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Nigeria’s champagne imports down 24% since 2014, mirrors economic slump as analysts doubtful on luxury tax intake

MICHAEL ANI & SEGUN ADAMS

BusinessDay unveils socio-economic report of Ambode’s administration Monday

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he Federal Government’s plan to increase taxes on luxury items to shore up its revenues might be fizzling out as a frag-

ile economic state and weaker purchasing power are curbing consumer spending.

Since Nigeria entered recession in 2016, the volume of Champagne (the pricy French white wine) imported into the country has remained below

pre-recession levels as consumers resort to taking cheap local spirits and sparkling wines to match their low-income stream.

Nigeria’s consumption of Champagne imported from France dropped by 24 percent compared to 2014 levels, accord-

MICHAEL ANI

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usinessDay, Nigeria’s foremost business and financial daily, will on Monday unveil to the public a socioeconomic report detailing the achievements of the outgoing administration of Lagos State Governor Akinwunmi Ambode.

The report, prepared by a 14man team of researchers/analysts drawn from BusinessDay Continues on page 34

Download e-copy of Women’s Hub from www.businessday.ng

Inside Access Bank gets shareholders’ approval to pay dividend P. 33

P. A4

CULINARY DELIGHTS

ing to data compiled by Comité Champagne, a trade association that tracks volume and value of Champagne exported from France.

The data showed that Nigerians swigged 582,243 bottles in 2018, a 24.2 percent fall from the 768,131 bottles consumed in 2014 before the recession, signifying a fall in consumer preference for luxury items.

Yinka Ademuwagun, equities analyst at United Capital, says although the term ‘luxury goods’ is quite broad, a decline in disposable income over the years has seen consumers look for value in Continues on page 34

Philip Akinola (2nd r), CEO, Zenon Petroleum and Gas Ltd, presenting a cheque from Femi Otedola, chairman, Forte Oil plc, to Christian Chukwu (m), a former coach of the Super Eagles, and his wife, Lilian (2nd l), to foot Chukwu’s medical bills, at the exinternational’s residence in Enugu. With them are Ifeanyi Ugwuanyi (l), Enugu State governor, and Amaju Pinnick, president, Nigeria Football Federation.

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news Why Lagos stayed off bond market in 2018 – Finance commissioner JOSHUA BASSEY

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L-R: Roosevelt Ogbonna, group deputy managing director, Access Bank p lc; Herbert Wigwe, GMD/CEO; Ajoritsedere Awosika, acting chairman, and Sunday Ekwochi, company secretary, during the bank’s 30th annual general meeting in Lagos, yesterday. Pic by Olawale Amoo

Consumers to pay more for bread as millers raise flour prices …poor purchasing power dampens margins Josephine Okojie

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igerians may soon pay more for bread as poor purchasing power has dampened the margins of millers, forcing a hike in flour prices by 5 percent.

The new price hike has already taken effect, a BusinessDay survey of key markets across Lagos, Nigeria’s commercial capital, shows. A 50kg bag of flour that was sold for N10,700 two weeks ago now sells for an average N11,200.

Master Bakers Association says this may force bakers to increase the prices of bread or cut down the sizes of the dough when they hold a meeting today to deliberate on the issue.

“The cost of production is weighing on us and there is low consumer demand. Flour millers are absorbing a lot of cost because we are conscious of the Nigeria that we live in today and the buying power,” said Lanre

Jaiyeola, vice president, Flour Milling Association of Nigeria.

“There are issues of wheat prices which account for most of our production cost, cost of interest rate and exchange rate as well as low purchasing power and all of these dynamics affect the eventual production,” Jaiyeola said.

“Flour millers need to survive and by surviving we need to be profitable substantially. This has made us increase the price of a bag of flour by N500,” he added.

The evidence of the above shows in the financial statements of listed flour millers in the country.

For the year ended December 2018, Dangote Flour Mills posted a loss of N1.15 billion, from a profit of N15.13 billion the previous year. This shows a 92 percent decline in profit.

Similarly, revenue dipped by 10 percent from N124.7 billion in 2017 to N112.3 billion in 2018.

Cost of sales increased from N95 billion to N102 billion in the same period.

Although other millers are yet to release their full year 2018 financial statements, the ninemonth financial statement also shows similar trends.

Flour Mills, Nigeria’s biggest miller by market size, saw its profit decline to N7.9 billion in the nine months ended September 2018, from N13.2 billion in the corresponding period of 2017.

The company’s revenue also decreased by 6 percent to N400.6 billion, from N427.5 billion a year earlier, while cost of sales increased by 5 percent.

Similarly, Honeywell, Nigeria’s fifth miller, posted a decline in profit by 95 percent to N143 million in the nine months ended September 2018, from N2.8 billion in the year-earlier period.

Revenue increased to N55 billion from N54 billion, while cost of sales also grew from N42 billion to N45 billion in the period under review.

“Nigeria purchasing power is declining and this is because of our economic realities. For the

millers to increase prices of flour at this time, it shows they can no longer manage the situation,” said a research analyst who does not want his name mentioned.

“Wheat, the key input in producing flour, is mainly imported and evacuating goods from the ports has been very difficult for a period of time now and this is also affecting their production.

There is a limit to which the millers can control their cost, so they have no choice than to increase prices,” the analyst said.

Jude Okafor, national publicity secretary, Association of Master Bakers and Caterers of Nigeria, said bakers are currently managing to survive and the price increase will further compound their woes.

“It has been difficult for us as prices of inputs keep increasing and Nigerians are not consuming bread like before because of the economic situation. The outcome of our today’s meeting will determine how we will handle the issue,” Okafor said.

Short-let apartments, student housing top destinations investors could seek good returns CHUKA UROKO

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hough the real estate sector of the Nigerian economy remains in recession long after the wider economy exited a crippling 15-month recession, the sector still offers pockets of opportunities to investors and these could be located in four frontline destinations, BusinessDay checks have shown.

The segments of the market or destinations that investors can invest in and reap

profitably are the short-let apartments, student housing, co-working spaces and small-sized multi-family units apartments.

The country’s real estate market is estimated at N4.7 trillion with a yearly demand of 1 million housing units while only an estimated 100,000 units are supplied, meaning that opportunities are there driven by strong fundamentals.

Experts note that demographics and consumer purchasing power are strong, but people-issue or population is www.businessday.ng

stronger. Nigeria has a large number of people who are very aspirational. The median age here is estimated at 19 years while the average age is 27.

This means that the country has about 75 million people between the age of 16 and 27, implying that the future is bright because all these people have to live, work, eat and play; they also have to go to school and hospital somewhere and real estate envelopes all these and provision has to be made for them.

Short-let apartments in La-

gos, Port Harcourt and Abuja have grown in popularity.

“This growth is partly driven by the tepid return of expatriate technicians and the influence of Airbnb,” Ayo Ibaru, a director at Northcourt Real Estate, said, explaining that Nigeria has become the fastest growing market in Africa for Airbnb.

Airbnb is a platform that allows property owners earn income on their residential assets, and it has been growing by over 200 percent in the last

Continues on page 34

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agos State commissioner for finance, Akinyemi Ashade, has provided reasons why the state government did not approach the capital market in 2018 to raise fund via its N500 billion debt issuance programme.

Ashade, who discussed the financial strategies that underpinned the Governor Akinwunmi Ambode administration in the last four years in an exclusive interview with BusinessDay, said the government was cautious because it was a year preceding general elections.

According to Ashade, although the state’s 2018 budget of N1.04 trillion made provision for debt financing, as always, to fund the infrastructural renewal programme of the administration, the financial strategies

adopted by the government in relation to the Internally Generated Revenue (IGR) of the state also pointed to the need to slow down borrowing.

The Ambode administration launched a N500 billion debt issuance programme in December 2016 to be drawn in tranches with 10-year moratorium. Of the N500 billion, the outgoing government accessed about N144.4 billion. This, Ashade believes, leaves room for a new administration in the state to borrow.

Giving more insight, the finance commissioner, who is of the view that Lagos has the potential for loan-to-GDP ratio of up to 10 percent as against 2 percent currently, said in an election year, the market was cautious.

•Continues online at www.businessday.ng

Sluggish recovery revealed by banks’ shrinking loan books BALA AUGIE

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igerian banks largely did not grow their loan books in the past year, a signal that the macroeconomic environment remains weak and non-supportive for growth.

The 12 largest lenders quoted on the floor of the Nigerian Stock Exchange (NSE) saw combined loans and advances dip by 6.37 percent to N13.18 trillion in December 2018, from N12.34 trillion a year earlier. This compares with a 25.14 percent increase between the 2013 and 2014 financial year.

“If you look at it critically, one of the strongest periods of loan growth was between 2011 and 2014 when many sectors were opened to lending. International Oil Companies (IOCs) were divesting from their offshore fields to shallow waters; also, we had the power sector privatisation,” said Omotola Abimbola, research analyst at Chapel Hill Denham Ltd. “Infrastructure spending through private sector partnership will help de-risk the manufacturing industry and unlock opportunities in the economy,” said Abimbola.

A breakdown of the figure shows Guaranty Trust Bank (GTB), the largest lender by market capitalisation in Nigeria, saw loans and advances to customers fall by 12.27 percent to N1.26 trillion in December 2018 from a year earlier, compared with 21.10 percent increase between 2013 and 2014 financial year.

Access Bank’s loans and advances to customers were down 10.19 percent to N1.85 trillion in the period under @Businessdayng

review, compared with 38.69 percent increase in 2013-14.

Zenith Bank bucked the trend with loans and advances to customers up 8.57 percent to N2.10 trillion in the period under review.

First Bank Holdings’ loans and advances were down 7.89 percent to N2.54 trillion from a year earlier, compares with 21 percent increase in 2013-14.

Credit to the private sector grew by N1.23 trillion or 2.2 percent to N24.16 trillion, according to the Central Bank of Nigeria (CBN) Depository Corporation survey report for February 2019.

Johnson Chukwu, managing director and CEO, Cowry Asset Management Ltd, said the expansion in credit has been going to the public sector as yields remain attractive at between 13 and 14 percent.

“Economic recovery rate has been slow and financial institutions are cautious of rising Non Performing Loans (NPLs),” said Chukwu.

While GDP expanded by 1.9 percent in 2018, it is still below the long-term growth rate of the economy at 7.60 percent.

In the secondary net treasury bills market, average yields declined w/w by 11 basis points bps to close at 13.3 percent, as liquidity injections buoyed bullish sentiments.

Analysts at CSL Stock Brokers Ltd said the apex bank has on different occasions resorted to using incentives and in some cases coercion to increase lending to the real sectors of the economy, but these have failed to achieve the desired outcomes.

•Continues online at www.businessday.ng

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Nigeria lags behind peers as regulated pension industry lacks depth David Ibidapo

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espite year-onyear increases on assets under management (AUM) in the Nigerian pension industry, Nigeria still lags significantly behind peers with assets accounting for far less than 10 percent of the country’s gross domestic product (GDP).

As reported by the National Pension Commission (PenCom), the pension industry’s AUM grew in January 2019 by 13 percent y/y to N8.74 trillion ($28.5bn).

Meanwhile, month-on-month AUM increased marginally by 1.2 percent.

Compared with South Africa with AUM accounting for about 70 percent of comparable GDP, Nigeria currently lags its peers with AUM accounting for just 6.8 percent of 2018 GDP. A report by FbnQuest stated, “They are growing at a healthy rate yet, at just 6.8% of 2018 GDP, Nigeria was relatively late (2004) with its legislation creating the framework for regulated pensions.”

This depicts the lack of depth in the Nigerian pension regulated industry and “in need of greater depth,” analysts at FbnQuest noted.

The PenCom report further

showed about 72.9 percent of total AUM were holdings in FGN securities, which amounted to N6.37 trillion with more investments in Federal Government bonds to the tune of N4.48 trillion.

The role of the PFAs in naira debt markets remains pivotal.

Their holdings of FGN bonds at

www.businessday.ng

end-January represented 45.1 percent of the stock of the instruments at end-year.

Treasury bills on the other hand amounted to N1.78 trillion, accounting for about 28 percent of total FGN securities value.

Meanwhile, bearish trend witnessed in 2018 in the Nigeria equities market has seen the

Nigerian pension industry draw back on their holdings on domestic equities.

The share of AUM invested in domestic equities has declined over 12 months from 9.7 percent to 6.6 percent. During the period, the Nigerian All Share Index (ASI) plunged 17.82 percent year-on-year.

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Chevron reiterates commitment to protecting people, environment … five oil wells belonging to Chevron razed by fire in Ondo Francis Sadhere, Warri, & YOMI AYELESO, Akure

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hevron Nigeria Limited (CNL), operator of the joint venture (JV) between the Nigerian National Petroleum Corporation (NNPC) and CNL (NNPC/CNL JV), on Thursday reiterated its commitment to protecting the lives of its host communities and their environment.

Chevron in a statement made available to BusinessDay in Warri said it had confirmed that at about 10pm on Thursday, April 18, 2019, a fire was observed at the Ojumole Well No. 1, an idle and plugged well with no flowline connected to it.

Ojumole field is in NNPC/ CNL JV’s Western Niger Delta area of operations.

Chevron said it made the observation when it conducted an overflight to evaluate the fire and also mobilised emergency responders to assess the

site, contain the fire and boom the area.

“In addition, CNL notified community stakeholders about the incident and also reported it to the Department of Petroleum Resources (DPR), National Oil Spill Detection and Response Agency (NOSDRA) and other regulatory and security authorities.

“A Joint Investigation Visit (JIV) to the site of the incident on Saturday April 20, 2019, by a team made up of regulatory agencies, community stakeholders and CNL, determined that the fire incident was caused by third-party interference. There was no impact to any of the neighbouring communities.

“CNL is currently working with contractors to safely put out the fire as quickly as possible.

“CNL remains committed to the safety of the communities and the environment in its areas of operation. We continue to conduct our operations safely, reliably and efficiently, with utmost consideration for pro-

www.businessday.ng

tection of people and the environment,” the statement read.

Meanwhile, about five oil wells belonging to the Chevron in some communities in Ilaje Local Government Area of Ondo State were razed by fire on Thursday.

A source told our correspondent that the fire started in Ajegunle Ikorigho community and spread to communities like Ojumole, which is located in Ikorigho land in the local government.

According to the source, the inferno also affected Isan-West field, Parable field, Malu field, Ororo and Opokaba Otumara, Ikorigho, Ajegunle-Ikorigho, Zion Ikorigho, Iluayo, Kendo Ayeren and EhinmoghanIkorigho communities, all in Ilaje Local Government.

The cause of the fire had not been ascertained as at press time.

However, the CNL said the inferno started last week Thursday but the residents of the affected communities confirmed that fire was yet to be put out up till Thursday.

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NEWS

Insecurity: Senate invites IGP OWEDE AGBAJILEKE, Abuja

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enate has invited the acting Inspector General of Police, Mohammad Adamu, to appear before it over the rising insecurity in parts of the country.

The Senate believed that Adamu’s explanation would help in understanding the problem and proffering solutions.

It also urged the government to set up inter-agency task force to tackle cases of banditry and kidnapping in Kaduna, Katsina, Zamfara and Niger states as well as intensify the search for the perpetrators and bring them to book.

Equally, it tasked security agencies to immediately deploy the use of drones and interceptors in tackling kidnappers asking for ransom and give special security cover to foreign workers and tourists.

This was sequel to a motion moved by Shehu Sani (PRP, Kaduna) and co-sponsored by 108 other senators at Thursday plenary.

In their separate contributions, lawmakers condemned the gruesome killing of 29-year-old British humanitarian worker, Faye Mooney, a Nigerian, Mat-

thew Oguche and abduction of three others on a holiday resort in Kajuru Local Government Area of Kaduna State.

Although, the IGP is expected to appear next week, no specific date has been fixed.

In his lead debate, Sani expressed concern that security agencies are yet to tackle to nip the challenge in the bud.

He stressed the need for telecommunication companies to provide security agencies with information in areas where there are kidnappings, even as he urged the Senate to send a delegation to the British High Commission.

The lawmaker said despite the repeated attacks, no one has been brought to book by the government, a development, he observed has emboldened the bandits to carry out more heinous crimes.

He said: “In recent times, the attacks on individuals, houses and villages have become one too many and there is no single person that has been brought to book as a result of the wanton killings and the so much emphasised efforts at combating the crime is not yielding fruitful results.

Experts offer explanation on why green building is future of housing CHUKA UROKO

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or its economy and sustainability coupled with growing population and fast-paced urbanisation, green building is the future of modern housing, experts say.

A green building is that building, residential or commercial, that incorporates design techniques, technologies, and materials that reduce dependence on fossil fuels and negative environmental impact.

The experts, who gathered at an EDGE Discovery Workshop organised in Lagos, Thursday, by GreenSquareMetre in collaboration with International Finance Corporation (IFC), explained that green building had become necessary because they reduce costs of energy, water and materials by as much as 20 percent, hence design considerations have gone beyond space comfort and convenience alone.

Modern architecture and housing developments are also, increasingly, thinking ahead of today to take care of the future of cities and other human settlements.

“Buildings account for about 40 percent of energy use globally and 19 percent of greenhouse gas emissions. By 2050, the built environment is expected to double due to high population growth and urbanization trends”, Shaninomi Eribo, Edge expert and founder/CEO, GreenSquareMetre, said in his presentation at the workshop.

Eribo pointed out that most of the growth he hinted about would occur in emerging mar-

kets, particularly in middle and low income countries such as could be found in the Sub-Saharan African region of which Nigeria is part.

Chii Akporji, founder/CEO, Alphacities Africa, had disclosed at another occasion that “50 percent of the world lives in cities today and 70 percent is expected to live in urban areas by 2050”, adding that the world population was expected to reach 9 billion by 2050, about 34 percent higher than what is presently available while growth would be fastest in poor countries like Nigeria.

“Critical infrastructure, especially power, energy and water are still a huge challenge in most cities. Globally, cities account for up to 70 per cent of energy use and much of greenhouse gas (GHG) emissions. These cities also host most of the infrastructure exposed to risk from climate change, requiring them to invest in resilience, which includes green buildings.”

To move onto a greener development path, Eribo advised that resource-efficient building practices must be introduced and implemented, explaining that green construction offered a chance to secure emission cuts at a low cost and lock in energy and water savings for decades to come.

“The greatest benefits of green buildings is reduced energy consumption, which potentially reduces dependence on fossil fuels and global GHG levels,” Eribo emphasised, adding that sustainable buildings, sustainable cities and sustainable development were all interrelated concepts. www.businessday.ng

L-R: Taiwo Shote, head, corporate banking, Rand Merchant Bank (RMB) Nigeria; Madukhar Khetan, group CFO, Dufil Prima Foods plc; Michael Larbie, CEO, RMB Nigeria/regional head, West Africa; Ngover Ihyemb–Nwankwo, head, coverage, RMB Nigeria, and Sid Khandewal, CFO, TG Arla Foods Products LFTZ Enterprise, during the RMBN online transactional banking platform launch: RMBN Digital

AIB report reveals late Taraba governor not competent to fly crashed airplane … indicts NCAA on inadequate regulation IFEOMA OKEKE

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c c i d e n t I nv e s t i gation Bureau (AIB) on Thursday released six final accident reports involving the crash that involved late Danbaba Suntai, former Taraba State governor, who the bureau said was not competent to fly the ill-fated Cessna 208B that crashed on October 25, 2012.

The other reports involved Delta Airlines Airbus A330 - 223 on February 13, 2018, and Bristow Helicopters Sirkorsky S76C6 +, which crashed on February 3, 2016.

Others involved a Diamond DA40D aircraft operated by International Aviation College in Ilorin and a GulfStream G200 aircraft operated by Nestoil plc.

Speaking at a briefing at its headquarters in Lagos, Akin

Olateru, AIB CEO, said accident reports were not meant to be punitive, but said though the bureau could not conclusively determine the cause of the crash involving the late Taraba governor, but Suntai as pilot of the illfated airplane was not certified, qualified and competent to fly the aircraft.

Olateru said the decision of Suntai to operate a Visual Flight a Rules (VFR) flight after sunset was inconsistent with aviation regulations.

The AIB boss fingered the Nigerian Civil Aviation Authority (NCAA) for its inadequate oversight duties as a regulator, because the ill- fated Cessna aircraft was not in NCAA registry.

The ill-fated aircraft does not have any maintenance record in any Aircraft Maintenance Organisation (AMO), he said.

The report made two safety recommendations urging Ni-

gerian Airspace Management Agency (NAMA) to take appropriate action to relocate the existing control tower at Yola Airport in order to enhance the aerial view of the approach path runway 35 from the tower.

The report said the NCAA should ensure all pertinent regulations with regards to the operations of the aircraft and certification of all relevant personnel and facilities of the Ministry of Works and Transport, Taraba State government are appropriately complied with.

The AIB said its findings concerning Suntai’s crash revealed: “The pilot was not qualified to fly Cessna 172 and had total logged flying hours of fifty eight hours forty minutes.

“The pilot had no relevant endorsement to fit Cessna Caravan 208B. The pilot does not have instrument ratings and night flight privileges.”

On the serious incident involving Delta Airlines Airbus A330-223, the AIB said its findings revealed that the aircraft engine caught fire due to fuel manifold cracking attributable to high vibratory stresses.

It read: “An over temperature condition and localized fire within the number one engine cowling triggered a fire warning. The over temperature and fire were caused by ignition of fuel from a hairline crack on the fuel manifold supplying fuel nozzle one.”

The AIB said it had issued safety recommendations to the National Transport Safety Bureau to consider informing the United States Federal Aviation Administration to issue an airworthiness directive and safety bulletin to the aircraft engineer manufacturer to address the fuel nozzle and fuel manifold modes.

FEC approves N52bn for eBorder project … says Buhari won’t dissolve cabinet until May 22 Tony Ailemen, Abuja

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he Federal Executive Council (FEC), Thursday, approved N52 billion for eBorder solution that would enable government monitor 86 border posts and 1,400 illegal entry routes.

Meanwhile, it has been revealed that President Muhammadu Buhari will not dissolve his cabinet until May 22, this year.

Minister of information and culture, Lai Mohammed, and his Interior counterpart, Abdulrahman Dambazau, disclosed this on Thursday, while briefing State House Correspondents after the FEC meeting presided over by Vice President Yemi Osinbajo, saying the President would hold a valedictory session with members of the FEC on May 22, ahead of his inauguration.

Buhari will be inaugurated on May 29, to begin another four-

year term in office.

He said the ministers, as directed by President Buhari are already preparing their handover notes to be submitted to Permanent Secretaries in their respective ministries before the administration winds down completely.

According to Lai, “We will be having a valedictory session on 22nd May. The cabinet remains intact.”

Dambazzau said the eBorder process started in 2012 but later picked up, but assured that the project would be completed within the next two years.

“There is a pilot project already which has been very successful, it was installed to monitor two borders,” he said.

The project, he said, is going to cover 86 border posts in the country, with the Nigeria Immigration Service working closely with other services.

“We will be able to also monitor 1,400 illegal routes that are used for smuggling and all kinds of cross-border criminal activi-

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ties,” adding that responses would be provided by the Air Force, Army and Customs units near the borders. The information will be available real-time 24/7.”

Water resources minister, Sulieman Adamu, disclosed that the FEC approved the extension of consultancy services on two priority ongoing projects.

Among the projects approved is the Igawa Dam Project in Katsina State, which is 50 to 60 percent completed.

“Last year, we got a total reversal cost of the project and extension, aligning everything together, the supervising and consultancy services also have to be extended to correspond with the completion period.

“To that effect, Council approved augmentation of over N91 million for consultancy service supervision in favour of Messers Cosidon Consultancy Service Ltd. This now raises the consultancy fee from N125.7 million to N217.4 million. @Businessdayng

Council also approved the Mangu Dam project, which has attained about 70 percent completion.

“We also had Revise Estimated Cost Approval last year which also approved an extension period for the work. In the same vain, the consultancy period has to be adjusted to correspond to the completion period. An augmentation of N111.6 million to raise the consultancy service supervision from N104 million to N215 million with an extension period of 24 months in favour of AIM Consultants Ltd. Minister of Budget and National Planning, Udoma Udoma, said Council also approved the award of the consultancy service contract for the provision of training services and integrated supply of starter packs for NCreative Trainees in the Northern states of Nigeria in favour of Messers Patigon services Ltd in the sum of N652,318,104 inclusive of five percent VAT.

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The branding and brand strategy explained EIZU UWAOMA

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ne day, not too long ago, the employees of a large company returned from their lunch break and were greeted with a sign on the front door. The sign was from the MD, and it said: “we regret to announce that, yesterday, one of the people who have been hindering our growth and even yours in this company passed away. Please join in the lying in state, at the boardroom.”

They started getting sad but curious about whom this person might be.

Well, they thought, at least he or she is no longer here. So, one by one the employees got closer to the coffin at the boardroom.

And when they looked inside it, they suddenly became speechless! There was a mirror inside the coffin: In the words of the Niccolò Machiavelli, “the greatest enemy will hide in the place you will never look at.” My real “enemy” is called the “inner me.” I believe “there is only one person who is capable of setting limits to your growth: It’s you.” But who really are you? I mean, what is your brand?

There is a lot of definition of what a brand is. But in summary, your brand is what people say about you when you’re not in the room.

Every interaction is like an entry into

a room. Once you walk into that room with a product or just yourself (whether it’s a business boardroom or someone’s life), you would be greeted with 3 moments of truth: 1. What people feel when they first see you 2. What you portray (as they interact with you/your business or proposition) 3. What you will be remembered for (after you leave).

Brand, Brands, Branding and Brand Strategy is about how to influence those 3 Moments of Truth. The truth is that anything can be a brand. There’s a big difference between who you think you are and who you really are in the minds of people. Create your own image. Own and radiate a world that people respect and would naturally want to be a part of.

Also, anybody can build a brand. It starts from finding you, creating and owning a product or value proposition and being the best at it. And then building from it something sticky (unique, identifiable, consistent) on being the best at that thing you are known for, so well, that they will talk about it when you’re not in the room.

A brand in a deeper definition is an illustration of a covenant. It’s a graphical representation of the purpose of that product. Like a cross is a graphical representation of Christianity and the half moon and star suggests Islam. In line with this, I have a covenant with my creator to be at my best and to always get better at it still. And my brand is just a graphical representation of that covenant.

There’s a central concept in “packaging and branding” for me: It states that the only thing more important than what you are selling is what the buyer believe he is buying -BE BRANDED” Put simply, a brand is the difference between a bottle of sugared, flavoured

carbonated water and a bottle of CocaCola, a car and a Benz, a phone and an iphone. It is the sum of the functional and intangible, that a consumer attributes to product or service. It is one of the most powerful things to build in life or business. When Procter & Gamble acquired Gillette in early 2005, only $6b of the $57b purchase price was for its tangible assets, the vast majority of the value being in its brands and relationship. On average, 86% of the market value is intangible, which is the real measure of the worth of new ideas, the right market choices and the brands to ensure future success in them. If you don’t stand for something, you will fall for anything. A unique and alluring identity and consistency is the key here.

Keep doing what you do till you don’t have to introduce yourself.

Products are made in the factory, but brands are created in the mind. A lot of people create products but don’t create strategies to make them stick in the mind. Every brand is a product, but not every product is a brand. In today’s world of “packaging”, please note, before “over packaging” yourself, ensure there’s tremendous value behind it. The truth is, some people will see through, branding isn’t value, it just enhances the value. Build a brand, package whatever you sell so well that it feels world class.

Blow the mind of your customers. Don’t put a good product in a bad container (you must have heard me say that “you should never put champagne in a Zobo bottle” else they’d under prize and undervalue it. So, below is a few steps I think is relevant to help build a brand.

•Decide what you’re going to brand.

•Do your research to find what ways you can be unique and in alignment to your truest self (brand essence) •Position your product or service.

•Write your brand definitions. Or-

‘

A lot of people create products but don’t create strategies to make them stick in the mind

chestrate your brand strategy.

•Develop your brand materials accordingly, (logo, colour, taglines, flyers, website, social media pages, souvenirs) •Launch your brand.

•Manage, leverage, and protect your brand.

•Realign your brand to keep it current.

Beyond brand strategy, it has been well communicated and placed side by side to what it complements. A good way to do this is through brand promises and brand associations. Take for example, for a car, a V8 engine should naturally be noisy, especially when it’s on top speed, like the Range Rover HSE, SUVs and Sports Cars. A Rolls Royce Phantom is a V8 but its brand promise says “at 120KM per hour, the only thing you’ll hear will be the sound of your Rolex (remember, original Rolex Wrist Watches don’t tick), now that’s brand excellence and the two mentions is a complementary Brand Associations, synonymous with luxury.

A good brand can be easily identified as it draws attention. To begin this journey is to create a perception. A brand that captures your eyes gains notice. A brand that captures your mind gains attention.

A brand that captures your heart gains commitment and only a few do this.

To get to a point where you gain attention, learn to master the arts of aesthetics, stories and impressions.

Everything is judged by its appearance and feel; what cannot be felt and unseen counts for nothing. The fight of a great brand is to not allow self to go into oblivion. Stand out. Be conspicuous, at all cost. Make yourself a magnet.

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

Is higher voice calling rates around the corner?

Stanley Mudgere

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ast week, news broke in the media that the Association of Licensed Telecommunication Operators of Nigeria (ALTON) was to present a cost-based proposal to NCC. The outcome of the research in question, if adopted by the authorities, will change the way millions of Nigerians communicate.

Apparently unsatisfied with the base price tariff structure which currently guides the pricing of voice-calls in Nigeria, ALTON which is made up largely of the big Mobile operators, has commissioned a research/data gathering exercise that will help it fight for a new pricing template, a cost-based tariff structure for voice calls.

However, in an effort not to arouse public protest, ALTON immediately stated “the new model would reflect the cost of doing business”, without necessarily increasing the price of voice-calls in the industry.

But the spirit and structure of the article points in the other direction. For instance, ALTON points to “multiple taxation and levies” on

telecoms equipment as factors that necessitated its push for the research and call for a cost-based tariff model for voice-calls.

What makes this even more peculiar is that ALTON went ahead to point to the experience of the biggest telecoms player in Nigeria in the article. A paragraph states that “in January this year, MTN expressed concerns regarding the shutdown of its facilities in Kogi State over allegations that it had not met its tax obligations to the state government.”

Pushing the envelope even further, Gbenga Adebayo, Chairman of ALTON who was quoted extensively in the article noted that telcos are required to pay 36 levies in Kogi state alone!

While this is deplorable, there are measures which telcos can adopt, to raise profitability and save Nigeria the stress that will follow a drastic or subtle price increase for voice-call in the country.

Indeed, it is worth noting that while multinationals in the telecoms industry are tactically hinting that there should be an upward review in voice-call rates, they are doing the exact opposite in the data and wholesale ends of the market, where indigenous ISPs and operators are being squeezed out of business. So, while these operators price data increasingly aggressively despite extremely congested networks and poor quality of service, they want to price voice services higher since they face no competition in the voice space with the number of lines that they have.

Surely, multinational telcos making almost 50 percent profit margins have no basis for justifying cost-based increases on poor Nigerians who are recovering from a recession that has rendered millions helpless and hapless. Finan-

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cial data released by MTN by year-end 2018 indicates that the company recorded Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) amounting to N453.1 billion, that amounted to 30.8% growth compared to 2017! Likewise, Airtel reported in Feb 2019 for the quarter ended in Dec 2018, 25% revenue growth from $243m in 2017 to $303m in 2018.

If these multinationals are looking at improving profitability, one of the options before them is further cost cutting through infrastructure sharing and investing in providing more of the value chains e.g. software development, hardware integration and even outsourced support service within Nigeria. Unlike their counterparts in more developed climes where a high proportion of their inputs are developed in-country, not enough is being done by operators in this direction at the moment.

Indeed, for the Nigerian economy to grow and the unemployed youth to get jobs, the telecoms industry which is almost 12% of the nation’s GDP needs holistic solutions for the economy and not retail price relief for multinationals who are already at the top of the pyramid.

The danger in a voice-call price increase is the contractionary impact it would have on the poorer segments of our economy. These are the citizens who are least likely to own smart phones that allow them use free call services and also lack access to 3G and 4G services because these operators have only deployed 2G in their less affluent communities.

Globally, there is a push for increased consumption of telecoms services because of the positive impact they have on economic growth and the wellbeing of ordinary citizens. So, while

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as a national policy we should be looking at how to make voice and more advanced services available to more Nigerians, we are instead considering imposing higher charges on the most vulnerable in our population.

The multiplier effect and consequences of price adventurism by our mobile operators should be carefully weighed against strategic national interests and growth goals.

The Nigerian economy to grow and the unemployed youth to get jobs, the telecoms industry which is almost 12% of the nation’s GDP needs holistic solutions for the economy and not retail price relief for multinationals who are already at the top of the pyramid.

The danger in a voice-call price increase is the contractionary impact it would have on the poorer segments of our economy. These are the citizens who are least likely to own smart phones that allow them use free call services and also lack access to 3G and 4G services because these operators have only deployed 2G in their less affluent communities.

Globally, there is a push for increased consumption of telecoms services because of the positive impact they have on economic growth and the wellbeing of ordinary citizens. So, while as a national policy we should be looking at how to make voice and more advanced services available to more Nigerians, we are instead considering imposing higher charges on the most vulnerable in our population.

The multiplier effect and consequences of price adventurism by our mobile operators should be carefully weighed against strategic national interests and growth goals.

Mudgere, a lawyer, writes from Lagos

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Friday 26 April 2019

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The enigma of destinations

Temitayo Fagbule

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ou’ve probably seen that advert with the caption: Own your journey to success. The young man with a crew cut and luxuriant beard wearing a maroon turtleneck shirt and navy blue jacket with a sidelong stare; the blurry background is gold and reddish brown.

I found in the caption echoes of self-help books on how to succeed hawked in Lagos traffic. It’s an expansive version of the Nigerian aspiration to arrive, to blow. The words sounded like an imperative to act, despite perceived haters, enemies, obstacles. Pursue your destiny; own your destination; seize your future. It’s an imperative that resonates in Lagos, the City of Hustle.

Later, it occurred to me how the caption contrasted with the lines from Rudyard Kipling’s famous poem “If” – “If you can meet with Triumph and Disaster/And treat those two impostors just the same”. If success is a destination, a place where one is journeying to, what is failure? That’s

not my portion, I imagine, would be the immediate response of many.

Initially, the caption only reminded me of an essay Zadie Smith wrote in 2014, “Find your beach”, a critique of the American individualism lived out in Manhattan. But when I read Feyi Olubodun’s The Villager: How Africans Consume Brands I understood there was much more to those five words. “Success is defeating the enemy,” writes Olubodun. Most times the enemy is that uncle who said you’d never make it. Achieving the unexpected, success, is how the enemy is confounded.

The primary objective of Olubodun, former CEO of Insight Publicis, an advertising firm, is to demystify Africa and show how sophisticated the market is. Africans are not westernizing but modernizing, he argues, and this is crucial for local and international brands that want to make it in Africa.

Olubodun draws on his background in Psychology, uses economic data and his marketing experience to make a bold claim: the Nigerian is the model for understanding the African consumer in general, thus The Villager. Africa isn’t a country, but he contends: “While each African country has a variant of the Nigerian story, each is on some journey similar to Nigeria.”

Many multinational businesses make a similar case: if you can make it in Nigeria, you’ll succeed anywhere in Africa. Nigeria, they argue, is a micro-

cosm of Africa where you’ll find all the paradoxes that inflict the continent: a history of military rule; resource-rich but desperately poor; crumbling infrastructure; scarcely stable business environment; regulatory bottlenecks; high cost of doing business etc. Yet it has an ambitious young population and the largest economy in Africa which is home to some of the fastestgrowing economies in the world.

Besides Nigeria’s size and economic potential, the continent is listening to and watching Nigeria; Africans are hooked to Naija music and movies.

Olubodun goes further. He makes a case that Nigeria’s ethno-linguistic diversity is a lens into Africa, and takes a long view, when the largest consumer market will be in Africa. The book thus serves as a pair of lenses with which to see the African consumer, a compass for brands to map their journey on the continent.

The village, Olubodun asserts, is a psychological construct made up of 8 components – acculturation; community affirmations, sanctions and rituals; herd mentality; enemy complex; religion and signaling the journey, i.e., the need to communicate one’s life journey.

A savvy brand strategist and storyteller, his book is peppered with African proverbs and anecdotes from his vast experience working with some of Nigeria’s biggest brands. Each chapter begins with an epigraph. Chapter two titled The Myth of a Global Brand

‘

Besides Nigeria’s size and economic potential, the continent is listening to and watching Nigeria; Africans are hooked to Naija music and movies

begins with a quote from The Global Brand by Nigel Hollis: “…few of today’s global brands were originally meant to travel.”

In other words, relying on data alone won’t win the market; that’s like travelling with a compass without a map. This is the lot of brands that want to stay true to their identity while ignoring the socio-cultural context of the market. Stubborn brands do so to their peril while others, those who pay attention to the village where the villager comes from, prevail. Of all the proverbs in the book my favourite is, “If you want to travel fast, you travel alone. If you want to travel far, you travel together.”

Travelling with Olubodun, filtering the caption, Own your journey to success, through his constructs, I began to see that there are as many journeys as there are travellers. Many embark on a journey due to herd effect (ascribed aspirations or “my mates are doing it”); others because they merely want to signal their arrival or prove an enemy wrong. And destinations differ.

One person’s success is another person’s failure. Better still, treat both as impostors whatever your destination.

Nevertheless, we can agree that commuting to work in Lagos is a journey.

Arriving safe, sound and in time is success.

The Villager: How Africans Consume Brands (146 pages) is published

by Ouida Books.

Fagbule is Chairman, Editorial Board

Mrs. Francesca Emanuel and the golden era of Nigerian public service

Tunji Olaopa

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t was great time sharing platform with a former boss, Alhaji Moibi Shitu, easily one of the finest breed of civil servants and retired permanent secretary, Dr. Dere Awosika, a civil service professional par excellence and retired permanent secretary. This was at the Prof. Pat Utomi’s Centre for Values in Leadership (CVL) “Leaders without title” series in honour of the first female Federal permanent secretary, Mrs. Francesca Emanuel (Nee. Ferreira) who just clocked 85. Mrs. Emanuel is such a unique and admirable personality with such incredible mix of talents: an accomplished artiste, actress, poet, dressmaker, soaring soprano singer and Commander of the Order of Niger (CON). She worked with the legendary super-permanent secretaries, though as permanent secretary, she a was contemporary of the likes of Mr. Grey Longe, Alhaji Shehu Musa, Alhaji Abdulazeez Attah, Chief Olu Falae and Alhaji Adamu Fika, to name just a few. It was an occasion that afforded reflections on what made the golden era of the civil service legendary, what went wrong and what could be done to salvage the civil service, going forward.

When we talk about the Golden Age of administration in Nigeria’s administrative history, we refer to that period in the evolution of the Nigerian Civil Service when the civil service system was eminently set and capable of deliver-

ing optimal performance that could transform positively the postcolonial expectations of the Nigerian state. There were three factors that gave the civil service system its capacity readiness.

First, there were a set of individuals, schooled in the value-based institutional parameters of the retreating colonialists, who were eager to lay the foundation of an indigenous national development in Nigeria. Second, there was equally in existence a development-sensitive national dynamics rooted in a proper federal framework consisting of a centre and regional arrangement motivated by inter-regional competitiveness.

A region thus facilitates its own development within the federal space that leads to the eventual development of Nigeria. Third, there was also a values-propelled development atmosphere in Nigeria, around the twin imperatives of nation building and economic development.

One of those administrative pioneersthat made up the framework of dynamic personnel that defined the then emerging civil service is Mrs Francesca Yetunde Emanuel, Nigeria’s first female administrative officer, and first female permanent secretary. This is a woman who displayed all the right qualities that distinguished other pioneers like Chief Simeon Adebo, Chief Jerome Udoji, Allison Ayida, Ahmed Joda, Gey Longe, et al. Like Adebo who studied English and Udoji who started as a trained lawyer, Mrs Emanuel studied Geography. But again, like the rest of the pioneers, she was not only there from the beginning of the entire administrative trajectory, she took the service as a special calling, a vocation that demanded from them integrity as the sole defining feature of a leader.

As at the time the likes of Mrs Francesca Emanuel and the other pioneers were stepping into the civil service, there were two poignant characteristics of that time that made them stand out as the very example of what it means to see the public service as really a service to human-

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ity. The first feature of the time was the prominence of social and moral values as the guiding standards for the assessment of character and profession. These were the period in which those like Wole Soyinka, Akin Mabogunje, Ojetunji Aboyade, Bala Usman, Claude Ake, Billy Dudley, Tai Solarin, and the rest of them, were growing up and engaging with the Nigerian state. Specific values of patriotism and morality defined their elite status. This was the period when Soyinka hijacked a radio station, and went to prison for it, because of his firm belief in the Nigerian project.

The second prominent feature of this period was that the Weberian administrative tradition was still at its best. This system incorporated genuine administrative features that demonstrated the capacity readiness of the system for service delivery. It was also a tradition with a strong democratic intent and dynamics. Permit me to point out just a few. Meritocracy was the key factor in recruitment, training, appointment and posting. Staffing, for instance, was according to the dictates of technical qualifications, with judicious doses of mentoring, coaching and the benefits of increasing professional experience through postings and assignments. Adherence to merit was the system’s own way of shielding itself from the politics of representativeness that gave birth to the quota system. Furthermore, the Federal Public Service Commission was a significant structure established to serve as the gatekeeping mechanism for guarding jealously the professional pedigree of those who were sworn to serve the public. For instance, the government not only recognized the capacity gap, but was willing to invest heavily in capacity building to make the civil service system more functional. Performance and productivity were all the more enhanced with a very strong town and gown multidisciplinary relationship that facilitated the cross-fertilization of ideas and insights in a manner that motivated a research-

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industry-policy synergy.

But the public service was not just a complement to the government’s democratic intents and policies; it was itself a repository of democratic practices. There were also public service codes of practices and value dynamics that were respected. The General Order (GO) was a framework of democratic governance that removed fear and favor from the conduct of the administrative business. As a matter of professional reckoning, politicians were the prima facie policymakers, yet, there was in existence a framework of accountability, administrative regulation and transparency which ensured that even the politicians function within the established understanding required for the politics-administration dichotomy.

At this point, Nigeria was already basking in the flush euphoria of enormous wealth occasioned by the petrodollars that filled the government treasury beyond the imagination of the federal government. And the Nigerian Civil War was already fought and won, and Nigeria was basking in the victory. A lot was owed the super permanent secretaries who performed the administrative magic that led Nigeria on a path of reconstruction. Unfortunately, this string of administrative successes undermined the system’s capacity to face the challenges that still lay ahead the nascent Nigerian state. Eventually, the oil boom complemented the institutional insensitivity of the military, and Nigeria, especially the civil service system, went into a serious nosedive.

The military is the very antithesis of democratic administrative tradition.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Prof. Tunji Olaopa, retired Federal Permanent Secretary & Professor of Public Administration. tolaopa2003@gmail.com, tolaopa@isgpp.com.ng

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Friday 26 April 2019

BUSINESS DAY

Editorial Publisher/CEO

Frank Aigbogun editor Patrick Atuanya DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua

On Jumia’s listing on the New York Stock Exchange

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ast week, Jumia became the first Africafocused technology company to list on the New York Stock Exchange (NYSE). It’s a good pitch for doing business in Africa but a wake-up call for Nigeria, the e-commerce company’s largest market.

Market expectation, market behaviour and investment climate are the three pillars on which investment decisions stand. And it is why investors and businesses flock to stock markets in New York, London, Hong Kong and Shanghai.

In seven years, Jumia rose to become Africa’s largest ecommerce platform and the continent’s first unicorn i.e. a start-up with a value of $1 billion and above. Though active in 14 African countries, 70 percent of its business is from Nigeria.

Jumia is riding on the surge of mobile phones and broadband networks across Africa – the mobile economy in West Africa generated $50 billion in 2018, according to the latest GSM Association (GSMA) re-

port on the region. It’s contributing to economic growth and job creation. By 2045, mobile phone subscribers in West Africa are expected to top 248 million, more than half region’s population.

Last February, active mobile phone subscribers in Nigeria hit 173 million. There are now more mobile phones than Nigerians.

Nigeria is at the forefront of the mobile economy as many Africans’ first encounter with the internet is through a mobile phone.

Smartphones are said to be the new means of production as we increasingly search, advertise, buy and sell goods and services online. Where could Jumia get the capital needed to take advantage of this growth and expand its business?

The NYSE was the logical choice for Jumia because it offers size, depth, liquidity and sophistication. Investors and businesses all around the world are looking for markets that can help them achieve their investment objectives. But they won’t risk investing if an extra naira that could be invested is considered especially valuable. In other words, an investment isn’t worth

it if a naira in hand is better than two in a stock market.

This is why the NSE has lost its mojo. From being the third-best market in the world in 2017, its returns (except for a few stocks) was among the most disappointing in the first quarter of 2019. In 2015, total market capitalisation was N17 trillion, it is N11 trillion today.

Investors gauge risk on the possibility of bad outcomes. They worry that the challenges Nigeria faced in 2018 will be carried over into 2019. With such expectations it’s difficult to mobilise local or foreign capital. Those who invest at all prefer to buy government debt; it’s risk free. Even if most of it is spent on salaries and serving previous debt.

Nigeria could produce more companies like Jumia; there are many promising start-ups in fintech, education, power and agriculture. Many are funded by international investors who, and rightly so, expect and prefer to make a return on their investment through an Initial Public Offer (IPO) in say New York, London, Hong Kong or Shanghai. Insisting that they list their shares

in Nigeria is out of the question.

Capital is mobile and at the tinniest whiff of undue regulation it will move elsewhere.

Other markets will capitalise on the IPO prospects of these bdding companies. What’s happening on the NSE is a snapshot, albeit an incomplete picture, of the larger Nigerian economy. No IPOs in three years and disappointing returns mean investors expect more of the same in the next four years.

It’ll be foolhardy to expect or insist that companies list their shares in Nigeria. Rather the way forward is reforms, if there is a genuine interest in seeing more Nigeria-based or –owned start-ups grow into pan-African businesses from capital raised in Nigeria and from Nigerians.

Sound fiscal and monetary policies coupled with structural reforms will boost productivity, encourage savings and attract investments into both blue chip Nigerian companies and SMEs. Uncertainty about negative developments affects investors’ confidence and suffocates the capital needed to breathe life into businesses.

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Friday 26 April 2019

BUSINESS DAY

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cityfile NAFDAC shuts illegal yoghurt factory in Yobe

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L-R: Degbola Lewis, Lagos State Security Trust Fund (LSSTF) board secretary; Phillips Oduoza, Yemi Idowu, Israel Ajao, retired DIG, board members; Oye Hassan-Odukale, board chairman; Babajide Sanwo-Olu, governor-elect, Lagos State; Obafemi Hamzat, deputy governor-elect; Abdurrazaq Balogun, LSSTF executive secretary/CEO; Opeyemi Agbaje, Gbolahan Lawal and Ademola Abass, board members, during a congratulatory visit to Sanwo-Olu, in Lagos.

ational Agency for Food and Drug Administration and Control (NAFDAC) has shutdown a yoghurt factory, Ruquyya Yogurt located in Potiskum, Yobe, over alleged circulation of unwholesome products.

Moji Adeyeye, NAFDAC’s Director-General, announced the closure in a statement issued in Abuja on Wednesday. She said the agency also confiscated equipment worth about N1 million during a surveillance operation in the factory recently.

“During a routine surveillance visit, NAFDAC closed down Ruquyya Yoghurt at Kukuri Lailai ward, Potiskum, for illegal production.

“NAFDAC officers ran

into the factory, unwholesome products and equipment worth one million naira were confiscated,” she said.

Adeyeye said that suspects arrested at the factory had been handed over to police for further investigation.

According to the statement, Lawan Musa, NAFDAC coordinator in Yobe, said the agency was poised towards eradicating fake and counterfeit products.

Musa called on the public to avail the agency with useful and timely information capable of enabling it deliver on its mandate Recalls that NAFDAC had earlier raised alarm about an unregistered food product, “Fan Yogo Gin and Ginger” drink.

Private sector partnership with LSSTF communities groan critical to secure Lagos- Sanwo-Olu Oyo under 1-year power outage JOSHUA BASSEY

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overnor-elect, Lagos State, Babajide SanwoOlu has identified continued private sector partnership with the Lagos State Security Trust (LSSTF) as being critical to keeping the state safe and secure for its over 21 million population and burgeoning businesses.

Sanwo-Olu stated this when the management and board of the LSSTF paid him and his deputy governorelect, Obafemi Hamzat a congratulatory visit in Lagos recently, pointing out that as a pioneer member of the LSSTF, he is aware of the challenges that necessitated its establishment 11 years ago.

According to the governorelect, his recent interaction with various groups prior to his election, also further exposed him to the security challenges currently confronting the state, which his administration will tackle headlong upon assumption of office on May 29.

He added that the LSSTF was deliberately modelled as a Public Private Partnership (PPP) to leverage on participation and contributions from the private sector to assist in the funding of security in the state, which is critical to the success of the fund.

“It is on record that other states have continued to come to understudy the fund to replicate it, while at the federal level, a bill to establish a police trust fund is being considered

at the National Assembly for the same purpose.”

Sanwo-Olu assured that the needs of the various security agencies in the state would be re-evaluated, so as to further enhance their capacity, adding that a technology-based solution would also be adopted to fortify the state security architecture.

T h e g o v e r n o r- e l e c t thanked the board for their visit and re-assured he would give prioritise to security and work closely with the fund to continue to solicit support from the private sector and well meaning individuals in the state.

Oye Hassan-Odukale, chairman of the LSSTF board, said that the fund has been instrumental in the relative peace and security enjoyed in

the state. He, however, stated that the underfunding of security agencies which led to the establishment of the fund still existed while they also have to grapple with the menace of kidnapping, terrorism/insurgency, drug abuse/trafficking, cult-related crimes.

On his part, Abdurrazaq Balogun, the executive secretary/CEO of the LSSTF, listed some of the challenges experienced in the administration of fund included over reliance on the fund by security agencies operating in the state, donor fatigue, and increase in cost of security equipment. He pointed to the need for more corporate organisations to frequently contribute their quota to the improvement of security in the state.

Edo: Police parade ‘killers’ of DPO, others IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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he police in Edo State have paraded six suspects in connection with the murder of four police officers attached to the Afuze Divisional Police Headquarters in Owan East local government area of the state.

Armed men on March 11, 2019 invaded the divisional police headquarters, killed four officers, including Kosemani Ojo, the divisional

police officer of the station, (Superintendent); Sado Isaac (Inspector); Justina Aghomon (Sergeant), said to have been pregnant at the time; and Gloria David (Sergeant).

Danmallam Mohammed, Commissioner of Police (CP), Edo State, who paraded the suspects at the command’s headquarters in Benin, Wednesday, gave their names as Agunu Ernest (24), Paul Richard (24), Sunday ThankGod (20), Sule ThankGod (20), George Sebastine (19) and Agbomewww.businessday.ng

khe Ayeimibor.

The suspects were paraded alongside 45 other suspects in connection with various crimes in the state.

The police chief said the suspects who blew off the station with improvised explosive device, got hold of the officers, stripped them of their uniforms before shooting them to death.

According to him, the suspects also broke into the cell and released suspects arrested for stealing motorcycle and made away with one AK47 riffle, one ber-

retta pistol and three GSM phones.

“Thereafter, they joined forces with the freed suspects, moved to INEC office which is about 60 metres away from the police station and destroyed the office. Though no life was lost but vehicles were set ablaze,” he said.

He explained that the operatives of the Special Anti-Robbery Squad (SARS) through a hi-tech intelligence, three released suspects were re-arrested and they led the police to arrest the other fleeing gang members.

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esidents of some communities in Iseyin local government area of Oyo State on Wednesday lamented the power outage in their areas in the last one year.

The affected communities include Osoogun, Ado-Awaye, Agelu, Akinlabi, Araromi, Ogboolasa and Akinwumi among others.

A representative of Osoogun and Agelu communities, Abiodun Bambi, said the situation requires urgent attention.

“It is saddening and unfortunate that we have been in perpetual darkness for a whole year now despite all our agitation and advance. We have made frantic efforts to get it restored but there is a limitation to what we can do as a people.

“I don’t want to talk too much because it’s a very pathetic situation, we are just appealing for power restoration to our communities,” he said.

Adedokun Ogunbayo, who spoke on behalf of Ogboolasa and Ado-Awaye communities, appealed to Ibadan Electricity Distribution Company (IBEDC) to restore power in the af@Businessdayng

fected communities.

“Power supply ceased in May 2018 and we hoped that it would be restored like they used to do, but days after days, we had continued to live without power.

“We w ere told our transformer shared by lot of communities was bad and since then we have been in darkness with no glimpse of hop; we are appealing to all tiers of government to prevail on IBEDC,” he said.

Reactiing, the IBEDC t e a m l e a d f o r Is e y i n council, Teslim Azeez, who regretted the development, said the 25KVA transformer serving the communities developed fault beyond repair last year.

“The company is doing all it could to ensure that power is restored back to the affected communities as soon as possible as the faulty transformer would be replaced. “ The authorities of IBEDC appreciate the importance of supplying power to these communities, we just want to appeal to our people to exercise patience as the matter is being treated with utmost urgency,” he said.

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Friday 26 April 2019

BUSINESS DAY

MoneyInsight Digital tools are transforming businesses; this is how your company can keep up Analysts share ideas on competing in a digital world at the Franco Nigerian Chamber of Commerce and industry conference ISAAC ANYAOGU

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igital technologies such as artificial intelligence, robotics and internet of Things among others are transforming businesses all over the world and companies who choose to remain aloof, may find themselves out of business because the old rules will no longer apply in this digital world.

This is a key message from the presentation by Ngozi Chidozie, partner, Strategy Lead & Digital Management Consulting at KPMG Advisory Services, and other analysts during the business breakfast meeting held by the Franco-Nigerian Chamber of Commerce on April 18, in Lagos.

Chidozie stressed that emerging technologies such as robotics, social media, 3D Printing, Artificial Intelligence, FinTech, drones blockchain and digital payments will bring breakthrough capabilities including lowering costs, faster growth, speed and automation.

These technologies will significantly impact the operating model of companies as it will bring out speed and automation, real-time decision making, borderless expansion and increased productivity – for companies

who develop a strategy for adoption.

Chidozie also emphasised that business models of companies will be impacted because the customer will no longer be seen as an abstract concept but companies will need to foster intimacy with customers, create new channels and markets and offer innovative propositions.

Customers will increasingly demand personalized, empathetic experiences, single line of communication across channels, information with contexts and businesses who anticipate the problem before it arises. Customers would be seen as individuals rather than segments.

Using data analytics, companies will be competitive tailoring their product and services to meet individual needs. Classifications based on age, status, income levels may no longer suffice.

Businesses will need to acquire new capabilities. This starts with “a clearly articulated vision and strategy,“ says Chidozie, “This implies a strong leadership alignment and governance with a focus on disciplined benefit realisation.”

It also means re-tooling your workforce and changing your work culture. Investments in digital skills, automation and innovation will be critical. It means deploring agile

workers who respond to changes rather than following a script and prioritising individuals and interactions over processes and tools.

Demand for skills such as dataentry, accounting, bookkeeping and payroll clerks, administrative and executive secretaries, assembly and factory workers and materialrecording and stock keeping clerks will decline. Emerging skills such as data scientists, Software Engineers, Digital Transformation Specialist, AI and Machine Learning Specialists and Digital Marketers will be in demand.

Customer collaboration will become more effective than contract negotiation, working solution over comprehensive documentation and delivering change in shorter cycles over doing business on an on-going basis. It essential means throwing out business practices that has served generations – but this is why it is a revolution in the first place.

Factors including a youthful population and growing digital adoption is reshaping the business climate making these changes inevitable. It is estimated that Nigeria will have the 4th largest millennial population in the world by 2030 of 90 million, says Chidozie citing data from the United Nations Development Programme.

According to data sourced from the National Bureau of Statistics, Facebook, Google and NCC, Chidozie argues that the next generation of customers are the millennials and GenZ which already consitute 48% of Nigeria’s population. Nigeria has 95million internet users of which 63million are active monthly, there are 25million smart phone users who could rise to 40million by 2020 and every month, 25million Nigerians visit Facebook. Companies that are not targeting this huge market would not be competitive.

Chidozie advices companies to focus on continuous delivery rather than “big bang” releases, to “fail fast, fail cheaply and recover quickly.”

She advised management to consider having leaders who will drive digital adoption and be clear on value metrics as well as adopt a framework to monitor value realised. The goal would be to integrate digital way of doing business into the company’s DNA by setting up infrastructure that will drive it.

Companies may find it cheaper to outsource implementation of a digital strategy but it is useful to have a clear plan on how to encourage in-house adoption. “Encourage a culture that allows for failure,” says Chidozie, “Do not punish ‘honest mistakes’.

ening language (e.g., “Your credit card has been suspended”).

• Lack of a personalized salutation or closing details (e.g., “Dear Valued Customer”).

• Watch for typos, poor grammar, punctuation, capitalization consistency and other warning signs it’s not legitimate.

• Scroll your mouse over any embedded links before clicking to check for suspicious domain endings • Verify that an alert or request for information is legitimate by looking up the company’s phone number and calling it yourself.

• Make sure your anti-virus and anti-spyware software is current.

Pharming: Where hackers redirect you from a legitimate website to an impostor site where your personal information is harvested (“farmed”).

Social networking sites like Facebook and Twitter increasingly are being targeted, so always be wary of opening any links – even from trusted friends – because their account may have been hacked.

A few tips to identify an unsafe website: • Never click on a link embedded in an email. Even if sent from someone you trust, always type the link into your browser.

• Look for signs of legitimacy.

Does the website list contact information or some signs of a real-world presence. If doubtful, contact them by phone or email to establish their legitimacy.

• Read the URL carefully. If this is a website you frequent, is the URL spelled correctly? Often times, fraud-

sters will set up websites almost identical to the spelling of the site you are trying to visit. An accidental mistype may lead you to a fraudulent version of the site.

• Check the properties of any links. Right-clicking a hyperlink and selecting “Properties” will reveal the true destination of the link. Does it look different from what it claimed to lead you to?

• When visiting a website that asks for sensitive information such as credit card numbers or your social security number, make sure that the website is encrypted over a secure connection.

Overall, utilize your internet browser’s security tools. Make sure to install the most current version of your web browser. Most browsers have sophisticated filters that can identify and warn you of potential security threats.

For more tips protecting personal and account information and preventing online fraud, visit: • The National Cyber Security Alliance’s www.staysafeonline.org.

• Visa offers VisaSecuritySense. com, which features tips on preventing fraud online, when traveling, at retail establishments and ATMs, deceptive marketing practices, and more.

And finally, don’t forget good-oldfashioned pickpocketing, mail theft, shoulder surfing and dumpster diving as ways people may try to steal your personal information.

How to catch a ‘Phish’ KEMI OKUSANYA

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heir names may sound funny but their financial consequences are not: “Phishing,” “smishing,” “vishing” and “pharming” are just a few of the ways criminals gain access to personal information via your computer or smartphone. If you are not careful, identity thieves can use harvested information to open fraudulent bank accounts, take out loans, rent apartments or even charge medical procedures to your insurance plan.

Unfortunately, every time the authorities plug one hole, crafty criminals figure out new ways to trick unsuspecting victims. Here are some identity theft scams to watch out for: Phishing: This is where you receive an email, purportedly from a trusted source like a government agency, bank or retailer that asks you to supply or confirm account information, log-in IDs or passwords. These imposters are “fishing” for your personal information. Legitimate organizations never ask you to verify sensitive information through a non-secure means like email.

Smishing (for “Short Message Service”): Like phishing, only it uses text messages sent to your cellphone.

Even if you don’t share any information, just by responding you’re verifying that your phone number is valid, which means it probably will be sold to others who will try to trick you into their own scams.

Vishing (voice phishing): This is when live or automated callers direct you to call your bank under the pretext of clearing up a problem (like theft or

overdraft accounts). You’ll be asked to share personal or account information. Keep a list of toll-free service numbers for all companies you use so you can call them directly without fearing you’ve been given bogus information. I also program these numbers – but not account numbers – into my cell phone in case I’m traveling.

A few tips for spotting risky emails and texts: • Never give sensitive information by responding to an email/SMS. Remember, legitimate organizations never ask you to verify those through a non-secure means like email.

• Although the “From” line may appear to be from a valid company email address, that’s easy for fraudsters to mimic (called “spoofing”).

• Beware of subject lines and body copy that use ominous or threatwww.businessday.ng

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Kemi Okusanya is Vice President, General Manager Visa, West Africa. @Businessdayng

Visa partners PalmPay to drive financial inclusion across Africa CALEB OJEWALE

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isa, a global payments technology company and PalmPay, a new player in Africa’s Fintech industry, have announced a partnership to advance financial inclusion across Africa through access to digital payment services.

As par t of the par tnership, PalmPay will launch an app with a mobile wallet in Nigeria, Ghana and Tanzania. The mobile wallet will offer customers a platform to top up funds electronically or via offline access points, with the ability to make and accept individual and merchant payments. Visa cardholders will be able to initiate payments within the app and make online and mobile payments by attaching their card details to their PalmPay profile. Non-card carriers can generate a virtual Visa card upon registration.

Additionally, the PalmPay app will provide access to a variety of financial products offered by third parties. PalmPay is also introducing a loyalty points programme to incentivize the growth of the service.

According to Otto Williams, vice president, Strategic Partnerships, Fintech and Ventures at Visa, advancing financial inclusion remains a priority at Visa and this collaboration with PalmPaywill help the company reach consumers and merchants not previously addressed by traditional financial services, across Africa.

“Around the world, there is a growing recognition that cash is a major impediment to advancing financial inclusion and Africa remains a cash centric region. Delivering access to digital payment services on more mobile phones will be a significant step towards the continued expansion of financial inclusion on the continent,” said Williams.

Speaking on the partnership, CEO of PalmPay, Greg Reeve said the company is building a digital financial ecosystem that brings together the best services and offers from across each market, which will be made available to anyone with a smartphone, including the unbanked.

Most existing apps are built to only carter for people who already have formal financial accounts that is you can only send money, request for loans once you have an account to deposit or receive such loans. With our mobile wallet, third parties can plug into our platform and encourage people who are just joining the digital world, to make and receive payments, Reeve said.

PalmPay is currently being tested by a limited number of private beta customers in Nigeria, Ghana and Tanzania and will be launched to the public in the coming months.

An early access version is available on the Google Play Store and the iOS App store that allows users to accumulate PalmPoints, which can be used for transactions once the full app is available.

Friday 26 April 2019

BUSINESS DAY

COMPANIES & MARKETS

15

Record US Limited Partners grace AVCA’s 16th annual conference

COMPANY NEWS ANALYSIS INSIGHT

Pg. 16

OIL&GAS

Could Japaul’s sustained heavy trade imply potential acquisition?

DAVID IBIDAPO, OLUWASEGUN OLAKOYENIKAN & GBEMI FAMINU

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gainst conventional knowledge and expectation of investors’ response to fundamentals of companies, Japaul Oil and Maritime Services Plc sustained gains on the Nigerian Stock Exchange (NSE) by trading heavily for two straight sessions, indicating buying pressure on the stock.

Japaul recorded a total turnover of 69.05 million units valued at N14.13 million on Tuesday, from 42,030 units worth N8,406 traded in the previous session respectively.

This caused the company’s share price, which has remained unchanged at 20 kobo for more than a month, to record its biggest gain in almost 5 months to 22 kobo.

“We might say there is an investor who is trying to acquire a significant amount of shares in the company,” Gbolahan Ologunro, an equity research analyst at Lagos-based investment house, CSL Stockbrokers Limited, told BusinessDay. Owing to the huge trade volume, the oil and gas firm accounted for 21.84 percent of the total volume of 316.12 million units transacted on the Nigeria’s stock market

to emerge the most active stock by volume on Tuesday, April 23.

Paul Uzum, a stockbroker at the Lagos bourse, who spoke with BusinessDay in a telephone interview, said there might be an attempt to

shore up the company’ share price close to its par value of 50 kobo.

Japaul Oil extended the similar trend into the second trading session of the week to record 92.3 million units valued at N20.82 million, further

INDUSTRIAL GOODS

propping up its price by 9.09 percent to 24 kobo at the close of trade on Wednesday.

Despite the huge volume of trade, about 20 million units of Japaul’s shares were yet to be supplied after the sound of the closing bell, according to

Uzum. “That is a sign there is a big buyer for the stock,” the stockbroker said. “You might just see an upward movement on the stock till it gets to a level the buyer is satisfied.”

Japaul was yet to react to the development at the time of writing this report, as efforts by BusinessDay to reach the company proved abortive.

Analysts say the owners of the company, in which some of its directors may not be exempted, could be pricing up the stock by selling part of their holdings, or an investor could have bought a significant volume on Tuesday, thereby attracting speculators during Wednesday’s session.

These trades, which were the heaviest in the last one year, appear unusual for a company that consistently recorded losses in the last four years coupled with a shrinking revenue base from a high of N10.57 billion in 2014 to N936 million in 2018.

“The heavy trades could be a way of bringing in enough capital and restructure the company,” Ologunro said.

Further analysis of Japaul’s financial performance showed that in the last five years, efforts made by the company to snap out of its losing streak were futile.

Between 2014 and 2018,

Japaul’s net income has declined at an annual average of 294 percent, while revenue has also dipped at an annual average of 38 percent during the same period.

This is however despite a consistent rise in the company’s liabilities against its assets and equity resulting to a higher leverage ratio of the firm.

Japaul recorded a 48 percent jump in total liability of N13.35 billion in 2018 compared to 2014 figures of N9 billion. During the same period, the company’s total assets fell by 37 percent to N24 billion from N38.39 billion.

Also, total equity plunged 386 percent during the same period under review to –N35.5 billion from a surplus of N12.4 billion as of 2014.

Having high leverage in a firm’s capital structure could be risky, but it also provides benefits for the company. The use of leverage is beneficial during times when the firm is earning profits, as they become amplified.

On the other hand, a highly levered firm would have trouble if it experiences a decline in profitability as in the case of Japaul, and may be at a higher risk of default than an unlevered or less levered firm in the same situation.

CSR

CCNN records 236% surge in profit Sterling Bank sides with MACMME to curb infant, maternal mortality on impressive sales growth DAVID IBIDAPO

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ement Company of Northern Nigeria Plc (CCNN), a producer and marketer in Nigeria’s cement industry kicked off the year with impressive earnings in the first quarter of 2019 on the back of a 213 percent surge in revenue for the period.

According to the Q1 2019 financial results of the company released in the late hours of Wednesday, CCNN saw its bottom line grow by a whopping 236 percent to N3.6 billion against N1.08 billion recorded in the same period a year earlier.

During the first three months of 2019, sales of cement yielded revenue of N16.88 billion for CCNN as against N5.39 billion re-

corded in Q1 2018, this drastically reduced the effect of a 98 percent drop in other incomes of the company.

A review of the decline in other income revealed that in Q1 2019, the company recorded no claims on insurance. Likewise, sundry income declined 97 percent to N366 thousand while interest income also dipped 98 percent to N1.78 million.

Also, the effect of higher cost during the period under review was cushioned due to the surge in the company’s revenue.

Further analysis revealed that in Q1 2019, total cost rose steeply by 168 percent to amount to N2.34 billion compared to a cost of N875.4 million recorded in Q1 2018.

Growth in total cost was largely contributed by a

faster-paced growth in selling and distribution cost by 310 percent, also accounting for about 43 percent in total cost value.

From the above, CCNN financials further showed that 91 percent of total cost resulting from sales and distribution of cements accounted for distribution cost which amounted to N926 million during the period.

Furthermore, the administrative cost during the period accounted the most by 55 percent during the period while net finance cost accounted for 2 percent.

Year to date analysis shows that CCNN has lost 12.37 percent of its market value, closing unchanged at N17 on Wednesday to maintain a 3 trading day price level.

OLUFIKAYO OWOEYE

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terling Bank plc and the Malaria, Child, Maternal Mortality Eradication (MACMME) project have collaborated to produce a movie titled ‘ANAVE’ in an effort to bring greater awareness to the plight of the less privileged Nigerian child and mother.

The film, written, produced and directed by Nicolette Ndigwe, had Abubakar Suleiman, CEO of Sterling Bank, and Frank Nweke Jnr., former minister of information and communications, as co-executive producers.

Speaking at a press conference in Lagos at the weekend, Lekan Akintemi, head of Technology and Digital Compliance, Sterling Bank, said the lender committed itself to be at the heart of Nigeria’s accelerated development by focusing on five critical sectors of the economy namely Health, Edu-

cation, Agriculture, Renewable Energy and Transport.

“It should not be surprising that we supported the production of Anave – a malaria, infant and maternal mortality advocacy movie - because it promotes health and improved access to healthcare for the most vulnerable in the society. In with our commitment to the health sector, we are continuously developing solutions that would promote preventive health as part of our overall strategy towards making Nigeria a nation that is populated by healthy people.”

Also speaking at the press conference, Ndigwe explained that, “Anave tells the story of an eight-year-old boy whose mother dies from malaria complications at childbirth, leaving him at the mercy of an orphanage. He ends up on the street in a quest for an education where he faces the

struggles of the vulnerable poor and homeless.”

She said the movie campaign would raise a voice for the plight of the underprivileged Nigerian child and mother, 3,000 of whom die daily from preventable diseases and about the need to cooperate in the fight against malaria mortality, the creation of basic health care, as well as housing and education opportunities for the underprivileged Nigerian.

According to her, ANAVE parades some of Nigeria’s most celebrated artistes and actors such as Omawunmi Megbele, Aituaje Iruobe popularly known as Waje, Shawn Faqua, Seun Ajayi, Rita Edwards and many others, adding that it also parades in its crew, internationally acclaimed cinematographer, Adekunle “Nodash” Adejuyigbe, among others.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: David Ogar

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Friday 26 April 2019

BUSINESS DAY

COMPANIES&MARKETS INTERVIEW

Record US Limited Partners grace AVCA’s 16th annual conference AVCA hosted its 16th Annual conference this April which was attended by investors across the globe who collectively manage over US$1.5trn in assets. In this interview with BusinessDay’s LOLADE AKINMURELE, AVCA’s director and head of research, ENITAN OBASANJO-ADELEYE reviewed the conference, shared key milestones achieved and made projections for the PE space in 2019.

Conference in review Over the years, AVCA has worked hard to convene key stakeholders in the industry, bringing fund managers, institutional investors, service providers and others together to discuss the issues, showcase the opportunities and identify key trends.

This year was another successful year of doing so, with themes such as gender parity, gender-lens investing, blended finance and the importance of attracting greater local capital being on the agenda.

A notable achievement this year was the record number of US LPs that attended the conference, with the likes of the Chicago Teachers’ Pension Fund, the New York State Insurance Fund and the Board of Education Retirement System of the City of New York, among others, using the conference to gain a better understanding of the African PE landscape.

The conference was also attended by a number of Nigerian LPs, including pension funds, the Nigerian Sovereign Wealth Fund, and insurance firms. It is a great opportunity for them to connect with LPs and GPs from other countries and regions, to identify and discuss matters of mutual relevance and importance.

AVCA’s motivation for tracking private equity deals across Africa t the time of AVCA’s reboot in 2011, a major challenge that faced the industry was the lack of data regarding African PE, which made it difficult for investors to make informed decisions.

In 2014, the research desk was established to tackle this issue, and began gathering information relating to PE activity on the continent. Our research now covers deals, exits, fund managers, fundraising, institutional investors, industry investors and performance benchmarks and we are continuously looking for ways to better serve the industry through our research and data.

Why AVCA ranked Nigeria as most preferred destination for Private Equity deals in Africa over the next three years The size of Nigeria’s consumer market and its large supply-demand gaps make it a country of huge potential for private equity investment. The nation’s fastgrowing, youthful population is also driving investor interest.

Moreover, Nigeria has a large population of educated professionals that have worked in the PE industry in developed markets and are keen to replicate in their home country the successes that they have been involved in.

These factors, combined with the plethora of opportunities in the country to back good managers to grow their businesses in a sustainable and impactful manner, make Nigeria an attractive

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Enitan Obasanjo-Adeleye

country for PE investment.

Nigeria’s evolving private equity market Since the establishment of the PE industry in Nigeria in the 1990s, Nigeria’s PE market has grown to 16 PE firms headquartered in the country, including African Capital Alliance, Verod, and Sahel Capital, and a similar number of non-domestic PE firms with a local presence.

The country is the second largest PE market in Africa after South Africa, and the main market in West Africa, representing 54% of West Africa’s deal volume and 73% of its deal value for 2013-2018.

Pension Fund Administrators need to reconsider approach to PE investment PE investment is different to the passive form of investing that many of the PFAs are accustomed to, with a very different return profile. It does not necessarily have a steady, predictable stream of cash flows as with fixed income investments, and quite often the value will largely be realised on exit.

Given this, the PFAs need to consider the asset class on the basis of returns as well as other considerations: its diversification potential, the opportunities for developmental impact provided by its active, hands-on approach, and the alignment with their liabilities in terms of time horizon, particularly in areas such as infrastructure.

It requires a learning curve, but the efforts are worthwhile. Part of the work that AVCA does relates to educating LPs in Nigeria and elsewhere on the continent about the asset class, and we are furthering this through the development of the AVCA Academy.

There have been great PE success www.businessday.ng

stories in Africa, such as ACA’s investment in Wakanow, which was recently exited to the US PE buyout firm The Carlyle Group, or Helios’s investment in Interswitch, which led to TA Associates, one of the oldest PE firms in the US, acquiring a stake in 2017, and DPI’s investment in Mansard, which led to the French multinational insurance firm AXA entering the Nigerian market through its acquisition.

There is a need to continue to build the industry and establish further PE successes for the PFAs to become more comfortable with the nature of the asset class.

Data shows PE activity in Africa is succeeding and expanding, contrary to one-off instances It should be noted that the reporting regarding the activity of PE giants in Africa often seems to adhere to a predetermined storyline that does not align with the data. The Carlyle Group completed four notable transactions through its sub-Saharan Africa fund in 2018 – NOSA, Tessara, Abacus and Wakanow.

In the same year that KKR exited its sole investment in Africa to another foreign PE firm, TA Associates made its first foray into Africa with two investments – Interswitch, and the education platform, Inspired. Warburg Pincus, a 50+ year old US PE firm with over US$440bn in AUM, has made a number of investments into African infrastructure over the last few years.

These firms are all peers of KKR and the Blackstone Group and they continue to be active in Africa. In addition, large Africa-focused PE firms such as Actis, DPI, ECP and Helios, to name a few, all made noteworthy deals in 2018.

As long as there is a pipeline of com-

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panies and opportunities with talented management, and good growth prospects, investors will invest in Africa.

Demonstrating the ability to skillfully navigate the PE investment lifecycle by buying, growing and exiting these companies to realize value is key to sustaining confidence in Africa’s PE industry.

Nigerian capital market yet to prove itself as a viable route for PE exits There are several reasons for this. For instance, there is a lack of sufficient liquidity to enable a full exit.

According to the Nigerian Stock Exchange’s fact sheet, the average daily value traded as of Q3 2018 was approximately US$9mn, compared with over US$160bn on the New York Stock Exchange and around US$6.5bn on the London Stock Exchange.

Moreover, the Nigerian equity capital markets have not been particularly buoyant. These facts have prompted PE investors to seek alternative exit routes, or to seek to list in other jurisdictions.

There are initiatives under way to address these, by the stock exchange as well as development institutions such as the IFC. There are internal and external factors that affect the capital markets.

There needs to be a strong, enabling environment exemplified by market autonomy, macroeconomic stability, legal frameworks and effective regulatory regimes. There also needs to be further strengthening of the capital market functions in terms of investor diversity, internationalisation and improved efficiency and robustness of market infrastructure to enable the development of the capital market.

Projections for 2019 In recent years we have noted a rise in the share of investments in Information Technology deals, from 10% in 2016 to 19% for 2017 and 2018. These tend to be smaller investments in earlier stage companies, which resulted in a lower overall value of deals despite the rise in the number of deals.

Large deals tend to be rather more sporadic while the aggregate value of deals that are less than US$250mn tends to be fairly steady at around US$2bn per year. We expect this trend in rising Information Technology transactions to continue, as PE investors are seeking the ability to grow businesses by improving access to products and services such as finance, health and education.

There was a cluster of large infrastructure transactions in 2014 which contributed to a peak in the deal value that year, some of which are now being considered for exit. In addition, we have seen a significant amount of sector-specific fundraising, particularly for infrastructure, which we expect to lead to increased activity in this area going forward. @Businessdayng

Friday 26 April 2019

COMPANIES&MARKETS

BUSINESS DAY

17

Business Event

ENERGY

OPEC harps on importance of Dangote Refinery to World Oil Production Stability DAVID IBIDAPO

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he Organization of Petroleum Exporting Countries (OPEC) is upbeat at the prospect of the Dangote Oil Refinery serving to drive world crude oil refining capacity increase especially in Africa by 2020.

The Organization in the current edition of its World Oil Outlook (WOO), said that the Dangote refinery, which is the first privately owned and operated refinery in Nigeria, will refine as much as 650,000 barrels of crude oil per day at installed capacity.

Presently, total world oil production in 2019 averaged 80,622,000 barrels per day.

Approximately 68 per cent is coming from the top ten countries, and an overlapping 44 per cent comes from the fourteen current OPEC members.

OPEC said in the outlook that the world is expecting some capacity expansion coming from Nigeria in Nigeria by 2020, either through the reha-

bilitation of existing refineries – in part to raise their utilisation rates, or through grassroots projects, like the Dangote Oil Refinery.

OPEC stated: “Last year’s World Oil Outlook hinted that, in Africa, “new projects could improve the situation somewhat toward the end of the period”. This year, increasing confidence that the Dangote project in Nigeria will go ahead is indeed changing the picture.

“Allowing for some uncertainty in the project’s start-up timetable, incremental potential in Africa is expected to continue to lag incremental demand-based requirements through 2020, after which the potential is for a balance or excess requirements.

“A deficit of around 0.2 million barrels per day (mb/d) in 2019 to 2020 is estimated to swing to an excess of around 0.3 mb/d by 2022 to 2023. It must be borne in mind that this regional outlook is unusual in that it hinges largely on a single project”.

OPEC said the completion of the project would reduce the importation of petroleum products in West Africa. “Since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa.

What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports,” it added.

According to OPEC, in Africa, there are some 50 listed refining projects, which, if all built, would add nearly 5mb/d of new refining capacity to the continent.

The organization noted, however, that in recent WOOs, the proportion of projects considered firm has generally been low, for example, 0.4 mb/d for the 2017 to 2022 period in WOO 2017. “This year, the outlook represents a significant reversal from recent history.

For the first time in many years, projected firm additions at 1.1 mb/d exceed regional demand growth for 2018 to 2023 at 0.7 mb/d.

L-R, Juliet Anammah, CEO, Jumia Nigeria ; Kabir Gaya, chairman, senate committee on works and former Kano State governor ; Kevin Zeng ,Nigerian agent manager, Xiaomi, and Steven Wang, head regional marketing, Xiaomi Global, at the official launch of Xiaomi new product Redmi Note 7 In Lagos.

Pic by Pius Okeosisi

COMPANY RELEASE

Unity Bank donates resource support items to rice farmers

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n furtherance of its commitment to promote sustainable agriculture in Nigeria, Unity Bank Plc has donated Resource Support Items to Rice Farmers Association of Nigeria (RIFAN) as part of its Corporate Social Responsibility (CSR).

The items were presented to the Executive members of RIFAN at the Association’s secretariat in Abuja recently.

Receiving the items on behalf of the Association, the National President, RIFAN, Alhaji Aminu Goronyo, expressed gratitude to the management and staff of Unity Bank for the gesture.

The RIFAN president further praised the Bank for supporting the Federal Government’s Agricultural initiative, adding that,

with the growing support the Association has received from corporate organizations like Unity Bank Plc, the Bank has not only demonstrated outstanding commitment to the development of agribusiness, it has equally put the Bank in the forefront of supporting the Federal Government’s initiative in achieving successive reduction in the rice import bill, food sufficiency and employment.

Presenting the Resource Support items, the Zonal Head, Abuja and North Central, who led the Unity Bank’s team, Mr. Nurudeen Bashir Mohammed stated that the donation is in pursuant of the Bank’s strategic business focus in the area of Agriculture, SME and Rural Economy. He said this is part

of our Corporate Social Responsibility in sustaining this sector.

Unity Bank in 2018/2019 farming season partnered with the Central Bank of Nigeria (CBN) to empower farmers. A total of 421,827 small holder farmers (SHF) across 36 states of the nation plus Abuja have benefitted from the intervention fund under the Anchor Borrowers Programme (ABP).

As one of the major drivers of the programme, Unity bank Plc earned a presidential Award at the third anniversary of the Federal Government’s Anchor Borrowers’ Programme (ABP). This award which was presented by President Mohammadu Buhari and RIFAN was in recognition of the Bank’s strong participation in the ABP.

MINISO cooperates with Marvel Studios, releases 2,000 superheroes peripheral products

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he world’s well-known retail brand MINISO officially announced the cooperation with globally renowned top IP Marvel to develop a series of peripheral products, which will be put on sale in over 100 countries.

The MINISO x MARVEL products exhibition area was set up at the new product release meeting. There were as many as 2000 Marvel products on display, including Spiderman, Captain America, Iron Man,Hulk, Captain Marvel, Thor and Black Widow.

This time, the copyright owner of Marvel has granted authorization to MINISO in 123 countries, Nigeria inclusive, covering five continents. The licensed products covered 13

product categories of MINISO, which was unprecedented for Marvel.

Mr. Ye Guofu, the global cofounder and CEO of MINISO, said that Marvel is the world’s top IP with a wide range of influence and appeal. He loved the Marvel movies personally, and watched almost every movie of Marvel. Ye believed that good products should serve the masses instead of serving a small part of people.

This is the reason why MINISO would cooperate with Marvel after developing cooperation with Hello Kitty, Adventure Time, We Bare Bears, Pink Panther, Pantone and Sesame Street.

MINISO will continue to follow the principle of high quality and affordable price, and bring www.businessday.ng

authentic peripheral products with first-class quality and affordable price to marvel fans around the world.

Ada Dou, the executive vicepresident of MINISO Commodity Center, indicated that there were three major factors for Marvel to cooperate with MINISO: the retail terminal covering the whole world; the principle of high quality and affordable price; and the high standard product design and quality control.

Marvel has formed a subtle complementary relationship with the main consumer groups of MINISO. With this cooperation, Marvel can open up the female market, while MINISO can attract more male consumers through its series of products at the same time, Ada said.

L-R: Chukwuebuka Obi-Uchendu, BBNaija host; John Ugbe, chief executive office, MultiChoice Nigeria; Ayeni Adekunle, CEO, Black House Media; Busola Tejumola, executive head of content, MultiChoice Nigeria, ex-BBNaija Housemate, Tobi Bakre, and Wangi Mba-Nzoukwu, executive head of channel, MultiChoice Nigeria, during the 2019 Nigerian Entertainment Conference in Lagos.

L-R: Sola Seweje, business development executive, United Capital Trustees; Tokunbo Ajayi, Managing Director/Chief Executive Officer, United Capital Trustees; Babajide Sanwo-Olu, governor-elect, Lagos State and Peter Ashade, group chief executive officer, United Capital Plc, at a courtesy visit to the governor-elect from United Capital recently.

L-R: Olabimpe Orimoloye, brand manager, Peak; Maureen Ifada, marketing manager, Peak; Tobi Bakre, BBA 2018 finalist; Linda Ejiofor, Tinsel actress, and Afolarin Ojo, senior brand manager, Peak, at the recently-concluded AY Live comedy show, supported by Peak Milk.

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Friday 26 April 2019

BUSINESS DAY

FINTECH News

Products Review

Technology Review

Personality Review

Company Review

Technology Review

Why Fintechs will do a better job than banks in Nigeria’s retail lending Stories by FRANK ELEANYA

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here is no better description of the Nigerian business environment today than George Orwell’s Animal Farm; everyone – small, medium, big businesses and government - must manipulate each other to survive or die trying. In the financial services sector, big banks are currently acting the role of the bullies reminding everyone that “all animals are not born equal”.

Since the turn of the decade when digital technology took over every facet of people’s lives, a lot of innovation has gone into making financial services better, safer, faster and much of the inconvenience consumers usually face have been reduced.

For instance, digital technology has made savings once more attractive unlike before when people had to work the distance to a bank branch, spend countless hours on endless queues to get the cashier to take their money and put it in the bank vault or make profit with it. In the same vein, lending which used to be a hallowed terrain for mostly banks and microfinance institutions has also been demystified by talented tech savvy young Nigeria using a laptop and a table.

Small enterprises that would have died for lack of funds to

build their businesses now have a lifeline – albeit with expensive payback packages – from fintech lenders.

But it must be said that when analysing those responsible for the digital transformation in financial services, it is often taking for granted that some Nigerian banks have always embraced technology in delivering their services and have contributed immensely to the making of the fintech landscape in the country.

For instance, it was a few of the banks in collaboration with Accenture and other technology providers that led to the founding of Interswitch one of the foremost fintech startups in the country.

There is no reason the banks and fintech startups cannot coexist and even benefit from their relationship particularly with regards to retail lending.

Inasmuch as retail lending is seen by many as representing a massive to growing the Nigerian economy, traditional banks have for many years shy away from playing a decisive role in the space creating a lacuna for startups with technology to fill.

Only 1.3 per cent of Nigerians have easy access to bank loans according to a report from Enhancing Financial Innovation in Africa (EFInA).

This leaves about 98 per cent of people without access to

loans.

In the past, banks have seen them as very “risky” while startups chose to embrace them as opportunities.

In that sense, fintech businesses like Paylater, Branch, Renmoney, Mines, Kiakia to name a few have thrived.

But in recent times, banks are starting to retrace their steps following a lull in lending over the past three years as non-performing loans continue to grow in the aftermath of a sharp drop in oil prices that made it difficult for borrowers to service their loans, forcing banks to write off a huge chunk of credit extended to the oil and gas sector, to which most lenders

were heavily exposed.

The biggest lenders like GTBank have released announced plans to increase their focus on retail lending, from personal loans to car financing and mortgage in 2019 as part of efforts to grow their loan books.

However the banks’ pace in reclaiming lost ground in lending has some startup founders very worried and even afraid for their future.

At an interview in March, a founder who will remain anonymous told BusinessDay that banks are likely to resort to aggressive acquisition of startups they see as threat in the space.

It is important to note that while banks may have most of the advantages in the space to enable them muscle out competition from startups, it may be in the best interest of small businesses for the former to allow the latter to lead the charge.

“Banks should stick to banking and not try to own digitalisation and collaborate more with digital startups,” says James Mworia, Group CEO, Centum Investments, Kenya at the Annual Investment Meeting (AIM), which held in Dubai in April.

In the end, retail lending is still about the small businesses that need funding to grow and fintech startups by their structure and experience servicing consumer lenders have proven they may

be a better fit.

To be candid, the challenges that forced banks to stay away from retail lending are yet to be addressed hence the need for banks to lead from the back this time.

Millions of Nigerians still lack credit history and identification database which make it difficult to give loan for banks where records keeping is very important. There is the difficulty in recovering bad loans which has made banks wary of lending to many Nigerians.

Fintech startups on the other hand are not weighed down by identities or bad loans. Sometimes while leveraging individuals’ accounts on social media, these startups have addressed the problem of credit scoring and through an app without any physical confirmation, given loans via smartphones in minutes.

A retail lending space driven by startups does not relegate the banks or make them irrelevant, the critical part of the chain – the money – still resides with them. Moreover, by providing the financial support to the startups, they also get a skin in the game and reduce the cost of deploying new human resources to chase lenders. However, with fintech startups in front, banks can have all the time they need to create new solutions, in so doing diversify shareholders’ capital.

WorldRemit taps Paga in push for Nigeria’s $26b remittance market

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igital money transfer company, WorldRemit has teamed up with Nigeria’s first mobile money firm, Paga, to make it easier for the Nigerian diaspora living in over 50 countries to send money quickly and securely back home.

The partnership is expected to considerably grow WorldRemit’s footprint in Nigeria’s remittance market.

It also allows the company to expand its feature prod-

ucts from bank transfer and airtime top-up to include mobile money.

Paga currently has over 11 million customers using its mobile services. This aligns with WorldRemit’s mobile first, digital model that saves customers time and money as they do not have to visit a physical branch of any financial institution.

“Paga and WorldRemit share a commitment to making life easier for Nigerians sending and receiving monwww.businessday.ng

ey,” says Tamer El-Emary, chief commercial officer at World Remit in a statement sent to BusinessDay. “Our partnership represents a new milestone for WorldRemit as we expand our service offering in Nigeria to include mobile money, a technology that has been transformational for communities across Africa.”

An estimated 15 million Nigerians live in countries including the United States, the United Kingdom, Australia and Canada. These Ni-

gerians contributes a major share of the total $26 billion in remittances which play a huge role in the economy of the country.

The statement from WorldRemit noted that international transfers to Paga mobile money wallets via WorldRemit will be instant.

Recipients will also be able to transfer funds from the Paga wallets to other users of Paga wallets or bank accounts, top-up mobile airtime, and pay for bills and groceries at shops businesses that accept

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Paga payments. Customers will also be able to withdraw money as cash at Paga agent locations, perform cardless withdrawals at select ATMs or store their funds in their Paga accounts.

“Our partnership with WorldRemit is a further example of our commitment to making it easy to send and receive money digitally,” Tayo Oviosu, founder and CEO of Paga said. “Many Nigerians in the diaspora support members of their family living in Nigeria, and often @Businessdayng

times these family members may be depending on that stipend to survive. “ Us i n g Wo r l d R e m i t ’s website, Nigerians in the diaspora can send money home to family and friends using the mobile phone number of the recipient.

The money will be instantly credited to a Paga wallet for the recipient and available for immediate use on Paga.

This is just one of the many ways we are making life possible for Nigerians at home and abroad.”

Friday 26 April 2019

BUSINESS DAY

19

LEADINGWOMAN

From the North to Lagos with love

I have lived a major part of my life in Abuja and coming to Lagos for me meant discovering new delicacies. One of my favourite I love eating is Masa and thanks to Clay, missing the North isn’t as bad as I thought it would be. Clay is an authentic African Foodshop that boasts of several northern treats. There is also the Henna place on same building where women enjoy luxurious traditional body treatments and both are owned by HADIZA NYAKO TUKUR and FATIMA WAZIRI WAFAILU who were recently interviewed by KEMI AJUMOBI. Excerpts.

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HADIZA NYAKO TUKUR adiza is a successful entrepreneur and finance expert specializing in business finance and management. In 2014, she along with her business partner, Fatima Waziri Wafailu co-founded the first northern Nigerian luxury traditional day spa in Lagos called The Henna Place.

Seeing an opportunity in the food and drinks market, the duo expanded and established Clay Authentic African Food shop, a company targeted at creating and promoting demand for local African super foods, drinks and snacks. Prior to founding henna place, Hadiza worked at the public sector division of Cardinal Stone, a financial institution, specialized in investment management. She has also worked with Nigeria Sao Tome and Principe Joint Development Authority as an internal auditor.

Hadiza is a happily married mother of two beautiful girls. She is a graduate of business finance from Durham University and holds a masters in finance and financial law from School of Oriental and African Studies (SOAS).

FATIMA WAZIRI WAFAILU Fatima is a philanthropist who is very passionate about giving back to the society. Cofounder of The Hennaplace, a traditional day spa in Lagos, Fatima founded Clay authentic African Food shop alongside her business partner, Hadiza Nyako Tukur. She owns an orphanage, a food drive initiative, a women support initiative, as well as an Islamic studies centre for children.

Fatima is a happily married mother of six lovely kids. She studied Business Administration from Herriot Watt University and is currently studying for her Masters degree in sustainable development from the American University in Cairo, Egypt.

THE HENNA PLACE The Henna Place is a traditional spa which offers the best body treatments using natural ingredients and best northern body and beauty secrets.

CLAY FOODSHOP Clay Foodshop promotes and creates demand for local African foods, drinks and snacks especially from the northern Nigeria.

HADIZA & FATIMA We cannot talk about Clay without talking about our other business, The Henna Place.

We started the henna place as a means of showcasing our rich culture through beauty, using traditional treatments. The henna place is the first traditional spa in Nigeria and we were humbled by the way it was accepted in Lagos. So what happened was, every time our customers had a long day at the spa, they would ask “don’t you have anything to

Stella Oduah

Akon

eat?” our receptionist fast became a master Indomie (instant noodle) chef. Fast forward a couple of months, the space we had became too small to run our business and we decided to move to a much bigger space. That was when we thought, why not introduce some type of eatery, and the idea of Clay was born.

SERVICES RENDERED AT THE HENNA PLACE They include body treatments like Halawa sugar wax, body scrubs, Dukhan smoke treatment, facials, henna, Moroccan hammam and more. We also have our home made products available at the spa.

EDIBLES AT CLAY They include Masa, Tuwo Shinkafa and Miyan Taushe, Dan wake (bean dumplings), Chicken and beef Suya, Chicken kebab, fura (Yoghurt-Millet drink) , Tamarind juice, Zobo, Baobab juice, Tifernut milk, Lemon Ginger Snap, Dambu (Shredded beef ), Iloka (Butter milk candy), Manshanu (Ghee), Gyada (Peanut paste), Dan Wake (flour), various spices and so much more. www.businessday.ng

RESPONSE SO FAR It is amazing the way people are willing to try new things; Lagos has been amazing to our business.

PROJECTIONS We are constantly working on our products to improve customer experience and we look forward to getting in touch with a larger audience, basically to get the word out there on not just the availability of most of these super foods in Nigeria but also enlighten them on how rich our Nigerian heritage is. We are still in the process of trying to get Clay to strategic parts of Lagos, and hopefully other states of the country.

WOMEN EMPOWERMENT As women and co-owners of businesses, seeing/helping women grow in business is really important to us. For every product Clay turns out, there is a woman somewhere who is responsible for it. We work alongside a network of women whom we have taken into our fold, briefed them on the vision and

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mission of clay and given them proper trainings on hygiene. So we not only aim to build a business/brand for ourselves, we are also actively and passionately helping women to create sustainable income for themselves.

CHALLENGES Well, running a business (especially a food business) in our country is all shades of challenging, ranging from power outage issues to unfavourable policies. But hey, we are here and here to stay so we are constantly trying to surmount those challenges and build a dependable brand that caters to the vast majority of Nigerians.

MOTIVATION We definitely have a lot of motivation for Clay. At the fore front of it is bringing Clay to the world, showcasing delicious African super foods, snacks and drinks. Like we always say, pizza wasn’t invented in a Nigerian village, if it can be eaten worldwide, so can kuli-kuli, masa, zobo and the rest. Making sure that as many women as possible have businesses as a result of our business drives us to be better and do better.

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Friday 26 April 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE

‘Asthma should be top priority of public health intervention in Nigeria’ CHIWUIKE UBA is the founder and chairman of the Board, AMAKA CHIWUIKE-Uba Foundation (ACUF). In this interview with ANTHONIA OBOKOH of BusinessDay, Uba spoke about Asthma health condition and why it should be a top priory for intervention programs.

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ow can you describe a s t h m a prevalence in Nigeria?

Asthma prevalence and incidence have been increasing worldwide in recent decades.

This increase is not only attributable to genetic background but largely because of the effect of a wide number of environmental and lifestyle risk factors. Unfortunately, in many countries, asthma and other non-communicable diseases are yet to be considered a healthcare priority.

In Nigeria, more than 15million people are currently suffering from asthma with a projected increase to 100million by 2025. Globally, more than 300million people are currently with asthma and this is expected to increase by over 100million by 2025. It is also estimated that 14 per cent and 8.6 per cent of the world’s children and young adults’ experience asthma symptoms, while 4.5per cent of young adults have been diagnosed with asthma and/or are taking treatment for asthma. The burden of asthma is greatest for children aged 10-14 and the elderly aged 75-79. Currently, Asthma is the 14th most important disorder in the world in terms of the extent and duration of disability. Given the well-known under-diagnosis of asthma, the above quoted numbers may be an underestimation.

As a globalized and significant public health problem, which oftentimes, requires use of emergency care, hospital

admission and can cause early permanent disability and premature death, asthma requires urgent policy and government attention to enhance the management of asthma in Nigeria.

What is the cost and social impact of asthma?

Asthma management comes with very huge costs. These costs are direct, indirect and intangible costs. In 2014, it was found that the annual out-ofpocket cost of asthma incurred by patients in Nigeria was US$368.4 per patient. Medication cost accounted for the majority (87%) of this cost. This cost does not include other direct, indirect and intangible costs and is not related to costs incurred by patients with exacerbation and differing severity of the disease. This shows that in Nigeria, the annual average out-of-pocket cost incurred by asthma patients is US$ 5.5

billion (N2trillion) as at 2014.

Asthma costs USA economy more than US$ 80 billion annually in medical expenses, days missed from work and school, and deaths. In Nigeria, asthma care imposes economic burden on affected patients; though, patients’ costs for asthma is not well documented in Nigeria and other African countries.

It is therefore important for Nigerian government, in addition to making asthma a health priority, should invest in asthma research, develop national strategies and guidelines and action plan to improve asthma management and reduce costs.

What is the way forward to managing asthma in Nigeria?

To achieve the objective of Better Breathing, Better Living for Nigerians requires collective efforts and commitment of

everybody - the government, the citizens, and development partners.

Air pollution is responsible for more than 12 million deaths per year, notwithstanding the availability of different respiratory diseases drugs, significant numbers of patients are still suffering from respiratory diseases while a significant number still die from the disease.

For instance, an estimated 75% hospital admissions for asthma and as many as, 90per cent of the asthma deaths are avoidable. Poor diagnosis is one of the reasons.

Therefore, continuous medical education is necessary for medical doctors. Interestingly, ACUF, in collaboration with other organisations, is already facilitating such specialised training for medical doctors. Asthma is already an epidemic! The global burden of asthma is already substantial in terms of mortality, morbidity and economic costs. According to the recent Global Burden of Disease (GBD) study, Asthma is estimated as the 14th most important disorder in terms of global years lived with disability. Asthma, therefore, should be among the top priorities of Ministries of Health, development partners and CSOs when assessing health priorities, allocating resources, and evaluating the potential costs and benefits of public health interventions.

We need continuous collaboration of the Nigeria Medical Association and other allied organisations and the Ministry of Health, as well as financial support from Nigerians,

grant-making institutions and development partners, and finally, the collaboration of the National Assembly in putting in place, laws that will promote better breathing and better living in Nigeria. Nigerians also need to start visiting hospitals for proper diagnosis and management of their medical conditions.

Can you tell us what Annual National Asthma Conference all about?

First, we are faced with challenges ranging from being rated as one the most polluted countries in the word to a country grappling with a lot of problems associated with other governance issues. Most diseases are associated with environmental and governance issues.

The 2019 Amaka Chiwuike-Uba Annual National Asthma Conference with the theme Better Breathing, Better Living: The Role of the Environment and Governance is unique and is coming at the right time.

The Annual Conference is a platform to discuss national issues, especially health and related matters in an evidenced-based approach. The 2019 Conference is, therefore, expected to X-ray the linkages between the environment and governance and its impacts on health management as well as make policy recommendations on ways to ‘deal’ with the identified challenges.

Why is ACUF talking about ‘Better Breathing, Better Living: The Role of the Environment and Governance’ The conference theme was chosen in consideration and

recognition of the impact of environment and governance on the quality of life of people.

Pollution is a major environmental health problem affecting everyone; contributing heavily to the burden of diseases from stroke, heart disease, lung cancer, and both chronic and acute respiratory diseases, including asthma.

Whereas people may have a greater ability to modify indoor environmental exposures, in most cases, they do not have direct control over outdoor pollutant concentrations. A clear example is the continuous and continuing gas flaring in Nigeria as well Nigeria’s rating as one of the most polluted countries in the world. The control of both indoor and outdoor environment exposures, therefore, becomes the key ingredient and responsibility of government and outcome of governance (either good or bad).

According to the World Health Organisation (WHO), air pollution is responsible for more than 12million deaths per year. The achievement of the Sustainable Development Goals (SDGs) targets —SDG 3 (Good health and well-being), SDG 6 (Clean water and Sanitation), SDG 7 (Affordable clean energy), SDG 13 (Climate action), SDG 14 (Life below water) and SDG 16 (Peace, Security and Strong Institutions) is dependent on the environment and governance outcomes. In a nutshell, governance is core to a sustainable environment and development.

Nigeria needs sustainable policies, finance structure to tackle maternal mortality - Experts JOSEPHINE OKOJIE

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xperts in the health sector have said that the country can tackle the high rate of maternal mortality in Nigeria if it can build a sustainable healthcare financing structure and policies.

Speaking at a programme to mark the International Day of Maternal Health with the theme ‘Accelerating the Impact of Maternal Health Interventions’ organised by Hacey Health Initiative in conjunction with Access Bank, the experts say both the federal and state government have a huge role to play in tackling the issues of maternal health.

They identified poor health financing structure, lack of sustainable policies

both at state and federal levels and socio cultural barriers as major factors influencing the high rate of maternal mortality in the country.

“Nigeria has an average of 576 per 100,000 child birth and this shows the country has high rate of maternal death,” Omolasho Omoseni, head Lagos Liaison office, United Nations Population Fund (UNFPA) said in his keynote address. www.businessday.ng

“We need proper health financing structure and sustainable policies to aid interventions on maternal mortality,” Omoseni said.

He stated that most families in the country are currently living below the United Nation’s poverty line and lack the needed finance for healthcare, making them seek traditional low cost alternatives.

He called on the government at all levels to provide

a sustainable financing structure for healthcare for all Nigerians while removing every form of disconnect between the Federal and State governments to make implementations and guidelines to improve maternal health achievable.

He commended Access Bank for partnering with Hacey Health Initiative, while calling on other corporate organisations to also

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invest in tackling maternal mortality in the country, noting that the rising trend would have been nipped in the bud with collaborate efforts.

Also speaking, Edun Omasonjuwa, Lagos state team leader, John Hopkins Centre for Communication Program and the Nigerian Urban Reproductive Health Initiative (JHUCIP/ NURHI) said that there are lots of social cultural barriers to women accessing healthcare couple with systemic and institutional barriers.

“Women do not have the right to take decision on issues that affect them and if they do, they lack the information to make the right decision,” Omasonjuwa said.

“We need greater com@Businessdayng

mitment from everyone to address the issues of maternal health and morbidity,” he said.

He urged corporate organisations and government at all levels to leverage technology to share verifiable information’s on maternal health.

Rhoda Robinson, director for gender development programmes, Hacey Health Initiative, said that Nigeria has the second highest numbers of maternal mortality.

Robinson called for sustainability in policies that are already building systems to address issues of maternal health in the country.

“Maternal health is to ensure that women have access to good healthcare before and after birth,” she said.

Friday 26 April 2019

BUSINESS DAY

21

HEALTH BUSINESS&LIFE Do not expose infants under 1 year Edo records highest to electronic screens, WHO warns drug seized in 2018 ISAAC ANYAOGU

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hildren younger than one year old should not be exposed to electronic screen time at all the World Health Organisation (WHO) says in new guidelines released Wednesday.

The United Nations agency, issuing its first such guidelines, also recommended that children ages 2 to 4 have no more than one hour of “sedentary screen time” — including playing computer games or watching TV — per day. This is to allow children be physically active, get enough sleep habits that could reduce risk to obesity and other diseases later in life.

While this recommendation may sound strange in a world where children seems to be born with knowledge of mobile phone applications preinstalled, Tedros Adhanom Ghebreyesus, WHO DirectorGeneral said achieving health for all means doing what is best for health right from the beginning of people’s lives.

“Early childhood is a period of rapid development and

a time when family lifestyle patterns can be adapted to boost health gains,” Ghebreyesus said in a statement.

These guidelines come at a time when concerns about brain developments of children due to long exposure to electronic screens are on the rise. According to a report by a US-based health journal, researchers from the National Institutes of Health in the country gathered preliminary data from the Adolescent Brain Cognitive Development (ABCD) study by following more than 11,000 9and 10-year-olds at 21 sites throughout the United States.

MRI scans found significant differences in the brains of some children who reported using smartphones,

tablets, and video games more than seven hours a day and children who reported more than two hours a day of screen time got lower scores on thinking and language tests, the study found.

A strong concern for many is that prolonged exposure to videos keep young children from connecting with their parents and others and leads to poor social skills The new guidelines on physical activity, sedentary behaviour and sleep for children under 5 years of age were developed by a WHO panel of experts. They assessed the effects on young children of inadequate sleep, and time spent sitting watching screens or restrained in chairs and prams. They also reviewed

evidence around the benefits of increased activity levels.

Parents are also advised not to restrain children in children in prams/strollers, high chairs or strapped on a caregiver’s back for more than one hour at a time “Improving physical activity, reducing sedentary time and ensuring quality sleep in young children will improve their physical, mental health and wellbeing, and help prevent childhood obesity and associated diseases later in life,” says Fiona Bull, programme manager for surveillance and populationbased prevention of noncommunicable diseases, at WHO. The WHO says that failure to meet current physical activity recommendations is responsible for more than 5 million deaths globally each year across all age groups.

Currently, over 23% of adults and 80% of adolescents are not sufficiently physically active.

“If healthy physical activity, sedentary behaviour and sleep habits are established early in life, this helps shape habits through childhood, adolescence and into adulthood,” WHO said in a release.

More than 3m long-lasting mosquito nets distributed in Akwa Ibom ANIEFIOK UDONQUAK, Uyo

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he Akwa Ibom State Malaria Elimination Programme says it distributed more than three million Long Lasting Mosquito nets targeted at 95 percent households in Akwa Ibom State last year as part of concerted efforts to reduce the burden of the disease.

Africa is believed to have 90 percent of the global cases of malaria with Nigeria representing 25 percent while Akwa Ibom State has a prevalent rate of between 15 percent and 40 percent, according to experts.

John Orok, manager, malaria elimination programme in the state ministry of health who made this known as part of activities marking this year’s World Malaria Day celebration said though there has been a significant reduction in the prevalence rate of malaria, he lamented the low usage of mosquito nets in the state.

Orok who explained that the nets were distributed with the support of many partners including the US funded Breathrough Action for Social and Behavior Change added that apart from the distribution of the long lasting nets, the state ministry of health had also undertaken other intervention measures to

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reduce the scourge of the disease.

According to him, the other intervention measures included advocacy campaigns on the need to use the nets, eliminating mosquito habitat, provision of malaria commodities which he said are provided free in health facilities in the state and the training of health personnel including laboratory scientists as well as Rapid Diagnostic Therapy (RDT) and community dialogue.

‘We need to ensure that zero malaria starts with us, eliminating mosquito habitat and getting treated for malaria with commodities which are provided free in health facilities would go along away in ensuring zero malaria,’’ he said.

Orok who lauded the state government for “constantly upgrading health facilities and building new ones as well as employing health workers and ensuring that they are paid promptly’’ noted however that there was a still a huge funding gap in the programme.

He commended some local government councils in the state for the support given to the programme particularly during the net distribution exercise and urged key players in the private sector to partner with the programme

to ensure the availability of more commodities for the treatment and prevention of malaria.

In his remarks, Bassey Nsa, the coordinator of the Breakthrough Action For Social Change and Behaviour expressed the hope that there would be social and behavioural change among stakeholders in the state, increased demand for malaria prevention and treatment services and the strengthening of community structure

for improved referral in state by the time the current cycle of the programme funding ends in 2022 While he solicited the support of the media in creating awareness on the need to ensure zero malaria in the state, he promised to ensure the training of media personnel to fully equip them as subject matter specialist.

The theme for this year’s World Malaria Day celebration is “zero malaria starts with me, join me.’’

BUNMI BAILEY

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do state located at the South-South region has consecutively had the highest drug seizures of 42,402kg, data from the recently released Drug Seizure and Arrest report by National Bureau of Statistics states.

Borno State crippled with insurgency activities over a decade had the least seizure with 147.54kg, the report said.

According to the report, the total number of drugs seized increased marginally by 2.1 percent to 316,365kg in 2018 from 309,713kg in 2017, while cannabis, also known as marijuana, a psychoactive drug from the Cannabis plant used for medical or recreational purposes increased significantly by 42 percent to 271,812 kg in 2018.

Tramadol is followed closely with 22,562kg seized representing 7.1 percent of the total drug seized.

In December 2018, the United Nations Office on Drugs and Crime (UNODC) says Nigeria, and West and Central Africa face “disruptive and destabilising” new trends regarding drug trafficking, drug use and other crimes.

The UNODC’s 2018 World Drug Report also showed that West and Central Africa, along with North African countries, accounted for 87 per cent of pharmaceutical opioids seized globally.

Yury Fedotov , executive director, UNODC, said “This is largely due to rising use of tramadol, an opioid painkiller that is widely trafficked for non-medical use in the region.”

“Africa, along with Asia, also saw the largest rises in cocaine seizures, suggesting that cocaine trafficking and

consumption have spread to these markets,” Fedotov further said.

Jonah Achema, the principal staff officer on public affairs of the National Drug Law Enforcement Agency (NDLEA) said drug abuse grows difficult to manage as the population increase sets the tone for a corresponding rise in other components of social behaviour such as in deviance and criminal activities.

“We are aware that all manner of concoction is going on and new forms of drugs keep unfolding. There are some drugs that have not been classified by the United Nations. They include Tramadol, Codeine, Zakami harvested in the bush, nail remover and Goscolo. In fact, people go to the toilet to sniff faeces,” he said.

In order to control and prevent drug addition, Olajumoke Koyejo, a consultant addiction psychiatrist at the Drug Addiction Unit of the Federal Neuro-Psychiatric Hospital, Yaba suggested that the micro environment which is the immediate environment of a person has to change and also the macro economy has to be corrected.

“The school, family, faithbased organisation and peers have to have things that will manipulate those things to have an effective outcome.

Policies on drug distribution in Nigeria also must be uptight,” “The borders are so porous that we have heard of 30 containers in the port with only eight got to NAFDAC. If containers can fly from the port and those containers have Tramadol, of course they will get to the market,” she said.

Seplat’s eye can see healthcare programmes saves 65,000. Nigerians from blindness IDRIS UMAR MOMOH, Benin

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he management of Seplat Petroleum Development Company Plc.,said a total of 65,000 persons have benefitted from its “Eye Can See” programme from 2012 to 2018.

Chioma Nwachuku, General Manager, External Affairs and Communications, Seplat, petroleum Development Company Plc gave the hint at the end of 8th edition of its annual Eye Can See Corporate Social Responsibility (CSR ) programme at the palace of Oba of Benin.

Nwachuku also disclosed that a total of 26,855 reading glasses were given out free to patients while 2,729 eye surgeries were performed.

She also added that ben-

eficiaries of the programme received free eye screening and treatment with many having their eye sights restored as a result of the surgeries.

The general manager, external affairs and communications explained that in the 2019 programme which commenced March 19 and rounded off April 12, at the Oba of Benin’s palace over 9,500 persons were screened for eye ailments in 15 centres in Edo and Delta states with 350 surgeries performed and 4000 eye glasses given out.

According to her, the programme, which commenced from March 19, 2019 was rounded off at the Oba of Benin’s palace and witnessed a large turn out of people from

within and outside the city who showed up to have their eyes checked, obtain prescription glasses or get operated upon to remove visual impairing cataracts.

“Within one month of the programme, it was deployed in 15 centers across Delta and Edo states. Over 9,500 Nigerians were screened for eye ailments, 350 surgeries performed, and 4000 eye glasses dispensed”, she said.

She said the Eye Can See programme is in addition to other yearly social programmes carried out by the Company in its areas of operation, and assured that the company will continue to support and embark on such sustainable initiatives for the benefits

of the host communities.

“This programme, which offers free premium optical care is open to anyone that comes to any designated venue whenever it is being deployed. The company is by this programme restoring hope to those with visual impairment. Having their eye problems cured, gives them the capability to generate income for themselves and their families.

“Eye Can See is an annual premium optical care SEPLAT provides to her communities.

This annual programme which started in 2012 has become invaluable to members of our communities which have limited or no access to quality eye care but have deluge of people burdened by eye problems.

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

22

Friday 26 April 2019

BUSINESS DAY

Harvard Business Review

MANAGEMENTDIGEST

Why Agile goes Awry, and how to fix it MENT SHOULD BE A NOHANDOFF, COLLABORATIVE PROCESS. Rather than a process where one person writes requirements (even small ones) while another executes them, all without a guiding strategic North Star, a team striving for true agility should have a no-handoff process. In a no-handoff process, the product manager and the engineers (and any other stakeholders) are collaborative partners from beginning to end in designing a feature.

LINDSAY MCGREGOR AND NEEL DOSHI

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n the spirit of becoming more adaptive, organizations have rushed to implement Agile software development. But many have done so in a way that actually makes them less agile. These companies have become agile in name only, as the process they’ve put in place often ends up hurting engineering motivation and productivity.

AGILE SOFTWARE DEVELOPMENT Frameworks for adaptive software development, like Agile, have been around for a long time, and have manifested in many forms. But at the heart of most of these models are two things: formation of a hypotheses (e.g., what a feature is supposed to accomplish) and collaboration across domains of expertise on experiments, all in the spirit of driving learning.

When Agile software development was born in 2001, it articulated a set of four critical principles to elevate the craft of software development and improve engineering and product manager motivation: — INDIVIDUALS AND INTERACTIONS OVER PROCESSES AND TOOLS — WORKING SOFTWARE OVER COMPREHENSIVE DOCUMENTATION — CUSTOMER COLLABORATION OVER CONTRACT NEGOTIATION — RESPONDING TO CHANGE OVER FOLLOWING A PLAN Over the last three years, in our research on human motivation, we have analyzed the practices of engineers across over 500 different organizations using a combination of survey-based and experimental approaches.

We’ve found that what happens

in practice wildly departs from these stated principles.

For example, in common practice, processes and tools have become the driver of work, not individuals and interactions.

In one large Fortune 100 company, the head of digital products said to us, “we’re not allowed to question the Agile process.” In another Fortune 500 organization, product managers and engineers communicate exclusively through their tools, which are used primarily for the former to issue commands to the latter.

Similarly, documentation often trumps working software.

In one large tech company, the product team focused significant upfront time writing small requirements (called “user stories”). These requirements were put into a ticket queue as tasks for the next available engineer to start working on. The bar for documentation to keep the queue moving became high.

Ultimately, this process became one of many small “waterfalls,” where work is passed from a product department to designers to engineering. This process is exactly what Agile was meant to eliminate.

When it comes to responding to change, the words often gets misinterpreted to mean “don’t have a plan.” For example, in one fast growing tech company, the Agile teams did not try to understand the broader strategy of the organization. As a result, their

attempts to iterate often focused on low-value or strategically unimportant features. Without a plan, teams won’t know how to prioritize actions, and how to invest in those actions responsibly.

It would be one thing if these misapplications actually improved engineering motivation and performance, but we have found that in practice, the opposite happens. Agile, when practiced as described above, reduces the total motivation of engineers. Because they’re not allowed to experiment, manage their own work, and connect with customers, they feel little sense of play, potential, and purpose; instead they feel emotional and economic pressure to succeed, or inertia. They stop adapting, learning, and putting their best efforts into their work.

Agile processes go awry because as companies strive for high performance, they either become too tactical (focusing too much on process and micromanagement) or too adaptive (avoiding long-term goals, timelines, or cross-functional collaboration).

The key is balancing both tactical and adaptive performance.

Whether you’re an engineer or product manager, here are a few changes to consider to find this balance, so you can improve your engineering (or any) team’s motivation and performance.

1. SOFTWARE DEVELOP-

2. THE TEAM’S UNIT OF DELIVERY SHOULD BE MINIMALLY VIABLE EXPERIMENTS. Teams often find they waste time by adapting too much. To avoid this, not only should ideas be formed for a strategic challenge, but they should also be executed with fast experiments aimed at learning just enough to know what works for customers. In other words, they should be maximizing their “speed to truth.”

3. THE TEAM’S APPROACH SHOULD BE CUSTOMER-CENTRIC. At the simplest, these principles should hold: “Challenges” are always framed around customer impact. Problem solving meetings always start with a customer update, and representatives from the front line are included frequently in these discussions. Every experiment is built around a customer-centric hypothesis. That way, the team can hold themselves accountable to the outcome predicted by the experiment.

4. USE TIMEBOXES TO FOCUS EXPERIMENTATION AND AVOID WASTE. The timebox isn’t a deadline.

It is a constraint that should guide the level of depth and quality for an experiment before a real test. In this way, timeboxes can increase total motivation.

5. THE TEAM SHOULD BE

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

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ORGANIZED TO EMPHASIZE COLLABORATION. To make sure you end up with a no-handoff process, the various stakeholders involved should function as a single cross-functional team, also known as a pod.

The goal of the pod is to drive collaboration. Each pod should contain the full set of experts needed to deliver a great product. This may include senior executives.

In one organization, for example, product pods include a product manager, front-end engineer, back-end engineer, designer, a quality engineer, and part-time representation from customer service, as well as a senior executive from a control function.

6. THE TEAM SHOULD CONSTANTLY QUESTION THEIR PROCESS. This requires teams that have simple, lightweight processes and structures that they constantly question and tweak.

Thus, rather than building “Agile” as a religion that cannot be questioned, engineering teams should be in the habit of constantly diagnosing and iterating their own team’s operating model. In the best examples we’ve seen, on a monthly basis, teams diagnose their operating model and decide if it needs changing to produce a better product.

The ability to attract, inspire and retain digital product talent is becoming mission critical for organizations. Most organizations have fallen prey to a simple message — implement Agile as a series of ceremonies and everything gets better. Unfortunately, this is often not the case when the human side of the equation is lost. By getting back to the basics of motivation and adaptive performance, you can build an organization that is truly agile.

Lindsay McGregor and Neel Doshi are co-authors of “Primed to Perform: How to Build the Highest Performing Cultures Through the Science of Total Motivation.”

Friday 19 April 2019

BUSINESS DAY

23

LEGALPERSPECTIVES With Odunayo Oyasiji

Maxims of equity

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quity aids the vigilant and not the indolent- This simply means that equity will only aid people who are awake to their rights and take steps towards the protection of same. Another form of saying this which is also popular is that “delay defeats equity”. If your right is breached and there is a delay in bringing an action to enforce it then it is likely that equity will not aid the party that delayed in enforcing his right or seeking a redress.

Laches and acquiescence are defences which can be raised in relation to equity cases. Under acquiescence, a party breaches another person’s right and the person whose right was breached fails to take steps to address the issue. He may not be allowed in equity to bring an action with regards to the breach. Under the defence of laches, the court will determine if there has been unreasonable delay in bringing the action. If the court’s findings is that the delay was unreason-

able then the party that delayed will not be aided by equity.

The difference between the two is that while acquiescence suggests a situation whereby there is failure to take steps or the person has conducted himself in a way as to suggest that he is not interested in enforcing his right, laches focuses more on whether the time lapse that is between the period the right was breached and the time an action is brought is unreasonable.

The latin maxim for this

is “Vigilantibus non dormentibus jura subvenientequity aids the vigilant and not the indolent. If you sleep on your right your right will slip away from you. It must be noted that statute of limitation bars some actions from being instituted after a certain period of time- mostly civil matters. In Nigeria, some statutes establishing some organisations also do state expressly the period within which an action can be brought against an organisation or its officers.

LOCUS CLASSICUS

Sule vs Norwich Fire Insurance (unreported) high court of western state suit no W/74/70 1971.

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n this case, the plaintiff was a driver for the Action Group. The Action group purchased an insurance contract with the defendant which insured the plaintiff – as the driver – and the Action group – as the owner of the car. The plaintiff was involved in an accident against a third party. This person sued the plaintiff and was awarded damages against the plaintiff. The plaintiff then sought to rely on the insurance contract entered into by the Action Group with the defendant insurance company.

The defendant insurance company sought to avoid liability on the ground that it wasn’t the plaintiff who entered into the agreement with them. The court held that the plaintiff could claim indemnity from the defendant insurance company since he was a beneficiary of the contract of insurance.

TULK VS. MOXHAY (1848) 2 CH. 774 In this case, the plaintiff owned some plots of land and sold the garden in the centre to a certain Elms.

He made him agree not to build on it but preserve it in its existing condition.

After a series of conveyances, the land was sold to the defendant. The defendant, although knowing about the restrictive covenant, proposed to build on it. Thus, the plain-

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tiff sought an injunction against the building of the purposed structure. The action succeeded on the ground that the defendant had prior knowledge of the restrictive covenant.

In order for a restrictive covenant to be enforced, it has to be to the knowledge of the defendant.

Also, the original vendor needs to have other land in the vicinity which would benefit from the restrictive covenant.

When silence means yes in business

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n business, parties communicate on important matters through letters.

However, while some letters require the party to whom it is addressed to reply others may not. An example of a letter that may not require a response is a general letter showing services rendered by another organisation. On the other hand, it is extremely important to reply to sensitive business letters that requires that denial, acceptance or an expression of the company’s position on business issues. Failure to reply to such letter

automatically amounts to an admission of the statements in the letter.

The above position has been established in various cases in Nigeria. Therefore, it is an unpardonable offence under the law as the law will deem the statements in the letter admitted. In the case of Trade Bank Plc v Chami (2003) 13 NWLR pt.836, pg.216.Salami JCA stated that “The defendant in this case did not answer the letter and the failure or neglect to answer such a letter in the circumstance is tantamount to an admission

of the assertion in it. The letter was not a social but business letter. While social correspondence may be ignored business letters deserve to be answered. The failure or neglect of the defendant to reply or answer the letter is amounts to an admission because what is asserted in the letter and is not denied is deemed admitted.” In the matter, the bank wrote a demand letter to the defendant and he refused to answer. The Court of Appeal held that the failure to answer the letter amounts to an admission of its content.

When promise becomes a debt under the law

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n our day to day lives people make promises and fail to fulfil it. What happens in that situation?

We simply move on without making claims as it is just a promise and since nothing is given in exchange for it then no claim can be made.

However, the condition is different with regards to contractual issues. Ordinarily, a contract without consideration (consideration can be in form of a price or something in return) may not be enforceable. The doctrine of promissory estoppel makes such contract enforceable even though there is no consideration attached. An illustration of such situation is where someone (a footballer) approaches you as the head of a sports centre to discuss taking training classes/sessions for people interested in football. Based on this, you then incurred expenses to put in place the needed facilities and in the long run the footballer changes his mind. You may think that you have no claim since there is no contract. However, promissory estoppel can help you claim for the cost you incurred by acting on the promise of the footballer.

To claim successfully under promissory estoppel, there is need to establish some elements. They are-

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1. That a clear promise was made.

2. You relied and acted based on the promise.

3. The reliance was a reasonable one and foreseeable by the person making the promise.

4. You suffered injury due to the reliance.

A promissory estoppel punishes the person making the promise for misleading

Plaintiff moved 2200 miles from Los Angeles to Hawaii to take the job and was fired prior to the end of the oneyear contractual term. On appeal, the court affirmed and held that the action of plaintiff moving 2200 miles from Los Angeles to Hawaii was foreseeable by defendant. Injustice could only be avoided by the enforcement of the contract

the person he promised. The person is prevented from claiming that it was just a promise and no consideration was given and therefore no contractual obligation exists. An example of where the principle was applied was in the case of McIntosh V Murphy 52 Haw. 29, 469 P.2d 177 (1970) In this case, the defendant employer challenged a decision entering judgment for plaintiff former employee in an action for breach of a one-year oral employment contract.

and the granting of money damages because no other remedy was adequate. The court found that it was also clear that a contract of some kind did exist. Plaintiff ’s reliance was such that injustice could only be avoided by enforcement of the contract.

Therefore, extra caution must be taken in making promises especially in business dealings. Such careless promises if relied on can be enforceable in law even though no consideration was given.

@Businessdayng

24

Friday 26 April 2019

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

The Seven existing GMO permits in Nigeria the National Biosafety Regulations 2017.

Stories by CALEB OJEWALE Twiiter: @calebtinolu

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here are seven permits that have so far been issued to six different organisations for either the importation or cultivation of certain Genetically Modified crops in Nigeria. Out of these seven permits granted by the National Biosafety Management Agency (NBMA), six appear to strictly refer to importation, while only one permit expressly allows the cultivation of a Genetically Modified crop in Nigeria, in this case, Cowpea, popularly known as Beans.

These permits were retrieved from NBMA’s website and some of the highlights are reproduced below.

Rom Oil Mills Limited – Soy Bean The company has a permit for the importation and use of Genetically Modified (GM) Soy Bean for Processing of Edible Oil, with a maximum import volume stated as 11382.656 Metric Tonnes (MT).

The permit is with effect from 6th August 2018 to 31st December 2021.

It is also stated in the permit, that the company is authorised to import, transport, store and mill the GMOs into poultry feed.

NBMA stated in its approval document, that after a thorough analysis of the application dossier, risk mitigation and contingency options available, it is unlikely that the proposed use of the GM Soy Bean for edible oil processing

would cause adverse impact on the environment, on human and animal health.

As part of the Permit Holder’s obligations, they are to ensure that all GMO materials are properly labelled in line with the provisions of the National Biosafety Management Agency Act 2015 and the National Biosafety Regulations 2017.

CHI Farms Limited – Soy Bean Chi farms was granted a permit for importation of Genetically Modified (GM) Soy Bean for Poultry Feed Processing with effect from 6th August 2018 to 31st December 2021, with a maximum import value of 30,000 MT. It was also stated that the Permit is for importation, transport, storage and milling of the GMOs into poultry feed.

A s p a r t o f t h e c o mp a ny ’s obligations, they are to ensure that all GMO materials are properly

I

also highlighted the role of unified food safety standards in ensuring fair trade practices.

“Food safety crosses across national borders. Food produced in one country today can, within 24 hours, be on the other side of the planet and on its way to shops, restaurants and homes,” said Tedros Adhanom Ghebreyesus, Director-General of the World Health Orgnization (WHO). “There is no such thing as food safety for the rich and another for the poor.

The health of all people, no matter where they live and what they eat, must be protected equally,” he said.

For Roberto Azevêdo, WTO Director-General, “Access to safe food is crucial in achieving the Sustainable Development Goals.

It is therefore imperative to discuss how food, health and trade policies can align to help deliver these shared goals.”

For food to be safe, it must also be healthy stressed Graziano da Silva, explaining that food safety cannot be only about preventing people from getting food poisoning or falling sick due to food-borne illnesses. Rather, it must also address multiple health risks associated with poor diets. www.businessday.ng

Elephant Group Plc – Soy Bean The company has a permit for importation and use of Genetically Modified (GM) Soy Bean for Feed Processing, with effect from 26th September 2018 to 31st December 2021.

The permit which indicates a permissible import volume of 50,000 MT, authorises importation, transport, storage and milling of the GMOs into poultry feed.

As part of Elephant Group’s obligations, all GMO materials are to be properly labelled in line with the provisions of the National Biosafety Management Agency Act 2015 and

Monsanto Agriculture Nigeria Limited – Maize Mosanto Nigeria has a permit for genetically modified Maize, which is to be used for Food, Feed and for Processing (FFP). The permit with effect from 10th April 2019 to 31st December 2022, does not authorise this GMO for cultivation purposes.

In the permit reviewed, there was no indication of the volume the company is to import (as noted in some other permits).

Monsanto Agriculture Nigeria Limited – Soy Bean Monsanto has a second licence for Soy Bean which is to also be used for “Food, Feed and for Processing (FFP),” with effect from 10th April 2019 to 31st December 2022. The Permit does not authorise this GMO for cultivation purposes.

Syngenta South Africa (Pty) Limited – Maize Syngenta has a permit for genetically modified Maize to be used for Food, Feed and for Processing (FFP), which supersedes the earlier one issued to it for the same purpose.

The permit is with effect from 10th April 2019 to 31st December 2022.

The permit forbids using the GMO for cultivation purposes.

Why Nigeria needs to rethink hard stance on Cannabis (2)

International trade needs to prioritise food quality, safety, experts say nternational trade is regarded as a very important tool for tackling hunger, however, there is need to ensure countries guarantee that globally traded food is of good quality, safe and healthy, according to José Graziano da Silva, FAO Director-General.

Speaking at the International Forum on Food Safety and Trade that ended on Wednesday, Graziano da Silva, noted that many countries depend heavily on food imports to guarantee the availability of food for their people. “Unfortunately, unhealthy ultra-processed food fares better in international trade in terms of transportation and conservation than non-processed food,” he said.

He noted that trade in such products has already contributed to a substantial increase in the proportion of obese people in countries that import most of their food, such as the Pacific and Caribbean Islands.

The FAO Director-General called on international community to advance the establishment of trade rules and regulations that encourage the consumption of healthy and nutritious foods. He

labelled in line with the provisions of the National Biosafety Management Agency Act 2015 and the National Biosafety Regulations 2017. The permit also states that the GMOs “shall not be planted and shall not be allowed to grow anywhere”.

Institute for Agricultural Research, Zaria – Cowpea (Beans) The institute has a permit for the commercialization of genetically modified Cowpea (also known as Beans) resistant to lepidopteran insect pest (Maruca vitrata), valid from January 22, 2019 to December 31, 2022.

In arriving at its decision, NBMA stated in the permit that it was convinced that; there are no known adverse impacts to the conservation and sustainable use to biodiversity, taking into account risk to human health.

A s p a r t o f t h e In s t i t u t e’s obligations with this permit, they are to ensure that “planting area shall be 20 metres away from farm plots of non-GM related species.”

It also gives a condition that any intended grower of this GM cowpea of up to 50 hectares shall ensure that five percent of the plot is under afforestation.

There is also a requirement for an Annual Report, which will include the following: (a) the locations where dealings on the GMOs are taking place within Nigeria, (b) Information about any adverse impacts, unintended effects, or new information relating to risks, to human health and safety or the environment caused by the GMOs or material from the GMOs; (c) Information about the initial volumes of the GMOs grown for commercial purpose, including

seed increase operations, in each State for the first growing season in the period; (d) Information about the volumes of the GMOs grown for non-commercial (e.g. research) purposes in each State for each growing season in the period.

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t is often reported in Nigeria that the National Drug Law Enforcement Agency (NDLEA) has arrested individuals in possession of “Indian hemp”. On some occasions, the reports indicate farms where these are being grown have been burnt down as deterrent.

But a question becomes important to ponder; is there a chance some of the seizures and stigma against Cannabis in Nigeria may have been based on ignorance of what type of cannabis is scientifically proven to be ‘harmful’? Again, not all Cannabis is meant for drug purposes, particularly Marijuana (which in itself, is another topic of legality in different countries). However, in Nigeria, no distinction appears to exist, at least not when law enforcement agencies make a ‘cannabis bust’.

The Encyclopaedia Britannica defines Hemp, (Cannabis sativa), also called industrial hemp, as a member of the plant of the family Cannabaceae cultivated for its fibre (bast fibre) or its edible seeds.

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Hemp, according to Britanica, is sometimes confused with the cannabis plants that serve as sources of the drug marijuana and the drug preparation hashish.

Although all three products— hemp, marijuana, and hashish— contain tetrahydrocannabinol (THC), a compound that produces psychoactive effects in humans, the variety of cannabis cultivated for hemp has only small amounts of THC relative to that grown for the production of marijuana or hashish.

According to the “Global State of Hemp: 2019 Industry Outlook”, hemp could play a major role in achieving the goals outlined in the African Union’s “Africa 2063” and the African Development Bank’s “Feed Africa” initiatives.

This would not seem plausible at first glance, but the report goes further to explain that including hemp foods in humanitarian relief efforts – and importing to neighbouring countries and in conflict zones – could have an immediate impact on malnourishment and would take advantage of the nutritional and medicinal value of hemp.

Hemp seeds according to @Businessdayng

the report, are among nature’s best sources for plant-based protein. Hemp protein powder is made from hemp seeds, which provide a solid nutritional boost similar to flaxseeds. Hemp has 20 amino acids, including the nine essential amino acids that the body is unable to produce on its own and must obtain from dietary sources. Hemp protein powder has dietary fiber, chlorophyll, minerals, and antioxidants without any saturated fat, cholesterol, sodium, or sugar.

Considered in isolation, one could start to wonder, how the ‘nutritional values’ of hemp have suddenly become important. It however starts to make more sense, when the malnourishment and food security in Africa is considered.

Several countries are affected including Niger ia where according to the 2018 global report on food crises, 5.3 million people in the northern region face severe food crisis. But no, hemp is not to be consumed as a whole food item, rather, as a nutritional supplement.

• Continues next week...

Friday 26 April 2019

BUSINESS DAY

25

Hotels A night of African flavor at Sheraton Abuja

Top BusinessDay Partner Hotels

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

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isiting Abuja, the Nigerian capital city, during weekends may be boring as most residents, especially civil servants and politicians travel for engagements outside the city, and return Sunday evening or Monday morning.

Well, the city still offers some exciting activities during weekends to engage and thrill those who cherish spending their weekends in Abuja.

The Coconut Beach at Sheraton Abuja Hotel is now the address for those looking for all-round every Friday.

The exclusive and secured venue kick-starts a fun-filled weekend with its enthralling Wazobia Night; a compelling Friday Night sit-out for the hotel’s in-house and walk-in guests. Of course, the name implies variety of excitements from different part of the country, and the offering lives up to that expectation every Friday since it was launched.

The uniqueness of Wazobia Night is beyond the high quality food and drinks on offer. Rather, the live African music band that delights guests with sounds from the major Nigerian languages and cultural heritage holds the major attraction.

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

Guests are sure of being entertained in their mother-tongue or hear familiar jokes. This singular act is a selling point for the offering, and also attracts foreigners who come with the hope of learning and enjoying the cultural heritage of the country alongside the indigenes in a very relaxed and secured environment.

As well, the Wazobia Night, activated to recharge and entertain the hotel’s guests after a long week of hardwork, also offers best of local delicacies.

As the occasion suggests, the hotel delights its local and international guests with pure African delicacies prepared

by top class chefs and served with very chilled beer and premium wines.

Explaining the rationale behind the offering, the management of the hotel said the hotel came up with the initiative to calm the nerves of guests after a long week of hard work and to foster friendship among families and friends in an elevated environment.

“We have put together assorted African dishes which will be served alongside premium wines and beer from the Nigerian Breweries which will be served at the event for your utmost delight. Nigerian Breweries is one of our part-

ners, hence we will be selling all Nigerian Breweries brands at an affordable discount of 40 percent”, the management said.

Now, the leisure offering has grown in bouquet, appeal, attendance and patronage, the management assured of its sustainability and urged Abuja residents to stay back in the city on weekends to enjoy exciting packages, especially Friday Wazobia Night.

“We will also be entertaining you with Live African Music band that will be delighting you with sounds from the major Nigerian languages, among other attractions within the hotel”, it concluded.

Why Africa needs to invest in mid-market hotel

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he Africa hospitality sector is set to witness new business opportunities in mid-market hotel brands as guests preference begin to differ.

However, hospitality investors still prefer the upscale market of between four-star to five-star, while leaving out the mid-market segment that offers brands across threestar and sometimes four-star level.

According to a report by Euromonitor International, a leading research group, Africa’s tourism and travel sector is on the rise. However, some segments within the industry are still under-explored.

The report, titled ‘Megatrends Shaping the Future of Travel’, indicates that midmarket hotels and related brands have a chance to cash in on what is essentially a multi-billion dollar subsector.

The development is courtesy of the growing middle class in Africa who relate more with mid-market brands or see them as right for

their budget.

For Andrew McLachlan, senior vice president for Development in Sub-Saharan Africa for the Radisson Hotel, Africa is now ready for midmarket hotels as infrastructure to support hotel operations has improved and the market has matured and is ready for segmentation.

McLachlan suggested that South Africa in particular is ready for trendy economy brands such as Radisson’s Prizeotel, which he believes will be introduced in the country in the near future.

Early in 2018, Radisson Hotel Group announced plans to grow its portfolio in sub-Saharan Africa to 120 hotels by 2023, an increase of 60 percent on current stock.

“While its past focus has been on its upper-upscale Radisson Blu brand, moving forward 65 percent of the new hotels will be upscale and mid-market hotels,” said Euromonitor International.

The company has already introduced the upscale Radisson brand in Africa, with the first opened www.businessday.ng

in Dakar, Senegal, in January 2018.

These developments come at a time when the rise of experiential travel has favoured growth of companies such as Airbnb in Africa.

Euromonitor International states that strong travel demand, lacking hotel stock and a general absence of regulation benefit short-term platforms. Airbnb aims to invest $1 million in Africa by 2020 to promote community-led tourism projects. According to the company, Africa is seeing some of the strongest growth in bookings.

Egypt, which is entering a period of renewed stability, saw growth in guest bookings of 134 percent between 2017and 2018, with further strong growth in Kenya, which posted a growth of 60 percent, and South Africa also posting 60 percent, Tanzania 53 percent and Morocco 50 percent.

“Increasingly, Africa is not just seen as a destination, but also as a plethora of source markets,” explained Euromonitor International’s

Wouter Geerts.

“Local companies such as Travelstart and Hotels.ng, as well as, Tajawal.com in the Middle East, are able to benefit from this growth by offering services in local languages, having greater understanding of local consumer preferences and behaviour,” Geerts, who holds a PhD on sustainability in the hospitality industry from Royal Holloway, University of London, continued.

Euromonitor’s researchers also note that The Middle East and Africa region, and United Arab Emirates in particular, has been at the centre of innovation in an effort to make the travel journey completely frictionless.

Biometrics and facial recognition are becoming increasingly common in airports, arguably one of the travel spaces with the most friction. Dubai Airport, for example, has installed a facescanning Virtual Aquarium, a tunnel equipped with over 80 facial recognition and retina cameras, replacing traditional border gates.

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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

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. @Businessdayng

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Friday 26 April 2019

BUSINESS DAY

entertainment

‘We work to get more converts for African films‘ Since his unforgettable role as Bola Abayomi in Jacob’s Cross, Fabian Adeoye Lojede has become the de facto African acting idol celebrated across the whole continent and the diaspora. In this interview, the Nigerian-born actor who lives and works in South Africa, talks to Obinna Emelike on his Pan-African initiative, movie business, co-production among other related issues.

Congratulations for taking interest in pushing your Pan-African initiative, what is the initiative all about and how far have you pushed it so far? ell, it is really about engaging with creatives and business people across Africa and the diaspora. We have a few projects in the pipeline. We are currently at an advance stage with Talking Drum in the UK, on a UK/South Africa/ Nigeria Co-production called Incense. We are working with Mahmood Ali Balogun in Nigeria.

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You take pride in telling African stories that can travel, how far have your stories travelled and where are they appreciated most?

Well, in today’s digital world film travels to every corner of the world, what would have been classified a niche audience in the past with digital can now be mass.

How do you feel at the successful premiere of ‘Comatose’ at FESPACO this year, do you think the

movie is worth the many accolades and where else is the movie going to premiere?

It was great to have the premiere at an African film festival like FESPACO. Accolades? Well, a Film can be a very personal experience in terms of appeal and appreciation and I am happy and grateful to those that have expressed how much they liked.

days were very traditional, I have learnt more about the digital application of advertising from my wife who runs her own digital advertising network in five African countries called Blu Flamingo Digital. So, I think as an entrepreneur, you just need to know who to work with and be willing to learn from them.

Breaking down, if I do it won’t be because of work.

If I had been a doctor or lawyer I would still be doing everything I am doing now, only on the side.

When are you releasing another thriller in the line of ‘Comatose’?

In the few months.

You live and work in South Africa, has that influenced your career in any way, do you think you would have done better working from Nigeria?

I think the influence South Africa has had on my career is that I found it a lot easier to meet like-minded PanAfrican creatives from all over Africa and the diaspora and to an extent there are more international jobs being shot there. But in terms of skill and talent I am a proud product of the Nigerian advertising industry that is where the foundation for my creative career was laid.

Bola Abayomi

Would I have done better working from Nigeria? That is a very hypothetical question meaning the answers would also be hypothetical thereby lacking any validity. What I can say is that a lot of my work is greatly influenced by the Nigerian narrative irrespective of where I have been based. In fact, at some point through my production company 1 take media, I was in Nigeria almost every month for close to eight years, shooting Nigerian commercials at home or in South Africa. So, I have never really felt like I

Glo subscribers relish Easter with Bovi Man on Fire show

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elecommunications firm, Globacom, on Thursday in Warri, Delta State, gave its subscribers an Easter to remember as Bovi Ugboma, celebrated comedian, delighted the audience with hilarious jokes during a comedy show sponsored by the company.

Tagged Bovi Man on Fire, the show had Bovi, who brought the show to a glorious end. Other comedians who entertained the live audience at the show included Kelvin Sapp, Young Chief Odogwu, MC Shakara and Mr. Flexy.

The show had in attendance high profile personali-

ties and other customers who spent Good Friday with the grandmasters of data.

In attendance were the Prime Minister of Warri Kingdom, High Chief Ayiri Emami, the president of the Nigerian Football Federation (NFF), Amaju Pinick, Globacom’s number one trade partner in the Mid-West Region, Hanson Okuoimase, who doubles as the Chief Executive Officer (CEO) of Nadal Heights System Limited and his wife, Hope Hanson, among others.

Bovi was supported by Kelvin Sapp, Young Chief Odogwu, MC Shakara and Mr. Flexy who also gave the audience an evening of fun.

L-R: Stanley Omatseyinone, Globacom activation dealer, MC Shakara, popular comedian, and Bomilegha Diyerin, another Globacom activation dealer, at the Warri edition of Bovi Man on Fire comedy show sponsored by Globacom on Thursday. www.businessday.ng

Philip Oghenetega who also watched the show, praised Globacom for always seeking to delight its customers at all given opportunities and for its support for the entertainment industry in Nigeria.

“Beyond the laughter and the fun, I think, we should personally acknowledge Globacom for its efforts at always going out of its ways to delight its customers and make them always number one in everything. I have been to shows and I can appreciate the value of the free ticket Globacom gave to me to be part of this Bovi Man on Fire show, the first in Warri”, Oghenetega said.

Stanley Omatseyione, Globacom subscriber and one of the leading activation dealers in Delta State, said, “One must give it to Globacom for having the interests of its subscribers and business partners at heart. I had planned to come for the show on my own and I was greatly relieved when Globacom sent the free ticket to me. This is very encouraging and it gladdens one’s heart to note that a company as big as Globacom recognises one’s modest contribution to its growth”.

left home.

You are multitalented; an actor, producer, director, voice-over artist and an entrepreneur, how do you get on with all these without conflict and breaking down?

There is no conflict at all, everything I do is interwoven and I believe the trick to it all is to know at one point one cap comes off and another comes on. The businesses that I do not have ample knowhow about, I work with people that do. For instance, my initial adverting

Do you think your role in ‘Jacob’s Cross’ lifted your career?

Definitely a good and ground breaking series will do that for anybody.

Can you take us through your journey, so far, in the movie industry, what are the high and low points?

Lows for me is the struggle to find good scripts and stories that one is passionate about. High points are producing and acting in Man on Ground with my brother Akin Omotoso and Hakeem Kae Kazim. Making my last film COMATOSE and I am excited about the

future, VOD is changing the game for independent film makers.

In your view, which African movie industries are doing well, do you think African stories are beginning to catch the attention of the global audience?

Well, there is only one African film industry in the true sense of the word and that is Nigeria. South Africa makes films but I wouldn’t say it has an industry, People don’t flock every weekend to go and watch the latest local film, same as in the UK. South Africa has more of a service industry for international films due to the high level of skill there.

I don’t know if African films are grabbing the attention of the global audience outside those that already find African films appealing.

I think the growth lies in getting people that don’t normally watch African films to become converts. I think the new wave of black American film makers are showing us it is possible, like Barry Jenkins of Moonlight, Andrew Dosunmu – Mother of George and our own Akin Omotoso with Vaya.

Femi Kuti, Alexandre Deniot, others call for enhanced quality of Nigerian music to encourage business opportunities

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emi Kuti, afrobeat musician and Alexandre Deniot, CEO of MIDEM, have called for concerted efforts by industry stakeholders in Nigeria to ensure high quality content as a means to positioning the Nigerian music industry for greater business opportunities. They both took the position at the second edition of the MIDEM African Forum, which held in Lagos recently.

The event was attended by music industry stakeholders, tech gurus, entertainment lawyers, talent managers, PR agencies, artistes and music lovers and also featured two panel discussions that addressed issues around the way forward for the African music industry as it continues to grow its presence across the world.

After tackling the discussions on the theme, “Changing the narrative of African music on the global stage”, the first panel, which include speakers such as Wale Davies, Yemisi falaye, Micheal Ugwu, Laverine Thomas and Waje Iruobe, shed light on the relevance of labels set up to deliver 360

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deals with the evolution of independent artistes and labels in Africa.

Right after the first Panel was a Q and A session by Buki Izeogu of BukiHQ MEDIA, with Efe Ogbeni of Stealth Management. Ogbeni shared stories his journey so far, his relationship and work with Davido, Nigerian hip-hop act and other major clients, challenges he has faced and how all the mistakes and experiences culminated in his success story.

The Second Panel followed with discussions around “charting a course for the African digital market”. The panelists broke down the importance of data in applying new tools and perspectives for music in a digital world.

They went further to discuss ways to apply the tools and concepts to the music industry. The panelists were Thibaut Mulling, Tosin Sorinola, Oye Akindeinde, Bizzle Osikoya, Chidi Okeke and Kelvin Orifa.

Another engaging Question and Answer session with Taiye Aliyu of Effizie Records @Businessdayng

was conducted by Tokunbo Komolafe (ACAS LAW). He shared his experience as a music executive. He also advised on ways upcoming talent managers can become better and gave pointers on steps to take.

Attendees were later engaged in closed work group sessions, which discussed and presented ideas towards building innovative business models adopted to local realities, embracing tech and digital to reach local and global audiences, structuring the local industry and capacity development.

Earlier in the event, the CEO of MIDEM made a presentation on the brand’s objectives and how it has worked with key players in the African music industry to strengthen the exchange between national and international executives and sectors in order to facilitate the structuring of high-potential markets.

Activities later moved to the Afrika Shrine, where Femi Kuti and Alexandre Deniot hosted a media parley and showcase of musical talent.

Friday 26 April 2019

BUSINESS DAY

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entertainment Going cashless: The ATM bank card Business etiquette

Janet Adetu

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welcome the idea of not having to carry bulk cash around just because you need to pay for something important. The birth of the idea of living a cashless society at first was a bit of a mystery simply as the thought of not dealing with cash seemed impossible. A few years down the line with the existence of the ATM (Automated Tellers Machine) bank card life seems so normal. This small ATM card has in many ways made doing business and everyday living quite an easy way to live.

Whether the card is a debit or credit card purchases are made spontaneously, quick and smooth. The card has made shopping both physically and virtually the next best thing. It is cashless once you do not need to handle your physical cash to pay for your chosen wanted or needed items.

The thing is does this card and the idea of transacting without cash motivate you to buy more than you need or purchase things you really cannot afford?

Today with all new bank accounts opened you will receive a bank card to ease all your banking needs. This way you can avoid going into the physical premises of a bank for your withdrawals as well as deposits avoiding time wastages and more.

Interestingly this bank card ……. For the purpose of cashless transaction is still being used to provide cash in the …. of its owner.

Is the cashless idea being defeated?

Trusting the cashless society Inspite of the cry for a cashless society suddenly there is a real rush for cash especially over the weekend. We have noticed how some banks have their ATM

machines so over used that they run of cash to dispense. Are we ready for this cashless space, a lot more education and advocacy may be required to address the open market where bulk buying and selling takes place? For many reasons it the use of ATM cards is still facing many challenges.

Many market sellers do not believe in cashless business, psychologically they want to see the cash in their hands. The reason for this is not farfetched as multiple problems have been and are still occurring regarding the ATM card.

Speaking to a few open market business entrepreneurs they have had experiences with the ATM bank card stemming from the card being swallowed by the machine due to the input of the wrong pin number and playing the guessing game. They have also complained that where they have reverted to the use of telephone banking and transfers the network creates double debiting due to unsolicited down time.

Your bank card is great but how well is it serving you for both business and everyday living?

Sadly again many have experienced their cards being in the hands of fraudulent activities even while the card is still in their possession. Technology has created room for hacking and identity theft that requires more care to be taken once you have acquired your bank card for both new and old expired cards.

Talking about doing cashless business we see that the ATM card keeps turning new surprises now you can purchase without cash and still receive cash back on request from selected stores and in selected countries. Sounds very convenient but a far cry from being cashless.

ATM Card Etiquette I realized that in going cashless it has encouraged the need to avoid cash now only to encourage the use of cash at a later date. The thing is how savvy are you when it comes to the ATM cards, it is an area that one can easily fall victim of ignorance and etiquette breach. I decided to mention a few protocol areas that though seem obvious are easily taken for granted.

Safety of your Bank Card

The card being so small and light weight is quite welcoming because it reduces the bulk in your purse, wallet or bag.

Many do not have a special place where they keep this card, it is simply hanging in the corner of where it is placed. So easily do these cards go missing that it is important to have a dedicated place to keep it. It is safer not to keep your card close together with a bunch of keys or your mobile phone device, as this can affect the magnet reading strip provided on each card. Once you have used your card, remember to place it right back where you removed from. Too many times it is an assumption you know where you have kept it only to find out you did not return it back appropriately.

Multiple Cards For each account you will once again be given a card, there is a tendency to have all your cards kept in one place. So many times, I have seen women open their purse to pay for something and it is loaded with numerous cards. As convenient as this may be the obvious question is what would happen if that purse was to go missing?

My suggestion is that you segregate your cards and there usages according to the need. For instance, everyday transactions, monthly shopping or purchases, large investments items, for savings and so on.

That way you can control the various usages of the card and not carry them around for nothing. It also requires you have a good idea idea of how much you have in your account at any point in time.

Pin Number The pin number palaver can be daunting if you have not mastered the art of noting and keeping your pin number in a safe place. One of my staff has had this experience at least three times where the ATM machine swallowed his card simply because he played the guessing game with his pin number. He has since realized the importance of keeping his pin number safe. This may appear to be a common error where the number is taken for granted. Many have resolved to have the same pin number for all cards, life made easy. This is fine provided you do not make the mistake of revealing your

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It is cashless once you do not need to handle your physical cash to pay for your chosen wanted or needed items

card details to anyone.

Bank Cheque Both debit and credit cards attract different bank charges for its usage. This may be for transactions e fees for usage, transactions, over limit fees, using in another geographical location and more. When you take cash from an ATM machine using your credit card it is important to note that the fees on such transactions are usually quite high, most especially if it is in foreign currency. It is easy to overlook these charges on your bank statement if you do not make it a point to monitor your funds. A little bit of financial literacy may just come in handy where you need it the most.

ATM Savvy It may not be often that you find yourself at an ATM machine especially if you are content with the workings of online or mobile banking. Once in a while you may have cause to use the machines, but safety and security is key even when you know it is a two-minute activity. i. You may prefer to use the ATM machine situated within the bank premises, that is less exposed for more comfort. ii. Look out for what is unusual about the machine and be more vigilant. iii. Choose a visible location not so isolated and watch the locality, the area and the neighborhood. iv. Be wary of any idle ATM machines or random placed ones, it may be safer to go elsewhere. v. Always have your card ready at hand before you reach the point of execution at the machine vi. Always look around you and be suspicious of everyone vii. Decide what you are going to do, check the balance or withdraw viii. Don’t get distracted by the v oice over on the machine ix. Ensure no body is too close to you while you are transacting x. Be discreet in all you do at the ATM Machine.

Please share your experience janet.adetu@jsketiquetteconsortium.com. @janetadetu @jsketiquetteconsortium

Movie Review – A BIG FAT LIE

Linda Ochugbua

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his movie did no justice in impressing us beyond the trailer, which was the major reason, why most people ran to the cinema to see it. Also seeing the face of my girl Rita Dominic made me so excited to go and see it in the first week, if you follow my reviews well, you would understand why I am Rita’s greatest fan, but there was just something wrong with this movie for me, and they didn’t kill it for me. Although she did work so hard in putting up a good show, so many things were just wrong with this movie, therefore making it so difficult for her face alone to save the day. From the trailer it was easy to tell what the movie would be around ---- the lead actor telling lies to ladies about things he was not, but when we got into the movie, they were just so many loop Holes and the core of the movie wasn’t achieved for me. It was like telling a bad story and this didn’t turn out well, my expectations were far from being met, not to talk of being surpassed.

We technically had 4 main actors and about 6 major scenes in the movie that were out

stretched, they were Rita Dominic and her son, Blossom Chukwjekwe and Ushbebe. A very basic storyline that didn’t hold much water, a few cast, most I didn’t even really know so well, I won’t rule the production, locations and cinematography totally down, but then it wasn’t exceptional. One major issue I had with the locations was the fact that they never revealed exactly where they were, we only saw pictures and paintings but not the external footage of the places, making it seem like only the hotel scenes were paramount.

Rita played the lead role she was also James’s colleague alongside Ushebebe who was James’s cousin, they all worked together as cleaners in a very nice hotel, where they earned N40,000 a month. It wasn’t easy for them living on that salary, but then they all had to survive despite even being graduated from universities.

In the first scene we witnessed James sell all his belongings to buy an expensive ring to propose to a girl, that he supposed was his. Little did he know that she wasn’t into him at all and she turned down his proposal. From then on he became a player and started to live a very fake life.

One faithful day as he went about his duties in the hotel, he came across the uniform of a naval officer who was their loyal client, and the process of trying it on and leaving the door open, his so called celebrity crush who had just logged in the hotel bumped into him and thinking he was a real captain then fell in love with him. The movie went on quickly after their meeting and she agreed to have a date with him.

It was from one big lie to another, as he continued to put up a front that he was a captain,

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but she kept on digging, because deep down in her spirit she felt he was lying. When she found his social media handle and approached him, he came up with different lies, faked his wife and son, kept deceiving her with expensive treats he couldn’t afford. It was at the final straw of the lies and deceit he came to realization that the true love he was looking far and wide for, was right there in front of him and yet he couldn’t see. He almost got himself into trouble and jail, when the police force came looking for the naval officer who committed some atrocities. You need to watch the entire movie to see how he got busted.

Cast: Rita Dominic, Blossom Chukwujekwu, Eniola Badmus, Joseph Momodu, Mercy Aigbe, Scarlet Shotade, Sean Uche Oyinbo, Ushbebe, Tana Adelana Genre: Drama Director: Darasen Richards

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Ratings: R15 Runtime: 90 minutes Release Date: March 15th 2019 It was quiet difficult for me to decide on a score for this movie, but I would settle for a 6/10 and this is just me being so nice to my girl Rita.

For me this movie didn’t depict her style and class, although I loved her acting and her trying so hard to kill her role.

Bad editing and poor connectivity of the story, the pathetic pictures used in showing us the places they were travelling to, despite we knowing clearly that they went nowhere, that for me was actually the most annoying aspect for me in the movie. I strongly believe that whatever is worth doing is worth doing well, so if you would take out time and funds to shoot a movie, please shoot it very well. They also need to pay more attention to details next time, as we have become smarter than this. On this occasion I am not sure I would be recommending this movie, but for the Nigerian movie fans, who would love to just while away your free time, maybe you can give this a try if you have no better option. Unfortunately it had no substance nor lessons to take away and besides the lies were also unrealistic.

Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline.com , also please do answer the question of the week on social media and stand a chance to win a free movie ticket.

Linda Ochugbua @lindaochugbua

@Businessdayng

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Friday 26 April 2019

BUSINESS DAY

INTERVIEW Employee engagement is critical to productivity – Whytecleon CEO Nireti Adebayo is the chief executive officer of WhyteCleon Limited, a leading human resources outsourcing and management solutions provider in the country, and chairperson of the upcoming 2019 summit on employee management and productivity. In this interview with a select journalist talked about employee engagement and total workforce optimization, performance and time management, and technology disruptions, among other HR related issues. Modestus Anaesoronye was there. Excerpt: Amidst the uproar that greeted the “Nigerian youth are lazy/idle” controversy last year, the Nigerian Bureau of Statistics (NBS) reported that roughly 70 million Nigerians were in productive labour in 2018. How would you reconcile the apparent contradiction or is there a general misunderstanding of the meaning of productivity? here has to be a disconnect somewhere because from where I sit and from what we have gathered over the years, the Nigerian youths are actually very hard working, highly motivated. Despite the challenges we have had in the country over the years, our youths do wonderful things in different places. I may have to disagree with that statement. I believe in the last couple of years, we have witnessed the increase in the number of startups most of which are spearheaded by the youths with the support of the private sector. We are a highly productive society. We are not lazy people. I believe that having about 70 million Nigerian youths duly engaged gives credence to the fact that the youths are highly productive.

However, considering the unemployment rate, youths are daily devising creative ways to make ends meet through manual labour, petty trading and so on. However, I will not overlook the fact that we have miscreants in the society but all our youths should not be placed in this category. I commend our hardworking youths on a daily basis because I supervise the best set of very intelligent and highly motivated youths there is and for me, it is a clear indication of a hardworking productive generation.

Over the past three decades or so, the public service in Nigeria seems to have struggled to attract young, bright and innovative people to its ranks. Is it that Nigerian youth do not perceive the public service as an attractive career option or the public service is suffering from an image crisis?

Nigeria is a peculiar society. The civil service has not in any way encouraged vibrant youths. The reason is because of the highly bureaucratic nature of the civil service. It is also highly nepotistic in some places, not in all. I believe strongly that the civil service may have to do a surgical restructuring in a way to attract highly skilled and vibrant individuals.

The civil service is very discriminatory. The public sector missed it when it began to use the quota system to employ individuals, which is devoid of selection of talents on a merit driven basis just as it was in the past. The public sector therefore will have a lot of image laundry and restructuring to do in a way that it can eliminate these issues plaguing their system and begin to attract skilled and vibrant individuals. The public service needs vibrant, competent and motivated individuals to take up roles in the sector because that is one way to build a strong nation as a people. I am not insinuating that those currently in the public sector are not brilliant, far from it, but they are demotivated because of the current structure of the civil service. A public service that is highly bureaucratic, where decision making is as difficult as squeezing water from a stone, a service that promotes mediocrity over competence effectively demotivates even the most brilliant minds.

What would you say is responsible for the perceived disparity in the productivity levels in the private and public sectors in Nigeria?

There are various reasons why this would

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Nireti Adebayo

happen. One is, do they have the necessary infrastructure to work with? It is a different thing for one to be intelligent, smart and competent, and it is another to have the requisite infrastructure or tools required to work with.

These two assertions complement each other.

Even though we believe the public service is funded, what does it do with the funds? It is true that they have their budget every year but what do they spend it on? Do we have a system where these budgeted funds are accounted for? So, when you have such issues in the public service, motivation is bound to suffer as people simply adopt a wait-and-see attitude. I believe the public service has a lot of work to do to ensure that the necessary resources are available for the employees. However, I also believe that the structure for accountability is deficient in the public service. If we have these budgets passed yearly, who is asking how these monies are expended. We need to check ourselves because governance is administered by people and we are the people.

We owe ourselves the responsibility to do the right things. A system that lacks merit and accountability will always impact productivity negatively. These issues mentioned above are responsible for the obvious disparity in the levels of productivity between the public and private sectors.

Employee engagement is very critical to productivity and business sustainability.

Engagement is at the heart of attracting and retaining the best brains. However, there appears to be a lack of engagement in many workplaces. A research by your company in 2013, which is still relevant today, showed that about 65% of employees are not rightly engaged. How do you overcome this at Whyte Cleon and what should be done to boost workplace engagement?

This problem of engagement is multidimensional. Employee engagement is what we have been preaching for many years. We always believe that engagement is not necessarily always about monetary compensations, although monetary compensation is a big part

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of engagement. After all, there are employees who are highly remunerated and yet are dissatisfied with their jobs. The engagement of employees goes beyond what we pay; it can be in the form of intrinsic or extrinsic benefits.

To encourage employee engagement there has to be clear value propositions from the employers to employees and vice versa. Really, engagement is supposed to encourage those discretionary or extra efforts from employees as a result of the employers’ engagement policies. Given the current economic state of the country, employers owe it a duty to have a face to the business and to ask themselves how they can bring the best out of their workers beyond compensation. Many organizations do not have a face and a soul to their businesses; they see the employees as mere assets that should bring in the necessary targets. It should go beyond this. What is the welfare package for our workers? What tools have we provided to ensure performance? Organizations still have a lot to do in these areas. Fully engaging

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The future of work is such that it would require competent and motivated individuals, people who are ready for change, who must be willing to acquire new skills and adopt technology

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the employees and ensuring their welfare does not in any way diminish the strength of the organization or affect the control the employer has over his business. Rather, the right engagement brings out the best in the employees and increases the productivity in such environment.

The world is now at an age when technologies like artificial intelligence, virtual reality, robotics and so on are disrupting work as we know it. What is your assessment of the readiness of Nigeria’s workplaces for the future of work?

We are very late in reacting to technology. I’m excited though about the influx of technology. No doubt some jobs would be lost but many others would be augmented or created as a result of technology. This is the age of technological advancement and I expect organizations to have comprehensive strategies to enable efficiency and support their businesses if they haven’t already joined the train in taking advantage of the gains technology offers. The future of work is such that it would require competent and motivated individuals, people who are ready for change, who must be willing to acquire new skills and adopt technology. We are excited about the positive disruption technology brings because it opens up new opportunities for us, broadens our horizon in terms of what can be achieved within a short time. And we need to begin to implement tools that will help either to engage the employee or to ensure that productivity is sustained. We have to build our organizations to be irrepressible no matter the disruption that technology may bring.

You are the chairperson of the Time Attendance Management System (TAMS) Summit coming up in Lagos a few days from now. What is the significance of the summit vis-à-vis productivity and employee performance in Nigeria?

Let me first commend the convener, Mr Afolabi Abiodun. He is a highly motivated and intelligent individual. I believe strongly that there is a link between what TAMS is trying to propagate and productivity in workplaces. The summit is a platform for engagement to help further the discourse on enhancing workplace and national productivity. TAMS speaks to the totality of the variables that will help to propagate growth in organizations in terms of performance management, time management, employee engagement and total workforce optimization. All of this culminates in highly tangible assets that enable organizations to grow. TAMS is a wakeup call to organizations to pay attention to those variables that impact productivity and growth.

The TAMS Nigeria Employee of the Year Award (NEYA) is set to celebrate employees who made outstanding contributions to organizational productivity. What informed this award and why such a focus and array of prizes for ordinary working people?

Awards are great because they help to recognize good performance. They help to encourage commitment and more hard work.

Awards have a way of affecting the psyche of the recipient and he begins to look for ways to do more, to add value, to think outside the box, which increases self confidence. What this does for the workforce is that it fosters healthy competitions; the others are encouraged in the knowledge that management sees, recognizes and rewards great efforts and dedication.

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Friday 26 April 2019

C002D5556

BUSINESS DAY

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Exporting leather products will result in a dramatic upward swing in earnings, says Bello Abba Yakasai 32

Sarkin Kano’s thoughts on poverty, underdevelopment in Africa 30

Lagos Chamber pushes for review of Nigeria’s automotive policy

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MAN president wants Nigeria to leverage on China’s upward swing 31

Nigeria: The beautiful bride …As the West slugs it out with China to do business with Nigeria, reports SIAKA MOMOH

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nce upon a time, former British Prime Minister David Cameron delivered a speech at Pan African University’s Business School, Lagos (now Pan Atlantic University) as part of his one-day visit to Nigeria. He also held bilateral talks with ex President Jonathan alongside key government functionaries at the State House, Marina.

His speech focused on three areas of concern: Delivering aid rightly, growing private enterprise and trade, and long term political reform. Regarding private enterprise and trade, one thing came out clearly - UK was worried about China’s robust investment in Nigeria and Africa, and would want the worrisome situation reversed.

David Cameron, that Tuesday, opened up on this issue to a cross section of informed Nigerians, at Pan African University.

Need to catch up with China Said David Cameron at the event: “Today, Britain accounts for less than four percent of Africa’s exports. That’s almost three times less than China – and one of the reasons I’m here is to make sure we catch up. It’s why I’ve brought a plane full of business leaders. And it’s why we want to do more to extend loan guarantees and trade finance to British companies that are looking to do business in Africa; because we see Africa in a new way, a different way. Yes, a place to invest our aid; but above all a place to trade.”

Nigeria’s strong ties with UK Nigeria has very strong ties with the UK, what with its being a major colonial out post to this country that was an empire to reckon with. Nigeria is the UK’s 32nd largest overseas market and 2nd largest African market for goods. UK exports of goods to Nigeria were worth £1,433 million in 2008 (up 42 per cent on 2007) and exports of services were worth £1,279 million in 2008 (up 46 per cent on 2007). The main export opportunities for the UK include oil and gas, agriculture, mining and mineral processing, power, and communications.

But in recent years, we have witnessed a robust entry of Chinese and South African businesses into Nigeria. Chinese trade relations and other business interests in Nigeria, like in some other parts of Africa, have shot up. The Chinese

trade in textiles, garments and a long list of general goods. They are in oil and gas and solid mineral businesses. They are also into road and rail construction works. According to World Bank Weekly Report for July 7, 2008, Sino-African trade exploded from $2 billion in 1999 to $55.5 billion in 2006 and $73 billion in 2007, growing faster than Chinese trade with the rest of the world, and making a significant contribution to China’s success. Nigeria comes in big as that part of Africa that the Chinese are interested in.

UK’s poised to grow private enterprise and trade The United Kingdom is thus poised to unleash economic growth through private enterprise and

trade in Africa. This, according to David Cameron, “is what has lifted hundreds of thousands out of poverty in Brazil, China and Indonesia and it can do the same here in Africa.

“So it’s right that we give the poorest countries the most open access to European markets. And it’s right to work for a world trade deal that helps countries develop. But more changes are needed – both here and around the world. Change here because at the moment, just twelve per cent of African trade is with other African nations. In Europe, it’s over two-thirds.”

Cameron argued: “Imagine the prize if Africa increased its trade in this way. An African Free Trade Area could increase GDP across the continent by as much as $62 billion a year.

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That’s nearly $20 billion more than the world gives Sub-Saharan Africa in aid. And we need change in Britain too, because, frankly, we’re just not doing enough to pursue the possibilities of trading with you. Right now, Britain is in danger of missing out on one of the greatest economic opportunities on the planet.

It is therefore very clear why David Cameron, like the rest of the West, wants to fight back.

EU Delegation Only recently, Filippo Amato, Trade Counsellor, Head of the Trade Economic Section, EU Delegation to Nigeria and ECOWAS, made a

Continues on page 31

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Economy

Sarkin Kano’s thoughts on poverty, underdevelopment in Africa Siaka MOMOH brings you excerpts of the paper.

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he occasion was the Manufacturers Association of Nigeria’s maiden roundtable which held in Kano second week of April, 2017, where His Royal Highness Muhammad Sanusi, Sarkin Kano delivered the keynote address. He kicked off with the progress that is currently being made.

Progress is being made He argues: • This reflects broad improvements in living standards, which have been especially pronounced in the last 20 years.

• On a global scale, hunger, poverty, illiteracy and child mortality have all been reduced by 40-50% relative to their 1990 levels.

• But like most other benefits that have come in the age of globalisation, they are not evenly spread.

• There are large disparities between regions, and growing inequalities within countries.

• While the absolute number of poor in the world has decreased, in SSA it has actually gone up.

Population growth has not slowed For Sanusi: • One reason that makes it hard for Africa to keep pace is exceptionally high population growth. Median estimates for population growth show Africa crossing the 2 billion mark in the next 20 years.

• Taking Nigeria as the example, fertility rates are among the highest anywhere in the world – regardless whether the countries are Christian or Muslim, rich or poor, small or large.

And for him, fertility rates differ across regions: • But once again we see big differences across income levels, education levels and regions.

• It is possible that fertility rates among the poorest and least educated segments of the population are actually rising.

• One major culprit is the lack of family planning – a sensitive topic historically.

• Will it be demographic dividend or disaster?

• If the fertility rate doesn’t decline

Business/Policy

seated crises • One of the obstacles the continent faces is rapid population growth. Africa as a whole is projected to nearly double in size by 2050, which means that even if the percentage of poor people on the continent is cut in half, the number of poor people stays the same…

He reels out New Financing Solutions: • Development Finance institutions are uniquely placed to intermediate the excess of savings in advanced economies and the lack of investment in developing ones.

• There still more than US$6.0trn parked in negative yielding bonds – ~4X the GDP of all SSA. How does this money make it to Africa? ...

quickly enough, it will be very difficult or impossible for Nigeria to harness the demographic dividend.

• In order to benefit from the demographic dividend, fertility rates need to decline so that ratio of workers to dependents can rise. Right now Nigeria has 1.1 workers per dependent; East Asian countries (now at the peak of their demographic dividend) have 2.7 workers per dependent.

• A favourable age structure is however just the start: the economy also has to provide jobs for all these workers.

• To do this, Nigeria (and Africa) also needs greater investment in education, higher productivity in the informal sector, better governance, etc • If the fertility rate doesn’t decline quickly enough, it will be very difficult or impossible for Nigeria to harness the demographic dividend.

• In order to benefit from the demographic dividend, fertility rates need to decline so that ratio of workers to dependents can rise. Right now Nigeria has 1.1 workers per dependent; East Asian countries (now at the peak of their demographic dividend) have 2.7 workers per dependent.

• A favourable age structure is however just the start: the economy also has to provide jobs for all these workers.

• To do this, Nigeria (and Africa) also needs greater investment in education, higher productivity in the informal sector, better governance, etc .

On Population Explosion – The poverty challenge: • As a result of successes in Asia, the geography of poverty is changing: Extreme poverty is becoming heavily concentrated in sub-Saharan African countries. By 2050, that’s where 86 percent of the extremely poor people in the world are projected to live • The challenge is that within Africa, poverty is concentrating in just a handful of very fast-growing countries. By 2050, for example, more than 40 percent of the extremely poor people in the world will live in just two countries: Democratic Republic of the Congo and Nigeria. Even within these countries, poverty is concentrating in certain areas. It’s rooted in violence, political instability, gender inequality, severe climate change, and other deep-

A Changing Global Context • Winner and losers in a trade war In an environment of rising barriers to trade and US isolationism, where does Africa fit in?

• As a rule thumb, the “winners” in a trade war are trade and current account deficit countries – in other words most of Africa.

• But more importantly, this may be the opportunity for Africa to rethink “hyper-globalisation”.

• Patterns of structural change in Africa • Part of the problem in Africa has been insufficient focus on the development of a manufacturing base.

• For all the talk of diversification, a formalised service economy is closely allied to manufacturing – and can only come after it.

• Africa needs structural change more than just “growth”. And for this much greater levels of investment are required.

How do foreign investors see Africa?

New Risks Are Emerging You can trust His Royal Highness’ word on this subject which is his turf: • Rising leverage across the board • A decade after the end of HIPC, rising public sector leverage in Africa is now a widely recognised problem.

• Over this period, average public debt levels have risen from 24% of GDP to 45%, three quarters of this from 2013-2017.

• In that time the number of African countries at “high risk” of debt distress (or already in it) has increased from 5 to 13.

Affordability ratios – at preHIPC levels • Debt/GDP ratios are only half the puzzle; affordability is the other.

• Using debt service-to-revenue ratios as the yardstick, many countries are now in a worse position than before they got debt relief via HIPC/MDRI. • Unless there is a radical change in fiscal policy from here, another round of restructuring seems is inevitable.

Meanwhile the public sector is losing importance • The public sector in Africa has lost importance in relative terms: government revenues are not keeping pace with GDP. • Although more investment is needed, governments’ ability to lead it is actually falling over time.

Lagos Chamber pushes for review of Nigeria’s automotive policy

SIAKA MOMOH

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review the Automotive Policy which was decreed by the Jonathan Administration in 2013 is long overdue. Six years after, the policy has not only failed to achieve the desired outcomes, it has adversely impacted the cost of doing business, welfare of the people, government revenue and the capacity of the economy to create jobs.

According to the Lagos Chamber of Commerce and Industry (LCCI) Director General Muda Yusuf, “It has caused massive trade diversion to neighboring countries. High compliance cost has put enormous pressure on firms moving them into uncompetitive positions in the face of weak institutional capacity to enforce the extant tariff regime.”

He argued: “The cost of vehicles had risen beyond the reach of most citizens and corporate bodies. The impact has been negative with far reaching consequences. The automobile sector was

Thoughts on China’s Influence in Decline • A greater mobilisation of DFI resources is going to be key at a time when China’s importance as a creditor begins to decline.

• Just as US credit to the rest of the world began to decline in the 1970s, China’s will too as its economy adjusts towards greater domestic consumption.

Says he on attracting new investment: Yet if we apply this categorisation to Africa, most countries would fall into the other three categories. They are more commodity dependent, growth is more volatile and returns on investment less predictable. What do we need to do to break this cycle? What is the key to attracting more investment in manufacturing?

• Chinese “geese” are beginning to fly to Africa, but the number of large, global supply chain geese is still relatively limited.

• Looking at the four countries with the largest number of registered manufacturing investments from China (Ethiopia, Tanzania, Nigeria and Ghana) there were still only 98 projects employing just over 20,000 people, with a an average project size of US$10.3mn.

hit by the double shock of currency depreciation [of over 80%] over the last six years and an import duty hike to 70% on new cars and 35% on used vehicles and commercial vehicles.

“The auto policy was an import substitution industrialization strategy to reduce importation of vehicles and incentivize domestic vehicle assembly.

However, import substitution strategy would only thrive in the context of high domestic value addition. It is within

such a framework that the economy could benefit from the inherent values of import substitution which includes backward integration, economic inclusion, multiplier effects, and conservation of foreign exchange, job creation and reduction of import bills. The automotive policy, in its current form is not in consonance with the Nigeria Industrial Revolution Plan [NIRP] which is the main industrial policy document of the current administration. The NIRP espouses the

strategy of resource-based industrialization. Six years into the implementation of the auto policy, not much progress has been made, even though over 50 Vehicle Assembly plants licenses have been issued. Total annual assembly of new cars in 2017 and 2018 were estimated at less than 10,000 units.”

He added “The truth is that, the high cost of vehicles has taken a severe toll on the economy, from a logistics cost and welfare point of view. Practically all aspects of our economic and social lives had been negatively impacted by the situation. This is because over 90% of the country’s freight and human movements are done by road, which implies heavy dependence on cars, commercial buses and trucks.

“Manufacturers and other real sector investors suffer from high cost of delivery vehicles, sharp increases in haulage cost because of the high cost of trucks; school buses have become unaffordable by many institutions; many hos-

pitals cannot afford ambulances; many corporate organizations have drastically cut down on their fleet etc.Vehicle ownership is now completely beyond most of the middle class. These unintended consequences and collateral harmful effects on the economy and welfare of citizens are incalculable. This underscores the strategic importance of road transportation to domestic economic integration and connectivity.

The economy, he said, has witnessed an increase in the price of vehicles by between 200 to 400% over the last five years. “Not many investors and the citizens have the capacity to pay these outrageous prices. Even prosperous corporate organizations are now buying used vehicles for official use. The implication of the scenario for operational costs of organizations is worrisome. The auto policy in its present form is most inappropriate for an economy that is heavily dependent on road transportation, he argued.”

Friday 26 April 2019

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Manufacturing

MAN president wants Nigeria to leverage on China’s upward swing

the stock of EU FDI in Nigeria stood at about 37bn EUR. EU exports to Nigeria are complementary not competing with locally produced goods. This means not only that local manufacturers should not fear competition from EU companies, but also that there is scope for cooperation and synergy between EU companies and Nigerian manufacturers. It also means that local manufacturers should be interested in reducing the costs of input and machinery imported from the EU, for instance by lowering import duties on such products, a solution that a trade agreement, like the West Africa-EU Economic Partnership Agreement (EPA), could provide.

Second, Nigeria is still a long way from diversifying its exports. It is not acceptable that only about 5% of Nigerian exports are non-oil exports, considering that the EU is the main non-oil export destination of Nigerian goods. Nigerian manufacturers should be interested in increasing non-oil exports to the EU. Again, this is something a trade and development agreement like the EPA could

contribute to achieve, by removing all EU import duties on non-oil exports from Nigeria.

Third, the stock of EU FDI in Nigeria shows that European companies have an interest to long term investments in the country, contributing to local growth and job creation.

European companies do not come to Nigeria to make quick profit and leave. They do not content themselves with selling without investing in local production.

The EU delegation is currently preparing a study mapping the European businesses present in Nigeria: how many they are, the sectors in which they operate, and how much they contribute to the Nigerian economy. We are planning to present the results of the study in June or July, in an event organised with the EBO. We will be glad to have MAN among our guests • The EU plays a key role in providing support to private sector development, business environment and trade facilitation in Nigeria and in the ECOWAS region.

Under the 10th and 11th EDF the

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Nigeria-China MOU, according to him, was mainly on infrastructure development especially in the power and transportation sectors. “We are all aware that many ongoing projects in these sectors, both at the Federal and State levels are indeed being financed by the Chinese. We are also aware that BRI also covers other areas of investment opportunities including Industrial and SMEs development, Trade facilitation and human capital development” he said.

“It is our desire to explore during this dialogue how the growing Nigeria-China economic relations and the BRI can be leveraged to attract more investment in our manufacturing sector and reverse the direction of de-industrialization

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on our country,” Mansur argued.

MAN, he said, is worried about the slow pace of growth of industrialization, especially the manufacturing sector in our country as a whole, “but even more worrisome, the process of de-industrialization that is increasingly evident in some of our states drawing attention to Kano in particular which “has clearly suffered in this regard over the past two decades during which almost half of its thriving manufacturing establishments have shut down”.

“Clearly MAN, the Government and indeed all other stakeholders must be concerned, and we must explore all potential strategies to arrest and reverse this de-industrialization process.”

SIAKA MOMOH

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Editor’s Note hen David Cameron was British Prime Minister, he paid a one-day visit to Nigeria. His mission was to counter China’s growing influence in Nigeria. He argued then, at Lagos Business School: “Britain accounts for less than four percent of Africa’s exports. That’s almost three times less than China – and one of the reasons I’m here is to make sure we catch up. It’s why I’ve brought a plane full of business leaders. And it’s why we want to do more to extend loan guarantees and trade finance to British companies that are looking to do business in Africa; because we see Africa in a new way, a different way. Yes, a place to invest our aid; but above all a place to trade.”

Years after, the China influence is still growing, growing more than before. The EU is not at peace with this Asian ‘incursion’. So it swung into action April this year at a China-Nigeria relations event in Kano. Filippo Amato, Trade Counsellor, Head of the Trade Economic Section, EU Delegation to Nigeria and ECOWAS, made a strong case for EU at a Manufacturers Association of Nigeria (MAN) organised event.

It was a Nigeria-China event but Amato found it auspicious to use the platform to sell EU. He was as straight forward as Cameron. No pretence whatsoever.

Nigeria has thus become the beautiful bride of the West. Read the rest of the story in our cover piece.

His Royal Highness Muhammad Sanusi, Sarkin Kano, shares his thoughts on poverty and underdevelopment in Africa in a

‘It is our desire to explore during this dialogue how the growing Nigeria-China economic relations and the BRI can be leveraged to attract more investment in our manufacturing sector and reverse the direction of de-industrialization on our country’ anufacturers Association of Nigeria (MAN) President, Engr Mansur Ahmed wants Nigeria to leverage on China’s rapid economic growth as he set the tone of discussion at the Nigeria-China economic relations event which held recently in Kano at the instance of MAN. Ahmed drew attention to the increasing Chinese influence on the global economy and specifically on developing countries “such as ours, and the opportunity this opens up for our economy”.

Said he: “It’s now common knowledge that China has become the 2nd largest economy in the world (GDP over $10 Trillion) and is rapidly becoming a major factor in the changing global economic order.

“In 2015, the Chinese Government launched the “Belt and Road Initiative” (BRI) as a global economic development strategy aimed to change the architecture of the world economy. BRI- involves a $900 Billion infrastructure and investment programme designed to connect over 67 countries in Europe, Asia, Middle East and Africa, to China with the goal of changing the direction of trade and investment flows.”

He added that in September 2018, Nigeria joined the Belt and Road Initiative. The focus of the

BUSINESS DAY

Siaka Momoh

keynote address he delivered in a MAN’s event in Kano.

Lagos Chamber of Commerce and Industry (LCCI) is calling for the review of the Nigerian automotive policy which it argues has caused massive trade diversion to neighbouring countries and that “ high compliance cost has put enormous pressure on firms moving them into uncompetitive positions in the face of weak institutional capacity to enforce the extant tariff regime”.

Read all above and more in our edition for this month.

You are welcome on board.

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

Nigeria: The beautiful bride Continued from page 29 strong case for EU at a Manufacturers Association of Nigeria (MAN) NigeriaChina relations event in Kano. It was a Nigeria-China event but Amato found it auspicious to use the platform to sell EU. He was as straight forward as Cameron. No pretence whatsoever.

Hear him: • I will not be able to directly contribute to the topic of the discussion today, however I would like to share with you some thoughts that might hopefully stimulate reflections and possibly lead MAN to soon organize another event with the title “Leveraging on EU-Nigeria relations to reindustrialize the Economy” • Let me start with some figures about EU-Nigeria trade and economic relations: – The EU remains Nigeria’s most important trading partner in exports and imports, representing about 40% of Nigeria’s total external trade (both in 2017 and 2018).

– The total volume of trade between Nigeria and the EU has been increasing over the years: about 20bn

EUR in 2016, 26bn EUR in 2017, and 34.4bn in 2018 • An important point – contrasting the Chinese trade structure – is that Nigeria has always had positive trade balance with the EU: about 2bn EUR in 2016, 5bn EUR in 2017 and 10bn EUR in 2018!

– Another important point is that most of the products Nigeria imports from the EU are inputs or machinery (see table below): – 44% of EU exports to Nigeria are represented by oil refined products – 19% is machinery – 12% are chemicals – Only 9% is food and beverages – Even less (about 8%) other manufactured goods • A third important point is that about 95% of exports from Nigeria to the EU are Oil and Gas products • A final important figure I would like to mention is that of EU Foreign Direct Investments. EU FDI stock in Nigeria stood at EUR 38.4bn in 2015 (source Eurostat), representing more than 50% of the overall FDI stock in Nigeria (Source UNCTAD). Even during the period of recession, in 2017,

EU is funding a number of regional programmes covering: Economic Integration and Private Sector Development (10th EDF in cooperation with the World Bank Group, GIZ and UNIDO) and Trade Facilitation and Competitiveness (11th EDF).

Under the WA Competitiveness Programme, the Nigeria component, implemented by GIZ, is an 11 million Euro project that seeks to improve competitiveness and exports through value chain development. The project is implemented in 7 states including Kano and it focuses on 4 value chains namely: tomato (including pepper and chilli), ginger, leather and garments. The project is targeted at improving the performance and growth of farmers and industry/ processors, including contributions to regional and global exports in the selected value chains and improving the climate for businesses at national and regional levels.

Going by the revelations above, it very clear that Nigeria is very important to the economy of the West. The west sees China as a competitor that must be given a straight fight.

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Trade Matters

Exporting leather products will result in a dramatic upward swing in earnings, says Bello Abba Yakasai …Nigeria’s raw leather export value currently, is between USD 600- 800mn

he Nigerian leather industry, which currently generates between USD600 million and USD800 million through export of raw leather annually, will experience a dramatic upward swing if it opts for export of leather products, Bello Abba Yakasai, a leather research expert has said.

According to Yakasai, who reeled out these figures in a

“So if global export is based on raw leather the value is $40 billion, but if it is leather products export, the value is $272 billion giving us a difference of $232 billion!”

Cocoa case Bello Yakasai is not alone in this talk about the beauty of value chain. He finds an ally in Peter O. Aikpokpodion, Ph.D, University of Calabar, Cross River State, Nigeria Crop Improvement & Agri-Commodities Value Chain Development Specialist Principal Partner, Com-

· If it is chocolate bars to confections – bars worth N144.2 million, you will earn 1.2 billion (716% profit)! · Cocoa bean to confection gives 6,751% margin!

So, according to the don, the economic benefits are Increase in forex earning; job creation; attracting new generation of farmers; education and capacity building; vertical integrated business.

According to World Integrated Trade Solution (WITn S) and Comtrade 2017 Nigeria’s Hide and Skins export to

paper titled ‘Leveraging on China-Nigeria Economic Relations to Industrialize the Economy’, he presented at the instance of the Manufacturers Association of Nigeria (MAN)in Kano recently, good as these figures may be, Nigeria can do better if it exports leather products as against largely raw leather that it currently exports.

Says Yakasai: “About 20 billion ft2 leather is produced worldwide, valued about $40 billion. In 2016, world leather exports and imports totalled around US$2 billion each.

But with value addition, value of all products is about $272bn -55% footwear valued at $150bn; shoes alone over 11bn pairs (1.4 pairs/ person).Other products are furniture upholstery, clothing, leather goods, vehicle upholstery, and gloves.

modities Enterprise Development International, who demonstrates it with cocoa at an Agra Innovate two-day event at Landmark Centre, Lagos.

He rolls out the earth quaking numbers in his paper titled ‘Strategies for Strengthening the Cocoa Value Chain in Nigeria -Adding Value for Profitability and Sustainability’.

He explains the process: roasting, winnowing, pergrinding, conching, refining and aging. The following are the sweet numbers - the outcome of this transformation – outcome of the value chain activity – value addition activity: · If you transform 22 metric tonnes of cocoa beans worth N17.2 million to chocolate bricks you will earn N84.1 million (389% profit)!

China stands between USD6 – 8.5m; and value import of leather products and Leather subtitles from china are as follows: • Footwear 300m pairs annually (industry estimate} • Value at an (average N2000/pair} – USD1.7b • Other products up to 20m pieces valued at over USD600m For Bello Yakasai, instead of exporting leather from Nigeria, China/Nigeria should invest into further processing of the products. This he says will result in more growth, and employment; training Nigerian artisanal processors of leather and leather products; enhance the growth of MSMEs; eencourage export of finished leather products and will earn Nigeria bigger foreign exchange from the industry.

SIAKA MOMOH

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Thoughts on international relations, globalization

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ne thing stands out clear in Transformations in International Relations Since 1945 – it is a rich resource document, what with its array of authors who are experts in their own right. You will find the book, edited by Abolade Adeniji, PhD, covering all relevant aspects of international relations – close or remote.

‘Distilling the Presence of the Past: Continuity and Change in International Relations’ by Abolade Adeniji, identifies, defines and dissects International Relations then and now. He thus succeeds in not only introducing the subject to the uninformed but gives a convincing executive summary of the subject. You will get to know that the modern period in International Relations commenced in 1648 with the signing of the Treaty of Westphalia, which enthroned the principle of sovereignty, which brought with it, the principle of balance of power. You will discover that the principle of balance of power helped to disallow continental domination by any one State. You will find out too that the breakdown of balance of power was responsible for the outbreak of the First and Second World Wars.

Rufus Olu Olaoluwa anchors the ‘Role of International Law in International Relations’. He treats the concepts, and sources of International Law, principles of the law, as well as the relationship between International Law and Municipal laws, etc. It is interesting and in order that Olaoluwa is able to expose the ugly face of International Law, inspite of its outward qualities.

Olaoluwa’s point of view can be corroborated with an Australia/ East Timor example, which has to do with a dispute over territorial waters. January 2006 witnessed an outpouring of criticisms against the Australian Government as the Governments of Australia and East Timor signed another interim resources sharing agreement for contested petroleum resources in the Timor Sea, by an Australian lobby group. The group attacked the Australian Government’s failure to address the larger and more important issue of permanent maritime boundaries.

Timor Sea Justice Campaign cocoordinator, Tom Clarke, claimed the deal to share ‘government royalties’ from the Greater Sunrise gas field 50/50, despite the field being twice as close to East Timor than Australia, simply postpones the real issues of sovereignty for half a century. This is something similar to Nigeria’s 60/40 per cent oil exploration relationship with Sao Tome and Principe.

Michael Ogbeidi’s 15-page historical analysis of the ‘Middle East in Contemporary Times’ is a brief that gives one the picture of war-mongering

Middle East that we know. We get to know the origin of the Middle-East debacle – an unending military confrontation that is predicated on the Palestinian question.

What is the question? The Jews facing persecution and decimation in Europe wanted a safe haven elsewhere. On this question of safe haven, the Jews race was divided between the orthodox Jews who wanted to return to Palestine and the liberals of the secularists who wanted statehood and locality. The orthodox Jews had their way for the Jews migrated to their acclaimed homeland, a move that was hotly rebuffed by Palestinian Arabs.

The Palestinian question has its roots in the 20th C, when most Arab nations became independent from either Britain or France, the UN voted in 1947 to divide Palestine between the Jews and the Arabs, but all Arab states rejected the plan. In 1948, when British troops left Palestine, the Jews declared the independent state of Israel. The Arab states attacked Israel, unsuccessfully, and most of Palestine’s Arab inhabitants fled. Arab-Israeli relations remained hostile, although in 1979, Egypt and Israel signed the Camp David accord, a separate peace treaty brokered by U.S. President Jimmy Carter. The dingdong relationship remains till this day.

Olaoluwa appropriately gives a summary of the militarism that the region had been entwined in over the years – from the 1935 and 1939 Arab terrorists and Iraq’s murder of 630 Jews in Mandatory Palestine, through the various attacks of Arab armies on the Jews in 1948, 1967, 1973, and 1991.

He notes appropriately too, that the solution to the Palestinian question is the recognition of the existence of the state of Israel by all Arab nations. The genesis of the crisis tells it all.

One other chapter that makes interesting reading is Chapter 13, the chapter tagged ‘Globalization and its Contradictions’ authored by Sylvester Odion-Akhaine. If you have been part of the group that has been celebrating the phenomenon called globalisation you are most likely to have a change of mind after reading this chapter.

Odion-Akhaine profiles current global inequality. To him, the North South divide is like a ravine, which deepens with everyday downpour. He asks the question: For who is globalisation? And he proffers an answer: It is simply for capitalists, and a tool for their maximization of profits, and for the rest of us, it is poverty and social inequality. Quoting Ihonvbere, he says, “Globalization has not reduced genocide, civil wars, interstate wars and violence”.

All said, the book is an indispensable, robust, quality resource material.

Friday 26 April 2019

BUSINESS DAY

NEWS SAHCO listing shows confidence in NSE platform …adds N6.29bn to market cap Iheanyi Nwachukwu

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arly this week (on Tuesday April 23), the Nigerian Stock Exchange (NSE) listed 1,353,580,000 ordinary shares of Skyway Aviation Handling Company Plc (SAHCOL Plc). SAHCOL Plc was listed on the NSE main board through an Initial Public Offering (IPO) at a price of N4.65 per share.

The listing of the company’s shares has added N6.29billion to the market capitalisation of The Exchange, further deepening the Nigerian capital market. It has also increased the visibility of SAHCO Plc whilst solidifying its brand as a major player in the Aviation sector.

This listing shows the confidence SAHCOL has in NSE platform, which has a total market capitalisation of N21.5trillion across various asset classes. In order to remain competitive, the NSE has implemented far-reaching transformational programmes that have improved market access and provided products that are aligned to investors’ requirements. NSE has also implemented several transparency initiatives (such as BrokerTrax, X-Compliance, X-Whistle, Compliance Status

The fire next time Continued from back page

grafted it upon his own head by himself. He was no doubt making the bold statement that he was beholden to no one – not even to His Holiness the Pope.

The nineteenth century French writer Victor Hugo made the cathedral even more famous with his novel, The Hunchback of Notre-Dame. When France was liberated from Nazi occupation in 1944, the event was celebrated at Notre-Dame. The Magnificat – the famous canticle of the Holy Virgin -- was sung on that occasion.

France has been united in grief. Messages of sympathy have come from far and wide.

Some N500 million have already been pledged by private donors towards the rebuilding project. In a sombre address to the nation, President Macron expressed deep sadness that this priceless monument that took a century to build could be destroyed in a matter of hours.

He promised that a more beautiful Notre-Dame will emerge in 5 years.

Noted French philosopher and public intellectual Bernard-Henri Lévy (BHL, as he is popularly known), equally expressed his own shock “before the images of fire (and) devastation”; describeing Notre Dame as “a treasure of civilization, both for those who believe in heaven and for those

Indicator Symbols, X-Issuer etc) which have significantly improved confidence in the market.

SAHCOL Plc is the first company under the Bureau of Public Enterprises (BPE) privatization programme to successfully finalize an Initial Public Offering and list its shares on a securities exchange. The company is a full-scale aviation ground handling service provider with a focus on aircraft/ramp handling, cargo han​d ling, passenger handling, premium lounge, aviation security and baggage reconciliation. The firm enjoys the patronage of a clientele that spans international and local commercial airlines, as well as other air cargo companies.

The NSE is positioned as a premiere listing destination for African corporates, governments and international issuers looking to access the capital market of the largest economy in Africa. Other companies within the Aviation Sector are encouraged to join SAHCO Plc by listing their shares on the NSE. In her welcome remarks, Tinuade Awe, Executive Director, Regulation, NSE commended SAHCO Plc for taking the bold step to list on the Exchange. “We are particu-

larly pleased that SAHCO Plc has taken this strategic step to join the Main Board of the Exchange and in so doing, the prestigious club of quoted companies in Nigeria.

This step indicates the firm’s belief that our platform remains a veritable avenue for raising capital and enabling sustainable national growth. I commend SAHCO Plc for this bold and strategic step which will not only showcase the company as an established player in the Aviation sector but will enable the firm to actualize its strategic vision of becoming the leading provider of passenger, Ramp and Cargo Handling Services in the West African Sub Region”.

Awe, also stated that The Exchange encourages other privatized state-owned enterprises to explore the different opportunities in the capital markets for raising long term capital.

SAHCO was incorporated as a private limited liability company under the name Skyway Aviation Handling Company Limited on 22nd April 2009. The Company is a member of the Sifax Group. In 2009, the Sifax Group, through SAHCO, acquired the Federal Government’s 100percent equity stake in Skypower, an aviation ground handling services

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Access Bank gets shareholders’ approval to pay dividend

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he shareholders of Access Bank Plc at the bank’s 30th annual general meeting held on Thursday April 25 in Lagos approved for the Board to pay final dividend of 25 kobo per ordinary share.

This is in addition to the interim dividend of 25kobo per share the bank paid at midyear. Among other resolutions at the meeting, the shareholders received and adopted the group’s audited financial statements for the year ended December 31, 2018 and the reports of the directors, auditors, audit committee.

The audited financial results for the full year (FY) ended December 31, 2018 shows an increase of 58percent in Profit after Tax (PAT) to N95 billion from N60.1 billion in the corresponding period of 2017.

Its Gross Earnings rose 15percent to N528.7 billion in FY 2018, compared to N459.1

billion in 2017, with interest and non-interest income contributing 72percent and 26percent respectively. Profit before Tax (PBT) for the review period was N103.2 billion, showing 32percent growth from N78.2 billion.

“The board and management’s gratitude goes to our shareholders, customers and all who have stood by us through the years. With your support, we have built a world class, sustainable institution underpinned by strong ethical and governance standards. We intend to maintain these standards as we progress further towards becoming the world’s most respected Africa Bank,” said Mosun Belo-Olusoga, chairman, Access Bank Plc. She noted that despite unfavourable market conditions, Access Bank Plc delivered a strong performance, demonstrating an effective strategy backed by strong governance.

“We shall enthusiastically and proudly play our role in supporting Nigeria’s economy and the businesses of every country where we operate. I look forward to a much brighter future ahead of us”, said Herbert Wigwe, group managing director/ CEO, Access Bank Plc. He noted that as a bank, Access Bank Plc is preparing itself for a more complex relationship with the economy and with “our operating environment which is being marked by fiercer competition, increased regulations and tighter supervision.”

“Here, we are actively shaping our future –to be the world’s most respected African bank –this is our vision. This merger signals a new chapter for our strategic intent. The expanded business platform will bring about increased operational efficiency, strengthened capital base and a tighter cost optimization programme,” Wigwe said.

UBA shareholders commend N29.9billion dividend payout

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hareholders of PanAfrican Financial Institution, United Bank for Africa Plc unanimously applauded the consistent strong performance of the Group, as reflected in the impressive growth in deposits and broader balance sheet.

More importantly, the shareholders lauded the Management and Board for the total dividend of N29.9billion paid from the

2018 financial year profits, even as the Group proactively retains earnings for probable implementation of BASEL III in the near term.

The Group was also commended for its strides in the larger African continent, as it continues to deepen financial inclusion in those countries, with corresponding positive contribution to the Group. The foreign operations contributed 40percent

of the Group’s earnings, with a strong outlook to further gain market share across all the 19 other African countries, where it operates.

The shareholders, who expressed their appreciation during the Group’s 57th Annual General Meeting in Lagos on Tuesday, praised the Staff, Management and the Board, over the proposed dividend, following the impressive performance.

Abdel Fattah El-Sisi and the battle for ...

‘

Perhaps a new NotreDame might also be the harbinger of a new spiritual rebirth for the French people who do not. She represents the Europe of beauty, of holy hopes, of greatness and gentility. Like you, like everyone, I am heartbroken”. He quotes the poet Louis Aragon: “Nothing is as strong, not fire, not lightning, As my Paris defying danger; Nothing is as beautiful as this Paris of mine.”

Notre-Dame will be rebuilt.

And we have no reason not to believe Emmanuel Macron when he promises that a more beautiful edifice will emerge from the ruins. France is the world intellectual capital of atheism. I have never met a more godless people in my life.

For that, you have to blame the free-thinkers of the Enlightenment -- Voltaire, Rousseau, Diderot. They prepared the road to the violent revolution of 1789 that overthrew the ancien regime. Nothing wrong with that, except that they also bequeathed a legacy of a virulently anti-clerical, antireligious spirit that continues

Continued from back page

to haunt France up to our very day.

Who knows what this fire might ultimately mean?

A building is just brick and mortar, of course. What matters ultimately is the inner life of the spirit. The French have sought happiness in material things and in the pursuit of intellectual excellence as behoves lovers of science, letters, mathematics and philosophy. But they are, also, sadly, among the most depressed and suicidal of peoples. Perhaps a new Notre-Dame might also be the harbinger of a new spiritual rebirth for the French people.

Contrary to what is imagined, atheism does not define the spiritual foundations of French civilisation. On the contrary. France has been the land of great mystics. Legend has it that the remnants of the Holy Family fled to France during the Roman persecution.

Medieval French troubadours saw themselves as the Guardians of the Holy Grail. It is that forgotten France that is echoed in the chiming bells of its medieval cathedrals – Notre-Dame, Rheims, Chartres, Amiens, Strasbourg. A New France can be rebuilt on the foundations laid by giants such as Bernard of Clairvaux, Blaise Pascal, Louis de Montfort, Simone Weil, Gabriel Marcel and Pierre Teilhard de Chardin.

since gone to the dogs. el-Sisi is today a prominent and highly controversial figure on the world scene. He is a ‘strongman’, a no-nonsense leader. He is popular with Donald Trump and the right-wing media.

He is regarded as part of the ‘populist’ or ‘nationalist’ tendency that swept Trump into power in USA and is sweeping across Europe and part of the Middle East.

He has been prominent in the war against Islamic State (IS) in Syria and is a close ally of American protégé and Saudi heir apparent – Mohammed bin Salman (MBS). He is part of the coalition fighting the war against the Houthis in Yemen.

Some ‘progressive’ panAfricanists, worried about

his politics, expressed misgivings about the prospect of el Sisi becoming Chairman of the African Union.

The few Arab ‘strongmen’ who have gained acceptance as ‘warriors’ in the African cause, people such as Gamal abdel Nasser and Muammar Ghaddafi, have tended to come from the ‘left’ of the political spectrum. el Sisi, in so far as he can be fitted into a conventional pigeonhole, is clearly ‘right’ wing in his economics and his social policies.

What is happening in Egypt may be described, at best, as a ‘militarized democracy’.Many Egyptians swear by their President. Christian Copts feel their safety and religious rights are better protected under the ‘iron’ President than they were under the Muslim Brotherhood. But many Egyptians

remain opposed to Sisi for his heavy handedness and his failure to provide a level playing ground for democratic choice. Vocal critics of government, including writers, are in prison or in exile.

Freedom of the Press has been firmly curtailed. Many in the creative community believe that their country is in a period of darkness worse than the worst days of Hosni Mubarak. They vow they will not be silenced. For such people, their worst fears have just been confirmed by the result of the constitutional referendum and the extension and expansion of el-Sisi’s tenure and authority.

As Egyptians struggle over the future of their President and their nation, the rest of the world can only watch and try to read their body language.

Creative feast with Segun Arinze Continued from back page

approached it organically with wholesome celebrities who have stories to tell and can teach others how to stay relevant without becoming cheesy.

Segun is the first but others will follow soon, writers,

chefs, photographers, actors, interior decorators and broadcasters etcetera. We will be giving our platform to successful persons who have something urgent, disruptive and growth defining to say.

Too many persons with creative interests and dreams, let’s see if we can help them

get closer to their dreams or redirect it if it seems pointed awkwardly. It is never always that clear but with someone pointing and others on the same journey, its easier.

We are excited at what Creative Feast holds in store and how this will change our participants for the better.

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Friday 26 April 2019

BUSINESS DAY

news

Nigeria’s champagne imports down...

Continued from page 1

cheaper alternatives.

In 2014, Nigeria made international headlines when Shoprite, the South African supermarket chain, said it sold more of the bubbly wine in its five outlets in Nigeria than it did in 600 outlets in South Africa.

Ho w e v e r, w i t h t h e economic recession that hit the country in 2016, consumers are beginning to realign their consumption pattern to fit into economic reality.

To effectively finance a 67 percent additional wage burden of N30,000, the Federal Government in collaboration with the Federal Inland Revenue Service (FIRS) is seeking to raise consumption tax (VAT), Company Income Tax (CIT) and Petroleum

Profit Tax (PPT) by as much as 50 percent.

Going by the percentage increase, VAT will see an increase from its current level of 5 percent 7.25 percent. However, it is very unclear how CIT and PPT will be affected.

The plan to finance the increase in the wage burden through tax increment would invariably force companies to raise prices significantly, ultimately placing the incidence of the tax increment on the consumers, who are already struggling with a pocket squeeze, a fiscal policy that analysts say was designed to ”rob Peter to pay Paul”.

“From our initial est i mat e s, w e e nv i s ag e that the proposed increment in various tax items would raise additional N1.0trn for the

government. However, if our estimates on the tax base and taxable profits remain unchanged from 2018 figures, we don’t see the additional revenue enough to cater for the increased wage burden,” analysts at investment and advisory firm, CSL, said in a note.

Ademuwagun of United Capital, however, offered an alternative argument that despite the waning patronage of luxury goods, the government should go ahead with the proposed hike in taxes on ostentatious goods and ensure a progressive tax system that would abate revenue generation woes.

Data from the National Bureau of Statistics (NBS) on Gross Domestic Product (GDP) by Income and Expenditure approach at 2010 purchaser’s values show that consumption

expenditure of households has been declining at varying pace since it rose by 1.5 percent in 2015.

Final consumption of households has declined by 8 percent from N43.1 trillion in 2014 to N39.66 trillion in 2018. Although the figures provided for 2018 by the state-funded data agency was limited to Q2 2018, BusinessDay arrived at a full year estimated on an annualised basis.

Year on Year, household spending rose 1.45 percent to N43.7 trillion in 2015 but as Nigeria entered its first recession in more than two decades, household spending fell 5.74 percent to N41 trillion in 2016. While the rate of decline slowed in 2017 as households spent N40.78 trillion, the estimates for 2018 suggest a plunge of up to 2.75 percent for 2018.

BusinessDay proceeded in engaging with retail outlets and grocery stores that are close to the consumers that purchase these brands, many of which have complained about a fall in sales.

“It is quite an expensive choice,” Amaka Chinonso, a sales representative at ShopRite, told BusinessDay. “Patronage has been low because not everyone can spend so much for a drink.”

The champagne brands are at the higher end of consumer lifestyle with the prices of its lowest brand averaging around N25,000, since they are majorly imported from France.

Products like Bollinger Rose, Champagne Laurent-Perrier S.A.S, and Veuve Clicquot cost as much as a full month salary for workers who would be receiving the new mini-

mum wage of N30,000.

Chinonso, however, explained that the improvements in the Naira against the United States dollars have improved the affordability of champagne more recently.

Blessing Joseph, another sales representative at the retail outlet, explained that people occasionally purchased champagne for parties and ceremonies but the sparkling wine products sold much faster than champagnes.

BusinessDay findings confirmed that sparkling wines sold at an average of N5,000 per bottle were up to five times cheaper than champagne products, making consumers switch to the brand.

Sparkling wine brand in display at the shopping mall amongst others include Sparkling Mateus, Joven Sparkling Wine and Martini Rose.

BusinessDay unveils socio-economic ...

Continued from page 1

Research and Intelligence Unit (BRIU) and the editorial department, highlights in detail the cycle of development and growth that has evolved in Lagos State, Nigeria’s commercial hub and centre of excellence, within the four-year period since Ambode assumed office on May 29, 2015.

The 64-page report printed in gloss will come as an insert in BusinessDay on Monday and will be available in major hotels and eateries across the country as well as onboard airlines.

In drafting a detailed analysis of the state, BusinessDay embarked on an extensive research across different sectors of the economy including health, education, tourism and entertainment, maritime, trade, financial market,

Fintechs and digital technology, amongst others.

The report features Lagos as a driver of the Nigerian economy; how Lagos is transforming into Africa’s Silicon Valley; the Nigerian Stock Exchange (NSE), London and Johannesburg Stock Exchanges; the making of Lagos as Africa’s international finance centre and trade and transport hubs.

It also covers how the state climbed up the ladder to become the fifth biggest economy in Africa despite being a state; the night life; the expatriate communities in Lagos; the tourism and entertainment industry in the state, and the ocean economy.

To achieve a high practical standard reporting, BusinessDay got the views and reactions from various groups and organisations that in one way or

Short-let apartments, student...

Continued from page 2 five years.

To meet the growing demand in this segment of the market, landlords in prime locations are converting their assets to this use and are enjoying occupancy rates higher than standard residential building.

The vacancy factor in the prime residential market has been quite high in recent time, owing to landlords’ insistence on old prices and rents. The vacancy rates in the standard residential apartments have hovered around their H2 2018 figures with Ikoyi recording 30 percent, Ikeja GRA 26 percent, and Oniru 33 percent among

the highest.

Figures from a Northcourt’s outlook report for 2019 shows that GRAs 1, 2 and 3 in Port Harcourt recorded vacancy rates of 6 percent, 11 percent and 20 percent, respectively, and continue to show potential principally for their security advantages when compared to most parts of the city.

Co-working space is coming up thick and investment opportunity here is huge. Demand, which is driven mostly by milliennials and start-up community, is growing exponentially. This is despite Grade A office vacancy rates which remain high with existing 400,000 square metres www.businessday.ng

L-R: Halima Aliko Dangote, group executive director, Dangote Industries Limited; Cherie Blair, wife of former British Prime Minister/ guest speaker); Hailemariam Desalegn, former Prime Minister of Ethiopia/guest speaker, and Aliko Dangote, president/CE, Dangote Industries Limited, at the 2019 Women Corporate Directors Lecture sponsored by Aliko Dangote Foundation, with the theme “The courage to Lead; Inspiring Others, Overcoming Challenges and Achieving Success”, in Lagos, yesterday.

the other contributed in the growth success of the state including Aliko Dan-

gote, Africa’s richest man and chairman of Dangote Group; the Lagos Chamber

of Commerce and Industry (LCCI), a business organisation with over 2,000

members, and PricewaterhouseCoopers, global auditing and consulting firm.

stock of office space and over 40,000 square metres expected in the market in the new year.

“Millennials and the startup community continue to drive up the demand for coworking spaces with service providers seeking to convince traditional large-scale employers of the benefits of co-working just as corporates are in conversations geared towards putting up underutilised space for coworking use,” Ibaru said.

Student housing is an emerging investment frontier that guarantees investors high yields and stable cash-flow.

“This investment asset gives about 22 percent returns which is more than double what commercial real estate gives, not to talk of residential real

estate which gives 4-5 percent returns per annum. For this reason, we are encouraging other developers to come in,” Abayomi Onasanya, founder/ CEO, Student Accommod8, told BusinessDay in an interview in Lagos recently.

Munachi Okoye, CEO, MCO Real Estate, affirms, explaining that demand for this asset class is chiefly driven by the widening gap between a growing student population and little or no accommodation supply, especially in public schools.

“The ability to sign a long lease on land belonging to a higher institution or acquiring land adjoining a higher institution, building and charging a ready pool of student off-takers a market rent with 100 percent

occupancies leading to a stable cash-flow is a real estate developer’s dream,” he noted.

The increase in student population is a reflection of the national population growth which, as at October 31, 2018, according to United Nations estimates, was 197.4 million – an equivalent of 2.5 percent of the total world population. The country’s annual growth rate is estimated at 2.6 percent.

Another profitable area for investors is the small-size apartments including studio, one-bedroom and twobedroom apartments. Market research shows that demand here is huge but supply is small.

“This is one area of housing where there is a huge gap which is not being addressed.

Over 60 percent of people who are looking for houses to rent today are not looking for 3 or 4-bedroom apartments, but 1 and 2-bedroom,” MKO Balogun, CEO, Global PFI, said in an interview.

The demand in this submarket is such that any available supply is taken up within one month of entering the market. Periwinkles Investment’s Oxygen Apartments, comprising mainly 2-bedroom, sold out in two weeks of launching into the market.

African Capital Alliance is developing over 600-unit Blue Water Lagos in collaboration with Elalan Construction. The first phase of the development comprising 119 apartments is almost 40 percent sold out still at topping out stage.

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Friday 26 April 2019

BUSINESS DAY

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Sports Boxing fans thrilled to a memorable night at GOtv Boxing Night 18 ... As Adeyemi wins N1m Best Boxer Prize money ...Joe Boy knocks out Ghana’s Brave Warrior to retain ABU title Stories by Anthony Nlebem

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t was a night to remember for lovers of boxing as GOtv Boxing Night train moved to Ibadan on Easter Sunday, April 21st for the GOtv Boxing Night 18 held at the Indoor Sports Hall of the Obafemi Awolowo Stadium. Tickets sold out one hour before the fight, as the venue was full to the brim. Hundreds of fans trooped in with their friends and families to get a glimpse of boxing and cheer their boxers to victory.

Nigerian boxer, Oto “Joe Boy” Joseph, successfully defended his African Boxing Union (ABU) lightweight title. Joe Boy saw off the feeble challenge of Ghana’s Success “Brave Warrior” Tetteh.

Joe Boy, miles ahead in ability, toyed with the dire Tetteh before knocking him out in the first round. In the other title fight on the night, Ridwan “Scorpion” Oyekola dethroned Taofeek “Taozon” Bisuga as the national super featherweight champion.

Scorpion thrice dropped Bisuga on the canvas in a fight that ended in 46 seconds.

Opeyemi “Sense” Adeyemi, best boxer at GOtv Boxing Night 18 and awarded the Mojisola Ogunsanya Memorial Trophy with a cash prize of N1million.

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In the light middleweight division, Akeem “Dodo” Sadiku knocked out Republic of Benin’s Ekpresso Djamihou in the fourth round of an international challenge duel.

Also on the night, West African Boxing Union welterweight champion, Rilwan “Baby Face” Babatunde, made an impressive return to action, dismissing Ganiyu “Energy” Kolawole in the third round of their duel.

Rising lightweight star, Taiwo “Esepo” Agbaje, knocked out Michael “Holy Mike” Jacobs in the first round of their challenge duel.

The super bantamweight bout between Opeyemi “Sense” Agbaje and Sadiq Adeleke ended in a draw. Jamiyu “Sunshine” Akande defeated fellow debutant Mufutau “Oloke” via a second round knockout, the same outcome as the clash between Isaac “I Star” Chukwudi and Jubril “Terrible” Olalekan, which was won by the former.

Opeyemi “Sense” Adeyemi was voted best boxer at GOtv Boxing Night 18. The winner is awarded the Mojisola Ogunsanya Memorial Trophy to which a cash prize of N1million is attached.

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The 19-year old super bantamweight boxer, despite drawing his national challenge bout with Sadiq “Happy Boy” Adeleke, recorded the highest number of votes in the poll carried out by journalists at the event.

According to the show organisers, Flykite Productions, the announcement of his name as the winner of the prize was not made at the venue, as it is customary, following an advice against it by the security personnel on duty at the show.

“Policemen and officials of the private security firm at the event advised against announcing the best boxer immediately after the show because they considered it less than safe to do so. Opeyemi will be presented with his cheque at our Lagos office,” the statement said.

In 2018 at GOtv Boxing NextGen Search 4 held in Abeokuta, Opeyemi emerged best boxer. This was after catching the eyes of boxing coaches at GOtv Boxing NextGen Search 3 in 2017 in Ibadan, where he was deemed a year too young to turn professional, despite excelling at during the sparring sessions for young boxers. He returned the following year and excelled again.

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Friday 26 April 2019

BUSINESS DAY

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Friday 26 April 2019

BUSINESS DAY

37

news Buhari to visit UK on private appointment - Presidency Tony Ailemen, Abuja

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re s i d e n t Mu h a m madu Bihari will this weekend head for the United Kingdom on a private visit, according to a statement by Femi Adesina, special adviser to the President on Media and Publicity, on Thursday.

The President, who is scheduled to depart for Maiduguri, the Borno State capital, for another official visit today, is expected to depart Nigeria

for the UK there after.

The President was in Lagos on Wednesday where he commissioned a number of projects executed by the Lagos State government, and while in Borno he will commission developmental projects, especially in education, healthcare and roads.

“At the end of the visit, President Buhari will be proceeding to the UK on a private visit. He is expected to return to Nigeria on May 5, 2019,” the release stated.

Ambode gives appointees May 10 deadline for handover notes JOSHUA BASSEY

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overnor of Lagos State, Akinwunmi Ambode, has given his political appointees, including commissioners, special advisers and others up till May 10 to submit their handover notes.

According to a circular issued by Adesina Odeyemi, permanent secretary, Cabinet Office, all affected appointees are expected to prepare their handover notes in both hard and soft copies.

The circular has as reference number SSG/LS/P/C/2019/ Vol.1/01, was issued on April 23, 2019.

It is titled “Preparation for smooth transition and submission of handover notes - cabinet and non-cabinet ranks,” and aimed at facilitating a seamless transition.

The circular said the affected people were expected to prepare their individual

handover notes and submit same to the office of the permanent secretary, Cabinet Office in hard and soft copies.

The circular, however, directed that members of statutory boards, chief executive officers of parastatal organisations and governing council, whose tenure had not elapsed, were not affected by this directive.

“For the avoidance of doubt, the statutory boards under reference above are: Civil Service Commission, Judicial Service Commission, Independent Electoral Commission, House of Assembly Service Commission, Audit Service Commission, State Universal Basic Education Board, Health Service Commission, Primary Health Care Board and Lagos State Pension Commission, “Consequently, concerned individuals are enjoined to comply with the content of this circular. Accounting officers are to give this circular the adequate publicity it deserves,” it stated.

World Malaria Day: ‘Edo-HIP programme’ll sustain campaign against malaria’

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overnor Godwin Obaseki of Edo State says the revamp of the primary healthcare system through the Edo Healthcare Improvement Programme (Edo-HIP) will ensure gains recorded in the roll back malaria campaign are sustained.

The governor said this on the occasion of World Malaria Day, marked every April 25, by the World Health Organisation, to raise awareness on the need to form a strong alliance to fight malaria.

The governor said the state government had in recent years embarked on distribution of treated mosquito nets and a number of advocacy programmes to ensure that the people are properly equipped to fight malaria, noting that the revamp of the 18 PHCs would further complement government’s effort to build local capacity and provide infrastructure to combat

the disease.

According to Obaseki, “As we commemorate the World Malaria Day, I assure Edo residents of our determination to bring quality primary healthcare closer to their doorsteps with the revamp of 20 Primary Healthcare Centres (PHCs), in the first instance. With this, every local government will be equipped with the right manpower, equipment and the right environment to sustain the campaign against malaria and other infectious diseases.”

He said the theme of this year’s celebration, ‘Zero Malaria Starts With Me’ is apt as it stresses the role of the community and other actors in combating malaria, noting, “The Edo-HIP provides for a variety of intervention programmes that ensure the PHCs respond to the needs of local communities.

This provides the necessary structures to sustain the fight against malaria.” www.businessday.ng

UBA, Access Bank join Zenith, FBNH in N5trn+ asset club … Access remains high with asset over N6trn IFEANYI JOHN

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irst they were two, now they are four. In the first quarter of the year, UBA and Access Bank joined Zenith Bank and First Bank of Nigeria Holdings (FBNH) in the elite club of banks with total asset above N5 trillion.

While Zenith and FBNH became the first Nigerian banks to enter this elite club in 2017, they were joined by two new entrants in Q1 after the completion of the Access-Diamond merger helped propel Access Bank to an asset base of N6.4 trillion and an expansion in deposit mobilisation helped push UBA to an asset base of N5.1 trillion in Q1 2019 from N4.8 trillion at year-end 2018.

The ranking of largest banks in Nigeria has now been changed based on the latest releases, showing as expected that Ac-

cess Bank (Assets: N6.4trn) has now become the largest bank in Nigeria by asset, followed by Zenith Bank (N5.8trn), FBNH (N5.5trn), UBA (N5.1trn) and GTBank (N3.5trn).

The current ranking is based on the off chance that FBNH fails to grow its total assets, as the company’s first quarter result is expected to be released soon.

Based on its 2018 performance, Nigeria’s elephant bank remains firmly at third position with a balance sheet size of N5.56 trillion as of year-end 2018.

Today, the only member of the Tier 1 bank that has an asset base below N5 trillion is GTBank.

The bank posted asset growth of around N270 billion in the first quarter this year, moving from N3.28 trillion in December 2018 to N3.55 trillion by end of Q1 2019.

Although GTBank is the smallest Tier 1 bank, for years it

has consistently being the most efficient bank in Nigeria in terms of return on assets, return on equity and cost to income ratio, which has helped the bank to be the second most profitable bank in the country behind Zenith Bank, despite its smaller size.

GTBank is currently N1.44 trillion short of joining the N5 trillion club and in the last conference call the bank spoke about a possible push for more retail customers, which will in turn lead to growth in size and thus further improve profitability.

UBA, a surprise entrant to the elite group, experienced a growth in deposits from customers by around N190 billion, which helped fund a growth of around N154.67 billion in cash and bank balances and N122.49 billion increase in financial assets.

Tochukwu Okafor, a financial analyst, told BusinessDay, “The strong performance in banks is

premised on the increase in financial deepening in the country in the last few years. Also, banks have enjoyed rapid earnings expansion in recent times thanks to double digit treasury yields they can enjoy at zero risk in recent times.”

Investors have good reasons to believe profitability and size are related. Increasing bank size can increase bank profitability by allowing banks to realise economies of scale. For example, increasing size allows banks to spread fixed costs over a greater asset base, thereby reducing their average costs.

Increasing banks’ asset size can also reduce risk by diversifying operations across product lines, sectors, and regions. Lower risk can promote profitability directly by reducing losses or indirectly by making liability holders willing to accept lower returns, thereby reducing banks’ funding costs.

L-R: Abubakar Suleiman, chief executive officer; Asue Ighodalo, chairman, and Justina Lewa, company secretary, all of Sterling Bank plc, at the 57th annual general meeting of the bank in Lagos, yesterday.

Xiaomi deepens smartphone competition with 48MP camera Jumoke Akiyode-Lawanson

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ith deepening smartphone penetration, Nigeria has seen a number of original equipment manufacturers (OEMs) scramble for market share as they try to outdo one another by embedding artificial intelligence, biometrics readers and other technological features, including the latest introduction of the first 48MP (megapixel) camera on the new Redmi Note 7 by Xiaomi.

Partnering Jumia, Xiaomi Global, a technology company with smartphones and smart hardware connected by an IoT platform at its core, announced that the Redmi Note 7, the latest smartphone in the Redmi Note series, would be available for sale in Nigeria from April 29, 2019.

Redmi Note 7 continues the series’ tradition of featuring a large display and long battery life, and pushes smartphone photography to a new level. Together with Redmi Note 7, Xiaomi also launched Redmi 7, the latest smartphone in

the new Redmi brand.

Nigeria is home to other smartphone giants like Apple, Samsung, Huawei, Tecno, Infinix, LG, HTC, Nokia Lumia, Sony and Innjoo, Lenovo, among others. Xiaomi’s coming will further create job opportunities for Nigeria’s unemployed youth population.

Analysts say the smart phone companies are attracted by Nigeria’s demography of mainly young people as well as technology gaps in the country and huge market size.

Speaking at the launch in Lagos on Wednesday, Kabiru Ibrahim Gaya, former governor of Kano State, said, “Coming into Nigeria with such innovation is a smart move by Xiaomi and in no time, the company’s name will be on the lips of every Nigerian.

“With ease of doing business as a result of the Presidential Enabling Business Environment Council (PEBEC), which was established by President Muhammadu Buhari in July 2016, with a mandate to sustainably and progressively make Nigeria an easier place to do business, I have

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no doubt that Xiaomi will succeed and expand in Nigeria.

“I have used the new smartphone and can confirm that it is one of the best available in this market today,” Gaya said.

Redmi Note 7 offers a flagshiplevel experience with a powerful 48MP rear camera and a gorgeous dual-tone gradient glass design.

“Redmi Note is one of Xiaomi’s most popular series, Redmi Note 7 truly illustrates our philosophy of innovation from everyone because of its amazing performance and attractive price. Partnering with Jumia, we’re very excited today to bring Redmi Note 7 and Redmi 7 to our customers in Nigeria.” Said Steven Wang, head of expansion marketing, Xiaomi Global.

Also speaking, Juliet Anammah, CEO, Jumia Nigeria said, “the launch of Redmi Note 7 is coming at a time when Nigeria is mentioned among seven countries that would contribute 700 million new mobile subscribers to hit the 6 billion mobile subscribers mark in the world by 2025. Availability of honest price point smartphones @Businessdayng

such as Xiaomi will deepen smartphone penetration in the country and help the country in meeting its 4 percent quota of the 700 million new global mobile subscribers, as predicted by GSMA Intelligence.”

Redmi Note 7 is built to be reliable, designed to last so users can use it worry-free for longer. It features Gorilla Glass 5 on the front and back, making it less vulnerable to damage from drops. Corners on the chassis are also reinforced, further improving durability. In addition, buttons and ports come with watertight seals to lessen the impact of accidental splashes that may occur in everyday use.

It carries on the Redmi tradition of excellent battery life with its large 4000mAh battery, which will last over a day for almost all users.

Recharge via the USB Type-C port, and enjoy shorter charging times thanks to support for Qualcomm® Quick Charge™ 4. Redmi Note 7 also includes an IR blaster capable of controlling numerous home appliances, such as televisions or air conditioners. In addition, it comes with Smart PA audio for louder and higher-quality sound.

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Thursday 25 April 2019

BUSINESS DAY

NEWS

Nigerian economy loses as FG fails to tap potential in shipping business - experts AMAKA ANAGOR-EWUZIE

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nability of Federal Government to harness the potential in the nation’s shipping business visà-vis the maritime sector has resulted to huge economic loss for Nigeria, maritime experts say.

According to them, shipping business has the potential to create thousands of jobs and generate as much as N7 trillion in revenue for government.

Speaking with newsmen on the sideline of a focus group meeting organised by the Nigerian Chamber of Shipping (NCS) in Lagos on Wednesday, Olisa Agbakoba, former president of Nigerian Bar Association (NBA), said the Cabotage law, if fully implemented, could generate over N4 trillion annually for the Federal Government.

“If maritime is not even mentioned at government Economic Recovery and Growth Plan (ERGP), it is not mentioned in vision 2020, then, you can imagine. The problem with shipping is that it is invisible. It is not like a bank that you will see the building,” Agbakoba said.

Nigeria is yet to have people in government who will

understand that the maritime sector is bleeding, he said, and faulted Nigeria’s trade policy, which allowed international oil companies (IOCs) to dominate shipping with no Nigerian company involved in crude oil affreightment.

According to Agbakoba, government is only interested in crude oil sales without caring about other businesses such as shipping, insurance, banking and law, among others, that are derivable from the deal.

“We need to have a trade policy that takes into account economic nationalism. This is why we are fighting for Free on Board (FoB) crude oil trade policy to be scrapped for Cost Insurance and Freight (CIS),” he suggested.

Mfon Usoro, a former director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA), who expressed concern over the non-representation of shipping in the ERGP, said those industries indentified as key sectors of Nigerian economy depend on shipping to grow.

Usoro called on government to adopt an integrated economic development plan and put aside sector specific development plan, if Nigerian economy must grow.

ICAN commits to safeguarding profession from adulteration KELECHI EWUZIE

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he Institute of Chartered Accountant of Nigeria (ICAN) says it remains resolute to safeguard the profession from adulteration by quacks through standards and professionalism in training and practice.

The body observes that as a major stakeholder in the country’s economy, it will continue to connect with other actors through constructive engagements, adding that resolutions from such engagements are communicated to relevant agencies to shape the Nigeria of our dream.

Razak Jaiyeola, the 54th president of ICAN in his address at the 17th Conferment of Fellowship Status ceremony in Lagos, observes that by giving expert solution to national problems, the body safeguard not only the interests of Nigeria, but that of its members, thereby facilitating the creation of an enabling business environment for the over 46,000 members of the Institute.

Jaiyeola opines that the accounting profession, like other disciplines, is witnessing technological disruptions at an unprecedented speed and spate, which are changing the fundamentals on which our activities once

relied.

He commended the House of Representatives for its recent bold step at throwing out the Bill for an Act to establish the Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN).

According to Jaiyeola, “The laudable step of the House of Representatives is not a victory for ICAN, but for the country in its entirety.”

He further said the conferment of fellow to the recipient, which is the highest status in ICAN, is in recognition of their adherence to good ethical conduct and professionalism, adding that the awardees have been examined by the Institute and found worthy to be conferred.

“The recipients of today’s Award are either professional accountants of ICAN who have been in practice for a minimum of five (5) years or members who are not in practice but have become chartered for a minimum of ten (10) years.

“It is therefore saying the obvious that the Award Recipients have garnered over the years post qualification experiences, knowledge and skills that stand them in good stead to be deserving of this most coveted and highest professional status of the accounting field,” he said.

Bankers’ Committee educates over 62,000 students on financial literacy

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he Bankers’ Committee says it has educated over 62,000 students on financial literacy, as part of activities to mark the 2019 Financial Literacy Day and Global Money Week.

The theme for this year’s Financial Literacy Day and Global Money Week was “Learn. Save.

Earn”. Financial Literacy Day is a day set aside by the Central Bank of Nigeria during the Global Money Week to focus on increasing the level of awareness among the youth on the importance of earning, managing and saving money in order to have a secure future.

“Bank CEOs and their employees visited schools across the country to tutor and mentor students and youths on basic money management skills. A total of 488 schools in 193 local governments were visited nationwide.

Each financial institution in the country selected five schools across the six geo-political areas where their employees taught and engaged students during the campaign,” the Committee said.

Speaking on the initiative in a statement, Emeka Emuwa,

NNPC/NPDC to boost cooking gas consumption ... set to unveil 330 tons storage facility Olusola Bello

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R-L: Asue Ighodalo, chairman, Nigerian Economic Summit Group; Laoye Jaiyeola, CEO, NESG, and Onyeche Tifase, vicechairman, at the 24th annual general meeting of the thinktank and policy advocacy organisation in Lagos.

Government must create favourable tax policies - Elumelu ENDURANCE OKAFOR

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hairman, Heirs Holdings and founder, Tony Elumelu Foundation, Tony Elumelu, has called for far reaching tax reforms and for the National Assembly to urgently pass the Executive Tax bill into law.

Elumelu made this statement as he delivered the keynote address at the 21st Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), titled, “National Development: Unlocking the Potentials of Taxation”.

Speaking on the challenges that stifle small businesses, Elumelu quoted a young en-

trepreneur beneficiary of the Tony Elumelu Foundation, “The average business owner in Nigeria is a local government authority on his own because he caters for his own electricity with generators, he builds his own borehole, handles his own waste disposal, and the government can make his life easier by creating favourable tax policies that support SMEs.” Elumelu also lamented the plight of SMEs at the mercy of the tax system, revealing, “The average number of taxes businesses pay in Nigeria is 48, compared to 33 in other Sub-Saharan countries. In Hong Kong, it’s just 3. Multiple taxation remains a significant burden for www.businessday.ng

SMEs and corporates operating in the country.

“With a population of close to 200 million people in Nigeria, we have only 75,000 registered SMEs in the country. No one needs to tell us that people are avoiding tax or refusing to be a part of the system.”

With high cost of compliance, complex and costly business registration processes, many SMEs are choosing to remain informal, which in turn results in a low tax base and low tax contribution to GDP. “Nigeria’s tax to GDP ratio is only circa 6%, compared to far smaller populations like Rwanda at 16%. Imagine the economic transformation we

can achieve as a country if we can move our Tax to GDP ratio by 10%. We will raise an additional $40billion in government revenue - identical to the sum of our foreign reserves,” he said.

But it won’t be easy, Elumelu advised government to educate, inform and raise tax awareness, “Government should drive mass mobilisation of citizens - let citizens know why they need to pay taxes and give them the assurance that their tax will be properly utilised.” In addition he stated that, “government should employ the use of smart tax incentives to attract and incentivise local and foreign investors.”

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chairman, Financial Literacy and Public Enlightenment SubCommittee (FLPE), said, “The importance of financial education for young Nigerians cannot be overemphasised. We are proud to see the financial institutions in Nigeria take up the task of educating Nigeria’s youth on financial literacy, and increasing awareness on the importance of earning, managing and saving money in order to have a secure future.

“We are pleased with the students’ response and this will encourage us to continue developing programmes and activities that will further empower them.”

Financial inclusion is a constituent pillar of the Bankers’ Committee mandate, making initiatives like this critical to the goal of increasing the number of financially included citizens in the country. The initiative, which impacted over 29,000 boys and over 32,000 girls, is aimed squarely at ensuring the next generation is empowered with important financial awareness and literacy, needed to enhance economic prosperity and continue to improve poverty reduction.

s part of the efforts to increase market penetration of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, and also reduced deforestation, the Nigerian National Petroleum Corporation NNPC (NNPC) has taken a stride by putting in place a 330-ton storage facility that will allow more off takers to have access to the commodity across the country.

The facility, which would soon be unveiled according to Ndu Ughamadu, general manager, group public affairs, NNPC, has facility for storing Propane and dispensing same. It is an extension of the Integrated Gas Handling Facility (IGHF) plant, which has 100 million standard cubic feet of gas per day (MMscfg/d) and 260 barrels per day Condensate from the plant.

When it is unveiled, it will be the largest LPG storage facility in Nigeria, which is located at Oredo, Benin City.

Yusuf Matashi, managing director, Nigerian Petroleum Development Company( NPDC), subsidiary of NNPC that oversees the facility, said the IGHF would be a game changer for the National Oil Company, as both facilities (IGHF & LPG bay) when commissioned, would be a huge revenue stream for the Federal Government.

Matashi said before the end of 2019, the NNPC/NPDC would be producing 40 percent of the nation’s LPG requirements, adding that the facility was centrally positioned to supply LPG to Lagos, South-South; South-East and to the North in @Businessdayng

order to grow its consumption across the country.

He noted that currently NPDC was the single largest supplier of gas to the domestic market with about 90 percent of gas supply targeted at power generation to drive the nation’s economy positively.

“We are paying greater focus on our 100 per cent assets production. NPDC assets will deliver a lot in terms of meeting its (crude oil and gas) volume targets. We currently contribute 10 per cent to daily national production and by end of 2019, the company is looking at 15 percent contribution to daily national production,” he said.

He posited that NPDC’s production outlook for 2019/2020 was on the bright side, stressing that the company was aggressively pursuing its drilling and field development programmes as approved by the management of NNPC. The NPDC helmsman revealed that the company had oil reserve base of 3.6billion barrels and gas reserve of 15 trillion cubic feet from its involvement in 29 concessions - 22 Oil Mining Leases (OMLs) and 7 Oil Prospecting Licenses (OPLs).

He explained that the flagship Upstream subsidiary of NNPC would continue to be a leading exploration and production company of choice going forward.

The NPDC boss maintained cordial relations with regulatory agencies, such as the Department of Petroleum Resources (DPR), adding that the company had maintained its remittance of royalties and Petroleum Profit Tax to the Federal Inland Revenue Service (FIRS).

Friday 26 April 2019

FT

BUSINESS DAY

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FINANCIAL TIMES

World Business Newspaper

Biden joins crowded Democratic field with White House bid

Ex vice-president faces questions over his age, gaffes and behaviour to women DEMETRI SEVASTOPULO

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oe Biden, the former US vicepresident, has launched his White House campaign, becoming the 20th contender in a record field of Democrats hoping to topple Donald Trump in the 2020 election.

Mr Biden ended months of speculation on Thursday by announcing in a video that he was joining the race to become the Democratic presidential nominee. Instead of invoking his working-class background, Mr Biden took direct aim at Mr Trump and the rhetoric that critics say the president uses to inflame racial tensions.

The former six-term Delaware senator highlighted Mr Trump’s reaction to the rally of white supremacists at Charlottesville in 2017, criticising the president’s statement that there were “very fine people on both sides”.

“With those words, the president of the United States assigned a moral equivalence between those that spread hate and those who stand against it,” said Mr Biden, who added that “the core values of this nation . . . is at stake. That’s why today I’m announcing my candidacy for president of the United States.”

“If we give Donald Trump eight years in the White House, he will forever and fundamentally alter the character of this nation . . . And I cannot stand by and watch that happen.”

Mr Biden, who has twice failed to win his party’s presidential nomination, joins a Democratic field that has eclipsed the record 17 Republicans who ran for president in 2016

and may see more entrants.

Mr Trump mockingly welcomed “Sleepy Joe” to the race. “I only hope you have the intelligence, long in doubt, to wage a successful primary campaign. It will be nasty — you will be dealing with people who truly have some very sick & demented ideas,” he tweeted. “But if you make it, I will see you at the Starting Gate!”

Mr Biden enters the race with the longest CV of any contender and strong name recognition. He leads Bernie Sanders, his nearest rival, with support from 27 per cent of voters compared with 20 per cent for the Vermont senator, in the latest poll from Monmouth. Kamala Harris, the California senator, and Pete Buttigieg, the Indiana mayor, are each at 8 per cent, followed by Massachusetts senator Elizabeth Warren with 6 per cent and former El Paso congressman Beto O’Rourke at 4 per cent.

Mr Biden’s fans say the IrishAmerican son of a Pennsylvania steelworker is the ideal person to challenge the president, pointing out that his humble background and strong union support would help the Democrats win back some of the working-class white voters who left the party to support Mr Trump in 2016. That would help in rust-belt states, such as Michigan, Wisconsin and Pennsylvania, which helped Mr Trump beat Hillary Clinton.

“To win the White House back in 2020, we need the candidate who gives us the best chance to win back Pennsylvania. I believe that’s Joe Biden,” said Brendan Boyle, a congressman from Philadelphia.

Mr Biden faces a diverse group of

Elon Musk signals Tesla cash call after burning through $1.5bn

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lon Musk is finally ready to bow to repeated calls to raise more outside capital for Tesla after the electric car company disclosed it had burnt through $1.5bn in the first three months of the year.

The Tesla chief executive revealed his change of heart on an earnings call with analysts on Wednesday, though he did not say how much the company would raise or when. “I think that there’s merit to raising capital at this point,” he said.

The reversal came after Tesla disclosed it had plunged back into the red in the first quarter of the year. It struggled with the logistics of delivering its Model 3 to overseas customers for the first time and also experienced a slump in sales of its older S and X models.

Mr Musk’s earlier insistence that he would not need to raise more money had been one of the main points of tension between the Tesla boss and Wall Street over the past year. The lack of a bigger financial cushion at a time when the company is racing to expand around the world has needlessly left it close to the brink

and questions about his behaviour around women.

Mr Biden has already been forced to answer questions after several women accused him of touching them in ways that made them uncomfortable. Supporters say he has always been physical with people — part of his “Uncle Joe” charm — but others counter that he needs to understand that a way of behaving that might have been accepted by some in the past is unacceptable in the #MeToo era.

Ms Warren has said that she believed the first accuser, a woman named Lucy Flores, and that “Joe Biden needs to give an answer”.

The former vice-president said he recognised that times had changed and he had to change his behaviour. But he then sparked anger by later joking about the allegations in a speech to electricians, saying he had received “permission” to hug the union leader who had introduced him.

Mr Biden may also face a fundraising challenge. He will join the race with no cash at a time when many rivals have already reeled in large hauls. Mr Sanders led the field in the first quarter with $18m, followed by Ms Harris who raised $12m.

Mr O’Rourke was third, securing $9.4m in just two weeks.

Integration risks, implementation costs and capital requirements make deal too complex

of financial crisis, according to Mr Musk’s critics.

He kept the doubters at bay during 2018, producing enough cash from the company’s operations to completely fund its capital spending needs.

But Tesla’s cash reserves fell to just under $2.2bn at the end of March, their lowest level for three years, after it paid off $920m of convertible debt and suffered a setback in its operations.

Mr Musk justified his long resistance to capital-raising as a way to instil more financial discipline and force the company to cut costs. That had been successful, he said on Wednesday, making it fair to return now to raising cash again. “This is probably about the right timing,” he said.

Despite signs that he is getting read to tap the markets, Mr Musk again showed that he still has little love for Wall Street. Asked about the pressure that comes from running a public company, he said: “I’m going to surprise you, I wish we were private.”

Referring to the frequent bouts of controversy around the company, which have led to a personal war with short-sellers, he said: “It’s a bit of a distraction at times, but I’m not sure what to do about it.” www.businessday.ng

Democrats at a time when some say the party should not pick an older white man. They include a record six women, three African-Americans, a Hispanic and Asian-American, and the first openly gay contender — Mr Buttigieg, who is 39 years younger than Mr Biden.

Critics also say Mr Biden is out of step with younger, more progressive Democrats who want to move away from the centrist positions he has espoused. Even some friends who think he has the experience and gravitas to beat Mr Trump worry that he will struggle to win the nomination for a range of reasons — including his age, his propensity for gaffes

Deutsche Bank-Commerzbank merger talks collapse

Carmaker indicates readiness to raise outside capital after net loss of $702m in first quarter RICHARD WATERS

Joe Biden in the video announcing he is running for the White House

OLAF STORBECK , GUY CHAZAN AND STEPHEN MORRIS

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eutsche Bank and Commerzbank have abandoned their merger talks, bowing to shareholder concerns and employee resistance in a move that could open the door for foreign rivals to acquire the smaller of the Frankfurt-based rivals.

Germany’s two biggest listed lenders said there were too many hurdles to justify pursuing a complex deal that would have formed the eurozone’s second-largest lender with €1.8tn in assets and 140,000 employees.

The decision leaves the duo seeking strategic alternatives to cut costs and stem revenue losses, while grappling with historically low interest rates, fierce domestic competition and high funding costs. Shares in Deutsche Bank were down 1.5 per cent, while Commerzbank shares fell 2.4 per cent.

Deutsche Bank said a “a combination with Commerzbank would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration”.

It added that it “will continue to review all alternatives to improve

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long-term profitability and shareholder returns”.

The idea of a merger had been backed by the German government.

Once the six weeks of talks were abandoned on Thursday, politicians rounded on finance minister Olaf Scholz, who has repeatedly called for the creation of a Germany-based European banking champion.

Mr Scholz said in a statement that German industrial companies needed competitive banks “that can accompany them all over the world,” while adding that a merger would “only make sense if they pay off from a business point of view and lead to a durable business model”.

However, Hans Michelbach, a conservative MP from Angela Merkel’s CDU/CSU group, welcomed the breakdown of talks, saying they had been “politically driven” by Mr Scholz and his deputy, the former Goldman Sachs banker Jörg Kukies.

“Economic common sense has triumphed over the flowery political dreams of creating national champions,” said Mr Michelbach, adding that the end of the talks should help Germany to steer away from the “false path” of state planning. “Size doesn’t necessarily mean strength, and the state is not the best entre@Businessdayng

preneur,” he said.

Florian Toncar, an MP for the probusiness FDP party, said Mr Scholz had “caused significant damage through his unprofessional conduct ahead of the merger talks”. Lisa Paus, the Greens’ finance expert, said Mr Scholz had “messed the whole debate up”.

Deutsche Bank also pre-released some first-quarter results, which were mostly ahead of analysts expectations. It said pre-tax profits were about €290m, falling a third year-onyear, and net profits fell two-thirds to about €200m.

Group revenues fell 8 per cent to €6.4bn, while net revenue at its corporate and investment bank was down 14 per cent at €3.3bn. Adjusted costs fell 7 per cent to about €5.9bn.

Alexandra Annecke, portfolio manager at Union Investment, which has stakes in both banks, said: “The problems of a merger have recently become more and more obvious, so the failure is not surprising.”

She said “Deutsche Bank now needs a plan on how to sustainably increase profitability, especially with regard to the investment bank,” while warning that its target for a return on tangible equity (ROTE) of more than 4 per cent this year was “becoming more and more remote”.

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Friday 26 April 2019

NATIONAL NEWS

Iran left with few choices as Trump steps up pressure

US president’s decision to revoke oil sanctions waivers could push Tehran to war EDWARD LUCE

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ne by one US president Donald Trump is closing the exits for Iran’s regime. Next week Washington will revoke waivers to Iran’s five remaining oil export markets. Earlier this month Mr Trump declared Iran’s Revolutionary Guard a terrorist organisation. In the coming weeks the US will unveil more sanctions on top of the barrage it imposed last year after quitting the Iran nuclear deal.

As non-declarations of war go, Mr Trump’s gauntlet comes very close to the edge. There is little — barring internal regime change — that Iran can do to comply.

The question is why. Mr Trump has largely fulfilled his vow to quit America’s “endless wars” and not to start any new ones. He plans to pull out of Afghanistan and is withdrawing from Syria. Another war in the Middle East — particularly with Iran, whose military clout puts Saddam Hussein’s Iraq into the shade — would blow Mr Trump’s vow to pieces. The last thing Mr Trump’s voters want is a new war of choice. Yet he seems to be goading Iran into precisely that.

Equally puzzling is that it undercuts Mr Trump’s other foreign policy goals. The largest of these is to conclude a trade deal with China in the coming weeks. Mr Trump has said he will impose secondary sanctions on

China if it continues to import Iranian oil. This will jeopardise prospects for a US-China trade deal. Moreover, it would reinforce China’s view that the US is never to be trusted. Iran remains in compliance with the 2015 nuclear deal to which China is a signatory. No one else followed America’s unilateral withdrawal.

Mr Trump would also hit Japan and South Korea with sanctions, both energy-importing US allies. The same applies to Turkey, whose help Mr Trump needs to complete America’s extrication from Syria. The fifth country, India, is in the midst of a general election. It imports more oil from Iran than the others. India serves as a natural American bulwark against a rising China. Punishment such as this might prompt a rethink in New Delhi.

Moreover, Mr Trump’s motives do not seem to be his own. At home the Iran war party is led by John Bolton, national security adviser, and Mike Pompeo, secretary of state.

It is no coincidence that Mr Trump pulled out of the deal a year ago shortly after both men had started their jobs. Mr Bolton has long agitated to overthrow Iran’s regime. Last year Mr Pompeo issued a list of 12 demands Iran must meet to ease American pressure. It reads more like a charter for surrender. These included closing Iran’s missile programme and opening up all its military sites to inspectors.

Central banks are finally taking up the climate change challenge Slowly, they are recognising that global warming is a financial stability risk GILLIAN TETT

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t the end of March, San Francisco’s Federal Reserve board issued an “economics letter” which argued that “in the coming decades, climate change . . . will have increasingly important effects on the US economy” that, it said, are “relevant considerations” for the central bank.

Nothing odd about that, you might think. If you live in California it is almost impossible to ignore climate issues given the devastating impact of recent wildfires (among other climate shocks). But this bland statement of the obvious conceals a startling tale of change which investors cannot afford to ignore — irrespective of their views on climate science.

Until four years ago, central bankers almost never talked about climate change. But in September 2015 Mark Carney, governor of the Bank of England, created a frisson among the tribe of (mostly) faceless financial bureaucrats by declaring that climate change had become a financial stability risk.

Some of his counterparts initially dismissed this as hippy posturing, or mission creep. But two years ago the Bank of England joined forces with the Banque de France and the People’s Bank of China (yes, really) to create the so-called Network for Greening the Financial System.

This only had eight members at launch. But last week it announced that its ranks have swelled to three dozen central banks and regulators, covering half of global gross domestic product and two-thirds of the global systemically important banks and insurers.

Indeed, the only notable holdouts now are Brazil and the US. And while nobody expects the Fed to join soon, given the Trump administration’s stance on climate issues, a rebellion is bubbling among some bureaucrats at the US central bank. Hence that blog from the San Francisco Fed, published just before the NGFS meeting in a not-so-subtle sign of support — a demonstration of the power of America’s federal structure.

Some cynics might dismiss this as mere posturing. That is understandable. When the NGFS met last week in Paris it issued a report replete with numbers explaining why they consider the climate a financial stability risk.

Extinction Rebellion: what pushes people to drastic action on climate change?

It noted, for example, that “worldwide economic costs from natural disasters have exceeded the 30-year average of $140bn per annum in seven of the last 10 years”, while “studies estimate that the financial value at risk could be up to 17 per cent [of global assets] depending on the mean average temperature rise”. www.businessday.ng

Founder and chief executive Ren Zhengfei holds veto power over important decisions in Huawei © AFP

Huawei says employees control company through ‘virtual shares’

Chinese telecoms group explains structure as it denies it is government-funded YUAN YANG

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hina’s biggest telecoms equipment provider Huawei has said a trade union that holds a majority stake in the company is merely a legal convenience and the group is really controlled by its employees.

In a press conference on Thursday responding to speculation about Chinese government control of the group, which the US has accused of spying, Huawei said about half of its 180,000odd employees own “virtual shares” that pay dividends and give them voting rights at company-wide elections.

But because Chinese laws restrict the number of shareholders in a business, Huawei’s holding company uses a structure that places 99 per cent of its shares under the control of a “Trade Union Committee” rather than the employees themselves.

The TUC ownership had led academics to question whether Huawei was indirectly government-controlled, because all official trade unions in China are supervised by the All-China Federation of Trade Unions, a Communist party body.

Speaking to the media on Thursday, Jiang Xisheng, board secretary, said Huawei had to pay a fee every year to the Shenzhen municipal trade union, which conducts an inspection of Huawei’s trade union and renews its licence. But otherwise the union served little other purpose except to organise badminton tourna-

ments and hikes.

“We don’t have any other relationships with them [the Shenzhen municipal trade union]. We don’t need to report our business operations. They won’t come to ask for anything either,” said Mr Jiang.

The heightened international interest in Huawei’s ownership structure follows US efforts to block the equipment provider from participating in 5G networks around the world because of concerns the Chinese government might use these for espionage.

The Times of the UK reported this week that the CIA had told spy chiefs that Huawei has taken money from military and state security sources, citing an unnamed UK source.

Mr Jiang denied allegations that the company had received military funding, saying: “Most of what the US government says, as we all know, is not true.”

“There is no government capital in Huawei,” said Mr Jiang.

Asked what would happen if Chinese security bodies offered funds, he replied: “Even if they offered, we wouldn’t want it, because you never get something without an obligation attached.”

The TUC was named as a majority shareholder because this was a common way of structuring employee ownership in China, said Mr Jiang.

Huawei’s charter cedes control of the company to the Representatives’ Committee, a 115-person body that is mostly elected by the 86,514 employees who hold virtual shares.

However, the involvement of Huawei’s employees in the multistep selection process is limited to selecting 101 representatives from a list of 109, which, in turn, is selected by departmental nomination teams. Founder Ren Zhengfei has spoken of his veto power over the company, although Mr Jiang clarified this was limited to major decisions only.

The charter is kept in a glass case in a room designed for the purpose and not allowed to be removed, raising the question of how employees can read it and exercise oversight.

The employees’ shares are “virtual limited shares”, which are “not in any legal sense stocks, equity or shares”, Huawei’s charter says. They give the employees dividends and one vote per share, meaning senior executives such as Mr Ren have more votes than recent joiners.

“It’s a very normal structure and an outcome of state-owned enterprise reforms in the 1990s and 2000s,” said Sun Jun, partner at Allbright Law Offices in Jinan, referring to government policies that allowed companies to privatise and be owned by their employees rather than by the state.

The company’s registry shows that as of early 2019, Mr Ren held 33.9m of the TUC’s total of 22.3bn virtual shares. In addition, he also holds a 1 per cent share directly in the holding company. His daughter Meng Wanzhou, the chief financial officer currently awaiting extradition from Canada to the US, held 57.4m virtual shares.

Argentine assets hammered as political angst rises Currency and bonds keep falling as Mauricio Macri struggles to contain economic malaise MAMTA BADKAR AND COLBY SMITH

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rgentine assets are tumbling for a second day, amid mounting political worries about the future of President Mauricio Macri’s government as it struggles to grapple with sky-high inflation and slowing growth.

The peso dropped more than 5 per cent on Thursday to 46.40 per dollar. It is the worst performing major emerging market currency this year, down 18.7 per cent.

Meanwhile, the yield on the three-year government bond due in 2021 jumped 2.22 percentage points (or 222 basis points) to nearly 20 per cent. The 10-year

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rose another 44 basis points to 11.35 per cent. Yields move inversely to price.

The five-year spread rose to 1,241 basis points on Tuesday, from around 800 basis points at the start of the year, meaning it now costs $12.41 a year to insure every $100 of debt. It is the highest level since Mr Macri took office in 2015.

On Wednesday, Argentina’s debt, stocks and currency suffered outsized falls as former leftist president Cristina Fernández de Kirchner continued to gain traction in polls ahead of the presidential election in October — even though she has yet to confirm her candidacy.

The uncertainty was further @Businessdayng

stoked by a poll released by local company Insomnia earlier this week that showed Ms Fernandez would beat Mr Macri in a second round run-off.

“Needless to say that markets see the outcome of the elections as binary, with a return of the old administration potentially amounting to an eventual default,” analysts from Citi said.

Win Thin at Brown Brothers Harriman said: “For the most part the government was doing the right thing, but it clearly hasn’t been enough.” A broad rise in the US dollar has heaped even more pressure on the currency, he added.

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Invesco chief counts the cost of uncertainty over Brexit Atlanta-based money manager hopes for turnround in fortunes for its UK business RICHARD HENDERSON

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ne of the world’s biggest money managers has revealed the damage wrought by Britain’s protracted negotiations to exit the EU, saying the outlook should improve only when the terms of Brexit become clearer.

Invesco, which manages $955bn in assets from headquarters in Atlanta, suffered big outflows from its UK business in the first quarter, when UK investors accounted for $3.9bn of the $5.4bn drained globally from Invesco portfolios for the period. In the fourth quarter flows from UK portfolios came to $3.3bn of $20bn globally, as a bout of market turmoil prompted investors around the world to shift money to safer assets.

“Brexit is absolutely a headwind,” Martin Flanagan said during Invesco’s first-quarter earnings call, adding that flows into UK funds “dropped like a rock” last year. A clearer picture on a Brexit deal should encourage investors to put money back into UK and European share portfolios run by Invesco, Mr Flanagan said.

“I think as soon as there’s clarity, you’re going to see quite a bit of change,” he said. “I don’t think anybody has a real answer to the question on when that’s going to happen.”

The UK and Europe last month agreed to push back the date by which Britain would formally leave the EU regardless of whether an exit deal is struck. UK prime minister Theresa May now has until October 31 to gain support

for a plan after successive deals have failed to gain parliamentary support.

The effects of Brexit come as Invesco puts the finishing touches on its acquisition of OppenheimerFunds. The deal will become final on May 24, catapulting Invesco beyond $1.2tn of assets and making it the 13th large fund group in the world. The tie-up will also deliver $475m in cost savings for the combined firm.

Invesco’s $0.56 earnings per share for the first quarter beat analyst expectations of $0.53, nudging the company’s stock 2 per cent higher by noon in New York.

The shares have outperformed the S&P 500 index of asset managers by 15 per cent on a relative basis this year.

Daniel Fannon, an equity analyst with Jefferies, said the stronger-than-expected earnings were driven by lower expenses as revenues came in below expectations.

Mr Flanagan noted recent regulatory approval for exchange traded funds that allow fund managers to delay revealing the stocks they invest in as a “very good development”. The change is expected to prompt fund managers to launch more of their “active” portfolios — which are run by professionals and garner higher fees compared with “passive” portfolios that track common indices.

“The other reality is there will be a very long tail before that becomes successful in the marketplace,” Mr Flanagan said. “It’s good news but I don’t think you’ll see a rapid change in that area any time soon.”

The engineering behind SoftBank’s Wirecard bet

Invesco chief Martin Flanagan © Bloomberg

UK launches high-level probe into unprecedented Huawei leak SEBASTIAN PAYNE AND JAMES BLITZ

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he head of the UK’s civil service has launched an official investigation into the unprecedented leak of senior ministers’ discussions about whether to allow Huawei to build the country’s 5G networks.

In a stern letter to members of the UK’s National Security Council on Wednesday, Mark Sedwill requested co-operation from ministers, civil service officials and special advisers with access to details of the deliberations about the Chinese telecoms group.

The NSC — which is chaired by Theresa May and brings together cabinet ministers and senior officials involved in foreign and defence policy — agreed on Tuesday that Huawei could build some parts of Britain’s 5G networks.

That initial decision, which has yet to be officially announced and came despite a vigorous US lobby-

ing campaign about the security implications of allowing Huawei such access, was leaked within hours.

Sir Mark — who doubles as the UK’s national security adviser as secretary to the NSC — is deeply unhappy about the leak. He is one of a number of leading Whitehall figures who have expressed their displeasure that the 5G deliberations were made public before a final decision was taken.

Foreign secretary Jeremy Hunt, also described the disclosure as “utterly appalling”. At a Westminster press lunch, he firmly denied being the source of the leak, which he said would prove a “really bad thing for decision-making in government”.

Defence secretary Gavin Williamson, who also sits on the NSC, similarly denied being the source.

“Neither I nor any of my team have divulged information from the National Security Council,” he said.

The full membership of the NSC

is not publicly known.

Jeremy Wright, culture secretary, told the House of Commons that “National Security Council discussions should be confidential.”

In response Jo Platt, Labour’s shadow Cabinet Office minister, said that “if a minister did leak the information, they are not fit to serve in the cabinet and are certainly not fit to be prime minister.”

Peter Ricketts, the UK’s first national security adviser, said: “I assume this leak is a breach of the Official Secrets Act because everyone around the table would have signed it.”

He added: “The risk is that this leak looks like the result of political rivalry and is therefore affecting national security decision-making.”

Tom Tugendhat, chair of the foreign affairs select committee, said he was “deeply disturbed” at the impact the leak about the Huawei decision would have on Britain’s reputation abroad.

Japanese tech group is buying convertible bond that can be repaid in stock ROBERT SMITH

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oftBank is investing €900m in Wirecard through a structure that could hand it a 5.6 per cent stake in the controversial German payments company.

The Japanese technology conglomerate is not buying shares, however. It is instead purchasing a convertible bond, a type of debt that can be repaid in stock rather than cash.

SoftBank is no stranger to financial engineering — after all, the head of its flagship $100bn technology fund is the man who ran Deutsche Bank’s credit trading division in the run-up to the financial crisis.

The Japanese conglomerate frequently makes use of equity derivatives, often as a way of employing leverage — raising debt against its stakes that can be deployed on other investments.

For example, a so-called “equity collar” on shares in Chinese internet giant Alibaba helped SoftBank raise the funds to buy shares in Arm, the UK chip designer, prior to a successful takeover bid in 2016.

Equity options are also at the heart of convertible bonds, such as the one SoftBank is buying from Wirecard.The basic mechanics are relatively simple. The “convertible” part is an option for investors to

receive a company’s shares at a fixed price at the end of the bond’s term, set above where the stock is trading when the deal is struck.

For investors, this means that if the stock rises above this level when the bond matures, they can get the shares at a cheaper price and book a profit. If, instead, the shares are lower, then the company has to repay them in cash. Investors benefit from the upside of the shares rising, while capping the downside of the shares falling.

What does the company get out of it? First, it pays a much lower rate of interest than on a conventional bond, as the value of the option it is handing investors means they will demand smaller fixed annual returns. Second, it avoids diluting the stakes of its existing shareholders immediately, as it would if it raised fresh equity.

So far, so simple. But convertible bonds can get a lot more complicated than this.

A good example is Vodafone’s recent £3.4bn “equity-neutral mandatory convertible bond”, which blended together several types of equity derivatives.

The full terms of SoftBank’s convertible bond are unknown, although Wirecard should disclose them to shareholders as the deal needs their approval at an annual meeting in June. www.businessday.ng

Bailiffs blocked in dispute over French chipmaker

Missile maker MBDA does not allow seizure of key documents ALIYA RAM

T

he missile manufacturer MBDA Systems blocked bailiffs from raiding its offices last week after an escalating dispute over the sale of assets belonging to one of its suppliers, Dolphin Integration.

MBDA Systems and Soitec, a listed €2.5bn chip company, formed a joint venture to buy the assets and intellectual property of Dolphin Integration, a chip designer and supplier to MBDA that fell into administration, for €200,000 last year.

But a group of shareholders led

by Aldini, a Swiss bank that owned 2 per cent of Dolphin, are trying to block the sale, alleging in court that two of its directors fed inside information to the buyers ahead of the deal.

In an escalation of the dispute, a French commercial court ordered bailiffs, who were accompanied by local police, to raid MBDA’s offices and seize documents including

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emails about Dolphin Integration, documents relating to the takeover bid and other information.

The bailiff’s report said MBDA declined to hand over the documents because they contained defence secrets. It added that MBDA refused to comply even after bailiffs suggested holding the documents at their offices.

Aldini, which applied for the court order to search MBDA’s offices, said no court order had been issued for Soitec’s offices.

“By obstructing officials, MBDA has clearly demonstrated that it has something to hide and wants to avoid scrutiny of its files,” Aldini said in a statement.

MBDA declined to comment.

Legal responses from MBDA and Soitec have rejected allegations about the takeover of Dolphin Integration’s assets, with MBDA describing the claims about the two directors as “far-fetched”.

MBDA was created in 2001 by the merger of UK, French and Italian defence assets and is an im@Businessdayng

portant participant in the missile market. The company was a major customer for Dolphin Integration, which designs microchips that run on low levels of power.

The Dolphin Integration dispute is the second of its kind to centre on information allegedly made available to bidders by representatives on a target company’s board of directors. The two cases have raised questions about the governance of bankrupt businesses during the administration process.

French reinsurer Scor has sued Barclays after a botched takeover bid by Covéa, a French mutual insurer, demanding it hand over hundreds of pages of confidential documents allegedly obtained

by Covéa’s chief executive, who at that time had a seat on Scor’s board. Covéa’s chief executive has dismissed the claims as “contrived”.

The French commercial court of Nanterre and local police did not immediately respond to requests for comment.

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BUSINESS DAY

ANALYSIS Warren Buffett: ‘I’m having more fun than any 88-year-old in the world’

FT

The legendary investor on luck, expectations and finding value in an overheated market

n the stock market, small margins separate success from failure. Ten per cent is a big difference in performance; 100 per cent, an oceanic one.

And then there is Warren Buffett. Over the past 54 years, shares in his company, Berkshire Hathaway, have outpaced the S&P 500 — a broad index of American stocks — by almost 2.5 million percentage points.

The degree to which Buffett has outwitted successive generations of Wall Street rivals almost defies comprehension.

It is striking, then, that over the past decade Buffett has fallen behind. A dollar invested in Berkshire 10 years ago is worth about

make their life good.”

The Buffett persona is reflected in Berkshire’s office, which occupies a single floor in an unexceptional office tower in Omaha that bears another company’s name. Its drop ceilings, narrow hallways and tired carpets would suit the administration of a community college better than a $700bn financial empire. The staff of 25 dress casually. Every desk is covered with family photos, greeting cards and tchotchkes. A sign hangs over the door from the anteroom: “Invest like a champion today!”

Buffett himself comes to collect his interviewers from the lobby, in a baggy pinstripe suit, sensible shoes and a red tie. “I buy expensive suits — they just look cheap on me,” is one of his famous

$2.40; the same dollar in an S&P 500 tracker fund is worth $3.20.

More striking still is what Buffett says about this. Ahead of Berkshire’s annual meeting, Buffett sat down in his office for a rare newspaper interview with the FT, lasting nearly three hours.

At the outset, he was asked which would be the better investment to put in a child’s account — a share in Berkshire, or a share in the S&P? He did not hesitate: “I think the financial result would be very close to the same.”

The statement was made without qualification. But it is hard not to wonder if Buffett, even at 88, is underplaying his ambitions.

If he is an investing genius, Buffett is a public relations genius, too — cultivating an aw-shucks, Midwest-wholesome image of a man who has triumphed in the long game by practising a simpler, purer version of capitalism.

The third-richest man in the world, with an estimated worth of $86bn, says he stays at the helm of Berkshire because he wants to keep doing what he has loved since buying his first shares, in an Oklahoma oil company, at age 11.

“I can’t buy time, I can’t buy love but I can do anything else with money, pretty much. And why do I get up every day and jump out of bed and I’m excited at 88?

It’s because I love what I do and love the people I do it with. I’ve got 25 people out here. We go to baseball games together. They try and make my life good, I try and

quips, and he is not wrong. A little stooped, he takes careful, shuffling steps, but his face is pink and flush with health. His eyes flash and twinkle behind his glasses as he talks, buoyantly and at speed.

Buffett’s plain-dealer persona is an integral part of the Berkshire enterprise. The company plays in politically and financially volatile sectors such as energy and finance, and being capitalism’s favourite grandpa has kept investors, politicians and regulators firmly on side.

Chart showing Berkshire Hathaway performance since 1979 relative to S&P 500 A key element of this is careful management of expectations.

After a bruising 1999, in which Berkshire’s shares were trounced by the market during the tech boom, he did not predict that the pendulum would soon swing back to sensible investments.

Instead, he said that he expected the growth in Berkshire’s value to “modestly” exceed that of the S&P over the next decade. “We can’t guarantee that, of course,” he wrote in a letter to investors.

“But we are willing to back our conviction with our own money.”

Not promising too much is a constant theme. “The one thing that would ruin my life is people expecting more than I deliver,” he says. “Now, I can do that by being short on delivery or I can do that by being long on expectations with them, but either one would make my life miserable.”

ROBERT ARMSTRONG, OLIVER RALPH AND ERIC PLATT

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www.businessday.ng

Why America is learning to love budget deficits The trend towards looser fiscal policy could mark the biggest shift in economic thinking in a generation SAM FLEMING AND CHRIS GILES

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or a newly elected Democrat, it was an unusual way to make your mark. Ben McAdams, the Democratic representative from Utah, this month introduced an amendment that would make it unconstitutional in normal circumstances for the American government to fail to balance its books.

The proposal, which he says prompted a fierce backlash from within his own party, reflects a fear that both fellow Democrats and Republicans are giving up on any attempt to curb the budget deficit. “Politicians are like water — they will take the course of least resistance,” says the 44-year-old congressman, an ex-mayor of Salt Lake County. “In our case the course of least resistance is deficit spending.”

Fiscal conservatism may once have had deep roots within both the Republican and Democratic parties, but today it appears critically endangered. The Congressional Budget Office’s latest outlook suggests deficits are projected to average 4.4 per cent of gross domestic product in 2020-29, far above the average set over the past 50 years of 2.9 per cent of GDP. That will ensure public debt as a share of GDP rises steadily to eventually exceed records set immediately after the second world war.

Symbolically charged amendments such as the one sponsored

by Mr McAdams and backed by the Blue Dog coalition of fiscally conservative Democrats have little or no chance of ever becoming law. Instead, they could end up being relics of a bygone era in thinking about the economy.

The trend towards looser fiscal policy led by the US marks potentially the greatest change in economic policymaking for a generation. Persistently low inflation is allowing central banks to keep interest rates down, easing the cost of servicing public debt.

As a result, many economists now argue there is little pain and much to gain from further loosening budgetary shackles.

After four decades when central banks have been the dominant actors — first through their efforts to use monetary policy to vanquish inflation and then, over the past decade, to avert disaster following the financial crisis — it is fiscal policy and government spending that have the potential to become bigger driving forces

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in the economy.

While US politicians continue to publicly deplore deficits, many are in practice embracing them.

On the right, President Donald Trump has led his party down a path to a US deficit blowout that will soon take annual budget shortfalls above $1tn. On the left, influential figures such as Alexandria Ocasio-Cortez, the leftwing representative from New York, have suggested that not all spending needs to be offset with extra taxes, as progressives propose major expansions of public health spending and environmentallyfriendly investment. Bernie Sanders, one of the early frontrunners to become the Democratic presidential candidate, is advised by Stephanie Kelton, a prominent economist who argues deficits are harmless if twinned with low inflation.

Even in the sometimes lonely middle ground, economists are showing a willingness to embrace deficits. Lawrence Summers and Jason Furman, former advisers to Barack Obama, argued earlier this year that it is time Washington ends its debt obsession and recognises that there had been few if any fiscal crises in countries that borrow in their own currencies and print their own money.

“The fiscal floodgates are wide open,” says Mark Zandi, chief economist at Moody’s Analytics.

“Both the Republicans and the Democrats now have theories that allow them to ignore deficits and debt . . . The whole game has changed.”

Similar stories are playing out elsewhere. Japan has arguably not worried much about budgetary strictures for two decades. In Europe, politicians are beginning to question the old orthodoxy, which required the public finances to be sustainable and prudent while central banks sought to curb economic booms and busts. Germany is under particular pressure to relax its balanced budget policy — the so-called schwarze Null (“black zero”) — and boost its infrastructure.

To politicians, the allure of the new thinking on deficits is obvious if it helps justify popular tax cuts or public spending increases.

In the past politicians were wary of the risks associated with lost budgetary credibility — including the threat of surging borrowing costs and higher inflation, or lower growth associated with hefty public debt mountains.

But now a series of developments has triggered a reassess@Businessdayng

ment of fiscal policy, says Mohamed El-Erian, chief economic adviser to Allianz. These, he explains, include persistently low and, in some cases, negative interest rates; the absence of inflationary pressures despite low rates and central bank liquidity injections; a prolonged period of relatively low and insufficiently inclusive growth; and concern that the manner in which central banks conducted quantitative easing disproportionately benefited the rich.

“All this comes in the context of a growing realisation that central banks cannot be the only game in town when it comes to the policy challenge of generating high inclusive growth and genuine financial stability,” he adds.

The US serves as a vivid example of the changing political weather.

Mr Trump spoke implausibly during the 2016 campaign about paying off America’s national debt in just eight years, and went on to appoint Mick Mulvaney, a hardline deficit hawk, to be his first White House budget director.

But the president then executed a stunning U-turn on the budget, ruling out reforms to the fundamental drivers of rising public spending — namely social security and pension-age medical expenditures. At the same time his administration embarked on a major tax-reduction programme, taking a leaf from supply-side folklore with claims that the cuts would pay for themselves via higher economic growth.

Trump administration policies are now set to push the US into the deepest protracted budget deficits on record outside wars and recessions — at a time when the US economy is near or at full employment.

Kevin Hassett, chairman of the president’s Council of Economic Advisers, insists the White House does care about the deficit, but that it was right to prioritise tax cuts that it expected to boost growth. “The growth part of the policies is working,” he says in an interview with the FT. “The White House agenda is getting ahead of the curve on spending.”

The Republicans’ relaxed approach to fiscal policy has helped spur a debate within the Democrats — who presided over a fleeting bout of budget surpluses in Bill Clinton’s presidency. As progressives gain influence within the party, some are backing massive and potentially deficit-expanding spending programmes addressing climate change and social policy priorities.

Friday 26 April 2019

BUSINESS DAY

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Friday 26 April 2019

BUSINESS DAY

CULINARY DELIGHTS’

LEHLE BALDE

@lehlelalumiere Lehle works at BusinessDay in Strategy Innovation and Partnerships, she is also a financial inclusion advocate and radio anchor. Originally from Senegal Lehle has a passion for food and culinary experiences and enjoys discovering new restaurants in Lagos.

PEACE HYDE Forbes Africa Head Digital Media, and Partnerships/West Africa correspondent

Z

Kitchen Lagos is conveniently located off Saka Tinubu street in the heart of Victoria Island, one Lagos’ most cosmopolitan neighborhoods. They say food brings people together, so this time I knew I had to bring some friends along to experience it with me. On this occasion, my dinner companions were Peace Hyde, Forbes Africa Head Digital Media, and Partnerships/West African correspondent and Zubby Emodi MD, Times Multimedia.

Upon entry, at Z Kitchen we were met by a very elegant and modern exterior, which is worthy of a wow factor award. The exterior

is well complemented by an equally impressive interior.

As we approached the entrance we were greeted by the valet and then by the hostess who was friendly and warm, she then led us to the seating area. In my opinion, a culinary experience should start right at the door of the restaurant and this was definitely the case at Z kitchen.

The whole ambience of this restaurant is elegant, from the smell of the gently lit scented candles, the warmth of the lights and gentle background music which er conversation.

The ambiance feels modern, welcoming and warm.

The attention to detail in Z Kitchen is impressive, more

than the food, it’s the Z experience. Simple, minimalist design yet very chic.

Here are some fun facts about Z Kitchen: 1) It is the only restaurant in Lagos with a visible meat aging chamber. 2) Z Kitchen is also the only restaurant in Nigeria that serves ostrich meat and tomahawk.

I decided to look up the menu before because I wanted to make the most of the Z experience. For our starters, we shared the seafood shrimp cocktail and ‘Gambas al Ajillo” which is Spanish for garlic prawns.

Often eaten as an entrée, the seafood cocktail is a shrimp and avocado dish topped with Marie Rose dressing. Our starters were

fresh and tasty and were the perfect light bites before our ´main courses. I decided to have the steak frites as my main course.

The ‘Steak Frites’ is a traditional French dish which is simply French for Steak and french fries. This dish was served with peppercorn and mushrooms sauced topped with matchstick fries. The meat at Z kitchen is excellent and this particular cut was very tender. Zubby had the chargrilled king prawns and Peace had the lamb chops.

ZUBBY EMODI MD Times Multimedia

Zubby and Peace had some thoughts on their food and experience.

Friday 26 April 2019

BUSINESS DAY is something for every type of dining experience you might want.

There is the main dining room which occupies a large portion of the space, but there are also pockets for more private seating arrangements, as well as a bar and a charming outdoor space. The Z Kitchen is a place where you can go for a special celebratory dinner party, it’s also perfect for a romantic date, dinner, and drinks with friends and so much more. It is THE place in town for a 5 -star dining experience.

I highly recommend this restaurant and I’m excited to my first 5 star rating! I can’t wait to bear about your fabulous Z Kitchen experience.

RATING

Total

“Walking into Z Kitchen, though I had seen marvelous food images of their menu on social media.

I wasn’t too sure what to expect.

However, from the moment we parked the car to go in, up until our departure hours later, their proprietors and well-trained staff made sure it was truly a welcoming and memorable experience I trusted our waiter with my food selection and was very far from disappointed by his choices - from the mains course of chargrilled prawns, to the cheesecake dessert. My only regret after leaving was that I didn’t order more to go. Would definitely suggest to people that appreciate amazing food and flawless service.” Zubby Emodi - MD, Times Multimedia.

“Excellent eating experience, beautiful decor...from walking in the door and being greeted by the employees, seated and drink order taken, was within 5 minutes. The meal was very flavorful

and served hot. The server was very attentive, friendly and helpful throughout the entire dining experience. I highly recommend Z Kitchen as an amazing dining experience in Lagos.” Peace Hyde, Forbes Africa Head Digital Media, and Partnerships/West African correspondent.

The Z in Z Kitchen stands for Zeina and Ziad, the first names of the adorable power couple that owns the restaurant. Their passion is evident and you can tell that they derive joy from seing happy customers. Ziad is the very skilled head chef and Zeina is the client experience and operations manager. They pay extreme attention to detail and have a wonderful staff of friendly, professional and welloriented individuals, j want to give a special commendation to James who attended to us that evening. He is charismatic, kind, very knowledgeable and absolute pleasure! Another plus about the Z kitchen is that there

Shrimp Cocktail

N5,000

Gambas Al Ajillo

N5,000

Steak Frites

N12,000

Jumbo Prawns

N12,000

Lamb Chops

N12,000 N45,000

Contact: Zeina +234 903 066 6666.

To make recommendations or for collaborations please send an email to lehle.balde@businessday.ng

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Opinion Creative feast with Segun Arinze

The fire next time THE NEW WEALTH OF NATIONS

Obadiah Mailafia

T

he medieval cathedral of NotreDame de Paris has been one of the landmark monuments adding glamour to the most beautiful city on earth. It has played that role for more than 850 years. The medieval philosopher and theologian John of Jandun described it as “That most glorious church of the most glorious Virgin Mary, mother of God (that) deservedly shines out, like the sun among stars”.

During afternoon of Monday 15 April, a mysterious fire broke out at the roof of the cathedral as renovation work was being carried out. Like Dante’s inferno, lighting up the Parisian skyline in a frightful display of angry fireworks. It burned for 15 hours as fire services fought hard to bring the flames under control. Thousands gathered to watch the grim spectacle, most of them in tears.

Something from deep within me pulled at my heart strings when the church’s spire finally came down amidst the dark fumes and rubble.

Paris is the city of my youth. I studied there. Although a non-catholic, I remember attending mass once in that medieval cathedral. I enjoy Latin high mass and the languorous melody of sacred music. Notre-Dame is the epitome of everything I have ever loved about Paris.

Everybody has a passion or two. Two of mine are both old and unashamedly European: classical music and medieval cathedrals.

Don’t ask me why – even I myself can’t tell the roots of those passions.

There is this thing about medieval cathedrals that speaks directly to my soul. For one thing, it’s their timeless feel. Like the Pyramid of Giza. I have visited the cathedrals of Clermont-Ferrand and Chartres, in addition to those of European cities such as Berlin, Warsaw, Budapest, Uppsala, Brussels, Cologne and Vienna. Above all, Westminster Abbey in London and the cathedrals of my beloved alma mater at Christ Church and the Church of St. Mary the Virgin at Oxford. Their spires and their bells seem to strike a chord inside me that words cannot describe. Same for classical composers such as Monteverdi, Palestrina, Purcell, Albinoni, Vivaldi, Handel, Bach, Beethoven and Mozart.

You can imagine how I must felt watching on CNN as Notre-Dame was engulfed in flames. The original plan for the building was launched in 1160 by the Bishop of Paris, Maurice de Sully. The original site was said to have been a pagan shrine dedicated to the Gallo-Roman god Jupiter. A couple of churches were built on the site and were later demolished to make way for the new cathedral. Actual work was said to have commenced between 24 March and 25 April 1163, with the laying of the cornerstone in the presence of King Louis VII and Pope Alexander III. The edifice was completed more than a century later, in 1263.

Its architecture is of the old gothic style, with massive rose windows and beautiful stained glass; with priceless art works and religious artefacts adorning its walls. One of the most important is, of course, the Crown of Thorns, said to be the real one that Roman soldiers thrust on Jesus’ head during his agony on the way to Golgotha. It had

been in the custody of a succession of Byzantine emperors in Constantinople. They had bequeathed it to France in exchange for her support with funds to fight the Ottoman Turks. Constantinople unfortunately fell to the Turks in 1453, but France has kept the Crown ever since.

Notre-Dame is visited by an estimated 12 million tourists annually– the most visited sight in the whole of France. It was deeply moving to see Christians, Muslims, Jews and even free-thinkers united in grief as they watched the conflagration engulf this monument to faith. A Jewish Rabbi solemnly read from the Book of Isaiah, where the Almighty proclaimed that His temple shall be a house of prayer for all peoples.

It would not be the first time that the cathedral had witnessed disaster. During 1791 it came under attack by the revolutionary mobs who saw it as a symbol of religious oppression. Parts of it have been rebuilt on at least two different occasions. Efforts have also been made to clean up the accumulated soot and grime going back almost a millennium.

For centuries, Notre-Dame has not only been a house of prayer; it has been a temple for the crowning of kings and emperors.

The funerals of a succession of French presidents during the Third Republic have also been held there. Napoleon Bonaparte was famously crowned there. According to legend, when the Pope brought the crown to place on his head, Bonaparte seized it and Continues on page 33

Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

Abdel Fattah El-Sisi and the battle for the soul of Egypt HumanAngle

Femi olugbile

A

few days ago, the people of the Arab Republic of Egypt voted massively to give their support to major changes in their country’s constitution. Among the changes was a provision that the President would acquire the power to appoint judges and the public prosecutor. The military, under the Commander in Chief – the President, would be given broad new powers to ‘safeguard the constitution’. A second parliamentary chamber would be introduced. A 25% quota would be reserved for women in Parliament. And the President, who was already serving the second of two four-year terms, would now be entitled to up to four terms, making a total possible tenure of sixteen years. Technically the incumbent, previously due to leave office in 2022, could stay in power till 2030.

Opposition groups and human rights activists have pronounced themselves outraged, warning of a deepening and extension of what is already an iron-grip dictatorship.

The President in question is, of course, Abdel Fattah El-Sisi. He was, until he retired from the Egyptian Army to run for

the Presidency in 2014, a Field Marshal in the Egyptian Army. He is, in addition, though some people are not happy about this, the current Chairman of the African Union.

A mere ten years ago, not a lot of people, even in Egypt, knew about Abdel Fattah el-Sisi.

At the time of the Egyptian version of the Arab Spring, which led to the overthrow of Hosni Mubarak, el-Sisi was an obscure officer in the upper echelons of the Egyptian army, having risen steadily through the ranks from the time he joined up in 1977.

After the election of Mohammed Morsi of the Muslim Brotherhood to the Presidency, the new President had a running battle with the top brass of the Armed Forces. He eventually succeeded in getting rid of them. He reached down to pick el-Sisi as his Minister of Defence, perhaps expecting that he would be beholden to him.

It proved to be a fatal choice for Morsi.

In a short space of time the government was in trouble with a large section of the population. It got no help from the military.

In July 2013, el-Sisi led a military coup that removed Morsi from power and put him in prison. The constitution was abrogated, and a new political road map drawn up for the nation. An interim President was appointed till elections. el-Sisi, ‘under pressure from supporters’, resigned from the army and stood for election as President, with a vocal commitment to bring order to the nation and ‘crush’ the Muslim Brotherhood.

Needless to say, el-Sisi won the 2014

election by a large majority.

Four years later, he would win reelection by a landslide, garnering 97% of the vote.

On both planks of his avowed intentions, President el-Sisi has been true to his word. The Muslim Brotherhood- the arrowhead of political Islam in the Middle East, has been driven underground in Egypt, although it is alive and active in the mainstream in Jordan and elsewhere.

Regarding law and order, Sisi has ruled with a firm hand, but it is still work in progress. There have been bombings and other terrorist incidents, targeting the tourism industry for the obvious purposes of getting media attention and crippling the nation’s economy. Places of worship belonging to the Christian minority have been attacked. The most famous terrorist incident was the bombing of a plane soon after take off from Sharm El Sheikh, Egypt’s glamorous resort that aims to show the world that Egypt is open for business.

There is more on the negative side of the ledger. The Sinai Peninsula used to be a major site for Christian pilgrimage from Nigeria and other places. There pilgrims climb up to the top of the mountain where Moses received the Ten Commandments. For many it was the high point of their visit to the holy lands. It has become a no-go area controlled by Al Qaida linked terrorists. The massive hospitality industry that was the mainstay of the economy of the local community has Continues on page 33

Femi Olugbile is a Writer and Psychiatrist.

Comments to synthesiz@gmail.com’

Tales from the main road

Eugenia Abu

W

hen I returned to the page a couple of weeks ago, I forgot to mention that in December of last year, we had a soft opening of a new media concern, my namesake company, The Eugenia Abu Media, TEAM where I am Managing Partner. It feels good to work for a private company where you have some form of ownership after 35 years in public sector broadcasting. There is a rush of adrenaline where you have some sort of control and work with many ideas people who can catch your vision. It is pretty exhilarating and very rewarding. I mean public sector has its own rewards but this is a different trajectory and I am glad for the opportunity.

This opportunity means that we are birthing at the media centre critical and impactful interventions for the old and the young, for women and men, for the youth and for individuals and corporate bodies. We work on different client requests for media strategy, customer service, branding, TV airtime negotiation, public speaking, report writing and the likes but more importantly we are involved in social engineering, mentorship and value-redirection. It would seem to me that the old values of delayed gratification are out of the window and in its place the “now- now” and “money, more money” syndrome. Altruism is now a distant cousin of being foolish. So if you do something noble for your nation, you are defined as a “mumu” person. This is so heart-breaking.

If you are not corrupt, rude and impossible and you have lots of customer service and kindness, then a lot of persons will describe you as not very sharp. It is against this background that our centre identified a lot of young persons as believing that to succeed, you just need to be lucky and hard work or processes do not matter. And this is in fact far from reality. You cannot legislate success or fame.

It is not wishful thinking.

To underscore this point therefore and to point the way, the Eugenia Abu centre will provide an insightful intervention by inviting successful creative entrepreneurs with staying power to give a one-day masterclass to young person’s especially on the benefits of hard work, how to enter the creative industry and stay on top of your game and sourcing finances and resources to kick-start your many creative projects.Whether you want to become an actor, a chef, or a photographer, our faculty will be talking to participants about their journeys and how they have remained relevant through the years. They will also intimate participants about multiple streams of income and harnessing your talent as a business.These monthly interventions will begin this month on the 30th of April with Nollywood actor Segun Arinze who will be coming to Abuja as the Lead Facilitator for the maiden edition of this creative excitement with several value adds and bonuses titled “The Creative Feast”. Segun Arinze will bring his many years of experience to the table to include role play, Q and A, one on ones and how to re-invent yourself in the creative space and maintain your staying power. He will also spend time discussing the Creative Entrepreneurs tool kit. Of course he will give masterclasses on acting and directing. I will join Segun later in the day for the creative project group work and I will also give a short talk on Creativity, Entrepreneurship and Legacy.

It is a class of about forty persons in order to keep the engagements more robust. At the end of the day we hope to have raised men and women with their eye on the creative prize but who have Continues on page 33

Eugenia Abu is a broadcaster, writer, trainer, band and multimedia strategy expert and media consultant.

Contact. abu_eugenia@yahoo.com

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