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IFEOMA OKEKE

he frequent near misses of air crashes in recent times are rasing concerns among air passengers and stakeholders over the state of safety of Nigeria’s aviation sector. These concerns are coming

on the heels of two emergency landings in one day by two major domestic airlines, Air Peace and Medview, after realising faults on the aircraft. Coming at a time when air passenger traffic is on the increase, experts fear that routine checks may be compromised in a bid to meet demand for air travel.

-0.13 10.67

Figures on passenger traffic sent to BusinessDay by the Federal Airports Authority of Nigeria (FAAN) show passenger traffic increased by 19.4 percent to 16,371,674 in 2018, from 13,706,345 in 2017. Also, passenger traffic rose by

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0.00

-0.43

11.39

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NGUS dec 24 2019 361.48

AIB records 11 cases of incidents, accidents in 2019

This is as the surge in demand for flights is keeping planes in the air longer than they used to. BusinessDay’s checks show that the bad shape of inter-state roads and recurring insecurity along frequently travelled routes across the country are forcing Nigerians who can afford a plane ticket to rather travel by air.

NGUS sep 18 2019 361.03

Near misses show aviation sector in need of safety audit As rise in air traffic keeps planes airbone longer

fgn bonds

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Abducted NGO worker claims Leah Sharibu has been killed …begs Nigerians to help her and colleagues avert tragic end …video creates urgency for security action – Presidency TONY AILEMEN, Abuja, & SEGUN ADAMS, Lagos

f claims by Grace Taku, an Action Against Hunger worker who was kidnapped by Boko Haram insurgents on July 18, 2019 are true, then Leah Sharibu is dead. In a video that is going viral on social media, a young woman pleads for help from the Christian Association of Nigeria (CAN) and the generality of Nigerians. She sits on the floor with her five male colleagues, hostages of the Boko Haram terrorists. As the only Christian cap-

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Inside EKSU’s N100 award prize exposes Nigerian public varsities with faulty reward system P. 2 L-R: Jonathan Yakubu, financial controller, Silverbird Group; Adeola Ajewole, general manager, advertising, BusinessDay; Guy Murray Bruce, vice president, Silverbird Group; Adewunmi Obakoya, director, Eventstracer; Ekene Nwokolo, head of legal & corporate services, Silverbird Group, and Maxwell Nzekwe, general manager, Eventstracer, at the signing of an MoU between Silverbird, BusinessDay and Voidant Broadcasting for collaboration on the Silverbird Small Business Events Circuit.

Knocks for Senate as 16 out of 24 ministerial nominees asked to ‘bow and go’ P. 2

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news Knocks for Senate as 16 out of 24 ministerial nominees asked to ‘bow and go’

L-R: Product Manager, Liability and Customer Engagement, Wema Bank plc, Opeyemi Eboka; Head, Digital Solution, Kunle Isiaka; Cluster Team Lead, Lagos Island Zone, Kemi Aina; Divisional Head, Retail Banking Group, Dotun Ifebogun; Head, Gaming, Kunle Alarapon and Taslim Alli of Gaming and Entertainment, during the Wema Bank- sponsored bet9ja SuperAgent Retreat held in Lagos, yesterday.

.... 67% of nominees enjoy special privilege OWEDE AGBAJILEKE, Abuja

EKSU’s N100 award prize exposes Nigerian public varsities with faulty reward system OLUWASEGUN OLAKOYENIKAN

…award prizes last for decades unchanged

igeria’s public universities will probably have more students excelling every year if they review their reward systems as much as their tuition fees. A searchlight beam at some government-owned universities in the country after Ekiti State University, Ado Ekiti (EKSU) awarded a cash prize of N100 to Bamisaye Tosin Tope, the best graduating student in the Department of Civil Engineering of the institution, shows Nigeria’s public institutions have a faulty reward system. In a research work on the effect of rewards and motivation on student achievement by Lori Kay Baranek and submitted to Grand Valley State University, a reward is seen as a veritable tool for motivating students to perform better in their studies.

…UI sustains N50 annual prize for best graduating students

“If they would only try harder, then they would do better on tests, take more risks, or earn better grades,” it stated. This implies Nigerian public universities stand a better chance to improve performance level if their rewards could address some students’ fears. These fears include surviving after graduation in a country harbouring more than 90 million extremely poor inhabitants, and having almost no job prospect for graduates with classes of degree below a first class as the unemployment rate hit a record-high of 23.1 percent as at the third quarter of 2018. Little wonder why students in Nigerian private universities are more likely to excel academic-wise than their peers in government-

owned institutions, no thanks to an age-long and poor reward system that is fuelling disregard to achieving academic excellence in the country’s public institutions. For instance, while over 20 million Nigerians who were within working age and actively looking for jobs could not secure one as at September 2018, all the 72 students out of 1,042 graduates who bagged first-class degrees in Afe Babalola University, Ado Ekiti (ABUAD) at the institution’s sixth convocation ceremonies in 2018 were given automatic employment. “It has always been the culture of the founder, Aare Afe Babalola, to give automatic jobs to first-class students,” Michael Ajisafe, ABUAD’s vice-chancellor,

said while delivering his speech at the event. “These 72 will benefit from the gesture.’’ The story is not different in Covenant University where every first-class graduate is eligible for a Master’s Degree Scholarship and a job, according to a source in the institution who pleaded anonymity. However, state-owned EKSU has been awarding a cash prize of N100 under the Ado-Ekiti Patriotic Front Prize Award to the best graduating student in its Department of Civil Engineering for more than 30 years until a letter to the effect went viral, prompting an upward review of the prize. “That award was instituted in the university more

•Continues online at www.businessday.ng

FG’s import, tax waivers help gas companies cut cost ISAAC ANYAOGU

he Federal Government’s import and tax waivers on gas assets in Nigeria are helping companies cut over a quarter of their costs, helping them to grow their profits, but inadequate pipeline infrastructure still constrains the sector. Gasco Marine, which recently launched a N2 billion Compressed Natural Gas (CNG) plant in Oke-Sokori, Abeokuta, Ogun State, for example, said it has been able to cut 40 percent of its costs by applying these waivers while importing gas infrastructure to build its plant. “The waivers have been

…but inadequate pipeline infrastructure still constrains sector a big help to our business and through it we were able to save up to 40 percent of the cost in waivers and tax exemptions,” said Bukola Badejo-Okusanya, the company’s managing director, in an interview with BusinessDay. The company succeeded in completing the project 15 months after it broke soil which was months ahead of schedule. These waivers, however, are yet to spur the kind of growth required in making gas an enabler to the Nigerian economy. Over a decade after the Nigerian Gas Master Plan was enacted www.businessday.ng

to jumpstart domestic consumption of natural gas, local demand remains slightly above 1 billion standard cubic feet per day (bcf/d). “The problem is that these waivers have not been backed by enabling environment which should spur gas utilisation locally,” Ayodele Oni, energy lawyer and partner at Bloomfield law firm, said. Oni said that the waivers ought to be supported by the backbone infrastructure including pipelines to transport gas from the Niger Delta to areas where they are required. He also said the inability

of power plants (who demand over half of the gas molecules used locally) to pay due to poor collections further constrains the sector. Badejo-Okusanya also called on the government to take advantage of the opportunities in the gas sector to stimulate the economy by encouraging private investments in providing power in economic clusters. Fiscal incentives in the gas sub-sector are embedded in the Petroleum Profit Tax Act (PPTA), Companies Income Tax Act (CITA) and the national gas policy. Gas

•Continues online at www.businessday.ng

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he controversial ‘bow and go’ tradition of the Senate in which some nominees of the President are excluded from the rigours of extensive questioning has attracted condemnation to the upper legislative chamber. As of Thursday, July 25, 2019, 16 out of 24 ministerial nominees were simply asked to ‘bow and go’ without being subjected to rigours of questioning by senators. The development means that 67 percent of nominees screened so far have enjoyed special privilege. The screening exercise which commenced on Wednesday with the controversial ‘bow and go’ tradition is expected to continue on Friday and end on Monday. It was gathered that the policy which began in 2003 as a privilege strictly meant for nominees who had been elected to the Senate in the past has now been extended to all persons who had had legislative experience both at federal and state levels. Other categories of nominees who now enjoy “the

bow and go” privilege are all female nominees, all nominees from the state of origin of incumbent Senate President as well as national officers of the ruling party. Late Senator Wahab Dosumu, who represented Lagos Central Senatorial District between 1999 and 2003, was the first to enjoy the privilege when he was appointed minister in 2004 after defecting from the then Alliance for Democracy (AD) to the then ruling People’s Democratic Party (PDP), BusinessDay gathered. Among President Muhammadu Buhari’s 43 nominees who have so far enjoyed this privilege include Chris Ngige (Anambra), Godswill Akpabio (Akwa Ibom), George Akume (Benue), Emeka Nwajiuba (Imo), Adeleke Mamora (Lagos), and Rotimi Amaechi (Rivers). Others are Tayo Alasoadura (Ondo), Mustapha Baba Shehuri (Borno), Timipre Sylva (Bayelsa), Niyi Adebayo (Ekiti) and Muhammadu Musa Bello (Adamawa).

•Continues online at www.businessday.ng

Nigeria lags Mauritius, Botswana, Gabon on sustainable economic development …averages 23% in 12 yrs …scores low in education, income, infrastructure, others BUNMI BAILEY

n 12 years to June 2019, Nigeria, Africa’s biggest economy, has lagged behind its sub-Saharan African (SSA) peers in the Sustainable Economic Development Assessment (SEDA) as the country’s score averaged 22.8 over the period. BusinessDay’s analysis of the SEDA report shows Nigeria’s average score of 22.8 over the last 12 years is no different from its current score of 22.7, ranking 137th position out of 143 countries. The SEDA report done on a yearly basis from June-June by Bolton Consulting Group (BCG), a global management consulting firm, is primarily an objective measure combining data on outcomes, such as in health and education, with quasi-objective data, such as governance assessments. The report, which is also a relative measure that assesses how a country performs in comparison to either the entire universe of countries or to individual peers or groups and offers a current snapshot as well as a measure of progress over time, ranks countries’ performance on these key indicators on a scale of 100. @Businessdayng

In the 10 indicators used, ranking from the lowest to the highest, the country scored 6.2, 6.3, 18.8, 21.1, 21.7, 24.3, 26.0, 51.7, 52.5 and 69.2 in education, income, civil society, governance, infrastructure, health, in equality, employment, environment, and economic stability, respectively. Gbolahan Ologunro, an equity research analyst at Lagosbased CSL Stockbrokers, said Nigeria’s low score is a reflection of the low level of government spending in those critical sectors of the economy that will improve human capital and development. “Looking at the indicators used in assessing the country in terms of education, income, health, infrastructure, I think it is clear that Nigeria lags behind its peers in SSA and Africa as a whole in terms of government spending,” Ologunro said. “If you look at allocation of government expenditure to the health and education sector, it is still poor. And that is where we rank high in lack of access of healthcare and facilities and also for diseases like malnutrition, malaria and other chronic diseases,” he said.

•Continues online at www.businessday.ng

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The predatory state and Nigeria’s systemic dysfunction THE NEW WEALTH OF NATIONS

Obadiah Mailafia

he roots of our predicament go back to the colonial state that existed prior to independence – an apparatus created by force and preserved by colonial hegemony. The system of production was principally geared to serving the interests of metropolitan capital. After independence in 1960, the elites that took over power were essentially a fractious ethnic-oriented oligarchy that tended to perpetuate pre-existing structures and their entrenched privileges. Far from building a productive and autonomous capitalist economy, they only succeeded in reproducing a neo-colonial capitalist system anchored on producing primary commodities for exports while importing manufactured goods. The radical Pakistani sociologist Hamza Alavi raised those issues in a controversial and much-debated essay that he wrote in the seventies. From his case studies of Pakistan and Bangladesh, Alavi argued that it was in the very nature of the post-colonial that the elites would be in no position to articulate a vision of autonomous economic development. The so-called “Asian Miracle” of the last decades has shown that the post-colonial state can be repositioned to serve the needs of structural

transformation. It has in fact altered the landscape of world development thinking as we have known it. Countries such as Singapore and South Korea have already joined the ranks of advanced industrial nations while countries such as Malaysia and Indonesia are rapidly “catching up” with the advanced industrial countries. The Asian countries embraced the model of the export-oriented developmental state in the way that our countries in Africa never did. Today, only a couple of African countries can be regarded as developmental states in any genuine sense: Mauritius, Botswana, Rwanda and perhaps Ethiopia. We define the developmental state as the political order which places ‘development’ as its topmost national priority; encouraging citizens with the right mix of incentives to forego current consumption so as to maximize long-term economic performance. Historically, such states have tended to rather be authoritarian, with the degree of authoritarianism varying from one to the other, depending on regime type, the nature of national conditions and the specificity of security challenges. Another feature of the developmental state is commitment to property rights, strong markets and the sanctity of contracts. This provides clear signals for foreign investors who also enjoy tax holidays and other incentives. Most developmental states have also undertaken land reforms. Beginning from President Park in South Korea in the 1950s, most Asia Pacific nations that have achieved rapid growth and structural transformation have also been those that have implemented courageous land reforms. Their leaderships have also mobilised enough support to defeat

resistance by landed oligarchies. Most developmental states have also invested heavily in human capital development. They have given priority to ensuring universal compulsory education, expansion of higher education, especially in technical and engineering fields, and in the training and acquisition of industrial skills by its workers. Developmental states tend to insulate their technocratic elites from societal pressures by giving them the autonomy to develop and implement policies for rapid growth and structural transformation. They have done this through reform of the civil service and creation of a merit-based bureaucracy; with functionaries that are well-paid and possess a vision of national destiny and purpose. The technocrats enjoy the power to issue orders and to guide markets and impose discipline on the private sector. The state guides the markets, with strict controls over investment flows. Unlike African nations that pursued import substitution industrialisation, with reservations against transnational corporations, the developmental states of the Asia Pacific anchored their development strategies on export-led industrialisation, with an open disposition to foreign capital. For most of sub-Saharan Africa, import substitution created inefficiencies and distortions, often reinforcing the neopatrimonial syndrome. Typically, a developmental state exhibits a set of interrelated characteristics: (i) Growth-oriented leadership; (ii) Capable economic bureaucracies; (iii) Selective enforcement capabilities; (iv) Broad consultation among public officials and private sector elites; (v) Effectiveness in conflictresolution and coordination; (iv) Ad-

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Another feature of the developmental state is commitment to property rights, strong markets and the sanctity of contracts

ministrative regime that provide clear guidance to market activity; and (vii) Alignment of expectations between state and market actors. The origin of the concept has been traced back to American political economist Chalmers Johnson, in his seminal study on the role of old Ministry of International Trade and Industry (MITI) in Japanese industrialisation and economic development. In that path-breaking work, Johnson made a distinction between states with a ‘regulatory’ orientation and those with a ‘developmental’ orientation. He refers to the United States as a country that belongs to the first type. American industrialisation was largely spurred by the private sector, with government coming in largely as a regulator. Japan, on the other hand, is the prime exemplar of a country where the state played a central role in the industrialisation process. While Tokugawa Japan was dominated by the Shogun feudal aristocracy, the imperial administration of the time took a back seat as far as economic development was concerned. However, following the Meiji Restoration of 1868, a reinvigorated government took it upon itself to modernise the society and industrialise the economy. Thus the state assumed a central role in the industrialisation of Japan. In recent years Japan has declined relative to the emerging economic powers, but it nonetheless remains a player of the rank among the leading technological powers of the twenty-first century. 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)

Scandal, lessons and the rise and fall of brands

usinesses and brands rise and fall like empires do. No condition is permanent but how you handle them is key. In the last one year a lot has happened with a few brands, from the H and M’s store shutdown in South Africa by a PR campaign gone badly as it was considered racist. And to the plane crashes by the Boeing 737 Max. Dana Air had a plane crash a few years ago, so far, they seem to have bounced back well by improved service and great PR (they even now have a foundation), with alluring brand ambassadors. Every now and then we have oil spillage by IOCs (International Oil Companies) around the world. The Niger Delta of Nigeria for years still remains a mess by Shell, ENI, TOTAL and Exxon’s consistent degradation of the environment. However, from them we can learn focus group engagements, PR, communication and a commitment to sustainability have played their part in their brands reputation recovery. For those with longer memories, the green and yellow sunburst of the BP logo will always be tainted by Deepwater. We have heard of the Enron Scandal (Enron was the “it” company at the turn of the century as it oozed with wealth, smarts, and power. However, this Houston-based energy company toppled into a spectacular bankruptcy due to a painstakingly-planned accounting fraud made by its accounting firm, Arthur Andersen. Once considered a blue-chip stock, Enron shares dropped from $90 to $0.50, which spelled disaster in the financial world when thousands of employees and investors saw their savings vanish with the company as it filed for an earnings restatement in October 2001”. We have heard of the death of Arthur

Andersen too. Speaking of Arthur Andersen, this Chicago-based company voluntarily relinquished its licenses to practice as Certified Public Accountants (CPAs) in the USA due to the Enron accounting scandal. This was a blow, considering that it was one of the world’s top five accounting firms prior to the scandal. It resulted in the loss of 85,000 jobs and corporate re-branding. Alicia Keys a few years ago was paid by Blackberry to be their creative director. She carelessly was busy promoting Blackberry on her tweets and mail. But the tweets showed that it was sent from iPhone! iPhone took advantage of that in return as their own promo! We see how perception management is key with the Soda wars. All Sodas are bad for your health, however some are a better tasting poison. Pepsi for example has consistently beaten coke in that perception game. It did beat Coke in the 80s blind taste challenge though it has less sugar. That was a huge boost on its brand. Pepsis is generally perceived to be healthier. Well, till Zero Coke recently was created in line with Diet Coke as a healthier option to knockout Pepsi! In the middle of most brand failure comes communication defects. By strategy and brand misrepresentation anyone can become obsolete, anyone can win. Like my friend will say, “the market is bisexual, anybody can blow! “ From Market leader like KFC, you can be reduced to Mr Biggs if you stay stale without stimulating our minds by communication and by optimizing feedback. Welcome to life, where tables turn. When you’re on top, the aerial view is the ‘wrongest’ view to the world. How could blackberry not

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sought out their Bold 5 hanging problems for years, and their battery life issues? How did they fall from being the inventors of smart phones and pop emails into not being mentioned on top apps. What did they do with all our feedback? Why did they not listen? As a business man, you can’t develop your marketing strategy in isolation. Watch your competition, time and market. Lookout for feedback, it’s the cheapest form of effective research. Never let a crisis go to waste, learn and make something from it. Failure isn’t always an enemy but the down payment for school fees on how to succeed better next time when you learn from it. Currently, the Boeing brand is undergoing serious damages at the moment. The 737 Max plane crash crisis wiped more than $25 billion off Boeing’s market value. In just a few days. And they seem to be doing poorly at closing out loopholes fast. I remember in one of our strategy meet ups for managers, I once asked, “as business owners and CEOs, if you were in charge of Boeing today, how would you improve Boeing’s brand reputation’? I remember one of my articles here was on Excellence. And I wrote of how very few firms in the world who have reached Six Sigma certifications. In management, the highest level of excellence is measured mathematically through Six Sigma. Boeing was one of them. It’s the closest any firm can get to excellence. We owe most of the most powerful breakthrough in aviation and aeronautics to them actually. But excellence is just not perfection. Perfection is an infinite chase but excellence can be reached. But the trick is to aim for

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EIZU UWAOMA perfection and if you fail, you’d at least land on excellence. For times when we fail temporarily which is part of life, it’s important to develop a template for damage control. Toyota and Lexus definitely have this. During the classic Lexus recall of the 90s, their corrective steps were legendary. Most recalls are handled by making an announcement to the press and mailing a notification letter to owners. Lexus, instead, call each owner individually on the telephone the day the recall was announced. When the owners picked up their cars at the dealership after the work was completed, each car had been washed and the tank filled with gas. If an owner lived more than a hundred miles from a dealership, the dealer sent a mechanic to his or her home. In one instance, a technician flew from Los Angeles to Anchorage to make the necessary repairs.

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

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Regulating religion HumanAngle

Femi olugbile

here was outcry from different quarters in the nation recently when it was announced that the government of Kaduna State was enacting a law that would require religious preachers to be registered before they could be allowed to preach in the State. To be sure, Kaduna as a State has had more than its fair share of ethnic and religious conflicts over the years. There is clearly a suspicion, at least in the circles of government, that some of the conflicts were caused, or substantially stoked, by religious preachers of different faiths who stirred up the public with their fiery oratory. A whole raft of hostile reactions arose immediately the new law was announced. The predominant narrative was that it was a frontal attack on ‘Freedom of Worship’. Christians and Muslims united to denounce the Law. In a country with more than two hundred ethnic groups and languages, as well as religious affiliation covering the principal Abrahamic religions and countless local forms of worship, it was easy to see the move as a not-so-subtle attempt by one religion to control its rivals and diminish their footprint in the public space. Religion is a very important aspect of the lives of Nigerians. Sadly, it is all-

too-often involved in defining or exacerbating the fracture lines in the fabric of social harmony. In purely statistical terms, the ‘majority’ religion differs from state to state, and sometimes from one local government to another. As a minimum requirement for getting such a variegated patchwork of different nationalities to call itself a nation, and despite its much-advertised flaws, the current constitution of Nigeria conveys that the nation is a secular state, where citizens would be left in freedom to practice their religions without interference or harassment from others. The truth is that even this ‘common-sense’ minimum requirement is regularly breached. Governments – State and Federal ‘donate’ public money for the building of places of religious worship. They use public money to sponsor Muslim and Christian pilgrims on religious pilgrimage. There are the subsisting anomalies of a ‘personal’ Law belonging to one religion being applied in some states, and even being used to adjudicate in ‘criminal’ matters. And Nigeria is a member of OIC – a ‘religious’ body by the very fact of its name. Despite the regular protestations of succeeding governments about not favouring any religion, the reality is a mutual wariness and a readiness to distrust the other’s intentions and actions. This is the context into which the Kaduna ‘preacher-registration’ law has been birthed. And yet it is true that, especially in some battle-line areas where strong geographical, ethnic and religious lines are drawn, some ‘preachers’ preach ‘hate’ messages that may stir up the people and lead to breakdown of law and order. In heavily ‘religious’ parts of the world, including Israel and Saudi

Arabia, the government makes an effort to ‘control the message’ through a system of patronage and participation. This is relatively easy to do in the ‘mainstream’ religious sects. The real problem, politically, is in the fringe or ‘radical’ extremes. A system of ‘Preacher-Registration’, however it is dressed up, is an effort to ‘screen out’ the ‘lunatic fringe’ and ensure that only people with a ‘mainstream’ message get access to the people. It is a reasonable desire. But does it work? It is intriguing to think of what might have happened if such a law had been in operation in Borno State before the beginning of the Boko Haram crisis. Mohammed Yusuf, from all accounts, started off with a relatively small congregation, and espoused a doctrine that was clearly separate from the mainstream. Would he have been ‘registered’ by a government agency if there was such a requirement? The answer, surprisingly, is not an obvious ‘No’, given the behavior of some of the officials in the State at the time! In Christian historiography, the reason the Jewish Sanhedrin persecuted Jesus Christ and insisted he should be crucified was that his message was not ‘mainstream’, according to the definitions of the times! Christ’s crucifixion, and the ensuing persecution of his Disciples, leading many of them to die in gory circumstances, were not displays of mindless cruelty but efforts at rigidly enforcing ‘Registration’ and ‘Correctness’. The Christian Church may be in a state of flux today, with ‘mainstream’ denominations losing membership and influence, and less institutionalized ‘Pentecostals’ on the rise. In Nigeria, there

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In heavily ‘religious’ parts of the world, including Israel and Saudi Arabia, the government makes an effort to ‘control the message’ through a system of patronage and participation

are Pentecostal congregations with huge followership and vast resources, without a clear hierarchy of doctrinal or even financial supervision. But that is another matter – for the Christians themselves to deal with as they see fit. Registration of Preachers, attractive as it may seem to Mallam El-Rufai, even granting the possibility that it is with the best of intentions, is not the way forward. If ‘Registration’ is not the answer, how is ‘religious preaching’ to be prevented from causing chaos in society? The answer is Law and Order. Unfortunately, this requires strong, independent institutions, which Nigeria lacks at present, but which it must create, in order to survive as a modern nation. Anybody actually seen preaching ‘Hate’ should be documented and prosecuted using the Law of the land, which must be impartial in content and impartially executed. Any sect or body institutionally or doctrinally preaching hate as its message must be sanctioned, but only through the process of The Law. It is what civilized societies try to do, albeit imperfectly. This is why even ‘crazies’ such as ‘The Church of Satan’ (with which our own FFK had a hilarious exchange on Twitter recently!) are able to show their faces in the public space. They are a joke to some, and annoyance to many. But if tomorrow they started to carry out human sacrifice on their altar or preach that other people should be shot on the streets of America, the Police would be in their face pronto! It is not a perfect freedom, but it is all we have - for now. Femi Olugbile is a Writer and Psychiatrist. Comments to synthesiz@ gmail.com’

How many business opportunities are your people throwing away?

ears back, during the tea break in a program that I attended, a lady who works in a major pension management company greeted me and a conversation ensued between us. The first thing I asked her was: “What makes your company different from other pension funds managers?” The answer she gave me brought chills to my bone marrow, and I did not know when I said to her; please don’t let your CEO hear about your response. She said to me, “well we basically do the same thing other pension funds managers do - you know there is no much difference in what everyone is doing”. By what she answered, she has just taken a business opportunity away from her company all the way to the competitors. She has just thrown away a business opportunity her company would have won.Sadly, many people are doing similar thing all to the detriment of their organizations. The reality is – no decision maker would be eager and excited to commit their hard-earned funds to any pension funds manager or to any other company that their representatives would not do a good job of presenting how their company is pretty much different from others. Now, one of the concerns of every CEO or leader should be, how many of my middle officers can answer with all clarity and sense of conviction the following questions below? 1. What do you think makes our company different? 2. Why do you think people should do business with us or buy from us? 3. Tell me the strategy and the direction of

your company – if you actually want us to do the business with your company. Not surprisingly, the senior people might not find it difficult providing the right answers, but how about the thousands of other employees who are out there struggling to stay in front of customers, how about the majority of the workforce who don’t have leadership position or acumen, how about the majority of your workforce who don’t attend retreat and are not aware of the company’s big picture and direction, how about the people who actually don’t know why customers should buy from your company? In this era of competitiveness, what makes organizations to thrive the most is knowledge and not just knowledge, knowledge shared (which is why I have over the years written against Silo Mentality in organizations). Most times, managers ignore a lot of thing and take them for granted. For example, it is less “result driving” to ask someone who is typically struggling with the numbers, why he or she didn’t meet the target again. Definitely, someone who was questioned by a director of a company to share what their company is doing differently and he or she was unable to communicate (just because of the knowledge gap) will lose the business to others. The best thing for a manager to do when someone is not doing well, is to ask the person, “Is there anything I can do to help you improve? Then ask probing questions to unearth what their challenges are and how you can help and you will see their performances improving. For organizations to succeed, the knowl-

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edge gaps should be collapsed. If as a CEO, executive or a very senior person, you know so much about the business and the company and your people don’t know that much, one may not expect so much from them. Remember, no one can do more until he or she knows more. I think this is the right time for CEOs and executives to share their knowledge and experience across to their people. Few years back, I asked a CEO of a bank, how much have you done in showing your people personally how they can communicate with outside CEOs and decision makers that will actually give them the businesses they are looking for? He saw the need to be doing that from time to time. When a CEO or an executive shares his personal experiences and how to deal with outside CEOs, how to communicate rightly to decision makers and how to win businesses, the people will listen and will try to put it into practice. Let’s I forget, my lady friend asked me what would she have replied me? I simply told her, answer in a compelling manner such that the person would be eager to know more about your company and to do business with you. I am a big believer of sales (with or without sales team or department) being every body’s job. This is simply because, everyone can bring one business or the other, but before you expect them to bring businesses; they would have to understand the business and what the company can deliver or do differently, and what makes the company different from others, and why people should buy from your company. When this knowledge gap collapses, your

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FRESH INSIGHT FOR CHALLENGING TIMES

‘Uju Onwuzulike’ people will begin to have clarity of the business, know why your company is different from others, understand why customers should buy from you, and understand the direction of the company and the strategic choices they are making – and with these knowledge and understanding, your people will be well positioned to grab opportunities that will come their way. Over the years, our “Driving Sales in Difficult Times Program” has helped organizations to systemically conquer their most unsurmountable sales challenges and same can happen to your organization too. As always, I welcome your comments, questions or requests. The trusted advisor, Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju.onwuzulike@mclgroup.net.

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Friday 26 July 2019

BUSINESS DAY

Editorial Publisher/CEO

Frank Aigbogun editor Patrick Atuanya DEPUTY EDITORS John Osadolor, Abuja 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 ASSIST. SUBSCRIPTIONS MANAGER Florence Kadiri

Tackling the growing challenge of insecurity across the country

he Federal Government through Vice President Yemi Osinbajo announced July 14 that it would deploy the military on the highways across the country. The goal is to curb the growing challenge of insecurity across the land manifested in attacks on citizens on the nation’s highways. It is not enough. We believe that the Presidency needs to adopt a holistic approach to the matter rather than the knee-jerk response of rolling out the armed forces to the roads. Prof Osinbajo’s promise was a response to the killing on July 12 of Mrs Funke Olakunrin on the Akure-Ore road off the Shagamu-Benin Expressway. Funke Olakunrin was the daughter of Chief Reuben Fasoranti, a leader of the Yoruba political group, Afenifere. Her death evoked strong passions and stirred angry reactions across the land, but particularly so in the South West. Beyond the pathos over the loss of a treasured human life, attribution of the cause of death remains a source of disputation. Initial reports by Afenifere spokesman Mr Yinka Odumakin said herdsmen attacked her

vehicle and killed her. The Nigerian Police at the nearby station claimed it was bandits while the Federal Government in a statement by presidential spokesman Femi Adesina blamed armed robbers. Whoever perpetrated this evil, the fact is that it brought to the fore once again the vexed issue of lack of security. The nation’s highways, from North to South, East to West, have become potential death traps due to the activities of dangerous criminals of varied descriptions. Affected roads include the Sagamu-Benin, Abuja-Kaduna, Ilesha to Ibadan and the AkureOre above. Citizens now fear to travel on the roads. One consequence is a change in travel patterns; flights to Akure Airport are now fully booked always as travellers avoid the roads. Wealthy and influential citizens now travel by train between Abuja and Kaduna for the same reason of insecurity on the highway. A security cordon surrounds the train and serves as an escort. Insecurity has translated to the reduced value of life in Nigeria. Citizens are on edge. There are also costly economic consequences as the vulnerability limits the movement of people, goods and services. The reduced mobility

would translate to a higher cost of goods. The more disturbing is the increasing exodus of professionals migrating out of the country. The brain drain features highly skilled personnel needed in vital areas such as healthcare, education, engineering and the sciences. Against this backdrop, it was shocking to hear the president on July 16 dismiss the concerns over security. He asserted that what Nigeria faced are “isolated incidents”. His statement directly contradicts his candid admission in his message to the country on April 19, 2019. In that Easter message, President Buhari lamented the poor state of the country with emphasis on the security situation. The President declared, “Our nation is currently gripped with gloom over unfortunate killings, kidnappings and violence, as seen in the recent tragic incidents in some states of the federation.” Buhari then pledged: “This administration will do all it takes to adequately equip and motivate our armed forces and other law enforcement agencies to enable them successfully confront these security challenges. We will not allow merchants of evil and death to overwhelm the nation. Under my watch, the nation will triumph

over them – terrorists, bandits, kidnappers and the like”. The Federal Government must now go beyond pledges and statements of intentions to deliver actual performance on security. Security was an anchor pledge of the president and his party in 2015 and again in the 2019 elections. Nigeria now needs to see the General in the President deploy strategies and tactics to end this mayhem. The first step is to empower the security forces to perform. Put an end to the stories of interference from higher up ordering stoppage of action against the enemy, from Boko Haram to bandits and terrorists. Allow the Police and others do their job the way their training dictates. All accounts speak of occupation of the forests bordering the highways by terrorists and bandits. The forces should comb the forests and flush out all groups and persons therein. A clean sweep is necessary. Finally, empanel a Special Task Force to tackle insecurity in the country. It should have a representation of all the forces, including paramilitary. Deploy a mix of stick and carrot. Tackle with urgency the insecurity in our land. It is unacceptable — enough of all that.

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Friday 26 July 2019

BUSINESS DAY

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Kidnapping: An injury to all

Francis Iyoha

idnapping is an evil that is not unique in our lifetime. There is clear evidence in the Bible book of Deuteronomy (chapter 24, verse 7) where it is recorded that “if a man is found kidnapping any of his brethren of the children of Israel and mistreats him or sells him, that kidnapper shall die and you shall put away the evil from among you.” Given that the book of Deuteronomy was written through the inspiration of God by the Hebrew Prophet, Moses (circa 1405 BC), it means, therefore, that kidnapping is a global enterprise that is as old as man. It is lucrative and has blossomed in scores of countries including Mexico, Colombia, Brazil, Philippines, Russia, Great Britain, Thailand, Guatemala, Italy, Somalia and now Nigeria, among others. In Nigeria, kidnapping is less than two decades old, yet its dehumanizing effects are alarming. In terms of security, Nigeria has not been like a lamb without blemish and without spot, but then, there was relative peace and people could travel

without much apprehension. Now, the iniquity of kidnapping is in her and has changed everything to one of strife and contention to the injury of all. It is unfortunate that kidnapping in Nigeria is not status sensitive as everyone is a fair game for the kidnappers. They kidnap any and everything that has breath. Animals, especially cattle and sheep are also endangered. The kidnappers rustle cattle in the fashion of criminals who were reported to have kidnapped six-ton working elephant in Thailand some years ago. The kidnappers ought to concentrate on the unholy privileged oppressors who have been unethically and illegally favoured politically and economically and have sown poverty bountifully in the country. Through their collective degraded morals, hate speech, oppression, despair, hunger, frustration, unemployment and injustice have been nurtured to maturity and one of the unfortunate outcomes is kidnapping. They should also reap kidnapping bountifully. But this is not the case. The kidnappers are not able or willing to establish a link between the reasons they are in the kidnapping business and the status of their victims. Now, kidnapping in Nigeria is tending toward a crescendo following a video that went viral not long ago. It was observed in the video that kidnapping business is now also becoming attractive to some men in uniform who have found it alluring to be in cahoot with notorious kidnappers. This is a trend that must be watched before

it gets too complex. A time it was in the Philippines that official figures showed that over 52 percent of the kidnappings in that country were carried out by police or military men. Can we afford that luxury in Nigeria where corruption has become a dominant culture, thus making fighting crimes dangerous and unsuccessful? If we do, in no time, we shall have a situation where kidnappers could just snatch people off busy streets, markets or hospital beds without a qualm. After all, some children and teachers have experienced kidnapping right in their schools! It would be good that we cease being trembled by kidnapers; but is there a solution? I read and hear that the Police is making some good efforts to ensure that no vestige of the evil of kidnapping remains in Nigeria. While not doubting the authenticity of the claim, my curiosity is, however, aroused especially that Nigeria cannot be said to be one of the countries in the world where credible information could be available on any subject. In many countries where kidnapping thrives, records are available to show the number of kidnappings per 100,000 population per year. Are we able to do that too? It is not that there is an incentive to hide the number of cases but the information is not just publicly available and many of the incidents may not have been reported. There is no one who knows, in the absence of credible information, how long kidnapping will remain in Nigeria. I perceive in my heart that

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One of the first critical steps is to erase from our perception that all kidnappers are Fulani herdsmen. Such an impulse toward selfserving bias does not have strong utility value

its end is not in sight and we must all, therefore, seek ways and take necessary steps to minimize it. One of the first critical steps is to erase from our perception that all kidnappers are Fulani herdsmen. Such an impulse toward self-serving bias does not have strong utility value. To think that all kidnappers are of the Fulani stock is an indirect but potent way of masking the true identity of the miscreants. However, the tendency for people to reach self-serving conclusions whenever a cloud surrounds a piece of evidence cannot be avoided. A number of persons have been arrested by the Police and other security agencies. Even though criminals could take on several identities, but one would expect the police to have detailed information on those that have been arrested; make such information available and save us the devious innuendo about kidnappers being solely Fulani herdsmen. Is that a herculean task? The answer is no! The second critical step is to have a database of the incidents and the ‘colour’ of kidnapping operations to guide decisions. Besides, there is also the need to teach kidnapping preventions at all levels, publish regular reports on kidnapping incidents, counsel victims who must have become psychologically, emotionally and financially drained and exhausted. Who should do all of these and who is currently doing them? Prof Iyoha is of the Department of Accounting, Covenant University Email:iyoha.francis@covenantuniversity.edu.ng

The imperative of defeating Fulani hegemony

widely circulated video shows the then leader of the Hausa/ Fulani dominated Northern People’s Congress (NPC) and the premier of the defunct Northern Nigeria, the late Sardauna of Sokoto, Ahmadu Bello, in a 1960 newspaper interview, saying, “The new nation called Nigeria should be the estate of our greatgrandfather, Uthman Dan Fodio. We must ruthlessly prevent the change of power. We use the minorities in the north as willing tools, and the south as conquered territory, and never allow them to rule over us and never allow them to rule over their future”. His statement was disgustingly hegemonic. It was a nauseating exposé of Fulani stratagem for absolute domination of Nigeria. The estate of Ahmadu Bello’s greatgrandfather, Uthman Dan Fodio, was limited to parts of northern Nigeria that Dan Fodio and his band of Fulani freebooters defeated and Islamized in their 19th Century jihad against Hausa and other tribal kingdoms. After Dan Fodio’s conquests, his followers continued the jihad, and would have taken it all the way to the Atlantic Ocean. In another instance, Ahmadu Bello said that: it was the British that interrupted the jihad to the Atlantic Ocean. As such, once the British leaves, they will continue their jihad, and ultimately, dip the Koran into the Atlantic Ocean. President Mohammadu Buhari is a Fulani fanatical Moslem and unabashed irredentist. Not surprisingly, his presidency has emboldened and empowered the Fulani, and provided them

the enabling environment to advance Ahmadu Bello’s dictum. So, unlike, at no time, since the British interrupted their religious thrust towards the Atlantic, the Fulani are heartened, determined and poised to continue their jihad. It is imperative that the other peoples of Nigeria, especially, the Igbo and Yoruba defeat the Fulani planned 21st Century jihad. Thus far, many Igbo and Yoruba leaders have not demonstrated the commitment and resolve needed to defeat the spear-head of the jihad: the killer herdsmen. In his first term, President Buhari, in his toxic nepotism, was totally indifference to the federal character in his political appointments; disproportionately, he appointed the Fulani to head the most powerful security agencies. His brazen anti-Igbo bias in these appointments elicited the usual Igbo outcry of marginalization. Secondly, the Igbo and Igbo communities have suffered enormously from his administration tacit support for Fulani herdsmen’s murderous binges across parts of Nigeria. Therefore, the Buhari presidency is antithetical to Igbo political interests. Paradoxically, most Igbo governors campaigned for his re-election. . According to villagers living in parts of Ondo State, Fulani herdsmen had taken over their area, and converted the Ondo State Government forest reserve in Odigbo Local Government Area into a militia camp. They insist that the herdsmen terrorizing the area reside in the forest and their other hide-outs tucked deep in the bush. They graze their cows www.businessday.ng

by the road, and then, strike to kill and/ or kidnap, and run back into the bush. It is a narrative corroborated by different newspaper accounts. In addition, newspaper reports and eyewitness accounts buttressed widespread allegation that Mrs. Funke Olakurum, the daughter of the leader of Afenifere, Chief Reuben Fasoranti, was killed by herdsmen that sneaked out from the bush to kill and kidnap along the Benin/Ore road. Lamentably, for unfathomable reasons, some Yoruba leaders are holding briefs for the killer herdsmen. Contrary to overwhelming evidence, the Ondo State government denied the presence of Fulani herdsmen in its forest reserve. A government spokesman dismissed it, “It is a lie; herdsmen are not in the reserve”. And, in his desperation to exculpate the herdsmen from the murder of Mrs. Funke Olakurum, the foremost Yoruba political leader, Ahmed Tinubu, said, “I will ask where are the cows”. It was an insincere and hypocritical question that incensed many Nigerians. To insinuate that the only discernible feature of Fulani herdsmen is a throng of cows is hogwash. The killer herdsmen kill and rape, torch and raze down entire communities, and seize, occupy and rename villages. Their excessive brutality and criminality debunk the pretext that their concerns are limited to grazing routes and space; they have a hidden agenda: total subjugation of the peoples of Nigeria. These herdsmen are not renegades or lawless adventurers randomly kidnapping, killing

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Tochukwu Ezukanma

and stealing. They are the foot soldiers of an orchestrated Fulani expansionism, with the precise goal, as articulated by Ahmadu Bello in the video, to take over Nigeria politically, economically, and religiously. The master-minds of this irredentist design have the resources, resolve and ruthlessness to attain their goals. The other ethnic groups of Nigeria, especially, the Igbo and Yoruba must forestall their nightmarish design. It demands our organizing, training and arming ourselves to engage Fulani hegemony fire for fire. It is only after they have been beaten to a bloody retreat that the absurdity of their planned 21st Century jihad will crystallize to them. It is horrifying to image the triumph of a Fulani jihad in 21st Century Nigeria. It will reduce us to a defeated, broken and battered lot, on our knees and in trepidation of our new masters, watching helplessly, as the triumphant jihadists gleeful dip their Korans into the Ezukanma wrote from Lagos, Nigeria maciln18@yahoo.com 0803 529 2908

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Friday 26 July 2019

BUSINESS DAY

cityfile C’River decries involvement of youths in cultism MIKE ABANG, Calabar

L - R: Obiora Ozoekwem, regional manager (Lagos Region) Trustfund Pensions Limited; Christopher Fakanlu, head, Compliance Department Trustfund Pensions limited; Nkem Oni-Egboma, MD/CEO Zenith Pensions Custodian Limited and Osawaru Ekpen, staff of Zenith Pensions Custodian Limited.

Operatives storm kidnappers’ den on Benin-Ore road

…wrappers, expended pellets recovered

he police in collaboration with other security agencies have stormed a suspected kidnappers’ den along Benin-Ore highway to ensure safety of travelers along the road. The road in recent times had witnessed increased cases of robbery, kidnapping and killing of travelers. Commissioner of Police (CP) in charge of Edo, Mohammed DanMallam, led officers of the command in the joint operation on Wednesday. A detachment of the

MOPOL 5, Benin, led by the commander, ACP Mohammed Rabiu, was also involved in the operation which took place on the notorious spot in Edo section of the highway. Also involved was a team from the Nigerian Security and Civil Defence Corps (NSCDC), led by the state commandant, Makinde Ayinla, and a squad from the 4 Brigade, Nigerian Army, led by the brigade’s operations officer. DanMallam, who spoke with newsmen during the operation, said that “taking the battle to the kidnappers’

den” had become expedient in order to permanently dislodge the criminals. According to the CP, “the battle line is now drawn.” The CP, who also supervised the clearing of the bush around the hot spot, said that the measure was part of the strategies jointly agreed on by the security agencies and Edo State government. He explained that the criminals took advantage of the bushes to perpetrate crimes, saying in view of this, the bush would be cleared and the area graded to about 50 metres from the road. The police chief added

that with the clearing of the bush, it would be difficult for the criminals to attack road users. He further disclosed that many arrests had been made along the road with several arms and ammunition recovered. The CP also directed the immediate deployment of some personnel from the Special Anti Robbery Squads (SARs) from the Edo command to the area and urged the NSCDC to do same to complement the command’s efforts. Some expended pellets and wrappers were recovered in the bush during the operation.

Lawmaker wants flood disaster averted in Apapa JOSHUA BASSEY

member of the House of Representatives representing Apapa federal constituency, Mufutau Egberongbe, has called on Governor Babajide Sanwo-Olu to reconstruct the drainage system in Apapa to avert an ‘impending disaster’. Egberongbe, in a statement, also urged the speaker of House of Representatives, Femi Gbajabiamila, to support the state in rebuilding the Apapa canal otherwise

known as “System 5’’. The lawmaker equally urged the Lagos State House of Assembly to urgently rescue the situation to avoid unexpected flooding and spread of diseases. “There is the need for these leaders to as a matter of urgency assist in clearing the ‘System 5’ drain. This drain travels from Onilegogoro in the Surulere area through Gasikiya road in Apapa Iganmu and leads to the drain by G overnment Press in Ajeromi-Ifelodun local government area of the state.” www.businessday.ng

Egberongbe said it would be better to clear the drain during this raining season to stem incidences of flooding and mitigate polio-related ailments. The lawmaker said the decision to draw the attention of Sanwo-Olu, Gbajabiamila and the sp eaker of the Lag os Assembly, Mudashiru Obasa, was because of their passion for development. According to him, it is necessary to prevent what can later become an emergency. Egberongbe further urged Gbajabiamila to

call on the federal agencies to partner with the Lagos State government to clear the drain as well as others in such condition across the state. He also called for the reactivation of the railway system in Apapa to ease movement of goods from the port to other parts of the country. He said this had become imperative as part of measures to resolve the gridlock around the area just as he urged port operators to embrace modern cargo tracking equipment and scanners for effective operations.

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ross River State government has decried the high rate of youth involvement in secret cult activities with attendant loss of lives in the state. The deputy governor, Ivara Esu stated this when the leadership of the National Youth Council of Nigeria, Cross River State chapter visited him in Government House, Calabar. Esu, a for mer vice chancellor of the University of Calabar, who want the youths to retrace their step, lamented arson and killings as a result of cult related activities in the state. He said there was nothing wrong belonging to an

association, but warned that when the activities of such an organisation go out of the acceptable norms of the society, it becomes barbaric and must be checked. Esu said that state government was proud of the achievement of the youth council in view of their contributions to the socio-economic development of the state. The deputy governor, who noted that the governor, Ben Ayade was passionate about development, assured that appointment of political office holders would be youth- friendly. He called on the youth to support government’s industrialisation drive for the benefit of the citizenry.

Fake AEDC ‘official’ charged with duping residents

he police have arraigned an applicant, Anyamale Modestus, in an Upper Area Court, Mpape, Abuja for allegedly impersonating an Abuja Electricity Distribution Company (AEDC) official and duping unsuspecting residents. Modestus, 35, who resides in Anguwan Madaki, Kabusa, FCT, Abuja is charged with two counts of criminal trespass and impersonation. The prosecution counsel, Edwin Ochayi, told the court that the case was reported at the Apo police station by one Gregory Udo Eso, of AEDC company. He alleged that on July 19, the defendant criminally trespassed into the office of the AEDC, parading himself as a staff of the

company and attending to customers complains. Ochayi said that the defendant collected various sums of money with a promise to supply some residents prepaid metres. The prosecutor said that during police investigation, it was discovered that the defendant was not a staff of the company and could not give satisfactory account of his actions. He said that the offence contravened the provisions of sections 348 and 132 of the Penal Code. The defendant, however, pleaded not guilty to the charges. The judge, Hassan Muhammad, admitted the defendant to bail in the sum of N200, 000 with one reasonable and reliable surety in like sum. Muhammed adjourned the case until August 28 for hearing.

Zamfara seeks FG’s intervention in resettling IDPs

amfara State government has sought the Federal Government’s involvement in the effort to resettle Internally Displaced Persons (IDPs) occasioned lingering violence in the North-Western state. Security reports indicate that there are more than @Businessdayng

30,000 IDPs, forced out of their communities by bandits that have persistently attacked the rural areas. Officials of the state have said that most of the displaced persons were women and children, with many of them living in schools, uncompleted buildings, and along the streets.

Friday 26 July 2019

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

MARKETS

Retail investors dump N78bn worth of stocks in June, the most in 2019 DAVID IBIDAPO

etail investors i n Ni g e r i a n equities are reducing their exposure significantly, refusing to take advantage of cheap stocks. In the re cently re leased NSE foreign portfolio investment report of June 2019, retail investors sold off stocks worth N78.33 billion against an inflow of N23.41. This puts net flow during the period at a deficit of N54.92 billion in June worsening from a deficit of N41 million in the previous month. Analysis of retail investors’ activities in the last 6 months revealed that net flows declined by more than half in May 2019 from N9.49 billion to N3.48 billion in April. This trend continued till net flows plunged into a deficit of N41 million in May 2019. Analysis revealed that while in the last 6 months retail total inflow transactions have increased at an average of 5 percent, outflow transactions outpaced inflow by 47 per-

cent as June recorded the biggest outflow during the period. In contrast to trend witnessed in the retail space of the Nigerian equity market, institutional investors on the other hand have seen net flows improve in the last 2 months as they slowed down exit from the current bearish market in June while taking caution on exposure into the market.In June 2019, institutional outflow transactions during the period slowed significantly by 60 percent to N18.24 billion against N46.05 billion in May, while inflow improved slightly by N1 million to N50.59 billion. This puts net flow during the period to a surplus of N32.35 billion in June, a further improvement from a surplus of N4.53 billion in the previous month. While in the last 6 months outflow transactions of institutional investors have accelerated at an average of 10 percent against 47 percent in retail transactions, inflows have paced faster during the period at an average of 29 percent

against 5 percent in retail transactions. The NSE witnessed a surge in institution inflows by 189 percent in

May thanks to the listing by introduction of MTN Nigeria which saw the ASI index on a 6 trading day rise in market value.

The last 3 months have seen retail investors’ pessimism worsen neglecting opportunities in bellwether stocks whose

stock prices have neared their 1-year low levels. This saw outflow in the last 3 months accelerate significantly by 142 percent on the average against a decline by -15 percent in institutional outflow transactions. Also retail inflow transaction underperformed grossly at 22 percent in the last 3 months compared to an average of 70 percent growth in institutional inflow transactions. In addition, as at June, total transactions at the nation’s bourse increased by 34.42 percent from N221.13 billion (about $713.7 million) in May 2019 to N297.25 billion (about $970.1 million) in June 2019. The performance of the current month when compared to the performance in the same period ( June 2018) of the prior year revealed that total transactions also increased by 58.29 percent. In June 2019, the total value of transactions executed by domestic investors significantly outperformed transactions executed by foreign investors by 34 percent.

AVIATION

Boeing records biggest ever Q2 loss on MAX 737 grounding …as Fitch and Moody’s lower debt outlook to negative OLUFIKAYO OWOEYE

erospace giant, Boeing, reported a second-quarter loss of $2.9 billion, its worst ever, topping a $1.6 billion setback during the financial crisis in 2009, as revenue tanked and costs jumped for the aircraft manufacturer. This is as its flagship 737 Max jet remains grounded after two fatal crashes in five months. Second-quarter figures of the Chicago-based plane

manufacturer shows Boeing lost $5.82 a share with revenue plummeting to $15.8 billion. Free cash flow was negative at $1.01 billion, revenue from commercial aircraft unit tanked 66percent to $4.72 billion, defense and space revenue surged 8percent to $6.61 billion while global service revenue increased 11percent to $4.54 billion Also during the period, it delivered 104 fewer airplanes to customers in the second quarter compared with last year, as deliveries of the company’s mass-

produced 737 Max aircraft are halted, and recently took a charge of $4.9bn after the crashes. In October, Lion Air Flight 610 crashed just minutes after taking off from Jakarta, Indonesia, killing 189 people on board. Also in March, another Boeing 737 Max, Ethiopian Airlines Flight 302, crashed minutes after take-off killing all 157 people on board. Rating agencies Moody’s and Fitch earlier this week lowered the outlook on Boeing debt to “negative,” citing the MAX situation, which

Fitch said would make Boeing’s reputational standing a “watch item for the next year or more”. However, the rating agencies retained their investment-grade credit rating on Boeing debt, given the company’s liquidity, financial flexibility and dominant position in the market. Fitch has an ‘A’/’F1’ rating on Boeing debt, while Moody’s has an ‘A2’ rating. Jonathan Root, Moody’s Senior Vice President, said the change in outlook to negative principally reflects the grounding of the com-

pany’s 737 MAX aircraft which will run longer than we had expected, which will compound its operational disruption, costs and the size of the investment in working capital as production remains at a substantial rate of 42 per month According to Fitch, 737 MAX will remain a concern throughout the aviation credit sector into 2020, while the situation will reduce much of the financial cushion Boeing has at the current ‘A’ rating, leaving the company more exposed to other unforeseen events or

industry developments The grounding of the 737 MAX has sent shockwaves through the industry and pushed back the launch of a new Boeing aircraft. The company also faces numerous lawsuits filed by families of the victims of the two crashes. The company announced plans to donate $100m to victims and communities affected by the crashes. It also could potentially face regulatory penalties, including from a criminal investigation by the US justice department.

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

Friday 26 July 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

OIL & GAS

11plc’s half-year profit falters on higher cost of sales, finance cost SEGUN ADAMS

double digit increase in cost of sales and a surge in finance cost hit the profit of 11plc (Mobil) in the first half of 2019, according to the company’s financial statement that was made public on Wednesday. Despite an improvement in the company’s revenue in the period, it reported a profit of N4.173 billion, 23 percent less than it made in the same period last year. Revenue of 11plc increased by 8 percent year-on-year to N92.81 billion compared to N85.91 billion. Across all segments, income improved and the company noted an inflow of N606 million from sales of Liquefied petroleum gas

(LPG), a segment it had exited for two decades but revived last year. The improvement notwithstanding, direct cost rose faster by 11.38 percent to N85.27 billion squeezing its gross profit which fell by 19.36 percent to N7.54bilion. Top-line was N9.35 billion in H1 last year. Gross margin, which shows how much 11plc retained from every N100 revenue adjusted for its direct cost, fell from N10.61 in the half-year period in 2018 to N8.33 in the corresponding period this year. In addition, income from other sources fell by 8.6 percent to N4.05 billion compared to N4.43 billion last year. The decline in income affected operating profit of 11plc despite a slowdown in its Selling, General and Ad-

ministrative expenses and an inflow from its other operating income. Operating income fell 17.8 percent to N6.38 billion. An 82 percent slump in finance income and a significant rise in finance cost exacerbated the company’s numbers as profit before tax fell 23 percent to N6.19 billion as against N8.06 billion last year. The Oil and Gas Company retained N4.5 as profit from every N100 revenue in the first six months of 2019. This is N1.8 naira less than it made in the same period of 2018. Earnings per share declined to N11.57 per share from N15.11 in the review period. The shares of 11plc remained flat at N158 per share at the close of trading on Wednesday while the market closed 0.2 percent lower.

L-R: Bridget Ekeogu, regional sales manager, Lagos Island; Robert Giles, head, product insight and capabilities, all of Access Bank Plc; Stanley Igwe; Samuel Ebu, winners N1Million Naira, DiamondXtra monthly draw; Njideka Esomeju, regional sales director, Lagos Island; and Adaeze Umeh, head consumer banking propositions all of Access bank Plc during the presentation of cheques to Diamondxtra winners in Lagos. Pic by Pius Okeosisi

MARKETS

EM growth set to slow on weak industrial sentiment, trade tension ISRAEL ODUBOLA

he pace of economic expansion in emerging markets (EM) probably decelerated in June, on the heels weakened industrial productivity coupled with subdued global demand and heightened volatility amid on-going trade friction between United States and China. According to the Washington-based Institute of International Finance (IIF), growth forecast for EMs is projected at 3.5 percent in June, 30 basis points lower compared to 3.8 percent in May. The global finance body believed that trade actions and tensions have weighed on global current account imbalances, as trade has been diverted to countries with lower or no tariff. Manufacturing sentiment, which has been worsening in

recent times, becoming more broad-based globally. The world economy tumbled in first half of the year, with trade and investment flows between countries falling more than expected. Meanwhile, despite the effect of trade spat between world’s two biggest economies on EM market, the dovish stance of major central banks spurred foreign investors’ appetite to attractive carry trade in EMs assets. Total net foreign portfolio (FPI) inflows to EMs nearly tripled to $193.9 billion in the first half of 2019, from a low of $65.1 billion in the preceding half year with 77 percent directed towards debt. With accommodative stance across developed markets, the global finance body expects portfolio flows to jump 11 percent to $344 billion over 2019. Industrial activities in world’s second largest econ-

omy, China weakened once again in the month of June. Manufacturing Purchasing Managers’ Index (PMI), which measures the performance of a country’s industrial sector, fell to 49.4 points in June from 50.2 points in the previous month, missing market expectations of 50 percent. Little wonder, Beijing contracted 6.2 percent in second quarter, its first downturn in almost three decades, increasing the prospect of further policy easing by People’s Bank of China in coming months. Manufacturing activities in Africa’s biggest economy, Nigeria, tracked by PMI, slowed to 57.4 points in June, compared to 57.8 points in the previous month as decrepit infrastructure, sluggish economic growth, tough operating condition and high cost of credit thwart producers’ performance.

Stanbic IBTC, ARM Money Market Funds assigned Aa(F) rating by Augusto & Co. on risk aversion nature

L-R: Ebiaho Emafo, MD, Eroton Exploration and production; Wale Olafisan, MD, Amni Petroleum; Audrey Ezigbo, executive director, Falcon Corporation Limited/president, Nigeria Gas Association; Folakemi Fatogbe, representative of the deputy CBN governor, director of risk management, CBN; Ladi Badi, MD, Shoreline Natural Resources; Ainoje Alex Irune, COO, Oando, at the Nigeria Oil and Gas Conference and exhibition 2019 recently in Abuja.

L-R: Emmanuel Etomi, GM, corporate services, FIRST E & P; Jackson Ekuweremi Leo, FPSO trainee; Matthew Sele-Epri, chairman, KEFFES Rural Development Foundation; Prosper Abo, Yinson Holdings; Warri Daniel Mughan, FPSO trainee, and Rotimi Adefarasin, GM, non-operating ventures and business planning, FIRST E & P, at the announcement of the recruitment of trainees for the Corporate Social Performance Initiative of FIRST E&P in Lagos.

…as 3 additional MMFs expected to launch before year-end ENDURANCE OKAFOR

t a n b i c I BT C a n d ARM Money Market Funds topped the list of Agusto & Co.’s live ratings of 14 selected money market funds out of the 18 registered by the Securities and Exchange Commission (SEC) on the back of their risk aversion nature. According to the Lagosbased rating agency, an Aa(F) rating means a minimal to low exposure to downside risk (impairment to the net asset value) in the medium term.

“Money market funds are set to continue to dominate the collective investment schemes market in the short to medium term, accounting for a projected 28percent of total non-pension AuM by 2021 (2018: 25%), with at least three additional MMFs expected to launch in 2019 alone,” the rating agency said A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as; cash, cash equivalent securities, and high credit rating debtbased securities with a shortterm, maturity-less than 13

months. As a result, these funds offer high liquidity with a very low level of risk. Other money market funds that made the top 10 list of Agusto & Co.’s live ratings included; FBN Money Market Fund (Aa(F)), Abacus Money Market Fund (A+(F)), AXA Mansard Money Market Fund, (A(F)), United Capital Money Market Fund (A(F)), Chapel Hill Denham Money Market Fund (A(F)), Meristem Money Market Fund (A(F)), EDC Money Market Fund (A-(F)) and Zenith Money Market Fund (A-(F)).

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L-R: Barnabas Eke, regional public affairs and communications manager (East & Central), Nigerian Bottling Company (NBC) Limited; Etubom Edem-Ita Essien Ededem, member of Obong Traditional Council, Calabar; Ifeoma Okoye, sustainability and community affairs manager, NBC; Eyo Effiom Henshaw, assistant secretary, Etuboms Traditional Council, Calabar, and Ekuma Eze, public affairs and communications director, NBC, at the NBC Youth Empowered Workshop in Calabar, Cross River State.

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Friday 26 July 2019

BUSINESS DAY

MONEYINSIGHT

EY swells rank of standard API advocates in Nigeria FRANK ELEANYA

lobal professional services firm, Ernst & Young (EY) has joined the list of organisations advocating for a standard Application Programming Interface (API) for Nigeria’s financial services industry. This followed an announcement on Wednesday by Open Banking Nigeria, the foremost advocate of open banking in the country, that it has sealed an agreement with EY. The agreement ushers EY into the ranks of other leading financial services stakeholders analysing the need of the industry for a common API standard among banks and other financial institutions, support the development of API standards, promote adoption with stakeholders – players and regulators – and enable further innovations in Nigeria’s financial services industry. Application Programming Interface (API) refers to a set of routines, protocols, and tools for building software applications. An API allows an application to communicate with another application,

or an operating system, database, network, etc. For instance, Google Maps API allows an application to integrate third party content, such as restaurants overlaid on a Google Map. A modern application is typically built on top of many APIs, where some of these can also depend on further APIs. Advocates like Open Banking Nigeria, believe that the introduction of a unified API across financial institutions creates a foundation upon which data can be

effortlessly accessed and securely shared, real-time. A unified API would among others, empower individual and corporate users of services within the payment ecosystem to instruct their service providers to share their bank balance and transaction information with regulated Account Information Service Providers (AISPs). This interoperability would result in the development of modern payment services, cost savings for operators and increased in-

novation while also guaranteeing information security and privacy, which would not cause an uneven playing field for industry players. “We understand that customers also expect more convenience and flexible access to services, driven by broader digital experience and emerging technology,” Dapo Adewole, partner, Technology Advisory, at EY said in a statement. “It is our desire to bring this goal to fruition, while working with other players in the industry.” Open Banking seeks to create a system in which customer data can be easily, yet securely, accessed by different providers. The membership of Open Banking Nigeria has been growing and now includes companies like 2iLab, Africa’s Talking; Flutterwave; Forloop; Global Accelerex; Heritage Bank; Kinexus; Netplus; Open Vector; Paystack; PwC; TeamApt; and Wallet.ng among others. Adeoye also noted that EY’s membership would lead to the development of the nest generation of API standard for the Nigerian financial services industry. Already acknowledged as the future of banking on the globe,

the adoption of Open Banking in Nigeria would enhance the service offerings of players in the financial services industry, improve customer engagement and build new digital revenue channels. It would also transform the operation of other industries, including telecommunications, power, hospitality, retail, and insurance, seeking to leverage data for the improvement of their operational scope and service offerings to clients. In Nigeria the Open Banking movement is gaining momentum. The Central Bank of Nigeria (CBN) has at several forums indicated willingness at promoting Open Banking in the country. Most recently, during the unveiling of the new roadmap for his second term, Godwin Emefiele, governor of the apex bank revealed that priority will be giving to Open Banking in the development of the Payment Systems Vision PSV 2030 as it considers the concept as one of the top global trends and new practices in payments that have been deployed in other countries which must be considered in Nigeria.

Google brings ‘Nigerian’ touch to major app revisions … Traffic, routes data for Okada, Danfo, other commercial transportation to feature in Google Maps … Updates reflect growing partnerships with local developers CALEB OJEWALE

rom Google search to YouTube, Maps and other Apps, Google is used by millions of Nigerians every day, however, these apps have mostly operated with little to no local touch that address peculiar needs of the local users. Even the voice used by the Google assistant (globally), is a Western accent many people in places like Nigeria struggle to understand, but today, this has changed, along with other locally contextualized revisions, some featuring in Nigeria before anywhere else in the world, and more are expected to follow. The newest improvements to some Google Apps announced at the Google for Nigeria event on Wednesday, have revealed what appears to be a conscious effort by the Tech Giant to make purpose-built apps for Africa’s most populous nation. Most striking perhaps, is the popular Google Maps used by commuters to locate places they are not familiar with, and more important for many users in traffic prone cities like Lagos, for estimating traffic and avoiding it when possible. However, considering the bulk of current users of Google Maps are driving themselves or being chauffeured, the newest update in Google Maps targets the millions of daily commuters who use public transportation. Google for the first time, has introduced a new mode for motorcycles popularly known as ‘Okada’ in Nigeria, using Artificial Intelligence and Machine Learning to calculate

travel estimates (a feature currently only available for vehicles). The motorcycle mode will now be available in Nigeria, Benin Republic, Togo, Ghana, and Rwanda. Working with Road Preppers, a Nigerian tech start up that is said to have mapped all the roads in some cities including Lagos, Accra, and Nairobi, Google has also included a feature which allows users taking public transportation to find routes to their destinations. It shows them bus stops (by local and colloquial name), as well as traffic estimates for the commercial buses popularly known as “Danfo”. Millions of man-hours are lost commuting in traffic prone cities like Lagos, and with an efficient mapping system, individuals would be able to commute faster and better utilize their time. Samuel Adeloye, founder/CEO of Road Prepper, who wouldn’t disclose the financial value of his partnership with Google, citing confidentiality told BusinessDay that data from ‘Lara’ a platform he created and already used by over 300,000 users has now been integrated into Google maps, to provide the localized transport and routes information. Lagos, Abuja, Ibadan, Kaduna, Accra, Nairobi are cities that have currently been mapped by the platform, with all of these data now integrated into Google Maps. For instance, with these a user can through the App, know what Buses to take when going to a place, the bus stops to alight, and the connecting vehicles to take; either for Okada, Danfo, Keke or other public transport modes www.businessday.ng

mostly used by the average Nigerian. If you wanted to get from point A to B, you could use Google Maps, Adeloye explained, but an estimated 80 per cent of commuters use public transport. In developed countries, information on public transportation is often available for commuters, but not in Nigeria where public comminuting is predominantly run by informal transit and information on travel time/directions is rather unreliable. “Every day, people in Nigeria, Africa and around the world turn to Google for help,” said Juliet Ehimaun Chiazor, Google Nigeria country director. “We hope that the products and updates we’re announcing today will make Google even more helpful for fueling people’s hustles and get-

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ting things done. “We remain committed to bringing the transformational power of technology to everyone in Nigeria and Africa as a whole,” she said. According to Ramesh Nagarajan, Google’s director of Product Management, apart from the Google Map updates capturing Nigeria’s informal transport routes, ‘Street view’, which has been accessed over a million times in Lagos is now launching in Abuja, Benin, Ibadan, and Enugu, to further improve accessibility and mapping of locations across Nigeria. Also, the voice assistant used particularly during navigation, can now be set to one with the “Nigerian English”, localising for the first time anywhere in the world, the digital assistant used on @Businessdayng

the Google platform. “Technology does not have all the answers but it can play a critical role in improving our lives in Africa,” said Moustapha Cisse, head of the Google Artificial Intelligence (AI) Research Lab in Accra, Ghana. “We need to build systems that are fair, align with the values of society and make decisions we can understand.” At the core of the advancements being made at Google are Artificial Intelligence and Machine Learning, and as Cisse explained, an important aspect of Google’s mission is to ensure the deployment of AI and ML in Africa, to contribute to the education of young Africans to use this technology. Furthermore, putting the knowledge and skills to build intelligent systems in the hands of people who have these challenges, so that they can solve their problems on their own. Google, through its collaboration with local developers in Nigeria, says its working to build a self-sustaining ecosystem that can develop solutions fit for the continent, and good enough for the rest of the world. Other announcements made apart from navigation instructions in a Nigerian voice for both motorcycle and car driving modes, include Gallery Go, Google Go updates, Google Lens and Bolo, and a Nigerian culinary experience from Google Arts and Culture. Google has also partnered with the Nigerian Government to make an online safety curriculum available to all primary and secondary school students in the country, reaching an estimated 56 million Nigerian students every year.

Friday 26 July 2019

BUSINESS DAY

INTERVIEW ‘We expect attractive valuations to propel bargain hunters to take positions ahead of earnings announcement season’ Fiona Ahimie is the Chief Executive Officer/Managing Director at FBNQuest Securities Limited, a subsidiary of FBNQuest Merchant Bank; in this interview with BusinessDay’s Endurance Okafor, she shared her projection for the Nigerian capital market and how FBNQuest Securities has been able to return profit to investors. Excerpt:

In 2017, the Nigerian Stock Exchange (NSE) was named the third best performing stock exchange in the world after recording over 43 percent return-on-investment. What is your opinion of the market today? he Nigerian economy has been through a lot since 2017 and don’t forget the stock market is a barometer of the economy. The economy recovered from recession in Q2 2017 whiles the introduction of the I&E window by the CBN also helped restore some level of FPI inflows into the economy. This helped in effectively addressing some of the difficulties experienced in FX repatriation by the offshore community, during that period. The market returned positive in 2017, following 3 years of consecutive decline (2014, 2015 and 2016 down -16.14%, -17.36% and -6.17% respectively). In 2018, the market declined by -17.81 percent as foreign portfolio investors exited the emerging and frontier regions following a hike in US Fed rate. Currently, the market has fared poorly, largely from the ripple effect of the continued rate hike, US-china trade wars and the attendant concerns around the global economic outlook. Meanwhile on the local front, a relative improvement in Brent crude prices has yet to boost the local bourse which is down -10.28percen ytd. Nonetheless, investors (both foreign and local) have largely remained on the side-lines still in search of clear cut policies to guide investment decisions.

drawn from the largest 40 stocks (by market capitalization) and these stocks are screened based on proprietary parameters identified from our research as drivers of the market performance. The returns within this solution are driven by the equity market performance. We advise investors to allocate a portion of their investible funds to equity solutions, in line with the risk appetite, as equity markets are expected to provide higher returns over the long term. As more and more investors apply the concept of asset allocation, we expect to see investor allocations to our solutions in this risk bracket grow.

their investment decisions.

our retail business.

Industry stakeholders are of the opinion that the capital market mirrors the performance of the larger economy, what do you think should be the catalyst for double digit growth? As the major source of appropriate long-term funds, the capital market is clearly crucial to any nation’s economic development. Specifically, the capital market is crucial as it facilitates economic growth by, mobilizing savings from numerous economic units such as individuals and institutional investors for users such as governments and the private sector. Increased investment in critical economic infrastructure and improvement in the implementation of capital budgets would go a long way to address the infrastructural deficiency in the economy as this would reduce the average cost of production and enhance economic growth, all things being equal. Empirical studies have shown that sustainable growth can be attained through technological development and more friendly business policies which support new and existing businesses.

At the end of the first half of 2019, the equity fund where you have FBN Nigeria Smart Beta Equity Fund reported negative return and a drop in the Net Asset Value (NAV), what are you doing to ensure the Fund does not drag your investment portfolio at the end of 2019? At FBNQuest Asset Management, we think of our various products as “solutions” offered to the investing public. Different solutions tackle different investor categories and needs. The FBN Nigeria Smart Beta Equity Fund is our equity-based fund which invests a minimum of 75percent of the total portfolio in quality stocks of Nigerian companies. The Fund uses a simple systematic rules-based investment strategy that is designed to capitalize on equity market inefficiencies specific to the Nigerian market, as established by extensive in-house research. The strategy is commonly known as smart-beta investing and the Fund is the first of its kind in Nigeria. The Fund’s constituents are

For the week-ended 12 July 2019, FBNQuest Securities Limited was among NSE top 10 brokers who were responsible for 72.69% of the total value of stocks traded on the exchange, how was it able to pull so much volume and value? We have been able to leverage on partnerships with global brokers and our clients-both local and international, to drive our volumes. Beyond the trust we have built with partners and clients, we also ensure to keep trail of major transactions around us to maintain visibility and participation. We network a lot and try to be around the right circles. We have also deployed and embraced digitalisation to promote and grow

Increased investment in critical economic infrastructure and improvement in the implementation of capital budgets would go a long way to address the infrastructural deficiency in the economy

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‘

Despite the listing of two Telco companies on the Lagos bourse, the NSEASI has reported negative return year-to-date, what will it take to have returns as bullish as that of 2017? The listing of the Telcos on the Nigerian Stock Exchange was very positive for the market and we saw some short term impact. The first listing, which was MTN, re-ignited an otherwise comatose market as block transactions were executed both on and off market. Most of the activities in MTN Nigeria were local. The stock was listed at N90.00 and peaked at N159.30 before profit-taking set in. On the back of this listing, the NSE ASI reversed its negative pre-MTN listing returns of -10 percent at the time to -0.39percent up until profit taking set in. The listing of the two Telco giants is most likely going to encourage further high profile listings in the market. What is the benefit of listing if investor sentiment is weak? Additionally, foreign investors accounted for 50percent of the value of trades on the NSE as at the end of May 2019 and as such their contribution or perception of our economy will likely drive

Fiona Ahimie

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According to data by the Securities & Exchange Commission (SEC), as at the end of H1 2019, FBN Fixed Income Fund controlled the second highest asset while FBN Money Market Fund FBN and FBN Nigeria Balanced Fund each had the 3rd highest asset on the Money Market Fund and Mixed Fund asset class respectively. How are you able to attract such asset under management? We strive to be no 1 always. The ability to attract the assets of our clients is based on the Firm’s commitment to establishing and maintaining long term relationships with our clients. The knowledge from this engagement ensures we provide them with a bouquet of solutions which meet their needs. Client service is at the centre of all that we do, this enables us focus on assisting our clients on their investment journey and helping them meet their financial and lifestyle goals. This commitment to client service in addition to our strong performance track record are the reasons clients choose us and underpin the growth in our Assets under Management (AuM). What was the rationale behind FBNQuest setting up the FBN Nigeria Eurobond USD Fund for retail investors and FBN Nigeria Eurobond USD Fund for institutional investors? As previously mentioned, we think of our various products as “solutions” offered to the investing public and aim to remain in tune with the needs of all investors. We noted the rising need for investment options in US Dollars due to a growing local appetite for currency diversification. Many clients have begun to have obligations in foreign currency. For these investors, we have created a solution allowing them earn an income in foreign currency to match those obligations. We provide this service through the FBN Nigeria Eurobond Fund which invests in debt instruments (bonds) denominated in foreign currency issued by the Nigerian government and corporates. @Businessdayng

From your many years of experience in helping investors to manage their funds and giving them return on their investments, what have been the challenges in the market and what can enable you to have more bountiful return for your investors? Nigeria is characterised by a growing need for investment management services. This has led to more players offering investment management services to the public and therefore rising competition. As such, as a professional service provider, we focus on building innovative and best in class solutions as well as offering seamless client service to stay ahead of the competition. We also work to ensure that the performance of our Funds remain competitive. We do this by making sure we are disciplined across the investment management value chain, that is, from extensive in-house research to portfolio management. Factors we consider when choosing instruments into portfolios include, but are not limited to; market dynamics and realities, regulations, risk and returns and the client’s investment profile. Do you have plans to rolling out more products for your investors? As previously mentioned, we ensure that we maintain adequate knowledge about the needs of the investing public. This enables us tailor our solutions to the needs of our clients. We have a number of solutions in the pipeline for investors drawing from the goal based investment theme to helping investors become disciplined in their savings and investment attitudes. We believe that by linking a savings plan to a goal, investors will be better able to meet their financial goals. What is FBNQuest Securities’ outlook for the market and the Nigerian economy going to H2 2019? We expect attractive valuations to propel bargain hunters to take positions ahead of the earnings announcement season as investors seek fundamentally sound stocks. However, we do not think half year corporate actions will be enough of a catalyst to spur meaningful demand in the market. The seasonal lull (summer) could also weigh on the market. With respect to politics and macro events, the President still has not appointed new ministers and policy direction remains hazy. Our internal economic growth forecast for this year is 2percent, which is not exciting. Notwithstanding, we might see some respite if oil prices remain above the $60/barrel mark on indications of shrinking global supply and some clarity on policy direction emerges from the government to boost economic growth.

Friday 26 July 2019

BUSINESS DAY

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Friday 26 July 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE

Investment into mHealth is rising in Nigeria; here’s why ANTHONIA OBOKOH

or specialist from the comfort of their homes. “Telemedicine will improve access to healthcare, improve service quality and patient demand while cutting costs for all players,” said Francis Faduyile, national president, Nigerian Medical Association. Faduyile added that the traditional way of delivering healthcare has led to thousands of deaths and serious injuries, noting that the use of technology will give a proper record of patients and reduce the risk of misdiagnosis and wrong medication. Globally, the number of mHealth apps available in the market has increased substantially. There are now over 318,000 health apps available on the top app stores worldwide, the global mHealth app market is expected to reach $102.35 billion by 2023. “Britain allocates $200bn per year to the health sector for its 60 million citizens, thereby spending $4000 dollars on each citizen, while Nigeria has $1 billion per year which has to take care of 200 million citizens at $6 per citizenship,” Ola Brown, medical doctor and managing director of Flying Doctors Nigeria. Brown said it will take years for Nigerians to enjoy high doctor- patients’ ratio again, however advised that the government should leverage on technology to do more with less.

She added that the use of advanced technology will foster quality, easily accessible healthcare at a leaser cost. Findings also shows that the cost of developing mHealth apps has significantly risen over the last few years .Initially, the typical project size for developing an app (not just for health) ranged from $30,000 – $40,000. Today, the average total cost for developing an mHealth app (first release) is $425,000, with almost half (47 percent) of total development costs outsourced to, for example, third-party app development agencies. Additionally, 82 percent of mHealth app publishers are now developing for more than one platform that is both Android and iOS. However, a lot of mHealth apps can connect a patient with their healthcare provider to improve ease and speed of contact. Some medical mobile apps also focus more on the user’s daily life, helping them maintain a particular course of treatment or healthy lifestyle. These types of apps often perform various calculations, provide checklists for proper care, or send out scheduled reminders to maintain a healthy way of living. Many consumer-focused medical mobile apps are affordable or free to use, contributing to their rapid spread among the general population.

GTBank holds 9th annual autism conference ANTHONIA OBOKOH

ccording to the World Health Organisation, 1 in 160 children live with Autism Spectrum Disorders (ASD) worldwide. In Nigeria, the condition is hardly diagnosed, rarely understood and children with ASD often suffer stigmatization. In response to these challenges, For the ninth year in a row, Africa’s foremost financial institution, Guaranty Trust Bank plc, will bring together some of the world’s leading experts in Autism for two days of critical discourse on supporting children and adults living with Autism in Africa. Organized as part of the GTBank’s Orange Ribbon Initiative, the Annual Autism Conference, will hold on the 30th and 31st of July 2019 at the MUSON Centre, Onikan, Lagos. According to the press statement made available to BusinessDay, this year is themed, “Autism: Transitions, Vocational skills and The Role of Technology,”. However,

ANTHONIA OBOKOH

combination of demand and supply factors is driving investment into Nigeria’s mobile health services, and indication are that this is the beginning of a long haul that will change the face of health deliver in the country. To bridge the gap between patients in need of urgent and efficient medical attention in a country with limited number of healthcare professionals, some investors within the health industry are adapting and leveraging solutions that mobile health presents. Health start-ups in Nigeria have dedication focus in growing this service include Kangpe ,PriveDoc, and Mobidoc , which are focused with medical consultations, for medical devices by MDaaS, blood centre services, Lifebank, clinical reference information and e-learning by Medenhanz, and for pharmaceuticals by Drugstoc - the phenomenal aviation emergency ambulance such as Flying Doctors Nigeria are providing Mhealth solutions in the country. Lanre Olaitan, chief executive officer of PriveDoc, Limited said that Nigeria’s digital health service would eliminate medical tourism in the country; saying with adoption of mobile health apps patients anywhere can easily consult with a doctor, get diagnosed and receive their legally valid prescriptions in the comfort of their own private space. “All the doctors and specialists are carefully handpicked nationally and globally to provide the patients with the best medical care regardless of their locations and for an affordable fee as low as N150, patients can interface with doctors, using their android phones to access instant medical care and avoid delays which may worsen the initial ailment,” Olaitan said what Prive Doc does. It is estimated that about 30,000 Nigerians spend $1 billion annually on medical tourism; experts say with Mhealth which provides cheaper alternative to improve access to high-quality care and reduce waiting times, Nigeria may see reduction in the current cost of its medical tourism. The mhealth is a medical software that allows patients to consult doctors, nurses or physiotherapists from their smartphones. The app can allow patients to video call or web chat with a physician

Diagnostic tests for tuberculosis, hepatitis, HPV included in global access program - Roche

the annual autism conference will bring to the fore the challenges facing children living with Autism as they grow into adulthood and also will feature presentations and keynote addresses on how to empower children and adults living with Autism to reach their full potential. Segun Agbaje, the chief executive officer of Guaranty Trust Bank plc, commenting on the 9th annual autism awareness conference, said “Children and adults living with autism often lack the support and vocational training that they need to develop critical life skills for leading independent and productive lives. As an organisation that is passionate about uplifting the most vulnerable in our society, we will continue to empower people living with autism with all the support and resources that they need to reach their full potential.” Some of the facilitators include Loretta Burns, a leading expert in the field of neuro-developmental www.businessday.ng

disorders and the founder of ABE International Clinic; Tisa Hooper-Johnson, the Medical Director of the HFHS Center for Autism and Developmental Disabilities (CADD), USA; Janette Washington, a speech-language pathologist with nearly a decade of experience working with children living with autism and other special needs; and Ivie Emokpae, a qualified special needs coordinator from the Institute of Education London. Following the Autism conference will be free one-on-one consultations for children with Autism and other developmental challenges, as well as counseling for parents and guardians. There will also be sessions for Speech Therapy, Physical Therapy, Behaviour Analysis, Audiology, Clinical Psychology, Developmental Psychiatry, Physiotherapy, and Occupational Therapy. These sessions will hold from Thursday August 1st to Tuesday August 6th, 2019 at Digital Village, Alausa, Lagos.

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oche has expanded its Global Access Program adds diagnostics tests for Mycobacterium tuberculosis (MTB), hepatitis B and C (HBV and HCV) and human papillomavirus (HPV) for low and middle income country programs where the disease burden is the highest. The Global Access Program aims to offer increased access to diagnostics at affordable prices in countries with a high rate of disease. According to Roche, the expansion of the Global Access Program highlights commitment to improve access to cost-effective resources, implement scale-up programs, and contribute to the elimination of diseases in the regions with the greatest need. According to the report made available to BuisinessDay, the expansion will bid in total molecular diagnostics for HIV-1 viral load, HIV-1 and HIV-2 early infant diagnosis, the cobas Plasma Separation Card – an innovative plasma collection device, MTB and MTB – RIF/INH, Hepatitis B and C, and Human Papillomavirus. “All these assays run on the cobas 4800/6800/8800 platforms for various testing volume needs enabled by the cobas Plasma Separation Card that transports samples from remote areas/sites to the central lab for further processing,” it states. Michael Heuer, chief executive officer (CEO) Roche Diagnostics said that with effective treatment options for these infectious agents and improved patients access to diagnostics, early detection can help save lives and ease suffering. “As the leader in infectious disease diagnosis testing, Roche is dedicated to support goals on eradicating diseases globally,” he said. However, the World Health Organization disease elimination goals states that optimising the use of diagnostics will be critical to achieving targets for elimination For hepatitis, WHO defined goals aiming at a 90 percent

reduction in new chronic infections and a 65percent reduction in mortality in 2030 as compared with the 2015 baseline and the agency have also established goals to end Mycobacterium tuberculosis by 2035 which includes a 95% reduction in death, 90% reduction in incidence, and 0% catastrophic costs. Access to screening, early detection and prevention of transmission reduces the spread of disease. Tuberculosis is a major health crisis and is the leading cause of infectious disease deaths worldwide. Access to hepatitis diagnostic tests for HBV and HCV will improve the outlook of eliminating these chronic infections. And screening with HPV DNA testing can more accurately identify women at risk for cervical cancer than other screening methods. With vaccination and proper screening, cervical cancer is a preventable disease. Importantly, infection with HPV has been found to increase the risk of HIV transmission for both men and women. Similarly, women living with HIV are four to 10 times more likely to develop cervical cancer. Screening for co-infection (HIV+ HPV) can significantly improve disease management decisions and enable appropriate patient care. “Access to cutting-edge, best in class diagnostic test results means more patients being appropriately diagnosed and well treated, resulting in lives saved,” stated Clinton Health Access Initiative’s (CHAI’s) chief science officer David Ripin. “We welcome Roche’s decision to expand access to tests for hepatitis, tuberculosis, and HPV (the leading cause of cervical cancer) to their Global Access Program, providing health systems with transparent and consistent pricing to these important tests in addition to the HIV viral load and early infant diagnostics already established in the program. CHAI values Roche’s continued partnership in the effort to make diagnostics seamlessly available in well optimized diagnostic lab systems throughout the world.”

NMA seeks improved security in Nigeria SIKIRAT SHEHU, Ilorin

he Nigeria Medical Association (NMA), Kwara State chapter has called on government at all levels to intensify efforts at improving security of lives and properties. Kolade Solagberu, a medical practitioner and the chairman of NMA in the state, made the call at the 2019 Annual General Meeting and Scientific Conference held in Ilorin, the state capital. Solagberu said the issue of national security had been a major concern and doctors were worst hit considering the nature of their work. The theme of the conference, which was ”National Security and the Medical Profession, ” focused on bringing into perspective the issue of national security as it affects medical practitioners. According to Solagberu, the @Businessdayng

medical and surgical outreach would be held for indigent patients in the state. “The outreach will hold in Kwara Central Senatorial District in Adewole ward of Kwara. ” Governor Abdulrahman Abdulrazaq will further demonstrate NMA’s support and readiness for collaboration and partnership toward healthcare improvement. “The governor has demonstrated his determination to revive the health sector from its moribund state. “We wish him well and assure him of our maximum support toward achieving success for the people of Kwara. “We enjoin the governor to involve Kwara NMA, the body of all doctors working in the state, in the formulation of health policies to achieve greater success.”

Friday 26 July 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE Oil firm brings succor to host community as thousands receive free medical service ANIEFIOK UDONQUAK, Uyo

elp has come the way of the host community of oriental energy resources Ltd, an oil firm operating in Mbo local government area of Akwa Ibom State as it has provided the people with free healthcare service. The exercise which was organised in collaboration with a non-governmental organisation, Faith Optical and Medical Services Limited attracted a large crowd of beneficiaries. A breakdown shows that fewer than 4634 patients received treatments for various ailments with 33 undergoing eye surgery, while over 100 patients got eye glasses and took place at the health centre , Enwang, the local government headquarter. It saw pregnant women also receiving ante-natal kits even as school children and their teachers got home with hygiene sets. Speaking during the exercise, Anslem Okere, deputy manager community relations of the company said the free medical exercise was part of the company’s corporate social responsibility programme aimed at ensuring a healthy populace in their host communities. “We take host communities as major stakeholders in our operations. We have done the free medical outreach on several occasions and the turnout has always been tremendous. “More importantly, this year, we added the free eye surgery because the people demanded for it and we ensure that their

demand was met and they have appreciated the gesture so much. “ Apart from the free medical, we have also embarked on other social investments including, scholarship, skill acquisition center at Enwang, 100 units of housing at Enwang, teachers’ quarters at Effiat, among others,’’ he said. Asukwo Eyo, chairman of the local government council who declared the programme open, applauded the oil company for the exercise, which he stated, would go a long way in meeting the health needs of the people and complementing government’s efforts at providing affordable health care to the citizens. “This exercise is indeed a welcome development. We are happy with this kind gesture. I urge other firms to take a cue from this company,’’ he said. Managing Director, Faith Optical and Medical Services Limited, David Ehimhen, said need assessment led to the inclusion of eye surgery in this year’s outreach, describing the weeklong exercise as successful and thanked members of the community for their cooperation. One of the beneficiaries, 73-year-old Sylvanus Bassey whose sight was restored lauded the initiative saying it has changed his life for good. A member community relations committee, Mfon Henry also expressed delight over the free medical service but however urged the firm to increase the budgetary allocation of the yearly programme to accommodate more patients.

WHO expresses worry over low immunisation routine rate in Edo IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

he World Health Organisation (WHO) has lamented the low performance of Edo State in the National Routine Immunisation Exercise. Kate Oguigo, WHO, national facilitator expressed the body’s concern at the sensitization of media on disease surveillance in Benin City. According to her, Edo State routine immunization is very low. The state has about 66 percent performance immunization rate as against the national targeted rate of 85 percent performance. Oguigo attributed the low performance to partly the nonchalant attitude of some parents’ preference to immunize their children against the deadly diseases to private health institutions. She added that the state government supplied the immunisation vaccines free to about 608 public and private healthcare institutions across the state. While noting that the last polio outbreak was recorded in Owan

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West local government in the state in 2009, she added that the state has since been certified polio free by the relevant health bodies. She also disclosed that Etsako West, Etsako East, Esan North-East and Esan West are the most Lassa fever endemic local government areas in the state. Oguigo who urged media practitioners to join the WHO and other agencies in the crusade against reduction of deadly diseases added that low media coverage of health personnel activities will lead to resurgence in diseases and outbreaks from vaccine preventable diseases potentially leading to significant morbidity and high mortality rate. She said improved access to vaccines is the responsibility of all noting that both medical and media practitioners have a key role to play. She however sensitized media practitioners in the state on Acute Flaccid Paralysis (AFP), Yellow Fever, Viral Heamorraghic Fever (Lassa fever) among others. She stressed the need for regular immunization of children between the ages of 0-15 months.

69% of rape, sexual violence survivors are under age ANTHONIA OBOKOH

omen at Risk International Foundation (WARIF), a non-profit organization which was set up in response to the high incidence of rape and sexual violence in Nigeria has released data exposing the alarming rate of rape and sexual violence incidents especially among minors. “Over 1,100 girls in less than 3 years have been attended to at the WARIF Centre, of which 759 (accounts for 69 percent ) were minors between the ages of 0-18 years old,” according to data reported from the WARIF Centre The reported also stated that based on monitoring and evaluation of the number of these cases by the Foundation since inception, the incidents of sexual assault was highest in 2018 making up 45 percent of the incidents reported till date.

However, rape and Sexual violence results in multiple consequences for survivors and their families, including unwanted pregnancies that may result from such violence in response to these challenges the organization seeks to reduce these numbers by using their holistic “WARIF Approach” to tackle these issues through Awareness/Sensitization Programs and Post Incident Care of survivors of gender-based violence. “WARIF was established in response to a grave need in our society – 25 percent of our female populations were being exposed to various acts of sexual violence and rape,” said Kemi DaSilva Ibru; an Obstetrician and Gynecologist and the founder of WARIF. According to DaSilva Ibru, majority of these young women had nowhere to access free health care or seek help after their abuse. At WARIF, we ensure that all women are supported with all their needs addressed, for their healing and

recovery process.” “With the alarming rate of sexual assault survivors coming out to speak their truth, organizations like WARIF who have been at the forefront of this menace are prepared to do all they can to support these survivors,” she added. Meanwhile, at the WARIF Rape Crisis Centre located in Lagos , Immediate medical care is offered to these survivors which include Forensic Medical Examinations, Treatment of physical Injuries, the dispensation of Emergency Contraceptives, administration of Post Exposure Prophylaxis which prevents HIV/AIDS, Psychosocial counseling, and referrals for associated services such as Legal Aid among others. Speaking on the 24-hour confidential helpline being run by the centre, it was reported that 632 calls in the last 2 years have been received from people calling to report cases of gender-based violence and seek counseling from trained therapists at the WARIF Centre. The organisation has also launched group therapy sessions from June 2019 to support survivors who relive the trauma of their past experiences and in 2 months, 60 women have come to WARIF for these sessions, 83.9 percent of which are below the age of 30 years. WARIF is committed to supporting survivors and preventing the occurrence of rape and sexual assault through the WARIF Centre and other impactful and sustainable initiatives in Ed u cat i o n a n d C o m mu n i t y Service.

Hajj August 2019: Travel tips for total health package

Dr Ade Alakija Q-life Family Clinic

ajj is a religious pilgrimage to Mecca, Saudi Arabia. Islam dictates that every adult Muslim is obligated to make Hajj at least once in a lifetime. The timing of Hajj is based on the lunar Islamic calendar and it will hold in 2019, August 9–14. The Hajj is one of the world’s largest mass gatherings each year and is associated with unique health risks. Approximately 2 million Muslims from over 183 countries make Hajj each year and the Kingdom of Saudi Arabia (KSA) continues its efforts to allow for an even greater number of pilgrims. As the Hajj approaches one of the 5 pillars of Islam and one of the holiest periods in the Islamic

calendar, the significance of Hajj is associated with religious as well as social significance. The obligation for performing this pilgrimage is only fulfilled if it is done on the eight to the 12th day of the last month of the Islamic calendar. It occurs during the Islamic month of Dhu al-Hijjah. Every able bodied Muslim is obliged to make the pilgrimage to Mecca (Makkah at least once in their life. Apart from leading to a greater “Taqwa” (Consciousness of God) some experts claim that restricting food intake during the day can help to prevent health problems and improve mental health. If you have certain types of health issues (compromised Health), consult your Imam and Doctor to best advise you, because it can lead to low blood sugar levels causing reduced concentration and increased fatigue . The good news is that sustainable weight loss is only possible with regular fasting and any weight loss during Ramadan could easily be reversed once you return to your routine eating habits. The benefits of fasting outweigh the cons, and in the long run properly planned fasting even after Ramadan period can improve one’s digestive system and general metabolism. General advice to travellers:

If you are travelling during this period, consult your Imam as to exemptions for travelers amongst other exemptions. Good preparation for family trips lead to less stress, is better for your health, and it is also a sign of an organised and alert mind. Your to do list is essential, however, always do a head count for groups on the move at every stop. Fatigue and tiredness can play tricks with our minds especially during long walks. Make sure on the list you have your essential travel documents like Passports and Visa’s, Yellow Fever cards, Medicines and the expiry dates of passports, Visas and Medicines, Mobile phones and contact addresses. I have personally seen people arrive at airports whose passports and visa’s have expired, make sure documents do not expire during your trip. Carry just the bare essentials for the trip. Also go along with paper wipes or Antiseptic hand sanitisers, torchlight’s. Please whatever your addictions are, do not take certain medications or illicit drugs into Saudi Arabia and do not let any stranger ask you to help carry any luggage for the person. It could cost you your life or a long jail sentence. Pack all your items yourself. To be continued next week

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

Friday 26 July 2019

BUSINESS DAY

FINTECH News

Products Review

In association with

Technology Review

Personality Review

Company Review

‘We’ve crossed million naira mark in loan sales to over N3bn every month’ Segun Akintemi, chief executive officer of Page Financials, a financial technology company, in this interview with BusinessDay’s Frank Eleanya speaks on how the company grew its loan books from millions of naira a day to the billion naira mark. What inspired Page Financials and how has the journey been so far? he journey to set up Page Financials was borne out of the need to improve access to credit for Nigerians, with a view to helping them achieve financial independence. The company was initially set up as Page Credit and later on got a Microfinance license and began operating as a microfinance institution. In 2017, this license was further upgraded to a Finance House license which led to the company now being known as Page Financials. Since inception, the company has grown astronomically from a 5-man business to now having a 500-man workforce catering to over 150,000 salary earners living in the Lagos and Ibadan metropolis. We have also grown from crossing the million naira mark in loan sales to now doing over N3 billion every month. What this says to us is that the Nigerian market is very open to taking control of their finances with improved access to credit.

Digital te chnolo g y has changed the game in financial services, with loans now being disbursed on-the-go. How has this impacted your loan services and what new innovations do you plan to adopt to make your customer experience a lot more

memorable? Our mission in Page is to provide exceptional service in the most innovative way. This propels us to make significant investments in our technology infrastructure. We also like to remind ourselves that technology is not the ultimate; rather it is one of the enablers required in ensuring we meet and exceed the expectations of our customers. This is why we are not caught up in the euphoria of “digitisation” or “financial technology”, instead, we are passionate about providing safe, fast, convenient and innovative financial services to our customers who entrust us with their financial matters. To achieve this, we have provided state-of-the-art platforms such as our mobile app, web application portal and other straight through processing portals, and we continue to upgrade these channels and offer innovative, tech-enabled products to our customers to ensure we deliver excellent service. What is your latest initiative, Loan Box all about? The idea of the Loan Box was conceived to communicate to our customers that unlike the myth that access to funds are hard to come by, with Page we make it easy for qualified prospects to apply for and get credit with no hassles. That was our #LoanBox idea; bringing financial solution to the people that need it, in the least expected and least

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3-hour disbursement timeline. We pride ourselves on the quality of our service delivery across our various touch points. To our customers, we are not just another financial organization – we are a partner in progress. We work with our customers to ensure that they are not only getting access to funds, but also getting quality financial consulting to enable them make the right financial decisions.

Segun Akintemi

stressful way. Apart from being a salary earner, what other criteria qualifies an individual to get Loans from Page Financials? Asides a regular income, some of the other criteria that qualify prospects for getting loans are location – meaning you have to live and work in either Lagos or Ibadan. The prospect also needs to have all the required identification documents including their account statement, valid government and work ID, their Biometric Verification Number (BVN) and a completed application form. Most importantly, the prospect has to have a good credit history as this is one way for us to determine if the customer will be willing and

able to repay the loans based on transactions they have carried out in the past. How many people have benefited from your loan disbursement since you began in 2013? From the day the business opened its doors till date, we have been able to provide credit facilities to over 150,000 Nigerians. How competitive are your interest rates? Page offers extremely competitive rates compared to other lending platforms ensuring that our customers keep returning to access our services. We also understand that customers require quick access to funds and we have made this possible with our

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Do you have plans to take your products beyond Lagos State, to other parts of the country? Yes we have already started expanding our locations as we currently have an office in Ibadan with more in the pipeline. Page Financials loans are tailored for salary earners. Where does that leave small businesses? What specific products do you have for them? In respect to this, we have applied a very useful business principle that when you do what you have a good understanding of, your chances of success is much better. It is our own way of deploying the beachhead strategy – such that we have succeeded in making that target market our stronghold and we can now begin to move into other market areas. Simply put, as an innovative business, we have put our learning over the years together using technology and will begin to serve

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other markets including SMEs in the months ahead. Meanwhile, our investment and payment solutions services have always been available to everyone within and outside Nigeria. How have you addressed the issue of poor documentation which most players in the lending space face? Technology has been at the centre of powering our innovative ideas. To cut down on the huddles associated with documentation, we’ve invested in Artificial Intelligence to help us do preliminary research and documentation. This has reduced the time it takes to go line by line and file by file in scrutinizing a customer. Also, this has helped us to focus more on what matters – which is disbursing this loan swiftly to the people that need them, rather than spending the bulk of the time going over files. What due diligence do you have to carry out before disbursing a loan? Before our system can disburse loans, we would verify your identity and place of work. We will also make sure that your DTI (Debt-to-Income) ratio is safe such that your income can service all your debts including the loan we are about to give you. Once all these are checked – often under 3 hours, you will get funds credited into your Page account.

Friday 26 July 2019

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

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Send in Commentaries to caleb.ojewale@businessdayonline.com

Takeaways from BusinessDay Agribusiness & Food Security Summit: Multinationals race to increase backward integration despite challenging environment Stories by CALEB OJEWALE Twiiter: @calebtinolu

as backward integration been profitable for ma nu f a c t u re r s using agricultural raw materials in Nigeria? The question is not one that will likely get a yes or no response, as reactions will vary across companies. A common denominator however appears to be; it is the way forward and cheaper, more efficient ways of producing raw materials locally have to be developed. Leading this charge at this year’s edition of the BusinessDay Agribusiness and Food Security Summit held last week was Mauricio Alarcon, CEO of Nestle Nigeria Plc. “Does it make sense when your factory stops because you don’t have the raw materials?” Alarcon asked, while speaking on a panel on; Improving the attractiveness of local backward integration for multinationals in Nigeria. For him, the question when it comes to investing in the production side of agriculture is not whether it is profitable, but if it makes business sense. Again, he asked; Does it make business sense when you have to stop one of the largest factories in the world for days because your raw material was stuck in the port? Or because you didn’t have FX?

At the end of the day you don’t know if you will get the product in one month or two months because of other issues. As Alarcon explained, it makes sense to emphasise backward integration and be able to ensure sustainability. It is not about immediate profit but ensuring sustainability of the business in the long run. At present, the company is currently working with primary producers across the different value chains the company’s raw materials come from, to be able to build a sustainable supply chain. Nestle has in the last five years locally sourced 51,010 metric tonnes of Corn; 37,483 metric tonnes of Sorghum ; 33,688 metric tonnes of Soya Beans; and 13,372 metric tonnes

of Cassava starch, according to data shared with BusinessDay. However, as attested by even Alarcon, sometimes, sourcing local may be expensive, but in the long run, the investment is worth it. “Building backward integration in agriculture is hard work, requires patience, and commitment,” Alarcon said. Another panellist, Sadiq Usman, deputy chief operating officer of the Agro-Allie d Division, Flour Mills of Nigeria Plc, corroborated the need and intention by his company to deepen its efforts in backward integration. According to him, there are immense potentials across several value chains in Nigeria, if only local capacities have been developed to meet the needs of industry. There are vast potentials

for value addition and export across virtually all value chains in Nigeria, but as Usman noted, “We are not yet making the kind of money that we should in these value chains”. Using two out of five value chains FMN operates strategically, Usman identified the Cassava and Edible Oils value chains, among those that are highly required both by industry and by even consumers in Nigeria. Today, Flour mills has invested in cassava starch and Garri, making the company the first industrial producer of Garri in Nigeria, also producing High Quality Cassava Flour (HQCF). In that value chain, the key issue is constant supply of raw material. As Usman notes, the value add of Cassava in Nigeria relative to say Thailand, is very low. Out

of as much as 57 Million MT of cassava produced annually, what percentage is value added in Nigeria? The answer is of course, a very low proportion, considering the bulk of Cassava goes into processing food items like Garri and Fufu. Yet, Nigeria imports over 90 per cent of Starch, Ethanol, Sweeteners, Glucose, and other by-products of Cassava. These are huge opportunities, in just one value chain alone, and if it is fixed, the challenges of low supply will be effectively addressed. For processors like Flour Mills and others, the big question is; how can they get more, consistent supply of quality Cassava products for their industrial needs.

• The takeaways continue next week...

Farmcrowdy merges subsidiaries to boost efficiency, deepen market penetration DAVID IBIDAPO

armcrowdy has announced a move to officially consolidate its sister companies; Agricsquare and Farmgate Africa as part of a single entity, which is expected to create a bigger Farmcrowdy. In a press briefing held recently, Farmcrowdy, which describes itself as Nigeria’s First Digital Agriculture Platform stated the need to integrate both its trading and production business operations into one umbrella known as Farmcrowdy. Farmgate Africa was initially set up in November 2018, with the aim of becoming a huge, independent agro commodity trading platform. According to Onyeka Akumah,

CEO of Farmcrowdy Group, the consolidation was intended for November 2019, however decided to make it happen this month towards consolidating all agricultural efforts into one, and deliver better value to the market. Fo l l o w i n g t h i s announcement, the business of FarmGate Africa will no longer exist as a single business entity but one integrated into Farmcrowdy. The combined companies will now be referred to as Farmcrowdy, and shortly after the announcement, all sponsorship options available from both platforms (Farmcrowdy and Farmgate Africa) will now reflect on the combined Farmcrowdy Platform. Agricsquare will however continue to be run as a product of Farmcrowdy - the www.businessday.ng

largest community of Agriculture enthusiasts in the country with over 20,000 people engaging daily to discuss agriculturerelated topics, the company said. Kenneth Obiajulu, who was managing director of Farmgate Africa, will oversee the trading aspect of the new entity while Temitope Omotolani, chief operations officer for Farmcrowdy will continue to oversee the production side (Crop production, feedlot production, etc) of the company. Obiajulu explaining the complimentary approach of both businesses, said that while challenges around farmer’s productivity and access to finance have been addressed through the access to finance model of Farmcrowdy, on the other hand, Farmgate sought

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to solve issues around market access which is a core challenge in Nigeria’s agriculture space. According to him, Farmgate has been able to collapse the multiple layers of intermediaries that farmers go through before getting to superior market that will offer these farmers value for their products. “This results to both parties losing value for the products, hence we have bridged the gap between small scale farmers and processors through technology,” Obiajulu pointed out. In livestock, Farmcrowdy has recorded partnerships with notable companies such as Best foods limited and Livestock247 which enhanced reach into local communities in Lagos and effective value creation. “From our facility we process about 45 cows everyday @Businessdayng

increasing our control of meat distribution in the mainstream market, even to big restaurants where will supply about 35 percent of their daily demand for meat,” Obiajulu noted. To this end, the consolidation between Far mcrowdy and Farmgate is geared towards bringing to a single table; productivity, reduction in harvest losses, access to finance and market access under a single umbrella to drive value and profitability. The company also addressed what it described as “recent s pu r i ou s c l a i m s ma d e by a Twitter user against the company, which has since been proven to be false.” Farmcrowdy said it is making a bold statement that the business is as solid as ever with this announcement.

Friday 26 July 2019

BUSINESS DAY

Hotels

At home with Ger Buckley, foremost Jameson’s cooper

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

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hen you relax in a hotel lounge, bar or even at home to enjoy a sip of the Jameson brand of whisky, you often don’t know the process and efforts the distillers put in to ensure rare quality drink offerings. One of such efforts is coopering; a craft, which only the very skilled plies. The craft involves a cooper, who is trained to make wooden casks, barrels, and other staved containers from timber for aging the finest blends of whisky, cognac and so on. Ger Buckley, foremost cooper for Jameson, is top among the skilled in the art of coopering in the world today. Buckley, the master cooper at Jameson‘s Midleton distillery in Ireland, is also a fifth-generation master cooper, who is keeping the family legacy of over 200 years. “I have been practicing as a cooper for almost 44 years and my family have been coopers for well over 200 years”, he says. At Midleton, he is in charge of the distillery’s barrels; repairing cracks and other damages in the staves so they do not leak during the years of aging it takes to mature a whiskey. This he does by hand, in his moldering cooperage filled with mottled barrels, often using only traditional tools. “My team and I in Midleton are responsible for 1.6M barrels. I am directly involved with supervising the quality of barrels that we buy from our suppliers in Spain, France, Hungry and the U.S”, he says. The intrigue of the craft is that while lots of machinery with technicians can build as many as 2,000 barrels a day, but if the barrels need repair, they must go to the coopers’ because “we are the only ones that still know how to properly repair a barrel. However, in Spain or France, it is still the coopers that are making the barrels”. But while whisky is synonymous to Ireland, Buckley says barrel making is an African craft, which started in Egypt four and a half thousand years ago. “It is essentially the same thing it was back then and it hasn’t changed. Imagine if I was to go back to Egyptian times 4,000 years ago, I’d be

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Jameson Master Copper Ger Buckley and Alani Adenle, brand ambassador, at Jameson’s unveiling of premium whiskey like no other, Jameson Black Barrel

doing the same work”, he says. He insists that if one wants to make a barrel to hold whiskey, “you have to be good at it as the barrel should be able to hold it for 30 - 40 years. You must also mark every barrel with your signature. For me it’s a mark I inherited from my Dad and my Grandad, so its Number 1”. Explaining the importance of the barrels to the whisky, Buckley says the first thing is making the right choice of wood, which is the white oak timber because it is strong, and does not taint the wine like other woods. Explaining further, he says, aging whiskey in barrels gives it 100 percent of its color, and depending on the age of the whiskey, up to 50 percent of the taste can come from the wood. Beyond the above details, he says Jameson Black Barrel is unique for some reasons. “First, when we distill it in the barrel we do it differently. Normally when we make grain whiskey we put it through a column still, which is a continuous still and it does three distillations. But with the Jameson Black Barrel, the first distillation is done in a pot still, which is a huge metal copper pot. The next two distillations are in the column which gives a very unique batch of whiskey. We only do it one day in a year and the process is slow and takes a lot of stills”, he explains. America also offers choice wood. Once a year, he takes a trip to Kentucky, United States of America, to supervise the double charring of barrels for storing of cognac and whiskey. While that implies cooking the wood, it helps to caramelize, and crystallize all the sugars, vanilla notes in the www.businessday.ng

oak. “What we do with Jameson Black Barrel and in the whiskey business is that we char the inside of the barrel. That’s essentially the deeper cooking of the barrel, where you caramelize, crystalize much deeper. “You get a lot more sweetness, a lot more vanilla, caramel and toffee notes, when you cook the wood. That is why Jameson Black Barrel has that real genuine sweetness. It is one of my favourite products from Jameson as I like the sweetness you get from the American wood.” He notes that Midleton distillery, where Jameson is produced, has a lot going for it in terms of history, capacity and quality. A merger of the big distilleries (Jameson, Millers, and Cork) in Ireland in 1966 resulted in Irish Distillers with a major, now modern distillery in Midleton whose distils are the biggest in the world despite being handmade. As well, the whiskey there is also different because it is triple distilled, which makes it purer, milder and more refined. Speaking more on why Irish Whisky is premium to others, especially Scotch or Bourbon whiskies, Buckley says, “We use grain whiskey which is from the column still except in this occasion where we do the first still in the pan. We use some sherry, mainly American casks and double charred barrel which makes a difference to the final oak. The uniqueness of Irish whiskey brand is the triple distillation, the use of malted and un-malted barley, barrel types. These are things that make Jameson and Jameson Black Barrel in particular, so unique.” For the last couple of

years he has also been involved in teaching, and conducting seminars on barrel making, the effect of wood and how much it affects the taste. “Depending on the age of your whiskey, if it is an old whiskey, 60 70% of the taste is from the wood. The wood has a huge influence on the fine finish of the whiskey”. But when creating the products, he thinks of new drinkers that are starting to develop a taste for all whiskeys, including Jameson. “We wanted to give them a further experience and a step up for target consumers who may have some knowledge of whiskey and Jameson”. The step up for him is the Black Barrel, which is Jameson’s big brother. It is more mature and a bit more complex. Explaining the inspiration behind Jameson Black Barrel, he says, “The inspiration was for us to elevate the Jameson Original, almost for it to become Jameson’s big brother. In that, it is a bit more sophisticated, a bit more mature, a bit older, a bit more complicated”. While there are no perfect ways of enjoying the Jameson Black Barrel, he likes it neat, sniffs to get the aromas and sip afterwards. He also adds drops of water, milk or chocolate. For him, Jameson will continue to experiment with new techniques and flavours because Jameson Black Barrel was a trial, As well, over the last eight or nine years, “We have released at least two of three new styles of whisky every year some of them only go one batch and others might get repeated and so we are constantly pushing the envelope”, he concludes.

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Friday 26 July 2019

Harvard Business Review

BUSINESS DAY

MANAGEMENTDIGEST

Digital doesn’t have to be disruptive NATHAN FURR AND ANDREW SHIPILOV

omputers today can fit in your pocket, and the software applications that run on them increasingly enable the automation of tasks traditionally done by humans and the virtualization of hardware. In short, digital technology is being applied to almost every part of a company’s value chain. Thus managers are struggling to grasp what digital transformation actually means for them in terms of which opportunities to pursue. Many managers expect digital transformation to involve a radical disruption of the business, new investments in technology, a switch from physical to virtual channels and the acquisition of tech startups. To be sure, in some cases such a paradigm shift is involved. But our research suggests that for most companies, digital transformation means something very different from outright disruption, in which the old is swept away by the new. More often than not, transformation means incremental steps to better deliver the core value proposition. We draw on the insights we have gathered to dispel some critical myths about digital transformation and to offer executives a better understanding of how businesses need to respond to the current trends. MYTH: DIGITAL REQUIRES RADICAL DISRUPTION OF THE VALUE PROPOSITION. REALITY: IT USUALLY MEANS USING DIGITAL TOOLS TO BETTER SERVE A KNOWN CUSTOMER NEED. Some managers believe that to achieve a digital transformation, they must dramatically alter their company’s value proposition or risk suffering disruption. As a result, at the start of many digital transformations, companies aspire to be like Apple and try to find a new hightech core product that will serve brand-new customer needs. Although some might succeed, we believe that the customer needs most companies serve will look much the same as before. The challenge is to find the best way to serve those needs using digital tools. The shipping container company Maersk provides a good example. The costs of shipping are affected by global trade barriers

and inefficiency in international supply chains. What digital did for Maersk was provide a new way of overcoming this. The company partnered with IBM and government authorities to deploy blockchain technology for fast and secure access to end-to-end supply chain information from a single source. The technology, coupled with an ability to receive real-time sensor data, allows trustworthy cross-organization workflows, lower administrative expenses and better risk assessments in global shipments. This shift allows Maersk to serve its core customers better, and remain a company whose value proposition is providing a reliable, cost-efficient shipping service. MYTH: DIGITAL WILL REPLACE PHYSICAL. REALITY: IT’S A ‘BOTH/AND.’ There is no doubt that digital often enables the elimination of costly physical infrastructure. But that doesn’t mean the physical goes away entirely. In fact, many retailers are finding ways to create a hybrid of physical and digital that taps into the advantages of each. The high-end French retailer Galeries Lafayette provides a classic example. Despite intense competition from online stores, GL recognizes the importance of physical proximity to the customer, which only a brick-and-mortar store can offer. Both models have advantages: Physical helps build an emotional relationship with customers, while digital (especially artificial intelligence) helps it better understand

customers’ needs. Whereas in the past companies focused too much on the product and not enough on the customer, hybrid models can put the customer at the center of the business. GL is blending the physical and digital worlds in its new store on the Champs-Élysées. The store will carry a curated selection of luxury items, and it will be staffed by salespeople hired for their ability to interact with visitors to the store, their expertise in fashion and style and their facility with social media. These staffers, known as personal shoppers or personal stylists, will establish emotional relationships with their customers, making the physical store an initial customer attraction and touch point. Shoppers value a physical store visit because they can see and feel actual products. They can reserve items online and try them out in the store without obligation. Alternatively, they can buy products online and simply pick them up in the store. In either case, salespeople must understand how to act like personal shoppers, and the product and customer data they have enables them to do so. MYTH: DIGITAL INVOLVES BUYING STARTUPS. REALITY: IT INVOLVES PROTECTING STARTUPS. Often companies try to access new technologies by acquiring startups and then integrating them. This approach risks killing the startup’s culture and chasing away the talent acquired during its creation.

Smart companies prefer to build hybrid relationships with startups — strong enough to learn and find synergies but weak enough to avoid destroying the culture. So even though they may own the startups, they allow them to operate as semiindependent businesses. Avnet, a $19 billion global technology solutions provider, is a good example. The company made two digital acquisitions: Hackster.io, a platform that allows makers from around the world to post their ideas for new products (such as sensors to monitor city noise and pollution levels), and Dragon Innovation, a startup that helps companies bridge the gap between made-forprototype and industrial-scale electronic products. These companies operate as semi-independent entities and interact with Avnet through Dayna Badhorn, its vice president for emerging businesses. Her role is to protect the acquired companies from the inefficiencies — such as slow product development cycles — of the parent organization while helping Avnet learn agility. MYTH: DIGITAL IS ABOUT TECHNOLOGY. REALITY: IT’S ABOUT THE CUSTOMER. Smart companies realize that digital transformation is ultimately about better serving customer needs, whether through moreeffective operations or new offers. Because digital enables the connection of formerly siloed activities for this purpose, the company must often reorganize both people and technology.

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

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In practice this may mean changing structure — for example, in situations where a more agile structure is merited, creating internal squads with the capabilities and authority necessary to follow projects from beginning to end. Although a squad is a team, it differs from most big-company teams in being empowered to solve key problems quickly, as an entrepreneur would. The credit card giant Mastercard has a systematic process for building such squads. Employees from various functional areas can submit ideas to qualify for three stage awards: Orange Box, Red Box and Green Box. The Orange Box gives employees a chance to explore their ideas and pitch them. Recipients of this award receive a $1,000 prepaid card and coaching to develop a presentation about solving a specific customer problem. At the Red Box stage people turn an idea into a concept: The team receives $25,000 for testing, prototype development, and research and a 90-day guide outlining the steps needed to refine the concept. The Green Box was designed to create a commercialized product from an official incubation project inside the labs. At this stage team members leave their jobs for six months to work on the project. MYTH: DIGITAL REQUIRES OVERHAULING LEGACY SYSTEMS. REALITY: IT’S MORE OFTEN ABOUT INCREMENTAL BRIDGING. Digital transformation may ultimately require radically altering back-end legacy systems, but starting with a sweeping information technology overhaul comes with great risks. Smart companies find a way to quickly develop front-end applications while slowly replacing their legacy systems in a modular, agile fashion. This can be achieved by building a middleware interface to connect the front and back ends. Over time the pieces of the legacy system can be decommissioned, but progress in meeting customer needs doesn’t have to wait until then. •Nathan Furr is an assistant professor of strategy at INSEAD and a co-author of “Leading Transformation: How to Take Charge of Your Company’s Future.” Andrew Shipilov is a John H. Loudon chaired professor of international management at INSEAD. He is a co-author of “Network Advantage: How to Unlock Value From Your Alliances and Partnerships.”

Friday 26 July 2019

BUSINESS DAY

entertainment

Yemi Alade; the songstress on the rise OBINNA EMELIKE

f you were at the O2 Academy in Islington, London, in April last year, you would have appreciated the height Yemi Alade has taken her music to. She rocked the venue with her energetic performances that brought African magic to life to her London audience. At home, she spices music concerts with her energetic performance, which endear her to a growing fan base. No wonder she was among the six musical artistes (Tekno, Yemi Alade, Mr Eazi, Burna Boy, Tiwa Savage and WizKid) who featured with Queen Beyonce on the movie soundtrack for this year’s live-action remake of Disney’s “The Lion King” on July 19, 2019, with the hope of the world rediscovering Nigeria’s vibrant music scene. Born as Yemi Eberechi Alade, the Afropop singer and songwriter who stages as Yemi Alade is unarguably an artiste on the rise. She is among the top Nigerian female music acts, who are giving their male counterparts a run for the money.

Alade made her musical debut in an all-girl group called Noty Spices in 2005, but her music became widely popular after she won the Peak Talent Show in 2009. She later released her first single “Fimisile” under the Jus’ Kiddin’ label. In 2012, she signed onto the music label, Effyzzie Music Group, and released her single “Ghen Ghen Love”. In July 2013, Alade released the video for her romantic afro-R&B song “Bamboo”, produced by Fliptyce. “Bamboo” went on to be a moderate hit and a popular wedding song. In the last quarter of 2013, she broke records when her most recent hit single, “Johnny”, produced by Selebobo, was leaked on the internet. The song became an international smash hit as it dominated music charts in Tanzania, Kenya, Ghana, South Africa, Liberia, Uganda, Zimbabwe, and the United Kingdom, among others. It was listed as one of the best songs of 2013, despite the fact that it was released towards the end of the year and without a music video. Alade has been featured on the covers of several magazines and performed

The Set Up to premiere on August 9th …as Ayo Ayoola comments on experience as cast member

hile ‘The Set Up’, the 10th blockbuster film from the stables of Inkblot Production’s 10th film, sets to open in cinemas on August 9, 2019, industry pundits are predicting an impressive run for the film. It is no wonder that when the producers announced that select fans could have an interactive session with actors in the film, it was very well received. Tagged #TalkThursday, fans spent one hour in a private chat room with Niyi Akinmolayan, director, Zulumoke Oyibo, producer and actors including; Dakore Egbuson-Akande (who plays Motunrayo Elesho) and Ayo Ayoola (who plays Bamidele Elesho), discussing the highly anticipated film. During the chat session, Ayo Ayolola disclosed that he was star-struck working with Niyi Akinmolayan, the director of the movie, he has directed blockbuster movies such as The Arbitration, The Wedding Party 2, and Chief Daddy. However, The Set Up is a star studded riveting thriller about a young drug smuggler Chike (Adesua Etomi) who

gets more than she bargains for and is drawn into a web of deceit, lies and betrayal, when she is hired by a socialite Edem (Jim Iyke) to assist with his scheme to marry a wealthy heiress Motunrayo (Dakore Egbuson Akande). Ayoola also answered questions about his experience working with Inkblot Productions and acting alongside Dakore. ‘Dakore is such a graceful human being…I did not even have to act much. She made it so easy and relatable’. He also added that his experience on set was amazing. In his words, “It was at that moment I felt I don blow”. “Trust me, Bamidele Elesho is very different, his character is very relatable. I wish I could say more, but I’d love to hear your opinion when you watch it”, Ayo said about his character Bamidele Elesho. The Inkblot Talk Thursday holds every Thursday at 12 noon on their social media channel. The Set Up was written by Chinaza Onuzo and produced by Inkblot Productions in collaboration with Anakle Films and Filmone Production and Distribution. www.businessday.ng

around the world, sharing stages and songs with Mary J. Blige, Shina Peters, M.I, Wizkid, Becca, May D, Waje and Yemi Sax. She also headlined the Super Diva’s Nite at the 2013 Calabar Festival, and opened for the 2013 Headies Awards (popularly referred to as the “Nigerian Grammys”). In 2014, Alade was featured on Yung6ix’s track “Lights”, as well as, on a remix of “Sebiwo” by Beninese afropop star Lace. Alade teamed up with

award-winning cinematographer Clarence Peters to create a music video for “Johnny”, which was released in March 2014 to critical acclaim and had more than 32 million views on YouTube, as of December 2015. Alade joined M.I, Waje, Timi Dakolo, and Burna Boy in singing the theme song for Port Harcourt, the UNESCO 2014 World Book Capital, as part of a project urging young people to read and stay in school. Shortly

after that, Alade released a new single entitled “Tangerine”, featuring Selebobo; the critically acclaimed track charted across Africa. She appeared as a guest artist on Falz’s debut album. She released her debut album, King of Queens, on October 2, 2014, and then went on tour. Yemi Alade then released her second studio album, titled “Mama Africa”, in March 2016. She once occupied the red chair at The Voice Nigeria season two, a mu-

sic talent show. Then, her presence was well-felt as she joined the trio of Timi Dakolo, Patoranking and Waje who reprise their roles as coaches, critique contestants’ performances and guide their teams of selected artistes through the remainder of the season whilst also competing to ensure that their act wins the competition. “Yemi Alade is widely recognised as one of Nigeria’s biggest musical exports with incredible appeal across the continent and in other international markets. Not only is she an amazing vocalist, Yemi is also recognised for her energetic and entertaining performances on stage”, Wangi Mba-Uzoukwu, who was then director, M-Net West Africa, explained on why Alade joined The Voice Nigeria artistes coaching crew. But she thinks her music is beginning to mature with more electrifying performances, exciting albums, collaborations, tours and concerts in the offing for her fans and the Nigerian vibrant music scene. She urges fans to look out for more energy on the stage as she is ready to excite with her music.

TNT TV gets new management to improve operations Endurance Okafor

n a quest to remain on top of competition and ensure quality service delivery, the new management of TNT Television station, popularly known as Tiwa ‘N’ Tiwa, meaning ‘our own’ has recently engaged experienced professionals for proper management of the TV station to satisfy the increasing yearning of viewers. Before now, the T V station was purely music based programmes, but the new management has taken a step further to make the programmes all encompassing. Speaking on the new features for TNT TV and management strategy to widen its programmes and operation to ser ve better far and near viewers, Teslim Ajayi, the new managing director, said, “The new management team which comprises of seasoned broadcasters and managers are fit to deliver results.” The managing director

who was a management staff of Lagos Television before retirement after serving meritoriously for 35 years as the Head, Monitoring and Evaluation Department in charge of Content, Control and Operations of the station promised to apply his experience on the new assignment. He has produced and directed award winning movies and programmes while at Lagos Television and equally directed the first language (Yoruba) Tele novella for Galaxy TV shortly after leaving the service of Lagos Television. Other new management staff in the team are; Stella Adedeji, a seasoned advertising practitioner and brand building expert, Layo Abifarin, advertising practitioner/media sales expert and Femi Solarin, who is in charge of Administration. According to the media organisation, TNT is a station established in 2011 and runs a 24-hour Indigenous music, movie, Lifestyle, Sports and Entertainment channel that presently airs on Gotv and

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Channel 111. According to Ajayi, the key objective of the TV station is to promote and seek ways to drive a wider reach for the Nigerian culture home and abroad. Tiwa ‘N’ Tiwa TV is well rated and has a strong resonance with the Cable channel viewers of GOtv, a fast growing and well circulated television channel which has penetrated over 26 states in Nigeria and millions are glued to it. In view of the above, “we are in process of adding other platform’s channel carriage like DStv, Startimes and Free TV to help direct more eyeballs and make us a default station globally due to our unique selling point as an infusion based platform with local elements fused into our programmes and transmit Yoruba, English and Pidgin.” Since the introduction of its creative programmes that are extremely entertaining to TV viewers nation-wide such as TNT E News, O’Shapra Live, Kilon Happen and Gbe Body, De matter, Underground, @Businessdayng

Lafta moments, Evolution, Celebrity playlist, 5 things, Hits nonstop, Sports spectrum and Sports spectacular amongst others, major advertisers and brands have now seen the T V station as one of the best media channels to reach their consumers across the country and have been placing their TV commercials to a highly notable advantage of their brands since early 2018, as disclosed by the media organisations. “A major advantage of the new TNT television is the live on-line transmission which allows Nigerians and Africans in Diaspora to view and enjoy our programmes world-wide and even locally for those who are not currently on the GOTV bouquet but are keen on enjoying unprecedented entertainment on Television,” Ajayi said. In addition, Damilola Adefemi, the group managing director, said that they are quietly redefining television entertainment in Nigeria to ensure that there will never be a boring moment in our homes.

Friday 26 July 2019

BUSINESS DAY

entertainment For the love of the job! Business etiquette

Janet Adetu Do you love your job? How productive are you? once worked with a colleague who was nicknamed ‘workaholic’. He was always found working at his desk with his head down writing something. If you ever came across him in the corridor he would always appear so rushed, barely offering a greeting, he never had the time to stop for any discussions. He eventually became the favourite of clients as he looked busy, efficient and passionate about his job. It took a while for us to realize especially with the overflowing pile of work at his desk that what appeared to be was never. He was indeed identified as a productivity fraud spending precious time busy doing nothing. The lesson here is that it is one thing to be busy and another to be productive. For me once I have prepared my’ to do’ list for the day, I am of the initial opinion I will get all done effectively. However half way through the day I am always wishing that the day is 30 -36 hours instead of 24hours because the day goes by so quickly. The question is : Do I feel productive especially when I am yet to complete my daily tasks? The truth is that many of us are working more than we planned, we are operating at 120% but still feel like we cannot keep up. So in reality the trick to life is for us to work SMARTER not HARDER. We are living in a very stressful

global world where high technology is fast taking over, so much so that some of us are trying hard to stay with the flow. Social media has revolutionized the act of communication making it easier and faster. Goals and aspirations have become wilder, riskier, and more competitive. The want to achieve, improve the quality of life and become more promotable has never been more apparent. Therefore the quest for positive successful personal and professional productivity is a task that must be accomplished if you want to stay relevant. In order to maximize priorities and productivity it is time to discover your best, run with it and make it happen. Keys to Maximizing Your Productivity i. Identify Your Positive & Negative Qualities: Conduct an in-depth appraisal of yourself finding facts and not faults. This will help you form a basis for improvements. Emphasize more on your positives and do not dwell on your inadequacies. Include in your list those things that matter most to you, make them your priority. Identifying your positive traits will help you stay focused and assist in increasing your productivity both personally and professionally. ii. Be Goal-Oriented and Forward Thinking Working endlessly without a goal can be futile. To be productive you need direction that is time bound and

achievable. When setting your goals you should visualize your success with a positive attitude. Your passion for your vision will drive your productivity up and set you on the right path. Along the way be open yo possible changes, a few risks but always believe you can do it. iii. Associate with Positive People It goes without saying that when you surround yourself with negative people chances are they will put your ideas down or discourage your efforts. This in turn will demoralize you and sabotage your self-esteem. An optimistic boss will always encourage his / her subordinates. Surround yourself with people who you find encourage, inspire and motivate you. This will boost your energy, spur you to increase your knowledge base and discipline you towards ensuring that you achieve that which you have set out to achieve. In such a competitive environment we live in you need to be constantly encouraged to relieve yourself of the impending stress you experience daily. Positive leaders bring positive attitude. iv. Polish yourself Image Your image is everything, the beginning of you creating a good or bad first impression. A successful person has a deep sense of self -worth and a good self –image. Having a good self- image is the foundation from which you’re self – esteem, self – confidence and attitude arises from. When you polish your image you say a lot about yourself without saying a single word. When you feel good about yourself you are confident to excel in any project or mission. Dress the way you would like to be addressed. Be sensitive and pay attention to detail when choosing what to wear daily. Dress appropriately recognizing the occasion, day of the week, time of day. Ensure your clothes fit properly, accentuate your body and feel comfortable. Try to colour coordinate your dress sense effectively, compliment

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Goals and aspirations have become wilder, riskier, and more competitive

your appearance with the correct accessories and spice your look with fabulous shoes. Your image is incomplete with me talking about the importance of grooming and hygiene. The easiest way to sabotage your image is to look unkept, give off an overwhelming odour and appear unapproachable. Identify a smell you like and are comfortable with, take care of your hair, nails, face and feet regularly. Your objective in being productive is for people to see you and trust you enough to want to do business with you. Creating, establishing and maintaining relationships is key to maximizing productivity. v. Be a Team Player ‘No man is an island’ - is a popular saying that could not be further from the truth. Just like I explained about my colleague who was busy doing nothing, this is because he operated alone. He was never a team player so became quite anti-social and inefficient. In being a team player you are able tap from a wider pool of knowledge. You therefore gain more and can direct your level of productivity positively. A team player should equally share information, be open to opinions, constructive criticism, new ideas and advice. When you work in a team you work in common agreement towards a common goal. As a team your achievements are greater, provided you are able to get everybody to follow the vision, accomplish their individual and collective tasks and motivated to achieve. With all these in check as you increase your productivity you will automatically increase that of the team. Just love that job! Please share your experience with me by sending an email to or janet.adetu@jsketiquetteconsortium.com. / jtadetu@gmail.com Follow and like @janetadetu @jsketiquetteconsortium I look forward to hearing from you.

Avengers: Endgame outpaces Lion King by N120m in opening weekend ticket sales BUNMI BAILEY

espite the hype on the new “Lion King” animated movie, it did not surpass its expectation in ticket sales, which grossed N68.8 million last weekend as against N188.2 million from the Avengers: Endgame” movie ticket sales. The figures of the tickets sales of the Disney movies are sourced from the Cinema Exhibitors Association of Nigeria (CEAN), an association of cinema owners, operators and managers meant to promote and protect the value of cinema exhibition in Nigeria. From the conversations of different movie lovers, most of them were not surprised about the performance of the ticket sales based on the fact that the storyline was known as against Avengers, which had huge suspense. Ruth Udemba, a writer said, “I am not really surprised because people already have an idea of what the storyline is all about. Unlike the Avenger’s Endgame, which had people in huge suspense after its sequel Infinity War, which had people actively waiting for Endgame since it was closing of the

series.” Olumide Akintoye, website designer, said that the movie is a replay of the cartoon that was shown in 1994 and it is not a new thing. When Beyonce Knowles, a famous female musician released her latest album last week, Friday, July 19, 2019 title ‘The Lion King: The Gift’, which featured several Nigerian artistes like Wizkid, Burna Boy, Tiwa Savage and a host of other African acts, it treaded and still treading on twitter with fans calling it ‘inspiring’ and ‘emotional.’ The album is inspired by the 2019 remake of the classic Disney movie ‘Lion King. The Avengers: Endgame beat Lion King probably because of the hype surrounding it, especially Beyonce’s collaboration with six top Nigerian musicians for the movie soundtrack album. Lastly, the pre-release hype on the social media, especially twitter played a part in the surprise as it seemed the original Lion King released in 1994 was almost everybody’s favourite film in their childhood years. Ayorinde Akinloye, a consumer analyst at CSL Stockbrokers, in his own opinion, said that the timing of release of both movies is the biggest difference not necessarily the hype.

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“The timing of the release of Avengers Endgame was around Easter. Thus, consumers naturally must have planned the spending for the movie premiere. “Also, the movie was released towards the end of the month when most workers have received salaries”, Akinloye further added. But in the last weekend The Lion King movie had the highest movie sales, followed by Spider Man: Far From Home (N14.8 million), Bling Lagosians (N8.8 million), Stuber (N2.7million) and (N1.6 million) from Aladdin.

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Globally, Disney’s ‘The Lion King,’ took in a whopping $454.4 million last weekend making it the 9th highest global debut of all time, said Comscore box office ratings. The Lion King is a 2019 American photorealistic computer-animated musical film directed by Jon Favreau, written by Jeff Nathanson, and produced by Walt Disney Pictures. It is a remake of Disney’s traditionally animated 1994 film of the same name. The film stars the voices of Donald Glover, Seth Rogen, Chiwetel Ejiofor, Alfre Woodard, Billy Eichner, John Kani, John Oliver and Beyoncé Knowles-Carter, as well as, James Earl Jones reprising his role from the original film. The film was theatrically released in the United States on July 19, 2019. While Avengers: Endgame is a 2019 American superhero film based on the Marvel Comics superhero team, the Avengers was produced by Marvel Studios and distributed by Walt Disney Studios Motion Pictures. It is the sequel to 2012’s The Avengers, 2015’s Avengers: Age of Ultron, and 2018’s Avengers: Infinity War and the twenty-second film in the Marvel Cinematic Universe (MCU). It premiered in Los Angeles on April 22, 2019, and was theatrically released in the United States on April 26, 2019, in IMAX and 3D

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Friday 26 July 2019

BUSINESS DAY

LEADINGWOMAN

Olayinka Aro-Lambo, stitch by stitch, she treads her way to living in the reality of her dreams KEMI AJUMOBI

n 2009, the young girl with a sketch pad and pencil in hand launched her fashion brand with a debut collection, Denim Deluxe. A decade after, we have come to know Olayinka Aro-Lambo, creative director and fashion enthusiast of Moofa Designs, a high-end womenswear label known for merging femininity, sophistication, and practicality. The celebration of the MOOFA brand embodies both glamour and affordable luxury that appeals to the refined, independent woman. Season after season, MOOFA continues to grow in popularity with a strong celebrity following participating in prestigious runway shows such as The GTBank Fashion Week, Lagos Fashion and Design Week (LFDW), Music meets Runway, Glitz Africa fashion week, Africa fashion week London and more. Very often reminded about her path to become a top name in fashion, Olayinka set up her fashion school to provide knowledge and support for not only young but aspiring creatives who have the passion and discipline to forge a career in this line of work. Born and raised in Lagos Nigeria, Olayinka attended Olabisi Onabanjo University with a degree in sociology before starting her design career in 2009. Early life I am the mother of triplets. I am the creative director of Moofa. Growing up for me was quite challenging because I lost my mum at the age of 2 and my dad at 13. I have two siblings and I was the last child of my mother. I moved in with my Aunt in Victoria Island, and living with them I realized that growing up without my parents made me see life in a different light. I grew up with a lot of women and I saw that you can achieve anything you want as long as you can work for it straightforwardly. For me, I just want to be the best version of myself. The people that took me in, I didn’t want to disappoint them so I worked hard because nothing was handed to me. I think living on the Island gave me a bit of an advantage with the way I see life. It is either you want to do good or be on the other side of the able. I knew what it is to be hungry and to have needs and wants but settle for basic needs. So, to be able to afford what I wanted and make sure to never go hungry I have had to work extra hard. Education and my passion for sewing, I combined both I finished my University education at Olabisi Onabanjo and studied sociology and anthropol-

ogy. I wanted to study fashion after secondary school. My mum was a seamstress and she liked designing clothes, but at that time, nobody paid attention because it was just seen as ‘tailoring’. I really enjoyed sewing, especially in J.S.S 3 when we took clothing and textile course and my teachers will commend me and be very impressed with me. ‘Unfortunately’ till now, I have no plan B because sewing is all I ever wanted to do. I wanted to do my own thing and do it right, and to get to where I wanted to get to, I needed to be the best I can be, be focused, work smart, be dedicated and consistent to my dream. It is never easy, because my family wanted me to be a nurse so I can go abroad to earn a living and they didn’t understand the career path I chose. My family told me I must go to the university and study Accounting and I had only had basic knowledge of calculations. When I got to University, I told the registrar that I wanted to study fashion, and the nearest course was Sociology, which I ended up studying while looking for fashion schools till I finished. After university, I found a fashion school in Jakande in Lagos but I had no money to pay for it, and I couldn’t go to my family for money because they didn’t understand what I was doing. I spoke to Lanre Olusola who is married to my cousin Dupe (now Dupe Olusola). He paid for my fashion school training. He was the only one that understood, so he paid N50, 000 which was the school fees as at 2008. I went to the fashion school and even had to save money and not depend on my family. I started sewing clothes for people, a few aunts and friends who continued to introduce me to other people. It was frustrating at first and I was not sure at times if I wanted to continue. It was really tough. I got a loan from a Microfinance bank to further the little steps I was taking in my business, which helped me start and I struggled to pay the loan so I had to work extra hard. Being hungry made me prudent, I don’t live beyond my means because I don’t want to go back to where I came from, and my children must grow up knowing to work hard for what they want because I work hard. What informs your choice of style and how have you been successful in carving your niche? I didn’t plan to carve a niche, it just happened. I love the damask fabric and I like creating new styles within the direction of that fabric, so people tend to relate it with me. I like to use damask and at times brocade. It was not something I planned but it grew on me. I also www.businessday.ng

try not to copy. Fashion school and style book collection Every year, I try to do a new set of designs that people are inspired to make for weddings and any other occasions. Most of my clients are returning clients, so most of the times I try to customize fabric and do a new design, because although we do new clothes on a weekly basis, people always want something different. For people who aren’t sure of what they want, they get to look through the look book I make, to select and create what they want. What are the challenges you have experienced and currently experiencing in your line of work? Some people coming in to steal your staff because they don’t want to train theirs is one of the problems I have encountered. Even students I train do it. When you are straightforward, you will get a lot done than when you are trying to steal from people. Karma is real I believe, so what goes around comes around.

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How has marriage been? Marriage has a lot of ups and downs, but my husband has been very supportive through it all. We went to secondary school together; he was one of those cool boys back in school. We lost contact when we finished school and started talking after he saw my picture on a friend’s phone. He sent me a message on Facebook which I couldn’t reply because at that time, it was all about work for me. I wasn’t in the space of dating and then he came back from London and we started communicating on BBM. He played a major role in my business and trusted that I could do what I was doing well, so he invested in it. By the time we were about to get married, he asked me “Do you want to put so much in a wedding or we invest in your business?” so we settled for a small wedding in my compound and put most of our money into my business. I am happy I did that because where I am today couldn’t have happened just like that. Till date, my husband is very supportive. Having Triplets I always wanted twins, but I never thought of triplets. After @Businessdayng

my scan, I was shocked especially because I never planned for it and I really just wanted to enjoy life for a while, be a mum and then go back to work. It was so unplanned and unbelievable. My husband even said ‘it is not possible’ and we kept going for scan because it was hard to accept, but the doctor made us come to terms with it. Pregnancy was ‘crazy’; I could not eat or sleep properly for the first three months to six months. I had to sit and position my body with pillows to sleep. It was quite uncomfortable especially since my kids were big and long. My stomach was so huge that I had to buy size 22 dresses to wear. I travelled abroad to have the kids before I was 28 weeks or they wouldn’t have allowed me travel. I had to do a caesarean surgery, as the doctors did not agree for a regular birthing process and when the triplets finally came out, I cried as I held them and I am sure I could not have wished to have it any other way. Read the concluding story of Olayinka’s inspiring story on our website www. businessday.ng as she graces our Women’s Hub cover for this week. You are just a click away!

Friday 26 July 2019

BUSINESS DAY

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Friday 26 July 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 25 July 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 232,821.23 6.55 -1.50 79 824,418 UNITED BANK FOR AFRICA PLC 193,226.73 5.65 0.88 257 35,700,633 ZENITH BANK PLC 579,265.31 18.50 -0.54 253 10,251,918 589 46,776,969 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 199,218.87 5.55 -1.77 163 7,720,328 163 7,720,328 752 54,497,297 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,544,314.13 125.00 -1.57 146 3,379,531 146 3,379,531 146 3,379,531 BUILDING MATERIALS DANGOTE CEMENT PLC 2,913,926.77 171.00 -1.16 39 726,016 LAFARGE AFRICA PLC. 231,952.26 14.40 1.77 82 3,086,753 121 3,812,769 121 3,812,769 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 308,933.39 525.00 - 6 71 6 71 6 71 1,025 61,689,668 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 53,228.18 55.80 - 25 49,022 PRESCO PLC 44,800.00 44.80 - 6 5,305 31 54,327 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,380.00 0.46 -4.17 13 842,893 13 842,893 44 897,220 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 847.13 0.32 - 1 1,000 JOHN HOLT PLC. 179.01 0.46 - 0 0 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 40,647.99 1.00 -1.96 177 11,666,655 U A C N PLC. 16,855.58 5.85 3.54 31 770,855 209 12,438,510 209 12,438,510 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 23,892.00 18.10 0.56 17 310,885 165.00 6.60 - 0 0 ROADS NIG PLC. 17 310,885 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,092.09 1.19 - 88 6,180,874 88 6,180,874 105 6,491,759 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 0 0 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 5 105,821 GUINNESS NIG PLC 100,757.61 46.00 - 35 116,912 INTERNATIONAL BREWERIES PLC. 118,622.89 13.80 - 3 21,000 NIGERIAN BREW. PLC. 479,814.12 60.00 - 43 241,424 86 485,157 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 89,750.00 17.95 0.56 332 1,342,090 DANGOTE SUGAR REFINERY PLC 127,200.00 10.60 - 36 268,700 FLOUR MILLS NIG. PLC. 60,890.64 14.85 6.07 61 1,269,866 HONEYWELL FLOUR MILL PLC 7,692.29 0.97 - 13 157,300 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 1 100 NASCON ALLIED INDUSTRIES PLC 35,767.42 13.50 - 13 220,706 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 456 3,258,762 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 21,411.50 11.40 - 16 49,343 NESTLE NIGERIA PLC. 1,030,453.13 1,300.00 - 35 34,564 51 83,907 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,653.14 3.72 - 16 255,392 16 255,392 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 23,822.86 6.00 - 24 778,300 UNILEVER NIGERIA PLC. 183,840.17 32.00 - 14 134,704 38 913,004 647 4,996,222 BANKING ECOBANK TRANSNATIONAL INCORPORATED 165,145.96 9.00 -1.11 43 9,213,380 FIDELITY BANK PLC 46,649.42 1.61 -0.62 59 3,823,834 GUARANTY TRUST BANK PLC. 846,146.40 28.75 -0.17 151 7,963,147 JAIZ BANK PLC 12,374.98 0.42 - 4 61,806 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 64,490.54 2.24 -4.27 21 768,200 UNION BANK NIG.PLC. 199,477.16 6.85 - 15 104,874 UNITY BANK PLC 6,779.82 0.58 - 1 50 WEMA BANK PLC. 23,916.17 0.62 1.64 16 621,588 310 22,556,879 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,296.73 0.62 -1.59 12 574,418 AXAMANSARD INSURANCE PLC 17,325.00 1.65 - 4 16,030 2,439.00 0.30 - 0 0 CONSOLIDATED HALLMARK INSURANCE PLC CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 - 7 330,990 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 487.95 0.38 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC LASACO ASSURANCE PLC. 2,563.20 0.35 - 5 403,713 LAW UNION AND ROCK INS. PLC. 2,019.28 0.47 - 2 75,119 LINKAGE ASSURANCE PLC 4,080.00 0.51 - 1 125,000 MUTUAL BENEFITS ASSURANCE PLC. 2,346.27 0.21 5.00 15 1,609,100 11,617.11 2.20 5.77 5 124,270 NEM INSURANCE PLC NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,422.15 0.45 - 0 0 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 1,751.57 0.21 5.00 5 527,102 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 4,817.79 0.36 -10.00 23 1,077,458 79 4,863,200

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MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 2,698.23 1.18 4.42 10 251,735 10 251,735 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,158.00 0.99 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,280.00 3.64 1.11 22 302,356 35,879.37 6.10 - 5 45,850 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 34,258.69 1.73 8.81 85 73,265,667 ROYAL EXCHANGE PLC. 1,131.98 0.22 - 0 0 STANBIC IBTC HOLDINGS PLC 390,165.07 38.10 - 13 4,027,024 12,720.00 2.12 3.41 51 4,671,297 UNITED CAPITAL PLC 176 82,312,194 575 109,984,008 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 781.69 0.22 - 3 121,036 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 3 121,036 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 -9.09 6 200,770 6 200,770 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 8,554.08 4.10 - 5 23,650 GLAXO SMITHKLINE CONSUMER NIG. PLC. 9,567.01 8.00 - 6 56,305 MAY & BAKER NIGERIA PLC. 4,140.56 2.40 - 1 40 1,044.54 0.55 - 0 0 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 12 79,995 21 401,801 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 6 150,044,000 6 150,044,000 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 648.00 6.00 - 0 0 TRIPPLE GEE AND COMPANY PLC. 346.47 0.70 - 8 12,903 8 12,903 PROCESSING SYSTEMS CHAMS PLC 1,267.94 0.27 8.00 6 1,040,200 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 1 50 7 1,040,250 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,215,762.01 323.50 - 4 1,291 4 1,291 25 151,098,444 BUILDING MATERIALS BERGER PAINTS PLC 1,825.89 6.30 - 3 2,100 CAP PLC 17,325.00 24.75 - 10 14,749 CEMENT CO. OF NORTH.NIG. PLC 163,636.59 12.45 -0.80 62 912,433 FIRST ALUMINIUM NIGERIA PLC 844.14 0.40 - 0 0 MEYER PLC. 313.43 0.59 - 0 0 1,959.74 2.47 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 75 929,282 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,641.98 1.50 0.67 15 391,681 15 391,681 PACKAGING/CONTAINERS BETA GLASS PLC. 33,173.14 66.35 - 5 4,000 GREIF NIGERIA PLC 388.02 9.10 - 0 0 5 4,000 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 95 1,324,963 CHEMICALS B.O.C. GASES PLC. 2,110.36 5.07 - 3 10,230 3 10,230 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 92.40 0.42 - 1 54,585 1 54,585 4 64,815 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,377.79 0.22 -4.55 25 1,751,734 25 1,751,734 INTEGRATED OIL AND GAS SERVICES OANDO PLC 47,239.37 3.80 -5.00 52 518,020 52 518,020 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 16 30,071 CONOIL PLC 14,052.53 20.25 - 34 101,130 ETERNA PLC. 4,368.88 3.35 - 10 162,448 FORTE OIL PLC. 22,793.42 17.50 -3.58 40 256,771 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 1 20 TOTAL NIGERIA PLC. 43,289.03 127.50 - 44 41,771 145 592,211 222 2,861,965 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 1 20 1 20 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,112.54 5.28 - 7 35,074 TRANS-NATIONWIDE EXPRESS PLC. 328.19 0.70 - 4 73,268 11 108,342 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 2,785.59 1.34 - 1 5,000 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 0 0 1 5,000 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 241.92 0.40 - 4 8,999 LEARN AFRICA PLC 1,080.03 1.40 - 9 288,777 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 776.54 1.80 - 5 28,130

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Friday 26 July 2019

BUSINESS DAY

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Friday 26 July 2019

BUSINESS DAY

Sports Nigeria tops list of countries that discussed AFCON 2019

…. As more than 10million people shared their passion and excitement moments on Facebook on Facebook, according to a report released by Facebook Algeria star and captain Riyad Mahrez was the most talked about player, followed by Mohamed Salah from Egypt. Nigeria, Senegal, Algeria, South Africa and Tunisia were the most discussed teams. The countries that discussed AFCON the most were Nigeria tops the list of countries that discussed AFCON, followed by South Africa, Ghana, Algeria and Senegal. Egypt, the country who hosted the championship, was the 6th most engaged in the conversation Facebook measured Facebook conversation including posts, comments, shares, likes and reactions related to the tournament. All data was aggregated and de-personalised. Conversations were identified based on keywords and combinations of keywords that were associated with discussions around AFCON 2019.

Stories By Anthony Nlebem

r iday, July 19, 2019, marked the end of the 2019 Africa Cup of Nations (AFCON), a spectacular tournament that had people glued to their screens for the month of its duration. Africa moved to the rhythm of AFCON 2019, with more than 10 million people choosing Facebook to share their passion and excitement. People across barriers of nation, language, class and culture took to Facebook to discuss the AFCON 2019. Based on data measured between June 21st when AFCON started and July 16th. Over 30 million AFCONrelated interactions (likes, comments, reactions etc) where generated, the semi finals games on July 14th got most people engaged

Esepo wins best boxer prize at GOtv Boxing Night 19

aiwo “Esepo” Agbaje, Nigerian born fastrising featherweight boxer, emerged the best boxer at GOtv Boxing Night 19, held at the Indoor Sports Hall of the National Stadium, Lagos. He was awarded the Mojisola Ogunsanya Memorial Trophy and a cash prize of N1million after being adjudged the best by journalists in attendance. The award was his second, after clinching the first at GOtv Boxing Night 16 held at the Teslim Balogun Stadium in 2018. The boxer wowed the crowd with a commanding perfor-

mance to defeat Waidi “Skoro” Usman, former African Boxing Union (ABU) champion, in their eight-round national challenge bout. He left no one in doubt of his mission from the first bell, as he twice left Skoro sprawling in the first round with vicious punches delivered at a high speed. The 27-year-old, who is undefeated in eight fights, was quicker, more alert and energetic than the former ABU champion, who had a hugely punishing evening. Another big winner on the night was Nigeria’s Rilwan “Baby Face” Babatunde, the

West African Boxing Union (WABU) champion, who knocked out Ghana’s Edem Biki in the final round of their 10-round international challenge bout. Despite suffering a cut above his right eye, Babatunde remained undaunted and rallied back dramatically with three devastating left hooks to end the fight at the start of the last round. While the win saw Babatunde stretch his unbeaten record to nine, it was a first defeat for Biki in 10 fights. In the national lightweight challenge, Rilwan “Real One” Oladosu maintained his un-

Taiwo ‘Esepo’ Agbaje (M); receiving his cheque for best boxer award at the GOtv Boxing Night 19, held at the National Stadium on Sunday www.businessday.ng

beaten streak, after seeing off Hammed “Ese Hammed” Ganiyu with a win via unanimous decision. Also maintaining his unbeaten record is ABU lightweight champion, Oto “Joe Boy” Joseph, who knocked out Tope “Berinja” Agboola their eight-round national lightweight challenge bout. The eight-round national featherweight challenge bout saw Tope “TP Rock” Musa, score a unanimous decision victory over Kazeem “The Light” Oliwo. Adeyemi “Spirit” Adekanla defeated Isaac “I-Star” Chukwudi, Adekanla via a split decision in their national light welterweight challenge bout. In the four-round female national bantamweight challenge, bout, Rodiat Yusuf saw off Fatima Sanni via a second round technical knockout, while Cynthia “Bobby Girl” Ogunsemilore, made light work of Abiodun “Lady Crusher” Adedeji, by securing a first round technical knockout win. Ten journalists from the print and electronic media were honoured for their support for GOtv Boxing Night and contributions to boxing in Nigeria.

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The Money Man: Cristiano Ronaldo earns whopping £780,000 per post on Instagram ... Tops Instagram Sport Rich List for 2019

ristiano Ronaldo beats Neymar and Lionel Messi to top of the Instagram sporting rich list by pocketing a whopping sum of £780,000 per post, according to Instagram analytics website, HopperHQ. Ronaldo could also earn more than £780,000 per post and commands a staggering 173million follower on his Instagram account, 40 million more than in 2018. The 34-year-old is a frequent poster on Instagram as he shares images of his lavish lifestyle and hugely successful footballing career. The former Real Madrid playmaker earns nearly 50 per cent more than any other sports star on the planet, with Neymar sitting in second spot, cashing-in £580,000 per post. And that has translated well into how much he can charge companies when it comes to using his account for promotional purposes. The report shows brands would have to cough out a huge amount of £780,000 per post, over £200,000 more than what he was charging a year ago. Neymar, Messi and David Beckham and NBA star LeBron James join Cristiano in the top five of the sporting list.

Player Followers Cristiano Ronaldo Neymar Lionel Messi David Beckham LeBron James Ronaldinho Gareth Bale Zlatan Ibrahimovic Virat Kohli Luis Suarez @Businessdayng

Posts on Neymar and Messi’s accounts worth £580,000 and £521,000 respectively. It’s not just active footballers that make the list as Beckham and Ronaldinho still have plenty of interest any time they post something on social media. Beckem rake up to £287,000 for showcasing something on his page while Ronaldinho can earn just over £200,000 for a sponsored post. Gareth Bale, Zlatan Ibrahimovic and Luis Suarez are the remaining footballers to make up the list while India sensation Virat Kohli is the only cricketer to make the top 10. The Portuguese superstar, who enjoyed lifting the firstever UEFA Nations League and winning the Serie A title in his first season at Juventus, saw off his two biggest rivals in the game in a report based on how much a sponsored Instagram post could cost brands. HopperHQ.com, an Instagram scheduling tool, analysed data to reveal a list of the highest paid celebrities and influencers on the social media platform. They looked at factors such as average engagement, how often they post and number of followers Sport’s Instagram Rich List for 2019

Earnings (£) per post 173m 784,000 121m 580,000 123m 521,000 57m 287,000 50m 219,000 47m 206,000 40m 175,000 37m 161,000 36m 158,000 34m 148,000

Friday 26 July 2019

BUSINESS DAY

BUSINESS SOUTH-SOUTH COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

NEPC trains 150 exporters in Anambra REGIS ANUKWUOJI, Enugu

he Nigerian Export Promotion Council (NEPC) has recently trained over 150 persons who are into export business and those willing potential exporters in Anambra state on leveraging on the potentials of the state to boost non-oil exports. Addressing the participants, Gertrude Ukoanam regional coordinator of NEPC South East, said that the workshop was to disseminate information on the role of NEPC in export promotion and also to enhance export performance in the state. Ukoanam further called on the exporters to key into NEPCs programs aimed at educating exporters and exporting communities in Anambra state and it’s environs on the export procedures and documentation. This training, the zonal coordinator said would enable the exporters in Anambra harness the export potentials of Agricultural in the state. She also noted that the gesture was a clear indication of taking Anambra state to a higher level in terms of economic development, “Not only through the provision of infrastructures, but also through the export of nonoil products which are abound

REGIS ANUKWUOJI, Enugu

Participants and the executive director NPC

in the state,” she said. Some of the resource persons include the permanent secretary, Anambra State Ministry of Commerce and Industry, Chibueze Okolie, who also was the chairman of the function, presented a paper on the importance of export trade in the development of Nigerian economy. Another resource person, Okey Okwuosa, a senior special assistant to the executive

governor of Anambra state also spoke on exploring the export potentials of Anambra state for inclusive economic growth. Some of the participants who spoke to BusinessesDay commended NEPC for the depth of information shared during the workshop. They appealed to the NEPC to make the teaching and guidance a continues program to them achieve success in their export ventures.

Oil firm brings succour to host community as thousands receive free medical service ANIEFIOK UDONQUAK, Uyo

elp has come the way of the host community of Oriental Resource s E n e rg y , a s t h e o i l f i r m operating in Mbo Local Government Area of Akwa Ibom State provided the people with free medical care. The exercise which was organised in collaboration w i t h a n o n - g ov e r n m e n t a l o r g a n i s a t i o n , Fa i t h O p t i cal and Medical Ser vices attracted a large crowd of beneficiaries. A breakdown shows that f e w e r t ha n 4 , 6 3 4 p at i e nt s received treatments for various ailments with 33 undergoing eye surgery, while over 100 patients got eye glasses and took place at the Health Centre, Enwang, the local govern-

Group condemns clustering of petrol stations at residential areas in Enugu

ment headquarters. It saw p re g n a n t w o m e n a l s o re ceiving ante-natal kits even as school children and their teachers got home with hygiene sets. Speaking during the exercise, Anslem Okere, deputy manager community re l a t i o n s o f t h e c o m p a n y said the free medical exercis e was par t of the comp a n y ’s c o r p o r a t e s o c i a l responsibility programme aimed at ensuring a healthy populace in their host communities. “We take host communities as major stakeholders in our operations. We have done the free medical outreach on several occasions and the turnout has always been tremendous. This year, we added the free eye surgery because the people demanded for it and we enwww.businessday.ng

sure that their demand was met and they have appreciated the gesture so much. We have also embarked on other social investments including, scholarship, skill acquisition center at Enwang, 100 units of housi n g a t E n w a n g Te a c h e r s ’ Qu a r t e r s at Ef f i at, a m o n g others,” he said. A s u k w o E y o, c h a i r m a n of the local government c o u n c i l w h o d e c l a re d t h e programme open, applauded the oil company for the exercise, which he stated, would go a long way in m e e t i ng t h e h e a l t h n e e d s of the people and complementing g overnment ’s efforts at providing affordable health care to the citizens. “This exercise is indeed a welcome development. We are happy with this kind of gesture. I urge other firms

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to take a cue from this company,” he said. Managing Director, Faith O p t i c a l a n d M e d i c a l S e rvices, David Ehimhen said need assessment led to the inclusion of eye surgery i n t h i s y e a r ’s o u t r e a c h , describing the weeklong exercise as successful. He lauded the community for their cooperation One of the beneficiar ies, 73-year-old Sylvanus Bassey whose sight was restored lauded the initiative s ay i ng i t ha s c ha ng e d h i s life for good. A member community relations committee, Mfon He n r y a l s o e x p re s s e d d e light over the free medical service; but however, urged the firm to increase the budgetar y allocation of the yearly programme to accommodate more patients.

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e si d e nts o f a n Enu gu neighbourhood, Oneday Bus Stop along Agbani Road Enugu and its environs have called on the E nu g u g ov e r n m e nt t o s av e them from a ticking time bomb that could result from clustering the bus stop with petrol and gas stations. The bus stop is housing three functional petrol stations, one gas filling station a n d a n o t h e r p e t ro l s t at i o n under construction, which the residents see as a threat to their lives; as it could lead fire disaster if not checked. Ogbonnaya Oji who spoke to BusinessDay condemned the attitude of clustering the place with highly inflammable industries close to a hotel, a Church and residential buildings. “L ocating petrol and gas stations around residential and major bus stops in Enugu metropolis, and even many cities in this countr y may caus e untold havo c to residents one day, if not checked,” he said. He called on the Department of Petroleum Resources (DPR) and town planning authority to intervene; lamenting that where four fuel and gas stations were sited together couple with residential buildings was dangerous. “Petrol is highly inflammable product that should be taken far away from fire or fire igniting objects like roadside corn and pear rosters and other related items to avoid devil’s mistake,” he said. Ogbonnaya said it was better imagined than for one to see the ugly situation experienced at the bus stop when any of the tankers caring products is discharging. Petrol tankers normally cause untold hardship for motori s t s, a n d c re a t e a g r i d l o c k with vehicles forming a long line w ithout a single space for even pedestrians to move through. He advocated for the type of measures taken by Enugu g ov e r n m e nt t o s av e A k a nu Ibiam International Airport, where many structures and petty businesses were vacated from the airport area. He said government should ask most of the filling stations sited within residential buildings in Enugu metropolis to relocate to Enugu-Port Harcourt expressway.

Friday 26 July 2019

BUSINESS DAY

news Near misses show aviation sector in need ... Continued from page 1

16.21 percent to 13,762 in domestic airports in Lagos, Abuja, Port Harcourt, Kano and Enugu in the first quarter of 2019, from 11,842 passengers in first quarter 2018. John Ojikutu, aviation security consultant and secretary general of the Aviation Safety Round Table Initiative (ASRTI), expressed worry that the Nigerian Civil Aviation Authority (NCAA) may not be thorough in carrying out safety audits on the airlines, which is impacting the operations of domestic airlines. The first half of 2019 has seen many reported and unreported serious cases of incidents and accidents. A d o c u m e nt s e nt t o BusinessDay by Accident Investigation Bureau(AIB), a body responsible for investigation of air accidents, showed that between 2018 and 2019, there were 24 reported cases of accidents and serious incidents. Out of this figure, 13 cases were reported in 2018 while there are already 11 reported cases in just first half of 2019. On Tuesday, July 23, a Boeing 737 with the registration marks 5N-BQO, operated by Air Peace Limited, made an emergency landing at the Mur tala Muhammed International Airport after its nosewheel failed. According to a statement by AIB, from the information provided, the aircraft’s nosewheel collapsed on landing on the runway (18R) and gear tyre cut off. Also, a Boeing 737-500 aircraft operated by Medview Airline on the same day made an emergency landing deploying oxygen masks mid-air. AIB said the airline had a serious incident while airborne which caused the crew to deploy oxygen masks and embark on emergency descent procedure. Three weeks ago, Air Peace Boeing 737-500 aircraft skidded off the Port Harcourt International Airport runway upon landing due to poor weather and flooding on the airport’s runway. In February, a chopper operated by Caverton Helicopter with Vice President Yemi Osinbajo on board crash-landed at Kabba, Kogi State, over failure of the operator to conduct site survey of the landing field prior to the flight and failure to carry out safety and risk assessment. Experts say airlines are bound to experience operational issues but when it becomes frequent, it calls

for concerned authorities to step up checks on the airlines and their airplanes. Tayo Ojuri, chief executive officer, Aglow Limited, an aviation support services company, told BusinessDay that it is a matter of NCAA re-evaluating the safety standards in terms of safety management systems, operational and maintenance systems. Ojuri explained that taking cognisance of the fact that this is rainy season, it is mandatory that factors such as weather issues, navigational aids and airport infrastructure are addressed. “It is not just one thing that affects safety; it is a function of various other factors. From the airline perspective, we have to look at the operational, safety and IATA Operational Safety Audit (IOSA) standards. From the airport perspective, we need to know if the runway is safe especially in rainy season,” Ojuri said. “Do we have adequate infrastructure to cope with all these challenges? We need to evaluate these issues for operations to be seamless. No operation is perfect but safety standards need to be measured and re-evaluated because they are dynamic and human lives are involved,” he said. Mishaps between 2018 and 2019 include runway excursion, contained engine failure, smoke-in-thecabin, ground collision with baggage conveyor, in-flight total loss of electrical power, ground collision during fuelling, engine failure, depressurisation, attending to land when number one symbol generator went off, crashed on landing, force landing, landing with gears up, hard landing and collapsed nosewheel on landing, according to the AIB document. These incidents involved Olam Nigeria Limited, Nest Oil, Delta Air, Arik, Air Peace, Dana, Skybird Aviation Limited, Emirates, Nigerian Police Force, Azman, Aero Contractor, IAC Ilorin, Dornier, Caverton Helicopters Limited, NCAT and Medview, the document said. “Anywhere in the world these things happen. They are part of the operational challenges. So, we need to evaluate those safety challenges within the spectrum of safety management system and safety standards of the airline to ensure that maintenance are done and the evaluation is proper and in accordance with IATA regulations,” he explained. www.businessday.ng

L- R: Umaru Ibrahim, MD/CEO, Nigeria Deposit Insurance Corporation (NDIC); Ronke Sokefun, chairman, NDIC Board of Directors; and Femi Gbajabiamila, Speaker, Federal House of Representatives, during the courtesy visit on the latter by the Board and Management of the NDIC.

Abducted NGO worker claims Leah Sharibu has been killed Continued from page 1

tive in the group, Grace is scared her fate would be like Leah’s, a Christian girl from Yobe State who was among 110 Dapchi schoolgirls abducted in February 2018 but whose release couldn’t be secured. The claim is Leah has been killed along with Alice, an aid worker. “I am begging on behalf of all of us. I don’t want such to happen to us and it also happened again with Leah and Alice because Nigeria could not do anything about them, they were not released, they were also killed,” Grace said in the video. But in a statement by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, on Thursday, the Presidency said the video has created more urgency for security to act quickly to rescue abducted workers, including Leah Sharibu. The Presidency could not, however, confirm or deny the killing of Leah Sharibu, but disclosed that “efforts were on to free the aid workers, including Leah

Sharibu”. The Presidency said it has been briefed “by the responsible government agency about the disturbing video showing our citizens, the humanitarian aid workers held captive”, adding it has been given assurances that contact is being made and the captors are being talked to. The Presidency said discussions have been ongoing even before this time, adding that “what this latest incident has done is to bring urgency to the efforts that the secret service is making”. In the video, Grace whose base is at Damasak, Borno State, said she and her coworkers were ambushed by members of the militia on their way to Damasak by Keneri-Chamba ward. “We were caught by an army called the Kaliphas and they brought us here and we don’t know where we are,” she said. Grace makes a passionate appeal to CAN and her organisation, Action Against Hunger, to help secure their release. “I beg Action Against

Hunger. We have families, and some of us have children. I am begging Action Against Hunger that they should do something to secure our release,” she pleaded. According to Grace, this is not the first time aid workers have been kidnapped. “Some ladies were caught, Hauwa and Zipporah. They asked to be released but because Nigeria did not do anything about it, they were killed,” she said. The Non-Governmental Organisation has acknowledged the kidnap of Grace and others in a press statement in which it condemned the abduction and called for the release of its workers. “Action Against Hunger strongly requests that our staff member and her companions are released,” the organisation said. “They are humanitarians and health workers and they chose to dedicate their lives to support the most vulnerable communities in Nigeria. They were only in pursuit of solidarity, humanity and neutrality,” it said.

FG’s import, tax waivers help gas companies ... Continued from page 2

transmission and distribution companies are charged Company Income Tax at the rate of 30 percent instead of the Petroleum Profit Tax (PPT) rate of 85 percent while a PPT of 45 percent is applicable to LNG projects. Gas companies enjoy Investment Tax Credit of 5 percent in the first two phases and 10 percent for LNG project. Royalty rate of 7 percent is applied to onshore operations and 5 percent for offshore operations for all phases. The Federal Government also grants Value Added Tax exemptions on plants,

machinery and equipment purchased for gas utilisation. Nigeria has a proven gas reserve of over 200 Trillion Cubic Feet (TCF), which ranks it the ninth highest in the world. Nigeria is also among the world’s biggest Liquefied Natural Gas (LNG) exporting countries but the challenge has always been using more of the commodity at home. According to the latest Nigerian National Petroleum Corporation (NNPC) monthly financial and operations report, Africa’s biggest economy produced a total of 223.73 billion cubic feet (BCF) of natural gas

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in the month of May 2019, translating to an average daily production of 7,430.96 million standard cubic feet per day (mmscfd). According to the NNPC report, “56.69 percent of the average daily gas produced was commercialised while the balance of 43.31 percent was re-injected, used as upstream fuel gas or flared.” Private investments in mini LNG plants, including Greenville plant and Compressed Natural Gas (CNG) like the one operated by Gasco Marine, appear as Nigeria’s opportunity to ramp local consumption of natural gas. @Businessdayng

EKSU’s N100 award prize exposes Nigerian public... Continued from page 1

than 30 years ago,” Akin Arogundade, EKSU registrar, told BusinessDay by phone. “The school Senate has reviewed the value of the prizes in this category to a minimum of N50,000 for corporate bodies and N100,000 for university prizes.” Checks by BusinessDay revealed that besides EKSU, other government-owned universities are also culpable of the act. In the University of Ibadan, several awards with cash prizes not more than N200 funded through endowments were found on the institution’s website. Among the award prizes are Peter Ajose Alli annual prize of N100 to the best student in each department in the Faculty of Social Sciences; Aboyade Prize of N200 for the best doctoral candidate in Economics and N150 to the best graduating student with First Class Honours in Economics, and Mrs. Juliana Jokotola Senbanjo Memorial Prize of N100 awarded annually to the best student in Religious Studies. Others include S.O. Odeyinde Prize of N50 and a silver cup for the best graduating student in Field Geological Mapping; Samuel Adewumi Senbanjo Memorial Prize, an annual prize of N100 awarded to the best student in Computer Science; the Nigerian Breweries Prizes in Biochemistry and Chemistry, two annual prizes of N100 each awarded to the best graduating students in Biochemistry and Chemistry, among others. At the Federal University of Technology, Akure (FUTA), the School of Management Technology (SMAT) has a list of convocation prizes awarding N5,000 and N10,000 per year for the best graduating students in different programmes, according to BusinessDay findings on the university’s website.

•Continues online at www.businessday.ng

Friday 26 July 2019

BUSINESS DAY

news

NAHCO expands service delivery capacity to meet patrons’ expectations SEGUN ADAMS

he Nigeria Aviation Handling Company, NAHCOAviance plc, has acquired and installed state-of-theart set of equipment for effective service delivery to help it meet patrons’ expectations in the industry. Group managing director, NAHCOAviance, Olatokunbo Fagbemi, states that the feat, part of the company’s five-year transformational plan, is to further position the brand as one of the leading aviation handling firms in Africa. Fagbemi, who spoke at a preannual general meeting forum in Kano on Thursday, says the aviation handling firm is set to use the development to sustain its high level of service delivery across both domestic and international airports in Nigeria and indirectly boost its revenue. Some of the equipment are Passengers’ steps, which can be used by wide and narrow-bodied Aircrafts to convey passengers or engineers; high loaders, which are used to offload containers from the aircraft; Ground power units used to power aircrafts during flight planning; Push backs; air condition units, forklifts, and tractors among others. “New investments in Ground support equipment (GSEs) will help reduce operations cost, as infrastructure failure at the airport, and aging equipment lead to increased maintenance cost. With the injection of new ground support equipment and ongoing improvement of airport facilities, will help to manage operating cost down, and increase

profitability to the delight of our shareholders,” she explains. “We are deliberate and focused on improving and turning around the company. We will focus majorly on strategic initiatives that will deliver operational efficiency and impact the bottom-line.” She adds that the company would in the immediate period support its growth with longterm loans, and may consider accessing the capital market to raise long-term funds to support its long-term growth. She says: “One of the first things that happened when I came is that since logistics is not just about the air, it is also about land and sea, our focus now is: how do we diversify our business to begin to look at the other modes of transportation?” Speaking on the development, the chief operating officer, NAHCO Aviance, Herbert Odika, lauded the effort of the new management of the company saying he was optimistic that the new set of equipment would aid service delivery and help staff turnaround aircraft within the record time across domestic and the international airports in Nigeria. According to Odika, “Aviation has changed in terms of service delivery as we work with Service Level Agreement, which means NAHCO as a service provider to the airlines would have to meet tight deadlines or be penalised. Our target is to be a leader in the continent’s aviation handling business and that is where we belong. We have highly trained maintenance team on ground to ensure the new sets of equipment are adequately maintained.”

Lagos needs priority sector, partnerships to create a 21st Century economy - experts Josephine Okojie

agos State needs to create a priority sector for economic activities and deliberately look for investors that have the capacity, technicalityandfinancialresource to execute projects that can transform the state to a 21st Century economy, experts say. The experts, who spoke at the 9th Annual Public Lecture of the Institute of Chartered AccountantsofNigeria(ICAN),LagosState Public Service Chapter (LSPSC) held in Lagos, Wednesday, also say that the state must seek partnerships to develop critical resources for the priority sector. “We need to create an anchor sector that is a clearly identified priority sector to build economic activities around which the state will anchor all its polities, programmes and projects. Must deliberately seek her market by looking out for investors with the capacity, finance and technicality toexecuteprojectwithintheprioritysector,”AbiodunAdedipe,chief consultant, BAA Consult, said. “Lagos must form an alliance to develop critical resources to be available for the priority sector and build other transportation mode around road infrastructure to address the issues of logistics in the state,” Adedipe said. He gave an example on how Indonesia grew its economy to a 21st century by identifying palm

oil production as its priority sector and building the infrastructure to attract the right investments while forming alliance. He added that if the state can also strengthened its institutions, provide key infrastructures and develop skills with emphases on creative and critical thinking, Lagoswilltransformtoa21stcentury economy. JohnEkundayo,director,Ministry of Economic Planning and Budget, Lagos State, in his paper presentation on Making Lagos a 21st Century Economy: Prospect and Challenges identified uncontrollable population, housing deficits, environmental degradation, poor education system, inadequate healthcare facilities and bulging unproductive youths as major challenges hindering the statefromtransformingintoa21st Century economy. “Lagos should as a matter of urgency proactively harnessed alternative sources of power supply such as embedded power, erection of mass solar panels, and construction of independent power plants,” he said. Similarly, Adebola Olujide Odubore, chairman, ICAN- LSPSC) said, “The state is the eye in which the world sees Nigeria as Lagos is the country’sdoortotheglobaleconomy.” Odubore appreciated the Governor Sanwo-Olu for the palliativemeasuresbeingputinplace now to ease the burden of Lagosians in the area of transportation. www.businessday.ng

L-R: Yetunde Martins, company secretary; Oluseun Ajayi, chairman, and Olaotan Soyinka, MD/CEO, all of Sovereign Trust Insurance plc, at the 24th annual general meeting of the company in Lagos, yesterday. Pic by Pius Okeosisi

Nigerians differ on appointment of legion of political aides JOSHUA BASSEY, ANIEFIOK UDONQUAK, INIOBONG IWOK

peaker of the House of Representatives, Femi Gbajabiamila stunned the nation recently when he announced the appointment of about 33 personal aides. The appointments cover all manner of portfolios, including special advisers and personal assistants on internally displaced persons, gender and equality, political matters (one each from the six geopolitical zones of the country), special needs and equal opportunities, employment and job creation, members’ affairs, adminis-

tration, special duties, intergovernmental affairs, youth matters, executive relations, budgetary and finance, oil and gas, Niger Delta, anti-corruption, former members’ affairs, and the list goes on. Gbajabiamila’s appointments, however, meant nothing when compared to Ben Ayade’s, the Cross River State governor, whose aides, inclusive of special advisers and personal assistants in his first tenure were about 8,000. The two examples capture the near bizarre in government, especially at federal, state levels,

Lifemate launches ‘office furniture products only’ branch with half the price sales

ifemate Nigeria Limited has launched a new showroom in Lekki, Lagos. The new branch unveils an array of furniture for office use and is named “Bossmate”. With an existing 14 showrooms across Nigeria, with location in states such as Ibadan, Warri, Port Harcourt and Abuja. Bossmate, an office furniture only outlet, was commissioned by the regional manager, Lifemate Group, Mr. John in company of some of its customers who were also present to benefit from the 50 percent discount that was up for grabs on all furniture products purchased. The office is situated at Margrola Arcade, Osapa-London Junction, Lekki, Lagos. In the words of Mr. John before the cutting of the tape to officially open Bossmate for business, he said the company was passionate and committed to delivering quality furniture products to the Nigerian people and the world at large, the reason the company comes top among her peers. Olatunji Olufemi, a regular costumer, said the opening prayer before proceedings continued, in an inter-

view, expressed satisfaction with the company’s “direction and special attention to production of furniture products needed in an office environment.” According to Olufemi, after going around the showroom to look at the products on display, “I do not expect any less from Lifemate” as they have again “raised the bar” and he says he “looks forward to making more purchase for his office”. During a tour of the showroom through the two floors, office furniture products such as Center Tables, Office Sofa, Negotiation Table, Save Box, Executive Table, Office Table, Coffee Table, File Cabinet, Leisure Chair, Receptionist Table, and lots of office chairs to suit any need. The “buy at half the price” opportunity saw both customers of the company and passersby troop in, in numbers to buy furniture products. In a talk with Mrs. Olabode, another regular customer with the company, she opined that she was very satisfied with the products she had seen on display and was looking forward to visit again for purchase.

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where presidents, governors and lawmakers elected into public offices appoint legion of aides. Across the 36 states of the federation, the governors hardly pay salaries of civil servants and entitlements of pensioners as at when due, just as they run the affairs of their states with huge debts hanging around their necks. This is also as the Federal Government and organised labour are currently on each other’s throats over the yet to be implemented new national minimum wage of N30,000 signed into effect in April by President Muhammadu Buhari.

According to findings, an average appointee as special adviser or personal assistant to political office holders earn salary equivalent to those of grade levels 14 and 16 in the civil service, aside allowances. While some Nigerians believe these appointments smack of insensitivity, as well as breeds corruption, others, however, think it is a way to create employment. Clifford Thomas, an Uyobased human rights lawyer, described the development as unsustainable and a means of “settling cronies who had worked for the politician to be elected” which breeds corruption.

Lower borrowing cost boosts Flour Mills’ Q1 profit by most in 4 years SEGUN ADAMS

lour Mills of Nigeria, the country’s biggest flour miller by market value, grew its Q1 2019/20 profit by the most since 2016, helped by a pick-up in sales, lower tax expense and a significant cut in borrowing cost in the period. The miller saw profit rise by 16.11 percent to N4.24 billion compared with N3.65 billion in the same period last year. The latest performance halts a decline in the company’s Q1 bottom-line, which started in 2016. Shares of Flour Mills gained 6.07 percent to close at N14.85 per share Thursday. Flour Mills, which is bouncing back from a 19.48 percent decline in its firstquarter profit last year is reaping the benefits of deleveraging its books by 36 percent year-on-year in the review period while sales turned the corner to a 5-year high. The company had said it would continue active balance sheet management. “The objective is to achieve additional reduction in fi@Businessdayng

nance costs in the current year,” the miller said in an investor presentation on its website. As at the end of the AprilJune period, finance cost had been cut down to N4.55 billion compared with N6.20 billion last year. This follows a 30 percent cut in borrowing cost to N22.9 billion in the full year to March 2019 from N32.7 billion in the corresponding period of 2018. Revenue growth grew 1.2 percent as the miller reversed a 10.7 percent decline in sales last year to post N134.75 billion in its recently concluded quarter. The maker of Golden Penny range of food products and Golden Fertilizers noted a drag in its food segment, which slowed some 3 percent. Even though Support Services slowed, AgroAllied and Sugar segments improved. A faster increase in cost of sales than revenue rose meant Flour Mills pared its gross profit, which shrank for the first time in more than three years. Cost of Sales saw an uptick of about 2 percent and gross profit fell to N16.47 billion.

Friday 26 July 2019

BUSINESS DAY

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Friday 26 July 2019

BUSINESS DAY

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38 BUSINESS DAY

Friday 26 July 2019

NEWS

Residents hail Obaseki as contractor intensifies work on Ekehuan Road dualisation

s contractor intensifies work on the dualisation of Ekehuan Road, which leads to the site of the Benin River Port project in Gelegele, residents in the area have hailed Governor Godwin Obaseki for keeping to his promise to drive infrastructural development in the state and open up the state for investment. A cross-section of residents in the area maintained that the GovernorObaseki-ledadministration had done exceedingly well in infrastructuraldevelopmentinthe area, citing the reconstruction of innerroads,layingoffibreopticcables for internet connectivity and the reconstruction of the Samuel Ogbemudia Stadium in the axis. Speaking with journalists at the project site, a resident, Monday Osagie, commended Governor Godwin Obaseki for transforming different parts of the state, noting, “I used to live abroad but with the call of the governor asking us to come back as he is working to make the state

habitable for all, I heeded his call. I am here to contribute my quota to the development of my state. I am pleased and happy as the state has great prospects with Obaseki on the saddle of leadership.” He said that the dualisation of Ekehuan Road will open the area for more development and attract more investors, noting, “I am just amazed by the foresight of Obaseki. Look at the Benin River Port in Gelegele, if completed, it will bring huge investments and revenue to the state, as the Lagos port is already congested. Edo will become a destination for investors.” Another resident, Mr Emeka Ezechi, commended the ongoing dualisation of the road, urging the state government to continue in its unprecedented urban renewal drive, adding, “I trust Governor Obaseki because he is known as Wake and See. The Governor is dear to our hearts and we will stand with him all the way, especially with this project in our area.”

Google brings ‘Nigerian touch’ to major app revisions, reflecting partnerships with local developers

… traffic, routes data for Okada, Danfo, other commercial transportation to feature in Google Maps CALEB OJEWALE

rom Google search to YouTube, Maps and other Apps, Google is used by millions of Nigerians every day. However, these apps have mostlyoperatedwithlittletonolocal touchthataddresspeculiarneedsof the local users. Even the voice used by the Googleassistant(globally)isaWestern accent many people in places like Nigeria struggle to understand, but today, this has changed, along with other locally contextualised revisions, some featuring in Nigeria before anywhere else in the world, and more are expected to follow. The newest improvement to some Google Apps announced at the Google for Nigeria event Wednesdayhaverevealedwhatappears to be a conscious effort by the

tech giant to make purpose-built apps for Africa’s most population nation. Most striking perhaps, is the popular Google Maps used by commuterstolocateplacestheyare not familiar with, and more important for many users in traffic prone citieslikeLagos,forestimatingtraffic and avoiding it when possible. However, considering the bulk of current users of Google Maps are driving themselves or being chauffeured, the newest update in the Maps targets the millions of daily commuters who use public transportation. Google for the first time has introducedanewmodeformotorcycles,popularlyknownas‘Okada’ in Nigeria, using Artificial Intelligence and Machine Learning to calculate travel estimates (a feature

currentlyonlyavailableforvehicles). The motorcycle mode will now be availableinNigeria,BeninRepublic, Togo, Ghana, and Rwanda. Working with Road Preppers, a Nigerian tech start-up said to have mapped all the roads in some cities including Lagos, Accra, and Nairobi, Google has also included a feature that allows users taking public transportation to find routes to their destinations. It shows them bus stops (by local and colloquial name), as well as traffic estimates forthecommercialbuses,popularly known as ‘Danfo.’ Millions of man-hours are lost commutingintrafficpronecitieslike Lagos, and with an efficient mapping system, individuals would be able to commute faster and better utilise their time. SamuelAdeloye,founder/CEO

of Road Prepper, who wouldn’t disclose the financial value of his partnership with Google, citing confidentiality, told BusinessDay that data from ‘Lara,’ a platform he created and already used by over 300,000 users, had now been integratedintoGoogleMapstoprovide the localised transport and routes information. Lagos, Abuja, Ibadan, Kaduna, Accra, and Nairobi are cities that have currently been mapped by the platform, with all of these data now integrated into Google Maps. For instance, with these a user can through the App, know what buses to take when going to a place, the bus stops to alight, and the connecting vehicles to take; either for Okada,Danfo,Kekeorotherpublic transportmodesmostlyusedbythe average Nigerian.

JCI Nigeria commits to developing capacity for next generation leaders KELECHI EWUZIE

unior Chamber International (JCI) Nigeria, a non-governmental organisation, says it is committedtopartneryouth-based organisations as well as corporate bodies,includingforeignmissions, to push the limit of youth empowerment and development. Adetola Juyitan, president, JCI Nigeria, says the organisation is ready and determined to assist youths to nurture their innovative skills and talents into rewarding ventures through its numerous programmes. Juyitanmadethisknownwhile giving an account of the stewardship of the JCI Nigeria in the last six months during a media parley

in Lagos. Speaking on this year’s theme tagged ‘Act As One’, Juyitan noted that JCI Nigeria, as an organisation has designed programmes which are tailored towards enhancing capacity of the youth particularly onleadershipandentrepreneurial skills urging the youth to take advantage of the opportunities. Providing background on some of the programmes carried out by the present leadership team, the President stated that the organisation has been involved in recognising the enormous role of the youth who had distinguished themselves in different spheres of human endeavour through innovative ideas and solutions by designing initiative for that purpose.

NDIC urges caution on adoption of crypto-currencies HOPE MOSES-ASHIKE

anaging director/CEO, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has advisedNigerianstoexercisemaximum caution in the adoption of crypto-currenciesastheirpreferred mode of financial transactions. Ibrahim warned that while various forms of digital currencies currently in operation had their positive and negative attributes, those who patronise them risk losing their savings because the medium was largely unregulated andwithoutthebackingorsupport from the traditional central banks in almost all financial jurisdictions. The NDIC boss made the remarks during a courtesy call by the Board and Management of the CorporationonFemiGbajabiamila, speaker, Federal House of Representatives,inhisofficeattheNational AssemblyComplex,inAbuja. Earlier,inheropeningremarks, Ronke Sokefun, chairman, Board of the Corporation, informed the speaker that the NDIC remained a critical player in the Nigerian financial safety net that had contributed immensely to the growth andstabilityofthenation’sfinancial stability in the 30 years of its operations using best practices. She said recently the NDIC becamethefirstpublicsectorinstitution

in Nigeria to be awarded three International Standards Organisation (ISO) certifications simultaneously by the British Standards Institute (BSI) in view of its result oriented system,processesandprocedures. The Board chairman solicited the assistance of the House in the passage of the NDIC Act Amendment Bill currently before the National Assembly. In his response, the Speaker commended NDIC on the visit, describing it as a right step towards fostering harmonious working relationship with agencies intheexecutivearmofgovernment. On the issue of Crypto currency, he noted that as the entire world currently exploited ways of mainstreaming its use into the global financial landscape, NDIC and other safety-net participants in the country must not be left behind in the adoption of appropriate regulatory framework to deal with the prevalence of crypto currencies in the global financial space. Speaker added that only recently, there was a meeting of world leaders in Osaka, Japan, to deliberate on the subject. Responding to a specific request from the Board and Management oftheCorporation,heassuredthat the House, under his leadership will ensure that the most appropriate Committee is assigned to handle the oversight functions of the Corporation. www.businessday.ng

L-R: Iyabo Soji-Okusanya, group head, corporate and investment banking division, Access Bank plc.; Vikrant Bhansali, chief representative-international markets, Dubai International Finance Corporation (DIFC); Chizoma Okoli, executive director, business banking, Access Bank plc.; Roosevelt Ogbonna, group deputy managing director, Access Bank plc, and Adaeze Kingsley-Anyanwu, head, representative office (Nigeria), The Access Bank UK, at the breakfast session of Access Bank plc with DIFC in Lagos, yesterday.

Osinbajo to chart path for national cohesion at LCC 70th anniversary lecture KELECHI EWUZIE

igeria’sVicePresidentYemi Osinbajo will proffer critical steps Nigeria needs to take towards promoting national cohesion at the 70th Anniversary Lecture of Lagos Country Club. Osinbajo will be delivering the anniversarylecturetitled“Promoting national cohesion for progress and prosperity” at the event scheduled forTuesday,July30,2019inLagos. Tajudeen Akande, president, LCC, while speaking at an interactive session on the activities lined up for the anniversary, says the Vice President will be supported byeminentpersonalitiesingovernment, the business community as well as diplomats. Akandesaysitisagreathonour for the Vice President to deliver the lecture, saying apart from being the Vice President, he is eminently qualified as an erudite lawyer and intellectual of high repute. “I am happy that he will be speaking to the entire Nigeria considering that Lagos Country Club is a mini-Nigeria populated by Nigerians of diverse ethnic and religious backgrounds,” he says. “This is the biggest event in the

historyofsocial/sportingclubbing in Nigeria and we are leaving no stone unturned. Several dignitaries in the Diaspora as well as top diplomats will grace the occasion and we have put all necessary arrangements in place to showcase the hospitality of Nigeria and her people,” he says. BabatundeOkunuga,directorgeneral of the 70th Anniversary Committee, explains that the significanceoftheanniversarytheme: “Something for Everyone.” He says LCC being a foremost club in Nigeria with membership strength of over 14,000 people of diverse cultures, ethnicity and demographics,therewastheneed topreachandshowcaseinclusiveness and sense of belonging. “One of the objectives of the clubistopromoteinter-ethnicand interracialunderstandingamongst people and you will find almost every ethnic group in this club, you will find every age-group in this club, and so in trying to build relationships across divides, we need to promote social and sporting activities that appeal to all the groups. And I wish Nigeria can learn from this laudable initiative,” he states.

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Transcorp Hilton Abuja to host largest gathering of African entrepreneurs OBINNA EMELIKE

ranscorp Hilton Abuja is excited to announce that it will be hosting the 2019 edition of the annual Tony Elumelu Foundation Entrepreneurship Forum on its extensive grounds. The hotel will be playing host to over 5000 entrepreneurs and guests drawn from all over the world at the forum, scheduled for July 26 and 27, 2019. Also expected at the forum are heads of state of Senegal, Rwanda and Democratic Republic of Congo, and global business and thought leaders. The forum, which has the distinction of being the largest gathering of African entrepreneurs, will feature insightful discussions about topical issues on entrepreneurship in Africa, among other things. The event will also feature the launch of the iconic UBA Marketplace, an innovation of Africa’s global bank, the United Bank for Africa Plc, to showcase and buy goods and services from entrepreneurs drawn from various African countries. @Businessdayng

The hotel management has put everything in place to ensure that delegates to the forum get an excellent experience while displaying the very best of Hilton quality service delivery and vintage Nigerian hospitality. “Transcorp Hilton Abuja has a cherished history of successful hosting of high profile international events and we are honoured to be hosting the 2019 edition of the annual Tony Elumelu Foundation Entrepreneurship Forum and the UBA Marketplace. We will surely bring this cherished history of service excellence and experience to bear on the forum,” Owen Omogiafo, MD/ CEO, Transcorp Hotels plc, remarked. On preparations for the epoch event, Kevin Brett, general manager, Transcorp Hilton Abuja, said, “We are known for being leaders in delivering customer-focused service to all our guests. I would like to assure all the delegates of enjoying exceptional hospitality experience during their stay with us”.

Friday 26 July 2019

BUSINESS DAY

news Policy framework, reforms key to development of Nigerian sports - experts … set agenda for new sports minister Anthony Nlebem

igerian sports in the last decade have gone through the worst stage and with President Muhammadu Buhari on Tuesday releasing the list of ministerial nominees, sports stakeholders and enthusiasts are sceptical about the choice of the new sports minster. In Europe, Asia and South America sports business is gradually turning the fortunes of these countries around, as it is seen as a major revenue driver, adding significantly to the GDP of these countries. For Nigeria, a country of over 200 million people with about 55 percent youth population, sports hold huge prospects. Sports have been known to be a uniting factor in the country, defying ethnic, regional or political divides. Nigerian sports industry over the years has seen decline from what it used to be in the early 80s and 90s. Analysts say there should be a system in place to drive potential investors into Nigeria sports business. Speaking with Business-

Day, Sola Fijabi, director, Pace Sports and Entertainment, advises President Buhari to choose a competent minister to drive Nigerian sports to greater heights, as he speaks on the agenda Nigerians expect from the new sports minister. “With the ministerial list released, I have not seen who is going to be the sports minister, maybe another set of list. “The person should understand and appreciate the role sports play in uniting Nigeria, and the President appreciates that. That is the strongest potent point,” he says. He adds that the sports ministry should be properly funded and attractive to private investors, noting that reforms, innovation and private sector partnership can only come if there is transparency in the sports ministry. “He should ensure that there is public and private alignment to attract sponsorship and focus should be on grassroots’ sports development, because talents abound. We know what to do, but the will power to do it is a major challenge,” he states. He further gave insight to qualities or attributes expected

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from the new sports. “Innovation, courage and realise that Nigeria is way behind schedule in the world when it comes to sports administration and move very fast to catch up. The world is not waiting for us. He should also exploit opportunities and create conducive environment for sports to thrive. “A lot of times, the sports ministry rely on government for funding to attend local and international competitions and often times these had hindered the performance of Nigerian teams. This challenge has crumbled Nigerian sports for over two decades,” he notes. Over the years, investors have refused investing in sports and these has caused significant decline. Speaking further on this, Fijabi advises the incoming minister to create a policy framework as a guide for investors and should source for funds from corporate bodies and not depend on government for funding. “Somebody must have written a policy paper, the minister should take it up, rework it and pass it to the National Assembly.

29m customers to enjoy cost saving as Access Bank migrates ATMs to CR2 tech solution Jumoke Akiyode-Lawanson

ith the largest customer base in Nigeria after the acquisition of Diamond Bank, and over 3,000 automated teller machines (ATMs) across Nigeria, Access Bank and its over 29 million customers will now enjoy new revenue opportunities, greater control and significant cost savings with the full migration of all its ATMs to CR2 technology solution, which eliminates ATM withdrawal charges. Global Infoswift, partner of CR2, a channel banking software company, reveals that the CR2 banking software now enables Access Bank on BankWorld ATM and Card Switching solution. Following the deployment of th e Ba nkWorl d solution offered by CR2, Access Bank has successfully completed the migration of its over 3,000 ATMs to CR2’s ATM driving and card switching solution. This key project, which will also include the migration of its card man-

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agement system, aims at providing new revenue opportunities, greater control and significant cost savings for the bank, as it fully supports all localisation required for the Nigerian payment systems and services market. It is also fully certified for Verve Card issuing and acquiring. Speaking at a press conference in Lagos, Afolabi Oke, managing director, Global Infoswift said, “Prior to the acquisition, Diamond Bank was also using CR2 solution for all their ATMs. If you recall, Diamond Bank’s card was the only card that you could use on any ATM without being charged the N100 fee, which was reduced to N65. This was only possible with the CR2 banking solution for ATMs.” According to Oke, Access Bank now has the most cost-effective and scalable solution for card switching and ATM driving, as CR2 is one of the only two switch vendors currently running an ATM network for banks in Nigeria. “For the common man, this is basically about re-

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duced cost, which is a positive step that is good for the economy, especially at a time when everyone is trying to cut spending,” Ani Eimiakhena, director, Global Infoswift said. “When you look at the current expenditure of banks in terms of how much they pay per transaction, but once you are on the CR2 platform, you are no longer paying per transaction and that basically helps their bottom line, so the cost of even managing the ATMs is greatly reduced, so that’s an advantage for banks. For the customer, the business intelligent solution where customers are offered their needs based on their profile, and there are so many other advantages on this solution,” Oke said. Global Infoswift Technologies Limited, an indigenous computer consulting outfit, has been at the fore of driving this multichannel software. About 100 banks in total, including Stanbic Bank, Standard Chartered, ABSA , Access Bank and other reputable banking institutions across Africa are using CR2 services.

40 BUSINESS DAY

Friday 26 July 2019

NEWS

Stakeholders reiterate calls for creation of tourism ministry OBINNA EMELIKE

s the National Assembly (senators) begins the screening of nominated ministers following the submission of the ministerial list by President Muhammadu Buhari to the Senate for consideration, the Federation of Tourism Associations of Nigerian (FTAN) and Association of Nigerian Journalists and Writers of Tourism (ANJET) have renewed calls for President Buhari to reinstate the defunct Ministry of Culture and Tourism. Speaking on the development, the two bodies in separate statements disclose that there is no other time but now for Nigeria to have a ministry of culture and tourism at the federal level if the country and the present government ever hope to harness the potentials of the sector, given the abundant opportunities that the creative industry and tourism present at this time. AccordingtoANJET,itwillbea disservice to tourism and culture and a far cry of the commitment of the Federal Government’s quest to diversifying the country’s economy if its continues to ignore the calls for the defunct culture andtourismministrythatwascreated in 1999 by former President Olusegun Obasanjo and later merged with information in 2015 by President Buhari. The body of travel and tourism writers stated that example of countries reaping from the windfall of tourism and culture has shown that the only way out is to have a dedicated ministry at all levels for the creative industry and tourism in order to bring about a coordinated national approach and focus to bear on the sector. It further stated that the experiment with the Information and Culture Ministry in the last

four years did not achieve the desired goal as culture and tourism were treated as second fiddle to information. As a result of the opportunities to develop the sector and upgrade the creative industry were missed and sacrificed on the altar of politics. Thebodyalsostatedthatthere is no other better time than now when insecurity in the land has gottentoanalarminglevelthatthe countryneedsa separateministry for culture and tourism, with the minister in charge focusing on thebestmodeofharnessingcommunication and marketing mix to drive the sector, infuse confidence in the source markets both domestic and international, through theappropriatemessagingmode. Stressing that having a minister of information and culture, who most often sees himself as a government spokesperson, as it played out in the last four years, rather than a sales person and ambassador of tourism for the country and the creative industry, therefore better placed to shift through happenings in the land and present information with the right register and channel to imposeconfidenceinthecountry, will not bode well for the country and the sector. While on its part, FTAN through Saleh Rabo, its president, reiterated its earlier calls, stating that: “The minister’s lack of understanding and concern for the tourism sector in preference for his information and political portfolio is the major reason the Federation of Tourism Associations of Nigeria (FTAN) and other tourism stakeholders, as well as, culture workers are clamouring for a restoration of the Ministry of Tourism and Culture ahead of the new cabinet to be constituted by President Buhari.

Edo takes fight against human trafficking to endemic areas in Edo Central

s part of ongoing push to consolidate the state government’s effort in curbing human trafficking, the Edo State government says it would sustain the campaign to discourage the practice in endemic areas. Inastatement,assistantsecretary, Edo State Taskforce Against Human Trafficking and Irregular Migration, Lilian Garuba, noted that the state government would continue to sustain advocacy and awareness creation to combat the menace of human trafficking and irregular migration. Garuba said the Taskforce would hold its sixth town hall meeting on July 30 in Esan North East Local Government Area, Edo State, adding that the meeting will provide an avenue to interact with the people in the area where the menace of human trafficking is endemic based on data obtained by the taskforce. “The town hall meeting will address the ills of Human Trafficking and Irregular migration in Esan North East Local Government Area, Edo State,” she added. Recall that the Taskforce held similar townhall meeting with different interest groups in Ehor Grammar School, Uhunwode Local Government Area, where the Chairperson of the Taskforce, Prof. Yinka Omorogbe, urged women to assist their daughters

in identifying skills they need to acquire rather than encouraging them to embark on illegal journey overseas. While delivering a lecture at the Department of State Services’ Institute of Security Studies, in Bwari, Abuja, with the theme: “Transhumance and International Migration: Challenges of Good Governance, Peace and Sustainable Development in Sub-Saharan Africa,” Governor Godwin Obaseki said the state government was tackling human trafficking in the state by prioritising and investing in quality education and ensuring good governance to engender peace and development. He noted, “We have opened the flood gates of our three technical colleges in the three senatorial districts; Government Science and Technical College (formerly Benin Technical College), Benin City (Edo South); Government Science and Technical College, Egua-Eholor (Edo Central) and Government Science and Technical College, Igarra (Edo North) to victims of human trafficking and international migration (Returnees) from Edo State, who are interested in the acquisition of technology-based knowledge that will empower them and help build a technology-based Edo of our dream.” www.businessday.ng

L-R: Ike Williams, directorate head, service bank, Heritage Bank; Osepiribo Ben-Willie, directorate head, South South and South East; Jude Monye, executive director of Heritage Bank; Seye Awojobi, registrar of CIBN, and Kafhat Araoye,member, Capacity Building and Certificate (CB&C) committee CIBN, during the accreditation of Heritage Bank’s training school, dubbed “The Refinery” by the Chartered Institute of Bankers of Nigeria.

Nigeria loses out of opportunities in ocean economy AMAKA ANAGOR-EWUZIE

… as China reports $962bn in 2014

frican countries, including Nigeria, are losing out of the multi-billion-dollar annual revenue inherent in harnessing the diverse opportunities in the global ocean economy. This is as countries like China and the United States of America (USA) reported an annual revenue of $962 billion and 10 percent contribution to GDP of China in 2014, with 9 million jobs created in the ocean industry the same year. USA, on the other hand, valued its ocean economy at $258 billion in 2010, contributing 1.8 percent to GDP. Speaking at the 2019 African Day of the Seas and Ocean held in Lagos on Thursday, Dakuku Peterside, director-general, Nigerian Maritime Administration and Safety Agency (NIMASA), said the above mentioned statistics show the opportunities Nigeria can use for economic transformation and development. Peterside, who noted that Nigeria had been witnessing growth in population and urbanisation, said the country must develop interest

in conservation, exploration and exploitation of the country’s marine biodiversity. “Nigeria can achieve accelerated economic growth and development through the regulation, exploitation and protection of her marine biodiversity through comprehensive and articulated approachthatwouldnotimpactonthe environment negatively,” he said. NIMASA is committed to formulatingpoliciesthatareintandem with the development of the nation’s marine biodiversity towards enhancing economic growth in line with Federal Government’s economic diversification agenda, improved livelihoods and job creation, he said. According to Peterside, NIMASAhasconcludedandforwardedsix International Maritime Organisations (IMO) instruments on marine environment management for ratification, and they include the Hong Kong Convention for the Sale and Environmentally Sound Recycling of Ships, 2009, and the International Convention on Standards of Train-

Obaseki, Zakari to lead stakeholders to MMS transport leadership lecture AMAKA ANAGOR-EWUZIE

overnor Godwin Obaseki of Edo State and Sabiu Zakari, permanent secretary, Federal Ministry of Transportation, will lead transport stakeholders to the 2019 MMS Transport Leadership Lecture and awards. Zakari, recently confirmed his availability to grace the event, just like Obaseki is expected to play the role of the chief guest of honour, and Temisan Omatseye, former president of African Shipowners Association (ASA), will chair the event organised by Kings Communications Limited. The event, scheduled for Tuesday, July 30, 2019 at the Golden Gate Restaurant, Ikoyi, Lagos, is themed “Leadership in a Next Level Democracy: Striking a Positive Balance in Transport Sector,” and Mfon Usoro, secretary-general of Abuja MOU on Port State Control, will deliver the lead paper. Transportation is a critical ministry that allows techno-

crats to manage, especially the maritime sector that should be the most significant after oil, Omatseye said. According to Omatseye, the event would provide a good opportunity for transport stakeholders to proffer solutions to the numerous challenges facing the nation’s transport sector. The event would also feature double panel sessions where experts will dissect issues around “Optimising Digitalisation and Connectivity in Transport Sector” to upscale transport sector contribution to the growth of the nation’s gross domestic product (GDP). Ifeoma Iloh, leader of the organising team, says, “The leadership of maritime industry and the transport sector agencies have not paid optimum attention to addressing the core industry issues.” She says the event will witness a robust discourse on the place of digitalisation and connectivity across all modes of transport in the country.

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ing,CertificationandWatchkeeping for Fishing Vessels Personnel, and other instruments. While stating that the agency is undertaking a review of all the marineenvironment management regulations, he said NIMASA had made seriouseffortstowardsensuring the protection of the nation’s waterways. In his remarks, Femi Gbajabiamila,speaker,HouseofRepresentatives,saidtheNationalAssemblywas committed to the nation’s quest for sustainable use and exploration of its seas and oceans to maximise the country’s vast economic potentials. Represented by a member of the House representing Onitsha North-South Federal Constituency, Linda Ikpeazu, Gbajabiamila noted that efficient management and sustainable exploitation of the marine resources would provide a veritable tool for the actualisation of the nation’s Economic and Recovery Growth Plan (ERGP) and give expression to the nation’s sustainable development goals. He assured that the National

Assemblywouldsupporttheeffortof the executive arm of government to see to the effective domestication of relevant international conventions of the IMO on marine environment management through legislative enactments. “The National Assembly would also work with the executive arm in putting in place the necessary legal framework for the blue economy to engender and protect the Nigerian marine environment and development of the ocean economy,” he assured. Melekolo Kyari, group managing director, Nigerian National Petroleum Corporation (NNPC), said the NNPC as a corporation shall always support NIMASA in its efforts to harness the opportunities in the marine environment which ultimatelywouldhelpacceleratethe country’s economic growth. Kyari, who was represented by a general manager, Lamin Ibrahim, said, “We should not expect to harness our maritime biodiversity if we cannot curb insecurity in the country. For the last decade, Africa has been the epicentre of international maritime insecurity.

Heritage Bank’s training institute gets CIBN accreditation as Refinery School HOPE MOSES-ASHIKE

eritage Bank plc’s training school, ‘The Refinery, for new entrant staff has been accredited by the Governing Council of the Chartered Institute of Bankers of Nigeria (CIBN). The Refinery supervised by the bank’s Human Capital Management Group was accredited by CIBN after assessing and evaluating its syllabus, curriculum and structure by panel of technocrats and seasoned bankers set up by the Institute, which according to the chartered institute aligns with the Competency Framework of the Central Bank of Nigeria (CBN) and the professional paper standard of CIBN. President of the Institute, Uche Olowo, commended Heritage Bank for changing the narratives of the banking system via the establishment of a credible training facility, The Refinery, which prepares trainees who are to be employees for a core professional banking experience. He further applauded Herit@Businessdayng

age Bank for setting a high standard of learning facility which its structure and curriculum “is next to that of CBN’s training institute,” whilst stressing that the bank’s training school is the best in Nigerian banking industry and at par with international best standard. Seye Awojobi, the registrar/ CEO of CIBN, who represented Olowo, stated that the Institute would be grateful to Heritage Bank for the values it holds tenaciously for changing the narrative of the system not just supports to the Institute’s activities but in terms of human capital development and the nation’s economy. The MD/CEO of the bank, Ifie Sekibo, has described Heritage Bank as a forward-looking business whose strength lies in the ability to spot and mould talents into great professionals. Sekibo, represented by the executive director, Jude Monye explained that the word “The Refinery” was chosen for the purpose of refining its employees to emerge as gold and harness the required skills to excel in their job functions.

Friday 26 July 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper CLAIRE JONES IN FRANKFURT

ario Draghi has paved the way f o r o n e f i na l package of monetary stimulus to boost the ailing eurozone economy before he departs in October, signalling the European Central Bank will cut rates and embark on a fresh round of asset purchases. The ECB president said on Thursday that officials at the eurozone’s central banks would look into a range of stimulus options — including rate cuts, a commitment to keep policy exceptionally loose for years to come and another quantitative easing package — to counter fears that the bank would undershoot its inflation target of just under 2 per cent. “A considerable mass of inflation expectations are moving towards [a belief that there will be] lower inflation,” said Mr Draghi. “We don’t like it and therefore we are determined to act.” ECB watchers viewed his ratcheting up of the rhetoric on inflation as a clear sign that the governing council would, at its next meeting in September, join a growing chorus of central bankers loosening policy to counter fears of a global slowdown. “It now increasingly looks as if the September meeting will not only bring a single measure but rather a package of several measures,” said Carsten Brzeski, chief economist at ING Germany, a bank.

European Central Bank paves way for fresh stimulus package Draghi hints at new measures to boost ailing eurozone economy

Mario Draghi speaks during a press conference following the meeting of the ECB’s governing council on Thursday © EPA-EFE/Shutterstock

The US Federal Reserve is expected to cut interest rates by a quarter point at its monetary policy vote next week. Mr Draghi said “most people” on the governing council “con-

verged on this” response to the economic slowdown, but admitted the statement did not have unanimous support. In recent weeks some hawks on the council have sounded lukewarm about

the prospect of fresh stimulus. Despite the clear sign of fresh easing, markets’ reaction to the decision was muted. The euro went on a volatile run, bouncing up off two-year

lows to rise 0.2 per cent overall, at $1.1169, as Mr Draghi spoke to reporters. A rally for the region’s government bonds also faded, drawing yields higher as the trading day developed. The yield on benchmark 10-year German Bunds rose by 1.1 basis points, to minus 0.369 per cent. Yields on 10-year Italian debt also increased, up 2.6 basis points to 1.522 per cent. European stocks were unsettled. Frankfurt’s Xetra Dax index fell 0.1 per cent, surrendering earlier gains. The region-wide Stoxx 600 was up 0.1 per cent. Its banks remained higher overall, with the index tracking the sector up 0.7 per cent. Some investors had expected the bank to cut rates as soon as Thursday, citing a raft of bad data on the Germany economy, the eurozone’s largest and until recently its economic powerhouse. Instead, the ECB opted to keep rates on hold, with the main refinancing rate remaining at zero and the deposit rate at minus 0.4 per cent.

Southwest pulls out of Newark EU urges alliance with US to counter due to 737 Max groundings Chinese tech dominance American Airlines also warns of bigger hit as Boeing’s struggles batter industry PETER WELLS IN NEW YORK

outhwest Airlines will cease operations at Newark airport because of fleet shortages it faces following the grounding of the 737 Max 8, in a sign of how Boeing’s struggle to return the flawed aircraft to the skies continues to ripple through the industry. Southwest, which was the largest US customer for the 737 Max 8, said the “extensive delays” in returning the jets to service meant 2019 available seat miles — the industry’s main measure of capacity — would decrease as much as 2 per cent over last year; the airline had previous expected to grow capacity by 5 per cent. Southwest’s announcement comes just a week after Boeing said it was taking a $4.9bn charge to account for the amount it will have to compensate airlines for schedule disruptions and delays in aircraft deliveries. Boeing forced the global grounding of the 737 Max 8 jets following two fatal crashes earlier this year. It also comes as American Airlines said that removing all Max aircraft from its schedule through

to November 2 — two months longer than it had anticipated — had prompted it to forecast a $400m hit to pre-tax income, up from its previous guidance of $350m. Gary Kelly, Southwest’s chief executive, said on Thursday that shutting operations at Newark, the second busiest airport in the New York metropolitan area, was part of “necessary steps to mitigate damages” from the Max groundings, as the airline worked to optimise its aircraft and resources. “We will cease operations at Newark Liberty International Airport and consolidate our New York City presence at New York LaGuardia Airport, effective November 3, 2019,” Mr Kelly said. “The financial results at Newark have been below expectations, despite the efforts of our excellent team at Newark.” Southwest shares opened nearly 3 per cent lower on Wall Street, while American Airlines was down nearly 5 per cent. The challenges in dealing with the consequences of the Max groundings overshadowed an otherwise solid quarterly performance by both Southwest and American. www.businessday.ng

Brussels says case for working together on setting technical standards has ‘never been greater’ JIM BRUNSDEN IN BRUSSELS

he EU has urged the US to join forces in countering Chinese attempts to define the technologies of the future, saying a transatlantic alliance is needed to influence global standards for sectors such as telecoms and the internet of things. As part of a progress report into EU-US co-operation on trade, Brussels said that the “strategic case” for the two economies to work together on setting technical standards “has never been greater” given the competing models being advanced by Beijing. “These new regulatory models are a cause of common concern given the important role played by the [Chinese] state in deploying market-distorting practices to build domestic champions in key strategic sectors,” the commission, the EU’s executive branch, said. The comments reflect EU concerns that Chinese state-backed

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companies and the government in Beijing have sought to extend their influence in bodies such as the International Telecommunication Union and the International Organisation for Standardisation, which set technical criteria for new products and technologies. Both the EU and the US fear that China — having forced foreign companies active on its territory to share their technology for years — is seeking to dominate intellectual property in cutting edge fields such as artificial intelligence and 5G mobile networks. These fears have been stoked by leading Chinese telecoms company Huawei’s dominance of key 5G technology. US president Donald Trump has sought to drum up international opposition to Huawei, restricting US companies’ ability to do business with it before relaxing the curbs. Areas where EU-US co-operation appears promising, according to the report, include robotics, 3D printing, machinery for the oil and gas industry and self-driving @Businessdayng

cars. Vera Jourova, the EU’s justice commissioner, said in April that EU-US co-operation would mean “our voice would be heard around the world . . . But, if we will become rivals and promote conflicting models, none of us will win”. The report reviews the state of EU-US trade ties one year after a deal between Mr Trump and commission president JeanClaude Juncker to improve cooperation. The deal persuaded Mr Trump to temporarily back away from threats to start a trade war with the EU. The centrepiece of that agreement was a plan to strike a zero tariff deal on industrial goods, but talks have failed to get off the ground. In Brussels, there are renewed fears that Mr Trump may lash out at the EU as he gears up for his 2020 re-election campaign. The commission report emphasises the progress the EU has made to fulfil comments to buy more US soyabeans and liquefied natural gas.

Friday 26 July 2019

BUSINESS DAY

NATIONAL NEWS

EU and Canada close to agreeing WTO appeal court alternative Dispute system faces collapse after Trump blocks appointment of judges KIM DARRAH IN LONDON

he EU and Canada are close to agreeing a new trade dispute resolution system to replace the World Trade Organization’s appeal court, which is edging towards collapse. Since its inception in 1995 the appellate body has had the final word on cases brought to the WTO by nations at loggerheads. But over the past two years US president Donald Trump has consistently blocked replacements for retiring judges. With two of the remaining three judges due to end their terms in office in December, the body is just months away from being unable to take on new cases — a minimum of three judges are needed. WTO member states have tabled several proposals that would restore the full roster of judges, but so far they have all been shot down by Mr Trump. World leaders have embarked on a search for alternative processes as a stop-gap measure. Canadian prime minister Justin Trudeau last week said his country and the EU were close to an agreement that would create a parallel system of dispute resolution, modelled on the functioning of the appellate body, “until we find a more permanent solution”. “Given that we are just a few months ahead of the possible demise of the system, we thought we can’t sit idly by and see whether this works or not,” said Sabine Weyand, the EU’s director-general for trade, earlier this week. “We want that stopgap solution to mirror the appellate body functioning, but to be based on a system of arbitration.” But any such proxy system would be voluntary, applying only to countries that agree to participate, and therefore would not include the US. In the meantime the court is still processing appeals, but its diminished roster of judges face a growing pile of delayed cases. Too few judges WTO rules dictate that appeal board judges are appointed for a maximum of two four-year terms. The process requires consensus, meaning every country has the power to block judicial appointments. When it comes to representation on the appellate body, the US has had a notable presence throughout the history of the WTO: there has always been an American judge. This is not the first time that the US has unilaterally acted to block appointments. Barack Obama thwarted the reappointments of US judge Jennifer Hillman in 2011 and South Korean judge Seung Wha Chang in 2016,

raising concerns that the US was undermining the independence of the body by blocking judges that did not support US interests. But he did allow other appointments to take place. The selection process is secretive so it is not known whether other countries have opposed appointments in the past, but no other country has openly blocked them. Undermining the system Theoretically the body could still issue verdicts when it is reduced to just one judge, because WTO rules allow judges to continue working on a case provided it was assigned before the end of their term. But the appellate body would be unable to hear new appeals. Trade experts warn that this could undermine the whole dispute resolution process, because the losing party in a dispute would be able to avoid implementing the decision by simply initiating an appeal, knowing that it would not be heard — leaving it in limbo. Jeffrey J Schott from the Peterson Institute for International Economics said this would hit smaller and poorer countries particularly hard. “They’ll face the real threat of retaliation by a bigger, more powerful economy,” he said. “That is the power base system that the WTO was designed to rebalance.” Overdue decisions Almost all of the 12 cases outstanding at the court have overshot the official three-month deadline for a decision. Last week’s ruling about US tariffs on Chinese goods, which paved the way for possible retaliation from China, took 445 days between China’s notification of appeal and the appellate board’s ruling. “There’s only so much work that can be done by these three individuals,” said Ms Hillman, the former WTO appeal judge. With three judges, the body is able to work on a maximum of two cases at a time, Ms Hillman said. Mounting delays As a result, the three remaining judges are struggling to keep up with casework and face a pileup of delayed cases. According to WTO rules, appeals must take no longer than 90 days and judges must submit an explanation in writing if they cannot keep within this timeframe. Over the past two years, the average ruling took more than a year to complete, far exceeding this official deadline. But dysfunction is not wholly new: even before the current problems the system was under considerable pressure due to the high number and growing complexity of cases. www.businessday.ng

Boris Johnson demands removal of Irish backstop for Brexit deal New PM tells team he is determined to ramp up preparations for a no-deal exit from EU ROBERT WRIGHT AND GEORGE PARKER

oris Johnson used his first House of Commons statement as prime minister on Thursday to demand the complete removal of the socalled Irish backstop as the key objective in future Brexit negotiations with the EU. Surrounded by members of the new, far more pro-Brexit cabinet formed in a brutal reshuffle on Wednesday, Mr Johnson insisted he would accept no version of the Northern Irish backstop, which would tie the UK to Europe’s customs arrangements until a longterm trade deal could be agreed. The EU has insisted the backstop is vital to avoiding a hard border on the island of Ireland. Mr Johnson told the Commons that the current terms of the withdrawal agreement — negotiated by Theresa May, his predecessor, and rejected three times by parliament — were “unacceptable”. The new prime minister’s hard line appears to increase the risk that the UK and EU will be unable to reach agreement on the terms of the UK’s withdrawal in time for

October 31, the scheduled date for the country’s departure. There had been speculation that the two sides might be able to find a compromise, in which a time limit would be imposed on the backstop. “No country that values its independence and indeed its self-respect could agree to a treaty which signed away our economic independence and self-government as this backstop does,” Mr Johnson told the Commons. “A time limit is not enough. If an agreement is to be reached, it must be clearly understood that the way to the deal goes by way of the abolition of the backstop.” Mr Johnson appeared in the Commons shortly after his first cabinet meeting, at which he told his new team that preparations for a no-deal exit would be ramped up. Wednesday’s ruthless cull of Mrs May’s team meant there were many new faces around the cabinet table, including Dominic Raab and Priti Patel, two prominent Eurosceptics who have been appointed foreign secretary and home secretary respectively. Michael Gove, who moves to the cabinet office to oversee no-

deal planning, and Andrea Leadsom, business secretary, were among the other senior Brexiters to take top jobs. Sajid Javid, a rare former Remainer in one of the top roles, became chancellor. Mr Johnson told the Commons that he and Stephen Barclay, who has kept his job as Brexit secretary, would throw themselves into renegotiations “with the greatest energy and determination and in the spirit of friendship”. “I hope that the EU will be equally ready and that they will rethink their current refusal to make any changes to the withdrawal agreement,” he added. However, he accepted that, if the EU maintained its current stance, the UK would have to leave the EU without an agreement, and with “as little disruption as possible to our national life”. Mr Johnson’s tough line underlined the sharpness of the political shift in the government following Mrs May’s departure. Nick Boles, a former Tory minister who now sits as an independent MP, told the BBC’s Today programme that the Conservative party had now been “fully taken over top to bottom by the hard right”.

Critics dismiss Facebook’s hand-wringing over regulation Zuckerberg warns of delays to new products but shares tick up HANNAH MURPHY IN SAN FRANCISCO, TIM BRADSHAW IN LONDON AND KIRAN STACEY IN WASHINGTON

ark Zuckerberg was in full hand-wringing mode as he unveiled Facebook’s secondquarter earnings. Speaking hours after getting hit with a $5bn fine from the Federal Trade Commission (FTC) for leaking data to Cambridge Analytica, Mr Zuckerberg said Facebook was making “major changes [ . . .] to how we run this company”.

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The changes demanded by regulators were so onerous, he added, that Facebook will now have to invest “a significant amount of our engineering resources” on building tools to make sure the social network remains compliant. As well as the fine, Facebook will have to set up an independent committee to scrutinise its privacy practices and Mr Zuckerberg will have to personally sign off each quarter that the company is not in breach of its commitments. Already Facebook has nominated Michel Protti, a former McKinsey @Businessdayng

and Yahoo executive who has been with Facebook for nearly six years, to chief privacy officer, subject to approval from the new privacy board. Mr Zuckerberg warned that putting resources into building the new tools means that Facebook will take “longer to ship new products”. Some analysts, while buoyed by Facebook’s bumper quarterly results, fretted over the warning, especially after research and development costs rose 29 per cent year-on-year to $6.2bn in the first half, while monthly user numbers remained flat in the US and Europe.

Friday 26 July 2019

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Why markets are fixated on Mario Draghi’s next frontier

Bonds rally on hopes of further stimulus from European Central Bank president ROBERT SMITH

xpectations will be higher than usual when Mario Draghi sits in front of the microphone later today, for one of his final press conferences as European Central Bank president. Mr Draghi caught markets by surprise last month when he indicated that the bank could launch a fresh round of stimulus if the inflation outlook failed to improve. It was only six months ago, after all, that the ECB started to wind down its €2.6tn bond-buying programme, known as “quantitative easing.” But if the ECB does want to fire up QE again, however, it faces a problem: it is running out of bonds it can feasibly buy. And so speculation has turned to what new frontiers the central bank may explore. While some wondered if the ECB will start buying bonds issued by European banks, few think the central bank will cross this Rubicon due to the conflicts involved. Even the safest bank bonds can potentially take losses if the institution fails — and the ECB itself is directly involved in deciding when that point of failure has been reached. BlackRock’s chief investment officer of global fixed-income, Rick Rieder, advanced a more unorthodox suggestion this week: that

Mr Draghi’s successor Christine Lagarde should take things one stage further and start buying the shares of European companies, mimicking the Bank of Japan, in an effort to improve private-sector growth prospects. Other senior figures within the asset-management industry have made similar arguments, prompting observations that companies such as BlackRock — the world’s biggest provider of exchange-traded funds — are hardly impartial. Some disagree, too, with the idea that this new policy tool would reap benefits for European workers, countering that it would simply fuel a new bubble. “Isn’t it about time for the ECB to start buying tulips?”, said one FT reader in response to Mr Rieder’s column, evoking the speculative mania of the Dutch Golden Age. The ECB’s last major unconventional policy move — buying the bonds of companies rather than just governments — certainly seemed to do more for asset prices than the underlying economy. The main legacy of this corporate bond buying is arguably the creation of record demand for European leveraged loans — riskier lending to heavily indebted companies, that has sparked concern among policymakers.

Hedge fund Caxton moves headquarters from New York to London Shift to UK reflects hiring increase amid benefits of weaker sterling LAURENCE FLETCHER IN LONDON

axton Associates, one of the world’s oldest and best known hedge funds, has told investors that its headquarters is now in London rather than New York, in a symbolic boost to the UK’s financial services industry as Brexit looms. Founded by legendary US billionaire investor Bruce Kovner in 1983, Caxton, which manages $3.7bn in assets, has historically been based in New York while maintaining a large programmingandback-officeoperationin Princeton, New Jersey. That remained the case when Mr Kovner retired as chief executive in 2011, succeeded by London-based Andrew Law. The largely symbolic shift to the UK, which has not previously been reported, reflects a recent burst of hiring in Caxton’s London office, a process accelerated by a weak pound in the wake of the Brexit vote in 2016. Its office in Berkeley Square in London’s Mayfair is set to reach about 85 people by the end of this year, a doubling over the past 18 months, according to a person familiar with the staffing structure. Its New York

office now houses just a fraction of that number of people. “Investors do now generally consider us to be London-headquartered,” the firm said in a letter to investors on Thursday, which has been seen by the Financial Times. The macro-focused firm — making bets on moves in global bonds, currencies and stock markets — has been recruiting operations, technology and finance staff in London to be close to the bulk of its fixed income and other trading teams, it added. The office in Princeton is set to close. Hedge funds with a London base have received a boost over the past few years by the depreciation in sterling, which has fallen to $1.24 from close to $1.50 before the UK referendum on EU membership. The fact that funds manage money and earn fees in dollars has allowed them to recruit staff and rent offices in London more cheaply. Caxton’s shift will be viewed as a fillip to the UK’s financial services industry, which has been overshadowed by uncertainty over Britain’s exit from the bloc. Last year, New York overtook London as the world’s top financial centre, according to research group Z/Yen. www.businessday.ng

Fund managers turn their focus to millennials New funds aim to mimic millennial spending habits, while targeting them as clients RICHARD HENDERSON IN NEW YORK

h e n Ja y Ja c o b s pitched the idea of an exchange traded fund focused on companies targeting millennials, older colleagues in the room groaned and rolled their eyes. But Mr Jacobs, the 29-year-old head of research and strategy for Global X, a New York-based ETF specialist with $10.9bn under management, persisted. He argued that this much-maligned cohort — with their tattoos, coldbrew coffee and avocado toast — represented a compelling investment theme and, ultimately, he won his Gen X colleagues around. “People like to laugh about millennials but the data are irrefutable,” said Mr Jacobs. “The old clichés about living with their parents and not being serious about their careers are wrong.” Other fund management groups are catching on, betting that the economic heft of the 2bn-strong generation that grew up with the internet, in the past

two decades of the 20th century, will come to define the fortunes of industries around the world. Asset managers are now crafting strategies to back companies that can capture millennials’ preferences — at a time of unrelenting pressure on their own top lines. Investment products that target millennials naturally include technology stocks but also focus on builders that specialise in starter homes and apparel companies. The largest stock holding in a Millennial ETF launched three years ago by Principal Global Investors, for example, is Adidas, the German company that has benefited from a partnership with Yeezy, the clothing and sneaker line of rapper Kanye West. Such moves by giant companies could be smart. In the US, millennials will account for three-quarters of workers by 2030. Higher incomes will push the group’s spending 17 per cent higher within five years while Baby Boomers (born between 1946 and 1964) will spend 10 per

cent less, according to Goldman Sachs. “Demographics matter,” said Paul Kim, head of ETF strategy at PGI in New York. “The buying power of millennials as the largest demographic group in the US means they will have a tremendous impact on . . . the global economy.” Chief executives are taking note. Mentions of the term “millennial” on US corporate earnings calls jumped from a dozen in 2008 to 612 last year, according to FactSquared data compiled for the Financial Times. Brian Moynihan, Bank of America’s chief executive, claimed last week that the bank’s 16m millennial customers between the ages of 25 and 41, who represent about $200bn in deposits and investments, were attracted by the company’s “digital capabilities”. BlackRock’s chief Larry Fink, meanwhile, noted on his secondquarter earnings call that “millennials are much more adept at using technology and we need to be at the forefront of helping them”.

Turkish central bank slashes interest rates Main lending rate reduced by 4.25 percentage points as new governor takes control LAURA PITEL IN ANKARA

urkey’s central bank slashed its benchmark interest rate on Thursday, marking a shift in direction after the sacking of the former governor by President Recep Tayyip Erdogan. The bank’s monetary policy committee reduced the one-week repo rate from 24 per cent to 19.75, slicing 4.25 percentage points off the cost of funding. Analysts’ expectations had ranged widely prior to the meeting, but the overnight forward implied yield on the lira had suggested that

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investors were pricing in a rate cut of about 2.50 percentage points, according to Bloomberg. The lira strengthened slightly following the announcement, trading up about 0.3pc against the dollar. In a statement announcing its decision, the bank cited Turkey’s improving inflation outlook as the reason for the cut. It said its forecasts suggested that year-end inflation would be better than the 14.6 per cent predicted by the bank in its inflation report published earlier this year. It said that it was committed to “maintaining a sustained disinflation process”, adding: “The central bank will continue to use all avail@Businessdayng

able instruments in pursuit of the price stability and financial stability objectives.” Thursday’s decision was seen as a key test of Murat Uysal, the new central bank governor, who assumed the role earlier this month after Mr Erdogan sacked his predecessor following a row over the pace and depth of rate cuts. The Turkish president, who is a vocal opponent of high interest rates, said that former governor Murat Cetinkaya “wouldn’t follow instructions”. Mr Erdogan has said that he wants both inflation and interest rates to fall to single digits by the end of this year.

Friday 26 July 2019

BUSINESS DAY

ANALYSIS

BlackRock HR chief to leave after he ‘failed to adhere’ to policy

Larry Fink tells employees that they must ‘uphold the highest standards of conduct’ RICHARD HENDERSON IN NEW YORK

lackRock’s head of human resources has left the fund manager after he “failed to adhere to company policy”, the company announced on Wednesday. The $6.8tn fund giant announced the sudden departure of Jeff Smith, head of human resources, in a strongly worded memo to employees seen by the Financial Times. The details of the behaviour that led to the exit are unclear but will have no financial impact on the company or its clients, according to people with knowledge of the matter. BlackRock declined to comment. “We expect every employee of BlackRock, especially our most senior leaders, to uphold the highest standards of conduct,” Larry Fink, chief executive, and Rob Kapito, president, said in the memo. Mr Smith joined BlackRock through its 2009 acquisition of Barclays Global Investors that included the iShares exchange traded fund business. He previously worked for Time Warner. Mr Smith could not be immediately reached for comment. He was a member of BlackRock’s

global executive committee and global operating committee. Mr Smith attained a PhD in industrial-organisational psychology from Virginia Polytechnic Institute in 1997 and has a degree in psychology from the University of Connecticut. During his time at Time Warner, he was vice-president of people development. BlackRock has appointed Rob Fairbairn, its vice-chairman, as interim head of human resources while it searches for a permanent replacement. “Rob has led some of the firm’s largest businesses — including our then-combined retail and iShares business, our global client business, and our international business,” Mr Fink and Mr Kapito said in the memo. “Rob will work with the HR team to ensure a smooth transition of responsibilities.” BlackRock is the world’s largest fund manager and has grown dramatically since buying BGI. The fund manager has benefited from the surge in investor appetite for exchange traded funds, the low cost portfolios, that have helped propel the group’s overall assets to nearly $7tn today from $1.3tn prior to the BGI deal.

National conservatism is coming for Washington Enthusiasm for an assertive state is the movement’s main departure from its Reagan-era predecessor CONSTANZE STELZENMÜLLER

group of American thinkers, politicians and media personalities met in a dimly lit basement ballroom of the Ritz-Carlton hotel in Washington last week to reinvent conservatism. Or, as the conference logo specified, National Conservatism. For a startup, the conference — organised by the new Edmund Burke Foundation — attracted an impressive number of guests and speakers. The roster featured big conservative names, including the billionaire investor Peter Thiel, Fox network host Tucker Carlson, and the Trump administration’s national security adviser, John Bolton. With the 2020 presidential election already under way, a broad field of Democratic candidates, and an eviscerated Republican party, anyone interested in the future of American politics should pay close attention to this attempt at “reverse engineering an intellectual doctrine to match [Donald] Trump’s basic instincts” as Jacob Heilbrunn, editor of The National Interest, a conservative magazine, put it. Although the US president had brought them together, some of the speakers were clearly steering wide of Trumpism. They seemed motivated less by chest-thumping nationalism than a desire to subject the titans of Silicon Valley to antitrust regulation, or concerns about the social ravages created by laissez-faire economic libertarianism.

Mr Thiel (founder of online payments company PayPal and the data-mining company Palantir) inveighed against Google and accused it of being penetrated by Chinese intelligence. JD Vance, author of Hillbilly Elegy, the best-selling 2016 memoir about growing up in the US Rust Belt, made a thoughtful appeal for a nation-state that can protect its citizens and provide them with public goods including health and education services. This enthusiasm for an assertive state is the movement’s most distinctive departure from the smallgovernment conservatism of the Reagan era — and something with which Europeans could find much to agree. The conference hosts, Israeli rightwing academic Yoram Hazony and American conservative activist David Brog, were likewise at pains to emphasise they had barred entry to white supremacists. But, on a national level, that door has been blown off the hinges by Mr Trump’s embrace of the politics of cultural grievance. The reverberations of that breach were felt throughout the two-day event — whose attendees and speakers were overwhelmingly white. A law professor urged an immigration policy that gave preference to white over non-white immigrants. Josh Hawley, the junior senator from Missouri, was called out by the Anti-Defamation League for a speech in which he used hoary anti-Semitic dogwhistles such as “cosmopolitan elites”. www.businessday.ng

Hungary’s Viktor Orban and the rewriting of history The premier’s critics accuse him of trying to play up his role in the overthrow of communism VALERIE HOPKINS IN BUDAPEST

n a bright morning in early June, Janos Rainer was taking his daughter’s pet parrot to the vet when he received a call that could change, if not Hungary’s modern history, then how it is written and taught. “Have you heard the news?” his colleague asked as the parrot chirped noisily in the back. “The Institute is over.” Until that moment, Mr Rainer had been unaware of government plans to fold the 1956 Institute, the historical research centre he directed and which is dedicated to the Hungarian uprising against the Soviet Union, into a body close to the government of Viktor Orban, Hungary’s conservative premier. Without consulting Mr Rainer, Mr Orban signed a government decree to incorporate the 1956 Institute into the Veritas Historical Research Institute and Archive, created by the government five years ago and which critics say promotes a version of history that favours Mr Orban’s agenda. The Veritas institute is administered by the government, which has a big role in both appointing its leadership and setting its research priorities. The change in control at the 1956 Institute follows a decision late last year to relocate a statue of Imre Nagy, who was the premier during the shortlived revolution of 1956. Nagy, who was executed and buried in a mass grave for his decision to withdraw from the Warsaw Pact, is considered one of the most significant figures in modern Hungarian history. His reburial in 1989 in Budapest was a milestone in the collapse of communism in Hungary and the eastern bloc. The 1956 Institute was founded the following day. Critics say the decisions are part of a wider trend of controlling researchers, stifling academic freedom and limiting public dissent. They say they are also part

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of the creation of a narrative that portrays Hungary as a victim in the 20th century of the Nazis and the Soviets, but which is now standing up for itself under the leadership of an authentic patriot. The move of the statue “symbolises and demonstrates [Mr Orban’s] intent to create, recreate, construct and reconstruct his own story,” says Mr Rainer. The Hungarian government denies it is trying to shape the way that history is written. In a blog post, government spokesman Zoltan Kovacs characterised the 1956 Institute’s absorption by Veritas as “a minor administrative change to make research more efficient by integrating related fields into the same structure”. With just 10 employees, the institute had been part of the national library. All of the historians resigned before the handover, except one, who said he would “test” the new structure. After three weeks with Veritas, he also quit. A Veritas spokesman says that it would have let the academics research “with full and unchanged independence” and denied the claim that their function was to produce a version of history hewing to a government narrative. The spokesman says that there is a need to revisit the version of history that was told during the communist regime, adding that the historians at Veritas strive to “provide nuance on data and perspectives that have been false for decades . . . History is by no means a fossilised finished process.” The controversy over the 1956 Institute is in line with a vision Mr Orban spelt out last summer. Speaking at a summer festival in Transylvania, organised by his party and its local partners, Mr Orban said his victory in elections that year which brought him a fourth term as premier had given his administration “nothing short of a mandate to build a new era”. “An era is a special and characteristic cultural reality . . . a spiritual @Businessdayng

order, a kind of prevailing mood, perhaps even taste — a form of attitude . . . determined by cultural trends, collective beliefs and social customs,” he said. “This is now the task we are faced with: we must embed the political system in a cultural era.” Mr Orban has kept his word. Since the speech, the government has effectively forced the Central European University, founded by billionaire Hungarian-American philanthropist George Soros in 1991, to relocate the bulk of its activities to Vienna, the Austrian capital. (It can still issue Hungarian degrees, but many of its local and international students are attracted by the US degrees.) The government stopped accrediting courses in gender studies, which was only taught at one university outside of CEU. In November, ownership of almost 500 media outlets, mainly run by government-friendly businessmen, passed to a new nonprofit media foundation run by a publisher loyal to Mr Orban. Then in July, the government increased its control over the country’s premier research body, the Hungarian Academy of Sciences — a decision that was taken despite opposition from its administrators and employees, including some of its 3,000 researchers. A joint group of top academics from Poland, Austria and Germany condemned the change in control, saying it “infringes upon the internationally applied and accepted principles of academic freedom and the self-governance of scientific institutions”. The government insists the change is intended to improve the efficiency of the research. “Every government moves in the direction of saying, ‘we’re paying you a lot of money, what do we get for this?’” says Gyorgy Schopflin, an outgoing MEP from Mr Orban’s Fidesz party. “They try to maintain or establish better control over research . . . a certain amount of research can be guided in that way, some can’t.”

Friday 26 July 2019

BUSINESS DAY

POLITICS & POLICY APC aspirants faults Buhari over ministerial list Nathaniel Gbaoron, Jalingo

he forum of aspirants of the All Progressives Congress (APC) has expressed disappointment over the non-inclusion of her members on the ministerial list released by President Muhammadu Buhari on Tuesday, contrary to an earlier agreement reached with the President in confidence. Ben Adaji, who addressed a press briefing in Jalingo on behalf of the national body of the forum, said that it has become imperative for the forum to draw the attention of the President to the plight of the key stakeholders of the forum, who had aspired for various national positions on the platform of the party. Adaji said that most members of the forum who were aggrieved after the

primaries held prior to the general election had opted to leave the party but were persuaded by the President

to stay back with the promise that he would take them into consideration in his appointments.

Timipre Silva (r), ministerial nominee, from Bayelsa State, after his screening at the Senate Chambers in National Assembly, Abuja. NAN

BMO lauds Senate over timely screening of minister - nominees …Warns Afenifere over alleged inciting statement Iniobong Iwok

he Buhari Media Organisation (BMO) has lauded the Senate over the immediate commencement of screening of ministerial nominees. BMO stated that the harmonious relationship between the President and the National Assembly is crucial in order to deepen democracy and foster national development. In a statement signed by its Chairman, Niyi Akinsiju and Secretary, Cassidy Madueke, Thursday, BMO noted that the tremendous support being enjoyed by the Senate President, Ahmed Lawan from his colleagues is a testimony to his strong leadership quality, and his willingness to carry everyone along, irrespective of party affiliations. According to the statement, “The 9th Assembly has so far demonstrated to the entire nation what selfless service and unity of purpose can achieve, in sharp contrast with the 8th Assembly which thrived on hostage-taking of budgets and bills, as well as foot-dragging in confirmation of appointments. This is how to grow Nigeria. “The 9th Assembly led by Ahmed Lawan is a clear departure from the Bukola Saraki-led 8th Senate that was nothing short of a disaster when we look at the desired relationship between the

Adaji, who aspired for House of Representatives in Ankpa, from Kogi State and doubles as the spokesper-

Executive and National Assembly needed for national development. “The Saraki-led Senate turned governance into a personal vendetta mission. Saraki’s personal ambition to become President of Nigeria blinded his obligation to Nigeria, thus he sought every opportunity to pose himself a clog in the wheels of governance. Saraki dragged Nigeria back at every opportunity he had”. The group further noted that the immediate commencement of the screening of the ministerial nominees was a testament that Lawan was one hundred percent APC in character and principle. “Now we can boast that indeed the APC is leading the National Assembly not a stooge who has one leg in and one leg out; now we would be certain that critical bills and screening of President’s nominees would be treated with respect and immediacy.” BMO urged other government institutions to borrow a leaf from this character of the new National Assembly while working hand-in-hand with President Buhari to take Nigeria to the ‘Next Level’. Meanwhile, the group has cautioned the Yoruba Sociocultural group, Afenifere, to work with the Federal Government and security agencies to contain insecurity in the country, rather than issuing statements that are capable of escalating the situation or www.businessday.ng

inciting people to violence. The group gave the advice in reaction to a statement by Afenifere warning those it described as killer herdsmen to leave the South-Western part of the country or risk reprisal attacks. The group expressed utmost disappointment with the utterances of Afenifere and other groups on the security situation in the country, stressing that such comment was capable of instigating chaos and violence. The group noted that the Buhari administration had in a bid to improve the security of lives and property in the country commenced the recruitment of 10,000 policemen, sending serving police officers for training at home and abroad. According to the group, “First of all, as we have said before, it is wrong to ascribe criminality to a particular tribe or group of persons, as this is capable of exacerbating the situation. We want to remind Afenifere and others that criminality is not restricted to any group and security challenges are also prevalent in the most advanced countries of the world. “We are of the firm belief that under the circumstances we find ourselves that all well-meaning Nigerians, especially leaders of thought, ought to lend a helping hand to enable the Federal Government tackle the security problems holistically.

son of the Kogi State chapter of the forum, noted that the members are concerned that not even one member of the forum was included in the present batch of appointments so far made by the President and urged him to correct it in his subsequent appointments. “Gentlemen of the press, it has become imperative for me to address you today to register the disappointment of the APC national aspirants forum over the appointments made by President Muhammadu Buhari to far, especially the ministerial list. “This forum comprises all the persons who aspired under the platform of the APC in the 2015 and 2019 elections. You recall that a lot of irregularities occasioned the 2018 primaries of the party. Most of us who felt shortchanged by the process had opted to leave the party but the President

persuaded us to stay back and work for the success of the party, with the assurance that we would be taken into consideration during his appointment. “It is therefore, very disappointing that the ministerial list is out and none of our members is on the list. We consider this an oversight and call on the President to consider our members who have worked so faithfully and have contributed enormously towards the success of this party, in his subsequent appointments. He noted that the aspirants forum is the live wire of the party, comprising the members who are constantly in touch with the people and a failure to carry them along may spell doom for the party in the forthcoming general elections in some states such as Kogi and others and may threaten the very sustenance of the party beyond 2023.”

YPN to field candidates in Kogi, Bayelsa governorship polls JOSHUA BASSEY

outh Party of Nigeria (YPN) would be fielding candidates in the Kogi and Bayelsa States governorship elections slated for November 16, 2019. A statement signed by Helen Attah, deputy national publicity secretary of YPN, made available to the media, also announced dates for the conduct of its primaries to pick candidates for the gubernatorial elections. According to the statement, in line with the Electoral Act 2010 (as amended) and the Independent National Electoral Commission (INEC) guidelines, the National Executive Council (NEC) of the party has decided to issue guidelines for the conduct of its primaries. “In compliance with the

Electoral Act and INEC guidelines, the timetable and schedule of activities for the conduct of the 2019 governorship primary elections in Kogi and Bayelsa are as follows: “Sale of forms will commend from July 15 to August 12, 2019. Screening will start from August 14 to August 25, 2019 while appeals will commence from August 26 to 31. The governorship primaries will take place on September 2, while appeals arising from primaries will be heard on September 3, 2019.” Candidates for the elections, the YPN said, would be expected to pick up nomination forms at the national secretariat from July 15 to August 10, 2019. The party also disclosed that while the expression of interest form will cost aspirants N100,000, the nomination form will be available for N1 million.

It assured that the primary would be conducted on the basis of One Member One Vote (OMOV) and there would be “no delegates or super delegates” while voting will be affordable and convenient for all eligible members of the party. The party stated its commitment to expanding the democratic space by providing a level playing ground for all aspirants on its platform. “We encourage anyone who aspires to contest in free and fair primaries to join the party. Likwise, persons interested in voting for a candidate of their choice in a party primaries without fear or favour, are encouraged to join the party. The party preaches transparent political leadership and followership that frowns at money politics, bribery, violence, ‘short termism’ repression, and corruption,” it said.

Ministerial list: Taraba is comfortable with the choice of Mamman - APC Nathaniel Gbaoron, Jalingo

araba State leadership of the All Progressives Congress (APC) has said the party was comfortable with the choice of Mamman Sale as minister-nominee from the state by President Muhammadu Buhari. Ibrahim El-sudi, the state party chairman, disclosed this Thursday while in a telephone interview with BusinessDay correspondent. According to him, the

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state party leadership was satisfied with the choice of Sale, owing to his steadfastness and resilience in the APC. He noted that his nomination as minister of the Federal Republic of Nigeria will further strengthen the APC in the state to do better in its subsequent outings. He appealed to persons who seek for the position to however, remain party faithful and close ranks with Mamman for the overall interest of APC, Taraba State and the nation at large. @Businessdayng

“My brother am very happy that Sale is nominated as a minister of the Federal Republic of Nigeria; in fact, the APC family is happy with the choice,” he said. “He has been with Buhari since he started contesting the presidential elections and today he is favoured; it is a thing of joy to the APC family of Taraba State. The man has proven he is a committed party man and a loyal APC and President Buhari’s supporter, the whole state is happy,” he further said.

Friday 26 July 2019

BUSINESS DAY

ECONOMIC MONITOR

A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU)

briu@businessday.ng

08098710024

Utilising Purchasing Manager Index (PMI) for economic decision-making ISAAC ESOWE

he recent Purchasing Manager Index ( P M I ) re p o r t re leased by the Central Bank of Nigeria (CBN) for the month of June showed the direction of economic trend in the manufacturing and service sectors. The index summarized the market condition as viewed by the purchasing managers. The composite PMI for the manufacturing sector is computed as the weighted average of five indices, namely: production level, level of new orders, suppliers’ delivery time, employment level and raw materials inventory/work in progress, with assigned weights of 25 per cent, 30 per cent, 15 per cent, 10 per cent and 20 per cent, respectively. The purpose of the PMI is to provide information about the current and future business conditions to company decision makers, analyst and investors. Regardless of the challenging economic environment, the index indicates a consistent growth in the manufacturing sector for good twenty-seventh month. PMI for manufacturing sector for the month under review stood at 57.4 index points, this figure suggest

facturing sector is observable as the current composite output PMIs still signal a positive growth in the coming quarters due to business sentiment which has remained relatively positive. Amid the 14 subsectors being surveyed by the Statistics Department of the Central Bank of Nigeria(CBN), only 12 subsectors reported growth in the reviewed period, and these

plastics and rubber products while the non-metallic mineral products and primary metal subsectors recorded declines in the review period. A look into the production level index for the manufacturing sector, the index indicates a growth for twenty-eighth consecutive month. As at June 2019, production level stood at 59.3 index points compared with previous month of 59.1

sectors include transportation equipment; petroleum and coal products; cement ; chemical and pharmaceutical products; electrical equipment ; food, beverage and tobacco products; printing and related support activities; fabricated metal products; paper products; furniture & related products; textile, apparel, leather and footwear; and

point. A composite PMI above 50 points indicates expansion and below 50 points suggests it is contracting. Based on the figure, the index indicates a faster growth in the current month when compared with its level in the month of May 2019. Amongst the 14 subsectors under review, primary metal remained unchanged while

Source: CBN, BRIU

an expansion even though it slightly decreased from 57.8 index points compared to the previous month. Going by the trend in composite PMI, the manufacturing sector recorded an all high of 61.1 index points in the month of December 2018 on a yearon-year basis since 2014. The growth trajectory in the manu-

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non-metallic mineral products declined other recorded an increase in production. New orders index The new order index is a critical decision making tools for managers in a variety of roles. It facilitates the decision-making process based on the new orders expected from customers in the future. This index could also drive the amount of production the manufacturer needs to produce to meet demand. On a positive note, the new order index grew for twenty-seventh consecutive months. In June 2019, new order grew but slightly by 1 per cent from 58.6 per cent in May to 59.2 per cent in June. Eight subsectors recorded growth: electrical equipment remained unchanged while subsectors like furniture and related products; printing & related support activities; textile, apparel, leather & footwear and two other subsectors contracted in the month under review. The third diffusion index is the Supplier Delivery Time Index (SDTI) which index gives supplier the needed information about how supply and demand can affect the prices of goods and services, and also helps to make future estimate for the demand for a particular product. SDTI showed a good prospect for good twenty-five consecutive months, and as at June 2019, the index stood at 58.7 points indicating a faster SDTI although only 11 of the 14 subsectors under review recorded an improved SDTI while electrical equipment remained unchanged; chemical and pharmaceutical products and paper products declined respectively. Employment index Albeit, the employment level @Businessdayng

index showed a positive growth trend cross the 14 subsectors for twenty-sixth consecutive months which at the end of June accounted for 57.5 points. This still does not translate to the rise in the country’s unemployment status which increased to 23.1 per cent in the third quarter of 2018 from 22.7 per cent in the second quarter of 2018. Raw material inventories The report further showed a growth in the manufacturing sector inventories index for twenty-seventh consecutive months. This accounted for 55.0 points, and the index grew but in a slower rate compared with the previous month of May 2019. Additionally, 10 subsectors out of the 14 under review recorded a positive improvement while 2 remained unchanged and 2 other sectors recorded a decline in raw material inventories in the month under review. Non-manufacturing sector Composite PMI computation for non-manufacturing sector considered four diffusion indices which include – business activity, level of new orders, employment level and raw materials inventory with equal weights of 25 per cent each. In June 2019, non-manufacturing sector accounted for 58.6 points; the index grew at a slower rate when compared with 58.9 points in May 2019. Also, out of the 17 subsectors under review, 16 recorded a growth and these sectors include – water supply, sewage and waste management; arts, entertainment and recreation; repair, maintenance/washing of motor vehicles; electricity, gas, steam and air conditioning supply; utilities; information & communication; transportation and warehousing; real estate rental and leasing; construction; health care and social assistance; finance and insurance; wholesale/retail trade; accommodation & food services; agriculture; educational services; and professional, scientific, and technical services. The management of companies subsector recorded decline in the review period. In summary, production level, supplier delivery time and employment level in the manufacturing sector grew at a faster rate, while new orders and raw materials grew at a slower rate in June 2019. Similarly, nonmanufacturing sector diffusion indices only new orders grew at a faster rate, while business activity, inventories and employment level grew at a slower rate in June 2019.

Friday 26 July 2019

BUSINESS DAY

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Women in Business

BUSINESS DAY Friday 26 July 2019 www.businessday.ng

By Kemi Ajumobi

Jennifer Obayuwana

Adaku Ufere-Awoonor

Executive Director, Polo

CEO, DAX Consult

lassy, intelligent, amiable and deliberate about purpose, are few words that best describes Jennifer. She is a firm believer that to lead, one must serve. Jennifer Obayuwana has served in different positions at her family’s company, Polo Luxury Group, Nigeria’s leading luxury goods company and has risen to become its Executive Director. She likes to call herself ‘The Underboss’ because she is under the tutelage of her father, the Founder of Polo Limited. Their brand portfolio includes high-end Swiss watchmaking and jewellery brands including Rolex, Cartier, Breguet, Omega, Chopard, Roger Dubuis, Messika Longines, Montblanc, Piaget, Arnold and Son, ArtyA, Frederique Constant and so on. “My father was the first to bring luxury to Nigeria 30 years ago. He had an amazing store on the mainland where he would sell Fendi watches and Patek Philippe. Watches are still our biggest and most valuable company asset,” She revealed. In the fashion space, they house brands like Gucci, Valentino, Alexandre McQueen, Jimmy Choo, Tory Burch to mention a few. Obayuwana graduated from The American University of Paris with a Bachelor’s degree in International Business, and obtained a Bachelor of Science in International Relations from Franklin University in Switzerland. She has also taken several management courses at INSEAD, Columbia Business School, Lagos Business School and the Gemological Institute of America. In her position as the Executive Director of Polo, Jennifer has played a significant role in the proliferation of international luxury brands in Nigeria. Under her direction, Polo has grown, sealing its place as Nigeria’s only official retailer of the world’s most prestigious watches, writing instruments and high-end accessories through offering a diverse portfolio of the world’s most prestigious luxury brands. As the daughter of a pioneer in the luxury industry, it was inevitable that Obayuwana’s unwavering passion for luxury

and beauty would lead her into the family business. Her experience in building and maintaining luxury brand prestige also led to the creation of Polo’s new subsidiary, Polo Avenue, a multi-brand luxury specialty retailer that focuses on fashion, leather goods, footwear and fragrances, with strategic partners including: Gucci, Valentino, Alexander McQueen, Bottega Veneta, Dolce & Gabbana, Balenciaga, Jimmy Choo, Salvatore Ferragamo, Marco De Vincenzo, Giuseppe Zanotti and more. Despite all of her business achievements, Jennifer is also passionately charitable. Using the Polo Foundation as a vehicle, she is involved in several initiatives and charitable organisations focused on the empowerment of women and socio-economic issues affecting women in Nigeria. With the numerous choices in brands available in the fashion space, Africa is way up there in terms of preference for sophistication because Africans know what they want and how to get it. This Jennifer attests to when she says “The average African shopper is highly intelligent and as such, we are committed to taking them through a deluxe involvement available to interested customers who can easily view our posh items wherever they are from their phones of devices. They are just a click away.” According to her, “We’re seeing this emergence of upper-middle class Nigerians who spend $1,000 to $2,000 per visit on shoes and handbags. These are the clients that come back every month. Then there are also the high-net-worth individuals who may spend up to tens of thousands of dollars,” Jennifer said. For Obayuwana, integrity means everything. She begins each day telling herself she has the opportunity to write a new story daily and that remaining humble is key, knowing that the past is truly a mirror for the future. She sees her father as both her boss and her best friend. She readily describes him as a motivating visionary and pacesetter that pioneered the luxury goods industry in Nigeria.

daku Ufere-Awoonor is an international Energy professional with over a decades’ global experience of legal and business advisory in the oil & gas, power, mining and extractive industries, leading multicultural and multilingual teams across Africa and with a strong professional network. She is the CEO of DAX Consult, a consulting firm with offices in Nigeria, Ghana and Liberia, which provides legal and business advisory services to local and foreign companies. Adaku has extensive experience advising ministries, governments, IOCs and NOCs globally. Her expertise includes PSC/PSA negotiations, negotiating farmins with major IOCs, legal framework and contract assessments, facilitating legal and fiscal frameworks for major billion-dollar energy projects in Africa, creating and assisting in the implementation of contract management systems for government regulators and cross-border negotiations between sovereign governments. Adaku has an LL.B from the University of Nigeria, a BL from the Nigerian Law School, an LLM in Oil and Gas from the University of Aberdeen, and a Certification in Public Management from the University of California, Davis. She is a member of the Nigerian Bar Association, the International Bar Association, the Association of International Petroleum Negotiators, the Women in African Power, the Institute for Energy Security and the Young Women in Energy Association. She is also a certified Chartered Arbitrator and a Member of the Chartered Institute of Arbitrators. Adaku is a respected international conference speaker and panellist, having spoken at conferences in Equatorial Guinea, South Sudan, South Africa, the United States of America, United Kingdom, the Republic of Congo, Uganda, Ghana and Nigeria; and a prolific writer, with published articles in the field of energy and project finance. She is a recipient of numerous honours which include the 40 Under 40 Leading

Lawyers in Nigeria in 2016, Attorney of the Year at the African Legal Awards in 2017, Young African Professional of the Year by the Independent Pan-African Youth Parliament in 2018, a Fellow of the Institute of Energy Security, Ghana and a Mandela Washington Fellow 2018. She is passionate about and lends her time to causes promoting girls’ education, gender equality, women empowerment, the advancement of women in leadership positions and the elimination of genderbased violence. Around 2010, Nigeria got a new Minister for Petroleum Resources and it was a woman. It was the first woman to ever be Minister of Petroleum, and it blew Adaku’s mind. Following that, she quit her job and went and got a Masters in Oil and Gas Law at the University of Aberdeen, and that’s basically how her Oil and Gas journey started. After that, she started to get more interested in energy access. She read an article in Medium, by two ladies who work with Power Africa, called ‘Exploring the Relationship Between Energy and GenderBased Violence’. She had never connected the two before. According to her, “Women bear the greatest burden of energy poverty. If there’s no electricity or water in the home, it’s the woman that goes out to fetch the firewood, the woman that goes out to fetch water over long distances. There’s actually a phrase for it: ‘time poverty’ – and women suffer huge time poverty, because they’re the homemakers, they run businesses, and they also have to do all this demanding domestic work that the men don’t have to do.” She said. For Adaku, the future of energy in Africa is smart grids – the system of many grids is the future. “We can’t just have one huge monolith of the national grid. It doesn’t work; it hasn’t worked. So smart grids, renewable energy, biogas will work. I don’t know why a lot of African countries are not taking advantage of biogas, because we have mounds of refuse everywhere that can be turned into methane and people are not just taking advantage of that” She said.

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