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... as Access cancels planned N75bn rights issue ENDURANCE OKAFOR & OLUWASEGUN OLAKOYENIKAN

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n a deal that would create Africa’s largest bank by customers, the synergy opportunities for Access-Diamond Bank deal are estimated at N150.3 billion, managements of both lenders revealed yesterday.

The synergy gains will span Continues on page 34

Inside How Nigeria can raise N45trn to fund infrastructure – Mustafa Chike-Obi P. 2

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Nigeria’s decline shows as Ethiopia shines at WEF A LOLADE AKINMURELE

Access-Diamond Bank merger to lead to N150bn in synergies

₦1,287,778.67

FGN BONDS

TREASURY BILLS

ny Nigerian who listened to Ethiopian Prime Minister Abiy Ahmed in Davos must have looked on with envy as the 42-year-old spearheading a raft of investment-

friendly reforms in East Africa’s fastest growing economy sold his nation to an elite gathering of business leaders and politicians at this year’s World Economic Forum (WEF) in Switzerland.

Ahmed’s speech at Davos is something you would have expected from the leader of

Africa’s largest economy, President Muhammadu Buhari, only that the 76-year-old, who seeks a second term at next month’s elections, wasn’t even present at the gathering for the second year running.

Critics say Buhari’s distaste for private capital may be why he

has not seen the need to be a part of the Davos gathering. Buhari’s absence does little favours for a country badly in need of foreign investment, but is nowhere near attracting the required amount.

A 2019 report by the United Continues on page 34

L-R: Umaru Ibrahim, MD/CEO, Nigerian Deposit Insurance Corporation (NDIC); Ronke Sokefun, chairman, NDIC Board; Zainab Ahmed, minister of finance, and Aghatise Erediauwa, executive director, operations, NDIC, during the inauguration of the NDIC board members by the minister of finance in Abuja, yesterday. Pic by Tunde Adeniyi

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Nigeria left in the cold as oil partners jostle for position to ride an LNG boom OLUSOLA BELLO

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he Nigerian National Petroleum Corporation (NNPC) joint venture partners that initially indicated interest in participating in the development of two LNG projects are strategically moving away to other places to either help build or acquire equity shares in LNG projects across the world. Their main reason is to position themselves for the expected LNG boom.

The Olokola LNG with capacity of 12.6 million metric tonnes (mtpa) per year or 1.81 billion cubic feet per day (bcfd), which was launched with very high prospect for Nigeria, has almost become non-existent now.

The project was spearheaded by NNPC with Chevron, one of the joint venture companies fully involved, but the project is now dead even though there was the award of a US$14.5 million contract for the front-end engineering design of the project.

The contract was to be executed within 145,000 engineering manhours and would employ 100 engineers. It would also provide opportunities for skill development and competence enhancement for Nigerian engineers through technology transfer.

Today, Chevron has abandoned the project in Nigeria because of lack of seriousness on the side of the promoters.

TheBrassLNG,whichwasplanned to come into production before Olokola, is in a state of hopelessness despite the fact that the NLNG train 7 was put on hold for it to take off.

As of today, neither Brass LNG nor NLNG train 7 has taken off because of lack of seriousness by the NNPC which is representing the government in the projects.

Some of the companies that are partners of NNPC in one LNG project or the other include Shell, Chevron, Total and Eni. Victor Eromosele, a former gen-

eral manager at Nigeria Liquefied Natural Gas (NLNG), blamed the exit of the companies to other climes with more conducive environment to government’s delay in taking decisions.

Another industry operator who does not want his name mentioned said that if the government was serious and did not play politics with the projects, Nigeria would have been at the forefront of the LNG globally now.

The firms are reshuffling their portfolios in favour of gas ahead of the looming energy inflection point.

Analysts say although gas may not dominate energy supply for another 10-20 years or more, the industry is looking over the horizon.

Following on from a series of LNG-driven Mergers and Acquisitions (M&As) that included ExxonMobil’s acquisition of a 25 percent stake in Mozambique Area 4 and Shell’s purchase of Chevron’s position in Trinidad, Total and others have maintained the momentum.

The latest round of deals reflects a continuing scramble for the whole working package-access to low-cost fields, transport, sales and purchase contracts, and regasification.

The NNPC, Shell, Total and Eni signed the front-end engineering design contract of the Train 7 of the Nigeria Liquefied Natural Gas Limited not too long ago. This is coming up 11 years after it was conceived.

With six trains currently operational, NLNG’s plant on Bonny Island in Rivers State is capable of producing 22 million tonnes per annum (mtpa) of LNG, and 5mtpa of NGLs (LPG and condensate) from 3.5 billion (standard) cubic feet per day (bcf/d) of natural gas intake.

NLNG’s near-term expansion plans include construction of the seventh train to complement the existing six train structure, which when in operation will up the company’s total production capacity to 30 mtpa of LNG.

Sahara Group CEO in Davos says power sector impacts Africa’s journey to globalisation …lack of cost-reflective tariff deters investors IHEANYI NWACHUKWU & DIPO OLADEHINDE

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ower sector, most especially access to electricity, is critical in Africa’s journey to globalisation, says Kola Adesina, group managing director, Sahara Power Group Limited.

Adesina, who spoke with CNBC Africa at the ongoing World Economic Forum (WEF) in Davos, said Africa must improve access to electricity as to harness the digital revolution, adding that currently the continent has about 41.9 percent of the world’s population un-electrified, which invariably “is a huge opportunity for investors to cash on which will benefit Africa and move it closer to the fourth industrial revolution”.

He added that whereas the world is talking of the fourth revolution, the continentstilllagsbehindinthesecond.

“There is need to quickly close power gap which will allow Africa benefit from the fourth industrial revolution because we have not been able to get the electricity that we desire to improve our infrastructure and making the economy work well for the people,” Adesina said.

He explained that in order to bring energy to life, investors believe in Public Private Partnership (PPP).

He, however, also emphasised that

government needs to bring something to the table in order to provide confidence for foreign investment.

“If government is not willing to provide the sovereign guarantees to back up investments, investors like Sahara Energy who desperately and eagerly want to fill the infrastructure space are going to find it difficult doing business,” Adesina explained.

The CEO of Sahara Energy noted that because of the lack of costreflectivity in electricity tariff, it’s difficult for investors to put in their money because ultimately they want their money back.

“Government needs to stand behind the economy and consumers, most especially those who can afford to pay the right price for investors to come in,” he said, adding that government needs to leverage on the resources available to PPP that will reduce the huge infrastructural gap plaguing Africa countries.

“There is need for us to have a resource swap arrangement for infrastructure, most especially electricity. If we have that kind of model, we at Sahara Energy are eager to partner with any nations that need us to improve on their infrastructure,” Adesina said.

•Continues online at www.businessday.ng

Apapa residents protesting the siege and despoilation of their environment resulting from Federal Government’s neglect and what they see as a conspiracy between the Nigerian Ports Authority (NPA) and the shipping companies to force the residents out of Apapa, yesterday.

Pic by David Apara

How Nigeria can raise N45trn to fund infrastructure – Mustafa Chike-Obi GODFREY OBIOMA

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igeria has the capacity to empower private sector investors to raise as much as N45 trillion to fund infrastructure development by instituting a wellstructured guarantee programme, says Mustafa Chike-Obi, former CEO of Asset Management Corporation of Nigeria (AMCON).

The United States, for example, issues guarantees for multiple projects ranging from Fannie Mae, Federal Housing Administration to small business administration.

Chike-Obi believes by instituting a well-structured guarantee based on a modest 50 percent of GDP, Nigeria, which has GDP of about $375.11 billion or N135 trillion, can generate N45 trillion that can be dedicated to funding priority infrastructure like railways, construction of key roads, bridges, port dredging, and over-

come its infrastructure challenges fuelled by shortage of funds and rising debt profile.

Chike-Obi, who is also economic adviser to the Atiku/Obi Campaign Organisation, said if the Federal Government issues the guarantee, it will allow commercial banks to lend at a very low rate instead of the current interest rate of 25-30 percent.

“With this kind of arrangement, a modern railway system that connects all the major cities of the country would be built, thereby boosting transportation of goods and services across the country and increasing productivity,’’ he said.

He is optimistic that a guarantee programme devoted to building modern rail lines that will transport cattle will reduce the herdsmen/ farmer clashes over grazing. This, he said, will also minimise the rate at which these cattle lose weight from trekking and increase the value of beef extracted from them.

With such railways and highways built through guarantees, jobs will be created by building slaughter houses by train stations, providing refrigerator trucks that distribute the products, and restaurants, restrooms and modern hospitals in each geopolitical zone through which the rail lines pass, he said.

The former manager of a $6-billion asset portfolio at Goldman Sachs debunked insinuations that dropping interest rates following the guarantee programme to fund priority projects would cause excess liquidity and spike inflation, insisting the guarantee scheme would stimulate productivity.

“If you are more productive, that helps to bring down inflation. If you have increased yield in agriculture products, for example, prices will come down. So it is not all expansionary monetary policies that lead to inflation if you deploy the money into more productive sectors,” he said.

NERC considers capping estimated billing to speed up mass customer metering STEPHEN ONYEKWELU

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igeria’s electricity regulator is fine-tuning a regulation that will cap the amount electricity distribution companies can charge in the current estimated billing regime in order to dissuade use of the billing method and provide incentives for mass metering.

The Nigerian Electricity Regulatory Commission (NERC) is not stopping at simply capping estimated billing for electricity distribution companies (Discos), it also plans to de-risk and securitise the power sector because banks have become risk-averse with regard to the power sector and investors are equally slow to commit funds because the sector is foggy. And the Discos say electricity tariffs have not been cost-reflective, a situation which

persistently keeps electricity distribution companies’ books in the red zone.

A source at the Commission who has been part of the deliberations to cap estimated billing exclusively told BusinessDay that they Commission is consulting with the Discos and in the coming months the regulation will be rolled out. However, the source did not disclose further details with regards to specific timeline for implementation.

“We have presented three alternative methods to the Discos on how to calculate the cap amount for their respective franchises. They have chosen one of the methods,” the source said.

On acquisition of the distribution assets, the 11 Discos committed to metering 1.75 million customers annually but the metering capacity of the Discos is constrained by the limited allowable capital expenditure (“CAPEX”) in the

Multi-Year Tariff Order (“MYTO”).

The total annual CAPEX provision of N46.30 billion in the MYTO, if utilised wholly for metering, is insufficient to meettheDisCos’annualmeteringcommitment which is estimated at N52.50 billion annually – 1.75 customers at N30,000 per meter, according to PricewaterhouseCoopers (PwC) estimates.

This is the reason why the Commission introduced the Meter Asset Providers (MAPs) regulation, which effectively deregulates meter ownership. It presents an option which comprises an operating lease where a third party funds, deploys, operates the meters and retains ownership for a defined period while the DisCos pay a periodic “rent” for using the meters.

•Continues online at www.businessday.ng

Friday 25 January 2019

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DBN targets N70bn loan disbursement to MSMEs in 2019 … exceeds first year projections … disburses N31.36bn loans to 35,000 MSMEs HOPE MOSES-ASHIKE

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n its first year of operations, the Development Bank of Nigeria (DBN) is planning to disburse N70 billion loans to Micro, Small and Medium Enterprises (MSMEs) in 2019.

This is coming as the bank exceeded its projected performance with a total loan disbursement of N31.36 billion to 35,000 MSMEs. Tony Okpanachi, managing director, disclosed this Thursday, while presenting a scorecard of the bank’s performance in its first year of operations to the media in Lagos.

Okpanachi stated that the DBN formally commenced lending operations in October 2017 to its first two Participating Financial Institutions, (Micro Finance Banks) but

with a strong on-boarding exercise it carried out within the year, the bank currently has a total of 29 Participating Financial Institutions (PFIs), which includes commercial banks at various stages of engagement.

“Our total disbursementto-date stands at N31.364 billion thus exceeding our year end projection of N30 billion.

Total number of end borrowers stands at 35, 000 which also exceeded our year-end target of 20,000 MSMEs. “Women accounted for 73 percent of the end-borrowers of the DBN loans and received 27 percent of the total amounts disbursed,” he said.

Spurred by the achievements attained in its first year of operations, Okpanachi indicated that the bank’s disbursement target for the year 2019 has increased to N70 billion and is expected to help deepen the bank’s penetra-

tion in the MSMEs sector of the economy.

As a proof of the bank’s professionalism, the DBN helmsman also noted the bank has been recommended for various ISO certifications such as Information SecurityISO 27001; Business Continuity ISO 22301 and IT Service Management ISO 20000.

The DBN was set up as a wholesale development finance institution (DFI) to provide sustainable financing through eligible PFIs, who would in turn, lend to endborrowers - MSMEs for the development of that segment.

With a vision to be Nigeria’s primary development finance institution; promoting growth and sustainability, DBN seeks to fulfil three key mandates which includes, Lending activities to MSMEs, Partial Credit Guarantees and Capacity Building.

Stakeholders worry over Reps probe of PenCom

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ouse of Representatives’ decision to probe the activities of the National Pension Commission (PenCom) since April 2017 till date appears to have brought about calmness in the pension industry.

Industry stakeholders are however worried on the nature of the information the probe may provide to the public.

While some of them see nothing wrong in a probe, they are worried that sensitive and confidential information on the industry would be exposed to the public, saying the decision may hurt rather than help the industry and cause unnecessary anxiety by pension contributors in Nigeria.

An ad-hoc committee of the House of Representatives mandated to probe activities of the PenCom since April 2017 has sent tongues wagging on the exact motives and end game of the investigation.

The Committee headed

by E.J. Agbonayinma, had in a letter to Aisha Umar, acting director-general of PenCom, dated January 21, requested

confidential information on the Contributory Pension Fund, leading to speculation in the industry on why legislators would request information that breaches the law.

In the letter titled: “Request for Information,” the Committee asked PenCom to furnish it with sensitive information on its operations as well as the status of pension contributions in Retirement Savings Accounts (RSA), contrary to the provisions of the Pension Reform Act (PRA) 2014, which forbids the Commission and members of the Commission from disclosing such information.

Among the information requested by the legislative committee are “The Net Asset Values of the Contributory Pension Funds, details of supervision and regulations of Pension Fund Administrators and their key instructions and performances, compliances and defaults, annual pension operations of all the Pension Fund Administrators (i.e. details of amount collected from contributors and amount being paid out to retirees, from April 2017 till date).”

The Committee also re-

quested for details of investment percentages and profits from the investment of pension funds, and details of the Federal Government contributions to the Federal Government bonds.

It also asked for the “contributions of retirement savings account holders to Pension Funds Administrators and details of payments from PenCom into the Treasury Single Accounts (TSA) and bank accounts details operated by the Commission.” It also requested the PenCom to respond to the request urgently.

Stakeholders, who spoke on condition of anonymity, wondered why the lawmakers would ask the Commission to breach the pension law to give sensitive and confidential information about contributions of retirement savings account holders.

According to a senior staff of a PFA, “Some of us are ready to sue PenCom if this confidential information is given out because it is an infringement on the right of the account holders as well as the business strategies of respective operator companies.”

2019: UK, US threaten travel restrictions, other repercussions for election violence ... should move beyond lip service - stakeholders INNOCENT ODOH & INIOBONG IWOK

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head the 2019 general elections in Nigeria, the United Kingdom (UK) and the United States (US) have announced repercussions, including restrictions on travel on any person or group who may perpetrate election-related violence.

This was disclosed in a statement issued on Thursday by Tinu Oluwa Adelegan, senior communications officer, Press and Public Affairs, British High Commission to

Nigeria, 23 days to the presidential and National Assembly elections, and 37 days to the gubernatorial and State Assembly elections in Nigeria.

“We will be deploying an extensive observation mission for the forthcoming elections, including coordinating with the EU’s Election Observation Mission. Our monitors will in particular be looking out for any attempts to encourage or use violence to influence the elections, including on social media.

“We would like to remind

all Nigerians that where the UK is aware of such attempts, this may have consequences for individuals. These could include their eligibility to travel to the UK, their ability to access UK based-funds or lead to prosecution under international law. The UK is a friend and partner of Nigeria,” the statement said.

The UK government also reaffirmed its strong support for free, fair and peaceful elections in Nigeria, saying, “We and our international partners remain committed supporters of Nigeria’s democracy.”

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Life is a journey to wherever we go: And sometimes we get lost found out the first rule of leadership: everything is your fault. Walk from there back.

EIZU UWAOMA Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

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verage people have the luxury of saying that spoilt child talk of “it’s my life, I can go where I want, I can live how I want to”. But not you.

When you become a truly authentic leader whether in the corporate world or in society, you just don’t go that journey of your life alone anymore, you become the cowboy on the hill, top of the food chain, easy to spot. And your people (clients, employees, and even competitors) subconsciously come along. And blames come along with it too. The outcomes can be unknown for it’s a Yellow Bricks Road. It’s bad enough that people forget that you’re also trying to figure some parts of it out.

They assume you of all people should know the way, like you’ve always gone the way so show the way. You just can’t live anyhow. You really can’t even make excuses. A decade ago, I jumped out of college and started my business without any prior warning as to what leading a workforce is. After fiddling with it for years as a CEO, I

In the words of Lao-Tzu “a leader is best when people barely know he exists, not so good when people obey and acclaim him, worse when they despise him. But of a good leader who talks little when his work is done, his aim fulfilled, they will say: We did it ourselves.” Leadership isn’t always about being on top or in front. Basic level of leadership is about how many people are actually following you, the advanced level looks at how many leaders and not followers that follow you.

Someone asked me yesterday during a strategy session I was facilitating on how best can one move from being a boss to being a leader. And my response is for the person to move from thinking of “I” to thinking “we”.

Real leaders travel light, not carrying the heavy weight of selfcenteredness and ego. We most times can’t be totally selfless but we can at least exercise thinking less of self in situations. The challenge of leadership to those in its position is that most people suffer from the *delusion of grandeur* (that is like a narcissist, literally seeing themselves as on top and others beneath so they talk and act down on those they should be uplifting). And talking about uplifting, the motivation that a leader generates is key. The energy you bring should be priceless.

In my years of being in the corporate world and fighting competition

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Speak and communicate eloquently with clarity and passion from a place of authority. People usually tend to follow people who they feel is deeper and stronger than them. Stand on solid grounds, or at least appear that way

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in the market place, I have come to look out for the quality of those at the top. I am not afraid of an army of lions led by a sheep; I am afraid of an army of sheep (herd) led by a lion. He can inspire guts, he can raise wannabe lions.

As a leader, ensure you try to not raise followers but leaders. Put them in positions where they also learn to lead. A leader is not a person who can perform better than his people. It is someone who can inspire his people to perform better than themselves and even him, willingly.

True leadership is a powerful mental state than a position. Positional leadership rises and falls; it comes and goes but not true leadership. Whether true leadership or just mere being in its position, place, while in it, don’t forget

to be human, pragmatic and practical.

More than your words, actions count.

A leader is one that knows the way, goes the way and shows the way.

Leadership, being organized and the quality of people around you are keys to the sustainable growth of your dream, especially in the enterprise system.

The truth is, if you are a leader on a journey and no one is really following you, then you are only taking a walk.

But for the right people to follow you enough to grow a good organization, there are principles and styles to it.

And if you follow them, those people will follow you.

There are 4 leadership styles (directive and non-directive) 1. Telling: Directive/dictatorial/ autocratic 2. Selling: Directive, persuasive, oratory in delivery, still no enough room for follower input in decision making, 3. Collaborating: Democratic (bear in mind that the wrong or misinformed people in a group when given the power to always choose will democratically make the wrong choice).

4. Empowering: Allows the followers take decisions themselves. It’s called Management by Objectives.

This is apt when you have disciplined high flyers.

None of them is clear cut better, depending on the situation, mentality of the team, the culture/state of the minds within and level of maturity of the organization.

But the following must be present as you lead people into being right for

the organization to grow: 1. Vision: Ensure you appear and communicate as a sound visionary.

The truth is that people buy into the leader first and then the vision.

2. Speak and communicate eloquently with clarity and passion from a place of authority. People usually tend to follow people who they feel is deeper and stronger than them. Stand on solid grounds, or at least appear that way.

3. Respect yourself and then others: People naturally follow people they respect.

4. Intuition: Be deep enough to discern. Practice till you master meditation. Everything is created first from the mind. And the mind draws from the spirit. Be spiritually intelligent.

5. Develop magnetism for the best. You attract your kinds. And while at it, give value, show empathy and connection (touch a heart, before you touch a hand).

6. Develop and mentor people.

And then have a nested inner circle from differing circle to spar on all levels.

Life is a journey and sometimes we get lost. The true test of leadership is in how quick you can find your way back. It’s like the old, bad dusty Yellow Bricks Road that Dorothy Gale went through in the story from the 1900 book, The Wizard of Oz. Keep going for difficult roads lead to beautiful places. I will see you at the top.

Don’t hesitate to let us know how we can be of help

cession in the second quarter of 2016, after contracting by -2.06 percent.

Around January 2017, under Buhari, inflation rate stood at 18.55 percent.

Commodity prices rose sporadically as investors took flight.

A report released by NOI Polls in association with Centre for the Studies of Economies of Africa showed that dollar crunch forced 272 firms to shut down 12 months before August 2016. Fifty of these firms were manufacturers, especially small and medium-scale players.

Babatunde Odunayo, chairman, MAN, Apapa branch, said in November 2016 that manufacturers lost N500 billion to foreign exchange woes.

To add insult to injury, Nigeria became the poverty capital of the world in 2018, from being the happiest people on earth in 2013, with 87 million extremely poor people and 8,000 people sliding into extreme poverty on a daily basis, according to the Brookings Institution. India, with a population of 1.3 billion, almost seven times Nigeria’s population, has 73 million people living in extreme poverty. In percentage terms, India’s 73 million extremely poor people represent 5.5 percent of its population, while Nigeria’s 87 million extremely poor people represent 44 percent. This means that almost one in two Nigerians is extremely poor.

In the third quarter of 2014, Nigeria’s unemployment rate was 9.7 percent. But under Buhari, unemployment rate increased to 23.10 percent in the third quarter of 2018, from 18.8 percent in the same period of 2017, the National Bureau of Statistics (NBS) said. Today, inflation is 11.44 percent, with misery index, a metrics used in

ascertaining how well an average citizen lives, standing at 34.4 percent.

The NBS said the country’s foreign debt at the end of the first half of 2018 (H1’18) stood at $22.08 billion, representing a 17 percent rise over the $18.9 billion recorded at the end of 2017. The country is hurt by high domestic debt and extremely high-cost debt servicing of 63 percent, meaning that Nigeria pays N63,000 for every N100,000 borrowed!

In 2018 alone, three years after Buharinomics, the stock market lost N1.89 trillion, with investors playing ‘wait and see’. Today, under Buhari, Apapa that provides N3 billion-N7 billion every day for Nigeria, is left to totter. About 5,000 trucks seek access to Apapa and Tin Can ports in Lagos every day, according to a latest maritime report by the Lugo’s Chamber of Commerce and Industry (LCCI).

Consequently, Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of Nigerian ports.

The truth is that another four years of Buhari will be a disaster.

The rich will become poor and the middle-class will fall further down into extreme poverty. Nigeria will become another Zimbabwe, with the naira losing much value and citizens going extremely hungry. Now is time to say goodbye to Buhari, who does not understand what it takes to run a 21st century economy.

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Buhari: How not to run an economy

ANTHONY IGIEHON Igiehon is founder, Edo Political Forum.

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igerians waxed hysterical on May 29, 2015 when Muhammadu Buhari took over the reins of power. They hoped that Buhari was the expected messiah that would take the country to the pinnacle of phantom Eldorado.

Former President Olusegun Obasanjo, who supported Buhari against his erstwhile godson Goodluck Jonathan, had warned about the man’s illiteracy on economy and foreign affairs, but in the usual Nigerian manner, many people ignored him. Chants of ‘Sai Buhari’ and ‘Anybody but Jonathan’ were evoked whenever Buhari’s name was mentioned.

But few months after Buhari assumed power, many Nigerians began to see through his shenanigans. He did not disappoint Obasanjo and those who knew him well. In his characteristically sanctimonious manner, he went about ministries and parastatals meeting permanent secretaries and directors directly, describing them as superstars. In fact, four months after refusing to appoint critical ministers, Buhari was asked why he did not consider such appointments as im-

portant by France 24, and his bizarre response was that ministers were “there to make all the noise”.

As of the time he said this, the capital market had shed N3.255 trillion in one year, with his first four months in power being the worst.

Brent Crude, which provides 90-95 percent of foreign exchange and 70 percent of revenue, was already on a pratfall, around $40 per barrel.

Buhari was asked by the TV station whether the absence of a minister of finance was affecting the Nigerian capital market and economy and he said, “No. It is what we know – and which we learnt from the western system. The civil service provides the continuity, the technocrat. And in any case, they are those that do most of the work. The ministers are there, I think, to make a lot of noise.”

One month after, Buhari, who had contradictorily told Nigerians to expect technocrats as ministers, ended up appointing lightweights and wellknown round pegs in square holes as ministers.

His finance minister was Kemi Adeosun, an accountant with little knowledge of global economics. His budget and planning minister was and still is Udo Udoma, a lawyer.

His industry, trade and investment minister, Okechukwu Enalamah, is a medical doctor with an MBA. His super-minister, Babatunde Fashola, is a lawyer, but handles critical economic sectors such as power, works and housing. Buhari has no economist in his team. The only economist in his administration, Adeyemi Dipeolu, is in the office of the vice president.

“He took over a struggling economy due to falling oil prices but made the situation worse. Unbelievably, for a president facing an economic crisis, Buhari had no finance minister for several months, and when he eventually appointed one, she was so lightweight, lacking any international stature needed to restore investor confidence. Then, for nearly 2½ years, President Buhari stubbornly pursued misguided monetary, exchange rate and trade policies. He described economists as ‘so-called experts’.

Inevitably, the economic contracted in 2016, with -1.5 percent growth rate, the first time in 20 years, and growth remains sluggish at 1.8 percent,” Olu Fasan, international trade negotiator and visiting fellow at the London School of Economics (LSE), said in a recent article, ‘Buhari is Nigeria’s most arrogant yet inept leader’.

Fyodor Dostoevsky, Russian novelist, said the man who lies to himself and listens to his own lie comes to a point that he cannot distinguish the truth within him, or around him. Buhari’s self-deceit, unfortunately, could not guarantee him economic prosperity.

Less than one year after he became president, Nigerian economy went into recession. In 2014, under President Goodluck Jonathan of the People’s Democratic Party, CNNMoney had named Nigeria third fastest growing economy in the world, with China and Qatar taking the lead at 7.3 percent and 7.1 percent GDP growth, respectively. In 2016, however, Africa’s biggest economy dropped out of the first 15 countries on growth ranking.

Due to oil price drop that was poorly managed, the economy slipped into re-

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Shared prosperity: Pivotal for political stability Abiola Bashir Are Bashir Are is the former sole administrator, Lagos Island Local Government

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t is in the best interest of all noble Nigerians that every administration must succeed.

The current administration must however be constantly conscious that Nigerians sought for “A New Deal” that will strengthen Nigeria’s Human Development Index (HDI). The economic growth between 1999 and 2014 was riveted with vastly disparate income distribution that expanded Nigeria’s poverty gap. If the wealthy continue to get richer too rapidly; the demand for goods and services also increases exponentially. The rise in prices will then climb sharply beyond what majority of the citizens can afford, thereby creating demands for incessant wage increment from the organized labour.

Economic growth and political stability are deeply intertwined. Equally, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. Change is nonetheless constant and always risky but necessary. It must however be adopted with fanatical discipline through respect for contracts, constitution, and inclusive governance. Besides, an elastic continuity mechanism is critical to repositioning of Nigeria economy to obtain impactful growth.

Higher rate of unemployment will breed insecurity in any society, adducing inequality of opportunities, it amplifies poverty and uncertainty.

Nouriel Roubini, a renowned economist predicted the financial crisis

that mystified the world in 2008; he warned that any economic model that does not properly address inequality will eventually face a crisis of legitimacy. Nigeria recorded an average of six percent annual economic growth between 1999-2014; a sterling performance considering global meltdown in Y2008 but wage employment is estimated to have dropped by over thirty percent within the same period (“Putting Nigeria to Work”, World Bank June, 2010). Thus, the most important infrastructural development in Nigeria should be human capital development as reiterated by Bill Gates recently.

The strong economic performance we experienced in the first 16 years of returning to democracy failed to improve our obnoxious human development index because government of the day neglected the muchneeded human capital development that could have propelled Nigeria into a “Knowledge Economy”. Therefore, employers were not able to fill vacancies from the local workforce.

These problems emanated from dysfunctional educational system that doesn’t connect with the current reality, hence Nigeria parade university graduates with distanced skill gaps to contemporary labor demand despite our youth’s inherent thirst for knowledge.

Evidently, citizens at the bottom of the pyramid are currently being fortified through copious social intervention programs with sincerity and efficiency to bridge the poverty gap, this is very praiseworthy.Most wealthy nations with sizeable middle-class still offers social welfare programs, The United States Government offers social programs such as Section 8 and Medicaid. In practice, the Section 8 Housing Choice Voucher program will pay the balance of a rent payment that exceeds 30% of a renter’s monthly income. This program in under the purview of U.S. Department of Housing and Urban Development Medicaid is also a joint federal and

state program that helps with medical costs for some people with limited income and resources. The health and social welfare system are also part of everyone’s life in Britain, it provides help for anyone who is raising a family or who is elderly, sick, disabled, unemployed, widowed or disadvantaged. In South Africa, South African Social Security Agency (SASSA) is a national agency of the government created in April 2005 in order to distribute social grants and reliefs to needy citizens.

However, there must be an entrenched mechanism to promote upward income mobility to sustain these types of programs. The United States Congress enacted Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The bill was a cornerstone of the Republican Contract with America, and it is commonly called “Welfare-to-Work (WTW) Program”. It is a comprehensive Employment and Training Program designed to promote self-sufficiency, recipients are evaluated to determine the best course of action, options include immediate placement into a job, education, training program, or both. Therefore, recipients will not stay on welfare program for a lifetime.

Nigeria social intervention programs introduced by the current administration must be straighten.Afterall; big businesses get bailed-out by federal government intermittently.

Conversely, we must methodically and committedly encourage Foreign Direct Investment (FDI) for infrastructures development, even at $200 per barrel of crude oil we cannot resolve our infrastructure deficits as necessary and swiftly without massive FDI injection.

However, investors must have absolute confidence in policy stability and rationalcapital repatriation regime. A free market economy will help reduce unemployment sharply, investors and citizens can thrive boundlesslywith tiny government intervention; as long as the players adhere strictly to the established regulations.

Furthermore, we must massively and urgently amplify skill acquisi-

‘

A free market economy will help reduce unemployment sharply, investors and citizens can thrive boundlesslywith tiny government intervention; as long as the players adhere strictly to the established regulations

’

tions for unemployed graduates inICT, Maritime, Heating Ventilation Air-Condition (HVAC), Marine Welding, High-tech Carpentry and Electrical Wiring concurrently. If properly executed, these field of trades could fill thousands of jobs that were hitherto filled by expatriates.

Mostexpatriates’ technicians in the oil sector went to vocational schools in their native countries, and they earn average of $70,000 yearly working at Nigeria’s offshore oil-rigs.Meanwhile, Nigeria’smetallurgical, structural and mechanical graduate engineers roam around for years looking for job with archaic skills. Thousands of unemployed graduate engineers should be deliberately and systematically trained for these types of jobswith guaranteed job placement or internship with private companies that has joint venture or partnerships arrangement with the government.

Research concerning expatriatetechnicians further took me to Maritime Industries Academy Foundation, a partner of Baltimore City Public Schools.This academy offers seagoing career training to high school students,

a fresh high school graduates that finished from this academy earns $45,000 per year globally after graduating as a Seaman Recruit. Labor is an integral factor for localization of industry, but insufficientskilled workforce largely forced Multi-National Corporation (MNC) to import expatriates.

At this point in time, every state in Nigeria should be a massive construction sites and commodity exchange centers, the reduction in spending by the private sector must be offset by strategic stimulus spending by the government to boost economic activities.President Dwight Eisenhower of United States of America enacted National Interstate and Defense Highways Act of 1956which gave birth to America’s interstate highway system.

This Act produced more than 41,000 miles highways that are still the bedrock of USA transportation system till today. Millions of jobs were created in the process, all states were connected to amplified commercial activities and exports.

Today, South Korea has become a knowledge economy and thus climb its way up the world economic ladder through education and development of her human capital. Samsung and LG products are now de-facto electronic gadgets around the globe surpassing Japan’s Panasonic and Phillips of Netherlandin the past two decades. The oil industry which contributes about 11% to National GDP employs fewer Nigeria, it’s absolutely nonsensical.

Substantial infrastructure upgrades, Business Process Management and Information Technologybusiness enablement initiatives could generate approximately 2.6 million new direct and indirect jobs within the next 4 years; these are the areas that needed urgent and laser-focused attention.

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Benue State educational sector has since been in a state of animated suspension

Michael Nicholas-Mandla

Writes from Lagos

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here is no doubt that corruption exists in all sectors in Nigeria. The corruption in the educational sector is a frequent occurrence although it varies in sizes and shades from one state to another.

As a result of poor leadership and woeful planning, the public schools system has become dysfunctional across Benue state and the sector has become an arena of inefficiency and a cesspool of corruption. For instance, the conditions of public schools in Okpokwu Local Government Area, one of the first local authorities in Benue State and my immediate constituency is quiet disheartening and pitiable.

From Edumoga through Ok-

poga to Ichama, the condition of these public schools is the same.

The schools surroundings have become havens for several species of grasses and wild animals. The buildings have become dilapidated and academic activities are literarily crippled. The less privileged ones, who have no other alternative, usually receive lessons under the trees as there are no chairs or roofs to give them shelter.

Since the return to democracy in 1999, Okpokwu has been on the good page of political relevance and Benue State having produced a Minister, State Party Chairman of the PDP, Commissioners, Special Advisers and most recently, the position of the Deputy Speaker of the Benue State House of Assembly. Aside these political gladiators, we are richly blessed with several illustrious sons and daughters who are heads of parastatals and agencies, and others who have done well for themselves in their chosen carriers.

Children attending public primary schools in Benue State were stuck at home for over eight months following a prolonged strike by their teachers for nonpayment of their salaries.

While we celebrate those who have taken bold steps to establish private schools, our leaders need to be reminded that the public schools in Okpokwu and other parts of the state need some enhancements since most of these private schools are out of the reach of the masses. This is just one of the ways our politicians can give back to the grassroots who elected them and not by the continuous sharing of offering monies, salt, meat and wrapper as is customary.

The public schools system is looking for the era of change to spill some benefits on them through the wind of change that is now blowing. If the public school system can be given its deserved attention, by improving their infrastructure, improving the quality of teaching and learning, and improving the lots of teachers, the state of education would improve and the effect of ‘change’ would reach the grassroots level.

Teachers occupy a pride of place in the scheme of things and should be given their due respect and entitlements instead of debasing and ridiculing them with insults and subjecting them to unnecessary hardship. Governments should be

made to honour their salary obligations to teachers by making their monthly salaries a priority among competing items on the budget.

Our public schools and teachers deserve more from the Benue State government under the present political dispensation.

What should the government do?

Primary school teachers in Benue state are being owed 11 months’ salary arrears while their counterparts in secondary school teachers are owed five months arrears.

Furthermore, the state owned university is presently on strike due to the laxity of the government towards the education sector in the state.

Education is an essential necessity in every society because it engenders development. Therefore, any government that cannot take education sector seriously is of no value to the society and should be sent packing.

It is shameful that the current administration in the state is still blaming the previous government for her inability to move the state forward instead of concentrating and making good use of the avail-

able resources of the state in the way that can bring positive change.

Under the present administration, public institutions in the state especially schools have witnessed a downward slide.

It should be noted that the federal government released bailout funds to the state to pay all the outstanding salaries and allowances of the workers in the state but the funds were diverted.

The state has continued to receive its statutory allocations from the Federation Account, including the latest release of Paris Club refunds, but the salary arrears owed by the government are still not being paid off. Instead the current government is still blaming the previous administration as if the previous administration is responsible for the diversion of the bailout funds and other funds released to her by the federal government, to pay the outstanding salaries and allowances of the workers in the state.

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Ameachi tapes: The hypocrisy of Nigerian ruling elite

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he dissonance between what they profess before the public and in front of the cameras and what they believe or admit to close aides and friends in the closet are worlds apart and go to show the quality of leadership the country parades and why the country is retrogressing despite its promise and the amount of resources available to it.

The Minister of Transport and Director General of the Buhari-Osinbajo Presidential Campaign Organisation, Rotimi Ameach, was caught on tape decrying the dismal failure of the Buhari administration while characterising the president as one who doesn’t read and isn’t moved by criticisms and complaints. He also dismissed the country as hopeless and helpless country that is up to no good.

Although the minister has refused to confirm the authenticity of the tape, it is almost certain the tapes are genuine and he made the remarks as captured.

The leaked tapes offer rich insights into the thinking and hypocrisy of the average Nigerian politician who put up the

appearance of being the most patriotic Nigerian with the zeal to transform the country but inwardly, doesn’t believe in the viability of the country and is prepared to sell the country for a mess of pottage.

That explains why, despite the effusive claim to patriotism by our leaders and politicians, Nigeria still remains a backwater country with broken education, health, and other critical infrastructure necessary to help Nigerians lead meaningful lives while they ensure they and their families have access to these facilities in other developed countries of the world.

Unsurprisingly, in a fourth Amaechi tape, the minister was again heard boasting that all his children live abroad and his salary as a minister cannot cater for their expenses. “My salary is N960, 000. APC takes N100, 000.

How much will remain? It won’t pay; all my kids are overseas, all. My first son is in Dublin, my second son is in Canada and my third son is in Britain. It won’t pay any of their fees.”

Going by Amaechi’s claim of not earning enough to pay his children’s fees abroad, the rational step of action was for him to decline public office and go into private business to be able

to raise enough money to cater for his family abroad. But no, he would do anything; go as far as giving his life to remain in politics and government in Nigeria because, politics, in the words of Claude Ake, Africa’s foremost political economist “is now the established way to wealth.” So, those who win state power “can have all the wealth they want even without working, while those who lose the struggle for state power cannot have security in the wealth they have made even by hard work.” Predictably therefore, the struggle for the capture of state power “inevitably becomes a matter of life and death.” It is also why Nigeria’s political terrain is devoid of ideology, devoid of principles, and devoid of morals. It is all about personalities, interests, and the spoils of power. Consequently, political parties that should serve the important functions of bringing together those with the same ideological persuasions have been turned to mere vehicles for capturing power. Therefore, there is no distinction between the parties and politicians hop from one party to another in desperate quest for platforms on which they will ride to power.

As the saying goes, there is no

permanent friend or enemy but interest.

That is why an El Rufai, for instance, in 2010, will describe Buhari as old, expired, and ‘perpetually unelectable,’ when their interest did not align, but will turn round in 2019 to urge Nigerians to vote for the same Buhari because only he possesses the ability to solve Nigeria’s existential problems, when their interests are in syn.

This type of hypocrisy is the norm among Nigerian political leaders, starting from the president, who projected the image of an ascetic, disciplined, incorruptible ex-general who would break from the practice of political leaders living a luxurious life while the people they claim to serve live in abject poverty.

No sooner had he ascended to power than he jettisoned all his promises during the campaigns.

He has led the way in public officials seeking medical treatment for even minor ailments vacationing abroad. His kids also school abroad. So, the next time you hear a Nigerian politician mouthing patriotic slogans; go beyond the spoken words and look at what he does: Where his family lives, where his children go to school, where they access healthcare, go for vacation etc.

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CITYFile

NDLEA nabs 3 with 586kg of Indian hemp

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he National Drug Law Enforcement Agency (NDLEA) has arrested three persons with fake police uniforms and 586 kilogrammes of substance suspected to be Indian Hemp in Niger.

The agency’s commander in the state, Sylvia Egwunwoke, said that the suspects were arrested with 55 sacks of dried weeds suspected to be cannabis saliva.

According to her, the drug was concealed in two Toyota Hilux with registration number NPF 506 IC and another unmarked vehicle with sealed plate number at Makwa town.

“Intelligence reports have it that the drugs were brought in preparation for the 2019 general election. Investigation on going and suspects will soon be charged to court,” she said.

She appealed to members of the public to assist with the required information in apprehending those in the illegal trade.

Road repairs: FRSC issues traffic alert

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he Federal Road Safety Corps (FRSC) has issued traffic alert to motorists on some major highways across the country where reconstruction has resumed, calling for caution in driving.

Public education officer of the corps, Bisi Kazeem, issued the alert via a statement in which he listed the roads to include Lagos-Ibadan Expressway being handled by Julius Berger, Kaduna-Kano road with more critical sectors along Kaduna-Zaria and Kachia routes.

“Also affected is the Kweita Bridge along Gwagwalada-Lokoja road being handled by Reynolds Construction Company (RCC).

“As a result of the construction work on the Bridge, the road will be diverted from Piri, immediately after Yangoji on the road.“Motorists are by this notice advised to drive carefully when approaching Piri to avoid hitting erected traffic barriers,” he said.

Kazeem said that FRSC ambulance would be stationed at strategic diversion points to direct traffic on the LokojaGwagwalada road.

“Patrol vehicles will be at Kweita to return traffic to normal routes in order to ensure free passage,” he said.

He said the corps marshal, Boboye Oyeyemi, had directed the intensification of traffic control along the affected routes for free flow of traffic.

“Motorists are further advised to make adequate plans for their travels and allow for extra travel time because they have to obey the 50-km per hour maximum speed limit at construction zones,” he said. NAN

Workers of Bendel Brewery Company protesting over the vandalism of the company’s assets.

Pic by Churchill Okoro

Dismissed soldier to die by hanging for killing lover

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Plateau High Court sitting in Barkin Ladi has sentenced a 34-year dismissed solider, Sunday Umaru, to death by hanging, for hacking his lover to death over a message found on her phone.

Justice S.P. Gang handed down the sentence after finding Umaru guilty of killing his girlfriend, Charity Thomas, on January 23, 2016.

Delivering the judgment on Wednesday Gang declared that Umaru “mercilessly took the life of Charity Thomas in cold blood” and had to face the full wrath of the law.

“This sentence is mandatory; the law states that any person convicted of murder shall be punished with death by hanging. The sentence of this court upon you is that you, Sunday Umaru, will be hanged by the neck until you are dead. May God have mercy on your soul,’’ Gang declared.

Umaru, an ex-military man, was dragged before the court on July 14, 2016, for allegedly killing

his lover. Umaru, a married man, was a Private in the Nigerian Army and was serving at the Special Task Force (STF), Sector 7, Barkin Ladi, at the time of the incident, on January 23, 2016.

At his arraignment, Umaru faced a onecount charge of culpable homicide. He was specifically accused of killing his lover, Charity, who visited him from Kaduna, by stabbing her with a knife in the stomach, slaughtering her thereafter and dumping the body by the road side.

According to the prosecutor, Emmanuel Awe, the accused person committed the crime on January 23, 2016 in Barkin Ladi local government area of Plateau State.

Awe, while reading out the charge, said that Charity’s lifeless body was found the next day, January 24, 2016, by neighbours and some soldiers, who trailed the blood marks to the accused person’s house.

“Friends of the accused, who were the military men that evacuated the body, also recognised the girl as Umaru’s lover, who was

seen with him the previous day.”

The accused, he further told the court, quickly fled his base and returned to his family at the Rukuba Barracks in Bassa local government.

The prosecutor said that a team of military men mobilised and went after the accused and arrested him at his home in the barracks, while in the company of his family. He said that during investigation, the police discovered several gory pictures and videos of the deceased that the accused took in his phone, immediately after the murder.

The Nigerian Army quickly tried the accused and dismissed Umaru after finding him guilty of killing his lover.

Counsel to the accused, David Adudu, however, expressed dissatisfaction with the death sentence passed by the court.

“I will get a copy of the judgment, study same and raise possible grounds for an appeal,” he said. (NAN)

More A’Ibom communities to become oil-producing ANIEFIOK UDONQUAK, Uyo

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here are strong indications that more communities in Akwa Ibom will soon join the rank of oil producing areas as new crude oil deposits have been found in Uruan local government area of the state.

Governor Udom Emmanueal who announced this in Uruan, near Uyo the state capital said the state government is awaiting the conclusion of all formalities to kick start exploration of the recently discovered crude in the area.

According to him, the new oil field is a result of the efforts by the state government to boost economic activities in the area and create employment for the people.

“Uruan is at the verge of becoming one of the oil producing communities in the

state. That’s why you see a new oil rig in the area, once we are done with signing of papers, we will commence exploration,” Udom said He added that his administration was also establishing a green house agriculture farm for the cultivation of special crops in the area.

“I can assure the people of Uruan that everything ongoing in the area will be completed and commissioned before the end of the administration. The green house in Uruan will be commissioned by our presidential candidate”.

On the cattle range expected to take off in the area for the production of milk and yoghurt, Udom explained that though government has concluded preparations for the range, it was necessary for the 2000 cattle purchased to reproduce in their natural habitat before being transported down to the state.

He reiterated his commitment to improved healthcare delivery, saying that such moved him to work to ensure massive turnaround for the Ituk Mbang General Hospital which was in a serious state of disrepair.

“Ituk mbang hospital was overgrown with weeds without maintenance and we came in and turn its fortunes around, equipped it with modern facilities.

The governor reaffirmed his determination to initiate projects that would create jobs for youths in the state.

A leader in the area, Peter Ekpe Atakpo listed the projects established and facilitated by the governor in the area to include; Akwa Prime Hatchery, AnuaMbak-Issiet road, Mbiaya Uruan road, Mbiatok Itam-Mbiaya Uruan road, Mbiaya-Ita-Ikpa-Mbiakong- Idu road, Adadia/Use cattle ranch, housing estateIbiaku Ishiet.

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MoneyInsight Nigeria’s ecommerce market: Addressing the real problems FRANK ELEANYA

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his January, Deal Dey and Gloo.ng joined the growing list of firms in Nigeria’s ecommerce space that are taking the exit door, unceremoniously.

That list also has in it, names like Efritin, OLX, and the old Konga.

Jumia and PayPorte which appear to be the last-man-standing have been really shaken in recent times by the harsh realities of the environment.

Gradually, the ecommerce space has come to be a reference for where not to invest money in Nigeria. Ndubuisi Ekekwe, chairman of FASMICRO and one of the prominent critics of ecommerce in Africa, all but shut the door on foreign investments in ecommerce in a recent article with a screaming headline ‘Avoid Starting Ecommerce Venture in Africa Now.’ In the article he describes the sector as “the easiest way to waste money and destroy value in Nigeria.”

He says any ambition of making profit in ecommerce will take a very long time to happen. In other words, as it stands, it is nearly impossible.

Olumide Olusanya, founder of Gloo also does not have flattery words for ecommerce business in Nigeria, for obvious reasons. For him, Africans in the sub-Saharan region do not have strong need for ecommerce.

“Total addressable market (TAM) is not big enough while there are high service delivery frictions,” he says.

Currently, businesses in the sector struggle to count up to 500,000 active unique ecommerce customers in Nigeria.

It was not always so.

Stories of Amazon’s and Alibaba’s ecommerce successes elsewhere in the world in some way provided the drive for investors to believe there was a need for an ecommerce market in Nigeria and other African countries.

Perhaps the optimism of early pioneers of ecommerce in Nigeria like Leo Stan Ekeh founder of BuyRightAfrica.com was justified given the size of the population, majority of who were vibrant young people.

In 2013 and 2014 when the market was coming to limelight Nigeria had just discovered it was

the largest economy in Africa and the number of people in the middle class was on the rise. Internet adoption was also having a healthy run. To top the icing, Omobola Johnson’s ministry of ICT had just launched a National Broadband Plan with 30 per cent broadband growth by 2018 set as target. It was easy for investors to see ecommerce was the next big thing.

There was a time in Lagos when buying an item from Jumia or Konga was a fancy way of announcing to friends and colleagues you have joined the elite class. In 2014, activities on ecommerce platforms in Nigeria showed over $2 million worth of online transactions per week and close to $1.3 billion monthly. The market was estimated to grow at the rate of 25 per cent annually.

Competition for customers went overdrive; Konga and Jumia practically combed every nook and cranny for advertisement space; every billboard, street light poles, television and social media platform was an opportunity for visibility.

“It will be interesting to look

at the advertising budgets for the leading ecommerce companies in their heyday and assess if result justified the expenditure in terms of number of customers acquired,” Collins Onuegbu, executive vice chairman of Signal Alliance and a serial investor, told BusinessDay. “But to be fair to them, the race to be number one required that they create visibility for their brands.”

Apparently, visibility was not a major challenge to unlocking profitable in ecommerce in Nigeria; otherwise the aggressive advertisement model would have been a reference of how to succeed in the space.

Adedeji Olowe, CEO of Trium, says the bigger problem with ecommerce businesses in Nigeria is trust. Consumers could not trust the companies enough to want to continue patronage.

“At the time ecommerce started in Nigeria, digital payment was at its infancy, so the failure of card transactions was rampant,” says Olowe. “Ecommerce companies were forced to introduce payment on delivery (PoD). Of course, there was a massive boost that at one time PoD was 93 per cent.”

The ecommerce businesses apparently failed to capitalise on the PoD growth as quality of customer service dropped, delivery delays became a daily occurrence.

On most cases when customers ordered for item A, they got delivered B or worse, fake products by employees of the ecommerce and courier businesses. Lack of trust was responsible for the failure of efforts by the old Konga to introduce cash before delivery model.

The company finally bit the dust in 2018 when it was acquired at a loss

by Zinox which also runs the predominantly offline store, Yudala.

The economic recession that Nigeria suffered from 2016 to 2018 may have also had a debilitating effect on the revenues of ecommerce companies. The sharp fall in the value of the naira impacted household incomes. Suddenly the amount of disposable income in the hands of the growing middle class became very limited.

Onuegbu suggests that had the economy continued to grow and retail kept expanding, more people with disposable would shop online.

“I believe when retail recovers

as the economy itself recovers, ecommerce will become more attractive,” he says.

Olowe has more radical solutions for ecommerce recovery in Nigeria. One is the creation of an escrow system which allows buyers to pay but merchants do not get the money until they perform.

Alibaba has leveraged on such an escrow system to become a global force where a Nigerian is able to pay for goods, have it delivered to Lagos, while trusting that the Chinese seller would not run away with his money.

He also wants a focused involvement of the Consumer Protection Council (CPC).

“Every package must have a document and a process for dispute which if ignored goes to the CPC,” he says.

Finally, ecommerce merchants could be made to pay a small percentage of fees on every sale, chargeable to buyer, as insurance to reimburse when there is a dispute. This money automatically goes to the insurer every month.

“This is like the NDIC that gives smaller customers comfort about bankers,” Olowe says.

Friday 25 January 2019

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Company Review

Company Review

How digital lenders vie for banks’ oversized shoes Stories by FRANK ELEANYA

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efore online lending firms became popular in Nigeria, raising money to take a small business from point A to point B was like a perilous journey through a desert, especially when a deposit money bank was involved.

Banks in Nigeria complain that small businesses are not attractive loan prospects; however they can accept SMEs deposits much of which they give to big organisations and high net worth individuals at attractive interest rates.

Deposit money banks (DMBs) dominate the credit market in Nigeria, representing between 85 per cent and 90 per cent (by loan value) of the credit data in the country, according to data from the Central Bank of Nigeria (CBN).

DMBs rarely lend money without collateral which is why they prefer big organisations and high net worth individuals. The result is that only 350 Nigerians are responsible for more than 80 per cent of the N5.4 trillion debt portfolio of AMCON, the bad debt bank.

Notwithstanding, the entry

of firms that leverages digital technology to provide easy and convenient access to credit has proven that lending to small businesses is not rocket science as banks made everyone think.

For banks it is mainly about the bottom line; safeguarding shareholders’ assets, however for majority of the digital lenders it is about filling a void left by banks. From the transaction reports released by some of them, it is clear there is no problem of demand.

Maria Rotilu, the general manager of Branch Interna-

tional, a digital lending company with offices in Nigeria, Kenya, Tanzania, India and Mexico, told BusinessDay that it has disbursed over 600,000 loans valued at over N5 billion to small businesses and households. The firm has so far secured over $100 million from top international investors including the World Bank Group’s International Finance Corporation (IFC) and Andreessen Horowitz. The latter is one of Silicon Valley’s venture capital firms, whose previous investments have included Airbnb, Instagram,

and Facebook.

Paylater, a 2-year old credit company with a mobile app that has been downloaded one million times, disclosed in its newsletter last week that it disbursed 591,560 loans valued at N13 billion in 2018 which represents over 300 per cent growth in loans compared to the previous year.

Kiakia, another 2 year old company also disclosed in December that it has disbursed loans valued at over $1 million in peer-to-peer loans.

Kudi.ai also reported that its monthly transaction grew

by 25 per cent, from 28,000 in January to 700,000 monthly transactions.

The use of credit scoring has been a major breakthrough for the digital lenders. Credit scoring refers to a statistical analysis performed by lenders and financial institutions to access a person’s creditworthiness. Without the encumbrance of collateral, these digital lenders increasingly rely on individual’s credit scores to disburse loans.

“The use of credit scoring is growing amongst lenders in Nigeria albeit at a slow pace,” says Rahmon Ojukotola, founder of StartCredit, a platform that helps users identify the best loans and interest rates available.

Credit scoring helps the firms’ decisions on lending.

Nevertheless, the final decision is made by the lender’s risk appetite. If a Branch for instance, is not convinced that lending to a particular business is worth the risk, it might decide to not disburse the loan.

Maria Rotilu of Branch explained that the challenge with credit score in Nigeria is poor development; hence its results are often not reliable.

“Many customers lack the traditional credit histories that would allow them to access

traditional options, and traditional financial institutions are unable to underwrite these customers,” she said.

To mitigate this risk, Branch relies on machine learning to be able to offer customers access to credit. The company will however need the customer to allow it use data science to analyse smartphone data to determine loan eligibility.

Branch’s machine learning algorithms process thousands of data points to create personalised loan options in a matter of seconds.

A blindside to taking loans from digital lenders is the high interest rates they charge.

Ojukotolola attributes the high rates to high default rate amongst borrowers.

“The lender must set a rate that recovers enough revenue to cover the defaults and generate profits,” he said. “The loans from moneylenders are mostly uncollaterised as such they have a higher rate than microfinance banks who mostly require collateral and a guarantor.”

Rotilu says the advantage lies in customers’ reliability to return the loans taken. As they take and return loans, they gain access to higher loan amounts, lower interest rates, and longer repayment schedules.

female respondents edged this group at 51 per cent. The willingness to buy paired with the 38 per cent of respondents who said they already own cryptocurrency.

“This encourages us in our mission to upgrade the world to a better financial system by providing safe and convenient products for Nigerians to buy Bitcoin and Ethereum,”

Odia said in a note.

Bitcoin has the highest number of awareness from respondents. Over 80 per cent of those who own cryptocurrencies said they own bitcoin specifically. Ethereum, Bitcoin Cash, and Litecoing are a distant second, third and fourth at 30 per cent, 23 per cent, and 22 per cent respectively.

Nigerians show resilience despite sluggish crypto market

V

ery little positive news has greeted the global cryptocurrency market in recent times, but Nigerians are not letting that deter them from participating in the market.

A new survey released by Luno shows that 65 per cent of over 1000 respondents in the country said they were

familiar with cryptocurrencies. 54 per cent of that group are women.

Luno is a platform that enables users buy and sell cryptocurrencies like bitcoin and Ethereum. The company currently has offices in 40 countries and has recently announced it will be opening markets in Africa.

According to Owenize

Odia, country manager of the company in Nigeria, the goal of the survey was to get a better understanding of how Nigerians were using cryptocurrencies and also gain a sense of the level of education of the average crypto customer.

The company is one of the platforms that have invested significantly in educating

their users using the Luno Learning Portal.

“When people are better informed of the market they make informed decisions,” Odia once told BusinessDay. The survey showed that 48.09 per cent of the respondents who do not currently own cryptocurrency indicated willingness to buy in the near future. Notably,

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Wikipedia plans articles in Nigerian language, 9 others with $3.1m Google funding

Pg. 17

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

-CONSUMER GOODS

Celebrations sets sight on Lagos gift market FRANK ELEANYA

F

ollowing a 20 per cent year on year growth in the last five years, Celebrations, a card and gift retailer, says it is ready for the Lagos market.

The company disclosed in a statement sent to BusinessDay that after more than 2 decades of servicing customers in Jos and Abuja, it plans to debut in Lagos in February. It is kicking off with an office in Lekki Phase 1 where it will offer shoppers a unique shopping experience for gift items ranging from greeting cards, perfumery, jewellery, accessories, leather goods, confectionery, porcelain pieces and precious items.

Dele Balogun, managing director of Celebrations Cards and Gifts says its advantage in the market is the ability to evolve to meet growing customers growing needs while seeking new ways to serve them better.

“We look forward to bringing the same quality assurance, affordability and service that

has kept us growing all these years to Lagos and building new relationships,” says Balogun.

In a world that is evolving with digital technology, Balogun said gift cards still remain a constant feature in many households. However, flexibility for Celebrations means staying abreast of changing consumer taste and sourcing materials locally to ensure a healthy mix of local flavors.

“We found we were able to appeal to the student who wanted just a birthday card and to the ‘madam’ who wanted a curated gift box and hamper for husband’s birthday,” Balogun said.

The company is currently the licensed distributor of some notable global card makers. Some of the products lined up for the Lagos market include exclusive gift items from brands like Chrisian Lacroix, T2 Tea, Cross AT, and Keel Toys among others.

Celebrations began in 1989 as a corner shop kiosk in the student village hostel of University of Jos. Balogun recalls that his father was the pioneer with the goal to providing uni-

L-R: Mathew Ayiburo, director research and policy, Africa Network for Environmental and Economic Justice (ANEEJ), David Ugolor, executive director ANEEJ and Newton Otsenaye, programm manager SCRAP-C ActionAid Nigeria, during a press briefing by Civil Society Organisations on the Social Protection Cross-Learning Summit in Abuja.

Pic by Tunde adeniyi.

versity students with quality but affordable gift items during the school term. Since taking over from his father in 2013 Balogun and his new manage-

POWER

E

conomic and social activities in Bayelsa State will soon get a boost thanks to a 41-megawatts power plant being built in the state capital by Italian oil giant ENI gets underway.

Built for the purpose of serving the state, the power plant is expected to contribute to the Federal Government’s efforts at strengthening power supply across the country as whatever is unused by the state would be transferred to the national grid.

Though the cost of the plant was not disclosed, the first phases of the project, which is 10 megawatts, will be commissioned by May this year.

Work will start on the second phase which is 25 megawatts almost immediately and thereafter it would be scaled up to 41 megawatts, a power industry source disclosed to BusinessDay on the side-line of the on-going West African International Petroleum Exhibition and Conference (WAIPEC) taking place in Lagos.

The state has the largest gas reserve in the country but despite this,

mark licensed store,” he said.

“We also have a loyal customer base that has shopped with us as they progressed from Kiosk visitors at the University of Jos

to seasoned professionals.”

The new store in Lagos official opening hours are from 9am to 9pm Mondays to Saturdays.

BANKING

ENI building 41mw plant to boost power supply OLUSOLA BELLO

ment has grown the number of shops from six, three in Jos and two in Abuja.

“We now have three stores in Abuja including a full Hall-

power supply in the state has been epileptic.

About two- third of the power plants in Nigeria depend on gas for generating electricity.

This may also reduce the cost of living in the states, as most residential and commercial activities depend on private generators to power their activities.

To achieve this, a special purpose vehicle has been created between the Bayelsa state government and Eni which is Bayelsa Electricity Company which will take over the operations of the plant.

When the first phase of the project is commissioned, it is expected that the Nigerian Content Development and Monitoring Board would take between 2 to 3 megawatts of electricity to power 17 story headquarter office situated in state capital.

The company, Eni is also billed complete the over 400megawatts okpai power plant, in Delta State which will bring the total generating capacity of the plant to a little about 1000 mw in July this year.

Recently, Usman Muhammed, managing director of Transmission Company of Nige-

ria (TCN), stated that Bayelsa State was on the verge of achieving stable power supply He said through the work that the governor has done, Bayelsa is now connected to national grid.

“We just concluded 90 MVA; the former capacity was 30MVA, which means we have increased the capacity by 300 percent of what it used to be. “ According to him, TCN has provided another 40MVA and continues to look at how to collaborate with the state government to install that 40MVA. In spite of claims of huge investments to improve power supply in all local government areas of Bayelsa State, residents have decried poor power supply.

The State Commissioner for Power, Ogbolo Jim, said the state government had invested over N2 billion to improve power supply.

He explained that the government had carried out a lot of projects in effort to boost electricity supply. The government have carried out the construction and rehabilitation of 48 electrical projects within the six years in office.

First Bank, Microsoft 4Afrika partners to support SMEs BALA AUGIE & SEYI JOHN SALAU

I

n a bid to build capacity and help S m a l l a n d Me d i u m Scale Enterprises (SMEs) accelerate digital transformation, First Bank of Nigeria Limited and Microsoft 4Afrika, two global brand in the financial and Infor mation Technolog y ( I T ) s e c t o r a re p a r t n e ring to support SMEs in Nigeria.

The collaboration will therefore enable First Bank and Microsoft 4Afrika, host a free-to-attend event for SMEs in Nigeria, designed to promote technology adoption and skills development. The event is to ser ve as an official launch of the new partners h i p b e t w e e n Mi c ro s o f t 4 A f r i k a a n d Fi r s t B a n k , following a memorandum of understanding signed in June 2018.

The partnership seeks t o b u i l d t h e cap a c i t y o f local SMEs and accelerate their digital transformation, by providing th em with exclusive and tailored non-financial solu-

tions. Participants will be exposed to skills development resources, access to business networks and an educational platform.

Taiw o Shonekan, the head customer experience and value management, First Bank of Nigeria Limited said the partnership with Microsoft enables the bank to deliver a portfolio of non-financial solutions to its SME customers.

“We have over the last 125 years supported SMEs in building their business, whilst contributing to the national economy. This partnership is a landmark step in our quest to leverage the influence of technology in businesses, especially in today’s digital age,” she said.

According to Shonekan, with the partnership, First Bank customers can buy Microsoft products at discounted rates in local currency (Naira), as this seamlessly aids technology adoption, skills and capacity development among SMEs in Nigeria.

Amrote Abdella, region-

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

al director of the Microsoft 4Afrika initiative said Microsoft 4Afrika is forging par tnerships across the c o n t i n e n t , w i t h s e v e ra l players in the SME ecosystem, from banks to telcos, to enhance SME offerings and reach a broader audience.

“For SMEs, integrating technology into their operations is no longer an option, but a necessity for future growth and success.

We’re looking forward to engaging in discussions that explore how technology can extend reach to new markets and improve productivity, which results in better customer service, more competitive offerings and the ability to act with agility. “ Te c h n o l o g y a n d t h e relevant digital skills today play such an integral role in business success. We’re working with organisations to extend this support to as many SMEs as possible, ensuring not only their success, but the growth and competiveness of our continent in an increasingly digital world,” said Abdella.

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FUNDING

Wikipedia plans articles in Nigerian language, 9 others with $3.1m Google funding FRANK ELEANYA

W

ikimedia the parent company of Wikipedia says it will be looking to provide editors with resources and insights to create articles across ten languages in Nigeria, Indonesia, India, Mexico, and the Middle East and North Africa (MENA) region.

The company announced on Tuesday at the ongoing World Economic Forum that it has secured a $3.1 million funding from Google. $1.1 million goes to Wikimedia Foundation to help strengthen and support Wikipedia and its mission for generations to come while $2 million goes to the Wikimedia Endowment. The endowment provides dedicated funding to realise the power and promise of Wikipedia and its sister projects.

The two companies – Wikimedia and Google - will also collaborate on a set of initiatives to support a shared commitment of making information more accessible to more people around the world.

Both companies have been in a similar partnership in 2017 when Project

Tiger was launched, an initiative to support editors in expanding and improving articles in underrepresented languages on Wikipedia.

That partnership saw Google providing Chromebooks and internet access to support volunteer editors with content creation as well as insights into popular search topics on Google for which no or limited local language content exists on Wikipedia.

Wikimedia’s Chief Advancement Officer, Lisa Gruwell disclosed that following positive feedbacks, Project Tiger will now be rebranded into what it calls GLOW program, from Growing Local Language Content on Wikipedia. To create the ten new languages, the company will work with Wikimedia affiliates and volunteers in India, Indonesia, Mexico, the Middle East and North Africa (MENA), and Nigeria.

B en G omes, G oogle’s SVP of Search, News and Assistant, and Jacqueline Fuller, President of Google. org revealed that much of the funding was contributed

by Google employees.

“As the next billion people come online, it’s critical that the content on the web

reflect the diversity of its users,” Gomes and Fuller wrote in a blog post, “Currently, he web is lacking content in many local languages and thus restricts the information that people can access.”

By collaborating on programs such as GLOW, the Google employees said they hope to bridge the gap and empower local editors to ser ve their communities with relevant content in their native languages.

Earlier in January Wikimedia unveiled an update to Wikipedia’s content translation tool which has been used to translate more than 400,000 articles across different language versions of Wikipedia. Gruwell explained that the tool uses automated translation to produce an initial translation of Wikipedia article editors can then review, edit, and improve in another language.

“Now, the tool offers Google Translate as one of the machine translation options,” Gruwell said. “Integrating Google Translate into the content translation tool on Wikipedia has been long-requested by volunteer editor communities.”

L-R: Jide Coker, Duty Office Coordinator, Lagos Motor Boat Club; Babajide Balogun, Secretary, Lagos Motor Boat Club; Sunny Messiah, Comedian and Master of Ceremonies; Dapo Majekodunmi, Commodore, Lagos Motor Boat Club; Ladi Ani-Mumuney, Vice Commodore, Lagos Motor Boat Club; Ete Harriman Ayida, Lady Member, Lagos Motor Boat Club; and Olayinka Atere, Petrol Member, Lagos Motor Boat Club, during the annual end of the year party of the Lagos Motor Boat Club (LMBC), that held recently in Ikoyi, Lagos.

L-R:Andrew Olotu, chairman, SPE Nigeria Council Board of Trustees; Nicolas Terraz, MD, Total E&P Nigeria Limited; Elike Mawuli, engineering manager, Tullow Ghana Limited; Udom Inoyo, vice chairman, Exxon Mobil Producing Nigeria and ESSO Exploration and Production Nigeria Limited, and Mason Oghenejobo, Strategy and Portfolio Advisor, Seplat Petroleum, during a panel session at the 3rd West African International Petroleum Exhibition and Conference (WAIPEC), in Lagos.

COMPANY RELEASE

JC International records zero Lost Time Incident in 2018

J

C International, a leading inspection, training and fabric maintenance services provider, recorded zero Lost Time Incident (LTI) in 2018.

In a statement, the company described the achievement as a pointer to its strong commitment towards ensuring a safer work environment for personnel and assets.

Speaking on the milestone,Peter Nkemdirim, health, safety and environment manager, JC International, commended the employees for working safely in 2018, while urging them to repeat the feat in 2019.

“It is a huge accomplishment for us as employees; and a direct reflection of the value our company places on safety in operational activities”, he said. He further explained that the achievement shown the company’s dedication to its safety objective tagged: Goal Zero.

“We were able to attain zero lost time record in 2018 due to Management’s commitment to a safer work environment for employees and clients through anticipation of risks, accident prevention programmes, compliance to safety laws and regulations as well as its long-standing

safety awareness initiatives for staff and other stakeholders.”

Nkemdirim advised other organisations to adopt an inclusive Occupational Safety and Health (OSH) framework to boost employees’ participation and contributions towards attaining a safer workplace. He also urged employees of other organisations to see safety as their core individual responsibilities and desist from taking shortcuts, while pointing out that safety requires total avoidance of shortcuts but needs strict adherence to all safety guidelines.

L-R: Babatunde Fowler, chairman, FIRS with Zainab Ahmed, minister of finance, during the official launch and presentation of the Strategic Revenue Growth Initiatives (SRGI) document in Abuja.

Pic by Tunde Adeniyi

BANKS

Open Banking Nigeria becomes a member of the Open Data Institute

O

pen Banking Nigeria is officially a member of the Open Data Institute (ODI) community. In a welcome letter sent by the ODI Membership Coordinator, Julie McMahon on behalf of the CEO Jeni Tennison, ODI is aimed at “building a strong, fair and sustainable data economy by helping businesses and governments get data to people who need it”.

Open Data Institute is an independent, non-profit, nonpartisan organisation founded by

Professor Sir Nigel Shadbolt and Professor Sir Tim Berners-Lee five years ago. It was launched to “catalyse an open data economy by bringing together individuals, businesses and governments from all over the world”.

Since inception, the Open Data Institute has reached millions around the world and trained thousands in new data skills, supported hundreds of startups and unlocked over £66 million in value.

Open Banking Nigeria,

founded by fintech and banking veterans, is a non-profit and non-partisan industry group dedicated to the adoption of an open API standard within the Nigerian financial industry.

Since inception, it has attracted a number of top fintechs; It recently announced a partnership with PwC Nigeria, Heritage Bank, and Global Accelerex to further drive the implementation of Open Banking API standards for the transformation of financial services in Nigeria.

L - R: Oliver Gierlichs, senior bayer representative, and chief financial officer - West & Central Africa; Ademola Abass, special adviser to the governor of Lagos State on overseas affairs and investment; Mohammed Jimoh, MD, Bayer Middle Africa Limited and head of marketing & sales PH/CH- Nigeria; Stefan Traumann, German consul general, Lagos, at the Official launch of Bayer Ultra-Modern Office in Lagos recently.

Friday 25 January 2019

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www.aimhigherafrica.org

The Vision is for an appointed time - Omoyemi Akerele

M

y name is Omoyemi Akerele. I am the Executive Director and founder of the Lagos Fashion and Design Week and Style House Files.

Style House Files is a creative development agency and our primary focus is to work and ensure that the business of fashion, and we are talking about old elements beyond the creative aspect of fashion, is firmly established in Nigeria and of course in other parts of Africa.

So we work on initiatives like Lagos Fashion and Design Week, Fashion Focus, Fashion Business Series.

MY LIGHTBULB MOMENT My light bulb moment happened sitting in our home with my husband and of course for someone who is married to a creative person, he’s used to me having many light bulb moments. But he listened as always because I said listen I think the solution is not going back to school, the solution is trying to create change within the sector so that I can grow with it as well because I felt stifled at the time and I thought there was nothing happening and for something to happen, all the people have to come in and create or do things to sort of help grow the industry. So he said OK, what do you want to do and I said I think it needs to be fashion week but done differently. It cannot be with more of a focus on what happens. And that was the beginning. So how do you want to do that because how do you

have a fashion show that is not about the fashion show. So it became the HOW, the WHY, the WHO you want to work with and the most important question is how do you intend to find it? But it was a good decision and I mean sitting here today and thinking back at it and seeing what we have done and how we have been able to impact the sector not just within Nigeria, even Africa and contributed to putting Africa on The global fashion map.

THE BIG MISTAKE The biggest mistake I have made in business has been my desire or my innate ability to want to control everything that happens around me.

So I am very bad delegating and invariably what that does is it limits the number of projects you can work on at a particular time. If you want to do so many things at the same time, you

will want to be able to do everything or micro manage people and it’s not a very healthy thing and I will say that it probably slows things down. Feeding off from the back of that has been the desire to sort of expand the business within a perfect environment and that means we have always wanted to work in retail but we have always said we will not go into retail if manufacturing is not certain, which manufacturing in itself is a huge project, so who says that. And since then I know countless businesses that I have started and they are successful as well either doing E commerce or they open their own store or they are doing amazing well. So it’s important you just start and stop waiting for a perfect environment, or a perfect condition, or a perfect situation before you start.

BREAKING BOUNDARIES Our breaking boundary moments

will be probably the work we have done with the ‘young’. I mean they are no longer young. If you look at the designers like Orange Culture, if you look at brands like Nina and some of the designers that have come through the young designer of the year project of Fashion Focus, who have actually been able to take their brands from that sort of ‘oh we are young’ but being able to make a definitive statement.

We had this dream to be able to show the world or let people have an idea of what fashion in Nigeria looks like and we thought the pop up shop will be ideal, so we approached Selfridges a departmental store in the UK to work with us on a pop up featuring designers from Nigeria. That was also pretty significant. Significant because it showed not just for us, it showed Nigerian designers and it is possible to see your work nestled or sitting side by side with other international brands from Victoria Beckham to even emerging brands like Peter Pilotto to designers from all over the world.

MY MANTRA My mantra in life primarily because you know we are still work in progress, we are still on a journey so we are not even halfway. I say this all the time.

It’s usually my parting quotes and it’s from the Bible, ‘the vision is for an appointed time.’ The combination of everything you are, of the work you are supposed to do, the contributions to society is for an appointed time but sometimes we fret a lot thinking is this how we are supposed to do it, is it now, it has to be now. So write it down.

Whatever that vision is write it down.

Make it simple so that whoever comes across it reads it and understands it and that though it tarries it will surely come. It will come in the fullest manifestation of time at the right time. So if it’s not happening now it means it’s not yet time. There are so much more.

Our dreams are larger than who we are. My dreams are larger than life and sometimes you just have to hold yourself and then try to contain it and if things don’t work this way, don’t get stuck in that way. Just move, move a little bit because you know what it is.

About Aim Higher Africa Ignite Your Passion The Aim Higher Africa Ignite Your Passion Series is an edutainment web-program under the Aim Higher non-profit organization. This series shines a light on millennial entrepreneurial leaders in different industries who have overcome economic challenges and built businesses that are transforming their communities as well as making global economic impact. With the vision of bridging the gap between poverty and prosperity, we hope that through this series, aspiring entrepreneurs will be able to identify their passion and turn them into business ventures that will in turn enrich their communities by creating employment opportunities.

Omoyemi Akerele is the founder of Lagos Fashion and Design Week the largest fashion event on the continent celebrating contemporary African fashion.

Friday 25 January 2019

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Nigeria’s manufacturing sector on path of sustainable growth says MAN 22

Get a wrong day-old chick; put an end to your business – Smallholder chicken farmer 20

No company is too big to fail

21

Scooping wealth from bee hiving 20

Non-Oil Business Snippets 2018 Siaka Momoh

I

n 2018, in tune with our mandate of promoting diversification of Nigeria’s monoculture economy, we reported and discussed non-oil business. We bring you in this our first edition for the New Year, snippets of the lot that we robustly touched on. We trust you will find these stories exciting.

EEG Fuss In the course of the year 2018, we reported “Exporters are being pushed into greater financial distress with their banks and financiers as a result of nonpayment of N350 billion EEG claims.”

We said “The Federal Government Export Expansion (EEG) scheme has been engulfed in a fuss since its creation. It is a fine scheme designed to enhance the fortune of the Nigerian non-oil export and by extension non-oil exporters; but it has been a victim of abuse and practical challenges.

“The scheme has been suspended more than a dozen times directly or indirectly, since it was created. The good news is that the scheme has been reviewed. The Federal Government, vide the Nigerian Export Promotion Council (NEPC), issued the revised guidelines for operation of the Export Expansion Grant scheme about the close of 2017.

This move follows the decision of the government to reintroduce the Scheme, which had been suspended since 2013.”

EEG is a post-shipment export incentive scheme that is designed to encourage non-oil exporters whose minimum annual export turnover is N5 million. It is a scheme designed to assist exporters to expand their volume and value of non-oil exports, diversify export markets and make them more competitive in international markets. The EEG was originally introduced by the FGN in 1999 pursuant to the Export (Incentives and Miscellaneous Provisions) Act of 1992.

Trade Matters Nigeria, India to Strengthen Bilateral Trade As Volume of Trade Hit $20bn We reported that Nigeria and India announced plans to strengthen bilateral trade, noting that the trade between both countries has been robust, enduring and profitable over the past 60 years. We noted that volume of trade between the two countries hit $20 billion.

Palm Oil “Nigeria oil palm industry became the beautiful

bride for big investors …As Indonesian’s Gama Plantation, Malaysian’s Sime Darby and Singapore’s Olam plan to move in to invest in Nigeria’s oil palm industry.”

We reported that these big shots in the palm oil space “have strong plans to move in – all three gunning for Cross River State.”

Nigerian leather We recalled that five years ago, courtesy of a summit on the sector by the Leather and Allied Products Manufacturing Association of Nigeria (LAPAN) with support from ENABLE and GEMS, the poor state of this vital industry was revealed. We looked at the report on the summit then( by this writer), which held at the Transcorp Hilton hotel on September 16 and 17, 2013, in his segment ‘The Realsectornow’, in Vanguard, went to town to find out how much progress had been made five years on. We spoke to Bello Abba Yakasai, a principal actor in the September 2013 summit and some related federal ministries sources.

How much of these issues would he say have been resolved to date? For him, the most important issue is the lack of policy. He explained that at the moment, “policy is in draft form with the consent of four Ministries (including, Trade and investment, Agriculture, Environment and Science and Technology).”

For him, “there is still little change from then as the only change note is the review of EEG (Export Expansion Grant) which includes leather products”.

Said Yakasai: “From my point of view, not much has changed. There is still the un-curtailed importation of finished leather goods from the Far East and Europe, total export of Nigeria finished leather, little budgetary allocation and the new policy is yet to be presented to the NEC.”

Poor road infrastructure According to our report, “With the completion of the Apapa Wharf concrete pavement road, and the recent flagging-off of the construction of ApapaOshodi-Oworonshoki-Ojota (concrete) Motorway, it is victory for the promoters of adoption of cement pavement for the construction of Nigerian roads. It is victory as well for players in the Nigerian business space – transporters and other business persons.

The N73 billion motorway, will start from Creek Road (Apapa) through Liverpool to Tincan and terminate at the toll gate near Oworonshoki and will be delivered within two years”.

Coconut water’s big profile We reported that this palm tree family product “can compete in the world’s US$10 billion market for sports beverages”.

According to Coconut Research Centre, coconut

Advertise here

provides a nutritious source of meat, juice, milk, and oil that has fed and nourished populations around the world for generations.

Coconut water contains the following among many other attributes: • Organic compounds possessing healthy growth, promoting properties than have been known to help; • Keeps body cool at the proper temperature; • Orally rehydrates your body, it is an all natural isotonic beverage; • Raises metabolism; • Promotes weight loss; • Cleanses digestive system; Nigerian woods’ double mess We reported that “Nigeria is reported to be number one destroyer of primary forests in the world. It is said

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Friday 25 January 2019

Enterprise People

Get a wrong day-old chick; put an end to your business – Smallholder chicken farmer

K

ola Oyedeji, president Satin Farms and Agricultural Services runs a poultry farm based in Aiyedoto Farm Settlement, Ojo (popularly known as Agric) off Lagos Badagry Expressway. SIAKA spoke to him on challenges faced by smallholder chicken farmers.

For him, there are many challenges. He laments supply of dayold chicks is not controlled. “We get second best from the market. The regulating agencies are not doing their job. The producers of day oil chicks are so smart that you can never beat them.”

He argues that the success of the poultry farm starts from day-oil chicks: “If you get a wrong day-old chick, that is the end of your business.

The problem will not manifest in the first or second week. It may manifest when they are about to lay.”

Notable names in the industry, according to him, “don’t monitor the disposal of rejects”. He says they push it to their supervisors for burial “but these supervisors make good money from this by pushing the rejects into the market”.

Support from government “None” he says emphatically.

“What we get is extortion. All we hear from all levels of government is noise.

On loans to farmers, the banks are

chicks start selling at N90 they will tell you they cannot come down...”

Sources of protein Oyedeji argues that of all sources of protein, “egg is still the cheapest”. So he advises government to reconstitute the commodity boards. Commodity boards, he says, can come into the market and mop up eggs from the market during excess supply period and push same into the market at dry periods. And same goes for inputs too, he says.

Kola Oyedeji

not friendly. Infrastructure is poor; inputs poor too. If the environment is friendly, if farmers are rewarded like the politicians are, farmers will fly high.”

He draws attention to the Aiyedoto Farm Settlement: “Government gave us roads without drainage in this agric settlement. This is not good enough. We want inputs. We are not saying they should give us free of charge. If input is N200, government should subsidize it by 50 per cent. If this is done, illegalities will be phased out and everybody will want to be a farmer.”

CBN Anchor Borrowers Programme

He tore this into shreds: “It is a foster relationship. Nigeria is not matured for such programme. Why do I say so?

From the input supply level, price is inflated. They do this because they do not know whether the government is sincere or not. The input suppliers look for their own market. So at the end of the day, they must play safe. At the beginning of the programme, they inflate price.

“So if they are not selling at all, they know they have made money.

The inputs are the day oil chicks, the vaccines, and the drugs. If the day old chick is N120 in the market, they can supply you at N150 because with the MOU, we agreed at N150 flat. There are up and down periods. So if day old

Self sufficiency in meat production Oyedeji says, “We can feed ourselves. But people still smuggle in chicken because it is cheaper to do so. Cost of production here in Nigeria is high. Power for instance is expensive. Solar is an alternative but we, as smallholder farmers cannot afford it.

We expect government to provide this and we will pay back at subsidized rate. After all, the U.S. and a number of other industrialized nations, subsidize their farmers.”

Modern farm estate He calls on the Lagos State government to build a modern farm estate for farmers somewhere else outside the farm estate’s present site: “What we have here is outdated. We expect government should build a modern

farm estate somewhere else and relocate us.”

The size of the Aiyedoto Farm Estate is about 20 acres. It is about 70 per cent occupied. Government owns the land, the farmers own the pen. They pay royalty to government annually. Kola Oyedeji writes off the suggestion by this writer that government should modernize the Aiyedoto Farm Estate instead of building a new one outright. For him, “If government sets out to modernize our present site, we will be out of business. ” Price of birds He explains: “Price of birds is not friendly now because production materials are high. Feeds prices are so high now unlike what we used to have some three – five years ago.

Cost of conveying feeds from where they are produced in Kano up north also makes them expensive. Average price now for spent layers is N1700 from the middlemen and N2000 for consumers. For broilers, you can get as high as N5000.

“Turkey is luxury, it is not for everybody. Broilers are meatier than the cocks and local ones. At four months, you can eat a foreign turkey. But for ours, before you can enjoy a 10kg turkey it must be between nine months to one year old. So the foreign turkey is about N25, 000 (10 or 15 kg) whilst local turkey sells for N18, 000.”

Investment Opportunities

Scooping wealth from bee hiving DON ABRAHAM

B

ee-keeping, processing and exporting is a very exciting and financially rewarding business. This earns the investor good foreign exchange and joy of experiencing nature at work.

Honey and its by-products’ uses Honey has many uses in herbal and orthodox preparations and as a whole food because of its nutritive values. A review of the biochemical composition of honey reveals that it is loaded with vitamins A, B, B2, C, proteins, complex sugars, essential minerals such as iron, calcium, copper, magnesium, phosphorus, potassium, sodium etc. It is a tonic that gives instant energy and stamina and that’s why athletes, sportsmen and sports women use it regularly and generously.

HONEY MARKET: Honey is a huge foreign exchange earner and there is a large, expanding and sustainable market for it and its by-products. Its very many uses, wholeness as food, nutritional advantages and aids in herbal medicine and pharmaceutical industry make honey one of, if not the hottest, sought-after food products in both the local and international markets. With over 37 industrial, agricultural and medicinal uses the market for honey cannot be otherwise.

Presently the price of a metric ton of

processed honey commands very high price in the international market.

Bee keeping and processing equipment The needed equipment are man– made hives, smoker and torch, bee hat and veil, hive tools, bee suit, gloves, bee brushes, ankle and wrist straps, plastic containers, centrifugal machine, quality control equipment, etc. Each of these is obtainable locally. If one so wishes, he can import a complete honey processing plant. The

writer can assist in this regard.

Honey production processes Bee processing entails essentially the receipt of honey from one’s farm or the supplied honey from various sources, checking its quality and sorting out the raw honey, storage, blending, filtration, pasteurisation, and filling into containers, labelling and storage ready for sale to the customers. You don’t have to own a bee farm to be involved in bee processing and sales.

You can buy raw honey from farmers,

process, sell and make your money but you should note that because this is a food product, good quality control must be in place and that registration is required is required to be made with the relevant regulatory authorities.

So if you successfully go through the whole exercise, you can be sure to earn unstoppable hard currency in honey in the international market from your business.

Farm location If you desire to incorporate a bee farm

in this project, you can locate it in orchards, nearby farms or bushes (especially ones that have twisting plants), plantations, (cocoa, citrus, palm, kola nut, cassava etc.) and river banks.

Start–up cost It is unreasonable and not helpful to hazard a guess; the likely cost to go into the business will depend on a lot of considerations few of which include the farm location, the size of it, the scope of your intended business, the target market etc. For this cost to the established it is necessary for you to have prepared for you by an expert a comprehensive, realistic and current feasibility report which should include the details of all estimated cost inputs, cash flow, profit and loss account and balance sheet projections and the assumptions underlying them.

Copies of “The Comprehensive Industrial Profile On Bee Hiving, Processing And Exporting” as well as ‘How To Make Hot Money From Honey” giving the addresses of overseas importers, the export regulatory requirements of the importing countries, the secrets one needs to possess to have a hitch-free export (every business has its secrets) etc will be yours for the asking.

DON ABRAHAM‘s contact: Tel:0803-725-1974.

Friday 25 January 2019

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Intelligence

I

No company is too big to fail D

aily Times was, in years past, Nigeria’s newspaper of note. When parents wanted to access the news for the day, they asked their wards to buy them Daily Times even when what they wanted was Tribune, Sketch or New Nigeria. As big and popular as the newspaper was then, it fell like a pack of cards. To date, this Nigeria’s number one newspaper is a shadow of its old self.

Concord newspaper group was a household name. It even ventured into community newspapering but died with the death of the hero of June 12 Chief M.K.O Abiola.

We also had the likes of Jamarkani Transport, Oni & Sons (a construction company), and a chain of retail outlets like Kingsway Stores, UTC, Leventis Stores etc. They all died.

Big corporates in industrialised countries have had their own share of collapses too. We have heard about troubled Lehman Brothers, Enron, AIG, Royal Bank of Scotland Group. We have reports of ABC Learning Centres (childcare business) whose founder Eddy Groves had a pretty good little business going in Australia – profitable, fast growing and underpinned by government childcare subsidies.

But his forays into the US and British markets distracted Groves from the day-to-day running of the Australian business, and without his scrutiny the low-margin operations started losing money. Eddy’s ambition of creating a global childcare

giant was his undoing – had he stayed focused, ABC’s fate could have been very different.

Allco Finance Group, like fellow fallen finance groups such as MFS, Allco’s problem was simple – too much debt. Add this to a business model that was insanely complex and you have a recipe for disaster.

Only recently, Reuters has this troubling report on Peabody Energy Corp: Leading global coal producer Peabody Energy Corp filed for U.S. bankruptcy protection on Wednesday after a sharp drop in coal prices left it unable to service debt of $10.1 billion, much of it incurred for an expansion into Australia.

The Chapter 11 bankruptcy filing from Peabody, the world’s biggest private-sector coal producer, ranks among the largest in the commodities sector since energy and metal prices began to fall in mid-2014 as once fast-growing markets including China and Brazil started to slow.

Unlike most large corporate bankruptcies, Peabody’s filing did not sketch out a plan for cutting debt, although it said it expected its mines to continue to operate as usual.

Peabody estimated its assets at $11.0 billion and liabilities at $10.1 billion as of the end of 2015, according to court documents.

The St. Louis-based company said its planned sale of mines in New Mexico and Colorado had fallen through and that its Australian operations were excluded from the bankruptcy filing.

Peabody has agreed to $800 million in debtor-in-possession financing from both secured and unsecured creditors, subject to court approval, including a $500 million term loan, a $200 million bonding accommodation facility for cleanup costs and a letter of credit worth $100 million, it said.

Large coal companies like Peabody have been allowed to leave a share of future mine cleanup without collateral through a programme called “self bonding” that has come under federal scrutiny following financial distress in the coal sector.

Shares of Peabody, which closed at $2.07 on Tuesday, were halted on Wednesday.

“This process enables us to strengthen liquidity and reduce debt, build upon the significant operational achievements we’ve made in recent years and lay the foundation for long-term stability and success in the future,” Peabody Chief Executive Officer Glenn Kellow said in a statement.

Ill-timed acquisition Debt troubles for Peabody date to its $5.1 billion leveraged buyout of Macarthur Coal in 2011, just when prices peaked for the metallurgical coal that the Australian company supplies to Asian steel mills.

As demand for metallurgical coal fell, particularly in China, Peabody’s financial woes intensified. The company took a $700 million writedown on its Australian metallurgical coal assets last year.

This is a lesson for businesses on our shores – small and big.

BUSINESS DAY

21

Editor’s Note

t is a new year. Thank God we made it. Non-Oil Digest had a mouthful this past year. We feel we need to remind ourselves of some of the stories we published in the year 2018.

In our cover, we remind you of our story titled ‘EEG Fuss’ in which we told you about how exporters were being pushed into greater financial distress with their banks and financiers as a result of nonpayment of N350 billion EEG claims.

We also have stories on Nigerian poor road infrastructure, Nigerian troubled leather and the nation’s wood double mess, and more. They all remain evergreen.

Our encounter with Kola Oyedeji, a smallholder chicken farmer in Lagos reveals, once again, the challenges in the poultry business space. Take this from him: ‘Get a wrong day-old chick and put an end to your business.

In Investment Opportunities, Don Abraham, one of our guest writers, tells you how you can make good money from bee farming.

Our Intelligence segment lets you know that no company is too big to fail. Any company – big or small can fail. Yes, they can. We

Siaka Momoh

have heard about troubled Lehman Brothers, Enron, AIG, Royal Bank of Scotland Group. And more. Flip on to Intelligence for the full piece.

Enterprise Strokes brings you a review of the book ‘How to Become a Successful Export/ Import Agent’ authored by Obiora Madu. Players in the export/ import space will find this prime resource useful.

You are welcome on board.

For advert placements, sponsorship, reactions editorial contributions, please contact SIAKA through siakamomoh@yahoo.com; 2348061396410; 23408023033988.

Non-Oil Business Snippets...

Continued from page 19 to have joined the likes of countries such as Indonesia and North Korea known for getting rid of their green forest; second, illegal woods’ export from Nigeria to China, Vietnam, Portland, Turkey and Italy has hit a disturbing N122 billion level.”

Need for a tuber agenda We reported also that “Potato – Irish and sweet should not be our only beautiful bride, cassava and yam should be too.

All four are the most important food crops for direct human consumption in Africa.

“Potato production is currently the focus of government and other agribusiness stakeholders. The Federal Government approved a loan facility of N3.38 billion for Plateau Government to boost the production of Irish potatoes in the state, according to the Minister of Finance, Mrs. Kemi Adeosun. She said Plateau was expected to contribute N595 million of the amount as its counterpart funding. The loan is to support the potato value chain in Plateau State.

Plateau accounts for 95 per cent of Nigeria’s potato production and from Plateau, potatoes are actually exported to Ghana, Niger, Chad and other African countries.”

We added “This is AfDB fund, and with this, the bank has come up with a comprehensive programme that will affect over 100,000 families. It is expected to create 60,000 jobs in a potato value chain, from processing, storage, replacement of current inputs and indeed, export, said Adeosun. The terms of the loan are 1% cent per annum interest rate and it has 25 years repayment period with five years moratorium.”

Other tubers

We argued, “Potato – Irish and sweet, should not be our only beautiful bride.

Cassava and yam should trend too.

All four are the most important food crops for direct human consumption in Africa, according to Nteranya Sanginga of IITA in his paper titled ‘Root and Tuber Crops (Cassava, Yam, Potato and Sweet Potato)’ which he presented at a forum tagged ‘Feeding Africa’ in Dakar.

Global sesame seeds demand to explode We reported, “This is good news for Nigeria as Olam is currently doubling the capacity of its processing plants in Lagos and Samsun, Turkey.’

Olam is banking on big growth in the global sesame seed market which is already worth USD8 billion.

Retail business Then we published this interview with Tomi Okusipe, CEO Sekoya Limited (a pharmaceutical business), on retail business in Nigeria, courtesy of EDC/ Pan Atlantic University. For him, “We are going to see people that have current stores opening more stores in 2018”.

Factors responsible for growth Said he: “One out of every African is a Nigerian. Responsible for this is predictability. Now you find that you can put down a particular amount of foreign exchange (forex) and bring in a specified quantity of goods. You can say you can (plus or minus 5 per cent on this forex rate that you have now), bring in a particular quantity of goods.

So that gives you confidence – this allows people to import more into their stores – it allows them to be innovative and creative in the items that they stock.”

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Friday 25 January 2019

Manufacturing

Nigeria’s manufacturing sector on path of sustainable growth says MAN ‘It is worthy of note, that for two consecutive months now, no sect oral group recorded below 50 points benchmark which shows a reasonable level of improvement in the manufacturing sector performance and a pointer to a good outing in the last quarter of 2018.’

Siaka MOMOH

Treading the global trade turf

N

igeria’s manufacturing sector is on the path of sustainable growth, the Manufacturers Association of Nigeria (MAN) has said.

MAN, in its PMI report for the last two months of 2018, said going by all indices used in measuring Purchasing Managers’ Index the sector recorded improved performance. This according to MAN “is a development that indicates that the manufacturing sector is on the path of sustainable growth”. “ Undoubtedly, the improved economic spending that characterizes the festive period and increasing tempo of patronage of Made in Nigeria product have spurred the performance of the sector in December,” it said.

According to MAN, “The report revealed improved performances across the sect oral groups save for Electrical & Electronics sect oral group. Although the performance of Electrical & Electronics Sectoral Group recorded above 50 points benchmark, its basis point contracted by 6.7 points owing mainly to the menace of smuggling and counterfeiting that has continually plagued its performance.”

It argued “Government needs to support operators in the Group with policies that will discourage unbridled inflow of used and smuggled Electrical & Electronics products to the country.”

The report stated more: “The Textile Apparel & Footwear Sectoral Group (TAFSG) recorded the most significant improvement with a positive change of 13.9 points. The performance of this Group in recent times could be attributed to a number of factors, which include fiscal support, improved local patron-

T

age, and incentives for cotton growers, increasing access to development finance windows, and the recent approved concessional gas pricing mechanism.

“All of these, cumulatively aided productivity of TAFSG. In performance ranking, the TAFSG was followed closely by Motor Vehicle & Misc. Assembly Group (MVMAG) with 12.5 points increment.

This is however surprising because in real terms, the MVMAG was reported to have recorded increase in basis points without a virile auto component allied industry, with the prevailing low patronage of locally assembled automobiles and the obvious abuse of some provisions of the Automotive Policy by some portfolio investors, which indirectly aids importation of fully assembled automobiles to the detriment of locally assembled vehicles. The 6Ps sect oral Group also recorded an increase of 9.1 points even though it is still high import dependent for vital raw materials.”

MAN argued that in broad terms, the report revealed relative improvement

in manufacturing sector performance, attributable to increasing support for manufacturing, fairly improved environment and the efficacy of the prevailing economic policies aimed at stabilizing the economy.

For MAN, “It is worthy of note, that for two consecutive months now, no sect oral group recorded below 50 points benchmark which shows a reasonable level of improvement in the manufacturing sector performance and a pointer to a good outing in the last quarter of 2018.”

It however noted that “Notwithstanding, the manufacturing sector is still faced with myriad of challenges, ranging from infrastructure deficit, multiplicity of taxes, policy contradictions, exorbitant cost of clearing and transporting raw materials from the ports to factories, poor access to Lagos Ports, weak port infrastructure to increasing incidences of smuggling and counterfeiting. These challenges have jointly constrained the manufacturing sector from attaining its full growth potentials.”

Trade Matters

Infrastructural deficit, corruption, major industry setbacks – Stakeholders

‘T

he real challenge in Nigeria is the issue of infrastructure. Our ports were built several years ago, not for the tonnes or capacity they are receiving now. Also, access roads to the ports are bad.’

A cross-section of maritime stakeholders, recently, in Abuja, identified infrastructure deficit and non-enforcement of maritime regulations as two major challenges hampering the sector’s development, Maritime First has reported.

They took the position during a dialogue organised by Integrity Organisation, a non-governmental organisation (NGO), and Action Aid Nigeria, with the theme ‘‘Nigerian Regulatory Framework in the Transport Sector.

In his speech at the forum, Dr Dakuku Peterside, Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA) had fingered infrastructure deficit, corruption and lack of enforcement were major parts of maritime challenges; and argued that while the maritime sector was guided by international Regulations, it was clear that the enforcement of such existing regulations was lacking.

“I spoke about the fact that the regulations are not the problem. It is perhaps the way we go about enforcing them.

However, regulations in the maritime sector are international in nature.

“So, they are literarily the same, apart from a few areas that are different. The challenge in Nigeria therefore is how we go about the enforcement of those regulations. But people can testify that there is a lot of improvement.

“The real challenge in Nigeria is the issue of infrastructure. Our ports were built several years ago, not for the tonnes or capacity they are receiving now. Also, access roads to the ports are bad.

“Most of the ports’ infrastructures are not in place to support growth. The ports are not growing but services or the goods coming into the ports have been growing over time.

“Another problem is the issue of corruption. Nigerians must be unanimous in the fight against corruption, and we shouldn’t be selective whenever we are talking about corruption,’’ he said.

Dr Ene Obi, the Country Director of Action Aid Nigeria, who posited that Nigeria must take the issues of transport regulations seriously, tasked stakeholders to obey the right regulations and be ready to fund the processes of such regulations.

“Nigeria’s debt profile is about 73 billion dollars. What are they spending it for? Who are they spending it on? What

is the government doing with that kind of debt profile?

“If it was spent on industries, it would have been better. When we sing `Arise O Compatriots’, those leaders that are corrupt, do they actually join in the singing, or take the national pledge?

“Are we taking our National Anthem seriously? Are we taking our patriotism seriously?’’ she asked.

Mr Hassan Bello, the Executive Secretary, Nigerian Shippers Council (NSC), agreed that one of the challenges in the ports was infrastructure deficit.

Bello, who was represented by Mrs Ifeoma Ezedema, NSC’s Director of Regulatory Service, said the Apapa Port was operating above the capacity it was initially designed for.

He, however, noted that there was the need for private investors to come into the industry, pointing out that government could not do it alone.

But despite the identified waves of corruption, infrastructural deficit and nonchalant attitude to regulatory compliance, the Presidential Enabling Business Environment Council (PEBEC) has announced a determination to pursue the goal of moving Nigeria into the top-100, on the 2020 World Bank Doing Business Index (DBI).

he global trade turf is one that one was privileged to tread shortly after school certificate courtesy of my late foster father, F.Omo Okotete. He ran Metropolitan Business Consultancy Services, a company which traded raw rubber locally and internationally. We had a rubber sheets processing factory in Ekreravwen, a village in Agbarho clan at the outskirts of Warri, on the way to Ughelli.

From this humble factory, we moved lorry loads of raw rubber in bales to Dunlop factory in Ikeja, Lagos and to the Sapele Port for onward shipment to the United Kingdom. We made journeys to London to hold meetings with our oversea buyers. Thus from those early days (the 1970s) of one’s life one had the rare privilege of knowing such terms as stuffing, or hatches of vessels which are stuffed with cargo, Bill of Lading, etc A second phase of this touch with international trade was between late 1990s and early 2000s in Lagos, where one had the privilege of managing a bonded commodity warehouse, one that was into commodity warehousing and freight forwarding. This was an advanced phase that involved the whole gamut of international trade – sales contract, export documentation, etc.

So when a document like How to Become A Successful Import/ Export Agent is given one for review, one naturally gets excited about it.

This document is a teaching manual of Multimix Export Academy. It is in four parts – A, B and C and an intimidating fourth part, appendices.

Part A is made up of seven chapters, B and C, one chapter each.

Part A deals with issues like the basics of the subject in question, starting export business, methods of payment in international trade, import-export practice, export financing, export marketing strategies and export/import business communication – eight chapters on the whole. Part B looks at the legal aspect of international trade, while C deals with negotiating agency agreement. Under basics you get informed about what you benefit for getting involved in international trade. You are told for instance that sales to external market fill-in for the seasonal nature in the demand of some products, that this demand is needed to keep factories in production (this of course is true because the South which we belong to has since the colonial era been structured to grow primary products for the metropolitan countries in the North); you are told, with international trade, you can achieve lower unit cost of products as a result

of expanded production; you are told companies that export in many countries have priority in foreign exchange allocation for machinery importation and raw materials.

This vital document touches on one very important basic of international trade – one that all players are very familiar with. Take this: “The dynamics of international trade demands additional expertise on the side of all operators: exporters, importers, bankers, shipping agents, warehouse managers, consultants and trade agents. In international trade, the overriding consideration is protection: while the importer wants to ensure that he receives goods that conform to his specification, the exporter wants to ensure that he receives goods supplied. The problem of protection, coupled with that of distance and various other problems call for a lot of hard work on the side of operators of import/export organisations.”

The author has touched on the sore point in the supply chain. Controls are needed to checkmate those who engage in unwholesome practices – those who stuff bags of cocoa with extraneous matters like granites, shafts, etc, produce inspectors who compromise on bad practices, transporters and ‘wharf rats who brazenly bring about leakages, etc.

Fine details on how you can start export are made available and you get all you need to know on methods of payment in international trade – another very important aspect of the trade since you are in the business to make money. Coming along with this is export financing. You are told export financing is a specialised financing comprising of various financing products. And the issue of cheap funding which the exporter loves to have is raised too. This is all we can take in part B. Part B is devoted to the legal aspect of international trade – law of contract – different types of contract, determination of existing contract, and validity of contract, all that goes with sales of good acts. It’s an entire package beautifully delivered.

In Part C is negotiating agency agreement, manifesting negotiating fangs clean and clear. Here you get tutored about the undeniable importance of negotiating skills. Your attention is drawn to Claud Cellich’s International Trade Centre, Canada’s key factors you must review and check before any negotiation. These include knowing your position, the other side’s position, competition and negotiating limits and developing strategies and tactics.

‘How to Become A Successful Import/Export Agent’ is a complete tool for exporters and would-be exporters.

Friday 25 January 2019

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BUSINESS DAY

23

Hotels From aviation feats, Ethiopian Airlines shines in hospitality business

Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734

OBINNA EMELIKE

W

hile Hilton Hotels & Resorts claims to have pioneered the airport hotel concept with the opening of the San Francisco Airport Hilton in 1959, Ethiopian Airlines is about setting a record outside its aviation feats with the opening of the Skylight Five Hotel, its first airport hotel that cost $USD65 million.

From leading the African aviation industry, and competing among global airlines, the East African carrier is showing how to become more sustainable in business with the diversification of its income through hospitality.

On January 28, 2019, Ethiopian Airlines will open its Skylight Five Hotel, the biggest airport hotel in Africa to the public. On that day, the airline will also join the ranks of global airlines that own hotel such as Pakistan International Airlines (PIA), the owner of Scribe in Paris and Roosevelt in New York, EasyJet, owners of Easy Hotels, AirAsia-Tune Hotels, Eva Air owners of Evergreen Laurel Hotels, KLM Royal Dutch Airlines and Malaysia Airlines, which previously owned Golden Tulip and Four Seasons Resort Langkawi respectively.

Of course, the hotel project is enormous with huge impact on its revenue and the Ethiopian economy at large. On offering are 373 guest rooms including 27

Top BusinessDay Partner Hotels

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

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

spacious suites, three restaurants – a Chinese restaurant, an Ethiopian restaurant and a European restaurant. Other facilities include; three bars – lobby bar, executive (rooftop) bar and Jazz club, a grand ballroom designed to accommodate 2,000 guests, five meeting rooms for 20-30 persons, health centre that provides spa, massage and gym services, an outdoor swimming pool with a pool bar and mini golf court in the premise.

Other recreational services such as a coffee shop, ticket office, and souvenir shop are also offered in the hotel. A large kitchen, laundry and cold room are ready service.

As well, the hotel, which is set on an expansive 42,000 square metres with a parking lot that can accommodate more than 500 cars, is just five minutes from the Bole Inter-

national Airport, Ethiopian Airlines’ main hub in Addis Ababa, Ethiopia.

Aside boosting the tourism sector, the hotel, which is expected to create over 400 direct and indirect jobs, will also welcome passengers during transits, stopovers or technical delays, according to the Ethiopian Airlines.

“We are striving to make Addis Ababa the main gateway to Africa. The hotel will play a significant role in boosting the tourism sector and making Addis Ababa a conference hub,” said Abraham Tesfaye, Ethiopian Airline’s head of Infrastructure Planning and Development.

But there are takeaways from the new hotel development, which other African airlines and corporations should emulate.

First, the time of delivery was impressive considering that construction began

in 2016 while the official opening is on January 28, 2019-just within three years.

But some airport hotels have been abandoned for over two decades in many airports across Africa.

Again, the funding was easy. It allowed the airline to breath while still carrying on with its operations. While Ethiopian Airlines provided 35 percent financing, EXIM Bank of China provided 65 percent of the project’s financing that cost $USD65 million.

Again, the airline is hoping to plough back the expected profit into another hospitality business in the nearest future as it prepares to launch the construction of a second 5-star hotel. The entry into service is scheduled for 2021 and will be built on an area of 22410 metres and the hotel will have 637 rooms on completion.

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja.

Tel: +234 9 4603900, +234 805 7522500

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

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

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

La Campagne boosts resort’s offerings with boat cruise

P

oised to cut down on the hours of travelling from the city to the Ikegun village, Ibeju Lekki – based La Campagne Tropicana Beach Resort and offer a new experience on Lagos waters, the management of the resort has introduced a boat cruise for guests visiting the resort.

This service has been long in coming and as it has become the tradition of the African themed resort, which is noted for its unique offerings, it has come with a bang and style, with added value services to it.

For guests, this is a welcome development as they no longer have to spend hours

and endure the pains of commuting to the resort from their different locations within the city.

The about one and a half hour boat ride takes off daily from Radisson Blu Hotel jetty, where ample safe and secured car park has been provided for guests using the service.

It is a pleasurable ride on Lagos waters in a luxury boat that has all the fittings of plush and luxury onboard, with such activities as music, Karaoke, comic art and dance as well as story telling by a well groomed guide.

For the management of La Campagne, there is no better way to begin a memorable exploit of the numerous offerings of the resort as time is taken in the course of the boat ride to introduce guests to the various offers awaiting them at the resort.

Safety and security are also top notch onboard as all necessary security precautions are taken to ensure a smooth ride while guests are treated to the best of the resort’s traditional hospitality and entertainment package.

Bookings are made ahead by guests as seats are said to be limited.

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

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

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

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

24

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Friday 25 January 2019

Niniola, an artiste to watch this year Stories by OBINNA EMELIKE

I

f you have b e e n following the selfstyled Afro house queen and her craft over the years, you be impressed with her rise to fame. Truly, Niniola Apata, a fast-rising female music act who stages as Niniola, is worth following this year because of her creative ingenuity and stage craft that have won her many fans.

Since 2013 when she finished as third runnerup on the sixth season of MTN Project Fame West Africa, she has been on the rise. The biology graduate who hails from Ekiti State is looking forward to becoming the biggest female artiste in Nigeria with her unique delivery and style that are away from ‘the regular’.

The singer and songwriter with a vocal range that can break glass, has created a music genre for herself called AfroHouse, which is a blend of Afro beat and house music.

Nowadays, where lots of young female artistes are reluctant to release albums for the fear of negative reviews, Niniola has gone beyond releasing her debut album to more releases because of her believe that reviews and criticism are necessary for self development and honing of one’s skills.

W h e n s h e re l e a s e d “Maradonna” and “Sicker”, her two-track album, it ruled the Nigerian airwaves and even beyond the shores of the country to excite fans in East Africa, Southern Africa, Europe and North America.

Not too long after the release of her two-track album, Niniola showed she knew her mettle with the release of a 13-track album titled ‘This is me’.

The album, which was released in November 2017 to critical acclaim and fan praises, opened with a melodic track, ’Moyo’ which means ‘rejoice or praise God’ in Yoruba and ends with a banging dancehall tune ‘Hold Me’ featuring the dancehall reggae king,

Niniola at the Human Radio concert in Lagos last year.

Patoranking. It also featured songs such as Saro, Magun among others.

Speaking on the title of her album, Niniola said, “‘This is me’ is as honest as it can be vocally. I do not just have my genre afro-house but I also have Rhythm and Blues and other genres. This is me telling you that I can jump on any beat as long as I feel good about the beat. So, this is just Niniola who loves to sing and dance.”

It was no surprise when Niniola made history in August 2018 with over 1million listeners on Spotify, making her the first female Nigerian artiste ever to cross the 1million mark.

To earn the accolade, Niniola’s ‘This is me’ recorded over 1.7 million streams on Spotify, the music streaming platform,

which measures artiste popularity with listenership. That singular feat has solidified Niniola’s music as staple among music lovers, crowning her with the coveted title of the most popular Nigerian female artiste.

As well, her efforts so far have been rewarded with some awards; from BET Awards, AFRIMA winner, South Africa Music Awards Nominee among others.

Of course, going down the memory lane, those who remembered her as the shy contestant who was always in glasses on the MTN Project Fame season 6 in 2013 are amazed at her transformation and proud of the huge milestone today.

But she is not moved by all these. She is focused on becoming the biggest

female artistes in Nigeria, West Africa and even Africa.

She is also working hard to achieve her towering ambitions with the knowledge that there is no easy way to stardom, especially now that the music scene is more competitive than ever.

In recognition of that, Niniola has been innovative with her style and appeal to fans. In 2018, the queen of Afro House thrilled fans with her headline concert tagged ‘The Human Radio Concert’.

The concert, a first of its kind, which held at the Landmark Centre, Victoria Island, Lagos, witnessed the best of Niniola on stage with enthralling performances that featured other artistes such as; Reminisce, Aramide, Mayorkun, Mr.

Real, Terry Apala, Slimcase, Immaculate, Johnny Drille,Teni, Oladips, Godwin Strings, Tyson Noir, and Soti.

As expected, the concert was like none before it, showcasing a powerful blend of music and stagecraft through a unique theme and special features inspired by the persona, charisma, and soul of Niniola, who is unarguably, one of Nigeria’s finest singer-songwriters and performers.

But the Afro house artiste was handy to explain the concept of The Human Radio.

“I was nicknamed “The Human Radio” while in secondary school. Then I had my own singing request show where I sang songs from various musicians as requested by my friends and classmates at the time to the amazement and cheering of listeners”, she explained.

In appreciative of her fans’ support, she assured them that more offerings are in the pipeline.

It is obvious she has just started, but she has through her fast-rising musical career, reinstated her ability, passion, and love for creating vocal art that is beyond both lingual and territorial differences, and yet embraces the one true global culture that music is.

She is up to something very exciting this year, so follow her to enjoy unique lyrics, best of dance, stage craft and enthralling performances.

Nollywood plans coproduction forum at FESPACO

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istor y will be made on Wednesday Februar y 27 , 2019 in Ouagadougou, Burkina Faso, when the Nigerian film industry otherwise known as Nollywood hosts the first ever African Coproduction Forum (ACF) at the world famous Pan African Film and Television Festival of Ouagadougou (FESPACO) .This will be the first time that Nollywood will be organising an event within the official programme of the festival.

Powered by Madu C. Chikwendu’s Thud Worldwide Consultants Ltd. ACF Is designed to preempt the proposed African Continen-

tal Free Trade Agreement by bringing together African filmmakers to commence their own partnerships and collaborations within the audio visual sector.

According to Chikwendu, filmmaker and the lead consultant at THUD,: “The impetus for this initiative is actually fuelled by three very important factors; the high quality of a reasonable number of Nollywood films, the availability of funding and the expansion of the distribution space through the increasing number of cinemas. This new situation has to be brought to the attention of other cinema professionals on the continent with a view

to creating interesting projects, initiating bilateral and multilateral agreements and expanding revenue by

clinching distribution deals across the continent.”

FESPACO will this year celebrate its golden jubilee

.It is the biggest, the most prestigious and the most important film festival on the African continent with

Peter Sedufia’s ‘Keteke’ makes Yennenga Gold Standard selection at FESPACO 2019

over 20,000 visitors. For African producers ,directors , government agencies and cinema professionals that are unable to attend FESPACO, THUD has created various windows of participation including ; Listing of filmmakers and their projects in the commemorative brochure , advert placements and inclusion of movie trailers, products and services in a free DVD that will be distributed free of charge to participants. FESPACO is the first in the series of what is basically Trade Delegations presented by Thud Worldwide Consultants Ltd under its “We Create ..truly Nigerian” banner .

Friday 25 January 2019

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Business Etiquette

Movie Review of GOD CALLING Linda Ochugbua

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a v i n g watched loads of movies this festive season, I felt it was time to try something different from the usual – action, romance etc.

This one turns out to be a Christian simple movie, with a deep story title God Calling. It had a few errors that didn’t quite sit well with many people, including myself.

Just a few minutes into the movie we could tell the major focus of the producer and the not-so-real images that were used all through to portray heaven, God and the afterlife. The movie is more of a religious movie,

teaching all about Gods plan for human lives, and how you must answer his call.

Most times we are drawn by the movie trailer, which was what got my attention in this movie, with the scenes displaying “God” calling on the lead actress’ (Zainab Balogun) mobile phone, plus her suicide attempt at the ever popular 3rd mainland bridge.

Anyway one other funny thought which ran through my mind during the movie, was how that 3rd mainland bridge had spanned out to becoming a suicide bridge every time, one became frustrated with life. Besides the joke and rumour to all as it may sound, the government needs to improve the security on that bridge to avoid future occurrences. I sincerely felt that it was nice for us to see Christians come together to shoot a nice movie, but I think a lot more could have been done to make it better, while I still commend them for a job well-done.

The movie was written and produced by BB Sasore who also produced

“Before 30” and “Banana Island Ghost” and has since improved as most people felt that he always brought spirituality and the heavenly angle to his movies.

If you were privileged to have seen “Banana Island Ghost” you will remember that it spoke about the afterlife, while this new one takes a new twist to discussing the aftermath of death. The first movie took the line of comedy, while the new one took a more serious approach, to teaching you how to respond to Gods call.

The movie was about a young couple who were so in love with each other, they had a daughter who was absolutely amazing.

They both loved her so much that the wife had to give up her job to con-

centrate on catering to the daughter full time. Little did they know that kids are a gift from God and only He could protect them.

Few minutes into the movie a tragedy occurs and the movie takes a whole new twist, “Karibi Fubara” decided to confide in his female colleague at work, who has always had emotional sentiment towards him. This left “Zainab Balogun” in a very devastating state; she also had issues of struggling with drugs, which couldn’t aid her having another child. Everything felt like her world was crumbling. Nkem Owoh portrayed a typical Nigerian Igbo father with a terrible ego and won’t talk to his son, despite the fact that he missed him or wanted him home.

RMD also played a very crucial but yet interesting role with his wife, she believed so much in God while he felt God had failed him.

I loved both Nkem Owohs and Onyeka Onwenu’s role in the movie and how they loved their son, despite him forgetting

them. Now, there were just some roles that didn’t add up - How could God in all his deity descend to calling on a mobile phone?, how could God be paddling a boat when he could just appear there and save her?, how did Zainab fall into such a deep water, get herself out with no physical help and still find herself home?, how fast and possible was it for RMD to just get his legs back?.

There were just so many little faults here and there that make it difficult to score this movie so high, despite the very good storyline of knowing your call.

Verdict: This movie gets a 6.5 out of my precious 10points.

It was a nice movie; they had very good production,

costumes were on point, location and the cast tried their best to deliver such a simple storyline in a beautiful way.

Even with all these, there was just something missing at the end; something that would have made it a perfect story.

Anyway, for the lovers of music and romance, you might want to try this out.

Movie Credit: Cast: Karibi Fubara, Demola Adedoyin, Nkem Owoh, Onyeka Owenu, Zainab Balogun, RichardMofe Damijo, Tina Mba, Bikiya Graham Douglas, Eku Edewor, Seun Ajayi, Shawn Faqua, Patrick Diabuah and many more Producer: BB Sasore Written by: BB Sasore Casting: 1hr 50mins Genre: Drama Ratings: 12 Feel free to review any movie of your choice in not more than 200 words and share via mail to linda@ businessdayonline.com and stand a chance to win a free movie ticket.

Linda Ochugbua @lindaochugbua

with Janet Adetu

Think Out of the Box Have you began to think out of the box? ow times c h a n g e, t h e new just keeps getting newer, we keep striving towards learning and understanding the latest technology. It is not surprising why they say the only thing that is constant in life is “Change”.

As these times are constantly changing, the environment is also becoming ever more challenging, now a case of survival of the fittest, all in a bid to overcome barriers, run the race of life and grow perpetually doing so. What is really going on around us today? The last few months has shown that our once upon a time comfort zone regarding the economy is now a victim of its own circumstance. Technology has taken over and is waiting for no one. it has stopped many in their tracks as activities have been stifled by the present condition. Personally, I feel that one positive side to these drastic changes is that many have had to think right out of the box, better still think right within the box for clever path1ways to success.

It would not surprise you t know that while some people are basking in negativity about this condition others are actually making the most of every situation. They are overlooking the limitations and opening up to bigger, bolder and better ways of doing things.

This act of stretching the territory is for me is the epitome of breaking bounds.

Being comfortable doing your everyday regular activities can be restrictive, monotonous and to a large extent unproductive. The state of your environment is not the only reason for going that extra mile and breaking boundaries. At times there is a ripple effect of success and playing leader in the industry. You may currently be enjoying the large market share in your economic sector this requires you constantly having to be innovative and create new possibilities all in the name of moving far and above your competition.

Breaking bounds and boundaries therefore is that act of stretching your capacity to lengths even you did not know you could reach.

What is your value proposition in life? Are you prepared to go the whole nine yards?

Can you go above and beyond your own imagination?

Quite a while back I was listening to a radio program which was an interview about experiencing and overcoming

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the economic challenges. I was totally engaged and very inspired when a listener called in to say how the adversity of the challenging times turned out to be a blessing for him and his family. He narrated how in the cause of a brief discussion with his wife over breakfast they decided to start a juice business selling to work collegues. The extra income he said has been amazing which might not have happened if they did not think out of the box. They both have daytime jobs while passive income is coming from that added initiative. It is time to really smash that box today to survive and thrive.

It is interesting how we are seeing the new millennial becoming so enterprising and serious risk takers. Those who studied law are finding their passion in hobbies and gifted talent. They are embarking on Gourmet Cuisine, Fashion Couture, Photograhy, Makeup Artistry, Event Management, Digital and Technological Marketing, you name it, all in a bid to succeed at business.

Extreme circumstances can help you think, act and do things differently. Though

specific, review every two months and revise where need be. Challenge yourself to execute these goals; look for assistance, advice and guidance along the way. Use this as an opportunity to tap into others experience. I strongly believe in the impact of having a mentor and or a coach who can be your accountability partner and offer you guidance where you may need it most.

when you really think about it this should be a regular routine for us all. Explore new territories that can expand your horizon, increase you personally and grow you professionally.

yourself no one else iii. Create positivity in your mindset and negate all distractions iv. Task yourself even when it looks impossible v. Mentally and spiritually prepare yourself vi. Take that giant leap vii. Reward yourself for starting viii. Make yourself happy along the way ix. Celebrate each milestone that is your steps forward x. Keep dreaming BIG What are you still doing day dreaming, its time to think out of the box and break new bounds, challenge the status quo and leave a great legacy! This is for us all!

Thinking Out of The BOx In your pursuit of success things must change if you are intent on seeing a difference in your life. It will take determination and the WILL from you to forge ahead and take that giant though necessary step. Let us take a look at the steps to help you on the road to breaking bounds: Renew your Goals: Renew your personal goals regularly, sometimes we say but we do not do. With dreams they may or may not manifest into a vision or ultimately a goal, but following through is the step towards breaking bounds. The goals should be time bound and

Create Compact Ideas Many ideas that have resulted in breaking bounds happened accidentally or by that one chance or opportunity that arose. I have heard of a couple who began earning extra income from selling fruit juice, an idea that they joked about while drinking juice in their kitchen. Creativity is the spice of life, class is the mark of distinction, by pulling all these ideas together into a package over and above your activities is your direct step to thinking out of the box.

Remember: i. Stretch yourself beyond our normal limits ii. Speak affirmatively to

Please share your experience: janet.adetu@jsketiquetteconsortium.com Also follow and like us on social media @janetadetu /@ JSK Etiquette

26

BUSINESS DAY

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Cancer patients to enjoy reliable treatment as new machines installed

...LUTH’s centre gets $11m equipment, renovation boost ANTHONIA OBOKOH

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igeria’s dismal cancer survival rate could soon experience an upward move as new radiation machines that can deliver reliable treatment get installed and ready for use at various centres in the country.

The new machines will overcome the challenge of frequent breakdown being experienced at cancer treatment centres, according to Nigeria Sovereign Investment Authority (NSIA), which funding their acquisition.

Already, the Oncology department at Lagos University Teaching Hospital (LUTH) IdiAraba has received $11million (N3.96 billion) worth of sophisticated equipment and renovation from NSIA, the agency has said. Other locations where similar projects are to be commissioned are Kano and Umuahia.

“The specialised project is awarded as part of a programme to promote PrivatePublic Partnership and collaboration in funding cancer care in order to advance cancer prevention, diagnosis, treatment and care,” Titilope Olubiyi, head of corporate communication at NSIA, said by phone.

Access to radiotherapy machines has been a challenge to treat over 100,000 cancer patients yearly in the country and the vast majority of Nigerians of about 80, 000 who suffer from the disease can’t afford it die each year due to the deplorable

attention paid on the health sector.

Over the past decade, LUTH has been struggling with the radiotherapy machine which breaks down often as a result of overuse and is currently without a functional machine. This recent project by NSIA is a push for national action to seek more collaboration “end cancer as we know it.”

Findings by BusinessDay show that the average cost of a radiotherapy machine is between $1.5 million and $2 million, depending on the size and capacity.

“It is going to be very supportive,” said Habeebu Muhammed, Head of Department Oncology. He described the radiation machines as “state-ofthe-art,” noting that two out of the four had been installed.

“By the time the project is completed, the facility will be able to treat at least more than

500 patients in a month with a complete session, but in a daily treatment we could have about 300 patients who can undergo treatment but not a complete session because it takes about a month to complete a session of treatment,” he said.

Uche Orji, managing director and CEO of NSIA, said recently on AriseTV that the commissioning of the projects is the 13th phase across Nigeria’s healthcare. “What we are doing is not social responsibility but commercial investment. So we are expecting to make about 8-12 percent profit in healthcare,” Orji explained. He added that at the moment, the facilities are owned

by NSIA but that in a period of seven years NSIA would have earned its return on investment, “and over time transfer it to LUTH.” Cancer is expected to kill more than 70, 327 people in Nigeria, and an estimated 115,950

Fayemi rids health facilities of 15m worth of expired drugs AKINREMI FEYISIPO, Ibadan

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ayode Fayemi Governor of Ekiti State has supervised the destruction of expired drugs worth about N15 million withdrawn from all public health facilities across the state.

Fayemi said the destruction became necessary to rid the state of toxic and dangerous substances and to enable his administration commence the transformation of the health sector on a desired, guaranteed quality health care services and delivery.

“Getting rid of expired drugs could be achieved by simply discarding the drugs at any dump site and burning them became necessary to ensure that people of doubtful characters do not lay their hands on them to inject them back to the society,” the governor said.

Fayemi identified the effects of expired drugs to include decrease in effectiveness over time, discolouration or loss of aesthetic value due to reaction on

long time storage and conversion to poisonous substances as a result of chain breakage and cleavage.

Ayotunde Omole, permanent secretary, Ministry of Health and Human Services, who represented Governor Fayemi at the exercise noted that taking expired drugs could cause organ damage, restlessness, and other emergencies.

Omole who is also a medical doctor added that the inherent dangers in taking expired drugs informed the decision of Ekiti state government to mandate all government primary, secondary and tertiary health facilities to be combed for such products for prompt destruction.

In her welcome address, Olabisi Arogundade, general manager, central medical stores, revealed that destruction of expired drugs was last carried out in the state in 2008 and since then, expired drugs generated in all public health facilities were withdrawn and stock-piled at the Central Medical Store which is

the government’s agency for drug procurement, storage, management for onward distribution to government health institutions.

“The stockpile of expired drugs have become so huge over the years that it called for prompt attention of disposal due to its negative effect on humans and the entire environment “, Arogundade noted.

While emphasising on efforts to avoid future wastages, the General Manager promised that the state Drug Revolving Fund (DRF) would more than ever before monitor drug inventory to reduce wastage and equally liaise with donors to ensure that only drugs with desirable remaining shelf-life ( RSL) were taken to the state and in quantities that could be consumed within RSL. “Better collaboration and coordination of sources of drugs and utilization amongst all stakeholders will also be ensured as we move forward in the delivery of our services “, Arogundade further added.

new cases are predicted yearly according to the International Agency for Research on Cancer (IARC).

However, on Friday January 18 during an inspection of the new Cancer Treatment Centre, by the Minister of Health, Isaac Adewole, said that the purpose of investing in the facility is to treat more people in the country, rather than they travelling out for treatment.

“LUTH has a first-class of Biomedical Centre which we planned to support other Centre’s. I know the institute will manage the machine properly which means abandoned and broken equipment will be a thing of the past,” he said.

According to the minister, there will also be long-time maintenance contract that will enable us to manage the cancer machine. “The cancer treatment Centre is almost ready, so by February, this Centre will start operation fully for the benefit of the patients,” Adewole said.

Chris Bode, the Chief Medical Director of LUTH, said that the aim was to establish a worldclass cancer treatment centre in the hospital which would help to reduce medical tourism.

“We already have the manpower, there are enough experts for cancer treatment, but we are trying to also retrain our experts on how to maintain and use the machine properly.

“Healthcare is inevitable to invest in, so I am calling on people to invest more in the healthcare system in the country,” he said.

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Friday 25 January 2019

New technology on oral drug delivery systems in focus REGIS ANUKWUOJI, Enugu

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renowned professor of pharmacy at the University of Nigeria, Nsukka, Kenneth Ofokansi, has said that several novel oral drug therapeutic systems have been invented along with the appreciable development of drug delivery technology for the past three decades.

Ofokansi, explained that although, these advanced drug delivery systems are manufactured or fabricated in traditional pharmaceutical formulations, such as tablets, capsules, sachets, suspensions, emulsions and solutions, they are superior to the conventional oral dosage forms in terms of their therapeutic efficacies, toxicities and stabilities.

Presenting the 140th inaugural lecture of the University of Nigeria titled “breaking the barriers to effective peroral drug delivery”, held at the princess Alexandra auditorium, Nsukka, recently.

The University Don who is the chairman of the senate ceremonials committee of UNN, submitted that based on the desired therapeutic objectives, the modern oral drug distribution systems may be assorted into three categories – the immediate – release preparations, controlled – released preparations and targeted – release preparations pointing out that the immediate – release preparations are primarily intended to achieve faster onset of action for drugs such as analgesic, antipyretics and coronary vasodilators.

He noted that other advantages of the system included enhanced oral bioavailability through transmucosal delivery and pregastric absorptions, convenience in drug administration to dysphagic patients, especially the elderly and bedridden.

According to Ofokansi, in

the last four and half decades, the area of peroral drug delivery has undergone unprecedented changes, this transition has been mainly driven by the increased understanding of pharmaceutical and biological constraints at the molecular / atomic level, increased generation of drug candidates and emergence of several advanced technologies”.

Ofokansi, who is fondly addressed as the doyen of pharmacy by the academia, said that overall, this area had made significant technological advances, not only in drug delivery aspects but also in various processing (fabrication) technologies, adding that it was therefore anticipated that current trends in peroral delivery would bring the much-awaited revolution in the delivery of therapeutic agents, particularly biotechnology-based molecules.

He made it clear that the purpose of any drug delivery system was to enhance or facilitate the action of therapeutic compounds, stressing that it should now be apparent that conventional drug delivery systems are associated with a number of limitations which can reduce drug efficacy.

He also joined other wellmeaning and patriotic Nigerians to call on government at all levels to take the issue of providing funds for the establishment of specialized reference laboratories in our universities very seriously if Nigeria must take a leap forward to join the league of innovationdriven and developing economies of the world.

Earlier, the vice chancellor, of the University of Nigeria, Chukwuma Ozumba, re-affirmed the commitment of management to continue to invest on research and expressed joy that UNN was now ranked as the best university in Nigeria.

Explainer

How to know if you’re at risk of heart attack ANTHONIA OBOKOH

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omplications arising from heart attacks can be serious and possibly life-threatening. The older you are the more likely you are to experience serious complications following a heart attack.

A heart attack is a medical emergency. A heart attack usually occurs when a blood clot blocks blood flow to the heart.

Without blood, tissues lose oxygen and die.

Coronary Heart Disease (CHD) or Ischaemic Heart Disease is a leading cause of heart attack. It is a condition in which coronary arteries (major blood vessels supplying the heart with blood) get clogged up with deposits of cholesterol. These deposits are called plaques.

Signs to watch out for Heart attack is often not a sudden occurrence though in many people, it strikes suddenly, but more often than not, people have warning signs and symptoms sometimes for hours, days or weeks in advance.

Nigeria records more than

1.5 million cases of coronary heart disease per year according to report from Google. You or someone near you may be having a heart attack if they experience any of the following symptoms: tightness or pain in the chest, neck, back or arms, as well as fatigue, light-headedness, sweating, an overwhelming feeling of anxiety which may or may not include an unusual awareness of a racing heartbeat.

Women are more likely to have atypical symptoms than men.

Treatment of a heart attack will depend on how much blockage has occurred within the ‘coronary’ arteries supplying the heart and how much damage to the heart muscle has occurred as a result.

Treatment ranges from lifestyle changes and cardiac rehabilitation to medication, stents and bypass surgery.

How to prevent heart attack According to the World Health Organisation, the following are key ways to protect heart health and could help reduce your risk of having a heart attack

or having another heart attack.

WHO warns says tobacco use, an unhealthy diet, and physical inactivity increases the risk of heart attacks and strokes.

Engaging in physical activity for at least 30 minutes every day of the week will help to prevent heart attacks.

Eating at least five servings of fruit and vegetables a day, and limiting your salt intake to less than one teaspoon a day, also helps to prevent heart attack.

Having your blood pressure checked and knowing the number to avoid sudden attack. If it is high, you will need to change your lifestyle to incorporate a healthy diet with less salt intake and may need medications to control your blood pressure.

Know your blood sugar, raised blood glucose (diabetes) increases the risk of heart attacks if you have diabetes it is very important to control your blood pressure and blood sugar to minimize the risk.

However, experts say that the longer the delay in starting treatment, the greater the likelihood of a poor outcome after a heart attacks.

Friday 25 January 2019

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BUSINESS DAY

27

Executive Travel Health

Q-Life advisory services Ade Alakija

Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos.

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ome travellers going on long term assignments require additional physical, mental and spiritual issues to be addressed before travel. The range of presentations of ailments will be, determined by the time of travel (inclusive of duration), place (Country, terrain, local condition) and person (Mental status, asthmatic, diabetic).

The ability to determine which ailments afflicts the traveller especially mental health in this case, and that no problem exists or to investigate further is part of the travel consultant’s role.

Briefing the traveller on the destination, culture and norms of the society and the possible consequences of his actions could help to give him balanced mental health both at the destination and on returning home.

The travel consultants’ aim is to reduce the effects of cultural and other stressors on mental health which along with its negative effects is one of the most common causes of repatriation at great cost to the individual and the travellers’ organisation. Increased fear of travelling especially after the September 11(911) Twin tower terrorist attacks has added more anxiety.

History Taking: Past medical history. People working with particular groups may have psychological problems, which predate their overseas work. A family history of mental health problems and a history of social relationships will determine the ability to cope on a trip. A discussion of reasons for travel may reveal a past problem in childhood, school or college and up to date, which may have to be addressed before travel.

Physical stamina (Sleeping difficulties & fatigue), emotional maturity (including drug and alcohol use),

history of behaviour (for example sexually abused in the past.) and past responses to life experiences (how traveller has coped with stress in the past) will be addressed to determine the ability to cope. Alcohol and Drug use: Past history of self-injury and any unresolved earlier problems.

Culture Shock: Time orientation is generally long term in Asia, Africa etc unlike the Western culture quick results orientation. The western world is usually a low power distance and low uncertainty avoidance culture which is a different cultural take to Africa and the Far East, which is high- power distance and low uncertainty. Similarities in village market style and communication (Market trading and bargaining) could help but paternalistic attitudes and behaviours can be baffling to the traveller who is individualistic in a collective setting.

Oberg described ‘culture shock’ as ‘the anxiety that results from losing all the familiar signs and symbols of social intercourse’, giving rise to rejection of the environment and regression in which the home environment is glorified.

The effects on the traveller could be: Excessive concern about hygiene, food, drinking and bedding, Fear of physical contact with nationals and personal security, Absent minded, far away stare, A desire for dependence on those of one’s nationality, Anger about the frustrations of the new country and A terrible longing to go home.

The traveller may alternate through the four phases below.

Contact Phase: Fascination with the new environment over the first few weeks Disintegration phase: This is one of hostility and aggression towards the new country.

Re-integration: Stage of partial acceptance characterised by an emergent humour.

Autonomy: In this phase anxiety

clears and acceptance of the customs takes place.

An extrovert is likely to engage more easily and learn quickly than an introvert. Flexible laid back character types with fare better than rigid obsessional types. Stressors are- Language (57%), Separation from Children (33%), Children’s education (25%) and change in work status (20%). Some geographical sites carry more stress than others.

Antimalarials: Mefloquine is a chemo prophylactic agent, and its use has been strongly suspected to responsible for some neuropsychiatric disorders. Its chemical structure resembles that of quinine (documented CNS effects), it is lipid soluble and crosses the blood brain barrier, has long serum half life and it has great inter- individual variability.

Childhood experience: Poor childhood experiences like fighting parents, divorce with or without abuse to the child, especially sexual abuse have been shown to triple psychiatric morbidity in adult life. Childhood is a good preparation for adult life.

Past adult life Experiences: Painful or difficult events for instance recent bereavement should be considered before travel. Relationships at work and job changes.

Travel Stressors: Many current air travellers however retain unrealistic perceptions of impending aeroplane disaster and some have air related phobias. (Airport delays, transit restrictions, loss of control, poor in-flight environment and terrorism.) Intervention here with appropriate information, advance warning and recommended precautions can lead to adaptation of strategies to anticipate and reduce personal risk enroute. (DVT precautions (41.8% of participants in study perceived this as threat to life and limb.) And alcohol constraint.) , local habits that can confuse the first time traveller.

Bearing in mind the stressors already listed above, air-side and pre-

airport travel may be just as hazardous to health as in flight, psychological and its physiological effects ( Cardiac), anticipatory anxieties especially with kids, potential for anger and frustration to develop, aviation effects ( noise, reduced oxygen, low pressure and temperature) and cabin environmental factors. (Air quality, seating conditions, motion sickness, exposure to disease) These factors are likely to interact with psychological stressors.

The Screening Process: This process should be done as soon as possible, before departure becomes irreversible. Psychological screening may be done depending on the outcome of history and current experiences. A psychometric test could be ordered if necessary, and the scale will be interpreted in the light of information disclosed. The traveller may immerse himself in the life and culture of the people and may have to move from one culture to the other overtime if on a long stay trip.

It is important to identify his personality type, using Schubert’s classification, Cluster A, B or C type.

Cluster A type is paranoid and schizoid, they are usually perceived as Eccentric or odd.

Cluster B type is a bit more complex, they are emotionally unstable, antisocial, and histrionic (attention seeking, need constant reassurance, praise and approval) they are rigid and are not able to tolerate or understand shades of grey.

Cluster C includes the avoidant, dependent, obsessive-compulsive, and passive-aggressive disorders.

They appear anxious, fearful, overly compliant, meticulous and expressive of strong feelings. These dependent types will do better in a group and not a solo setting.

Personality assessment scales: Does he have any antisocial behaviour, eating disorders, is he paranoid, schizoid, obsessive –compulsive or have other forms of depression. Assessment of current functioning: Heimler Scale

of Social Functioning (HSSF) – to assess the balance of satisfaction and frustration and the margin for coping.

Advice on the possible encounters and stressors could prepare the traveller better to cope.

Cultures of the Far East and time (long term orientation in the Far East, West quick results.) Should be born in mind.

Conclusion: Screening for Mental health problems should be seen as part of routine screening by travel consultants especially in Long term travellers before travel.

All results should be discussed with the candidates. On returning home debriefing may be useful to reduce reverse ‘Culture shock’ and this may be all that is needed, but a small number may need more skilled help.

Screening should include Physical – which is the traditional method, Psychological – which includes counselling and psychiatric examination on issues of personal difficulties, rape.

And In some cases Spiritual – moral issues, religious issues amongst other.

This may be a long drawn process in the overall interest of the traveller and society to prevent mental health problems and to maintain normal life.

One of the aims is to prevent costly repatriation. A proper understanding of the above problems will reduce the chances of a dramatic return home which is an additional stress. Modern developments in terms of Information Technology, Social Media and Clans will be interesting future studies.

Post Travel - Psychological issues on returning home: Basic stress, Cumulative stress and Traumatic stress should be discussed on the return of the traveller.

Debriefing: This helps the traveller settle back on returning home. This may help prevent the later development of psychiatric problems and help readjust to life back home (long term traveller) and is also a screening tool to identify serious psychological problems.

settlers on the need to take samples from their children.

He said the governor has already approved a budget to commence measures to curb the outbreak of these diseases.

“We will commence immunisation of children in Baruten and other neighbouring communities,” he said.

Rifun-Kolo also disclosed that a Yellow Fever case has also been confirmed in Agunji in Ifelodun Local Government Area of Kwara.

According to him, the patient is a farmer from Kebbi State, residence in Agunji District.

He noted that the state Ministry of Health is already in touch with the traditional leaders to brief them on any possible outbreak of the disease.

The commissioner added that samples have also been taken from residence to confirm if they had earlier taken the Yellow Fever immunisation that took place in 2018.

“The results showed only 25 per cent of people in that community were vaccinated for Yellow Fever,” said the Commissioner.

He pointed out that the patient

is responding to treatment, though not fully recovered, and that health workers will commence vaccination exercise, while urging people to comply with the exercise.

Also speaking, Abimbola Folorunso, the executive secretary of Kwara State Primary Health Care Development Agency, said international health partners such as World Health Organisation are already on the ground to assess the situation and render assistance.

She lamented that non-cooperation of communities to get vaccinated during routine immunisation is responsible for outbreaks.

Folorunso also informed there is collaboration with the government of Benin Republic to ensure border communities also get vaccines against outbreaks.

The expert in Epidemics appealed to people to comply during the vaccination campaign, adding that these diseases are vaccinepreventable.

“The patient with Yellow Fever would have been immunised against the disease for a period of 10 years if he had taken the vaccine,” she said.

Kwara confirms two cases of Lassa fever SIKIRAT SHEHU, Ilorin

T

he Kwara State Government has confirmed two cases of Lassa fever infecting a husband and wife in the state.

The government also confirmed an outbreak of circulating Vaccine Derived Polio Virus which claimed the life of a two-year-old girl and a case of Yellow Fever infecting a farmer.

Speaking with journalists at a press briefing in Ilorin, , Usman Rifun-Kolo, commissioner for Health, Kawara state said the outbreak of Lassa fever was identified in a farm settlement in Taberu, Baruten Local Government Area.

Rifun-Kolo explained that the two cases of the disease affected a husband and wife, who were natives of Benin Republic, which shares a border with the state. He added that the husband and wife are farming in Baruten.

“These cases of Lassa Fever originated from Benin Republic, whose citizen have inter-relations with people in Baruten area,” he said.

According to him, the husband and wife were diagnosed in a health

HBL Team

facility, and that the state government had already deployed disease surveillance team to identify those who have been in contact with the patients.

Rifun-Kolo said that the surveillance team identified four people with history of fever in the area noting that the four cases raised suspicion of Lassa fever, which prompted them to take samples from the individuals for further investigation.

The commissioner also disclosed that an outbreak of circulating Derived Polio Virus in a Fulani Camp in Kiiparu District of Okuta

Ward in Baruten LGA has been confirmed.

He pointed out that the victim was a two years old girl with a symptom of Acute Flaccid Paralysis adding that the World Health Organisation confirmed the case.

The victim according to him died of the disease and that contact case was carried out by the government to collect samples from other children in the Fulani settlement.

The commissioner further disclosed that the settlers proved difficult and uncooperative and that it took the intervention of the Emir of Okuta to persuade the Fulani

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

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ManagementDigest

Life’s Work: Michael Ovitz — Part 2 Alison Beard

T

HE HOLLYWOOD SUPERAGENT TURNED SILICON VALLEY ADVISER ON WINNING OVER CLIENTS AND BUILDING CREATIVE TEAMS. As a co-founder of Creative Artists Agency, Michael Ovitz revolutionized how big deals in film, TV, music and corporate media were done from the 1970s through the 1990s. Following brief stints at Disney and his own mobile content startup, he reset his career as an adviser in Silicon Valley.

How do you know when risks are worth taking?

From age 17, when I got my first job at Universal Studios as a tour guide, I watched everything that came out on the big screen and every television show. I read every top 10 book, every script, notes on the scripts. I had subscriptions to several hundred magazines, which I would skim through. I was a student of popular culture, and my life was all about learning what people wanted to see. And then, as the ultimate fanboy, I did things I would want to see, too.

How did you manage your time?

It’s the same in any business. You could be a doctor, a lawyer, or a writer and an interviewer; an agent, an entrepreneur or an Indian chief. Time is our most valuable commodity. I was obsessed with how to get more hours in the day. A client even gave me a 25-hour clock as a gag gift. One key to productivity and time management is responsiveness.

At CAA we had a system where if you were asked a question by a colleague, you answered it; we kept notes on everything, and we shared information. We prioritized by the clients, the agent, the buyer who had the largest need.

We returned every phone call by the end of the day, so you’d see people sitting in the office until 8 at night doing that. Also, honesty: If you do not have an answer for something, tell the client or buyer, “I don’t know.”

You had a family. How did

that work for you personally?

Sometimes good; sometimes not so good. My wife and I were married when we were 21 years old. She helped me start CAA. She was a secretary, along with the wives of the other founding partners. We worked seven days a week. We came into the office at 7 a.m. and we’d leave at 11 p.m.

I didn’t have children until six years into CAA. Chris Ovitz, my first son, was a game changer for me. Having children is a giant responsibility, and I worked around it. I would leave CAA at 3, be on the phone in the car until I got to the John Thomas Dye School, watch one of my three kids in a sporting event while still making calls, congratulate them whether they won or lost, then get right back in the car, on the phone, to the office. It was a way of life for 25 years.

You’ve described your move to Disney as your biggest mistake. Why was your tenure there so short?

I don’t think Michael [Eisner, Disney’s chairman] liked having an equal or the thought of losing control. The funny thing is that there was ample work for both of us, but we never got it right in terms of splitting up responsibilities.

After that and watching your new startup fail to take off, how did you regroup?

Whenever I had a setback, Mi-

chael Crichton, a good friend, would tell me, “There’s always another horse race. Just take some time off, then jump into something that interests you.” In the mid-1990s I got interested in tech. In 1999 I was asked to be on a board. I got crazy infatuated with the Valley. My first year there I took 400 meetings just to get that frame of reference I used to have at CAA. You’ve talked about similarities between Hollywood and Silicon Valley, but what are the big differences?

The scale is different. The entertainment business has instant gratification. You could pitch a television show or a record and have it out in a short period of time. But when you are working with the complexities of bioscience or self-driving cars, ideas take years and years to develop.

Companies like Uber, Airbnb and LinkedIn have taken years to incubate and to get right before they’re ready to go public or sell.

You’ve described yourself as a chameleon: different at home than at work, also inside and outside the office and with various clients. Why did you operate that way? Do you feel you can be more authentic now?

Let me answer the last part first: 100% yes. I’m in the most comfortable part of my life, particu-

larly having finished this book and gotten all that off my chest. But back then I had an act. When Ron Meyer and I decided to get into the film business from television at CAA, we felt we needed to create personas. We decided to play good cop, bad cop, and I took the bad cop role. The chameleon side was something I had always done.

I felt it was easier to communicate with people in the way they chose.

If they chose to be soft, be soft. If they chose to be rough, be rough.

It was an aikido move — to redirect their force back on them.

How did you get your agents to work together?

We knew that you could manage by creating competition between employees. Or you could go a different way: a combination of American team sports and the Japanese philosophy of “nemawashi,” or management by consensus. So people are invested in and help one another. You’d sit in a staff meeting and someone would say, “We have a singer who wants to do a film,” and a literary agent would say, “I’ll help.” He had no reason to, but he did, and we’d get a movie made. That happened with Prince and “Purple Rain.” No one said the idea was stupid. Half a dozen agents said, “Let’s try.”

I have to ask: Did you know about all the sexual harassment and abuse in Hollywood?

We didn’t know what we know now. We did deal with Harvey

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Weinstein, and we had no idea.

And we didn’t have a lot of clients complaining about problems.

When we did, we took care of them. But we didn’t allow clients to have meetings at odd places, and most of the time — in particular, with female clients — agents accompanied them.

In your book, you talk about having boundless ambition but also constant anxiety about your ability to achieve your goals. Was there ever a time when you felt at peace?

When we sold Sony to Columbia Pictures — a deal in which I represented Sony but had great relationships on the other side — I was sitting in a room after everything was signed with the investment banker Herb Allen, a good friend, and I looked at him and said, “Well, what’s next?” And he said, “You’re the dopiest guy. Why don’t you take a couple of days and enjoy the fact that we’ve just sold a studio, everyone got what they wanted and we had a good time doing it?” I couldn’t. Within five days I started working on a deal to help Matsushita buy a studio.

The anxiety came from being the operator of the business. Every day when you turn that key, you have overhead, so you have to run it, be creative, keep your people’s spirits up and the machine running and turning a profit and moving upward. Occasionally I’d step back and say, “My God, look what we created.” But those moments didn’t last very long.

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LeadingWoman

29

ANN NDERITU, for the love of Aeronautical Engineering, IT and women empowerment Kemi Ajumobi

A Bio

nn Nderitu is an Aeronautical Engineer (Hons.) having graduated top of her class, an award winning entrepreneur and the Founder of The Girls’ Boardroom. She founded The Girls’ Boardroom Forum whose objective is to empower women in the workplace and offer mentorship to young graduate ladies helping them attain their career goals. She wants to see female at the managerial positions and in the boardroom of top companies hold 50% of the positions. She is a technology enthusiast and believes that Africa is capable of solving its own problems using technology.

Growing up I had a normal upbringing in the central part of Kenya.

Being the firstborn in the family, I adapted the virtue of hard work in my early years. I loved reading and I was particularly good in Math and Sciences which is the case until today. This led me to pursuing Aeronautical Engineering in the University.

Being an Aeronautic Engineer I always aspired to be a Pilot when I was young. I was deeply fascinated by aviation. I decided to combine my love for sciences with aviation and I chose to pursue Aeronautical Engineering at Technical University of Kenya.

Aeronautical Engineers are tasked with designing and manufacturing aircrafts as well as maintenance of aircrafts for the airlines. Pursuing the course as a woman is not challenging as long as one is passionate and ready to put in the hours. Working in the field can be quite a challenge for women as 90% of my colleagues are male. This can be intimidating at first but you learn to work with them.

Limited number of women in this field From the early stages of child development, girls are not encouraged to take the sciences seriously. So by the University level, they have no interest in the field and little can be done at that stage. In addition, many people believe the stereotype that women cannot excel in engineering fields. In fact, I still get surprised gazes when I mention that I am an Engineer.

Surprisingly, the few women who are in the field are doing exceedingly well, at an equal measure or even better than the male counterparts. Therefore, we need to encourage the young girls and mentor them into the sciences and technology fields Danger in making mistakes in your field The biggest mistake for a young Aeronautical Engineer is failure to listen and follow instructions. Also, attention to details is key as any slight mistake can be catastrophic.

On a light view, most people want to start working in high positions while they haven’t really understood the basic core in their specialty. It’s advisable to start on an entry position where you learn the basic hands on skills then climb up the ladder How expensive is it to be an Aeronautical Engineer?

In Kenya, there are government sponsored Aeronautical Engineering degree courses that were introduced not more than 7 years ago. This makes it affordable for the students. However, the grades required are set very high and the number of students annually are few which locks out most aspiring students. There are no post graduate courses offered locally in Aeronautical Engineering and hence one has to further their studies abroad which can be quite expensive.

As a tech enthusiast, how can Africa solve its mired problems through technology?

By embracing and empowering local innovators while providing basic innovation resources like affordable internet connection, co-working spaces and easy access to funding.

Additionally, by providing and equipping technical labs with up to date equipment that facilitate carrying African tech for Africa research.

Girls Boardroom Forum I founded the Girls Boardroom with an aim of connecting women globally on a safe and secure platform for women to offer support to each other.

The inspiration came after I completed my University studies and I felt that I needed support to transition into the career. These are the challenges young people face and it doesn’t get easier once you are in the workplace.

I strongly felt that I needed a mentor to guide me through my career decisions. Through the Girls Boardroom, we enable women to collaborate, network and share advice on the digital forum that is free from judgment.

We also link young women professionals to experienced mentors to guide them on their career journey. Our aim is to help women excel in their careers and reach their full potential. Global Gender Gap Report 2018, indicates that only 21% of board members in listed companies are female and only 34% of managerial positions are held by women.

This narrative of having a big gender parity at the top most positions need to change.

How crucial is the girl child education?

Women make more than half of the World’s population globally. Hence educating women is an essential thing to drive the economy forward. Although there some progress in girls education has been made, there still exist parts of Sub-Saharan Africa where there are early marriages and female genital mutilation which deter girls from accessing education.

But with the increasing number of women getting on, only 22% of Artificial Intelligence professionals globally are female. This is a worrying trend as it means that women are not fully engaged in the skills that are shaping the future which may lead to women being alienated further in the technology world.

We sponsor young girls’ high school education by paying for their school fees through our various partners.

We run digital training sessions where we train young women from the slum areas and underprivileged backgrounds on digital and entrepreneurship skills Day never to be forgotten When I was 10 years old, I opened my dad’s radio to check how it looked inside, in the process I disconnected the dry cell battery and when I screwed it back, and turned it on, it all blew, I spent the next two weeks figuring out how to fix it before my dad came back.

Final words There is need for more effort to be put by various parties to close the gender gap in the society. The Girls’ Boardroom as we say ‘girl for girls ‘is on the front line to help women achieve their full potential and have more women sitting in the boardrooms.

We strive to make sure that the young professional women excel through mentorship and The Girls’ Boardroom collaboration

30

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Odunayo Oyasiji

Executive Order 6 and Malami’s directive on Cjn’s accounts: illegality birthing illegality

Locus Classicus Dunlop Pneumatic Tyre Co vs.

Selfridge Ltd (1915) AC 79

I

n this case, the plaintiff had an agreement with a dealer that he shouldn’t sell their product below a certain price.

They also made the dealer promise to extract this same promise from other people they sold to. The dealer subsequently sold to the defendant and made him promise not to sell below the ascertained price. They even agreed that for every good sold below the ascertained price, 5 pounds would be paid to the plain-

“M

ay you live in interesting times” is a Chinese ironical saying.

Interesting times being period of disorder, trouble, danger and uncertainty. Whatever your position is with regards to the situation of things in Nigeria of today, we are certainly living in interesting times – as we wake up daily to news that are not only disturbing but also mind boggling.

The entire nation woke up to the news of a directive by the Attorney General of the Federation to Nigeria Financial Intelligence Unit (NFIU) to freeze some of the accounts of the embattled Chief Justice of Nigeria. The basis for the foregoing as contained in the letter is Executive Order 6.The legality of the president issuing executive orders have been questioned by different people. I will not dwell on this. Rather, I will like to address the illegality tagged Executive Order 6 that is being relied upon. The order was signed by the incumbent president in July 2018. It is meant for the Preservation of Suspicious Assets Connected with Corruption and Other Relevant Offences.

It will be recalled that 50 prominent Nigerians were placed on travel ban sometimes last year based on the same order.

The issues that have been raised with regards to the legality of the order is that it represents an usurpation of the powers of the judiciary and also a breach of the fundamental right of the people.

The right to free movement and to own properties/assets are all guaranteed under Sections 41 and 44 of the Constitution of the Federal Republic of Nigeria 1999 (as amended). Section 41(1) states that “(1) Every citizen of Nigeria is entitled to move freely throughout Nigeria and to reside in any part thereof, and no citizen of Nigeria shall be expelled from

Nigeria or refused entry thereby or exit therefrom” while section 44(1) states that “(1) No moveable property or any interest in an immovable property shall be taken possession of compulsorily and no right over or interest in any such property shall be acquired compulsorily in any part of Nigeria except in the manner and for the purposes prescribed by a law…”.

Section 44(1) stated above applies because cash and properties fall under assets and cash is a form of moveable property.

Therefore, the section applies to the case of the CJN directly. The section expressly states that “No moveable property or any interest in an immovable property shall be taken possession of compulsorily … except in the manner and for the purposes prescribed by a law”.

In the case of CJN, the only lawful means to freeze his accounts is by seeking an order of court freezing the accounts and not on the basis of an executive order.

It must be noted that Section 1(1) of the Constitution states that the constitution is supreme. Furthermore, section 1(3) states that if the provision of any other law is inconsistent to the provisions of the constitution then such law shall be void to the extent of its inconsistency. It is safe to conclude that executive order 6 is at loggerhead with the provisions of the constitution- and “you cannot put something on nothing and expect it to stay there. It will collapse” (Lord Denning in the case of Macfoy V. UAC (1962) AC 158). An essential question that begs for an answer at this juncture is whether an executive order that is inconsistent with the provisions of the constitution can be the legal basis for another action? Feel free to draw your conclusions.

According to A.V Dicey (A Brit-

Friday 25 January 2019

ish Jurist), rule of law means the absence of arbitrary rule. Therefore, its foundation is based on the observance of the wordings and spirit of the constitution of a nation. Putting the rule of law in a secondary position as suggested by the action of the AGF will only promote dictatorship.

Flagrant disobedience for court orders and failure to guarantee the individual rights of Nigerians will take away the confidence of people, investors and the entire world in our democracy.

Perhaps we need to remind the Honourable Attorney General and Minister of Justice that the Federal High Court in dismissing the case filed to challenge Executive Order 6 stated that it is legal as long as it doesn’t abuse the doctrine of separation of power and the Attorney General is to be approaching the court for orders of court before proceeding with the purpose of the order.

Executive Order 6 as applied in the case of CJN is therefore illegal as the Attorney General did not approach the court for an order to freeze the account of the CJN. A deeper examination of the issue on ground even shows an abuse in the use of National Financial Intelligence Unit. The use of executive order 6 as the basis to freeze the accounts of the CJN suggests that the assets (money) are suspected to be connected with corruption. Whereas, the focus of Egmont group (which is the united body for the Financial Intelligence Unit of 159 countries) is on combating money laundering and financing of terrorism.

There is a popular saying that “a stitch in time saves nine”, if urgent steps are not taken to challenge the actions of the federal government proceeding out of executive order 6 in court we will all end up as victims of arbitrary rule one way or the other.

tiff. However, the defendant sold below the price and also didn’t pay the 5 pounds. Thus, the plaintiff sued to enforce the agreement between the dealer and the defendant. The court held that the even though the defendant breached the agreement between it and the dealer, the plaintiff was not a party to the contract and it did not furnish consideration for the promise. Hence, there was no privity of contract between them.

The principle of Pacta Sunt Servanda in commercial transactions

P

acta Sunt Servanda means ‘agreements must be kept’.

Therefore, it deals with sanctity of contract. Whatever we agree upon must be followed by parties. Contractual obligations must be respected.

It must be noted that parties have the freedom to contract and agree as they wish. The only exception is that they cannot contract to commit crime or illegalities. The freedom is limited to acting within the ambit of the law.

Therefore, if parties agrees on

anything and reduce it into writing then the terms agreed upon automatically becomes binding on the parties.

In a situation where there is dispute between the parties the court’s duty is to interpret the terms agreed upon. It is not the duty of court to introduce new terms or read unnecessary meanings into the terms of the contract. The court in interpreting the terms often adopts the literal rule of interpretation of law i.e. giving the wordings of the contract its ordinary meanings.

Difference between originating summons and writ of summons

T

hey are both means of commencing a civil action in court. Originating summons is mostly used in a situation where the matter boils down to the interpretation of law and it is not likely to be a contentious matter. In essence, you are presenting a provision of the law to a court and relating it to some facts and then asking the court for the interpretation of the provision as it applies to the facts presented. This process is

usually faster than the process under writs of summons.

Writ of summons on the other hand is used when a matter is contentious and there is need to go through the process of trial. In this situation witnesses are called and parties tend to file and reply to many processes. Since business disputes are mostly contentious matters, lawyers tend to use writ of summons when instituting an action bothering on business transactions.

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Davos 2019

33

INTERVIEW

We will be big on impact and not just size, says Uzoma Dozie Uzoma Dozie, group managing director/CEO of Diamond Bank, tells BusinessDay in Davos how merger with Access Bank will create value for shareholders, customers and staff, and his career plans after the merger.

I

Uzoma Dozie

more people, granting access to more people to meet their day to day needs by leveraging technology and big data to bring about efficiencies. It is a pretty exciting platform. We are stronger together to go farther for our customers.

We know that there are gains to be made and we are taking decisions bases on a customer centric approach. So, things like staff rationalisation, branch closures cannot be done yet until we have allowed the customers decide which locations they would want to be served. So, we need to understand what our customers are doing these locations, so we can better tailor or customise these locations for better use.

Let me give you one example.

You see we have areas where we have Access and Diamond bank branches side by side today. So, the question is do you close one location, or do you change one location to say an ATM gallery.

So, while we reduce the cost of serving the customer, we do not take away the customers’ benefits and this way we ensure that the customer’s experience does not deteriorate. So, when it comes to being big, we will ensure that we are big in terms of footprint, in

terms of capacity, that we are big in terms of impact, big in innovation and in the value proposition that we present to our customers.

How does this merger change the competitive landscape?

I think there are two problems in Nigeria. One is the infrastructure financing problem and I do not think that one bank can just go it alone. We need collaboration among the banks and other stakeholders within and outside of Nigeria. The other problem is inclusiveness. If we are building infrastructure, you will need to mobilise and resource the Nigerian people. We have such large segments outside the formal banking sector or are in the informal sector and this presents a problem. And then you have about 17m businesses that are not registered I think that presents an even bigger problem. So, you will need platforms like this to get the money coming to Nigeria to reach that last mile. To provide people and small businesses with access to credit, access to advisory services to improve their lives. That is impact. This platform will position itself to really play a key role in that

infrastructure build out that Nigeria needs. Here in Davos we are talking about reshaping globalisation. You cannot participate in the global world without infrastructure and you also have to ensure that there is inclusiveness, that growth is on a sustainable path. So, in the age of globalisation, this entity is positioning itself to play a key role in that fourth industrial revolution.

Mobile money space being opened by the CBN This entity is one that is already positioned to play an active role in the social and economic growth of Nigeria. Firstly, consider the fact that as stand-alone entities Diamond Bank already had a strong relationship with MTN where we have created Diamond Yellow that has 10m subscribers on that platform alone. And we also have Access Bank that has a very strong partnership with Airtel providing mobile money solutions. So, between both of us, I do not think anybody has that unique relationship with telecos as we do. We know there is competition and there is collaboration. So, you have two banks that have actually been very successful in partnering with telcos to providing solutions customers at the bottom of the pyramid. And then what we also offer as a bank, one of the core capabilities we bring to the table is trust. And we also have full digital financial services. This is a platform that is a collaborative

‘

I have a passion for helping small businesses. Small businesses present a big opportunity because there is no developed nation with a thriving small business sector

‘

What are the next steps after receiving CBN and SEC approvals? think from a regulatory perspective, the next step is court ordered meetings, approval by shareholders and then legal merger.

Hopefully that should be concluded by the first week in April.

The key area of concern for us on an on-going basis is ensuring that our customers, our stakeholders understand the full implication of what we are trying to do, what the benefits are and that it is a path in which we can actually gain much more.

One big advantage is that you are getting a global institution coming out of Nigeria, one that can now compete with other big groups from around the world and I think we trying to position the new entity as a global player able to compete with both bank and non-banking institutions globally and with strong capabilities in retail and corporate banking and also other nonfinancial solutions providers. We are looking at how you bring in more people, how do you ensure greater diversity, focusing on women and providing resources for women. Between both of us, we had established a wide network for pushing financial inclusion and also playing in the fintech space broadly. In particular we have partnered with fintech to bring more solutions and value to our market.

Career enhancement opportunities for staff And so, for our staff, they are now beginning to see the new opportunities that this presents for career building or enhancement perspective for them either in Nigeria or in other locations in which we are present today and in the future.

How do you ensure this is not just a bank big for just the shareholders including those who manage it and that its size impacts the society at large?

That stems from our shared value also from the technology which we have adopted. So, the only way we would like to use the word big is when it comes to impact you are talking of 29 million people, most of whom are actually mass market. You also need to consider our inclusive strategy.

We are looking at bringing in

platform. That is the way we see.

Not a time of fear or threat but a time for collaboration whether with telcos or fintech partners.

We know how to do it, we have built the capability to partner, it is a one stop platform, local and international.

Do you see more consolidation in the banking sector coming?

I cannot tell. But what I can tell you is that among the two partners, Access and Diamond our shared values align. And so, when you have two willing parties come together, it means that the implementation risks will be substantially minimised especially with key talents on both sides of the divide working to achieve that common objective.

That is what we need more. If you have regulatory induced mergers, what creates is doubt. Both parties in this merger have spent good time and effort, including town hall meetings selling this merger, providing the information that the customers and other stakeholders need, to convince them that this is good for them.

Concerns by staff about their future One of the key traits of a bank is trust. Our word is our bond.

We have come out to say that our staff need not be worried. In the first year, we are not closing down any branches. I think we are closing down five branches, and these are branches where there is nobody inside them. We are not going to lay off anybody who does not want to leave. So, the staff have to be committed to the new organisation. This is a platform that is really huge and there is a dearth of good talent in Nigeria. This is a platform that requires key talents. Even where there is over capacity, we are going to re-tool people. And we want to ensure that there is goodwill as well.

Future for yourself going forward.

I have a passion for helping small businesses. Small businesses present a big opportunity because there is no developed nation with a thriving small business sector. I also think technology will play a key role going forward and then women. So, I am going to be doing something in those three areas and I think there is a lot of space for people.

34 BUSINESS DAY NEWS Nigeria’s decline shows as Ethiopia shines at...

Continued from page 1 Nations Conference Trade and

Development showed that while Nigeria only managed $2.2 billion in Foreign Direct Investment (FDI) in 2018, Ethiopia attracted $3.1 billion.

That equates to an FDI per head of $29.5 in Ethiopia, which harbours some 105 million people. For Nigeria, FDI per head is less than half at $11.

Ethiopia has suddenly become an investor’s delight on the back of a rapid set of reforms being pursued by Prime Minister Abiy who is bringing down age-long barriers to investment in a market seen as rival to Nigeria because of the size of its population.

HERE’S THE FULL TEXT OF ABIY’S SPEECH AT DAVOS Thank you for the warm welcome in this cold winter. I am honoured to be with you for the first time in Davos and most grateful for the opportunity to share Ethiopia’s new vision.

Ethiopia is today among the fastest growing economies in the world, consistently averaging over 9 percent growth in the last decade.

Ethiopia’s GDP has multiplied 10 folds in 25 years, poverty has been halved and educational enrolment has markedly increased.

Significant investment in infrastructure has contributed to growth, and also attracted foreign direct investment, making Ethiopia one of the leading foreign direct investment destinations in Africa.

Our tremendous success has reflected the commitment of our

government and our people to development and progress, however our challenges remain formidable.

Toenforceanupwardtrajectoryand achieve even more rapid and sustainable economic growth, Ethiopia has embarked on comprehensive reforms process since last April which cuts across politics, economics and society.

We aim to establish a bulk of a cycle between these elements and among our partners to enable us to meet our challenges in a mutually profitable manner.

Ladies and Gentlemen, allow me to explain this path of reform.

Our reform is deeply rooted in the philosophy of Mardema an apori word for coming together or synergy.

Mardema is a historic reform to organic change and building on the gains of the past, while reminding us of our rich heritage.

It also reflects on modern realities and synergy in politics, economics, technology and society. Ethiopia is indeed undergoing a period of political and economic renaissance.

The Mardema reform is peoplecentered and based on three interdependent pillars.

The first pillar is a vibrant democracy; the second one is economy vitality while the third one is regional integration and openness to the world.

Today, we meet at a time of great opportunity for Ethiopia and for you.

In this spirit of partnership, please allow me briefly address each of these aspects.

C002D5556

On the political reforms, we are working tirelessly to fulfil the constitutional promise of building a democratic political order based on our first pillar a vibrant democracy.

Guided by this principle, we have acted quickly and decisively in the past nine months, we have released all political prisoners in their thousands.

Wehavealsoinvitedindividualsand groups based abroad to return home and join us in the spirit of nationalism.

We have restored licenses to independent media, issued and amnesty law and repealed restrictive laws of the past. We will also revive civil society law very soon.

Without these reforms, we believe it’s not possible to sustain growth, attract investment and allow all Ethiopians to benefit from the growth dividends and persuading investors to invest in our economy.

We see democracy and development as interlinked we have acted decisively on this understanding.

The second pillar of our reform is economic vitality. We are determined to bring Ethiopia firmly to the centre of international market. To do so, we will leverage the collective power of our people especially women and youth. We will also build the private sector to drive more inclusive and socially sustainable growth.

We cannot hope to progress as a nation and as an economy if we disqualify half of our people from full and equal participation.

Women are now occupying key government positions including the minister of defence, minister of trade, minister of transport and newly es-

L-R: Rochas Okorocha, governor, Imo State; Benjamin Ozurumba, vice chancellor, University of Nigeria; Godwin Emefiele, governor, Central Bank of Nigeria (CBN); President Muhammadu Buhari, and Ifeanyi Ugwuanyi, governor, Enugu State, at the inauguration of the CBN Centre of Excellence, University of Nigeria, Enugu campus, in Enugu, yesterday.

Access-Diamond Bank merger to lead to...

Continued from page 1

from 2019 through 2021.

BusinessDay gathered from the conference call held Thursday that the merger is now scheduled to be completed two months earlier than the previously stated transaction timeline.

Revenue collaborations are projected at N62.2 billion, of which N40.9 billion, accounting for more than 65 percent, is expected to come from enhanced product offering and cross-selling. Expanded digital channels are put at N8.4 billion; improved corporate and commercial share, N6.7 billion; while treasury sales and digital market expansion are expected to be N6.2 billion.

Responding to the new development, Ayodeji Ebo, managing

director, Afrinvest Securities Limited, said the projections are realistic considering the banks’ knowledge of the Nigerian market.

“It is not impossible to achieve the projections but there is need for the new entity to understand both Diamond and Access Bank customers,” Ebo told BusinessDay. Furthermore, cost synergies are estimated at N88.1 billion. This comprises consolidation of procurement and management facility with an estimate of N40.1 billion, representing 46 percent share; cost of funds reduction through lower deposit pricing and improved mix is projected at N21 billion; IT integration and consolidation, N12.6 billion; branch consolidation, N13.5 billion; while the synergy value of integration of support functions is

projected at N500 million.

However, there are some outstanding pre-merger events, including court ordered meetings expected to hold in February 2019, SEC and CBN approval expected to be obtained in March 2019, and a court sanction and deal completion by April 2019.

Overall, management expects that both firms will begin to operate as a single entity and integrate processes as from May 2019 and attain full integration by October 2019.

“There is need for key account officers of Diamond Bank to persuade their customers to stay with the new bank,” Ebo said.

On non-performing loans (NPLs) concerns, both banks highlighted that DIAMONDBNK’s Q3’18 numbers were adjusted to reflect additional impairment of N150 billion, placing its current NPL ratio at 40.4 percent.

Friday 25 January 2019

tablished minister of peace.

We have achieved gender equality in our government, we now have the first woman as the president of federal Supreme Court and recently our parliament has elected the first woman head of state in modern Ethiopia.

This is important progress but it’s not enough. Ethiopia is a large market of over 100 million people of which 60 million people are under the age of 24. With half a million school leavers annually, our core objective is to sustain fast pace economic growth and to create more and better jobs.

We must create the condition to enable democratic dividend and to harness the potential of our young and energetic population.

To do so, we have to invest in the aspirations of our youths by improving educational standard and create fresh opportunities through careful planning and strategic repositioning.

This requires an ignitable potential of the private sector.

Here are four steps that we are taking to make this not mere rhetoric but reality.

First, we will make it easier for small and medium enterprises to grow and flourish, since they are the engine room of our economy.

We are reprioritizing access to credit for SMEs and since, two-third of the SMEs now report having improved access to finance.

Secondly, we will ease mainstream regulations needed to start a business and provide a better policy environment.

We will make it easier to do business for everyone who wishes to invest in our country.

Ethiopia is undergoing significant institutional reforms and is reviewing its investment courts, commercial courts, and other business regulations to enhance the ease of doing business in Ethiopia and increase our global competitiveness.

Thirdly, we will make the private sector an integral part of our economy, as they should be.

Ethiopia is committed to reforming its state owned enterprises and crowd in more private capital.

We are committed to opening up the economy to international investors in telecoms, logistics, energy, aviation, railways and industrial parks.

This has the added benefit of creating the space to reallocate government expenditure to social services.

We are confident that international capital and expertise will deliver significant value for Ethiopians and contribute to our development agenda.

We will continue to foster public private partnerships, as we see this as more than merely a business proposition and a deal to be struck.

We see it as a way to build long term partnership aimed at triggering faster economic growth and profit.

At the same time, we will ensure our citizensrealizeourfullpotentialandlive

a prosperous, healthy and safe life.

We therefore look to the next generation of public private partnerships to be more balanced in delivering growth and delivering a fresh way to contemplate the relationship between business and government and offering the formula for growth and inclusiveness.

The third and final pillar of our renaissance is regional integration and openness to the world.

Regional integration and trade will be crucial to the future of our continent, allowing us to grow beyond primary commodities and accelerate our development.

Addis-Ababa is the seat of the African Union and so must lead by example.

Our determination explains our active engagement in discussions on the Africa continental free trade area and our sense of urgency to finalize Ethiopians ascension to the world trade organizations.

History has demonstrated time and again that neighbours with intimate robust and diverse trade in economic relations are unlikely to resort to conflict. That is why we believe integration must be viewed not just as an economic project but also as crucial to securing peace and security in the whole of Africa.

Ethiopia believes that an Africa at peace with itself can counteract the chaotic push of mass migration.

As such, Ethiopia aims to increase the influence of smart capital into the African continent.

There is a strong case to be made for investing in our continent.

Even the most conservative asset allocation of an investment portfolio should currently consider this option.

If just 2 percent of the $14 trillion US dollars in OECD pension assets were invested into Africa over the coming five years, it would exceed the total foreign direct investment that we have seen in the last five years by more than three times.

For investors considering return, this offers higher than average rewards and diversification of risk. For Ethiopia it would catalyze transformation. To realize this great opportunities, we appreciate the fundamental need to de-risk our politics and economy which would reduce the premium by prospective investors.

Part of that process is to build trust, confidence and lead by example.

I believe that our record over the last year shows this to be so.

Dear friends, let me conclude that Ethiopia has embraced a great vision and embarked on bold reforms, improving the political environment and business climate is our priority.

Building an open society and a vibrant economy is our shared aspiration and our proposition to you but we must all act fast.

I will recall over the last nine months, should elucidate our resolve

For the combined entity, this translates to a pre-merger NPL ratio of 14.1 percent based on 9M’18 numbers.

“Although management is currently unable to estimate the amount of NPLs that will eventually be transferred to the combined entity, it is optimistic of achieving a single digit NPL ratio by FY’19. It hopes to achieve this by additional write-off of fully provisioned facilities and aggressively pursuing recoveries through the year,” CardinalStone Research said.

Management suggested at the conference call that there is no more need for its initially proposed tier-1 capital raise through rights, as it believes it has sufficient retained earnings and tier-2 capital (over $250 million to be drawn down by Q1’19) to consummate the deal.

BusinessDayanalysisofthestrength of the new bank revealed that the merger would see the first-hand entity consolidate on individual strengths of bothbanks,emergingthebiggestlender with 15.9 percent market share of the banking sector by assets.

Also, the combination of Access Bank, which is a leading wholesale banking business, and Diamond Bank, a leading retail banking franchise in Nigeria, would take both banks up from the 4th and 7th places, respectively, as market’s largest recipient of deposits with the new entity dominating the market with a 14.8 percent share of total deposits.

With Access Bank’s 10 million customer base and Diamond Bank’s 19 million as at the end of the three months period to September 2018, the new entity would have a total of 29 million customers.

Friday 25 January 2019

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35

Sports

Analysing most valuable football players by valuation Stories by Anthony Nlebem

Gap between transfer fee paid and current estimated value (million €)

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ith less than four months to the end of the 2018/19 season, there have been some significant rise in the valuation of some players who joined in the summer transfer window, attributed to the scintillating performances that have impacted positively on their clubs.

Around £1.26billion was spent

by Premier League clubs in the summer transfer bringing in players from far and near as top-flight clubs attempted to improve their teams.

CIES Football Observatory, a research group, in its recent report reveals names of the most valuable soccer players in Europe’s best leagues.

The report shows players whose current estimated value exceeds the fee paid by recruiting teams during last summer.

Rodri Hernández, who moved to Atletico Madrid from Villarreal for a fee of €20million is estimated to be worth €70 million (+€45 million) tops the table for fee-paying transfers ahead of Arsenal’s Lucas Torreira, €30 million, now worth € 74 million (+€44m), while Emre Can who left Liverpool for Juventus on a free transfer (+€45m) heads the rankings for free agents ahead of Inter Milan’s Stefan de Vrij (+€39m).

Juventus and Liverpool are the only teams with three recruits in the top 20: Emre Can, Cristiano Ronaldo and João Cancelo for Juventus, as well as Xherdan Shaqiri, Alisson Becker and Fabinho Tavares for Liverpool. The excellent performances of both these players and their employer teams explain in large part the magnitude of the gap observed.

Here, we take a look at players whose valuations have increased since arriving England.

The Reds splashed some serious cash on the trio of Alisson, Xherdan Shaqiri and Fabinho in the summer transfer window, but the amazing thing is that these players have shown they are worth even more now.

Liverpool set a new transfer record for a goalkeeper when they signed Alisson from Roma for a whopping £67million ahead of the season.

Chelsea, who parted with £71million to land Spanish shotstopper Kepa Arrizabalaga, but the Liverpool transfer showed the Reds are one of the serious contenders for the Premier League title this season later beat this.

In addition to signing a new keeper, Jurgen Klopp also splashed out on £35million midfielder Fabinho and £13million Swiss international Xherdan Shaqiri.

These two transfers were considerably more modest - especially the acquisition of Shaqiri – that

showed the world that Liverpool have money to spend and can attract top players ahead of their Champions League rivals.

It’s not surprising for Liverpool supporters to learn that Shaqiri’s market value has increased since he signed for just £13million.

The 27-year-old has made an encouraging start at Anfield and has netted seven times in 23 appearances in all competitions for Liverpool.

According to experts at CIES Football Observatory, Shaqiri’s value has increased by £35.5million to £48.5m.

Fabinho has recently become an increasingly important part of the Reds’ first team, and again justifying the money Liverpool paid in the summer.

It is therefore not too shocking that his transfer value has increased reportedly by £41million, meaning he is now worth £76million.

Alisson has been a revelation since signing for Liverpool, but the extent to which his market value

has risen is incredible.

The report claims that the £67million keeper’s new value is £93million - a huge increase of £26million.

Hardly new to the Premier League, the former Stoke City star has raised his performance levels since making the summer switch to Anfield.

The Switzerland international has either scored or assisted in five of Liverpool’s last six matches, leading many supporters urging Jurgen Klopp to keep him in the starting XI. Of the five players signed by Arsenal in the 2018/2019 summer transfer, the valuation of Lucas Torreira, who moved from Sampdoria for a fee of £26.4 million and Matteo Guendouzi, £7 million move from FC Lorient have increased significantly.

These players have continued to impress since joining the London side club.

Arsenal spent sensibly in the summer and landed a selection of little-known players ahead of Unai

Emery’s very first season in charge.

The Gunners splashed out a combined £34.5million on the midfield duo, and, as a result, the pair didn’t have bags of pressure on them to set the world alight this season.

But both Torreira and Guendouzi have racked up a lot of minutes for Arsenal this campaign and were both heavily involved in this weekend’s win over Chelsea.

In fact the pair represents the new direction Emery is trying to take the Gunners in, and Arsenal fans can expect other signings in their mould in the coming years.

The footballing world would agree that the comparatively small fee Arsenal spent on the midfielders makes them very good signings.

But the extent to which their market value has now risen, according to the experts at CIES Football Observatory, suggests they were extremely good signings.

To r re i r a w a s s i g n e d f o r £26.5million while Guendouzi joined the Gunners for £8million.

Guendouzi, the 19-year-old midfielder capable of dictating play with his excellent passing range, has settled quickly in north London.

Impressive showings in defeats against Manchester City and Chelsea showed Guendouzi could hold his own in the Premier League, with Gunners fans voting him their Player of the Month for August.

After beginning the season on the bench, Torreira is now one of the first names on Unai Emery’s team-sheet.

Standing only 5’6, the 22-yearold is excellent at snuffing out danger and providing his defence with cover, but he is also a calm distributor of the ball, offering the Arsenal midfield a new dimension they have lacked since the days of Gilberto Silva.

Moses free to return to Super Eagles - Rohr

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uper Eagles technical adviser, Gernot Rohr, said the door is still open for Victor Moses to make a come back to the national team, but warned that he must show commitment and fight for shirt.

Rohr made the comment on the sidelines of the Nigeria Professional Football League (NPFL) Match Day 4 between MFM FC and Rangers International FC of Enugu.

Super Eagles gaffer was on the stands to watch out of outstanding players among the NPFL players.

On Moses comeback to the team after announcing his premature retirement after the World Cup in Russia, Rohr said he appreciate Moses quality as a winger.

“Victor Moses is a player with

lots of quality but stopped playing for the National team after the World Cup. We have to respect his decision not to play again.

“If he wants to come back to the team, it is okay but he must show a lots of motivation, he must show that he is fit to play for the team because we have other players playing well in his position now.

“Moses has to be strong to come back to the team because we have more options on the wings now like Samuel Kalu, Samuel Chukwueze, Alex Iwobi and Ahmed Musa. All these players are on his wings.

“Victor Moses comeback is a good news for us,” he said.

Rohr said that he would present the fittest team in the last match of the AFCON qualifiers

against Seychelles and the friendly match against Egypt.

“We will invite players that are 100% for the AFCON qualifiers against Seychelles and the friendly match against Egypt. The best of them will play the Match.

“With the level at which some of the players are now in their different clubs, I believe they should turn that form to the national team.

“For the local based players the ones that are good among them will surely be invited to the team.

I regret that the league had a long break after the last season which affected the fitness of the players.

“But now that the league is on, myself and my assistants are here to watch out for the outstanding ones that can make the team,” he said.

36

BUSINESS DAY

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Friday 25 January 2019

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$94bn agric sector potentials struggle with faulty value chains Farmcrowdy identified in ‘Companies to Inspire Africa 2019’ CALEB OJEWALE

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Twiiter: @calebtinolu

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i g e r i a ’ s agriculture value chain holds enormous wealth even though it has been bedevilled with myriads of risks. However, as old a tale as it sounds, how can it be fixed? This is a 94-billiondollar-question, considering the value of agriculture at an estimated 25 percent of Nigeria’s GDP, which does not even fully reflect how much can be made from agriculture when the value chains are fixed.

“Without fixing the value chains, agric finance will be elusive,” said Adewale Raji, group-managing director/ CEO, Odu’a Investment Company in a presentation at the Agrifin conference in November 2018. Raji, whose company has significant investments in agriculture, had explained that in order for agriculture to become an integral part of driving economic growth, the sector needs to unlock more finance, which will remain elusive as long as it is perceived risky on account of faulty value chains.

As Nigeria earnestly yearns for investments, both local and foreign, the potentials in agriculture remain under explored. Agriculture in Nigeria is still viewed through the lens of subsistence farming, where it appears there is dearth of innovation to rapidly create value and wealth.

U z o m a D o z i e , C E O, Diamond Bank, told BusinessDay that “With the value chain fixed,” there would be a bright future in agriculture.

While he said his bank has been lending to agriculture for a long time, it has been more from a large-scale perspective, not the primary end. He however expressed optimism in going all the way down to the smallholder farmers if the value chain fixes being promoted for instance, by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) can take effect.

Bolarin Omonona, an agricultural economist at the University of Ibadan, who also made a presentation at the Agrifin conference, described an agricultural value chain as the activities that bring a basic agricultural product from obtaining inputs and production in the field to the consumer, through stages such as processing, packaging, and distribution. It represents a key framework for understanding how a product moves from the producer to the customer.

According to him, the value

chain perspective provides an important means to understand agribusiness relationships, mechanisms for increasing efficiency and ways to enhance productivity.

For Raji, links in the agric value chain, from farm to fork - input supply, production, post harvest handling, trading, processing, trading, retailing, consumption – all need to be fixed.

Omonona highlighted different activities/actors in the value chain, which include; • Farmers and small agricultural entrepreneurs: producers and small entrepreneurs such as suppliers of inputs • Actors along the value chain involved in: assembling, processing, storing, transportation, etc.

• Rural infrastructure: rural transport systems, irrigation systems, water supply, electricity, storage and telecommunication facilities • Research and Development (R&D): especially in developing new products • E x c h a n g e t h ro u g h marketing (wholesaling and

retailing) At present, a holistic value chain overhaul is required, to create an agric sector where real value is created along different segments. As emphasised by Dozie when asked what will attract his bank to do more, there have to be more investments in storage, processing, and even availability of farm equipment which improve the odds that farmers who take loans will indeed have an easy access to the market, and be able to pay back promptly.

For Goddie Ibru, principal, G.M. Ibru & Co, the significant returns and stable growth that agriculture provides to investors in other climes, is not being taken advantage of by the Nigerian financial sector. “And that makes all of us poorer,” he said.

As Raji noted, improving the agric value chain will require increased dialogue and collaboration among leaders from government, civil society and the private sector.

“We have no choice than to fix agric (value chains) and for agribusiness to be viable,” he said.

Nominations Open for 2019 Africa Food Prize

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ominations have opened for the 2019 Africa Food Prize, an award that recognizes individuals and institutions that are leading the effort to change the reality of farming in Africa—from a struggle to survive to a business that thrives.

The US $100,000 prize celebrates Africans who are taking control of the continent’s agricultural agenda. It puts a spotlight on bold initiatives and

technical innovations that can be replicated across the continent to create a new era of food security and economic opportunity for all Africans.

Agriculture is Africa’s largest economic sector, representing 15 percent of the continent’s total GDP. The industry employs about 70 percent of the continent’s population with smallholder farmers contributing up to 80 percent of the food consumed in the continent.

This is not withstanding t h e p e r e n n i a l u n d e rutilisation of the vast resources in the continent, including over 600 million hectares of uncultivated arable land - 60 percent of the global total. A direct consequence of this underexploitation of resources is the inability of Africa to produce enough to feed its ballooning populations l e a d i n g t o a c o n s t a nt reliance on international aid.

The Africa Food Prize recognizes the efforts of all those that are converting these challenges into opportunities to create wealth and jobs for the continent, its economy and people. Deadline for nominations is Tuesday, May 14, 2019 and the winner will be announced at a high-profile award ceremony at the African Green Revolution Forum (AGRF) this September in Accra, Ghana.

armcrowdy, a digital agriculture platform in Nigeria has been identified by the London Stock Exchange Group as one of the Companies to Inspire Africa in 2019. The report is a celebration of Africa’s innovative and most dynamic growth businesses.

To be included in the list, companies needed to be privately held, and show an excellent rate of growth and potential to power African development. More detail on the methodology can be found in the report online at www.lseg.com/ inspireafrica.

When contacted about the selection at their Lagos office, Onyeka Akumah, Founder and CEO of Farmcrowdy said the past 26 months have been a life-changing journey for t h e Fa r m c row d y t e a m after launching what he described as Nigeria’s first digital agriculture platform focused on growing the income of over 10,000

farmers by 80 percent across Nigeria. “ We a re i m m e n s e l y proud of the role we have played in the growth of Nigeria’s agritech sector, and are humbled at the support and the opportunities we have received - locally and internationally to showcase our work,” said Akumah.

He expressed delight at the “recent spring up of startups following in Farmcrowdy’s footsteps in empowering rural farmers and improving food security in Nigeria.”

T h e L S E g r o u p’s report was produced in partnership with the African Development Bank Group, CDC Group, PWC and Asoko Insight, while Instinctif Partners and Stephenson Harwood sponsored it.

To find out more about the London Stock Exchange Group’s Companies to Inspire Africa 2019’ report pleas e visit ls e g.com/ inspireafrica.

Inclusive digital innovation required to drive agricultural productivity - FAO

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ccelerating innovations in agriculture, more so in a way that can improve the lives of hundreds of millions of people who produce the bulk of the world’s food on family farms, is a goal that has to be achieved soonest, José Graziano da Silva, FAO Director-General, has said.

“FAO is working with digital innovations, providing new inputs for farmers in rural areas. We need good governance and the right policies to support that,” he told agriculture ministers from more than 70 countries and officials from organizations i n c l u d i n g t h e Wo r l d Bank, the Organization for Economic Cooperation and Development and

the African Development Bank, gathered for a highlevel meeting in Berlin.

Assuring that transformative digital technologies leave no one behind means finding ways to allow rural smallholders, including young people, to tap into them, boost their productivity and improve their market access, he told the officials attending the Global Forum for Food and Agriculture, which t hi s year f o cus e d o n the potential of digital technology’s contributing to the future of farming.

Digital technologies allow, “scale without mass”, which can enhance smallholders’ access to markets, which is fundamental, he said.

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BUSINESS DAY

CUPP hails Appeal Court ruling restraining CCT from hearing Onnoghen’s case OWEDE AGBAJILEKE & FELIX OMOHOMHION

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oalition of United Political Parties (CUPP) has hailed the ruling of the Court of Appeal in Abuja for restraining the Code of Conduct Tribunal (CCT) from proceeding with the false assets declaration case filed against the Chief Justice of Nigeria, Walter Onnoghen.

A statement on Thursday by CUPP spokesperson, Ikenga Ugochinyere, described the Judiciary as the last hope of the common man.

NSACC to hold breakfast forum in Lagos

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igeria-South Africa Chamber of Commerce (NSACC) will hold its January 2019 breakfast forum scheduled for January 31, at the Orchid Hall, Eko Hotel and Suites in Victoria Island, Lagos, by 7.30am.

Executive secretary/CEO of Nigeria Investment Promotion Commission (NIPC), Yewande Sadiku, will be the guest speaker for this month’s edition.

Sadiku, an experienced investment banker and investment promoter for Nigeria, will share insights on the topical issue: “The True Situation of Investment Promotion in Nigeria Today and Prospects for the Future” given the dynamics of investment promotion in our ever evolving society. The executive secretary, Iyke Ejimofor, says the event is primarily for captain of industries, business owners and top level executives as well as other interested parties.

Ejimofor says the chairman of the Chamber, Foluso Phillips and other executive directors are expected to attend the forum, noting that as in previous times, this edition will be educative and also insightful.

Ejimofor, on behalf of the Chamber, encourages everyone who wants to grow and strengthen his or her business or gain insights on how to thrive globally to make effort to attend. He expresses that the meeting is a “great door opener and participants will benefit in many ways, including: finding personal contacts for future follow up and initiate new vendor relationships, and so on.”

Since the inauguration of the Nigeria-South Africa Chamber of Commerce in 2000, the bilateral relation between both countries has grown tremendously. The Chamber has been a veritable economic tool responsible for the increment in trade between Nigeria and South Africa.

“The opposition sees the ruling as victory for democracy and rule of law and a fatal blow to the APC political barbarians who are desperate to annex the Supreme Court to the list of their already destroyed national institutions. We advise APC to build a private court for their members, as the Nigerian court cannot be intimidated to submit to the leadership of the outgoing ruling APC. “The opposition coalition stands for the independence of the judiciary and will fight with their last drop to protect such sacred institutions from being destroyed,” the state-

ment read.

Court of Appeal sitting Abuja directed the CCT to stay proceedings in the trial of Onnighen, pending the determination of suit filed before it by the CJN. The Federal Government arraigned Onnoghen before the CCT on alleged refusal to disclose some of his bank accounts. The Danladii Umarled CCT ruled last Tuesday to continue with Onnoghen’s trial, refusing to accept various interim injunctions by federal high Court.

However, yesterday, a three-member panel of the Appeal Court granted the

interim order, pending the ruling on a suit filed by Onnoghen, challenging order of the CCT to try him The appellate court ordered the tribunal to in the interim stands down the matter till January 30, a date it fixed to deliver ruling on an appeal before it by the CJN The directive by the Justice Abdul Aboki three-member panel followed the submissions by counsel to both the applicantn and respondent.

The applicant lawyer, Wole Olanipekun, who led 18 other Senior Advocates of Nigeria, traced the history of the case for the appellate

court panel.

Olanipekun told the appellate court that the Federal Government had on January 11, through the Code of Conduct Bureau (CCB), commenced what it termed as investigation of information contained in the assets declaration forms that were submitted by by the CJN. He said: “My lords, on that same day, the charge was filed before the CCT. By the next Monday being January 14, the tribunal issued a summon for the Appellant to appear. On that same day, the Appellant filed an appeal to challenge jurisdiction of the

Tribunal.

“Likewise, the respondent, on the same day, filed a motion asking the applicant to step aside from office pending the determination of the substantive trial and for President Muhammadu Buhari to be compelled by the tribunal to swear in the most senior jurist of the Supreme Court as the acting CJN”.

He said in view of the development, the tribunal, on January 14 which was the first day the case came up before it, ruled that it would take both the applications by the CJN and that of federal government together.

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L-R: Idris Salihu, head, corporate services, Development Bank of Nigeria (DBN); Tony Okpanachi, managing director/CEO, and Tunji Olugbodi, executive vice chairman, Verdant Zeal Group, at the Development Bank of Nigeria media interactive forum in Lagos, yesterday.

Pic by Olawale Amoo

New Minimum Wage Bill scales Second Reading in Senate … as FG proposes N27,000 for workers … Senate adjourns till February 19 OWEDE AGBAJILEKE, Abuja

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ontrary to reports that the Federal Government proposed a new minimum wage of N27,000 for state government workers and the private sector, and N30,000 monthly for federal workers, the Senate on Thursday clarified that the government proposed N27,000 minimum wage for workers across board.

Deputy Senate president, Ike Ekweremadu, made the clarification during the Second Reading of the New Minimum Wage Bill, saying the bill forwarded by President Muhammadu Buhari to the National Assembly proposed N27,000 for both federal and state workers.

This comes as the upper legislative chamber constituted an eight-man committee to work on the bill.

The committee, chaired

by Senate chief whip, Sola

Adeyeye (APC, Osun State), has two weeks to submit its report.

In a rare move, the Senate suspended its standing rules and immediately commenced the First, Second Reading of the bill and after which it was committed to an ad-hoc committee for further legislative work, all at one sitting.

The deputy Senate president, who presided over plenary, noted that the Senate decided to give the National Minimum Wage Bill presented to it by the President accelerated consideration due to its importance.

He, however, objected to a clause in the bill, which exempted the proposed new minimum wage to establishments employing less than 25 workers.

Speaking after the bill passed Second Reading, he said: “The other issue of concern to me is the exemption to organisations employing

less than 25 persons. So, if that scales through, and I hope it does not, it means that a whole number of our workers will be outside the minimum wage bracket. That includes our domestic servants because I am not aware of how many people are employing 25 domestic servants. That includes drivers and so many other people.

“In most other countries, minimum wage applies across board whether you are employing one person or one million people. But these are things, I believe during the public hearing, we will find a way of settling.”

Other members of the Committee are: Abu Ibrahim (representing Committee on Labour), Shehu Sani (representing North West), Sam Egwu (South East), Suleiman Adokwe (North Central), Francis Alimikhena (South South), Solomon Adeola (South West), and Binta Garba Masi (North East).

In their separate contributions during the debate, senators like Shehu Sani, Sam Anyanwu, submitted that the proposal should be increased to N30,000 monthly.

On Tuesday, it was reported that the National Council of State had approved the new minimum wage N27,000 for state government workers and the private sector as well as N30,000 for the federal workers and mandated the President to forward executive bill to the National Assembly.

The development comes as the Senate adjourned plenary to February 19, 2019, without considering the N8.83 trillion 2019 budget.

Ekweremadu, who made the announcement at plenary on Thursday, revealed that sitting would resume three days after the forthcoming Presidential and National Assembly elections, billed for February 16, 2019.

NDIC remits N7bn operating surplus for 2018 ONYINYE NWACHUKWU, Abuja

N

igerian Deposit Insurance Corporation (NDIC) has remitted N7 billion to the federation’s consolidated revenue account as its operating surplus for 2018 in line with the Fiscal Responsibility Act. Umar Ibrahim, NDIC managing director/CE, confirmed the remittance on Thursday in Abuja at the inauguration of newly appointed NDIC board members by the minister of finance, Zainab Ahmed.

Umar said the fund was the Corporation’s normal contribution as required by the Fiscal Responsibility Act, and he was hopeful that they would exceed this amount in 2019, particularly with the new board.

The board was being reconstituted almost four years

after its dissolution by President Muhammadu Buhari in 2015. At the brief event, the finance minister noted that the board was being inaugurated amid myriad of challenges in the financial system, which required capable hands to fix as she urged members to exhibit high ethical values in the discharge of their responsibilities.

“You are assuming duty at a time when the Nigerian financial system is still facing some challenges and requires efforts aimed at addressing issues such as corporate governance, high level of non- performing loans, etc. You are also coming at a time when the system is grappling with the issues related to meeting the target of reducing financial exclusion in Nigeria to about 20 percent by year 2020,” she told them.

According to her, the po-

tential benefits and risks associated with the financial technology and block chain technology are also on the front burner.

“These and other challenges can cause threats to the stability of our financial system and must be addressed promptly for the sector to play its role in facilitating the implementation of the Economic Recovery and Growth Plan (ERGP),” the minister said.

The senate had last December, confirmed the appointment of Ronke Sokefun as chairman of the Board of the NDIC as well as Festus Keyamo, Garba Bello, Josef O. J. Okoloagu, Mustapha Adewale Mudashiru, Adewale W. Adeleke as members.

The minister told the board members that she was confident of their capacity to han-

dle present challenges, urging, “I implore you to familiarise yourselves with your roles in order to provide conducive atmosphere that would ensure a harmonious working relationship with the management.

“I do not expect you to interfere in the day to day running of the organisation but to be guided strictly by the extant laws, rules, and regulations governing the organisation.

“I also expect you to ensure prudence in the management of the organisation’s resources in line with the policy direct of the President Buhari’s administration.” Responding on behalf of her board members, the new chairman, Ronke Sokefun assured the Minister that they would bring their experience to bear to ensure that the corporation’s overall mandate is delivered.

@Businessdayng

Friday 25 January 2019

Obi says 80% of Nigeria’s bad debt owed by 350 Nigerians IDRIS UMAR MOMOH /CHURCHILL OKORO

V

ice Presidential aspirant of the PDP, Peter Obi, has lamented the funding of the nation’s Small and Medium Enterprises (SMEs) and noted that 80 percent of bad debts are being owed by only 350 persons in the country.

Obi, who spoke at an interactive session with stakeholders, organised private sector, civil society and members of the party in Benin City, Thursday, said if elected into power alongside Presidential aspirant Atiku Abubakar, their administration would work to ease the access to finance for SMEs and rein in on corrupt practices.

“We will work with you, the organised private sector to ensure that the intervention funds are accessible to SMEs. In doing this, we will create an economy that will create jobs. SMEs are the biggest engine of job creation anywhere in the world.

“We are talking about creating jobs. You can’t create job in a country where 80 percent of total bad debts in Nigeria is being owed by only 350 persons, by this there is no way you can create jobs in that economy.

“SMEs, having about 5 percent of the total debts, so there is no way you can fund them. Out of N20 trillion that is being owed to the banks 80 percent, which is N16 trillion, is owed by 350 persons. That represents to N45 billion for each person. While 5 percent, which is N1 trillion is being owed by 37 million persons, representing N37,000 per per-

sons,” he said.

The vice presidential hopeful said as a deliberate policy to put an end to incessant strike in the public tertiary institutions in the country the PDPled Federal Government, public tertiary institutions would be supported and encourage to generate their own revenue.

He also promised that the party will establish a loan scheme system for students to access to be able to fund their education while investing massively on universal basic education to build Hamm capital development of youths and address illiteracy.

He added that over 40 percent of young Nigerians were unemployed and that had led Nigeria to become the capital of the poorest people in the world.

“Nigeria has been shutdown economically, politically and socially for over three years and has resulted to hunger, insecurity, and economic instability, especially in the North Eastern part of the country,” he said.

He explained further that the government of Atiku and Obi would bring back foreign investors to develop the economy, mostly those who had closed their businesses for the fear of kidnapping, banditry, and insurgency as a result of government inability to provide security for the citizenry.

He however urged Nigerians to vote for PDP candidates in all in the elective positions, noting that it was only the party that could get Nigeria working again, as the incumbent government had failed to address the country’s socioeconomic, security challenges.

Nigeria missing in World’s 60 most innovative countries list … South Africa, Tunisia join league BUNMI BAILEY

D

espite being the largest economy in Africa, Nigeria did not make the list of the top 60 most innovative countries in the world, unlike South Africa (SA) and Tunisia, a BusinessDay analysis shows.

Data from the 2019 Bloomberg Innovation Index show that SA and Tunisia ranked 51 and 52 position, scoring 51.3 and 48.9, respectively in 2018.

The Annual Index, in its seventh year, analyses dozens of criteria using seven metrics, which are research and development intensity, manufacturing value-added, productively, high-tech density, tertiary efficiency, researcher concentration and patent activity.

The Index analysed 200 economies. Each was scored on a 0 -100 scale based on seven equally weighted categories. Nations that did not report data for at least six categories were eliminated,

trimming the total list to 95.

Bloomberg published the top 60 economies, which did not include Nigeria.

Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers, said Nigeria had an underdeveloped technological environment in terms of the ability of especially the youth to be able to use their knowledge and bring about real inventions that would simplify processes in the ease at which things were being carried out.

“If you look at what Nigeria allocates to the education sector, especially the capital expenditure part, it is not sufficient. These two other countries allocate enough and invest in human capital to bring about innovations and inventions,” Ologunro said to BusinessDay in a telephone interview Innovation is the introduction of new or significantly improved goods or services to the market, or the use of new or significantly improved processes for producing goods and services.

Friday 25 January 2019

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Apapa residents vow to sue NPA, shipping companies if...

JOSEPH MAURICE OGU & TEMITAYO AYETOTO

... give government 21-day ultimatum

esidents of Apapa, Nigeria’s premier port city, have vowed that if in the next three weeks, the Nigeria Ports Authority (NPA) and owners of shipping companies fail to respond to the call for heavy-laden trucks and tankers to vacate access routes into Apapa, the next line of action will be a legal suit.

The residents under the aegis of Apapa Residents Association (ARA) made this vow during a solidarity protest backed by Surulere and Ajegunle communities, adding that they would go beyond the legal action to embark on naming and shaming of authorities and individuals found to be responsible for “crippling businesses other than shipping, collapsing the bridges by instalment and pauperising aging property owners.

“There can only be one outcome and that is the col-

lapse of the bridges. It seems there is a conspiracy between the federal government, NPA and the shipping companies to force Apapa residents out.

There is no other logical explanation to why the bridges and roads leading to Apapa have been left in the manner they are despite all the professional advice,” said Sola AyoVaughan, chairman ARA. “If in 21 days the situation remains the same, we shall sue NPA and all the shipping companies,” Vaughan said.

The residents, fed up by the tightening up of access routes into their community and the devastating effects on their lives, launched a protest last month and promised to return to the streets until a substantial change is affected.

A month after the protest, the residents continue to groan under the pains of being fenced by heavy-laden trucks as government failed to respond. Part of the grievances expressed by the asso-

R

ciation include the fact that businesses in hospitality, real estate, education, malls and super-market among others have either been ruined or relocated from Apapa, with close to 50,000 jobs lost in the process. Entry and exit into the area, residents say, have been a nightmare for too long.

Their worst fear is that the unabated abuse of the bridges signposts imminent collapse, which could completely paralyse the hope of living in Apapa. “If any of these bridges collapses, Apapa will seize to exist to the residents,” Vaughan said.

The protesters marched round Apapa town towards the Police Area Command, Area ‘B,’ Apapa, where they read and submitted their petition to the area commander, Mohammed Ahmadu.

Organisers of the protest said it was aimed to inform the government of the displeasure and pain that the residents have been go-

ing through as a result of the gridlock. They informed BusinessDay that they held a press conference last December, where they issued ultimatum urging the government to address the gridlock in Apapa and its environs.

Veronica Chaka-Awatai, one of the residents, lamented how the Apapa gridlock was threatening their lives while government allegedly abandoned them to their fate.

“What’s happening here isn’t agreeable; we’re tired and fedup. We have no life and the government has no interest in our plight,” Chaka-Awatai said.

The letter, titled ‘Apapa, Surulere and Ajegunle Communities protest’ was signed by the chairman, Vaughan, and addressed to the president, Muhammadu Buhari.

The residents demanded the immediate removal of trucks and fuel tankers from the bridges as well as all the access roads in Apapa and its environs.

L-R: Abiola Adekoya, CEO, RMB Nigeria Stockbrokers; Doyin Salami, economist/senior lecturer, Lagos Business School (LBS), and Akin Olawore, president/chairman, Nigerian – British Chamber of Commerce (NBCC), at the panel session on 2019 Economic Outlook by NBCC in Lagos, yesterday.

@Businessdayng

39 NEWS

BUSINESS DAY

Tendai Mhizha appointed Insight Publicis new MD

A

s part of its drive to lead and build sustainable businesses, the Insight Redefini Group has announced the appointment of Tendai Mhizha as managing director of its flagship creative ideas hub, Insight Publicis.

With full responsibility to navigate the Insight Publicis business, Mhizha will play a key role in meeting the business acceleration agenda set by its directing company, Insight Redefini Group.

Ken Onyeali Ikpe, group managing director/CEO of the Insight Redefini Group, said the appointment of Tendai Mhizha “is extremely strategic when juxtaposed with our goal to lead with top talents, especially as we focus on building more strategic and agile businesses in order to deliver consistent value to clients”.

“Her track record, diversified experience, and impeccable knowledge of how to build brands and businesses are simply outstanding, and we are excited to have her on board. She brings with her an aligned ambition to become a business pathfinder, which will be vital in growing with our clients,” Ikpe said.

Mhizha has degrees from six different countries, including a PhD in Business Science from the University of Derby, UK, and brings with her 25 years’ leadership experience and knowledge in pan-African strategy and general management, marketing, branding and market research.

Mhizha has worked for the Edgars Group, Wella and within the Global WPP group. She has also led 25-year-old pan-African market research agency, Research Bureau International.

IFC commends Edo for stimulating private s ector-led economic growth

I

nternational Finance Corporation (IFC) has commended Edo State governor, Godwin Obaseki, for his commitment to promoting economic development through partnership with the private sector.

IFC vice president, Middle East and Africa, Segio Pimenta, said this during a business meeting between the IFC officials and the state governor, at Government House, in Benin City, Edo State.

Pimenta said the organisation had heard of all the good works the governor was embarking on and what the administration was doing to develop the state and its economy, geared towards making life better for the people of the state.

He said the organisation was supporting progressive states doing well in various areas, with education as one of the major areas of focus, noting, “Education is one area the state is getting our fundamental support. We look at human capacity index focusing on how we can help build human capacity in countries and states we operate in. This is responsible for the collaboration with Edo Basic Education Sector Transformation (EDOBEST) programme and BRIDGE.” He assured that the organisation would continue to support the state government’s educational programmes.

Governor Obaseki thanked the delegation for the commendation and the IFC’s support, noting that his administration in 2019 was focused on the Benin Industrial/Enterprise Park and Free Trade Zone, Oil Palm production and education to drive sustainable economic development.

AXA Mansard partners Techpoint Africa to host Techpoint Build 2019 NFIU tasks ABCON on engagement of BDCs on anti-money laundering reporting

A

XA Mansard, a member of the AXA Group, a leader in insurance and asset management, is set to partner Techpoint Africa to organise Techpoint Build 2019.

Techpoint Build is the largest local tech conference and exhibition connecting tech lovers, start-ups, technology companies and SMEs from various industries across Nigeria and other neighbouring countries.

This year’s edition will hold January 26, 2019.

This partnership is in line with AXA Mansard’s commitment to continue to lead in innovation and provide easy, convenient and effective technology-driven solutions to customers at all times. Key activities at the

event will include a Pitch Storm where start-ups can present their businesses to seek funding, discussion forums and workshops on how to successfully run and sustain a business, SME training and exhibitions for businesses.

AXA Mansard’s chief digital officer, Bayo Adesanya, will be one of the speakers at the event, expected to host over 5,000 attendees, 300 start-ups and about 50 investors.

Commenting on the initiative, Adesanya, notes, “Financial institutions need to make a deliberate effort to engage the youth segment and SMEs. The way to achieve this is to ensure that their exact needs are catered for and we fit into their lifestyle by developing innova-

tive, technology-driven tailored products.”

Technology continues to play a pivotal role in building businesses regardless of size, developing various sectors and the Nigerian economy at large. It has influenced the way we communicate, interact, work and do business and consequently has significant influence the future.

Adesanya also adds, “We recognise the far-reaching positive effects the growth of Tech SMEs will have on our economy. As a leading nonbanking financial institution, our resolve to continue to partner with millennials and SMEs remains unshaken.

“We also wish all the participants of the Pitch Storm the best as they compete to win prizes that will positively impact their businesses.

HOPE MOSES-ASHIKE Buhari inaugurates CBN project at UNEC Enugu HOPE MOSES-ASHIKE President Muhammadu Buhari on Thursday inaugurated a world-class PostGraduate Centre of Excellence at the University of Nigeria, Enugu Campus (UNEC), constructed and donated by the Central Bank of Nigeria (CBN), which he lauded for making huge investments for the overall development of the country.

The Post-Graduate School project comprises a Faculty building and a 133room hostel, as well as a 500-seater auditorium, four lecture and four tutorial rooms, traditional and e-libraries, and a tele-presence room.

Speaking shortly before he unveiled the commemorative plaque and cut the ceremonial tape to formally inaugurate the building, President Buhari said the construction of the project by the CBN had also underscored the Federal Government’s commitment to provide a conducive environment for learning at all levels of education.

The President said his administration placed premium on education to ensure, among other things, its affordability, stressing that education remained the bedrock of societal progress.

While stressing that the Federal Government would not rest on its oars in boosting the quality of education, he urged the CBN to go beyond providing physical in-

frastructure to the university to increasing partnership with the institution in terms of funding support.

Earlier in his welcome remarks, the Governor of the CBN, Godwin Emefiele disclosed that the aim of the Bank, being a knowledgebased and visionary institution, was to build human capacity for the financial system in particular and the economy in general.

He said the project was mainly to ensure that students at post-graduate levels in Economics, Accounting, Banking and Finance, Business Administration and Statistics study in a serene environment that would stimulate effective learning with a view to building human capacity for the financial services sub-sector.

40

BUSINESS DAY

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Friday 25 January 2019

Prices for Securities Traded as of Thursday 24 January 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 173,567.83 6.00 6.19 189 11,680,766 UNITED BANK FOR AFRICA PLC 247,945.80 7.25 0.69 331 31,640,201 695,432.34 22.15 0.68 458 36,473,132 ZENITH BANK PLC 978 79,794,099 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 272,804.23 7.60 2.70 198 28,992,250 198 28,992,250 1,176 108,786,349

BUILDING MATERIALS DANGOTE CEMENT PLC 3,271,777.42 192.00 1.05 41 324,944 LAFARGE AFRICA PLC. 108,417.85 12.50 -0.40 94 2,791,380 135 3,116,324 135 3,116,324

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 317,760.06 540.00 - 42 519,316 42 519,316 42 519,316 1,353 112,421,989 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 78,220.62 82.00 - 31 278,561 OKOMU OIL PALM PLC. PRESCO PLC 60,000.00 60.00 - 24 582,878 55 861,439 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,500.00 0.50 -1.96 14 434,275 14 434,275 69 1,295,714

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 820.66 0.31 - 7 23,657 186.79 0.48 - 4 20,760 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 0 0 51,216.47 1.26 -1.56 148 19,214,077 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 24,779.15 8.60 1.18 65 669,054 224 19,927,548 224 19,927,548 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 36,960.00 28.00 -1.41 15 177,388 ROADS NIG PLC. 165.00 6.60 - 0 0 15 177,388 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,287.35 1.65 - 5 3,615 5 3,615 20 181,003

AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,448.90 1.59 2.58 3 150,982 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 155,517.18 71.00 - 23 40,932 INTERNATIONAL BREWERIES PLC. 260,024.82 30.25 - 2 2,000 NIGERIAN BREW. PLC. 638,952.47 79.90 -0.12 53 581,911 81 775,825 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 32,500.00 6.50 -0.76 50 970,831 DANGOTE SUGAR REFINERY PLC 174,000.00 14.50 0.34 55 5,689,983 FLOUR MILLS NIG. PLC. 80,367.44 19.60 0.77 73 1,439,203 HONEYWELL FLOUR MILL PLC 10,229.95 1.29 4.88 20 1,062,426 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 703.89 3.95 - 0 0 NASCON ALLIED INDUSTRIES PLC 47,689.89 18.00 - 23 153,301 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 221 9,315,744 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,782.02 10.00 - 37 4,383,584 NESTLE NIGERIA PLC. 1,149,351.57 1,450.00 - 68 157,745 105 4,541,329 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,680.24 4.49 - 29 345,298 29 345,298 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 47,050.15 11.85 - 43 293,041 UNILEVER NIGERIA PLC. 212,565.20 37.00 - 20 88,530 63 381,571 499 15,359,767 BANKING DIAMOND BANK PLC 48,636.82 2.10 0.48 58 15,653,781 ECOBANK TRANSNATIONAL INCORPORATED 258,728.67 14.10 0.71 41 2,407,064 FIDELITY BANK PLC 66,352.29 2.29 -0.44 156 19,318,060 GUARANTY TRUST BANK PLC. 988,887.62 33.60 1.82 246 12,263,770 JAIZ BANK PLC 15,616.05 0.53 -3.64 7 332,566 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 62,187.30 2.16 0.93 24 658,833 UNION BANK NIG.PLC. 179,092.63 6.15 -8.89 32 284,054 UNITY BANK PLC 10,520.40 0.90 3.45 12 660,675 WEMA BANK PLC. 24,687.66 0.64 3.23 40 2,771,335 616 54,350,138 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,573.93 0.66 - 17 325,502 AXAMANSARD INSURANCE PLC 21,000.00 2.00 7.53 11 508,652 CONSOLIDATED HALLMARK INSURANCE PLC 2,660.00 0.38 - 1 704 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,093.20 0.21 5.00 10 3,606,628 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 1,412.20 0.23 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,270.26 0.31 - 10 1,443,250 LAW UNION AND ROCK INS. PLC. 2,148.17 0.50 - 2 15,000 4,960.00 0.62 -8.82 26 1,912,299 LINKAGE ASSURANCE PLC MUTUAL BENEFITS ASSURANCE PLC. 1,600.00 0.20 -4.76 20 3,439,000 NEM INSURANCE PLC 12,620.40 2.39 -1.67 31 984,180 NIGER INSURANCE PLC 1,857.48 0.24 - 8 371,272 PRESTIGE ASSURANCE PLC 2,798.93 0.52 - 0 0 1,400.44 0.21 -4.55 7 397,622 REGENCY ASSURANCE PLC SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 -4.76 11 1,481,227 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 1 100,000 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 1 200,000 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 1 450,000 VERITAS KAPITAL ASSURANCE PLC 3,328.00 0.24 9.09 1 240,000 WAPIC INSURANCE PLC 5,353.10 0.40 -2.44 24 526,183 182 16,001,519

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 3,612.89 1.58 5.33 13 511,853 NPF MICROFINANCE BANK PLC 13 511,853 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,922.05 1.42 - 1 188 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 2,265.95 0.20 -9.09 21 6,700,200 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 22 6,700,388 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,400.00 4.20 3.45 41 848,698 CUSTODIAN INVESTMENT PLC 38,232.12 6.50 - 9 118,927 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 38,813.31 1.96 2.08 135 19,997,824 FCMB GROUP PLC. ROYAL EXCHANGE PLC. 1,595.06 0.31 6.90 4 300,000 481,305.99 47.00 -1.05 28 5,059,458 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 18,780.00 3.13 0.97 60 3,014,318 277 29,339,225 1,110 106,903,123 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 959.35 0.27 -3.57 6 250,542 6 250,542 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 7,050.00 4.70 -5.05 7 225,630 FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. 14,350.52 12.00 - 19 1,183,431 4,123.31 2.39 - 18 251,438 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,329.41 0.70 - 17 336,960 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 0 0 PHARMA-DEKO PLC. 61 1,997,459 67 2,248,001

COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 648.00 6.00 - 0 0 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 0 0 13,650.00 3.25 - 0 0 E-TRANZACT INTERNATIONAL PLC 0 0 0 0 BUILDING MATERIALS BERGER PAINTS PLC 2,246.13 7.75 - 15 166,455 22,050.00 31.50 - 19 56,581 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 315,444.02 24.00 -4.00 47 787,497 FIRST ALUMINIUM NIGERIA PLC 738.63 0.35 2.94 4 237,245 313.43 0.59 - 3 41,066 MEYER PLC. 1,999.41 2.52 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,279.20 10.40 - 0 0 PREMIER PAINTS PLC. 88 1,288,844 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,170.38 1.80 - 3 60,500 3 60,500 PACKAGING/CONTAINERS BETA GLASS PLC. 27,498.46 55.00 - 5 6,516 GREIF NIGERIA PLC 388.02 9.10 - 0 0 5 6,516 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 96 1,355,860

CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 4 3,570 4 3,570 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 4 3,570

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 4 183,226 4 183,226 INTEGRATED OIL AND GAS SERVICES OANDO PLC 59,049.21 4.75 1.06 116 3,170,234 116 3,170,234 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 64,907.15 180.00 - 4 74 CONOIL PLC 16,134.39 23.25 - 19 38,267 ETERNA PLC. 5,738.24 4.40 - 21 48,015 FORTE OIL PLC. 38,423.19 29.50 - 52 115,821 MRS OIL NIGERIA PLC. 7,055.81 23.15 - 8 12,759 TOTAL NIGERIA PLC. 66,206.76 195.00 - 14 6,438 118 221,374 238 3,574,834 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 18,038.70 1.85 -9.76 1 500,000 1 500,000 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 1 20,000 1 20,000 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,829.58 4.80 - 4 1,102 TRANS-NATIONWIDE EXPRESS PLC. 328.19 0.70 - 0 0 4 1,102 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,471.59 1.67 9.87 2 106,000 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 46,362.46 6.10 - 1 11,659 TRANSCORP HOTELS PLC 3 117,659 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0 LEARN AFRICA PLC 1,026.03 1.33 9.92 5 1,412,353 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0

Friday 25 January 2019

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BUSINESS DAY

41

42

BUSINESS DAY

NATIONAL DISCOURSE

HOPE MOSES-ASHIKE

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lobally, the independence of central banks of nations is almost sacrosanct in view of the growth impact they have on the economy of those nations and by extension, the stability of the nations’ fiscal and monetary policies.

Because of this and more, as Nigeria braces up for its up-coming general elections that will install a new government in the country, it is important to state that, whoever emerges as the country’s new president, should ensure that the independence of the Central Bank of Nigeria (CBN) is not tampered with.

Central Bank independence or autonomy refers to the freedom of monetary authorities from direct political or government interference in the conduct of monetary policy (Walsh, 2005).

In recent times, a lot of interest has been generated around the

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Friday 25 January 2019

Upholding the independence of the CBN amidst political considerations independence of the Central Bank, precisely in terms of formulation and implementation of monetary policy.

The mandate of the CBN includes to ensure monetary and price stability, issue legal tender currency in Nigeria, maintain external reserve to safeguard the international value of the legal tender currency, promote a sound financial system, act as banker and provide economic and financial advice to the Federal Government, among others.

Following the success of Bundesbank (Germany) in lowering inflation in post-World War II that was attributable to its independence, there has been a growing body of literature on the subject that links Central Bank independence directly to price and monetary stability.

A low and stable inflation rate is more likely to be found in countries with independent central banks than in those without independence. One of the benefits of central bank independence is its impact on economic growth.

In Europe, the political independence of the European Central Bank (ECB) is instrumental to its primary objective of maintaining price stability.

The independence of Nigeria’s Central Bank had in one way or the other been threatened by the government in power. The most recent case was a standoff between

the Presidency and the National Assembly over confirmation of new members of the Monetary Policy Committee (MPC), which was seen as threatening the CBN’s independence and damaging fragile investor confidence in the country.

In 2017, Kemi Adeoun, former minister of finance, requested that the National Assembly revoke the independence of the Nigeria’s Central Bank as established under the CBN Act 2007.

“The independence of the Central Bank of Nigeria (CBN) must be upheld in order to allow the CBN remain effective and implement policies that are not politically motivated. That is how the international community and foreign business partners will be able to trust the monetary policies that the institution implements. It will also enable the CBN to announce and implement unbiased policies that will maintain financial and price stability which are its core mandates”, said, Ayodele Akinwunmi, head, research, FSDH Merchant Bank Limited.

Sanusi Lamido Sanusi, former governor of CBN, in 2012 raised alarm over a bill tabled in the Senate which sought to compel the bank to submit its annual budget before the National Assembly to facilitate fiscal transparency and accountability.

Corroborating Akinwunmi, Johnson Chukwu, managing di-

rector/CEO Cowry Asset Management Limited, said the CBN should be allowed to focus on its mandate and there should be some level of collaboration between the fiscal and monetary authorities.

In his view, Uche Uwaleke, professor of finance and capital markets, chair, banking and finance department, Nasarawa State University Keffi, Nasarawa State, said, quite often, central banks are under strong political pressure to adopt lax monetary policies due to budgetary considerations. An elected government worried about its performance at the polls might succumb to the temptation of reducing policy rates ahead of elections at the risk of higher inflation due to the short term nature of its tenure in office.

For sure, an independent CBN will be less prone to short-term political influences and is therefore in a stronger position to commit to long-term policies for promoting price stability.

Furthermore, greater susceptibility to political influences from separation of the roles will prevent the CBN from acting promptly to prevent or resolve a financial crisis. CEO duality made possible the very decisive step taken by the CBN in 2009 to protect depositors and safeguard the integrity of the banking industry when the then Governor, Lamido Sanusi,

removed the Chief Executives/ Executive Directors of Deposit Money Banks identified as great risks to the stability of the sector. Had the CBN not acted as promptly as it did, there would have been systemic crisis with disastrous consequences for the entire economy, Uwaleke said.

It is pertinent to note that the situation where the governor acts as chairman of the board is consistent with global best practice and is primarily designed to promote the independence of the CBN. Such independence implies that the apex bank is able to resist undue influences from the government and other interest groups. Without any doubt, a truly autonomous CBN is imperative for the achievement of the goals of the Federal Government Economic Recovery and Growth Plan.

With regard to collaboration with the finance ministry, the ministry could be represented on the CBN Board as well as given a non-voting seat on the Monetary Policy Committee.

In addition, there should be regular meetings between the Minister of Finance and the CBN Governor, Uwaleke added.

Ayodeji Ebo, managing director, Afrinvest Securities Limited wants whichever government that wins election to further the confidence that the CBN has in terms of decision making.

Why Nigeria’s FDI fell 13-year low in 2018 MICHEAL ANI & BUMI BALIEY

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igeria’s unfriendly business environment is making the country worse-off in attracting foreign direct investments (FDI) as investors look to other African markets.

Foreign Direct investment into the country declined 36 percent from $3.5 billion to $2.2 billion in 2018, according to a report from United Nations Conference on Trade and Development (UNCTAD), making it the lowest foreign inflows that Africa’s largest economy has recorded in last 13 years when the Geneva-based permanent intergovernmental body started tracking FDI data across the globe.

According to the report, Nigeria lagged behind major African countries such as Egypt, South Africa and Angola in direct investment inflows despite a seven percent increase in FDI across the continent.

FDI into Egypt in 2018 stood at $7.9 billion; South Africa, $7.1 billion; Ghana, $3.3 billion while Angola’s was $ 5.5 billion.

“The monumental growth of 446 percent in FDI recorded in South Africa and the single-digit growth of 7 percent recorded by

Egypt is a reflection of investors’ confidence in their economies given that their economies are well industrialised coupled with their favourable operating environment”, said Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers.

Similarly, Nigeria’s West Africa’s neighbour, Ghana, overtook the oil-rich African nation as the largest recipient of FDI in the region despite Nigeria boasting a GDP that is about eight times the Black Stars’.

“The paucity of FDI into Africa’s largest economy despite its huge endowment of natural resources, dynamic and youthful population continue to reflect the dearth of critical infrastructural facilities that will make the business environment conducive for businesses to thrive as well as the absence of key reforms in vital sectors of the economy,” Ologunro said.

“Furthermore, the weak performance recorded in Nigeria and Angola, the two largest producers of oil in Africa, suggests that both countries are yet to put in place the much-needed infrastructure that will reduce the bottlenecks in the operating environment, implement policy measures and key reforms that will liberalise entry conditions

INVESTMENT into their industries, particularly in oil and gas, power, transport and manufacturing networks and also implement reforms that will attract and facilitate foreign direct investment,” he added.

For Johnson Chukwu, CEO, Cowry Asset Management Limited, the direction and the uncertain risks of the elections seem to have worsened the concerns and confidence of investors and created concerns about the possible outcome of the election.

“The economy has been growing at a very sluggish rate since we came out of recession. And the growth of an economy is what drives FDI. Investors are looking for an economy where they will optimise their return and the lowest possible risk,” Chukwu said.

A lot of incidents happened in Nigeria’s business landscape in 2018, from a clash between its apex financial regulator, CBN, and largest nonoil direct investor, MTN, that controls about 39.7 per cent market share and service about 66 million subscribers in Nigeria’s telecommunication sector, to the closure of local offices of two global lenders.

The CBN in August 2018 fined

four banks a total of N5.86 billion for breaching Nigeria’s extant laws and forex rules when they allegedly facilitated illegal repatriation of funds to South Africa on behalf of MTN. The CBN then asked MTN Nigeria to immediately repatriate a total of $8.134 billion, being part of funds that were illegally taken out of Nigeria by the telco between 2007 and 2015.

The telco was also slammed $2bn in tax arrears on imported equipment and payments to suppliers from the office of the attorney-general of the federation.

MTN and the banks involved denied any form of wrongdoing.

The fiasco sent a negative signal to investors who raised eye brows on the way and manner the apex bank handled the situation. Analysts say this may have pushed FDI to N379.84 billion($1.2 billion) in the first half of the year from 532.63 billion naira ($1.7 billion) a year earlier.

Global lender UBS closed its Nigerian office after it expressed dissatisfaction over the way and manner the apex bank brought its hammer on the telecom giant.

In the same manner, HSBC shut down its operations in Nigeria over several backlashes from the government after it predicted that Nigeria’s president Buhari’s victory

in the 2019 elections would stall the economy.

“We have noticed that a number of foreign investments are going into the oil and gas sector,” said Ayodele Akinwunmi, head of research, FSDH Merchant Bank. “However, in the last few years, especially from the upstream, a number of them are saying they are confused about the unclear policies in that area which they need to have to enable them invest,” he said.

“Some of the bills on the oil and gas sector such as the Petroleum Industry Governance Bill are yet to be passed and this is constraining FDI,” Akinwunmi further said.

In July, 2016, President Muhammadu Buhari established the Presidential Enabling Business Environment Council (PEBEC) to remove delays and unnecessary restrictions that come with doing business in Nigeria to make the country a place where one can start and grow a business.

After moving 25 places up the ladder, Nigeria dropped a spot to 146th among 190 countries in the World Bank’s 2019 Doing Business Index (DBI). This is despite the country making an improvement in the ease of doing business score from 51.52 to 52.89.

Friday 25 January 2019

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BUSINESS DAY

43

Rivers guber: Oil magnet, Dumo Lulu-Briggs, wants to create jobs, liberate Rivers Ignatius Chukwu

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alabari-born oil magnet and governorship hopeful Dumo LuluBriggs, has unveiled his blueprint to restore prosperity to Rivers State through massive job creation as well as liberate the state from oppression.

The long-time financial backbone in the All Progressives Congress (APC) who migrated to pick the ticket in the Accord Party after the APC primaries few months ago said he comes with a strong agenda to correct 20 years of decline, a swipe at Peter Odili, Chibuike Amaechi and now Nyesom Wike, who governed the state since 2019.

Dumo, who is a top member of the famous Lulu-Briggs family in Kalabari served as general manager, pioneer executive director and chief operating officer of Moni Pulo Limited from 1995 to 2002 as well as managing director of DLB Concerns Ltd., since 2002. He also serves as the chairman of the Board at Platform Petroleum Limited and also served as its vice chairman. He was in private legal practice from 1988 to 1994.

Speaking at the flag-off of his governorship campaigns in the face of doubts over an APC governorship slot due to several court

orders, Lulu-Briggs lamented that a society as endowed with human and natural resources as well as with the potential for massive industrialisation as Rivers State could have its people so marginalised and pauperised.

He said: “Rivers State is today a shadow of its glorious past. From

being the treasure base of the nation, it has emerged the troubled base of the nation. From being the employers’ hub, it has become the unemployment capital of the country. Rivers State that was once the most hospitable state is now the hotbed of Nigeria marred by insecurity, impunity and outright

Presidential candidate of the Peoples Democratic Party and former vice president of Nigeria, Atiku Abubakar; national chairman of the PDP, Uche Secondus and director general of the PDP Presidential Campaign Council and Senate President, Bukola Saraki waving at the sea of heads at the party’s presidential campaign in Kaduna State on Thursday.

…Rules out alliance with Atiku, Buhari

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ela Durotoye, the presidential candidate of Alliance for New Nigerian (ANN), has reaffirmed his readiness for an alliance with the standard bearers of African Action Congress (AAC), Omoyele Sowore and Kingsley Moghalu of Young Progressives Party (YPP) with a view to producing a consensus candidate against the ruling All Progressives Congress (APC).

Lanre Oyegbola, director gener-

al, Fela Durotoye 2019 Presidential Campaign organisation, disclosed this in an interview with BusinessDay, Thursday, stressing that the ANN presidential candidate was still intensifying its campaigns across the country in readiness for the February 18 presidential election.

When asked if Durotoye was willing to work with the candidate of the People’ Democratic Party (PDP) or incumbent Muhammadu Buhari of the ruling All Progressives Congress (APC), the DG stated that

the ANN presidential candidate had never considered working with such politicians who he described as belonging to the past.

According to him, we have always said we are open for a dialogue which would lead to a coalition among the young presidential candidates. We are still in the race and we are still carrying out campaigns across the country. The question if we are going to work with Atiku is out of the way they belong to the old order, we have nerve consider that.

Gunmen abducts APC House of Assembly candidate, kills police orderly in Edo IDRIS UMAR MOMOH and CHURCHILL OKORO, Benin

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ichael Ohio-Ezomo, an All Progressives Congress (APC) candidate for the Owan West House of Assembly election has been abducted by gunmen while his orderly was killed in the process.

Ezomo, who is an executive director at the Edo State Internal Revenue Service, was reported to have been abducted at 1am yesterday at his residence in Eme-Ora by three gunmen.

The victim who represented the constituency between 2011 and 2015 is seeking re-election to represent the constituency in March 2, 2019 House of Assembly election.

Confirming the incident, the executive chairman of Owan West Local Government Area, Frank Ilaboya said that his orderly was killed at the process while the candidate was taken away by the gunmen.

“Our candidate in the forthcoming election has been abducted by three gunmen at his house at about 1am early this morning.

“The orderly attached to him

enterprise of the founding fathers.

The average Rivers person has been impoverished, traumatised and has lost self-esteem. The happiness and economic wellbeing of the individual Rivers person has taken a back seat in governance.

Our people are poor and homeless; the elderly are abandoned; our youths are jobless and our children are out of school.

“For 20 years, Rivers State has had governors and leaders who use our people as ladders to power and dump them afterwards as worthless observers. It is therefore undisputable that the problem of Rivers State is essentially that of political leadership.”

He said his mission is to bring a leadership that would turn the fortune of the state and its people around through the effective application of three key values: sincerity of purpose, clarity of goal, and dedication to duty.

“Our past neglected these values, our present must learn from these, because our future is dependent on them,” he said.

He also pledged to make every Rivers man, woman and all other residents of the state the focus of all policies, strategies and action and “never forget to care for those who live in the shadows of life”.

Cracks in ACPN as party dumps Ezekwesili, endorses Buhari

Durotoye reaffirms readiness for coalition Iniobong Iwok

disrespect for the people by the political leadership.”

He said the state had been on the decline while others were growing. “Rivers State is marked by a decline that started about 20 years ago with return of the country to democracy, and serves as a sad testimonial to the vision and

was killed and our candidate was taken away by gunmen through the window.

“As I speak to you now, no contact from the abductors; we have contacted the commissioner of police and he is on his way to the local government,” he said.

The council boss, who said the case had been reported to the police, added that the Edo commissioner of police is on his way to the local government.

Efforts to get confirmation from the Edo State police command image maker, Chidi Nwabuzor were unsuccessful as calls to his mobile phone were unanswered.

…Accuses Ezekwesili of receiving $5000, N35m cash donations Innocent Odoh, Abuja

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he Allied Congress Party of Nigeria (ACPN) has in a rather inexplicable twist thrown its support to President Muhammadu Buhari and the All Progressives Congress (APC) after it emerged that its presidential candidate, Oby Ezekwesili had withdrawn her ambition to contest the 2019 presidential election and proposed to join a coalition against the APC and the PDP. However, in a swift reaction, running mate to Ezekwesili, who is also the National Chairman of the party, AbdulGaniyu Galadima, in his address during a press conference on Thursday in Abuja said: “The Allied Congress Party of Nigeria (ACPN) is withdrawing support for her presidential| aspiration and endorsing the second term bid of President Muhammadu Buhari to take Nigeria to the next level.”

Ezekwesili announced her decision in a statement released by her campaign organisation on Thursday, stressing that her action was prompted by an examination of the country’s electoral environment sequel to the 2019 presidential debate of Saturday, January 19, 2019.

“This decision followed extensive consultations with leaders from various walks of life across the coun-

try over the past few days. I deem it necessary for me to focus on helping to build a veritable coalition to ensure a viable alternative to the #APCPDP in the forthcoming elections,” the statement read.

However Gani Galadima, Paul Isamade, national secretary, and other officials in their statement during the press conference through Paul Isamade accused Ezekwesili of receiving cash donations of $5000 and N35 million from local donations and other property in the name of the party which they insist she must account for.

The ACPN said at the conference that Ezekwesili’s decision to withdraw her ambition was done without consulting the party, adding that her decision to help build a coalition to defeat the APC and the People’s Democratic Party (PDP) did not go down with the thinking in the party.

“This she does not seeing fit to inform the party whose mandate she is holding,” the party stated.

In addition, the party accused Ezekwesili of using it as a platform to negotiate to be Nigeria’s finance minister.

“I have been put into confidence by one of her aide named lyinoluwa Aboyeji that she only wanted to use the platform of the Allied Congress Party of Nigeria (ACPN) to negotiate to be Nigeria’s finance minister.”

Friday 25 January 2019

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BUSINESS DAY

FINANCIAL TIMES

44

World Business Newspaper

US recognises opposition leader Juan Guaidó as Venezuela’s president Canada and other countries join in pressuring the regime of Nicolás Maduro Aime Williams and Gideon Long

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he US and Canada recognised Venezuelan opposition leader Juan Guaidó as the country’s interim president on Wednesday in a direct challenge to the regime of Nicolás Maduro.

The apparently co-ordinated move, swiftly joined by Brazil, Colombia and other Latin American countries, came as Mr Guaidó swore himself in at an ad hoc ceremony in Caracas, while opposition supporters staged mass rallies throughout the country.

Mr Maduro began a second term as president two weeks ago. The EU and more than 20 countries, including the US, Canada and some of Latin America’s biggest states, said they did not recognise that inauguration following elections last year widely regarded as fraudulent.

In a statement released by the White House, President Donald Trump encouraged other governments to work with Mr Guaidó, the president of the Venezuelan National Assembly, as Venezuela’s true leader and help him “restore constitutional legitimacy” to the country.

“I will continue to use the full weight of United States economic and diplomatic power to press for the restoration of Venezuelan democracy,” Mr Trump said. “We continue to hold the illegitimate Maduro regime directly responsible for any threats it may pose to the safety of the Venezuelan people.”

Mr Maduro responded by saying he was breaking off all diplomatic and political relations with the US, which he accused of trying to foment a coup. He gave US diplomats 72 hours to leave the country. But the state department later said

that as it does not recognise the Maduro regime, the US “maintains diplomatic relations with Venezuela and will conduct our relations with Venezuela through the government of interim President Guaido, who has invited our mission to remain in Venezuela”.

So far, the military has held firm in its support of Mr Maduro. But there is increasing talk that Washington may increase the economic pressure to encourage defections among the rank and file who may doubt the constitutionality of Mr Maduro’s presidency.

When asked whether he would consider military action, Mr Trump repeated on Wednesday that “all options are on the table”.

Donald Tusk, president of the European Council, said in a tweet that he hoped “all of Europe will unite in support of democratic forces in Venezuela. Unlike Maduro, the parliamentary assembly, including Juan Guaidó have a democratic mandate from Venezuelan citizens.”

In Caracas, Mr Guaidó declared himself interim president in a defiant speech before masses of antigovernment protesters. The country is gripped by hyperinflation and a crushing economic crisis that has seen more than 3m refugees flee.

Mr Guaidó, 35, repeated his calls for the military to abandon the Maduro regime, saying they would be pardoned by a future government if they did so.

“We know that this will have consequences,” he told a cheering crowd, holding his right hand aloft as he took the oath. “To be able to achieve this task and to re-establish the constitution we need the agreement of all Venezuelans.”

Mr Guaidó’s anointment came as thousands marched through the streets of Venezuela to demand Mr

Juan Guaidó has called for the military to abandon the Maduro regime © Reuters

Maduro’s resignation on the highly symbolic 61st anniversary of the coup d’état that ended the military dictatorship of Marcos Pérez Jiménez.

“This regime has been in power 20 years and I’m 21-years-old. It’s marked my whole life,” said Nancy Vargas, dressed in a green T-shirt with the picture of a helmeted protester emblazoned across it. “It’s robbed me of my youth but it hasn’t taken away my desire to fight for my country.”

The country’s bishops have described the government’s insistence on clinging to power as “a sin that cries out to heaven”. In Caracas’ El Paraiso neighbourhood, church bells rang out in support of the protesters and a demonstrator stood atop the Coromoto chapel waving a red, blue and yellow Venezuelan flag.

There were also multiple reports of sporadic clashes, with military po-

lice using tear gas to disperse crowds.

The government responded with smaller protests of its own, with red-shirted supporters bussed into Caracas to swell numbers. Speaking at one rally, Diosdado Cabello — widely viewed as the second-most powerful figure in the ruling socialist party — dismissed the government’s opponents as “fascists”.

“They know that under the terms of the constitution they can’t do what they’re doing,” he said. “The Bolivarian revolution has no sell-by date. We don’t care what the empire [the US] says. We don’t care what the European Union says.”

But David Smilde, a Venezuela expert at Tulane University in the US, said the decision by the US, Canada and others to recognise Mr Guaidó had serious practical implications for the Maduro government and were

less symbolic than first appeared.

“It could lead courts in the US and elsewhere to give control to Venezuela’s foreign assets to the [opposition-dominated] National Assembly instead of the Maduro government,” he said.

One group of bondholders holding defaulted Venezuelan debt has already said it would not talk to the Maduro government and would only deal with Mr Guaidó’s freely elected National Assembly, regarded by many as Venezuela’s last bastion of democracy.

Hopes of regime change saw prices for Venezuela’s bonds jump to their highest level in months on Wednesday. The country’s benchmark 2027 bond traded at a sixmonth high of 31 cents on the dollar, up from 28 cents a day earlier and 32 cents at the end of November.

delays State of the Union speech until shutdown is resolved Carlos Ghosn resigns as head of Renault Trump Move comes after Pelosi blocks president from delivering address in chamber French finance minister confirms carmaker’s chief has stood down after bail requests denied

David Keohane and Kana Inagaki

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arlos Ghosn has resigned as chief executive and chairman of Renault, according to the French government, paving the way for his successors to be announced after a board meeting in Paris on Thursday.

“Carlos Ghosn just resigned last night,” Br uno L e Maire, French finance minister, told Bloomberg in an interview at Davos on Thursday morning.

Mr Ghosn has been behind bars in Tokyo since his November 19 arrest on allegations of financial misconduct at Renault’s carmaking partner Nissan. Mr Ghosn has maintained his innocence.

With Mr Ghosn’s departure, he has been in charge of the Franco-Japanese alliance for two decades, the two companies face the complicated task of reshaping the partnership at a time when trust is low and doubts have emerged about the sustainability of its capital structure.

Until recently Renault, and its largest shareholder the French state, had kept Mr Ghosn in place because its own internal investigation had yet to find evidence of wrongdoing. Nissan removed Mr Ghosn as its chair

soon after his arrest and following an internal investigation that found he had allegedly spent company money for personal ends.

However, after Mr Ghosn’s latest bail requests were rejected, the French government, which owns 15 per cent of Renault, decided it was time to act since he would be unable to run the company in the coming months.

According to a person familiar with his thinking, Mr Ghosn also felt he would not be able to fulfil his duties in his current situation and agreed with the terms of his resignation.

The French government confirmed on Thursday morning that the board will be asked to appoint current Michelin boss Jean-Dominique Senard as chairman and Thierry Bolloré as chief executive. Mr Bolloré has been running the company on a day-to-day basis since soon after Mr Ghosn’s arrest in Japan last November.

With the resignation of Mr Ghosn, the two companies will also need to appoint a new head for the alliance, which also includes Mitsubishi.

Although Mr Bolloré is likely to be titular head of the alliance, people familiar with the situation say Mr Senard will also have a leading role.

Sam Fleming and Pan Kwan Yuk

D

onald Trump will delay his State of the Union address until the US government shutdown is resolved, backing down after the Democratic speaker of the House of Representatives said she would bar him from delivering the speech in the chamber.

Nancy Pelosi had said she would block Mr Trump from delivering the address in the House of Representatives until legislation is signed to end the record-long government shutdown. The two sides are locked in a stand-off over Mr Trump’s demand for funding to build a border wall with Mexico.

Ms Pelosi wrote in a letter to Mr Trump: “I look forward to welcoming you to the House on a mutually agreeable date for this address when government has been opened.”

Mr Trump announced the change of tack on Twitter, despite previously writing to Ms Pelosi that he would deliver the

address in the House despite her earlier arguments that the shutdown had raised new security concerns.

“It would be so very sad for our Country if the State of the Union were not delivered on time, on schedule, and very importantly, on location!” he wrote.

The sparring over the timing and location of the address, which had been planned for January 29, will deepen concerns that both parties are digging in for an ever more protracted battle over the shutdown.

With the impasse now into its 33rd day, federal workers have been protesting on Capitol Hill.

Warnings of the damaging sideeffects are proliferating.

Karl Schultz, an admiral in the US Coast Guard, sharply criticised the shutdown on Tuesday night. He said it was unacceptable that, as government workers prepare to miss a second pay cheque, his service members were being forced to rely on food pantries. This week an organisation representing

FBI special agents warned that the shutdown was endangering law enforcement investigations.

The Senate is preparing to vote on two competing bills aiming to reopen the government on Thursday. However, the chances of either garnering enough support to pass are still seen as slim.

Ms Pelosi wrote to Mr Trump last week asking him to either postpone his annual address or deliver it in writing because of security concerns. The US Secret Service and Department of Homeland Security have been hit by funding shortfalls caused by the partial shutdown.

Mr Trump then proceeded to cancel a planned trip by Ms Pelosi to Brussels and Afghanistan, citing the need for her to stay to negotiate an end to the impasse.

The bitter stand-off between Mr Trump and Ms Pelosi, who reclaimed the speakership when Democrats took control of the House this month, was triggered by a dispute over border security, but has morphed into a war of wills between the two parties.

45

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NATIONAL NEWS

FT Morocco banks expand to west Africa for greater if riskier returns

Casablanca Finance City offers hub to Africa-bound local and foreign business

Lenders go on acquisition spree in pursuit of continental growth

Exports and FDI soar with help of incentives for long-term development

Nicholas Megaw and Heba Saleh

Adrienne Klasa

M

orocco’s banks needed little convincing to see the value of expanding outside their home market. The country’s banking sector is among the most highly developed in Africa, meaning returns are relatively low and opportunities to grow faster than the wider economy are limited. The kingdom’s project to expand its business links throughout the African continent, therefore, tallied well with lenders’ commercial interests.

“Banks realised quite early on that if they wanted to grow they’d have to go outside,” says Janine Dow, head of francophone African banks at Fitch Ratings.

Though their experiences have not always been free of trouble, revenues from international ventures are soaring, and industry figures say the investments are more than worth the risk, with further expansion planned.

“Almost all African markets still offer massive growth opportunities in all segments, provided you address them with the right value proposition, the right cost structure and the right risk management system,” says Kamal Mokdad, general manager in charge of international banking at Banque Centrale Populaire, one of Morocco’s biggest banks.

International revenues at BCP grew 800 per cent between 2009 and 2017, from less than 3.6 per cent of group sales to almost 20 per cent.

It aims to raise that figure to 30 per cent by 2020. Rival Attijariwafa Bank, meanwhile, lifted its proportion of international sales from 15 per cent to 33 per cent over the same period.

Both groups are eyeing new markets: BCP recently bought a Mauritian bank and is in the process of buying another four businesses in Cameroon, Madagascar, Tunisia and Congo. In 2017, Attijariwafa made its largest acquisition with the $500m takeover of Barclays’ Egyptian unit, and it is considering purchases in Rwanda, Kenya and Ethiopia, among other countries.

Analysts have warned, however, that the bumper growth could come at a cost. Repeated acquisitions have put pressure on banks’ reserves at a time when they are already “not very well capitalised”, says Ms Dow. In a recent note on banks across francophone west Africa, Fitch noted that the region generally has higher rates of bad loans than Morocco, concentration risk because of a relatively small number of large corporate borrowers, and political uncertainty in some markets. The collapse last year of SAF-Cacao, Ivory Coast’s largest cocoa exporter, for example, left BCP and Attijariwafa exposed to a reported CFA Fr25bn ($44m) in unpaid loans.

Ismail Douiri, Attijariwafa general manager, acknowledges that “risk is definitely higher, but returns are [also] higher, and when you have bigger margins you can invest some of it in taking risk.” He adds that “individual markets [outside Morocco] are small enough not to present a shock if any had a problem”.

Mr Mokdad says BCP has consciously expanded in countries with different economic profiles — such as oil-dependent economies and non-oil-dependent economies — to diversify its exposure.

Friday 25 January 2019

M Slow progress: Nigeria’s president Muhammadu Buhari, left, and Morocco’s King Mohammed VI in Rabat last June © AP

Morocco’s Ecowas bid sparks African fear and suspicion Nigeria warms to royal diplomacy but worries about competition Neil Munshi

W

hen President Muhammadu Buhari made the first trip to Morocco by a Nigerian head of state last June, he was received with great pomp by King Mohammed VI at the airport in Rabat. The pair waved as they were driven past cheering crowds to the royal palace.

A Nigerian government statement noted how the two leaders agreed on investment projects in fertilisers, agriculture and chemicals, and reaffirmed plans for a 5,660km pipeline connecting Nigerian gas reserves to Morocco and a dozen countries in between.

But what is widely seen as the king’s underlying motive for his extravagant reception of the most influential member of the Economic Community of West African States (Ecowas) went unmentioned: Morocco’s desire to join the regional trading bloc.

Joining Ecowas is seen as a crucial first step in Morocco’s efforts to position itself as the west’s gateway to Africa. It makes sense: while not contiguous, Morocco is in Ecowas’s neighbourhood, and it shares a francophone connection with many of the bloc’s members. Ecowas members Nigeria, Senegal and Ivory Coast are among the biggest African buyers of Moroccan goods, while Morocco has made significant investments across the region in banking, telecommunications and insurance.

Morocco first applied in 2017,

soon after it rejoined the African Union, confident that good relations with the bloc’s members would smooth its entry. It has since signed investment pacts with most of Ecowas’s 15 member states yet has faced opposition from those countries. Its membership — agreed in principle two years ago — was reportedly not on the agenda at December’s meeting of Ecowas heads of state. Matters have not moved forward since.

There are many objections: Morocco’s bid is ambiguous, with no clear indications about its true intentions and whether it will obey Ecowas’s rules, from tariffs to free movement; Morocco is a far more developed country than any in Ecowas and would join from a position of power; Morocco has its own free trade deals with, among others, the EU and the US, which could create a potential tariff-free back door into west Africa for foreign companies.

Resistance has been strongest in Nigeria. “What is Morocco going to bring to the table and what will be the benefits to the members of the community, particularly our own country?” says Mansur Ahmed, president of the Manufacturers Association of Nigeria. “Generally we do not see any direct benefits to the community.”

He says Morocco’s links to the US and Europe could lead to dumping and put it “at a significant advantage over the other members of the west African community”.

The MAN is a leader of a consortium of trade groups representing

manufacturers, chambers of commerce and small business that in 2017 released a paper arguing “Morocco joining Ecowas is a direct attempt at reducing the influence and strength of Nigeria as a strategic political and economic force”. The association has also led opposition to the Africa Free Trade Agreement, a continental pact that Nigeria has not yet joined.

Mr Ahmed says his group wants to study it further before Nigeria signs the pact, which makes Morocco’s bid for Ecowas membership even less of a priority.

Christophe Charlier, chairman of Renaissance Capital, the Russian investment bank, says Morocco’s bid is a logical step, building on development across the region, which includes Moroccan phosphate giant OCP’s investments in Nigeria, Attijariwafa Bank expanding across francophone west Africa, and Moroccan real estate developers building in Abidjan. “Full membership will consolidate the political status of Morocco in the region.”

Now that Moroccan companies have developed across Ecowas, moving services and products across countries will create significant value for Morocco and the bloc, he says.

Morocco sees itself is as a hub for western companies to offer goods and services to west Africa, says Riccardo Fabiani, a political analyst at Energy Aspects, a research consultancy. “The problem is [that] in that way Morocco would become a sort of Trojan horse for EU and US companies into west Africa.”

Fear of March madness looms over Davos

The global elite worry over deadlines for the US-China trade war and Brexit Gideon Rachman

T

wo questions come up repeatedly in the corridors of the World Economic Forum in Davos. First, what is going to happen in the US-China trade war? Second, what is going to happen with Brexit?

There are considerable similarities between these two questions. In both cases, the only sensible answer is some variant of: “I don’t know”. In both cases, there is a strong possibility of a bad “no deal” outcome that could create turmoil in the world economy.

And, in both cases, the answer will be revealed in March.

The Trump administration has set a deadline of March 2 for the US to reach a new trade deal with China. Without an agreement, the US has pledged to raise its import

tariffs on $200bn worth of Chinese goods to 25 per cent, from the current 10 per cent level. The deadline for Britain to leave the EU is March 29. Without a deal, the default position is that there will be a “no deal Brexit” — in which Britain will crash out of the EU, leading to the immediate imposition of tariffs, the lapse of existing legal agreements and a surge in red-tape and regulations.

Both “no deal” scenarios are regarded with almost universal horror by the mix of businessmen, financiers, politicians, regulators, academics, celebrities, hustlers and fantasists who jostle each other in the corridors of the Davos Congress Centre. Their fear is that a surge in protectionism and business uncertainty could occur simultaneously in Europe and the US — leading the global economy into a recession or worse.

But because the two “no deals” are regarded as so dangerous, the consensus opinion in Davos is that somehow — in both cases — a compromise will be found.

The government shutdown in the US has meant that the highpowered Trump administration delegation that was originally scheduled to travel to Davos has instead remained in Washington.

Appearing instead by video-link, Mike Pompeo, the US secretary of state, claimed to be optimistic that a trade deal could be reached. But the conditions he laid out for a lasting improvement in US-China relations included Beijing accepting not only “fair trade”, but also “free and open seas” and the “principles of democracy”. If that is what it will take to calm things down between Washington and Beijing, it could be a long wait.

ore than three decades after walking out of the African Union, Morocco rejoined the pan-African organisation in 2017. The north African kingdom had withdrawn when the union recognised the independence of the disputed territory of Western Sahara — over which Morocco still claims sovereignty.

The reconciliation was a tactical move: a sustainable political settlement might have been appealing, but economics were key.

“Morocco’s bid to join African trade and political unions is part of its strategy to raise its regional profile”, says Elisa Parisi-Capone, vice-president and senior analyst at Moody’s, the rating agency.

The country is pursuing membership of the Economic Community of West African States (Ecowas).

Morocco has been looking south since 2010. With slow growth in post-financial crisis Europe and many Arab economies in disarray following the Arabspring uprisings, Morocco’s government began encouraging local companies to look for opportunities in fast-growing sub-Saharan African nations.

Casablanca Finance City (CFC) was established that year and launched as a centrepiece of this strategy. Its mandate was to attract companies keen to use Morocco’s political stability and favourable geostrategic position between Europe and Africa as a base for expanding their operations south of the Sahara.

The strategy has borne fruit: Morocco’s exports to west Africa tripled between 2006 and 2016.

About 90 per cent of greenfield foreign direct investment (new projects or expansion of existing ones) out of Morocco between 2010 and 2018 went to sub-Saharan Africa, according to fDi intelligence, a Financial Times sister publication.

Ethiopia, Ivory Coast and Cameroon were the top destinations.

“Africa will be the motor of global growth in decades to come, even if today there are problem regimes in [one or two] economies,” says Saïd Ibrahimi, CFC’s chief executive.

Casablanca, the country’s business capital, has become the hub for investing overseas. Greenfield investment out of the city grew rapidly from $61m in 2010 to a peak of $5bn in 2015, according to fDi intelligence. Since then, the pace has been more subdued, in line with global FDI trends.

Since its launch, about 160 businesses have acquired the regulatory and fiscal advantages of CFC status including international consultancies such as McKinsey and Boston Consulting Group, insurance market Lloyd’s of London and law firm Clifford Chance.

Businesses in CFC reap certain fiscal benefits: Morocco’s corporate tax rate of 30 per cent drops to zero for the first five years after CFC designation. Employees of those companies, meanwhile, pay reduced rates of tax, and there are no limits on foreign exchange repatriation.

Friday 25 January 2019

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COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

ECB holds rates as Draghi faces questions on eurozone downturn Governing council debates market concern over global slowdown Claire Jones

T

he European Central Bank has left its interest rates and its monetary policy message unchanged, as president Mario Draghi prepares to tell the press just how bad officials think the damage to the region’s economy is.

The bank’s 25-member governing council has kept its benchmark interest rate unchanged at zero. The deposit rate charged on a portion of bank’s deposits parked at the ECB stayed at minus 0.4 per cent.

The bank’s message on its monetary policy intentions echoed its December statement, saying the council still “expects the key ECB interest rates to remain at their present levels at least through the summer of 2019”. The bank also repeated that it expects to keep reinvesting the bonds bought under its €2.6tn quantitative easing programme but which are now maturing “for an extended period of time past the date when it starts raising the key ECB interest rates”.

While the bank’s monetary policy was unchanged, the governing council debated whether to heed markets’ concerns over a slowdown in global growth, which data suggest was dragging down the eurozone economy.

The US Federal Reserve has already responded to those concerns.

The Fed said it expected fewer rate rises this year, with businesses delaying investment in an environment of political uncertainty.

A change in the ECB’s stance on the economy could be announced during Mr Draghi’s press conference on Thursday afternoon. Many expect the ECB to downgrade its assessment, saying that the balance of risks to growth were no longer “broadly balanced” but “titled to the downside”.

Growth fell to its lowest level in four years in the third quarter, with

the region’s economy expanding by just 0.2 per cent. The bank had hoped in mid December — when it called time on the expansion of quantitative easing, the most important part of its crisis-era stimulus — that the weaknesses would prove temporary.

However, almost all of the data published since then has been disappointing. There are signs that growth will not rebound in the fourth quarter, suggesting that the economy faced more pervasive problems than initially thought.

On Thursday morning an influential poll of purchasing managers signalled that the eurozone economy was approaching a near standstill. At the beginning of 2019, activity had expanded at its slowest pace for more than five years.

The purchasing managers’ index for the single currency area, watched closely by ECB policymakers as an early indicator of what will happen to gross domestic product, hit 50.7, down from 51.1 in December, according to a flash reading from data firm IHS Markit. The reading was the lowest for 66 months.

“There isn’t anything positive to say about today’s euro area flash PMI indices,” said Frederik Ducrozet, an economist at Pictet Wealth Management. “As regards the ECB meeting, if the governing council had prepared two versions of the statement, with and without ‘downside risks’ to activity, the PMIs could indeed tip the balance and prove us wrong.

Still, we struggle to see what the ECB could do, not just say, to counter downside risks at this stage.”

Observers believe that in his press conference, Mr Draghi could hint that the bank provide cheaper, longer-term financing for banks through a new round of auctions, dubbed Targeted Longer-Term Refinancing Operations, or TLtros.

Euro hits month-low as Draghi points to growth risks

Europe’s technology stocks rally after STMicro results; Wall St makes steady start Michael Hunter, Cat Rutter Pooley and Kate Beioley

T

he euro was knocked by a warning from Mario Draghi on deeper risks posed to eurozone economic growth after the European Central Bank left monetary policy on hold.

Its president said “persistent uncertainty relating to geopolitical factors and the threat of protectionism” meant risks “moved to the downside”, sending the euro as low as $1.1305, down 0.7 per cent to a level last touched on December 17.

The low also came after further signs of a slowing European economy. A reading of the purchasing managers’ index data for the German manufacturing sector set the tone, showing an unexpected contraction.

The currency bounced off the nadir to $1.1358, leaving it down 0.2 per cent for the session.

Investors moved into the relative safety of eurozone government debt, and the demand for the debt pushed its yields lower. German 10year Bund yields fell 3.7 basis points to 0.188 per cent. The yield on the equivalent French paper eased by 4.4bp to 0.5924 per cent.

Equities Reassuring earnings news from

the technology drove a modest overall rally for European stocks.

There was a brighter showing for showing for stocks after wellreceived corporate news.

Chipmaker STMicro’s fourthquarter revenue and margins beat forecasts, sending its stock to the top of the region-wide Stoxx 600 with a rally of almost 9 per cent. The index itself was up 0.4 per cent, with the benchmark tracking the sector up almost 2 per cent. US tech stocks were ticked up, helping the Nasdaq Composite rise 0.2 per cent while the S&P 500 slipped 0.1 per cent.

Frankfurt’s Xetra Dax rose 0.4 per cent. Sterling’s return to $1.30 knocked the FTSE 100, which was down 01 per cent.

Wall Street futures pointed to a steady start for the S&P 500, while investors remained on watch for signs of an improvement in trade relations between the US and China to offset concerns about stuttering global growth.

“The relief rally year-to-date has been very strong,” said Suresh Tantia, investment strategist at Credit Suisse.

“Upside looks more limited from current levels . . . We are seeing signs of renewed weakness in manufacturing activity. In this environment, we expect the momentum of the equity rally to stay positive but slow down.”

ECB president Mario Draghi © Reuters

Stocks to watch: Vodafone, Reckitt Benckiser, Blue Prism, Moncler Missing out on Pfizer leaves Reckitt in strategic stalemate, says Jefferies Bryce Elder

V

odafone slipped after its 70 per cent owned Southern African business Vodacom posted much weaker than expected quarterly results, due to a summer promotion backfiring.

Vodacom said group revenue grew just 1.5 per cent for the fiscal third quarter, rather than the 3.5 per cent expected by the consensus. The group withdrew its Summer Gigs promotion in November but warned that because of a regulatory change due in March, the after effects would drag on data revenue growth “in the near term”.

For Vodafone, Vodacom’s weak performance could take 30 basis points off the expected 0.3 per cent growth in the fiscal third quarter or between €30m and €40m on a group revenue base of €9.8bn, said Macquarie.

Blue Prism, the process automation software maker, edged lower after raising £100m before expenses with a share placing to fund its global growth ambitions. It sold the new stock at a 5.2 per cent discount to Wednesday’s close.

Full-year results from Blue Prism showed an underlying adjusted £21.6m loss on revenue up 125 per cent to £55.2m, which matched market expectations. For the full year 2020 the company guided towards a better than expected £154m in revenue.

Merrill Lynch said the cash

call was “the right step to ensure Blue Prism’s competitive position remains strong”. Losses will accelerate again in 2019, “but our view has always been that enterprise software companies trend toward strong margins”, it said.

Sellside stories Jefferies downgraded Reckitt Benckiser to “underperform” from “hold”.

The surprise retirement of Rakesh Kapoor, Reckitt’s chief executive, last week “crystallises long-brewing anxieties”, said Jefferies analyst Martin Deboo.

“There are strong runners and riders for the role aplenty. But this is a challenge beyond mere fresh legs. The unique RB pay-for-performance model, so powerful for so long, is now under pressure, laying bare the fact that RB has the weakest culture and workstyle ratings in the peer group.”

Being beaten by GlaxoSmithKline in the race to buy Pfizer’s consumer healthcare division might have prompted Mr Kapoor’s decision, said Jefferies.

Not only does the miss leave Reckitt in strategic stalemate, it cuts off a vital source of fresh innovation for a healthcare portfolio overly reliant on Mucinex and the “yeoman infantry” of Nurofen, Strepsils and Gaviscon, it said. And with Reckitt’s divisional margins already at or near the top of their peer groups, “the forces of profit gravity must come into play eventually,” Jefferies

said. “Now feels like it might be that moment.”

Jefferies forecast Reckitt to miss consensus earnings per share for 2019 by 6 per cent.

It saw the planned spin-off of Reckitt’s hygiene and homecare arm as a potential support for the stock but added that upside looks uncertain, given full separation is not expected until mid 2020 and the only likely buyers would be private equity.

In brief: Adidas cut to “underweight” at Morgan Stanley; Austrian Post upgraded to “outperform” at RBC; Auto Trader downgraded to add at Peel Hunt; Banco BPM cut to “hold” at HSBC; Barry Callebaut upgraded to “neutral” at Goldman Sachs; Crest Nicholson cut to “neutral” at Redburn; Daily Mail upgraded to “hold” at Liberum; Delivery Hero downgraded to “neutral” at JPMorgan; Derwent London raised to “hold” at HSBC; Euromoney downgraded to “add” at Peel Hunt; Hapag-Lloyd upgraded to “hold” at HSBC; Huntsworth raised to “buy” at Peel Hunt ; LafargeHolcim downgraded to “sell” at UBS; Metro Bank cut to “sell” at Citigroup; Moncler upgraded to “buy” at UBS; Michelin cut to “underperform” at Exane BNP Paribas; Moneysupermarket downgraded to “add” at Peel Hunt; Nestlé upgraded to “buy” at Berenberg; Sanne raised to “buy” at Citigroup; YouGov upgraded to “buy” at Peel Hunt.

Fast Europe Open: ECB policy statement, eurozone manufacturing Opposition supporters take part in a rally against the administration of Nicolás Maduro in Caracas on Wednesday Edward White

T

he US and Canada recognised Venezuelan opposition leader Juan Guaidó as the country’s interim president on Wednesday, in a direct challenge to the regime of Nicolás Maduro.

The apparently co-ordinated move, swiftly joined by Brazil, Colombia and other Latin American countries, came as Mr Guaidó swore himself in at an ad hoc ceremony in Caracas, while opposition supporters staged mass rallies throughout the country. Mr Maduro began

a second term as president two weeks ago.

The EU and more than 20 countries, including the US, Canada and some of Latin America’s biggest states, said they did not recognise that inauguration following elections last year widely regarded as fraudulent.

In markets, equities swung higher during Asia-Pacific trading on Thursday after slipping at the outset as stronger earnings results from several major US corporates overnight, including IBM, helped to partially allay concerns over waning global growth and

pessimism over US-China trade.

Ahead of the European open, futures tipped both the FTSE 100 and the S&P 500 to remain flat at the start of trading. Sterling meanwhile remained on a stronger footing after breaking above the $1.30 level on Wednesday for the first time since mid-November on expectations of Brexit delays.

Corporate results slated for Thursday include CMC Markets, Restaurant Group, St James’s Place, ST Microelectronics and FeverTree. The economic calendar means business (all times London):

47

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Friday 25 January 2019

ANALYSIS

How Greece’s Alexis Tsipras went from firebrand to statesman Fiscal rectitude and diplomatic success with Macedonia change international view of PM Kerin Hope

A

South China Sea: Fishing on the front line of Beijing’s ambitions Vietnam’s fishermen fear becoming collateral damage in a bigger conflict

John Reed

W

hen b oat QNG 90675 limped into the Vietnamese port at Quang Ngai on December 12, it showed the signs of a confrontation at sea with a Chinese coast guard ship. According to local officials, the coast guard boarded the boat, forced the crew of seven to stand with their hands behind their heads, and confiscated their catch and fishing gear, before cutting the boat’s nets and casting them into the sea.

The boat had been fishing in the Paracel Islands in the South China Sea, as Vietnamese fishermen have for centuries, inside what Hanoi claims as the country’s exclusive economic zone in what it calls the East Sea. With coastal areas of Vietnam overfished, the fishing grounds around the islands abound in species such as tuna and flying fish.

But the Paracels also lie inside China’s self-declared maritime boundary — the “nine-dash line”— the swath of the sea within which Beijing claims exclusive rights. It does not hesitate to demonstrate this against Vietnam’s fishermen , sometimes in crude terms.

The manager of the fleet that includes QNG 90675 says the Chinese vessel accosted the boat and officers jumped on board, saying they were fishing in Chinese waters.

“The area where we fish is Vietnamese water,” says Duong Van Rin, who manages 20 boats. “We aren’t violating any country’s waters.”

Vietnamese industry officials and fishermen interviewed by the Financial Times say confrontations between Chinese coast guard or civilian boats — referred to by state media in Hanoi as “alien vessels” — and Vietnamese craft are frequent, and have in several cases seen boats sunk, fishermen injured and equipment or catches stolen.

The fights over fishing represent a little-reported economic and environmental facet of the clash between China and its south-east Asian neighbours in one of the world’s hottest geopolitical trouble spots, as well as a potential source of a broader US-China conflict.

Fishermen, as academic Gregory B Poling of the Center for Strategic and International Studies wrote in a research paper this month, “serve on the front lines of this contest” as they fight for their livelihoods against bigger, better equipped Chinese coast guard and fishing boats.

Beijing has been dredging reefs and building bases and artificial

islands to demonstrate its military dominance in the area, and in effect vetoed oil and gas development in the sea by Vietnam, including two projects with Spain’s Repsol — and its other neighbours.

At the same time Chinese, Vietnamese and other fishing fleets are competing over diminishing fish stocks, whose depletion analysts blame in part on China’s dredging and construction in the sea. Vietnamese fishermen, as they compete with the better equipped vessels of China’s coast guard and fishing fleet, risk getting involved in incidents that could spark bigger conflicts.

“As they race to pull the last fish from the South China Sea, [fishermen] stand at least as much chance of triggering a violent clash as do the region’s armed forces,” Mr Poling wrote. The study, published by the CSIS, used satellite imagery and other technology to track fishing boats, and revealed that overall activity is increasing year on year, and concluded that a part of the Chinese fleet was engaged in what it called “paramilitary” work rather than commercial fishing.

Vietnam says the clashes threaten a core resource on which at least 1.4m of its 96m population depend for their livelihoods. The South China Sea accounted for about 12 per cent of the world’s fishing stocks, according to one 2015 estimate. But Vietnam’s wooden fishing boats, working the country’s more than 3,200km of coastline, are little match for China’s steel-hulled fleet — an apt metaphor for Beijing’s rising might in relation to its militarily and economically weaker neighbours.

“In remote waters, especially in areas near the Paracels and Spratlys, Vietnamese fishing boats are often obstructed, harassed and threatened by Chinese ships,” said Pham Anh Tuan, vice-president of the Vietnam Fisheries Society (Vinafish), in an email reply to questions. “Vietnamese fishermen fish for their livelihood and to affirm the sovereignty of Vietnam.”

The country is already increasing its military spending, especially on its navy, in tandem with its fast-growing economy and in response to perceived threats, including from China.

When asked about the clashes, the Chinese government says its coast guard carries out “normal patrolling duties in the relevant waters under China’s jurisdiction”, and that in “individual cases” it sometimes takes action against foreign fishing ships.

“Everyone understands that

it is quite normal to have some fishery disputes from time to time between neighbouring coastal countries,” a Chinese government spokesman says. He advised the FT to “focus more on the sound fishery co-operation between China and Vietnam”, including mutual aid the two countries provide each other in emergencies, rather than what he called “sporadic fishery disputes”.

Tensions between China and its neighbours about fishing are not limited to Vietnam. Boats from the Philippines have also reported being harassed by Chinese coast guard vessels, including rammings and firing of water cannon and warning shots.

According to Jay Batongbacal, a South China Sea specialist at the University of the Philippines College of Law, fishermen at Scarborough Shoal , a disputed reef, “had to endure the Chinese coast guard taking part of their catch” until the practice was filmed by a local TV crew last year.

Manila won a 2016 UN tribunal case against China over its claims on the South China Sea. But since Rodrigo Duterte, the Philippine president, took power, he has sought closer economic and political ties with Beijing. Three years ago the Indonesian navy captured Chinese boats in the Natuna Sea, inside what it claims as its maritime economic zone. Beijing’s foreign ministry justified their presence by calling the waters China’s “traditional fishing grounds” — a view disputed by Jakarta.

For Vietnam and China the fight over fishing rights represents something bigger. It provides a volatile subtext to their often tense relations, with visceral antiChinese sentiment running deep in a country that won a border war against its larger neighbour in 1979.

Vietnam’s communist leadership has a strong relationship with Beijing, a leading trading partner, even as it builds closer ties with the US, Russia and other countries. Yet Hanoi is also one of the most strident voices in south-east Asia that speaks out against China’s unilateral actions in the sea.

Hanoi does, however, choose its words carefully, in part due to the widespread Sinophobia in the country. Anti-China protests have broken out several times in recent years, catching Hanoi off guard and representing an unpredictable element for a government that is in most respects firmly in control.

lexis Tsipras, Nobel laureate? The idea being touted for Greece’s prime minister by some of his senior officials might seem far-fetched. But Mr Tsipras can certainly expect international acclaim if, as expected, Greek MPs ratify a deal to end one of Europe’s longest bilateral disputes.

In a knife-edge vote, Greece is poised to sign off on Thursday on a plan for its neighbour, officially the Former Yugoslav Republic of Macedonia, to change its name to “North Macedonia”. Zoran Zaev, the Macedonian premier, has already won his parliament’s approval for the arrangement, which satisfies Athens by dropping an implied claim on the Greek region of the same name. The deal is strongly backed by the EU and Nato, which want to bring Macedonia into the western orbit.

Even if the Nobel committee does not consider Mr Tsipras and his Macedonian counterpart, the 44-year-old Greek prime minister is barely recognisable as the leftwing firebrand who threatened to denounce Greece’s eurozone bailout, ban German politi-

popularity at home,” said Wolfango Piccoli, co-president of political risk services at Teneo, a consultancy.

Settling the Macedonia issue, one of the most intractable disputes thrown up by the collapse of Yugoslavia in the 1990s, is the latest example of Mr Tsipras’s new-found desire for compromise, which has already coloured his approach to Greece’s economy.

Mr Tsipras’s first finance minister, Yanis Varoufakis, was a maverick economist determined to reshape the country’s finances, if necessary by readopting the drachma. With Greece poised for a disorderly exit from the euro in mid-2015, a desperate Mr Tsipras sacked Mr Varoufakis and signed up to three more years of devastating austerity in return for a third bailout.

As for Macedonia, the deal was wrapped up with unexpected speed: it is just one year since Mr Tsipras and Mr Zaev met for the first time in Davos and agreed detailed negotiations under UN auspices. Six months later, the so-called Prespa accord was signed on the shores of a lake of that name that straddles the border between Greece and Macedonia.

Yet Greek voters appear overwhelmingly opposed to the deal.

Alexis Tsipras (centre) narrowly survived a parliamentary confidence vote last week © Reuters

cians from visiting Athens and pull the country out of the euro if its creditors rejected his demands for debt forgiveness.

Four years after his first narrow election victory for his radical Syriza party, Mr Tsipras has become a surprising anchor of Greek financial discipline. His government is generating the sort of budget surplus that Athens’ creditors could once only have dreamt of. And he has reinvented himself as a southern European pragmatist, committed to being a co-operative EU partner while deepening relations with Washington in the interests of regional security.

“Tsipras now has a new international profile, that of the mature leader ready to incur political cost to carry out unpopular policies, whether it’s over Macedonia or the difficult economic reforms needed to keep Greece in the eurozone,” said Aris Hatzis, an Athens university professor of law and economics.

Yet this statesmanship has come at a cost. Mr Tsipras survived a confidence vote this month — but he is widely expected to be ousted from office when Greece holds a general election this year. Opinion polls show Syriza still lagging more than 10 points behind the centre-right opposition New Democracy party, which has rejected the Macedonia deal.

“Solving the longstanding Macedonia problem may have allowed Tsipras to gain some goodwill at the European level but it’s unlikely to boost Syriza’s

Opinion polls show that between 66 per cent and 75 per cent disapprove of the government’s handling of the issue.

Many dislike Mr Tsipras’s acceptance of the existence of a Macedonian language and nationality. The premier is set to win the narrowest of majorities in Thursday’s vote.

Some voters are concerned that, as Mr Tsipras polishes his new image abroad, he still sows domestic division.

They cite Syriza’s frequent interventions in the justice system, putting pressure on judges to rule in favour of their supporters, and attempts to implicate the government’s political opponents in purported financial scandals.

Syriza party organisers are betting that his win over Macedonia, together with a clutch of pre-election handouts, will push such concerns into the background as the election approaches.

They are optimistic, too, that Mr Tsipras can still claw back voters who have been disappointed by his broken promises to increase pensions and restore social spending to pre-crisis levels. Euclid Tsakalotos, finance minister, has persuaded the EU officials who oversee Greece’s economic progress to accept an increase in the minimum wage, which was frozen in 2010. A plan to protect indebted homeowners from losing their properties is being discussed.

“Greece appears to have some leverage after outperforming the 2018 budget surplus target by a wide margin,” Mr Hatzis said.

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Opinion The saga of $7bn external reserves funds

O

n request from the Federal Government of Nigeria (FGN) I was seconded from the African Development Bank Group as Deputy Governor of CBN in May 2005. I left a highly paid and pensionable post as Chief Economist Planning and Budgeting to serve at the CBN at a much lower salary. I have always believed that serving one’s country is one of the noblest tasks anyone could be called upon to do.

In early October of 2006 the then Governor of the CBN, Prof.

Chukwuma Soludo brought a proposal to the Board to the effect that he wanted 14 of our commercial banks to take part in the management of our external reserves in partnership with foreign banking associates. He explained that it was rather unfair that only external custodians such as J. P. Morgan, Goldman Sachs and others were having a piece of the action. At the time, we were feeling rather triumphal.

The banking reforms had been a success. We had managed to reach a deal with the Paris Club of international creditors. The economy was booming. Our foreign reserves had grown from a lowly US$10 billion in 2004 to an impressive US$38 billion in 2006, reaching an impressive peak of US$62 billion by July 2009. We had just launched the FSS2020 project which aimed to position our country as the financial hub of the continent by 2020.

As I recall, there was a lively debate on the matter. On the face of it, it seemed a good idea to allow our banks to have experience of managing our external reserves as a means of socialisation into the complex world of financial engineering and global financial markets. I had a modicum of doubt, but, alas, could not voice

it. The professor was a Mister Know-All with an ego of the Order of Lucifer. The Curse of Mephistopheles. Moreover, he always brandished his closeness with Aso Villa to neutralise any dissent. There was a whispering campaign about me being “the black sheep� that would not play ball. I was offered billions from the banking reform fallouts which I totally rejected. I remain proud of the fact.

At the end of the day, the majority carried the day with regard to local participation in foreign reserves management. I must emphasize – for the avoidance of doubt – that at no stage did anyone get even the remotest impression that it was meant to be a loan, bailout or forbearance.

Of course, it would be another matter entirely if the banks, as an afterthought -- after more than a decade-- would now prefer to give a different interpretation to that financial deal. This should be confirmed from the archival records of the CBN. The banks had a mandate as fund managers of the US$7 billion that was distributed to them; of which principal and interest were to be returned within the agreed tenor. But I was not privy to those details.

On 26 March 2007, while busy at my desk in the early afternoon, news came on national radio that I had ceased to be Deputy Governor and had been moved to the presidency to a 419 position as Special Adviser to the President on Political Economy. I resigned myself to the will of God. I had worked alone in the office up to midnight of 31st December struggling to meet the IMF liquidity targets set for us under the Special Support Instrument.

Unfortunately my colleagues deliberately sabotaged me. That may have explained my uncer-

emonious departure. I later got to know that late President Umaru Yar’Adua, having studied my dossier, had instructed that I be reinstated immediately. Unfortunately, that same week he went into coma, never to recover. His presidential directive was never obeyed.

I mention these events in order to explain that, from October 2006 when the reserve funds were allocated to the 14 banks, up to the time I left in March 2007, was only slightly over 5 months.

The Directorate for Economic Policy which I headed is the most important function of any central bank. But it is the one Directorate where we do not handle money. We work with computable models for monetary policy while undertaking research and statistical-analytical work to drive economic development.

I was therefore surprised when, two weeks ago, a friend in the security services sent me

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rom the 22nd of January, running till Friday the 25th, there has been a gathering of the high and mighty of industry and politics in the Swiss Alps village of Davos.

It began as a private sector driven meeting of corporate titans and business managers organized by a Swiss professor. It has grown to become a large annual gathering of leaders in industry, management and government. While finance and economy still rule the roost, a lot of focus in the discussion nowadays is on matters of social and political concern. So high is the visibility of the modest Swiss village that it is common for heads of state of the major countries in the world to mingle with captains of industry and celebrities of the print and screen in the corridors and conference rooms.

Because of the high visibility of the gathering, it is also a magnet for dissenting voices and agitators for all manner of social causes. Anarchists, nihilists, leftists and anti-capitalists have made the Davos gathering a favourite target and are often a feature ofthe periphery of the meeting rooms and swank eating places where the celebrities gather. They are kept sufficiently far away for

Davos and the rest of us

their placards to be seen, but for their missiles and projectiles to be safely out of range.

The theme of the Davos gathering for 2019 is ‘Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution’.

For a remote town in the Swiss Alps where people such as Robert Louis Stevenson the Scottish writer (‘Kidnapped’) used to come on the advice of their doctors to recuperate from tuberculosis, Davos has become a name known all over the world as a bye-word for globaliza-

tion and a world order based on free trade. So popular and powerful has the name become that people have tried to hijack it and use in other contexts and places. Only a few months ago, Mohammad Bin Salman (MBS), Crown Prince and heir apparent of the Kingdom of Saudi Arabia organized an event in his country which he tagged ‘Davos in the Desert’. The pull of the name was expected to attract government leaders and captains of industry from all over the world to Riyadh, Saudi Arabia, which was seeking to position itself as a new hub for world

a circular emanating from the Villa in which my name had been included on a list of 30 people slammed with a travel ban under Executive Order No. 6.

Dated 11 December 2018, it was signed by the Chairman of the Special Presidential Investigation Panel (SPIP) Okoi Obono-Obla. I managed to trace their office to a sprawling nondescript building in the outskirts of Asokoro. There, I met a squadron of investigators who gleefully welcomed me as a new captive. I was detained for questioning for the whole day and had to fill wads upon wads of paper about a “missing $US7 billion dollars� during my time at CBN. It was an astonishing scenario. Without the benefit of my lawyer, I wrote what I knew. I also had to go through the humiliating ritual of reading out aloud what I wrote in the humiliating manner of an ignoramus parrot.

Later that same evening they followed me home to confiscate my passport. The following day the same charade continued. At some point I asked them if this is not a political witch-hunt. One of them made the Freudian slip of asking why I would not join Buhari and the APC so that “everything would be alright�. I retorted that I myself was wondering why Buhari and APC would not join my party, the African Democratic Congress (ADC), to save themselves from disgrace and contumely. I also demanded to know why I who was responsible for a Directorate had nothing to do with the transaction was being questioned while the people who had more direct responsibility as heads of the Directorates of External Operations, Banking Supervision, Currency and Finance were deemed to have no question to answer. I did not get a satisfactory answer. I have

been told that a few people who were also questioned – with more hands-on responsibility for CBN finance – were also questioned, but their passports were never confiscated. I am left with no choice than to read religious, ethnic and political factors as the influencers of the way I have been treated.

My travel passport was temporarily released to me to attend an international economics conference in London. They played on my nerves to breaking point, releasing my travel document only the night before I was due to travel. I am expected to return it to their custody in a week’s time.

Interestingly, the forms I was required to fill in my questioning were those of a “Witness� rather than a “Suspect�. But my treatment leaves me feeling more like the latter than the former.

Without prejudice to the ongoing investigations, my position is that whatever monies that were given to the banks to be managed on behalf of CBN must be returned with principal and interest. I feel duty to share with the panel all that I know about this case. But I will first affirm my legal rights to be treated above board as a witness rather than suspect.

The way I have been treated so far evokes bitter memories.

My time at CBN was one of the worst in my entire professional career. I was to discover only after I left that my coffee was doused with poison on at least 3 different occasions. It is a miracle that I survived. After I left I developed a strange illness that left half my body paralysed for almost a year.

I recovered miraculously, thanks to Jehovah Rapha. As I recovered, my own beloved son went down with a strange, very evil sickness.

The poor boy is still suffering to

trade. Unfortunately the odium surrounding the brutal murder of journalist Jamal Khaashoggi in the Saudi consulate in Turkey created such a furor that most government leaders and corporate executives backed out at the last minute, not wanting to be seen to be associated with someone suspected on responsibility for such a heinous crime.

The World Economic Forum, with offices bases in Cologny-Geneva, was founded in 1971, originally as ‘European Management Forum’, a not-for-profit organization. The founder and executive chairman from inception was Professor Klaus Schwab. That summer, he invited 444 executives from European companies to the first European Management Symposium in Davos.

He developed the ‘stakeholder management’ approach, which attributes corporate success to the engagement of all groups, including shareholders, clients, customers, employees and the community.

The summit expanded its focus from management to social and economic issues in 1973. In 1974, political leaders were invited for the first time. Over time, Davos began to be seen as ‘neutral ground’ for settling political issues. Greece and Turkey signed the Davos Declaration in 1988. In 1992 F.W. De Klerk met with Nelson Mandela and Mangosuthu Buthelezi in Davos. In 1994 Shimon Peres, Prime Minister of Israel, reached a draft agreement on Gaza and Jericho with Yasser Arafat in Davos.

In 2017, the Head of State of China made an appearance. And in 2018 Narendra Modi, the ‘Make in India’ apostle of Indian rebirth and reinvigoration, gave a plenary address.

The foundation that runs the Davos event is funded by 1000 member-companies, which are global enterprises with more than five billion dollars in annual turnover. Membership is stratified by the level of contribution and engagement with the Forum. Individual members pay US$52,000, while ‘Industry Partners’ pay $263,000., and ‘Strategic Partners’ pay $628,000.

There is an admission fee to the Davos event of $19,000 per person.

Davos is not a zone for the economically faint-hearted. It is easy to see why the annual gathering has been described by anti-globalists’ as ‘a gathering of fat cats in the snow’.

But a lot of good work is going on at Davos, and a good number of the corporate titans who attend are beginning to focus more on their highminded ideas about how to save the world, how to halt climate change, how to expand ‘green’ power, how

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Davos has become more than a useful annual ritual for ‘fat cats’ pushing the message of globalization. It has become an engine-room for the generation and dissemination of new ideas and innovative solutions

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this day. My wife’s car was fired at in broad daylight in the heart of Abuja. They obviously thought I was in it. The bullet hole is still on the body of the car, in case anyone is in doubt.

I have spent most of my professional life outside Nigeria. I have enjoyed honours and privileges. My most recent job was as Chief of Staff of the 79-member African, Caribbean and Pacific Group of States in Brussels. I coordinated more than 50 billion of development and investment funds. Throughout my sojourn abroad, I have no police record for a traffic offence, let alone financial fraud. It is a shame that I can be treated with such humiliation in my own fatherland.

Some of my parting entitlements at CBN remain outstanding. I was meant to perish. My family have paid a heavy price. Touch not my anointed and do my prophets no harm, says the Lord! to take free internet to the most remote villages in Africa and Asia, how to construct innovative toilets for the rural poor who live in villages without drainage, where the human waste may be converted into useful biotechnology products, how to put every child in school, and how to end poverty. Of course, behind all the ‘altruism’ of Bill Gates and the others is the knowledge that the only world in which it will be permanently safe to practice business and make big profits is a world that is reasonably safe and happy for everyone else.

This year President Donald Trump, bogged down by his selfinflicted problems in Washington, is not attending. Theresa May – mired in a Brexit quagmire, is staying put in London. Emmanuel Macron harassed every Saturday on the streets of Paris and other major cities by his countrymen in ‘yellow vests’ is not attending. But Prince William is there to push the long-neglected message of mental health. Sir David Attenborough, the great conservationist, a powerful moral force for good in the planet, is there to talk about biodiversity. Paul Kagame, the new poster boy for effective, if not ‘gentle’, governance in Africa, is there to shift the perception of Africa from a basket case to that of a continent of hopeful change.

Davos has become more than a useful annual ritual for ‘fat cats’ pushing the message of globalization.

It has become an engine-room for the generation and dissemination of new ideas and innovative solutions to the problems of the vast majority of humankind who live on the fringes of a prosperity they do not share.

Published  by  BusinessDAY  Media  Ltd.,  The  Brook,  6  Point  Road,  GRA,  Apapa,  Lagos.   Advert  Hotline:  08034743892.  Subscriptions   01-­2950687,  07045792677.  Newsroom:  08169609331 Editor: Patrick Atuanya.   All  correspondence  to  BusinessDAY  Media  Ltd.,  Box  1002,  Festac  Lagos.  ISSN 1595 -­ 8590.