reports of attacks on segments of the society.

“It is not an easy task to work for the unity of the country, and I am doing my best. During your stay in the country I am asking you to ensure that your sources of strategic information cut across,’’ he added.

The President urged the envoy to use the opportunity of her posting to Nigeria, with her experience, knowledge and energy to get the facts on the country.

In her remarks, the United States Ambassador said Nigeria was listed on a watch list to deepen conversation on the humanitarian situation in the country, accepting that some people could “flare the flames and crystalise issues’’ that could

affect peaceful-coexistence.

“There are people who make things less attractive than they seem,’’ she said, noting that the report will deepen conversation of the situation in the country, especially with religious leaders and mediators.

“I want to assure that the United States recognizes and celebrates the integration in Nigeria.’’

She said the United States would always side with transparent processes.

The Ambassador said Nigerians and America have a lot in common in terms of “being big among neighbours, enthusiastic and entrepreneurial.’’

Leonard assured President Buhari of support from the United States, especially on the humanitarian challenges, while appreciating the willingness to always share useful information and intelligence with her country.

German government, FG, Edo empower 60 lady mechanics on automobile skills IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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s part of its job creation policy, the German Agency for International Cooperation (GIZ), in partnership with Federal and Edo State governments and Lady Mechanic Academy, has empowered 60 women in automobile skills.

The ladies were trained in different areas of specialty, which include: automechanic, auto-electrician, and diagnostic technician, body spraying and quick services.

The graduation ceremony, which took place in Benin City, saw the graduands being empowered with starterpacks.

Speaking at the graduation ceremony, Esosa Okuko, Edo State coordinator, Migration for Developments under the GIZ programmem said the programme was geared towards providing reintegration and integration support both for returnee migrants as well as youths in the state.

According to Okuko, we

have our vocational skills training and under which we have trained 25 ladies in the auto repair and mechanic that are graduating today.

Okuko, who encouraged the graduands to put into practice what they learnt during the training, noted that it would also encourage the German government not to relent in providing the necessary support to sustain the vocational training.

Earlier, in her address, the founderCEO of Lady Mechanic Academy, Sandra Aguebor, noted that a total of 60 ladies were trained out of which 25 were sponsored by the German government while 35 were supported by the Edo Youth Academy under the Edo State government.

Aguebor, who commended the GIZ and Edo State government for the partnership, noted that the major objective of the empowerment was to lift women out of poverty.

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She said the GIZ provided starter packs which include tools boxes, spraying machines, sewing machines, among others, while the wife of the state governor, Betsy Obaseki, provided the diagnostics machines.

She however commended the Edo State Governor Godwin Obaseki for giving opportunity to the academy to repair the government’s fleet of vehicles through which the institution was able to train the graduating ladies.

She said the girls who were trained free of charge added that starter packs were also for the graduands to start their own trade.

Aguebor added that the initiative has changed the narratives of Edo girls and has consequently reduced the number of girls traveling abroad to perform social vices.

She however, called on organisations to sponsor the initiative so that more girls can acquire skills in auto mechanic among others. @Businessdayng

In her remarks, the Edo State director, Federal Ministry of Labour and Employment and Head of Migrant Resources Centre (MRC), Florence Owie, said GIZ in collaboration with her ministry is in the position to create employability facilities for Libya returnees and youths in Edo state.

Owie said the bilateral agreement signed with GIZ to execute the project has been ongoing in Abuja and Lagos for the past three years, but came into Edo state last year.

“We are here to celebrate the 25 ladies who are lady mechanics in various areas.

So, this training has been going on for the past three months to these females in mechanics to specialise in different areas.

“Today, marks the gradu at i o n , a n d t h e f e d e ra l ministry of labor and employment being in collaboration with GIZ to carr y out this project is why we are here to celebrate with them,” she said.

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Wednesday 25 December 2019

BUSINESS DAY

news DSS frees Sowore after FG’s directive...

Continued from page 1

a few hours after Abubakar Malami (SAN), Attorney-

General of the Federation and Minister of Justice, directed DSS to release the Sahara Reporters publisher and Sambo Dasuki, a former National Security Adviser.

In a statement, Malami said the Office of the Honourable Attorney General of the Federation has reviewed the pending criminal charges against the duo of Col. Sambo Dasuki (rtd.) and Omoyele Sowore.

“Whilst the Federal High Court has exercised its discretion in granting bail to the defendants in respect of the charges against them, I am also not unmindful of the right of the complainant/prosecution to appeal or further challenge the grant of bail by the court having regards to extant legal provisions, particularly Section 169 of the Administration of Criminal Justice Act, 2015,” Malami said in a statement.

“However, my Office has chosen to comply with the court orders while considering the pursuit of its rights of appeal and/or review of the order relating to the bail as granted or varied by the courts. In line with the provisions of Sections 150(1) of the 1999 Constitution (as amended), and in compliance with the bail granted to Col. Sambo Dasuki (Rtd) (as recently varied by the Court of Appeal) and the bail granted to Omoyele Sowore, I have directed the State Security Services to comply with the order granting bail to the defendants and effect their release.

“The two defendants are enjoined to observe the terms

of their bail and refrain from engaging in any act that is inimical to public peace and national security as well as their ongoing trial which will run its course in accordance with the laws of the land,” he said.

Malami’s order came four days after members of the Congress of the United States wrote him a letter regarding the continued detention of Sowore, “a New Jersey resident, who was arrested on August 3rd and charged with treason, money laundering and cyberstalking associated with his call for demonstration”.

The letter dated December 20, 2019 and signed by US Senators Robert Menendez, Charles E. Schumer, Christopher A. Coons and Cory A. Booker, and two members of Congress, seen by BusinessDay, expressed concern “that established legal procedure and the rule of law are not being followed in his case”.

Following Malami’s order, Sowore was released from the custody of the DSS at the agency’s headquarters in Abuja at about 6.20pm on Tuesday.

However, BusinessDay could not ascertain whether Dasuki, who was also to regain his freedom after being in detention since 2015 for allegedly diverting funds meant to tackle insurgency in the North-East, was also released

by DSS in accordance with Malami’s directive.

DSS had ignored several court orders to release Dasuki since 2015, including the latest by the Court of Appeal sitting in Abuja on July 10, 2020 after reviewing his bail conditions.

Buhari, Gbajabiamila, Obaseki, others...

Continued from page 2

as a people to take time and pray for our country,” Gbajabiamila said in a statement

by Lanre Lasisi, his special adviser on media and publicity.

“I admonish my Christian brothers and sisters to pray for our continuous survival in peace and unity as a country. I also urge them to emulate all that Jesus Christ stood for: his love for humanity, his peacemaking nature, his magnanimity, his accommodating mind and everything the Christ was known for. Once again, I wish all Nigerian Christians merry Christmas,” he said.

Godwin Obaseki, Edo State governor, urged Nigerians to show love and reflect on the teachings of Jesus Christ as they mark the Christmas celebration.

“Christmas season is an auspicious occasion to show love and reflect on the life of Jesus Christ, whose birth we are commemorating,” Obaseki said in a statement. “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.”

Muhammad Bello, minister of the Federal Capital Ter-

ritory (FCT), in his Christmas message urged Christians to imbibe the virtues of humility, courage, honesty and love for one another which Jesus Christ epitomises, while Ndudi Elumelu, minority leader of the House of Representatives, urged Nigerians to use the occasion of Christmas to rekindle their love and respect for one another which, he said, are necessary to promote coexistence in the country.

On its part, the ruling All Progressives Congress (APC) enjoinedChristiansandallNigerianstoimbibethemanypositive lessonsofthebirthofJesusChrist to rededicate themselves for the greatness of Nigeria.

The APC said the special day is as momentous as it is significant, and called on all Nigerians to fully appreciate the need to redouble their efforts in the quest to ensure the peace, progress, stability and economic prosperity of their great country.

According to the ruling party, achieving these noble objectives would only be realised if exemplary virtues such as peaceful disposition, sacrifice and tolerance, which Jesus Christ’s life embodied, are practised in Nigerians’ day-to-day life. www.businessday.ng

L-R: Stella Hudu-Magaji, retail sales coordinator, Yaba-Surulere Region, Fidelity Bank plc; Ben Igweneme, husband of the cash prize winner of N2 million; Sandra Igweneme, winner of N2 million, and Amara Nwachukwu, branch leader, Fidelity Bank plc, Tejuosho Branch, at the second monthly/first bi-monthly prize presentation of Get Alert in Millions season 4 (GAIM 4) in Lagos.

Dying in instalments: How a polluting...

Continued from page 1

demonstration of contrition

and a public relations ploy.

On October 23, we accompanied a team comprising officials of the environmental non-profit, Sustainable Research and Action for Environmental Development (SRADev), and the government agency in charge of enforcement, the National Environmental Standards and Regulations Enforcement Agency (NESREA), to visit Everest Metals’ recycling plant to confirm claims of improved processes after a hard-hitting investigative piece last year exposed how the company’s operations were polluting the environment.

Tests confirmed that many in the community had high levels of lead in their blood.

At above 5 micrograms per decilitre, the US Centre for Disease Control (CDC) regards it as a reference level for lead poisoning at which it recommends initiating public health actions.

The World Health Organisation (WHO) says blood lead above 10 micrograms per

decilitre is a high level of concern and classifies it as lead poisoning. Forty-six samples exceeded the WHO threshold of 10 micrograms per decilitre of blood in the community.

Prior to this visit, we had kept in touch with the community for a year tracking what has changed. The installation of electricity transformer that day was one of such overtures by the company including a medical outreach to the community.

Relations between the company and the community have improved. Last year, it seemed as though the dictionary didn’t have a word bad enough to describe the company. Some of the terms used to describe the Indian owner were not suitable for dinner table conversation – even if drunken sailors were dining. One year later, this same people are leading efforts to help save the company.

“Please do everything possible to support Everest. The managing director, Vikas Das, said the report you wrote has seriously affected the company, and many workers

including community members are at risk of losing their jobs. Please help the company in any way you can,” wrote Noel Rufus, one of the community leaders who only last year came a short crawl away from accusing the company of mass murder.

The price of change Since our first publication in Nigeria on December 14, 2018, the fortunes of the company and the lead industry in Nigeria have taken a hit. The European Union has banned imports of recycled lead from Nigeria. European car makers have had to find other sources for lead ingots impacting an industry worth millions of euros.

The Nigerian government that had hitherto been unwilling to proactively regulate the sector, and whom its officials are accused of receiving kickbacks from operators to circumvent its own regulations, was jolted into action after the publication because it was hit where it hurts – revenue from exported lead to Europe thinned.

The ban of lead exports from Nigeria cut off a chunk of revenue the Ministry of

Previous furnace had no system to contain dust (2018) https://www.facebook.com/businessdayng

Environment makes from granting licence to exporters and to Customs from processing containers for exports.

More importantly, it cast an uncomfortable searchlight on Nigeria’s failure to meet its commitment on managing hazardous waste under the Basel Convention.

“Since the story, we’ve had to complete compliance with European Union standards,” says an official in the Ministry of Environment who shared a list of compliance form the European countries were now asking to see before they resume business with lead recyclers in Nigeria.

The government now insists that operators must join Extended Producer Responsibility programme which compels importers of hazardous waste to manage the product throughout its lifecycle to the market. NESREA has also stepped up monitoring and enforcement, even though investigations show more needs to be done.

For Everest Metals, the company’s revenue which was already in dire straits before the article was published further took a beating. Its European market responsible for 70 percent of revenue was cut off. Facing certain economic ruin, the company began shopping for new markets in China and India. Nothing compels a company to behave better than when profits are threatened.

“We are suffering since last year,” said Das, managing director of Everest Metals. “We have lost our key buyers and we are looking for new buyers.

Our buyers say we must rectify our systems and keep them at standard level before they can buy from us again.”

Not yet Uhuru Prior to conducting us round his improved factory, Das said the company has invested millions of naira on

Continues on page 39 @Businessdayng

Wednesday 25 December 2019

BUSINESS DAY

39

news Dying in instalments: How a polluting...

Continued from page 38

improving the facilities. The battery recycling activity is done farther away from the community. Acidic, waste water from the recycling process is now sent through pipes to an Effluent Treatment Plant to be collected and processed, rather than drainages in the community. Workers handling dangerous processes now wear Personal Protective Equipment (PPE).

However, Andreas Manhart, a senior researcher at Oko Institute, an environmental think tank, after accessing pictures and videos of the factory, said much work still needs to be done. When the fume hoods over the furnace were turned on, suction was still not at full speed indicating that filter dust will still contaminate the air. Slags were lying around and being toxic, they should not be stored in the open but used for floor tiling within smelters.

Batteries are still being

broken manually, and “this is dangerous”, says Manhart.

“Ideally, they should have a closed machine for that.”

According to Manhart, proper practice requires that workers be provided with fresh working clothes every day. Showers and a well-separated change room are needed on site. Eating should only be allowed in well-separated canteens which must be kept clean, and workers should be mandated to change clothes before taking meals. Free drinking water should be provided as drinking a lot of water reduces lead uptake. Workers manning the furnace require blood tests at least once every three months.

Leslie Adogame, executive director of SRADev, said there was a marked improvement from where the company was last year.

“As at the time we conducted the first soil samples, the company didn’t seem to be interested in following best

New furnace has tried to contain lead dust to reduce air pollution (2019)

practices, but it is obvious they are making serious efforts to improve their practices. They have also asked for our help to make their operations safer,” said Adogame.

These modest improvements have come at a financial cost. Das said the com-

pany has spent over $100,000 on remediation activities in the community and has also

spent over $50,000 on health and other community activities, including installing a transformer and health outreach programmes in the community. In addition to the transformer, the company also provided 100 electric poles, cables and paid for installation.

“I am also inviting officials of the Ministry of Environment next year to inspect our facilities and advise us on where to improve further,” said Das. Everest Metals has also signed a Memorandum of Understanding with the communitiy to further deepen its CSR activities, from buying electricity poles to grading the roads. So far, the community said Everest Metals is respecting the terms of the MoU. • This investigation was supported by the European Centre for Journalism and the Bill and Melinda Gates Foundation.

Acidic waste water from recycling process previously poured into the community (2018)

Acidic battery waste water now collected in an effluent treatment plant (2019)

NLNG Train-7 chances dim as FG fails to...

LCC not raising toll fare, but going full...

Continued from page 2

tank and three gas turbine generators.

Earlier in the year, NLNG announced that the joint venture company, SCD Group, comprising the Italian company Saipem, Japan’s Chiyoda Corporation and South Korea’s Daewoo, would undertake the engineering, procurement, and construction for the $10 billion Train-7 project.

The much-publicised FID for the NLNG Train 7 last week failed to meet the Thursday, December 19 deadline as the meeting preceding the signing dragged beyond expectation.

At the meeting in Abuja last week, investors were said to have demanded a letter of guaranty that would state expressly that the government would not tamper with the fiscal regime that would govern the operations of the proj-

ect midway.

This, BusinessDay gathered, is to guard against what has happened with the PSC Act. Government action on the Deep Offshore Basin Production Sharing Contract (PSC) Amendment Bill which has been passed into law has created a high level of uncertainty among the foreign investors and they would need assurance that would give them confidence to operate.

Unfortunately, this assurance was not forthcoming during the two-day marathon meeting that was supposed to precede the signing of the FID. The international oil companies appear to be taking their pound of the flesh from the government following the signing by President Muhammadu Buhari of the new Deep Offshore Basin Production Sharing Contract (PSC) Amendment Bill into law, www.businessday.ng

putting an end to decades of calls for review of the PSC terms.

The other investors need a letter of comfort, an industry source told BusinessDay. Already, the new PSC Act is taking its toll on the deepwater operated by the IOCs as one of them is said to be currently experiencing 40 percent cut in returns on one of its deepwater projects, meaning that it would take a much longer term to recoup returns on its investment.

NLNG is a joint venture company owned by Nigerian National Petroleum Corporation (49 percent), Shell (25.6 percent), Total (15 percent) and Eni (10.4 percent).

The Nigerian National Petroleum Corporation (NNPC), which holds 49 percent on behalf of the Federal Government, did not, however, respond to the BusinessDay enquiries as regards its role on this particular issue.

Continued from page 2

ther that the new order is in line with Governor Babajide Sanwo-Olu’s T.H.E.M.E policy to provide respite to Lagosians in terms of adequate traffic management and free flow of traffic.

According to him, LCC has merged the tolling account of Lekki-Ikoyi Link Bridge with that of Admiralty Circle Toll Plaza such that one road user can make use of one or same card to access both tolling plazas without hitches.

On the Admiralty Circle Toll Plaza, which caters for vehicle users plying Lekki-Epe-Eti Osa Road, both cash and cashless toll collections would still be allowed from road users.

“We are making every preparation like carrying out regular media campaigns using billboards, flyers, banners, news-

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paper publications and other media outlets to enlighten and educate the general public on the commencement of cashless toll collection next year,” he said.

He said there would be a demonstration of what would happen on January 1, 2020 by next week to enable the firm to take lessons from some of the teething problems that would emerge before the full or 100 percent cashless toll begins.

Omomuwasan said LCC recently launched LCC Mobile App that would enable road users to register for e-tag, call for help in case of emergencies and top up accounts from one’s home or office without having to make physical visit to LCC office.

Stating that no additional fees would be collected from road us@Businessdayng

ers that go cashless as planned, the LCC boss said that compliant road users would be rewarded with 10 percent payment discounts for using e-tags and other electronic payment systems.

He stated that LCC was also keen on offering auxiliary services that include round-the-clock patrol to aid traffic movement at black spots, ambulance service to cater for emergencies in the case of accident and protocol arrangement with police and LASTMA officers to control traffic.

He said the firm would also engage agents to handle the informal sector especially the unbanked.

Earlier, Veronica Jacob, commercial and corporate media, had described LCC as a Special Purpose Vehicle set up specifically to execute the Eti-Osa Lekki Toll Road Concession Project.

40

Wednesday 25 December 2019

BUSINESS DAY

tax issues Insurance recapitalisation: Key tax considerations for operators Chika Ozulumba, Cynthia Ibe, and Adeniyi Adeyemi

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Introduction he insurance industry plays a vital role in the economic development of a country. However, in Nigeria, the insurance industry is yet to reach its full potential.

The industry only contributes 0.7percent to the country’s Gross Domestic product and insurance penetration is estimated to be less than 1percent. The performance of this industry when benchmarked with similar industries within Africa is below expectation.

The growth of the industry in Nigeria is hindered by a combination of factors, including capital adequacy, low insurance patronage, unhealthy practices, burdensome tax regime, among several others.

In a bid to unlock the potential of the industry, the National Insurance Commission (NAICOM) attempted to introduce risk-based approach to recapitalize the industry but this action was suspended in October 2018 due to a restraining order from the federal high court in a class action suit filed by players in the industry.

However, the continued efforts to secure the required reform for the industry led NAICOM to issue a new directive on 20 May 2019 mandating insurance companies to increase their minimum paid-up share capital on or before 30 June 2020, in order to shore-up their capital adequacy: Expected corporate actions and their tax consequences The call for recapitalization is expected to have far-reaching implication on the industry. For insurers and reinsurers, the exercise has sparked a race for survival which is expected to culminate in varied corporate actions such as business combination (e.g. mergers and acquisitions), balance sheet restructuring, sale/liquidation, business reorganization and other available methods to stay afloat.

These corporate actions will equally be accompanied by various tax and regulatory consequences.

Evidently, all operators are required to submit their recapitalization plans to NAICOM for sanction before proceeding with the implementation process. It is therefore expedient for operators to properly dimension the tax implication of their chosen recapitalization strategy. This is even more important as some of the tax issues associated with a strategy may not be obvious until the recapitalization plans have been fully implemented.

In this article, we have examined the expected corporate actions that will pave the way for insurance sector recapitalization in Nigeria. We have also discussed briefly, the key tax considerations that insurance companies must examine as they race towards the recapitalization deadline of 30 June 2020.

1. Balance sheet restructuring Dominant players in the insurance industry who are already sufficiently capitalized may only require balance sheet restructuring to align their balance sheets to the directives of NAICOM. This may take the form

of capitalizing retained earnings and converting them to ordinary share capital or other forms of capitalization that is acceptable to the Regulator. a.

Excess dividend tax risk Generally, share capital transactions should be tax neutral. However, certain provisions in the Nigerian tax laws may trigger unanticipated tax liabilities in respect of such transactions where they are not properly structured. One of such provisions is Section 19 of the Companies Income Tax Act (CITA) (as amended) which imposes tax on the dividend of a company where such dividend is higher than the Company’s taxable profits in a year of assessment. Thus, insurance companies that recapitalize by converting their retained earnings to ordinary shares may be exposed to the risk of excess dividend tax (EDT) as such conversion may be deemed as a declaration of dividend and assessed to tax accordingly.

Nonetheless, the finance bill , which has now been passed by the National assembly, includes a proposal for exemption of retained earnings that have already suffered tax from excess dividend tax. Hence, where the bill is signed before January 2020 as anticipated, the risk of exposure to excess dividend tax would no longer be a source of concern for operators seeking to utilize this recapitalization option. However, where the proposal on EDT is not passed into law, such operators may be exposed to additional tax cost of 30% of their capitalized retained earnings. b.

Regulatory costs and transaction tax exposure Besides the risk of excess dividend tax, the withholding tax implication of converting retained earnings to ordinary shares will also be a cause for concern. Insurance companies intending to utilize this option may be exposed to withholding tax at 10percent of their capitalized retained earnings, as such conversion may be deemed to be a distribution of profit of a capital nature and treated as dividend, as provided in Section 9 of the CITA. In addition, CAC filing fees4 and stamp duty5 is payable upon increase in authorized share capital which may prove to be significant costs and should be given due consideration.

There is therefore a high likeliwww.businessday.ng

hood that the tax risks that is associated with this recapitalization strategy may expose operators to upward of 40percent of their capitalised retained earnings in tax costs.

2.

Business combination (mergers/acquisition) The recapitalisation exercise is also expected to create vast opportunities for business combination by way of mergers, absorption and other forms of consolidation. Before now, there has been intense call for consolidation in the insurance industry, largely inspired by the gains realized from consolidation in the banking sector. a.

Tax implication of asset transfer between related and unrelated parties The process of business combination or restructuring may involve transfer of tax assets held in form of unabsorbed tax losses and unutilized capital allowances among or between the parties involved in the process. Section 29(9) of the CITA provides the tax framework for business re-organization involving related parties. In such transactions, the parties can transfer assets to the surviving company in a merger/ acquisition arrangement. However, where the business combination involves unrelated parties (as may be the case in companies in the insurance sector), the tax concessions under Section29 (9) of CITA may not be utilized by such companies unless further structuring is undertaken to conform with the requirements of the provision. b. Optimisation of tax assets Given the financial performance of most insurance companies and the applicable tax regime, there is a high likelihood that most operators will have significant tax assets which may end up being forfeited where the transfer of such tax assets or its future utilization is restricted. While the FIRS will need to evaluate all submissions on mergers, acquisition or business organization on a case by case basis, an industry-wide concession could help to mitigate losses for operators at the risk of forfeiting their tax assets. As the reorganization exercise is regulatory induced, such concession is necessary and would ensure that FIRS permits the unconditional transfer of tax assets for companies involved in business

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combination or restructuring that arises from the ongoing insurance recapitalization exercise. Thus, insurance companies should consider their tax assets and its optimization as they decide on the strategy to adopt for recapitalization. c. Transfer costs and tax deductibility of share capital related expenses In addition, transaction taxes such as (value added tax, withholding tax etc.) associated with asset transfer under a merger or acquisition process may be material, depending on the deal adopted by an operator. For instance, where asset is transferred between unrelated parties, there may be significant transaction tax exposure as assets will be deemed to have been transferred at market value rather than depreciated tax value for related parties.

Insurance companies should also be aware that expenses of a capital nature that are related with capital restructuring will not qualify as deductible items for income tax purposes. Examples of such expenses include stamp duties and filing fees associated with merger and acquisition which may be significant, thus, creating a need to seek regulatory intervention to minimize these transaction costs and its resultant tax exposure.

3.

Sale or Dissolution of insurance companies The new capitalisation threshold may induce some insurance companies that could not meet the minimum capital requirement to liquidate if prospective buyers or investors are not forthcoming. Also, for composite insurance businesses, there is the possibility of liquidating a line of the business and this may result in significant loss from sale of assets and other components of the liquidating business. This may invariably lead to the forfeiture of tax assets as they may never be utilised.

Notwithstanding the losses of capital to shareholders due to eroded value, the liquidation or dissolution of companies may trigger tax audit exercise which will lead to various tax exposures which may need to be settled by the shareholders, especially as there are no rules in Nigeria that expressly limits shareholders’ loss in the event of liquidation.

4.

Other considerations @Businessdayng

The capital market will equally play a vital role in the recapitalization exercise of the industry. Almost 50percent of the insurance and reinsurance companies in Nigeria are listed on the Nigerian Stock Exchange.

Hence, we expect that listed operators would seek to leverage the capital market to shore up their capital by way of right issues. This is expected to be tax neutral, but the expenses associated with raising capital such as stamp duty and CAC filing fees may not qualify as deductible items for income tax purposes, as earlier discussed.

Way Forward Recapitalization in the insurance industry is expected to unlock the potential of the industry and reposition it for increased contribution to the country’s gross domestic product and economic development at large.

However, the actions of operators towards recapitalisation must be complemented with relevant regulatory intervention to ensure successful outcome of the exercise. a. Recommendations for regulators Industry operators may need to actively engage with NAICOM to re-evaluate its position on nonrecognition of retained earnings as part of minimum paid-up capital considering the adverse impact that such directive will have on operators.

It would also be useful for NAICOM to engage the FIRS, on behalf of the insurance industry, to seek relevant palliatives to minimize the tax costs associated with various recapitalisation strategies that operators may adopt.

Such palliatives might take the form of unconditional permission to transfer tax assets for insurance companies involved in business combinations; exemption of all recapitalization plans from stamp duties and transaction taxes. NAICOM’s engagement may further extend to the Corporate Affairs Commission to ensure that filing fees for all recapitalization plans is minimal, given that the exercise is regulatory driven.

The above-mentioned measures, if properly addressed, will assist in minimising the significant tax and regulatory costs that may arise from insurance industry recapitalization and ensure that this consolidation exercise focusses on making the insurance industry stronger and more resilient. b.

Recommendations for operators While recapitalization in the insurance industry is indeed a welcome development, however, like every capital restructuring exercise, it comes with complexities in the areas of capital raising together with the associated accounting implications, regulatory, taxation and a host of other issues. It is therefore paramount for operators to seek professional guidance in order to derive maximum value from this exercise and minimise tax risks.

Chika, Senior Manager; Cynthia, Manager; and Adeniyi, Senior Associate wrote from KPMG Advisory Services.

Wednesday 25 December 2019

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Sahara Group promotes clean shopping at Christmas SEGUN ADAMS

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n line Sahara Group’s commitment towards climate protection, the international energy and infrastructure conglomerate has embarked on a public education and awareness campaign to encourage smarter and cleaner shopping, not only during this season but as a lifestyle.

The campaign provides information on ways for consumers to reduce the introduction of hazardous materials into the environment and provides practical ways to cut down on excessive and unnecessary spending, a factor responsible for increased waste in the environment.

According to the energy group, one way to cut down waste is asking if such purchase is necessary in order to check the undue influence of alluring adverts and eye-popping shopping deals.

“If you don’t slow down to ask yourself if you really need

an item before purchasing, you could end up hurting your wallet and the environment,” says Sahara Group. “To avoid this, take stock of what you already have and more importantly what you haven’t used in the last year, especially clothes, shoes and toys.”

Sahara Group says the best plan is to give out items that can be re-used and make a mental note of the things you don’t need to avoid unnecessary consumption and expenditure.

Hence, creating and sticking to a budget would cut down on waste and help to protect the earth.

Consumers are also encouraged to also check if the items they want to purchase are kind to the environment.

From the excessive plastic shopping bags associated with increased shopping during this period, the duplicitous gifts, to the copious gift packaging and wraps, the environment surely feels the impact of the season, Sahara Group said. “While

these activities can’t completely be avoided, we can make them more sustainable by reducing plastic waste.”

Jute bags are suggested as an excellent alternative to plastic bags because they are reusable and biodegradable.

The Green-Life Initiative, which was launched by Sahara Group with one of its objectives being to promote sustainable living and reduce the harmful impact of human activities on the environment and to help combat climate change, has introduced recyclable jute bags as one of its ‘weapons’ in this fight as a means to educate and raise awareness on the simple “Reduce, Re-use, Recycle” mantra.

“By simply switching from plastic to recyclable jute bags when shopping this season, you are creating a cleaner, more sustainable environment by reducing the Green House Gases (GHG) emissions and contributing your quota towards combating climate change,” the Group states.

Dignitaries grace Nigerian-German Chamber of Commerce launch

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cross-section of distinguished personalities from various business sectors of the Nigerian and German economy, diplomatic community and the media were recently hosted at the German Consulate General at the official launch of the Nigerian-German Chamber of Commerce (NGCC ).

The event was attended by eminent personalities including the chairman of Sterling Bank, Asue Ighodalo, Jaiyeola Laoye, CEO of the Nigerian Economic Summit Group, Doyin Salami, chairman of the Economic Advisory Council, Bernd Tilemann, regional director for DEG, Tunde Ogunrinde, managing director, JustFood West Africa, and Babatunde Jimoh, CEO of European All Freight.

President of the NGCC, Onyeche Tifase, stated that the event was a launch pad for a more strategic future in the development of Cultural, Economic and Business

relations between Nigerian and Germany.

“Our mission at the NGCC is to foster Trade and Commerce between Nigeria and Germany, through effective stakeholder engagement and economic cooperation and our vision is to be the leading bi-lateral Chamber of Commerce promoting Trade, Commerce and Investment opportunities between Nigeria and Germany,” Tifase said.

The NGCC president acknowledged various challenges in the Nigerian operating environment, including a dearth of skills, weak regulations, absence of competitive financing, issues at ports, poor infrastructure and bureaucracy.

Therefore, a cardinal objective of the NGCC would be “enabling and advocating for a more stable and attractive business climate. Through various working committees we will provide a platform to identify and address

challenges across the key sectors of agriculture, education, construction, energy and industry,” she emphasised.

Special guest and chairman of the Economic Advisory Council, Doyin Salami, lauded the Nigerian-German Chamber of Commerce for its contributions to the socio-economic development of Nigeria, saying, “The NGCC has an important role in building a healthier and more inclusive economy that will create sustainable value for all stakeholders.”

The German Consul-General, Stefan Traumann, emphasised the importance of bilateral trade relations between Nigeria and Germany. “There are over 90 German companies which employ over 10, 000 direct staff and have a combined annual turnover of $1 billion,” he said.

TheNigerian-GermanChamber of Commerce was founded in 1986 to promote bilateral trade between Nigeria and Germany.

Group urges Buhari minister to work with Obaseki for betterment of Afenmailand IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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group under the aegis of Afenmai Patriotic Development Association (APDA) has urged the minister of state for budget and national planning, Clem Agba, to work with the Edo State government to explore the potentials of abundant mineral resources abound in Afenmailand.

Kenneth Izuagbe, the interim president of APDA, made the call on Monday at a reception party held in honour of the minister in Agenebode, the administrative headquarters of Etsako East Local Government Area.

Izuagbe, who says the region is underdeveloped despite the rich natural resources, noted that a synergistic relation-

ship with the state government would spur growth and enhance development to the area.

“So many of the federal, state and community roads are in a deplorable state and have made commerce and social life of the people miserable.

“We implore you to collaborate with the Edo State government for optimal and strategic engagement on the huge natural resources deposited in both land and seas on Afenmai land for the immediate benefits of the Afenmai community and people.

“Afenmai land is the most blessed part of our dear Edo State but yet the least developed.

“Knowing your pedigree, we believe that this your appointwww.businessday.ng

ment will kindled and trigger all that is required to address these yawning developmental gaps in our affairs as a people,” he said.

In his remarks, Clem Agba said the Afenmai land that comprised Akoko-Edo, Etsako and Owan was dominated by the best brains and leaders that had over the years demonstrated selflessness and commitment to national development.

Agba added that the Afenmai people produced the first female senator of the Federal Republic of Nigeria, Franca Afegbua, and the first Nigerian ambassador to the United Nations.

He however expressed gratitude to President Muhammadu Buhari for giving him the opportunity to serve under his cabinet as the first Afenmai person since 1999. https://www.facebook.com/businessdayng

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Christmas: Bello, Elumelu preach love, peace, harmony among Nigerians James Kwen, Abuja

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inister of the Federal Capital Territory (FCT), Muhammad Bello, has warmly felicitated with residents of the Territory, especially the Christian faithful on the celebration of Christmas.

Bello urged them to imbibe the virtues of humility, courage, honesty and love for one another which Jesus Christ epitomises.

While calling for supplications to the Almighty for the good health and wisdom of leaders at all levels of government, the minister enjoined residents of the FCT to use the joyous occasion to also pray for peace, security and economic prosperity across the Territory.

Bello also called for peaceful co-existence and harmonious living amongst all those who have made the FCT their home, reminding them that the FCT is the symbol of Nigeria’s unity and that all residents have a duty to reflect that symbol by eschewing all factors that tend to divide them and instead embrace those that unite.

According to Bello, the FCT Administration always puts the wellbeing of all residents as the focus of its developmental agenda and solicited the cooperation and support of residents for the success of all government programmes.

He expressed the appreciation of the FCT Administration to residents for their understanding and cooperation as the government implements the Safe, Functional and Efficient Traffic Management policy in Abuja.

Bello reiterated that efforts were being made to reposition the public transportation system in the Territory to better serve residents as discussions were on going with private public transport operators to provide affordable and efficient transportation services.

The FCT minister also assured residents that arrangements have been made by the relevant agencies for the provision of adequate security during the Christmas holidays and urged residents to obey all extant rules, especially traffic regulations, as well as observing the ban on the use of fireworks.

Similarly, the minority leader of the House of Representatives, Ndudi Elumelu, has urged Nigerians to use the occasion of Christmas to rekindle their love and respect for one another which he said are necessary to promote coexistence in the country Elumelu in his Christmas message also admonished Nigerians to use the yuletide season to forgive one another, eschew all divisive tendencies and rededicate themselves to acts that bring peace, unite and bind us together as a nation.

Elumelu noted that Christmas underlines the infinite love and generosity of the Almighty God, which he demonstrated in the gift of his precious son, Jesus Christ, as a sacrifice to bring salvation to humanity.

Minister lauds NNPC on proposed 1350mw independent power plant HARRISON EDEH, Abuja

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inister of Environment, Muhammad Mahmud, has commended the Nigerian National Petroleum Corporation (NNPC) on the proposed Abuja 1350mw Independent Power Plant project aimed at boosting electricity supply in parts of the nation.

Mahmud gave the commendation in Abuja during the Panel Review Meeting on the Environmental Impact Assessment (EIA) of the project.

The minister, according to a statement issued by the corporation on Tuesday, remarked that the project was critical to the Federal Government

of Nigeria given its numerous potentials to improve the power situation in parts of the country, while assuring his Ministry’s support towards ensuring actualisation of the project.

“Let me seize this opportunity to commend the management of Gas and Power Investment Company and by extension, the Nigerian National Petroleum Corporation (NNPC) for this wonderful initiative. Certainly, this project is one of the critical infrastructures that the Federal Government is making judicious efforts to embrace,” he said.

The minister, who was represented by Celestine

Gomwalk, said the ministry, through the newly constituted EIA Panel, would ensure that only decisions that are of mutual benefits to all stakeholders would be considered, pointing out that the essence of the exercise was to guarantee sustainability of the Power Plant project.

In his presentation, the Abuja Independent Power Plant project manager, Benjamin Adah, stated that part of the objectives of the proposed project was to diversify and monetise NNPC gas revenue stream through power generation.

Adah noted that it was an initiative that would assist in reducing the current gas flare

in the country.

He said the project would leverage the existing huge natural gas resources from the NNPC Upstream and the proposed Ajaokuta-Kaduna-Kano (AKK) Gas pipeline to boost the nation’s revenue base and generate employment opportunities for the youth.

The project manager informed that besides generating 1350mw into the national grid, the project would help to decongest the over-voltage on transmission network coming from closely located power generating companies in the gas producing areas.

He said the project, which would sit on a 54.7 hectares of land in the Gwagwalada area

of the Federal Capital Territory, would be co-financed by the NNPC and its strategic partner, GE/CMEC, with a combination of Debt-Equity sharing ratio of 70%:30%.

David Abang of the Research and Development Division of NNPC, which is the Project Consultant, stated that a lot of research and effort had been put into developing the Environmental Impact Assessment (EIA) of the project, stressing that a lot of similar projects had failed for lack of proper EIA study.

He said the host community, Dukpa in Gwagwalada Area Council of the FCT, was carried along in the course of conducting the EIA activities.

FG suspends NBE, REA bosses over complaints Olusola Bello

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L-R: Godwin Obaseki, governor, Edo State; Clifford Ordia, a senator, and his wife, Dora Ordia, during the governor’s visit to Ordia, to celebrate his 30th wedding anniversary in Irrua, Edo State.

Lagos Assembly moves against indiscriminate selling of gas Iniobong Iwok

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ue to increasing report of gas explosion in Lagos State, the Lagos State House of Assembly has called for proper regulations and monitoring of sales of gas in the state.

The House made the resolution after a motion moved by a member of the Assembly, Lukman Olumo, and representing Ajeromi/Ifelodun Constituency 1 during plenary on Tuesday.

Olumo stated in the motion that it was important to regulate sales of Liquefied Petroleum Gas (LPG) in residential areas in the state to curb incessant of gas explosion in the state.

The House then resolved to call on the state Commissioners for the Environment and Water Resources as well as the General Manager of the Lagos State Environmental Protection Agency (LASEPA) to enforce the necessary laws on the issue.

“The Commissioner for Energy and Mineral Resources should ensure that licenses are given to the sellers of gas in the state. The Department of Petroleum Resources (DPR) should give approval on the location of gas stations. www.businessday.ng

“The government should ensure that the cylinders imported into the country conform to the right standard,” he said.

The House also called on the Commissioner for Information to embark on aggressive sensitisation programme on the indiscriminate proliferation of gas sales outlets in the state, use of mobile phones and handling of gas cylinders.

The Motion was seconded

by Noheem Adams before it was later supported by all the members in attendance after a voice vote by the Deputy Speaker of the House, Wasiu Eshinlokun-Sanni, who stood in for the Speaker, Mudashiru Obasa.

In his contribution, David Setonji (Badagry 2) said that his community had been a victim of gas explosion in the past.

Setonji however, said that the sales of gas should be regulated, and that it could not be banned out rightly.

He said about five or six people died during the explosion in Badagry and that the government must do something about it, adding that the explosion is usually caused by high temperature.

Uzoka, Wizkid give back to thousands at UBA Foundation Food Bank

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nited Bank for Africa (UBA) plc, through its corporate social responsibility arm, the UBA Foundation, has launched an initiative to feed the less privileged across Africa during the festive season.

The UBA Foundation Food Bank is an annual event that aims to give back to society during the yuletide season and this year, thousands of indigent were beneficiaries of the community service freely offered by the bank simultaneously across the African continent.

From Senegal to Ghana, Côte D’Ivoire, Cameroon and many of UBAs subsidiaries, the focus of the food bank is to feed the poor and homeless. The UBA Foundation Garden at Marina, Lagos was the location of the food bank in Lagos.

UBA Brand Ambassador, Wizkid was delighted to contribute his time and effort to the UBA Foundation’s food bank as he fed the poor and destitute, many who were fans and felt really blessed to be receiving food and other gifts from the star boy.

Expressing his joy at being able to give back meaningfully, he said, “I am excited to be a part of this initiative, which is aimed

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at putting smiles on the faces of the needy. This is one of my passions and I am fully aligned with Africa’s global bank’ said Africa’s star boy.

UBA’s group managing director/CEO, Kennedy Uzoka who also joined staff of the Foundation and volunteers to feed the needy, explained that the Food bank initiative is one of the ways that the bank, through its foundation appreciates and supports the communities in which it operates, adding that it will be a continuous event.

Uzoka who is also the chairman of UBA Foundation, said, “As you know, giving back is one of our key tenets and we have over the years, engaged in various activities aimed at appreciating our host communities all around Africa and especially in countries where we operate’.

“At UBA, we care for the people in our societies and will continue to do all we can to ensure that we touch lives meaningfully,” Uzoka stated.

The CEO, UBA Foundation, Bola Atta, said empowerment is one of the key pillars of the Foundation, adding that the UBA foundation aims to impact positively the lives of those living around the host communities. @Businessdayng

inister of Power, Sale Mamman, on Tuesday directed the immediate stepping down of the Managing Director of the Nigerian Bulk Electricity Trading Plc (NBET), Marilyn Amobi, and suspended the Managing Director of the Rural Electrification Agency (REA), Damilola Ogunbiyi over infractions.

In separate statements by the Minister’s spokesman, Aaron Artimas, which were also posted on the ministry’s Twitter handle, the minister said the actions were a continuation of the reorganisation and sanitation going on in the ministry.

For the NBET, it said: “In view of this, the minister has also directed the constitution of a 5-man investigative committee to look into the myriads of complaints against the MD/ CEO (of NBET) with the view of restoring sanity in the management of the company.

“Consequently, she is to handover to the most senior director in the organisation,” the statement said Commenting on the suspension of the REA boss, the statement said the suspension followed some apparent infractions in the Agency which prompted the indefinite suspension.

Ogunbiyi, according to the statement, is to hand over to the next most senior officer in the Agency.

CHANGE OF NAME

I, formerly known and addressed as Solarin, Mayowa Deborah now wish to be known and addressed as Gbolade, Mayowa Deborah. All Former documents remain valid. General public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Yvonne Ivie Edionseri now wish to be known and addressed as Mrs Yvonne Ivie Banwo. All Former documents remain valid. General public please take note.

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FINANCIAL TIMES

World Business Newspaper TIM BRADSHAW AND STEPHEN FOLEY

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ber said on Tuesday that co-founder Travis Kalanick would leave the board at the end of the month to focus on his new business and philanthropy.

His departure from the ridehailing group he set up in 2009 comes after he sold the remainder of his stake in the company, which went public in May.“Uber has been a part of my life for the past 10 years,” Mr Kalanick said in a statement. “At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits . . . I will continue to cheer for its future from the sidelines.”

Mr Kalanick was ousted as chief executive of Uber in 2017 after a series of scandals and replaced with travel industry executive Dara Khosrowshahi, but remained a director and major shareholder through the initial public offering. Uber shares are down one-third since their public debut.

Regulatory filings show that Mr Kalanick has liquidated more than $2.5bn worth of stock in less than

Travis Kalanick to step down from Uber board Co-founder’s departure comes after he sold his stake in ride-hailing group

Regulatory filings show that Uber co-founder Travis Kalanick has liquidated more than $2.5bn worth of stock in less than two months © Reuters

two months, following the end of a post-flotation lock-up, and his spokesperson said on Tuesday that he has now sold all of his remaining shares in the company.

The spokesperson was unable

Development finance chief warns Beijing’s infrastructure investments will shatter economies

Bank admits former chief operating officer ordered surveillance of ex-head of HR Peter Goerke

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redit Suisse has admitted to spying on a second top executive, reigniting a scandal over the bank’s actions just as it had begun to emerge from initial allegations of snooping.

In a statement on Monday the Swiss bank said its former chief operations officer, Pierre-Olivier Bouée, had ordered surveillance of its former head of human resources, Peter Goerke. It said chief executive Tidjane Thiam had not been aware of the activity.

Credit Suisse last week launched a hastily arranged investigation after fresh allegations of corporate espionage emerged. Switzerland’s NZZ newspaper reported that Mr Goerke was tracked by a team of eight people, who monitored his home and trailed him around Zurich.

The revelations followed similar action against the bank’s former head of wealth management, Iqbal Khan, who was also shadowed.

Credit Suisse said Mr Bouée had orchestrated both instances. The bank’s board was now terminating its previous settlement with Mr Bouée, who would be considered as having been fired from his former position, it added in the statement.

“The board of directors considers the observation of Peter Goerke to be unacceptable and completely inappropriate. In no way did this operation — or the subsequent observation of Iqbal Khan — correspond to the corporate culture of Credit Suisse,” the bank’s board said on Monday.

Mr Thiam has been under mounting pressure since the Khan affair exploded into the open this year, shocking Switzerland’s staid and

notoriously discreet financial community.

Mr Khan discovered his followers, leading to a confrontation in downtown Zurich, and weeks of lurid headlines detailing a spectacular personal breakdown between him and Mr Thiam. Mr Khan has since joined rival UBS as co-head of its flagship wealth management arm.

The cases raise serious questions over Credit Suisse’s public communication of its position and the findings of its investigations.

The spying against Mr Khan was originally characterised by the bank as a rogue, isolated operation that had been conducted off the books by Mr Bouée on his own initiative.

Last week, the bank initially staunchly denied that the surveillance against Mr Goerke had occurred, insisting that its original investigation following the Khan affair had been exhaustive and found no evidence of further malfeasance.

In its statement on Monday, Credit Suisse said previous inconsistencies in its communications stemmed from the implicated staff having lied to lawyers conducting its internal investigations.

“The observation of Peter Goerke, which has now been confirmed, is inexcusable,” said chairman of the board, Urs Rohner. “It is of grave concern that the responsible individuals failed to answer truthfully about this observation during the external investigation in September 2019.

“We are aware that the observations of Iqbal Khan and Peter Goerke have damaged the reputation of our bank. With the measures that we have put in place, we are sending a clear message that the board of directors firmly rejects a culture of observation.” www.businessday.ng

arate ways at this time as it would be a distraction in our opinion if he remained in the boardroom,” said Daniel Ives, analyst at Wedbush.

“Many investors will be glad to see this dark chapter in the rear

China’s $1.3tn global spending spree will collapse, says top US official

Credit Suisse admits to second case of spying on a top executive SAM JONES

to provide further details on Mr Kalanick’s plans for philanthropy.

“Given the pace of his insider sales and other initiatives he has on the horizon, it makes sense for Uber and Kalanick to go their sep-

view mirror as the overhang from the lock-up has been a lingering cloud over the Uber name over the past few months.”

The sales give Mr Kalanick a huge war chest to finance his new venture, Los Angeles-based City Storage Systems. The start-up, better known as CloudKitchens, is buying real estate around the world to lease to restaurants serving food delivery apps, including Uber Eats, DoorDash and Deliveroo.

After previously selling about $1.4bn in Uber shares to SoftBank in a private transaction in early 2018, Mr Kalanick has selffinanced much of CloudKitchens’ expansion around the world, including to Europe, the Middle East and Asia.

“Very few entrepreneurs have built something as profound as Travis Kalanick did with Uber,” Mr Khosrowshahi said on Tuesday. “I’m enormously grateful for Travis’s vision and tenacity while building Uber and for his expertise as a board member.”

JAMES POLITI AND DEMETRI SEVASTOPULO

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top US development finance official has warned that China’s $1.3tn global spending spree on infrastructure is destined to collapse, shattering some emerging market economies.

Adam Boehler, the chief executive of the US International Development Finance Corporation, told the Financial Times that China’s international investments were “100 per cent” like a house of cards because of “debt overload, poor infrastructure, bribes [and] lack of transparency”.

“Everything comes around, it’s only a matter of time. It was only a matter of time before WeWork came around, right?,” Mr Boehler said, referring to the distressed office rental start-up that unravelled this year. “We have to be there as an alternative because I could see China take down a whole bunch of emerging countries . . . there will be more and more cracks and then the glass will break,” he added.

Mr Boehler, a former US healthcare official and executive, became head of the DFC late this year after the agency received a big funding boost from Congress that doubled its war chest to up to $60bn and allowed it to make equity investments.

As well as ensuring that US businesses pump more money into developing countries, the DFC is also much more explicitly tying its deals — including loans, loan guarantees and risk insurance — to the Trump administration’s national security priorities, including challenging China’s growing economic and stra-

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tegic influence around the world.

“My job isn’t to go out and make up American foreign policy,” Mr Boehler said. “[But] we co-ordinate very heavily with [the] NSC, with State, USAID, USTR, to get a US government view when we approach things. We’re cognisant of what China is doing, but it’s not a reaction to China . . . playing offence not defence here,” he added.

Although the DFC — which was previously known as the Overseas Private Investment Corporation — is not ruling out investments in traditional infrastructure such as ports, motorways and bridges, it is increasingly looking to compete with China in funding advanced technologies, including 5G, both in terms of building out the networks and participating in spectrum auctions. “It doesn’t have to be the United States, it doesn’t have to be a US-based company. But we do care quite a bit about that data being secure,” Mr Boehler said.

The DFC is also part of the US government’s broader effort to stop countries from using technology run by Huawei, the Chinese telecommunications company that is accused by Washington of espionage and being a threat to national security. “The answer to Huawei is not ‘don’t buy Huawei and that’s it.

You need an effective and credible alternative,” he said.

While many in Washington fear that the US is struggling to persuade countries to reject Huawei as they build out their 5G networks, Mr Boehler was more upbeat, saying he detected “changing winds” as governments were “getting smart” on these issues. “More and more you’re seeing people say no”.

He called Chinese investment a “drug” but said more countries were @Businessdayng

becoming sceptical of it in terms of the sustainability of the debt. “I think people are pretty circumspect about it,” Mr Boehler added. “There is a lot of concern where there’s over-leverage toward China in the market right now, a lot.”

The agency’s disbursements remain well below its caps, but it has already started to ramp up spending this year, from $3.3bn in 2018 to $5.3bn this year, its highest level in more than 20 years.

At a time when the Trump administration’s relations with US allies is rocky and the White House has struggled to mount a united front to confront Beijing on trade, Mr Boehler said he would like to do more business alongside similar agencies in Japan, Europe and beyond.

“I would rather write a smaller cheque and do it with JBIC,[ the Japanese development finance agency] or our friends at African Development Bank or others,” he said. With the Japanese in particular, he added that there was a live “conversation about how do we drive our goals in Indo-Pac together because they are shared goals”.

“We should be holding hands on that. That’s a strong message, not just against China but against anybody that wants outsized influence in a sovereign nation and that’s going to push a closed system instead of an open one,” he added.

Mr Boehler was sceptical that the DFC could ever work with the Beijing-backed Asian Investment Infrastructure Bank, unless there was a big change in China’s approach. “To the extent we have concerns about transparency, rule of law and outsized influence, it would be difficult to work together,” he said.

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Ethiopia seizes crown as fastestgrowing country in the 2010s East African nation beats a bevy of Asian states — but is now ripping up its playbook STEVE JOHNSON

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country that is in the process of ripping up its economic model and has been forced to go cap in hand to the IMF might be expected to be one mired in recession.

Yet Ethiopia, which is undergoing a sharp reversal in strategy under Nobel Peace Prize-winning prime minister Abiy Ahmed, has been the world’s fastest-growing economy over the past decade, both in overall and per capita terms.

Since 2009, Ethiopia’s gross domestic product has jumped 146.7 per cent, according to data collated by the IMF, while in per capita purchasing power parity terms it has risen 149 per cent, enough to put it top of both lists as the decade draws to a close*.

The 112m-strong east African state is one of a number of countries to have doubled its output by both of these measures this decade, ranging from heavyweights China and India to relative economic minnows Mongolia, Turkmenistan and Laos.

Nauru, Rwanda and Ghana have also doubled real gross domestic product, while Myanmar, Bangladesh and Cambodia has seen 100 per cent-plus rises in per capita output in purchasing power parity terms, despite the economic gloom that has enveloped much of the past decade.

However, progress has been far from widespread, with conflictriven Libya and Yemen seeing GDP plunge by 71 per cent and 36 per cent respectively, while things have gone so badly in Syria and Venezuela that the IMF has stopped collating data.

Bar chart of 10 fastest growing countries (%) showing real GDP growth since 2009 The average person is also now poorer in Equatorial Guinea, Greece, the Central African Republic, Sudan and Trinidad & Tobago than they were in 2009.

When it comes to the winners, “you could argue that almost all

of these have very strong Chinese links or have adopted the Chinese growth model”, said Charles Robertson, chief economist at Renaissance Capital, an emerging markets-focused investment bank, referring to the likes of Mongolia, Laos, Cambodia, Ethiopia and Rwanda, as well as Vietnam, another strong performer.

Among African states, Ethiopia has arguably been the keenest pupil of the Chinese growth model, embarking on an authoritarian, state-led investment push, focused on infrastructure and manufacturing.

“Ethiopia has been growing really hot on a model that was initially brought in by [former prime minister] Meles Zenawi, who was a committed Marxist,” said François Conradie, head of research at NKC African Economics.

“It was state-led growth, public investment in infrastructure — roads and a lot of electricity. They realised the competitive advantage they had through hydropower [via the Blue Nile, river Omo and others] and using those dams for irrigation to boost agriculture, and building roads and allowing farmers to get their produce to market.”

Mr Robertson said Ethiopia had investment rates above 40 per cent of GDP, “which is Chinese-type levels”.

Bar chart of 10 worst performing countries (%) showing real GDP growth since 2009 Unlike China, however, Ethiopia did not have enough domestic savings to pay for such an investment blitz and was forced to borrow, sending its debt-to-GDP ratio soaring to 60 per cent, as of last year, from 27 per cent at the start of the decade, according to the central bank. This has left it at “high risk” of falling into debt distress, the IMF has said.

“That [growth] model has come up against some hard limits in terms of debt,” said Mr Conradie, who said NKC was “pretty certain” there is additional off-balance sheet debt lurking in state-owned enterprises.

Robert O’Brien stands behind President Donald Trump in the Oval Office of the White House this month © OLIVER CONTRERAS/ POOL/EPA-EFE/Shutterstock

US warns Boris Johnson over Huawei risks to UK citizens’ secrets

Trump’s national security adviser steps up pressure as UK nears decision on China’s Huawei

DEMETRI SEVASTOPULO

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he White House has stepped up warnings to the UK about allowing Huawei into its 5G telecommunications networks, saying that any such move would pose a risk to MI5 and MI6, the British secret intelligence services.

Robert O’Brien, the US national security adviser, told the Financial Times that any UK government decision to allow the Chinese telecoms company to participate in the country’s ultrafast 5G networks risked giving the Chinese Communist party access to the “most intimate” details of British citizens and the ability to steal national secrets.

“They are just going to steal wholesale state secrets, whether they are the UK’s nuclear secrets or secrets from MI6 or MI5,” Mr O’Brien said in an interview. “It is somewhat shocking to us that folks in the UK would look at Huawei as some sort of a commercial decision. 5G is a national security decision.”

Washington has repeatedly urged the UK to completely ban Huawei, but the warning from Mr O’Brien raises that pressure to a new level. It comes as Prime Minister Boris Johnson prepares to decide whether to ban Huawei from the country’s 5G networks.

British security officials last year concluded that any risk from Huawei can be mitigated if it is barred from

the network “core”, but US officials disagree with that assessment. Australia has also urged the UK to exclude Huawei from its 5G networks.

One reason Britain faces such pressure is because it is one of the “Five Eyes” partners — with the US, Canada, Australia and New Zealand — that share critical intelligence.

The US has previously said allowing Huawei in 5G networks could limit intelligence sharing.

In a stark warning about the threat to individuals’ data, Mr O’Brien said China would be able to “micro-target” individuals to “exploit their hopes and their fears” by gaining access to personal details.

US concerns about 5G had been amplified by what he said were growing Chinese efforts to obtain the genetic data of people around the world.

US security agencies have in recent years boosted their focus on Chinese investment in US biotech companies and the hacking of patient data from hospitals and laboratories.

“If you get all the information on a person and then you get their genome, and you marry those two things up, and you have an authoritarian state wielding that information, that is an incredible amount of power,” Mr O’Brien said. “Why the UK would sign up for such a programme is astonishing.”

The pressure on the UK is part of a stepped-up campaign to ensure as

few countries as possible let Huawei into their 5G networks. The White House this week created a new role to co-ordinate 5G policy, which will be filled by Robert Blair, a West Wing official.

President Donald Trump this month lobbied Mr Johnson during a visit to London on the issue of Huawei.

US officials have in the past suggested that a decision not to ban Huawei could impact the US-UK trade deal that Britain wants to conclude after Brexit.

In his interview with the FT, Mr O’Brien also fired a shot across the bow of German Chancellor Angela Merkel as Berlin debates how to handle Huawei. He was speaking after Matt Pottinger, his deputy, returned from talks with top German officials.

Ms Merkel does not want to ban Huawei because of the fear of economic retaliation but she has come under pressure from lawmakers in her party, the Christian Democrats, who have been working on a draft law that would raise significant hurdles to Huawei.

“While the German elites may have been happy to do a deal with China or Huawei, German citizens are starting to revolt . . . You are even seeing that within Chancellor Merkel’s party,” he said. “German citizens just are not ready to sign up for their state to become a vassal of Beijing, and the first step on that path is allowing Chinese 5G into Germany.”

Saudi Arabia sentences 5 to death for Jamal Khashoggi murder Court convicts 8 for killing of journalist in Turkey but clears royal adviser ANDREW ENGLAND

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Saudi court has found eight people guilty of the murder of Jamal Khashoggi but cleared a former adviser to Crown Prince Mohammed bin Salman of involvement in the journalist’s killing.

The court sentenced five people to death for the murder but ruled that Ahmed Assiri, deputy intelligence chief at the time of the killing, should be released because of insufficient evidence. Saud al-Qahtani, another former adviser to Prince Mohammed, was investigated but not charged because of a lack of evidence, said Shalaan al-Shalaan, deputy attorney-general.

Diplomats considered the case as a crucial test for Riyadh after the murder triggered the kingdom’s biggest diplomatic crisis since the September 11 2001 attacks on the US. But human rights activists have repeatedly expressed concerns that the main perpetrators would go unpunished and the decision not to prosecute Mr Assiri and Mr Qahtani has already fuelled criticism that the trial lacked credibility.

ALQST, a UK-based Saudi human rights group, said the court was “neither fair nor independent and has not tried the real defendant”. “Executing those who carried out the operation means killing key witnesses,” the group said on Twitter.

Lynn Maalouf, Amnesty International’s Middle-East research director, said the verdict was a “whitewash which brings neither justice nor the truth for Jamal Khashoggi and his loved ones”.

“The verdict fails to address the Saudi authorities’ involvement in this devastating crime or clarify the location of Jamal Khashoggi’s remains,” she said.

The kingdom’s state prosecutor last year said that its preliminary investigation found that the operation that led to Khashoggi’s murder at the Saudi consulate in Istanbul was ordered by Mr Assiri. It also implicated Mr Qahtani, who was the crown prince’s media specialist and widely regarded as his enforcer,

saying he co-ordinated with Mr Assiri.

Both men were sanctioned last year by the US, along with 15 other Saudis, in relation to the killing. Both men were dismissed from their official positions with the Saudi state but activists have feared that Mr Qahtani has continued to operate in the background.

The CIA reportedly concluded that Prince Mohammed must have authorised the killing as the kingdom’s de facto leader. He has denied any involvement in the murder and Riyadh blamed it on a rogue operation.

Khashoggi was killed after entering the consulate in Istanbul on October 2 last year while his fiancé waited outside. His body was

dismembered and has not been recovered.

The court did not name the eight people found guilty, but five were sentenced to death and three others received sentences of 24 years in prison, said Mr Shalaan, who read out the court’s findings. Eleven people were put on trial for the murder, but under Saudi law none were identified.

The state prosecutor also decided to release Mohammed al-Otaibi, the Saudi consul-general in Istanbul, saying he was off-duty on the day of the murder, Mr Shalaan said.

Washington sanctioned Mr Otaibi this month as it called on Riyadh to conduct a “full, fair and transparent” trial.

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Wednesday 25 December 2019

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Stocks near year’s end on high note while pound drops Easing of trade tensions smooths path for investors ANNA GROSS

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lobal stocks remained close to record highs as trading dwindled in the run-up to the Christmas holidays and investors took profits on gains made earlier in the month.

China announced on Monday it would cut import tariffs on a range of products, including frozen pork, avocados and some kinds of semiconductors. Over the weekend, US president Donald Trump said the US would “very shortly” sign a “phase one” trade agreement with China. The signing is set for January.

Net long positions in the dollar halved last week, hitting their lowest level since mid-June, according to Rabobank’s Commitment of Traders report, as optimism about a phase one trade deal rekindled demand for riskier assets.

Brent crude continued last week’s upward trajectory, adding 0.11 per cent to reach $66.21 a barrel.

The MSCI all-country stock index was up 0.36 per cent on Monday, above Friday’s record high. It has risen almost 3 per cent over the course of December and 23 per cent over 2019.

Japan’s Nikkei was relatively flat on Monday after it reached a 14-month high on Friday. It is up 2.3 per cent since the start of the

month.

Chinese stocks were down by their biggest amount in six weeks, after the government announced it would cut its investments in some chipmakers. The pan-European Stoxx 600 index remained flat, after ending last week up 1.6 per cent.

The only big report expected this week is the US data on personal consumption expenditure for November, due to be released on Friday.

The FTSE 100 rose 0.52 per cent in Monday trading, notching up a nine-day rally and adding to a fivemonth high. The domestic-heavy FTSE 250 added 0.93 per cent, to total three straight sessions of gains.

In part, that reflects the latest tumble in the pound, following one of its worst weeks of the year last week. It dropped as much as 0.7 per cent against the dollar to a low of $1.2916. It also tumbled 0.6 per cent against the euro to €1.166.

The pullback, though likely exaggerated by threadbare preholiday trading conditions, illustrated that an ugly exit for the UK from the EU remained a pressing concern for UK markets.

“PM [Boris] Johnson is still using the threat of a no-deal Brexit as a negotiating tactic in the forthcoming trade talks with the EU,” wrote analysts at Rabobank. “This is likely to ensure that Brexit remains a driving factor for the pound.”

Hg to regain control of software company Personal & Informatik Deal highlights ‘pass the parcel’ activity in private equity sector KAYE WIGGINS

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rivate equity group Hg has agreed to buy a majority stake in Personal & Informatik, in an acquisition that values the German software business at €2bn and is the latest in a series of so-called “pass the parcel” deals between buyout groups.

London-based Hg originally bought P&I — which provides payroll software to Germany’s Mittelstand of small and medium-sided companies as well as hospitals and local municipalities — from private equity group Carlyle in a 2013 deal that valued the business at €438m.

It sold a majority stake to Permira in 2016 at a valuation of between €800m and €900m, according to two people familiar with the matter, keeping a minority holding.

Several private equity groups have this year bought back companies they previously owned, arguing that their existing knowledge of the business gives them a good chance of growing it further. Many have raised record funds that they need to invest.

Hellman & Friedman last week agreed to buy AutoScout24, the car classifieds unit of Scout24, which the US buyout group and Blackstone listed in 2015. In June, Blackstone

was part of a consortium which agreed to buy leisure group Merlin Entertainments, which it had previously owned.

P&I, which operates in Germany, Austria and Switzerland, had 430 employees and reported €62.4m in earnings before interest, tax, depreciation and amortisation in the year to March, the most recent period for which public figures are available.

The company is shifting its software to a cloud-based model which Hg believes justifies a higher price tag, in part because groups that have made the transition tend to use a rollover subscription-based payments model which carries less risk of clients defecting to competitors.

“The thing that’s important to me is that we support P&I on this journey [to cloud computing],” said Michael Biehl, a director at Hg who worked on the deal. “At the same time we’re exploring expansion in continental Europe.”

In a few years’ time, P&I could be listed, or sold to a listed company or another private equity group, he added.

Permira will keep a minority stake in P&I. Hg is buying the business using a £1.5bn fund it raised last year, which specialises in larger deals for software companies valued at more than £1bn. www.businessday.ng

Most banks are first and foremost in the business of lending, and only second in the business of helping people manage their money © Bloomberg

Japan’s quest for cashless payments

The country’s reputation as a fintech innovator is at stake LEO LEWIS

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n a survey conducted in mid2019, the Bank of Japan asked why so many Japanese still preferred using cash for dayto-day transactions. By far the top answer — despite a protracted government campaign of cashless evangelism — was “because a cash transaction is completed on the spot”. Another favourite response was that “cash is quick”.

In an earlier Nomura survey of why businesses were reluctant to introduce cashless payment terminals, the top answer was high fees.

Some 3 per cent said they had never even heard of cashless payments.

Decades of consumer habit and resistance from retailers, say banking and fintech analysts, are proving hard to dislodge from a society that is used to paying in cash, enjoys the anonymity that comes with it and generally feels safe enough carrying around large sums.

The big question looming over Japan’s retail and financial sectors as they enter 2020 is whether the long-hoped-for behavioural shift will happen before the variety of incentive schemes that are in place run their course by the end of June.

Even as Tokyo prepares to cast next year’s Olympics as a showcase of Japanese technological prowess,

the signals from both public and private sectors on the great cashless conversion are mixed.

The Japanese government’s ambition is at least clear. As things stood in 2018, roughly 20 per cent of consumer payments were made cashlessly. That put Japan a little ahead of Germany (15 per cent) but miles behind South Korea (90 per cent) and China (60 per cent).

To address criticism that it was falling behind, Japan said in 2018 that it would aim to bring its cashless payment ratio up to 40 per cent (the global average) by the time the city of Osaka hosts the World Expo in 2025.

The country’s reputation as a fintech innovator — it was the first country to introduce e-money contactless cards for public transport in 2000 and the first to launch mobile phone-based payments in 2004 — is at stake.

That sense of pressure has become even more acute as Japan’s banks, their prospects visibly suffering after almost four years under the BoJ’s negative interest rate policy, have pinned much of their optimism for the future on a series of fintech bets that have yet to pay off. In its outlook for 2020, the credit rating agency Moody’s declared a negative outlook for Japan’s banks.

The main bright spot for the three megabanks — Mitsubishi UFJ,

Sumitomo Mitsui and Mizuho — was that each has committed investment to cashless systems for consumers and retailers.

But even with those investments in place, the government decided in 2018 that it had to accelerate the nation’s conversion to cashless. To do so, it focused on a long-expected hike in consumption tax on October 1 that economists fully expected to hurt consumer spending. Customers who transacted cashlessly in small- and medium-sized companies, however, would be able to receive reward points to offset the tax increase.

The response by the SMEs, revealed the Ministry of Economy, Trade and Industry on Monday has been unexpectedly strong. Since May, when the scheme was first mooted, 940,000 shops, restaurants and other consumer-facing businesses have registered for the scheme — a process that forced many of them to bring cashless payment terminals into their stores for the first time.

There have been early signals that the scheme is working. Convenience store chains Lawson and FamilyMart said shortly after the tax increase that cashless payments had jumped 50 per cent year-on-year.

Cashless payment systems such as Line Pay and PayPay also said they saw sharp increases in sign-ups.

Pound drops as post-election glow evaporates

UK currency extends losses amid fears of a hard and chaotic Brexit ANNA GROSS

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he pound tumbled on Monday, notching up a five-day run of losses that more than erases its post-election rally as investors face growing anxiety around the possibility of a hard and chaotic Brexit in the coming months.

The currency suffered one of its worst weeks of the year last week, and the selling has continued, with sterling dropping by as much as 0.7 per cent against the dollar to a low of $1.2916. It also tumbled 0.6 per cent against the euro, to €1.166.

In the immediate run-up to Christmas holidays, trading tends to be sparse, and small trades have the ability to generate exaggerated

https://www.facebook.com/businessdayng

market moves. Still, the pullback illustrates that an ugly exit for the UK from the EU remains a pressing concern for UK markets.

“PM Johnson is still using the threat of a no-deal Brexit as a negotiating tactic in the forthcoming trade talks with the EU,” wrote analysts at Rabobank. “This is likely to ensure that Brexit remains a driving factor for the pound.”

The pound surged after Boris Johnson’s election victory on December 12, but has since reversed all of those gains as the prime minister signalled a hardline stance in Brexit negotiations with the EU. He pledged last week to outlaw any extension to the UK’s post-Brexit transition period at the @Businessdayng

end of 2020.

Dean Turner, UK economist at UBS Global Wealth Management, said investors should be prepared for “wide trading ranges” in sterling, between $1.30 and $1.40, as further negotiations take shape.

“It’s possible that there will be some bounce in activity given the clarity on Brexit, but any improvement in sentiment is likely to fade as the next Brexit deadline draws closer,” he said.

Ruth Gregory, senior UK economist at Capital Economics, said: “We doubt sterling will rise again substantially as long as there remains the possibility of something like a ‘no deal’ at the end of next year.”

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Wednesday 25 December 2019

BUSINESS DAY

FT

ANALYSIS

Bond market wobble shrinks global pile of negative yields Late-December outbreak of optimism on global trade talks helps cool government bonds TOMMY STUBBINGTON

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n end of year sell-off in global bond markets has helped shrink the pile of negativeyielding debt by $6tn since the summer peak, in a sign that recession fears are abating.

Tentative signs of an emerging US-China trade deal last week fed a drop in bond prices that pushed Japan’s 10-year yield above zero for the first time since March, while 10-year US yields climbed to a fiveweek high of 1.92 per cent. Yields in the eurozone also rose sharply.

The market moves pushed the total amount of negative yielding debt from a peak of $17tn in the summer to just above $11tn — the lowest since June.

An outburst of guarded optimism on trade talks has dulled the appeal of government debt that investors treat as a safe retreat in times of stress.

The drop in prices has surprised some fund managers who had been betting on ever-lower yields. But analysts are reluctant to see it as a sign that the bizarre phenomenon of bonds guaranteeing a nominal loss for investors is coming to an end.

“Three factors have come together to push yields higher despite reaffirmation from central banks of the ultra-low for longer rate regime: less bad global growth indicators, de-escalation of trade tensions and a technically offside market with too many looking for a further cascading compression of yields,” said Mohamed El-Erian, chief economic adviser at Allianz.

During the summer, a wave of nerves over the global economy

generated a huge bond rally that pushed the value of debt around the world trading with sub-zero yields to a record level. The tally has receded as investors scale back their bets that a recession is on the way.

Some investors expect bonds to resume their rally next year, particularly as US-China trade talks are prone to hiccups, but they are reluctant to buy during a period of relatively light trading volumes during the Christmas period, which could exaggerate market swings.

“It doesn’t make sense to get in the way of this move,” said Mohammed Kazmi, a London-based portfolio manager at Swiss private bank Union Bancaire Privée. “Market participants are probably going to wait until next year to reallocate to bonds. We don’t think anything has changed. Big central banks are on hold and if anything there’s a more of a risk of them cutting again.”

Some investors have grown increasingly uncomfortable about holding debt with negative yields, particularly given the growing backlash against the use of subzero interest rates by central bankers. Sweden’s Riksbank last week ditched negative rates as it lifted it benchmark rate to zero even despite signs of a weakening economy.

“Although the move was in line with expectations, this sets a potential precedent for other central banks to similarly move away from negative rates,” said Deutsche Bank analyst Jim Reid.

A brighter outlook for the global economy resulting from a trade truce could further dim the appeal of holding negative-yielding debt, which guarantees a nominal loss if it is held to maturity.

Xi turns peacemaker amid dispute between Tokyo and Seoul

Tensions between South Korea and Japan are complicating free-trade talks with Beijing TOM MITCHELL, ROBIN HARDING AND SONG JUNG-A

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resident Xi Jinping played the unlikely role of potential peacemaker between two feuding US allies on Monday as he met the leaders of Japan and South Korea separately in Beijing.

Japanese prime minister Shinzo Abe and Moon Jae-in, South Korea’s president, will travel to Chengdu, in south-west China, for a bilateral session of their own on Tuesday as well as trilateral talks with Li Keqiang, the Chinese premier.

The flurry of diplomatic activity has given Beijing a rare opportunity to help to smooth a festering political and economic dispute between Tokyo and Seoul, which has complicated long-running discussions to forge a free trade area between east Asia’s three largest economies.

Mr Xi’s administration also hopes that a free trade agreement with Japan and South Korea will help to offset its own trade frictions with the US as well as drawing Washington’s two closest allies more closely into its economic orbit.

Japan and South Korea have been at loggerheads for more than a year in a dispute over compensation for historic forced labour. In the summer, Japan imposed export controls on chemicals vital to South Korea’s semiconductor industry; Seoul retaliated by threatening to scrap an intelligence-sharing treaty.

“Trade friction between Japan and South Korea harms China as well,” said Chu Shulong, an international relations professor at Tsinghua University in Beijing.

“The three countries are in the same industrial chain, with Japan at the top and South Korea in the middle. China relies heavily on the semiconductor chips processed by South Korea.”

The Chinese government announced on Monday that it would cut import tariffs on more than 800 products, including semiconductors, in the new year as it attempts to boost economic growth.

While Mr Abe and Mr Moon have taken steps to calm the dispute, their only recent encounter was an 11-minute conversation at a meeting of the Association of Southeast Asian Nations in November. The bilateral meeting in Chengdu is regarded as an opportunity to build trust.

“Japan-Korea relations are in a bad way, but when you consider the security environment in east Asia, co-operation between . . . Japan and South Korea is essential,” said Mr Abe before he boarded a plane to Beijing.

He reiterated Japan’s uncompromising line that all wartime claims were settled in a 1965 treaty.

“Promises between countries must be kept. The treaty on claims is the foundation for relations between Japan and South Korea.” www.businessday.ng

The big market moments of 2019 The year was dominated by central bankers, politicians and companies with grand OLIVER RALPH

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he past year will be remembered as a moment of reckoning for central banks. The relentless wave of cheap money provided by policymakers set the bond market racing higher, spreading negative yields throughout the financial system and prompting many rate-setters, bankers and investors to wonder whether they could really control the monster they had created.

The Federal Reserve’s policy Uturn that set it on course for rate cuts put investors in a spin. Ructions in the repo market caused plenty of angst.

And President Trump shook currency markets with a series of off-the-cuff remarks.

Here, FT reporters around the world look back on the big moments and personalities that defined 2019 in markets. Enjoy.

January 2 The yen starts the year with a bang As traders were recovering from the holiday season, just before 11pm London time on January 2, the Japanese currency suddenly, and without any obvious reason, leapt by 3 per cent against the dollar in a matter of seconds. Other currencies convulsed, with the Australian dollar briefly hitting a 10-year low.

Central banks and regulators later struggled to explain what caused the swings, before settling on very thin trading in the so-called “witching hour” that happens every day between 5pm and 6pm New York time.

Still, as exciting as the start of the year proved to be, currencies spent much of the year in a slumber, with volatility collapsing to record lows. Eva Szalay Line chart of Yen per US dollar showing Japanese yen rips higher in flash rally January 30 The Federal Reverse The US central bank closed out 2018 by raising US interest rates for the fourth time in 12 months and warning that additional increases were on the way.

Six weeks later, not only did the Fed put further rate rises on hold, but it signalled it would instead consider easing policy, leaving investors reeling. In July, it initiated the first of three cuts.

The January U-turn reflected a big shift in the central bank’s views about the health of the US economy and its ability to shield itself from risks.

Now the Fed is waiting for a “material” change in economic conditions before pulling the lever of monetary policy once more. Colby Smith

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April 9 Saudi Aramco’s (first) record fundraising State-owned energy company Saudi Aramco set records in 2019, drumming up a whopping $100bn of demand for its debut $12bn international bond sale — before going on to land the world’s biggest IPO in December.

The demand for the bonds was the strongest ever seen in an emerging market and marked a watershed for the world’s largest oil company as it opened its books for the first time.

It also highlighted the peculiarity of the way bonds are sold, given that the initial frenzy of orders failed to lead to much demand when the bonds began to change hands, and sank as low as 95 cents on the dollar.

In big transactions like this, it has become routine for investors to overstate how much of the bond deal they want to buy. Joe Rennison June 3 Neil Woodford meets his match Neil Woodford’s eponymous investment firm sent shockwaves through London in 2019, announcing that it had blocked redemptions from the star stock picker’s flagship £3.7bn fund.

The root of the problem was that while the fund offered investors the ability to withdraw their money daily, it was heavily invested in assets that could not be sold easily. This type of liquidity mismatch earlier sparked a crisis at Swiss asset manager GAM in 2018, but the unravelling of Mr Woodford put the issue front and centre.

Liquidity became a watch word for the year. When the FT revealed that H2O Asset Management had large holdings of illiquid bonds linked to a racy German financier, it suffered €8bn of investor withdrawals. Funds are now thinking harder about how to handle potential rushes to the exits.

Robert Smith June 18 Shots fired in the currency war The middle of 2019 brought evidence that Donald Trump was paying attention to the European Central Bank’s pronouncements. “Very unfair to the United States!” he tweeted after the ECB signalled plans for a fresh round of stimulus.

Mr Trump made it clear he thought this represented an effort to weaken the euro, “making it easier for [the eurozone] to compete against the USA”.

Market participants started taking the possibility of a global currency war seriously and contemplating how it might work. Since then, the US president has also lashed out at Brazil and @Businessdayng

Argentina, levying tariffs on their metals exports in retaliation for what he labels their currency “devaluations”.

Katie Martin A graphic with no description August 5 Renminbi ‘cracks seven’ The People’s Bank of China allowed the renminbi to fall past Rmb7 per US dollar for the first time since the depths of the 2008 financial crisis, raising echoes of the fallout from the currency’s shock devaluation of 2015.

But “cracking seven” did not lead to a repeat of the drama three years ago, which prompted major capital outflows and drew the ire of critics in Washington who accused Beijing of currency manipulation.

This time, the breach drew the ire of President Trump. But the controlled fall, aided by capital controls introduced since 2015, suggested that Beijing had another tool at hand to cushion the blow from US tariffs.

Hudson Lockett A graphic with no description August The hot summer that put bond yields in the deep freeze Red-hot demand for bonds turned the laws of finance upside down in 2019. At the peak in late August, $17tn of debt was trading with a negative yield, meaning investors buying bonds and holding them to maturity were guaranteed to make a loss.

Traditional havens such as Japan and Germany dominated, but the phenomenon spread into surprising areas like short-term Greek debt and a handful of emerging market bonds, as yield-starved fund managers reached further afield in search of something offering a positive return.

A backlash came in the autumn as investors began to question whether the economic backdrop was really gloomy enough to justify locking in losses. At the same time, concerns about the nasty side-effects of negative yields for pension savers and the banking sector clouded the prospects for even more rate cuts. Tommy Stubbington August 11 A shock for Argentina’s bondholders Wall Street-darling incumbent Mauricio Macri lost to leftist candidate Alberto Fernández in the country’s primary presidential elections, paving a path for Mr Fernández’s victory two months later. Argentina’s assets faced a drubbing.

Some of the country’s dollar bonds suffered a 40 per cent drop in value, while the peso plummeted 20 per cent.

Wednesday 25 December 2019

BUSINESS DAY

51

POLITICS & POLICY We will partner Army to ensure peace in Oyo - Makinde REMI FEYISIPO, Ibadan

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overnor Seyi Makinde has said that Oyo state government would partner the Nigerian Army to ensure the security of lives and property in the state.

He stated that his administration was ready to collaborate with Nigerian Army formation in the state to fix a lot of hydraulic structures.

The governor also said that the state would maintain a cordial relationship with the Nigeria Army in peacekeeping to ensure peace in all the nooks and crannies of the state.

Governor Makinde, who was speaking at the Nigerian Army West African Social Activities (WASA) held at the Major General John Inienger Sports Complex, Adekunle Fajuyi Cantonment, Ojoo, Ibadan said: “I assure you that the government will continue to support and cooperate with the Army in Oyo State in order to reap the true the dividend of peace and security. I have and will continue to consider the Army Barracks and Cantonment in Oyo State as part

of our constituency.

“I want to assure officers, soldiers, and families of 2nd Division of the Army in Ibadan that our administration remains committed to promoting the already existing cordial relationship with the military. We want to take this to the next level for the betterment of the good people of Oyo State.”

The governor further said: “As I was passing through the formation, I saw the Mechanical Engineers and I thought we have a lot of hydraulic structures in Oyo State that we also need to fix. So, I am using this opportunity to invite the Nigerian Army formation here to collaborate with us so that we can jointly work together to fix those hydraulic units.”

He noted that the impact and the achievements of Nigerian Army in the Country have added greater values, respect honour and dignity to the perception of Nigerians about the Military profession.

He stated: “Let me also say in clear terms that the impact of the achievement of the Nigerian Army during this period has added greater values, respect, honour and dignity to our perception as

Seyi Makinde

a people about the Nigerian Army. This is indeed a very noble profession.

“The Nigeria Army today is seen to have played more roles in civil authority than at any other time in the history of our dear nation. This includes the curtailment of insurgency in the North-East by ensuring that the situation did not spread across the country.

“Similarly, the effective curtailment of nefarious activ-

Defecting members are failed, irrelevant politicians - Lagos PDP Iniobong Iwok

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he Lagos State chapter of the People’s Democratic Party (PDP) has described some members of the party who recently defected to the ruling All Progressives Congress (APC) as failed politicians, who were no longer irrelevant in the party.

Last week, some chieftains of the party and their supporters formerly joined the APC and were received by leaders of the party, while they were handed the APC flag at the party’s secretariat in Ogba.

The defecting chieftains are former Minister of Works and Housing, Adeseye Ogunlewe, and his son, Moyo, a former PDP leader in Ikeja constituency; Mutiu Okunola, Raman Falawe (Lagos Island), Jebe Dayo (Mushin), Adeoye Shamolu (Ojo), Jaiye Agoro (Lagos Mainland), Sukanmi

Fabiyi (Apapa) and Arisekola Afeez (Accord Party, Mushin), among others.

The defecting chieftains had said they defected to the APC with their supporters to change the narratives.

However, speaking in an interview with BusinessDAY Monday, Publicity Secretary of the PDP in the state, Taoffick Gani, said the party was not bothered about the defection of the chieftains and their supporters because they had only gone back to where they came from.

Gani said the members did not understand essence of party politics and were only fighting for their selfish interest.

According to him, “All the people who defected to the APC don’t know why they belong to a political party in the first place. They are irrelevant and six of the people who joined the APC were originally in AD before they

joined us; the last one was lucky to get our party ticket and contested election in the last general election.

“They joined the APC because of what they would eat; we would bounce back to win elections in the state,” Gani said.

Speaking further, he said the popularity of the APC in Lagos State was waning because of the poor performance of the incumbent administration, stressing that the party would lose the 2023 general election in the state.

Gani said that PDP in the state had put behind past election failures and was repositioning towards success in the 2023 general election.

“The APC is a drowning party, which is becoming unpopular in Lagos State.

Anybody who knows what is happening knows that very soon they would not be able to win elections in Lagos State.

ities of the rampaging herdsmen and sustained operation against kidnappers, thuggery and other perpetrators of sundry criminal activities as well as saboteurs to critical national infrastructure. I am glad that the Army has recorded these achievements without prejudice, with respect for the rule of law and subordination to the civil authority.

“The Army is noted for its adherence to international

best practices of human rights, cordial military cooperation, and respect of the tradition of their host communities.

All these positive impacts are highly noted and appreciated.

I urge you to maintain and sustain the tempo.”

He commended officers and men of 2nd Division for their sacrificial contributions in the maintenance of peace and order in Oyo State.

He said: “I have personally noted the achievements of Operation Burst in Oyo State where the Army played the lead role. So, I want to use this occasion of WASA 2019 to commend the gallant officers and soldiers of 2Division Ibadan in particular and the entire Nigerian Army at large.

We are indeed very grateful to you.

“My presence on this occasion to identify with the Nigerian Army personnel and family members is no doubt as a result of my appreciation of the good work that the Nigerian Army is doing in general, and in Oyo State in particular.

“I wish to also mention in stronger terms that the hitherto fragile links that bind the Nigerian Army and the

rest of the citizens is further strengthened. It is common knowledge within the public domain that the giant strides that highlighted the achievements of the 2Division will remain a benchmark for other formations to strive harder so as to achieve similar feats.

“Army is noted for its adherence to international best practices of human rights, cordial military cooperation and respect of the tradition of their host communities. All these positive impacts are highly noted and appreciated.”

The Governor, therefore, promised to extend the lightup Ibadan projects into the barrack community for the benefits of Military Officials.

“We will extend, under Phase 2 of the light-up Ibadan project, the light infrastructure to inside the barracks,” he stated.

Earlier in his remarks, the General Officer Commanding (GOC) 2 Division Nigerian Army, Major General Anthony Bamidele Omozoje appreciated the contributions and support of the Governor of Oyo State Engr Seyi Makinde and the good people of Oyo State.

CAN urges Oshiomhole to reciprocate Obaseki’s support for his eight years’ administration IDRIS UMAR MOMOH, Benin

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he leadership of Christian Association of Nigeria (CAN), Edo State chapter on Monday urged the National Chairman of the All Progressives Congress (APC), Adams Oshiomhole to reciprocate the kind support the state Governor, Godwin Obaseki gave him during his eight years government in the state.

Recall that Adams Oshiomhole was the governor of Edo State between November 12, 2008 and November 12, 2016.

The CAN leadership made the appeal at a press conference in Benin City.

The state chairman of the association, Oyonude Kure, who addressed the press conference noted that Governor Obaseki supported Oshiomhole during his eight years as

governor of the State.

“We appeal to you your excellency Comrade Adams Oshiomhole to let this matter amicably come to an end in the interest of peace of the state.

“Your love for the Edo people and the brotherly love that will forever remain unbridled between you and your brother, governor Godwin Obaseki after the game of politics is over.

“We therefore enjoin Comrade Adams Oshiomhole to support the seating governor as he also supported his administration for eight years by putting his party machinery together to the best of his ability within the limit of the law to bring the house (APC, Edo State) together for its unity in the interest of the peace of the state and in the interest of his party.

“To ensure continuity of the administration of Godwin Obaseki in the art of govern-

ance of Edo state as he the Comrade Governor had in his tenure for the purpose of the development, advancement of the state, more particularly for the uncommon impact that the Godwin Obaseki’s administration has made in the state developmentally and in every ramification within the very short time of his administration, which the Edo people are very well pleased with and reposed their confidence in him for a second term in office”, he said.

Kure, who said Governor Obaseki was the candidate of Adams Oshiomhole during the governorship primary and in the election in 2016, however urged the national chairman of the party not to allow few individuals soil the good name and legacy he has enshrined on the chronicles of achievers and builders of Edo land.

Suspended Kwara LG vice chairs, councillors cry to court over salary stoppage SIKIRAT SHEHU, Ilorin

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ice Chairmen and Councillors of the16 local government areas of Kwara State, recently suspended by the state governor, Abdulrahman Abdulrazaq, have approached the court of law to seek redress over

the stoppage of their salaries.

Addressing a joint press briefing in Ilorin on Monday, Yusuf Saliu Mohammed, the Chairman forum of vice chairmen and councillors, explained they decided to seek redress in court following the extension of the suspension order slammed on the councils by the governor. www.businessday.ng

Mohammed, argued that the recommendation made by the state House of Assembly demanding the suspension of 16 council chairmen was only for the suspended chairmen and was not suppose to affect them in the first instance.

“Although we were not happy with the illegal suspension, we choose to sacrifice six

months from our tenure in the interest of peace in the state of Harmony. We are (and still are) certain that we ( vice chairmen and councillors ) did not commit any offence that could warrant suspension or other disciplinary action.

“We therefore, decided to remain calm, confidently expecting our return to office af-

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ter the expiration of six months.

“As the six month of our suspension was coming to an end, we gathered from the grapevine that the governor did not want us to return to our offices until the expiration of tenure in November 2020. And that he was likely to extend our suspension if he did not rightly dissolve the councils. @Businessdayng

“This disclosure forced us to seek another way out as against our resolved to remain calm; hence our decision to go to court. We are now in court believing that the judiciary, which is the last hope of the common man, will wipe our tears for us The hearing will start on 17th January 2020,” said Mohammad.

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Wednesday 25 December 2019

BUSINESS DAY

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Wednesday 25 December 2019

BUSINESS DAY

PRIVATEEQUITY &FUNDRAISING

53

DOB Equity invests in Tanzanian-based vanilla producing firm MICHAEL ANI

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OB Equity, a leading Dutch family-backed i m p a c t investor in East Africa, has invested in Natural Extracts Industries Ltd, the leading integrated natural vanilla flavour manufacturer, based in Moshi, Tanzania (“NEI”).

Since its inception in 2011, NEI has partnered with small-holder farmers by encouraging them to grow vanilla next to their existing crops, thereby providing extra income.

NEI provides training in good agricultural practices for over 5,000 farmers across five regions in Tanzania in vanilla husbandr y (following organic principles) and traceability. As a result, farmers have earned up to 50 percent additional income from vanilla farming.

NEI sources green vanilla pods from these far mers and skilfully manufactures them into

unique premium quality vanilla products. The pods are mainly sold to speciality food companies and flavour houses in the global market.

This has been instrumental in putting Tanzania on the global vanilla

map as seen in November 2019, when the Biennial Vanilla Symposium was held in NEI’s home town, Moshi, Tanzania.

Th e i nve st m e nt by DOB Equity will facilitate the growth of NEI’s smallholder farmer network. It

will also help diversify the company’s sourcing capacity, as well as expanding processing capability. The investment will also aim to increase the overall participation of Tanzania and the broader East African region in the

$72m raised to fund women-led businesses in Nigeria, four others DAVID IBEMERE

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okunboh Ishmael, Nigerian businesswoman has raised $72 million to invest in female led businesses in Africa.

Tokunboh with South Afr ican Polo L etekaRadebe created Alitheia IDF - the first female led Private Equity fund - to change the nar rative around the empowerment of women in the investment space on the continent.

Speaking on the plans,

Tokunboh Ishmael said: “2020 is the year. Women control over $20 trillion in worldwide spending, Alitheia IDF’s fund will facilitate our collective abilities to better meet women’s needs, wants, tastes and preferences to boost Africa’s GDP. We are proactively seeking to finance and support women-led business.”

Anchor investor for the fund is the African Development Bank, the President Akinwumi Adesina has taken a personal interest in the fund, he said: “We are very proud of

Alitheia, they are the only private equity fund we have in Africa investing in women. Closing this fund is a better day for women of Africa, women run Africa and when they get Capital they’ll do much better than you see today.”

The fund signals the b e g i n n i ng o f a m ove that wants to see women equal men in the investment space. Management consultancy guru’s Mckinsey estimates there is the potential to add $28 trillion (or 26 percent) to global annual GDP by

the end of 2025 if parity is achieved with women participating in the economy identically to men.

The fund supported by, Industrial Development Cooperation, Bank of Industry Nigeria, FinDev Canada, and Dutch Good Growth Fund plans to leverage the power of women as producers and consumers in the economy from boardroom to factory floor.

The outcome will lead to diverse perspectives that enhance decision making and corporate governance to boost innovation and business performance.

premium quality natural flavour space.

Brigit van Dijk – van de Reijt, CEO of DOB Equity, says: “NEI is one of the most advanced regional processors and extractors of locally grown high-end crops such as vanilla.

Through its diversified sourcing platform, it can create substantial socio-economic impact for thousands of farmers in Tanzania and positively contribute to influence environmental sustainability.”

Nigeria’s IHS Towers buys Brazilian telecoms infrastructure company CCS for undisclosed amount MICHAEL ANI

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igerian telecoms group IHS Towers said on Monday it has agreed to buy Brazilian telecoms infrastructure company Cell Site Solutions (CSS) from Goldman Sachs and Centaurus Capital LP for an undisclosed amount, to expand in Latin America.

The acquisition is part of IHS’s strategy to become a leading owner, operator and developer of shared telecommunications infrastructure in

emerging markets.

“Brazil’s topography and compact urban areas, coupled with the recent economic upturn, provide favorable macroeconomic factors for 4G and 5G deployment,” Reuters quoted Sam Darwish, IHS’s chairman and chief executive.

The transaction, is subject to regulatory approval, IHS added.

According to the company, CSS has approximately 2,290 towers and other telecoms infrastructure sites across Brazil, Peru and Colombia.

BusinessDay PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: SAMUEL IDUH ) Businessday’s Private Equity and Fundraising section is a weekly publication that provides in-depth analysis on private equity trends and tracks deal activity in Nigeria.

Email the PE & F team loladeakinmurele@gmail.com

Continues on page 34

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BUSINESS DAY Wednesday 25 December 2019 www.businessday.ng

Fifty people who shaped the decade The game-changing politicians, influential businesspeople, record-breaking sports stars and brave activists who make up the FT’s list FT reporters

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he second decade of the 21st century began with austerity measures to deal with the downturn caused by the global financial crisis and ended with populist governments and illiberal regimes throughout the world. The FT’s 50 People of the Decade reflects these developments, with game-changing politicians and influential executives from banking and industry. The explosion in and dominance of computers and smartphones in every aspect of our lives is evident in the number of technology figures. And in a decade where individuals showed themselves to be capable of wrenching power from long-established institutions, those who have made advancements in science, broke new sporting records, protested bravely against persecution and called out institutional harassment could not be overlooked.

A panel of FT reporters finalised the list of individuals across politics, economics, business and technology and culture, media, science and sport. The list and profiles of a selection of them appear below: Nigel Farage has never won so much as a seat in the British parliament. Yet over the past decade, he has reshaped the country’s politics.

As leader of the UK Independence party, pressure from Mr Farage was a central part in David Cameron’s decision to hold a 2016 referendum on leaving the EU. He then played a buccaneering — if controversial — role in the winning campaign. As support for a second referendum grew, Mr Farage this year established the Brexit party and used its success in European elections to prevent the Conservatives from wavering.

Although Boris Johnson triumphed in the general election, a large part of his Brexit approach has been dictated by Mr Farage. Geoff Dyer.

Few people have changed the face of US politics over the past decade more than Charles and David Koch, the billionaire owners of a Kansas-based private industrial empire who used their wealth to launch a hard-right revolution that laid the groundwork for Donald Trump’s election in 2016. By financing dozens of anti-government causes and candidates, they helped lead a metamorphosis of the Republican party from a “big tent” coalition that once included pro-business moderates and multilateral internationalists into a more ideologically unified force that has shifted the American political debate further to the right than even Ronald Reagan was able to achieve in the 1980s. Peter Spiegel From his position as a judge in a provincial Brazilian city, Sérgio Moro spearheaded a corruption investigation that rocked Latin America’s political establishment. The probe into bribes paid by construction group Odebrecht led to the imprisonment of former Brazilian president Luiz Inácio Lula da Silva and implicated four former or current presidents of Peru — one shot himself before police could arrest him. Last year Mr Moro became justice minister in the government of far-right president Jair

Bolsonaro — a move into politics that has cast doubt on his independence as a judge, but which could set him up for a run at the presidency. Geoff Dyer It might come as a surprise that Mohammed bin Salman was only named as Saudi Arabia’s crown prince in 2017. Since then he has announced a blizzard of social and economic reforms, including the $25bn December listing of oil company Saudi Aramco. But MBS, as he is known, has also escalated the war in Yemen, placed senior members of the Saudi royal family under arrest as part of an anti-corruption drive, and faced a storm of international criticism over the brutal murder of journalist Jamal Khashoggi in the country’s consulate in Istanbul. Geoff Dyer No politician has travelled such a dramatic arc as Myanmar’s de facto leader. Released from house arrest in 2010 after 15 years, Aung San Suu Kyi travelled to Oslo in 2012 to accept the Nobel Peace Prize she had been awarded in 1991. Although barred from the presidency, her party’s triumph in 2015 general elections seemed to cement her legacy as a liberal hero who engineered the decade’s most decisive transition from dictatorship to democracy. Yet in early December, she spoke in front of the International Court of Justice in The Hague to defend Myanmar against claims of genocide conducted against Rohingya Muslims — alleged crimes committed by the same military she once opposed. Geoff Dyer Malala Yousafzai is to girls’ education what Greta Thunberg is to climate change. Born into a Pashtun family in the Swat valley, she began speaking out on the issue when she was 10. After Taliban militants occupied the valley, she started an anonymous blog defending the right of girls to attend school. In 2012, she was shot in the head at close range but was later transferred for treatment to the UK, where she has since lived.

In an interview with the FT in the following year, she criticised those who “think Islam means women sitting at home in purdah or wearing burkas while men do jihad”. David Pilling BlackRock’s founder was already one of Wall Street’s most influential operators when the global financial crisis struck, but it was the deal he struck in 2009 to acquire Barclays’ asset management unit that catapulted

him into the ranks of the world’s most powerful people. The exchange traded fund unitwas particularly important, giving BlackRock access to the cheap, passive index-tracking investment vehicles that have exploded in popularity over the past decade. BlackRock is the industry’s biggest player, helping boost its assets under management to almost $7tn. Robin Wigglesworth Silicon Valley is no stranger to big promises, but Elizabeth Holmes captivated the tech world with her promise to revolutionise blood testing. Needles and venous draws would be consigned to history, replaced by her proprietary finger-prick “nanotainer”, which could purportedly test for all manner of illnesses with a tiny speck of blood. Better still, her technology was so painless and simple that people would be tested in their local drugstore or supermarket, potentially helping them catch serious illnesses such as cancer. A string of hagiographic profiles in the US media followed, along with hundreds of millions of dollars of investments into her company, Theranos, bestowing it, at one point, with a $9bn valuation.

But the technology did not work, and Ms Holmes allegedly duped her investors. She now faces a criminal trial, having been charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud, which she denies. David Crow Whether you prefer to style her the youngest self-made billionaire on earth or Gen Z’s first billionaire, the 22-year-old founder of Kylie Cosmetics sold a majority stake in her firm to Coty Inc for $600m in November, just in case anyone thought selling lipstick to teens on Instagram was a sideline.

A tender nine years old when her family’s reality show Keeping Up With The Kardashians began, she was 16 when she used the money from modelling to invest in a cosmetics line, going on to launch a small range of lipsticks and lipliners in 2015. Her only stumble has come from a three-year battle to trademark the name Kylie in the US, blocked by objections from a Ms Minogue. The dispute has now been resolved and both Kylies sell cosmetics. Janine Gibson Travis Kalanick’s frustration one snowy December night in Paris that he couldn’t simply “push a button and get a ride” from his phone in-

spired the creation of ride-hailing service Uber. What began as a high-end limousine service in San Francisco is now a regular habit for more than 100m people worldwide. Burning through more than $15bn of venture capital, Mr Kalanick’s pugnacious approach set a new template for “gig economy” ventures in the past decade: asset-light yet also capitalintensive, exploiting legal loopholes to drive rapid growth. However, Mr Kalanick’s rule-breaking also enabled bad behaviour within the company and left bad blood with regulators that his successors are still scrambling to fix. Tim Bradshaw The shale energy revolution that transformed the US into the world’s leading oil and natural gas producer involved hundreds of exploration and production companies, geologists, engineers and financiers.

No one embodied its headlong growth like Chesapeake Energy’s Aubrey McClendon, a persuasive industry advocate who built up the largest acreage position in the country. Soaring debts financed Chesapeake’s rapid growth, making it an early case study of the sector’s struggles to deliver returns to investors. McClendon was replaced as Chesapeake chief executive in 2013 after a scandal involving his personal borrowings. A second act was cut short in 2016 when he died in a car crash aged 56. Gregory Meyer The French economist’s vital analysis of the roots and consequences of inequality — Capital in the Twenty-First Century — helped shape the debate about wealth distribution in the aftermath of the financial crisis. The book, which won FT Business Book of the Year in 2014, gave intellectual grounding to the political movements across the world that grew in response to the rapid accumulation of wealth by the super-rich in an age of austerity and quantitative easing. Josh Noble The 46-year-old film producer is the mastermind behind the Marvel superhero movie and TV franchise that has come to dominate the entertainment industry and generate tens of billions of dollars at the box office. His success reoriented Hollywood around an all-consuming obsession with superheroes and space adventures, culminating in the record-breaking 2019 hit Avengers:

Endgame. The franchise, in which a wide range of characters and storylines were meticulously interwoven

by Feige and his team, redefined the superhero genre for a new generation, and helped Disney to not just withstand the threat from new rivals in Silicon Valley, but to fight back.

Josh Noble Rose McGowan once said she knew she was “destined for a big and strange life”. Yet even she might not have predicted the role she would play in #MeToo, one of the decade’s most influential social movements.

In 2016, the outspoken film star posted a series of tweets claiming an unnamed “studio head” had once raped her. The boss was rumoured to be Hollywood producer Harvey Weinstein, so Ms McGowan was among the first women The New York Times called when it launched its 2017 investigation into Mr Weinstein, who has denied all allegations of non-consensual sex. At first Ms McGowan balked at talking to the paper, claiming it had “sexism issues”.

But the story she eventually told helped to bring down Mr Weinstein and launch a movement that continues to reverberate today. Pilita Clark The battle to be crowned football’s Greatest of All Time has been a key driver for the global marketing machine that football has become, attracting billions of new fans, particularly in Asia, and with it vast sums in sponsorship and broadcasting rights deals. The intense rivalry between the Argentine and Portuguese superstars has played out in the Spanish league, the Champions League and the World Cup — and on countless games consoles across the planet. One of the pair has been named as the world’s best player in nine of the past 10 years. Josh Noble Mr Rodchenkov, star of the doping movie Icarus, was the mastermind turned whistleblower of Russia’s massive state-sponsored doping programme that delivered 34 tainted Olympic medals across five Olympic Games, until it was uncovered with his help after the 2014 winter games in Sochi. The exposure shook global sports, underlined the lengths countries were willing to go for sporting success and has ultimately resulted in Russia’s banfrom the next Olympics and football World Cup. Henry Foy The singer-songwriter has sold 37.3m albums and been named artist of the decade by both the American Music Awards and Billboard. But her power extends far beyond her record sales. She was 16 when she released her first album in 2006, since then she has sued a radio DJ for groping her and waged war and won against both Spotify and Apple Music over royalties paid to artists on streaming services.

The first battle took three years, the second 24 hours. Arguably the only person to have bested her was Kanye West in a spat over whether she had agreed to a crude reference to her in his lyrics, a feud which spawned a record-breaking album, Reputation.

Scooter Braun and The Carlyle Group are currently learning how it feels to be one of Swift’s exes as she seeks to frame a battle over her masters as a fight for artists’ rights. Don’t bet against her. Janine Gibson

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