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Nigeria awaits tsunami of jobless as coronavirus hits businesses MICHAEL ANI

Babajide Sanwo-Olu (m), Lagos State governor, briefing Government House correspondents after the State Security Council meeting at Lagos House, Marina, on Tuesday. With him (L-R): Abdulfatai Sanusi, director, Department of Security Service (DSS); Etsu Ndagi, Brigade commander, 9 Brigade, Ikeja Army Cantonment; Gbenga Omotoso, commissioner for information and strategy; Hakeem Odumosu, commissioner of police, Lagos Command; Akin Abayomi, commissioner for health; Ibrahim Aliyu, commander, Nigeria Navy Ship (NNS) Beecroft, Apapa, and Moyosore Onigbanjo, attorney general/commissioner for justice, Lagos State.

Coronavirus: How political leaders’ recklessness endangers Nigerians ISAAC ANYAOGU, ANTHONIA OBOKOH & SEGUN ADAMS

s the chief of staff to President Muhammadu Buhari, Abba Kyari is the chief priest of the inner sanctum of the presidency, a buffer against every undesirable

influence. Now he is its greatest threat. Kyari recently visited three countries that are currently dealing with a significant COVID-19 emergency. He went to Germany on March 10, 2020, in

the company of Saleh Mamman, minister of power, and James Momoh, executive chairman, Nigerian Electricity Regulatory Commission, for discussions with Siemens on improving the country’s power supply. They returned to Nigeria on March 14, passing through the United

Kingdom and Egypt. Upon his return, Kyari did not follow guidelines by the Nigerian Centre for Diseases Control (NCDC) to self-isolate for 14 days, thus endangering everyone that came in contact with him, including Continues on page 38

ith economic activities in the country almost grinding to a halt due to the coronavirus pandemic, Nigeria could see a host of its population becoming jobless, worsening it already heightened unemployment figure. The odds of Africa’s biggest economy slipping into a recession are increasingly becoming likely as companies suffer declining revenue due to the deadly global coronavirus outbreak which the Nigerian Centre for Disease Control (NCDC) said has so far infected 46 persons in the country with one death recorded. In order to control the increasing number of cases of the outbreak, companies operating in the country have enacted a partial closure of some of their operations, forcing staff to work from home. Non-food markets in Lagos and Abuja will come under lock and key today as both the federal and state governments sweep into action to keep the virus at bay. Continues on page 38

Inside

Manufacturing PMI at 35-month low signals lingering woe for growthchallenged Nigeria P. 2

Thursday 26 March 2020

BUSINESS DAY

news Manufacturing PMI at 35-month low signals lingering woe for growth-challenged Nigeria GBEMI FAMINU, DAVID IBIDAPO & SEGUN ADAMS

fter recording its fastest quarterly growth since the 2016 recession, the coronavirus outbreak could see Nigeria’s economy slow or contract in the first quarter of 2020, as manufacturers have become less optimistic amid supply shortage and slowing demand. Nigeria’s manufacturing Purchasing Managers’ Index (PMI), a gauge for manufacturing sentiments, slowed in March 2020 to its lowest in almost three years, according to data by the Central Bank of Nigeria (CBN). In March, PMI stood at 51.1 index points when compared to 58.3 points in February. Although a 51.1 index point indicates an expansion in the manufacturing sector for the 36th consecutive month, it

also depicts a disruption in economic activities brought about by the outbreak of COVID-19. Also, non-manufacturing PMI fell to 49.2 points in March from 58.6 points in February, the lowest since March 2017. The index is based upon manufacturers’ responses to set questions on core variables in their businesses. A PMI above 50 points indicates that the manufacturing/ non-manufacturing economy is generally expanding, 50 points indicates no change, and below 50 points indicates that it is generally contracting. Responses on seven out of 14 sub-indices (transportation equipment; petroleum & coal products; furniture & related products; food, beverage & tobacco products; cement; fabricated metal products and plastics & rubber products) showed growth in those sec-

tors above CBN’s 50 points minimum threshold. However, electrical equipment; primary metal; nonmetallic mineral products; paper products; textile, apparel, leather and footwear; printing & related support activities and chemical & pharmaceutical products subsectors all recorded declines in the review month, CBN said. The production level index and new orders slowed down while supplier delivery, time employment levels and raw material inventories recorded their first contraction in more than 20 months. “The virus has affected global supply chains as countries across the globe have implemented a total lockdown and restricted cross border movement of people as well as goods and services,” a statement by CSL Stockbrokers on the PMI report said. “This has resulted in the

shutdown of factories as manufacturers can no longer import raw materials required for production even as demand from customers remains constrained by the ‘stay at home’ policy amidst loss of jobs,” CSL Stockbrokers said. Over the years, the PMI data has given insight to GDP growth expectations with a strong positive relationship. As a result, given the decline in the PMI statistics in March, as well as the screeching halt of economic activities, BusinessDay projects a slow GDP growth in Q1 2020. A possible decline was further affirmed by the apex bank on Tues§day during its 2nd Monetary Policy Committee meeting where it warned that muted outlook outbreak for the first half of the year following the coronavirus may dampen overall growth prospects for 2020, if the virus is not contained.

How social distancing, uncertainties in economy affect property market CHUKA UROKO

s people become increasingly apprehensive of the deadly impact of coronavirus, with social distancing being observed as a preventive measure, the property market and real estate investors are taking the heat, BusinessDay findings reveal. Though the impact of the rampaging virus is not yet seen or felt in house prices or rents, it is already impacting negatively on market transactions as reflected in inspections which neither buyer nor seller is ready to undertake at the moment. Effectively, viewing which precedes buying and selling a property has stopped completely because the buyer avoids close contact with the seller or agent and vice versa. “Prices and rents are not affected yet; but the way we are going, if this continues till the next one month, prices will drop significantly,” Gbenga Olaniyan, CEO, Estate Links, told BusinessDay on phone. Chidi Etoniru, managing partner of Joe Etoniru and Associates, a real estate development company, corroborated this. “We had a client who wanted to buy a property, and we already finalised everything, but due to the virus outbreak and currency uncertainty, he said he would want to wait for the next 90 days to watch the market,” Etoniru said. The fear and apprehension which this deadly virus has created in people is all-

pervading and has led to uncertainty in the economy. People have issues bordering on job security, health status and life itself. “With many workplaces closing down operations, the stock market crashing and economic activities grounding to a halt with attendant loss of income, real estate sales will take a hit over the coming weeks and months,” said Jolayemi Ekundayo, a real estate consultant and marketer. Ekundayo explained that there might be declining interest from home buyers, noting that the property market has been weak for some time, and rents have fallen considerably in major cities such as Abuja, Lagos and Port Harcourt. A Broll Intel Property Market Viewpoint for the second half of 2019 had predicted the market would be stabilising by now but the deadly virus is threatening it. Before now, industry experts had projected that the market would grow at 2.65 percent in 2020 with a high expectation that the sub-markets were also going to stabilise. In the face of the growing apprehension and uncertainty, analysts say except the government takes necessary steps to strengthen the economy, the pandemic will push the economy into another recession. This explains the expectation by industry players that government should announce fiscal stimulus package to reduce the negative impact of the virus on the real estate sector in particular and the economy as a whole.

Concern trails FG’s decision to move medical donations to Abuja

Governance nears lockdown as coronavirus apprehension spreads in Aso Rock ... Buhari, Osinbajo continue in self-isolation ... First Lady moves out of official residence ... Presidential Intensive Care Unit activated By Our Reporter

overnance in Nigeria may be heading for a complete lockdown as apprehension grows among officials of the PresidentMuhammaduBuhari government over their status to the ravaging coronavirus. The apprehension has reached fever-pitch after Abba Kyari, Buhari’s chief of staff, tested positive to the coronavirus. Many who had contact with Kyari, including key Aso Rock officials, have either gone into self-isolation or gone for the tests with the

results expected any moment. Many heads of ministries, departments and agencies (MDAs) have also gone into self-isolation after hearing of those who tested positive to the virus whom they may have been in contact with. President Buhari has been completely isolated despite reports that he tested negative to the coronavirus, according to information from the presidency, while Vice President Yemi Osinbajo, who also tested negative, has continued his self-isolation. Governors who had contact with Bala Mohammed, Bauchi State governor, are also www.businessday.ng

self-isolating. As such, government activities at the nation’s capital have been skeletal with staff shutting down offices. Many government offices are now a mere shadow of their former selves. The regular church service at the Villa Chapel located a stone throw from the first lady’s wing has been halted following Vice President Osinbajo’s decision to remain in self-isolation. The Buhari family has moved out of the official residence, presidency sources told BusinessDay. The sources said the first lady, Aisha Buhari, and her children left

their official residence on Tuesday and moved into one of the guest houses located within the Villa after it was announced that Kyari tested positive for the virus. The president’s domestic staff have been scaled down drasticallywithonlyfourallowed into the residence. Movements in and out of the residence have beenstopped,exceptforthefour cooks in the official residence, our source said. BusinessDay also gathered that the first lady was very disappointed that Kyari did not go into self-isolation on his return from Germany and Egypt on March 14.

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… despite higher COVID-19 cases in Lagos IFEOMA OKEKE

oncerns have been raised over the decision of the Federal Government to transport medical supplies donated by Jack Ma Foundation from Lagos airport to Abuja considering the fact that Lagos has recorded more cases of COVID-19 than Abuja. The Nigeria Centre of Disease Control (NCDC) has so far recorded 30 cases of COVID-19 in Lagos while Abuja has recorded eight cases. On Tuesday, an Ethiopian Airlines Freighter delivered the medical supplies from the Jack Ma Foundation and on Wednesday, the Nigerian Air Force airlifted the Jack Ma supplies to Abuja. An aviation consultant who craved anonymity said he didn’t understand the reasons why medical supplies for Nigeria would be taken to Abuja. @Businessdayng

He, therefore, called on the authorities to explain how the supplies would be distributed for transparency sake. BusinessDay’s checks show that on March 22, 2020, an Ethiopian Airlines cargo flight loaded with a large batch of medical supplies donated to Africa from the Jack Ma Foundation and Alibaba Foundation departed from Guangzhou, China and landed in Addis Ababa, Ethiopia. The flight carried 5.4 million face masks, kits for 1.08 million detection tests, 40,000 sets of protective clothing and 60,000 sets of protective face shields. The supplies will be transported on and distributed throughout the rest of the continent. The remaining shipments of medical supplies are expected to reach Addis Ababa and be distributed to more African nations over the next few weeks.

Thursday 26 March 2020

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Thursday 26 March 2020

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Thursday 26 March 2020

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Research&INSIGHT

In association with briu@businessday.ng

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

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Appraising Nigeria’s conglomerates sector ISAAC ESOWE

company is regarded as a conglomerate if it has a combination of multiple business entities operating in entirely different industries under one corporate group. Having a wide range of companies in different sectors can be a real benefit for the bottom line such that the underperforming companies or industries can be compensated for by those performing in other sectors. In the last few years, conglomerates operating in Nigeria have experienced a number of challenges which still remain till today. These challenges are having significant impact on their financials. Some of these problems include the business environment, infrastructure and development in the international market. BusinessDay Research and Intelligence Unit (BRIU) analysed the listed conglomerates in Nigeria to have a feel of how they have weathered the economic conditions in recent times. The sector is so important in terms of job creation, diversity and poverty alleviation. For the five quoted conglomerates – Chellarams Plc, John Holt Plc, SCOA Nigeria Plc, Transnational Corporation of Nigeria Plc(TCN) and the United Africa Company of Nigeria (UACN Plc), their interest cuts across a wide array of the economy from manufacturing to automobile, real estate, hotel, general trade and

Source: Companies’ Audited and Unaudited Financial Statements for 2018 and 2019, BRIU

merchandise, power, agriculture and services, among other sectors The latest audited and interim financial reports of the conglomerates which detailed and highlighted their performances for the periods ended 2018 and 2019 showed that the companies recorded a combined revenue of N177.2 billion in 2019, a value that is 9 per cent less than the preceding year’s revenue of N194.6 billion. UACN contributed the most revenue to the tune of 47 per cent and TCN contributed 43 per cent. Then, Chellarams Plc accounted for 6 per cent, SCOAN Nigeria and John Holt 2 per cent and 1 per cent respectively. On individual basis, the full year unaudited financial statement of

Source: Companies’ Audited and Unaudited Financial Statements for 2018 and 2019, BRIU

UACN for the year ended December 31, 2019, showed an upward trend in its revenue growth as revenue increased by 10 per cent to N83.9 billion in 2019. Gross profit rose from N14.9 billion in 2018 to N17.4 billion in 2019, and this represented an increase of 8 per cent. Similarly, Profit Before Tax (PBT) increased from N7.7 billion in 2018 to approximately N8.1 billion in 2019. Growth in PBT was essentially driven by a substantial increase in revenue from the sale of animal feeds, which was up by 14 per cent YoY, and package food for the referenced period increase by 10 per cent YoY and this was also supported by the revenue from the sale of the company’s investment property to a tune of N631 million as against N15 million in 2018. However, UACN recorded a loss arising from discontinued operations which translated to a decrease of 4 per cent when compared with the preceding year value of N9.5 billion. Notwithstanding, the company’s gross profit margin, a metric used to assess a company’s financial health and business model by revealing the amount of money left over from sales after deducting the cost of goods sold, stood at 21 per cent although slightly below the industry average of 31 per cent. The current ratio, which measures a company’s ability to pay short-term obligations or those falls due within one-year stood at

1.73x, while debt to-asset for the period ended stood at 8.54 per cent, and this indicated that the company’s assets were funded by 8.54 per cent of its debt. Return on Equity (ROE), which measures how effectively management is using a company’s assets to create profits for the said period stood at 10 per cent in 2019 while ROA, a metric that shows how profitable a company’s assets are in generating revenue, grew slightly by 3 percentage points from 8 per cent in 2018 to 11 per cent in 2019. John Holt Plc’s revenue for the considered period contracted by 33 per cent from N2.7 billion in 2018 to N1.8 billion in 2019. This was largely driven by a decline in sales and leasing of a technical product. Gross profit decreased by 13 per cent to N451 million in 2019 from N521 million in 2018, while gross profit margin stood at 25 per cent in 2019 from 19 per cent in 2018 owing to a rise in the cost of sales to turnover. John Holt recorded an operating loss of N31 million in 2018 compared to an operating profit of N298 million. Similarly, the conglomerate recorded a loss before tax of about N86 million in 2018 and this, however, improved in 2019 accounting year to N236 million, about 174 per cent growth rate. Profit after tax followed a similar trend as it increased by 169 per cent from a loss of N81 million in

Source: NBS, BRIU

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2018. Return on equity (ROE) of 8 per cent and a return on assets (ROA) of 4 per cent represented an improvement on the negative returns of the previous year. Current ratio of 1.6x showed the company could still meet up its short-term obligations. TCN on the other hand, followed a comparable trend, as the company recorded a decline in its revenue of 27 per cent from N104.2 billion in 2018 to N76.3 billion in 2018. The company’s gross profit followed a downward trend representing a 27 per cent decreased when likened with N48.2 billion recorded in 2018. The gross profit margin for the reference periods in 2018 and 2019 have been on a similar scale representing 47 per cent each. The net income margin, which is the percentage of revenue that is left after all expenses have been deducted slumped from 20 per cent in 2018 to 5 per cent in 2019 which is lower than the industry average of 15 per cent. ROA declined by 12 percentage points from 14 per cent in 2018 to 2 per cent in 2019. Also, ROE followed a similar pattern as it decreased from 21 per cent in 2018 to 3 per cent in 2019. SCOA Nigeria Plc recorded an increase in revenue portfolio for the period ended 31st December 2019 to a tune of 58 per cent from approximately N2.5 billion in 2018 to N3.9 billion. However, gross profit declined by 34 per cent to N550 million from N834 million in the corresponding year. Gross profit margin also declined to 14 per cent in 2019 from 34 percent in the corresponding year. ROA and ROE for the reference period were up from -1 percent and -3 percent in 2018 to 2 per cent and 9 per cent in 2019 respectively. Gross earnings of Chellarams Plc grew by 29 per cent from N8.7 billion to N11.2 billion in 2019. Gross profit for the considered period declined by 71 per cent from N1.8 billion in 2018 to N527.3 million in 2019. Chellarams Plc recorded a loss after tax for 2019 to a tune of N2.7 billion while net profit margin for the period for the considered period stood -25% and ROA was -44%.

Thursday 26 March 2020

BUSINESS DAY

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COVID-19: The come has come to become!... Abulado & a President missing in action!

ik MUO

s at Monday, 16/3/20, everything was normal on the Nigerian front. Oga CORO, a celebrity pandemic was causing unimaginable devastation everywhere else, attacking and humbling leaders of Government, big names in entertainment and sports and causing confusion among BIG countries. Surely, the Book said it long ago, that “those of high structure will hewn down and the haughty will be humbled” (Isaiah,10:33). People and governments who were hitherto so sure of their capabilities were throwing up their hands in despair. But all was calm in Nigeria. People were marrying, giving birth and dying, and we were all working on our individual and corporate plans. There were only two issues of public discourse then: the mysterious and devastating Abulado explosion and the predictable and predicted dethronement (second time around) of the saintly and loquacious Sanusi. ASUU was on strike and I had all the time and peace of mind to go and deliver a paper at the 2020 Laity Week programme at Ijebuode on 16/3/20. I came back from the lecture and continued with my normal routines: reading, writing, listening to Channels TV and all that. “Coro” was something happening far away but here, life was normal, with the only exception being the daily briefing by the stressed but articulate and knowledgeable Minister of Health and by the Presidential Task Force on Coro (by the way, the PTF-Coro is chaired by a lawyer and political civil servant! Where are the experts?). But the BOOK has warned that it is when everything appears normal that calamity strikes (1 Thess,5:3). Then, SUDDENLY, just SUDDENLY, everything changed and everywhere became charged! The government, a top official of which declared that Coro was caused by corruption, and, which had been acting in an “I don’t give a damn” manner jumped up on 17/3/20 as one rudely woken from a deep

slumber with a bucket of cold water or somebody stung in the holy of holies by a vicious ant. Indeed, they behaved like the people of Nineveh did after Jonah had told them: soon, ‘Nineveh would be destroyed’ Since then orders, policies and instructions have been flying around both at the centre and in the peripheries. The entire political, policy, socioeconomic and media landscape became both coviduous and coronalised and since them, nothing has ever been the same. The hitherto abnormal has become normal as according to Buno & Kerber (2009), continuous change became the new normal. We are getting used to the inevitability and instability and Nigeria has become, like organisations in the turbulent environment, a work in progress (Burnes, 2009), with everything being tinkered with continuously. Unfortunately, given chaotic, per second and uncoordinated manner in which these orders are flying around we appear to have acted and continue to act in a panic mood. The government kept changing instructions in an amoebic fashion but this is the step rep by the weekend (22/3/20): all schools primary, secondary and then tertiary closed; NYSC orientation camps closed, visa on rival suspended, entries from 13 countries and then 15 disallowed (we had declared that there was no need to do so a few hours earlier), 3 international airports and then all of them closed, rail transport suspended, social and religious gatherings were limited to 50, 20 and then suspended all together; the budget received a haircut of N1.5trn (from capital, recurrent or debt servicing provisions?); oil-price benchmark reduced to $30 and the Naira devalued, (sorry adjusted, to N380/$). The Senate closed its public gallery and before then, earnestly begged PMB to address the nation. Foreign trips were suspended for all public officials but I am sure that nobody will order them to refrain from foreign medical check-ups and holidays; they have all suddenly become patriotic because under this COVIDIOUS environment, home is the best. LASG has ordered 70 percent of its workforce to stay at home but overreached itself when it asked danfo drivers to limit themselves to only 60 percent of their capacity (6 instead of 10 passengers per trip). Other developments followed. My dear OOU has sent all the staff on

compulsory 2-week leave, in the first instance. Anambra State Government banned weddings, funerals, ofala festivals “upped the ante” by placing Lagosians in the same category with returnees from Italy or Spain so that should the son of man travel to IgboUkwu now, I should self-quarantine! I never knew the state has such an awesome capacity. The federal government sent all its staff home and suspended the FEC weekly contract dispensing assembly was and continues to be, an era of unprecedented uncertainty and unpredictability. Even during the war, the government did not issue this avalanche of directives, directives that were changing every second, within so short a period. Like the typical Igbo man, we did not run until the rain has thoroughly beaten us or we ran run when the pursuer is just one meter away. It was when I attended morning mass on Saturday, 21/3/20 that it dawned on me that we were in real trouble. We were all “sanitised” at the gate and the sitting arrangement was very queer, with people sitting almost “a kilometre” apart. Even for the reception of the holy communion, people were “forced” to give serious gaps. It was then that I asked, “how can I maintain social distance from my wife when we slept in the same bed, drove in the same car and held our hands as we were moving into the church”? Even the offertory was cancelled because cash had high covidiousity! Some extant policies were triggered off: Sunday would start on Saturday evening; there would be general confession/absolution and then, those above 65, below 18 pregnant and nursing mothers were granted sabbatical from Mass. Of course, all activities were suspended. 6 masses were had that Saturday evening and 12 were scheduled for Sunday. However, before we went to bed, all masses were cancelled because the threshold was reduced to 20; people were advised to receive communion spiritually and to send any offerings online. There was confusion, anxiety and palpable fear and people were running helter-skelter, buying both the things they needed and the ones they did not need. On Sunday, 22/3/20, there was no Masses in the Catholic Archdiocese of Lagos and for the first time in my 3 score+ years on earth, I was indoors from morning to night, except for the

‘

The hitherto abnormal has become normal as according to Buno & Kerber (2009), continuous change became the new normal. We are getting used to the inevitability and instability and Nigeria has become, like organisations in the turbulent environment, a work in progress

Note: The rest of this article continues in the online edition of Business Day @ https://businessday.ng Dr Muo is of the Department of Business Administration, OOU, Ago-Iwoye

LASUTH prepared for biosecurity threats and other pandemics

n the world today, no nation is spared from the threats and the likelihood of occurrence of public health emergencies and its negative consequences. Lagos state is a small sized state in Nigeria, yet has over 5 percent of the national population estimate. The Lagos State University Teaching Hospital (LASUTH) in becoming a world class quaternary center has continued to develop its emergency preparedness and response to cater for the ever-expanding population of Lagos State which is approximately 25 million. LASUTH has a high skilled work force and state-of-the-art equipment. LASUTH is a referral centre for primary and secondary centres including private hospitals. Preparedness is a continuous cycle of planning, organising, training, equipping, communicating, exercise evaluation and improvement activities to ensure effective coordination and enhancement of capabilities to prevent, protect against, responds to,

recover from and mitigate the effect of an emergency incident. LASUTH already has a Disease and Infection Prevention and Control Committee in place for more than 8 years and has been training workers on both Standard and Transmission based precautions. A Crisis Management Committee was also set up five (5) weeks ago and a triage protocol in screening, isolation and notification of highly infectious diseases, which are not limited to Lassa fever, Ebola fever and COVID-19 was developed and is being strictly adhered to. Our minimum acceptable level is standard precaution. Our medical personnel have already been trained to take all precautionary measures to prevent, protect against, respond to, and mitigate the effect of an emergency incident. Sensitization and further training were organised two weeks ago at a special grand round edition, where the State Epidemiologist, the Infection Control team, Family Physician and Community health Specialist were

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present to educate and inform adequately. As part of the hospital’s preparedness, Personal Protective Equipment (PPE) had been procured four (4) weeks ago and deployed on the 27th and 28th of January to all entry points. PPE is used only based on risk assessment and when seeing patients after which they are appropriately disposed into color-coded bins. They are not to be worn as part of dressing when not attending to patients. Automatic hand-sanitizer dispensers have been installed at all the service entry points and all efforts are in place to ensure there is constant running water for proper hand hygiene hospital wide. Our holding area is not a quarantine facility nor an isolation ward. It is a holding area for patients that fits the algorithm for case definition of infection of high consequences pending confirmation by laboratory investigation. All patients who are presented at the emergencies are screened using the Triage Protocol; temperature measurement, travel history etc. and those who fit into the

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3km walk I had in the morning. And as I did so, I observed that all the Catholic churches along my route were on lockdown and the roads were free! Yet it was under this environment that COZA services held while Evangelist Copeland (somebody called him scamevengelist) told his followers to keep on tithing even if they lost their jobs in the pandemic, because God was/is their source. And Nigerians, even in their alarm and panic, still had the peace of mind to see the thing ‘jokiously’. They designed a special suspended quarantine centre, noticed houses that was more crowded than a church , noticed the unusual kind of social distancing at Onitsha Main Market and saw those doing hand-washing business in Igboland while one Edo boy released a song: “Coro, we no want you here.” As I write this, the super powers have become powerless and the world economy is on a roller-coaster. My compatriots who would rather rush out to Dubai to buy golden soya and Milan for platinum ice-cream are all at home because it is almost a death sentence visit overseas. Trump was rattled; the Strong Lady of Europe, Merkel is on Quarantine; Senator Paul has fallen and Damniel Goldman is a victim; the Canadian first Family has been infiltrated, AbaKyari has caught it, Bauchi State Governor is on “self-iso” while Atiku’s son is down. Nowhere is safe; nobody is safe and the life we knew a few days ago is receding into our memories. It is sad indeed. As our people would say during Biafran War of Independence, “Awusa abatago Awka” (the federal forces have come into Awka); “agwo no n’akilika” (the snake is on the thatched roof) and indeed, the come has come to become and there is FIRE in the mountain. But our president is non-pulsed and the motion by his Senate, begging him to address “we the people” did not move him. He who had time for the Egungun festival, (where he was forcefully embraced by “one of his admirers”) and to intervene in the self-inflicted fires in APC, does not feel it is necessary to address us because doing so, according to Shehu Garba, it is mere showmanship and drama.

Abolade Adewale case definition are kept in the holding bay to protect the general population of staff and patients in the emergencies. While in the holding area, necessary medical and support care is given while awaiting the result of laboratory investigation for the infectious diseases; this process is within 24 hours. Patients with positive results for infections of high consequence are transferred to Mainland Hospital or into the general pool of patients if negative. It is pertinent to note the holding area is currently being upgraded. LASUTH has always been playing a prominent role in containing highly infectious diseases in Lagos. We are prepared in collaboration with Lagos State Government, in line with global best practice and precaution to screen, isolate and treat suspected patients as well as protect the people of Lagos State. Adewale is public affairs specialist. He can be reached via abolz2001@yahoo.com

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Thursday 26 March 2020

BUSINESS DAY

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In stemming the spread of Covid-19, must we sacrifice the poor? ‘ Clearly, a CHRISTOPHER AKOR

hen the Coronavirus first emerged in the Wuhan region of Hubei province in December 2019, the Nigerian authorities could be forgiven for not knowing exactly how to respond. Perhaps, the banning of all travels to and from China would have stemmed the spread of the virus. But it wasn’t only Nigeria that dithered; the entire world was hesitant, maybe because of China’s preeminent position in global trade and commerce. Then it began to spread across the world. Rational voices urged the Nigerian government to ban travel to and from affected countries, especially China and Europe, but the Nigerian government would not budge. The reason is simple. Nigeria’s elite and middleclass are inextricably linked to Europe and the Western world, where their survival depends. A good example is Nigeria’s president, Muhammadu Buhari who depends on hospitals in London for managing his fragile health. His wife frequents the UK also for medicals and holidays and all his children went to school in the UK. The Nigerian government therefore continued to dither even when other countries were imposing travel bans and restrictions to stem the spread of the virus. The virus eventually entered Nigeria through an Italian, who was successfully identified and isolated. Most of his contacts (179 in number) were also found and monitored. In the end, only one of his contacts tested positive after two weeks and both of them were well

on the way to full recovery. While the government and the Nigerian Centre for Disease Control (NCDC) did a good job in quickly identifying, isolating and monitoring the contacts of the index case, it was very clear to everyone that Nigeria neither has the resources nor medical infrastructure to cope with a deluge of cases. Nigeria was already notorious for its decrepit medical infrastructure that ensures that virtually all its elite and higher middle class outsource all of their medical needs to hospitals and doctors in Europe, America and Asia. Nigeria clearly needed to stop new cases from arriving and spreading the virus. However, the Nigerian government continued to indulge its elite and middle class and refused to order travel and flight restrictions to stem the spread of the virus. Predictably, the virus was imported into Nigeria by its peripatetic elite and middle class fleeing the pandemic in Europe and the US – countries also being overwhelmed by the virus. As the reality begins to dawn and cases in Nigeria and Sub-Saharan Africa - that many thought had been spared from pandemic – begins to rise, Nigeria’s terrified elite and middle class are now calling and insisting on a complete lockdown of the country, like China and Italy, to check the spread of the virus. They are quick to refer to European and Asian countries practically shutting down their countries to check the spread of the virus. But as always, they are only concerned about themselves and their survival and do not care a bit about the overwhelming poor population who live by the day and cannot afford nor survive a lockdown. Terms such as social-distancing, self-isolation and quarantining are been used liberally without any consideration for the millions of extremely poor Nigerians who live in shanties and squalid conditions or do not even have roofs over their heads. For context, roughly half of Nigeria’s population of 200 million people live in extreme poverty, according to the

poverty world clock – the highest of such poverty rate in the world. That earned Nigeria the epitaph of poverty capital of the world. Over 70 percent of the Nigerian population, according to Oxfam, live in poverty. At the root of extreme poverty and even poverty generally in Nigeria is the deprivation of access to basic necessities such as food and healthcare and sanitation. Many of this overwhelmingly poor population live by the day, working each day to provide for their families. Take for instance, an example given by BusinessDay of Tuesday 24th March, of Tunde Akinloye, a 45-year-old vulcaniser in Apapa, Lagos, who lives with his family of eight and depend sorely of N5, 000 a day income for survival. What the news story didn’t say is that this family of eight for all purposes may be living in a one bedroom apartment, four to a room, with no access to running water and modern toilet facilities. To many in Lagos, the epicentre of the epidemic, that is even a luxury. Hundreds of thousands of others have no such luxury and practically live on the streets. How then can you shut down these people down or get them to practice social distancing, self-isolation and quarantining in such circumstances or even practice constant washing of hands? By advocating for a complete shutdown, the less than 10 percent of the population that could afford to stock up on food and other essentials to last the proposed two weeks or more of total shutdown are not concerned about the plight of the majority 90 or more percent who live by the day and cannot afford such a shutdown and are ready to sacrifice them for their sustenance. Earlier in the week, I was involved in a Whatsapp argument with a group of Nigerian academics, most of whom insist that I was exaggerating the poverty level in Nigeria. Some of them insist that many Nigerians can and will survive two weeks of shutdown. Some even argue that the majority of Nigerians who live in the rural areas are farmers and have food in abundant supply to last them for the duration of

lockdown or shutdown is impossible in Nigeria. Poor Nigerians cannot survive and will not survive it, despite the ignorant postulations of Nigeria’s middle class. It will lead to a revolt or escalation of crimes and robberies at best

the shutdown. This shows the unimaginative and narcissistic attitude of Nigeria’s elite and middle class. First, they refuse to pressure the government to do the right thing by stopping the importation of Covid-19 into Nigeria. Now that they have brought the virus into Nigeria, they are desperate to sacrifice the poor to stop its spread. It does not matter to them that the European and American countries ordering lockdowns have citizens with far higher standards of living, but even at that, their governments are still provide palliatives and even direct cash transfers to cushion the effect of the lockdown. Nigerian is currently broke and has no capacity to provide any palliative to its majority poor population in the event of a lockdown. Clearly, a lockdown or shutdown is impossible in Nigeria. Poor Nigerians cannot survive and will not survive it, despite the ignorant postulations of Nigeria’s middle class. It will lead to a revolt or escalation of crimes and robberies at best. Nigeria’s overwhelming young population should provide a clue as to the strategy to adopt in limiting the spread of Covid-19 in Nigeria. The median age in Nigeria is currently 17.9 years. Compared to the median age in Italy of 45.4 years, of China – 37 years, of America - 38.2 years and of Spain – 44.9, this is an eye opener. Finally, this pandemic has blown up the strategy and assumption of all of Nigeria’s elite and middle class population. These groups have superintended or at least watched the despoliation of Nigeria, its health and education facilities without a fight. They have always banked on or prioritised the getting of a second passport, the getting of comprehensive medical treatments and education for themselves and their children abroad. At no time did they ever factor into their equation the possibility of not being able to get out of the country or not being able to access healthcare and education abroad. Now that they are all stuck in Nigeria, hopefully, they will rethink their strategies and how they treat and relate to Nigeria.

Coronavirus: Social versus physical distancing

t does not require any comparing of ideas to establish that today Coronavirus (COVID-19) “rules” the world. It is a visitor that nobody welcomes but makes itself available without invitation and sentiments. In the context of (COVID-19), there is neither Jew nor Gentile, slave nor free, nor is there male and female. It has no respect for race, religion, economy, education, missiles or drones. It hits wherever and whenever it pleases. It has become the “government” of governments. Without fear or favour, it is telling governments the world over to shut schools, airports, markets, places of worship, places of entertainment, and the likes. Persons are without any admonition complying with every instruction dictated by (COVID-19). I like the positive consequences of (COVID-19) but hate its visit. It has created a new world order. It has been able to stop some practices of government that the citizens could not stop. COVID-19 has become the constitution of the world. The disease is making once demented families now live together, pushing people to prayers, decongesting prison yards, and a whole lot of other useful things. To limit visits of the unwanted visitor, I hear warnings such as “keep a social distance of two or three metres.” That doesn’t make any sense to me because Social distance should not be calibrated in metres. I don’t sincerely believe that this is one of the “instructions” of (COVID-19). What the unwanted visitor compels us to do is maintain “physical distance” which can, in fact,

be calibrated in metres, kilometres, or even in feet and inches if you like; while maintaining a close social relationship. Social distance is about the distance between different groups in society in terms of intimacy they feel for each other. It is affective and not physical distance. The call for social distancing is the same as a call for social disconnection, exclusion and isolation. The call does not have the potential to combat the COVID-19 pandemic. Socially lonely people are less likely to respond to treatment and get cured. The more appropriate term is “physical distancing.” When someone is quarantined, a physical distance is created, but social distance is expected to be minimised to ensure that the person does not die of isolation. Social connectivity is imperative when someone is physically isolated. Now is the time to encourage social intimacy because COVID-19 is treating us as equal partners in the pandemic. It is not sensitive to religion, occupation, or financial standing. It is like rain that falls on any and every roof. It is not subject to any immigration laws. It visits any country without a passport. It has no respect for the closure of land borders. I believe what we should begin to chorus and apply is greater “physical distance” and not any form of greater social distance. In maintaining physical distance, there should be very active social closeness and not social isolation. The time for empathy, compassion, love, and affection is now, especially for those who are already victims

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of the disease. Social connection is even more crucial when physical contact is marked a form of “taboo”. Physical distance could result in less social contact, but then, technological advances such the telephone, television, and the internet have made it possible to reduce the loss of physical contact. We can now interact more closely and frequently on social media such that those in isolation on account of being victims of the virus would not feel isolated. Physical distance should not create any anxiety leading to psychological distance. The impact of social isolation on victims could even be more terrible and devastating than that of the virus itself. Even though there is lockdown everywhere, some churches, for instance, are serving sermons and prayer points to members using social media platforms. I also expect schools and universities to be active on social media with their students and parents. The opportunity for everyone to be keen on social media is now. Everything in life is like a coin. It always has two sides. No doubt, COVID-19 has brought a lot of untold hardship to the world. But lying underneath the pains and agonies of the disease are also great opportunities. Let’s begin to explore the potential of video and phone calls, WhatsApp, Facetime, Instagram, text messages fully. People should even start to meet for video lunch, and for those whose employers have directed to work from home, create online working groups. These are not initiatives that should

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Francis Iyoha be abandoned once the virus travels back to its source. There should be deliberate efforts and commitment to determine where the balance of advantage lies in all of these compared to former and alternative ways and means of doing the same thing. While it has become compelling that we maintain physical distance, let’s be mindful of the need to be socially connected. I listened to a video by a former Commission in Ogun State who has tested positive to the virus and has been quarantined. While being quarantined, I guess he would want to hear family and friends say: “we love you,” “we miss you,” “we wish you quick recovery….” What could be more soothing than those words of empathy and sympathy from loved ones physically separated and socially connected! Please, it is physical distancing and not social distancing. Professor Iyoha is of the Department of Accounting, Covenant University and Research Fellow, the Institute of Chartered Accountants of Nigeria (ICAN). He wrote viafoiyoha@ican.org.ng

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BUSINESS DAY

Thursday 26 March 2020

Editorial Publisher/Editor-in-chief

Frank Aigbogun

Climbing coronavirus cases will test Nigeria’s poor healthcare system

editor Patrick Atuanya

Private companies and individuals must emulate GTBank

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

any poor Nigerians can’t afford to fall ill, much less survive the coronavirus pandemic or a total lockdown to contain it; it would cost them their lives. After years of neglect and underfunding Nigeria’s poor healthcare will be sorely strained as the number of infected cases rises. There are not enough equipment like ventilators, bed spaces in intensive care units, anaesthetists, and nurses. (New York, a city of 8.6 million people has seen demand for intensive care beds spike to 40,000). So far in Nigeria only one person has died from the contagious disease, a 67 year-old who had other health complications. Persons aged 65 and above are higher risk of severe illness and need to be hospitalized. This doesn’t mean younger Nigerians need not worry; a strong immune system, hygienic habits (frequent hand washing with a sanitizer

in the absence of water and soap) and other precautionary measures are the best safeguards in the absence of a functioning healthcare system. Over 152 million Nigerians live below $1 (N380) a day and cannot afford nutritional food that would boost their immune systems against virus like covid-19. What’s more, for Nigerians who can afford to treat malaria, it is likely an out-of-pocket expense. Few Nigerians have health insurance and the brain drain of medical professionals adds to the risk of a misdiagnosis – under equipped hospitals and frequent power cuts are some of the reasons doctors are leaving the county in droves. Access to quality healthcare is a luxury for more than 87 million Nigerians estimated to be extremely poor. A hundred million malaria cases are recorded in Nigeria every year, out of which an estimated 300,000 deaths are recorded. Nigeria bears a disproportionately high share of the global disease burden, according to the World Health Organisation

(WHO). Even though most of the world has eliminated malaria, it remains a leading cause of death in Nigeria. Because of poverty a preventable disease is a death sentence. Most Nigerians earn their living daily. Few have any income left after spending on essentials such as food. Hence social distancing and self-isolation, the best precautionary measures against a flooding hospitals and overwhelming medical professionals, are synonymous to a death sentence. The informal sector, which is at least41 percent of the Nigerian economy, largely relies on face-to-face interactions to complete transactions. Many will be caught between staying at home or hitting the streets to hustle, Disobedience to directives to avoid large gatherings contributed to rise in the number cases in Italy. With these set of people out on the streets, the spread of coronavirus in Nigeria could be rapid. As at Tuesday evening, Nigeria had recorded 42 cases of covid-19, 39 active cases and 2 discharged

cases. At this rate, we are completely unprepared to deal with a major outbreak. And which is why the Lagos Ministry of Health has asked attendants of the Africa Magic Viewers’ Choice Awards to self-isolate after an infected case was confirmed. But the resilient Nigerian spirit must prevail. Our health system is broken but not our humanity and sense of solidarity. Through collaboration we can overcome this ordeal. Thus we highly commend the initiative of GTBank, to set up a 100-bed intensive care centre for coronavirus cases. Larger doses of such a gesture, an example of timely response and exemplary corporate social responsibility, are what we need now; not bickering and blaming. Many more private individuals and companies must join in combating the pandemic threatening the health and economic prosperity of Nigeria. In these trying times, all hands must be on deck to strengthen the Nigeria healthcare system to fight covid-19.

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BUSINESS DAY

Thursday 26 March 2020

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The small axe of coronavirus and the Neighbour Principle The Public Sphere

CHIDO NWAKANMA

trust that you are staying safe, dear reader, only stepping out to buy essentials, visit the newsstand and such like. We are in the age of Coronavirus and all of mankind is in search of the small axe. The metaphor of the small axe applies to both the coronavirus and the search for solutions to what it has caused. My favourite reggae artist, the late Robert Nesta Marley, popularised the Bible verse on the efficacy of the small axe. Indeed, there are several Biblical references to the small axe. Bob Marley, however, sang about those “working iniquity to achieve vanity” and declared So, if you are a big tree We are the small axe Ready to cut you down (well sharp) To cut you down The coronavirus has become a small axe with the capacity to bring down the giant tree. It has humbled the leading nations of this era, from the United States through the United Kingdom to the nations of Europe. It has taken a tiny invisible virus to bring every nation and high-ranking official down several notches.

The small axe of the coronavirus hit several nations hard. Italy is number one. Experts are still trying to unravel why the preponderance of deaths per case of more than ten per cent in Italy against the norm of less than five per cent in other countries. Because of coronavirus, the world is shutting down. Cities across the world are on lockdown. Wise people learn from the experiences of others as direct experiencing can be very expensive. Unfortunately, Nigeria did not learn in the first two months of this pandemic as it ravaged various countries. We refused to take positive and hard decisions to ensure that we do not go the route of those countries. Now, we are at Corona Gate. The numbers of the affected increase daily. More significantly, disclosures about parties and meetings by our eminent citizens across the world bear out the claims previously underground that our numbers are grossly under-reported. The small axe of coronavirus is humbling the high and mighty of Nigeria. Nigeria’s “big men” distinguish themselves by recalcitrance, boorish conduct and disregard for the laws they either made or are supposed to implement. It is thus not surprising to learn that members of the National Assembly disregarded the simplistic tests FAAN officials carry out at the airports. They just walked past and refused to self-isolate. Very typical. Coronavirus has declared war on nations. Each day, we watch as leaders of various nations, from the developed world to other African countries, lead from the front in briefing their citizens

and acting decisively. It usually involves both the executive and the legislative arms. On the contrary, our war councils shut down in apparent abdication. From the Federal Executive Council, the National Council of States through the National Assembly, they took off rather than lead from the front and assure citizens of their commitment to tackling the issue. From being a small axe, coronavirus has transformed into the big tree. Coronavirus in Nigeria has commenced with the elite, bringing out the many paradoxes of governance and leadership in our land. Our clinics are “mere consulting clinics”, the reason the man who popularised that term always goes abroad despite voting huge sums for the clinic right where we house him. Reactions online to the incidents of positive tests for coronavirus by the high and mighty speaks volumes about social relations in our country. It is sad and frightening. Nations and their citizens must now bring out their small axes to cut down the big tree of coronavirus We must do so collectively, each person lifting the other. We must apply the Neighbour Principle that urges all to ensure that our actions do not cause harm or injury to our neighbour. Our neighbour is anyone likely to suffer a consequence, positive or negative, from our actions. It is best to be the Good Samaritan of which the Lord Jesus spoke in the Christian Holy Book. On this score, Guaranty Trust Bank earns huge plaudits for its action that epitomises both the Neighbour Principle and best practice in Corporate So-

‘

The coronavirus has become a small axe with the capacity to bring down the giant tree. It has humbled the leading nations of this era, from the United States through the United Kingdom to the nations of Europe. It has taken a tiny invisible virus to bring every nation and high-ranking official down several notches

Turning your lemon into lemonade

s one of my life calls, I engage with the young people and business owners a lot in my attempts to help individuals and organisations to focus on the right thing and maximise their potential. I have been visiting and interacting with the Youth Corp members during the orientation camps for years. At every opportunity, I have been overwhelmed by excuses of what is not working in Nigeria, how backgrounds have limited people, how a lack of capital has stunned great ideas, among others. My response to people who give a series of reasons why they are not progressing is first to acknowledge the existence of their concerns and ask them to turn their lemons into lemonades. The reasons to fail has been existence for ages. It will not be a perfect world one day. People who are excusemakers will not get to their destinations on time and might even live life unfulfilled. The essence of life is to make progress despite adversities and challenges. If life doesn’t challenge you, it won’t change you for better. To the youth of this country, I acknowledge your lemons- they are the leadership that is not producing the results for all, the disadvantaged backgrounds and lack of jobs or opportunities after school. The list is endless. However, I do see some foreigners, especially the “Oyinbos” coming to Nigeria in their numbers. I’m sure they are not here to eat our eba, amala and ewedu. They have their version of Afang soup and don’t need to travel miles to enjoy life in an unknown land. They are here to prospect the opportunities in our economy. If you are in the middle of the opportunity, you have the advantage if you can stop the excuse game

and end the pity parties. You are to concern yourself not with what you cannot change but with what you can change and how to make that better. Lemons are situations or circumstances, creating doubt and preventing you from achieving your life goals if you celebrate them. Unfortunately, the conditions are neutral. It is your perspectives on any situation that make it either positive or adverse event. Roger Bannister’s lemon was the widely accepted illusion among the scientists and athletes that no man can run a mile under four minutes. The general belief was that the human heart is not capable of running a mile distance within four minutes and the heart of anyone who attempted it will burst. I’m sure the situation of unemployment in our society is a “heart buster” for the youth and families whose all investments are in the education of their children. Roger Bannister, a medical student and an Olympic runner, broke the four-minute per mile barrier in Oxford on May 6, 1954, turning the colossal lemon into lemonade for others to drink. Bannister set the pace by running 1,609.344 metres under four minutes and create confidence for others to follow. Within two years, the likes of John Landy, John Walker, Steve Scott and a host of others numbering twenty-five did what Roger’s did to confirm the new standard that the human heart isn’t incapable of running a mile race in four minutes. The four-minute mile race is still around us. There are real and assumed limitations here and there. Your four-minute limitation might be unemployment, lack of fulfilment on your job, health-related problems, and how to move on in life to be the best of your-

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self. I agree that things are difficult. However, you must see beyond the limitations to be rewarded in life. Roger did overcome similar obstacles before achieving his objective. He believes he can do it. His study shows there was no evidence to support the limitation and his faith pushed him to set the pace. I’m sure there is no evidence that you can’t overcome your present condition. There is no evidence that Nigeria will not get better with good leadership. Roger Bannister did not achieve his life goal without paying the price to get the prize. He decided what he wants to do, he was part of a profession and not a busy-body or idle member of the athletics world and he can see it before he realises it. You cannot win the prize if there is nothing you are working at. There is no divine blessing for hands that are idle and empty. It’s a natural law; you can’t change it! I know you have dreams. I want you to see the limitations as obstacles that must be surpassed in your growth process. You can create lemonades from the lemons if you dare to do what Roger did. First, identify what you really what to do in life. Commit to it and surround yourself with people going on the same mission. Do not be like a dreamer who woke up from his dreams and cover himself with the duvet to sleep again. Wake up and run with your desires. In conclusion, I want to share two real-life experiences to illustrate the possibility of moving forward amid limitations. I met Josephine, who was a casual worker in Lagos. She didn’t attempt to further her education due to lack of finance. My words to her were ‘first do your JAMB, get the admission letter into a university and start looking for help

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cial Investment. Tomorrow, according to GTB MD Segun Agbaje, the bank will open to the public its 100-bed hospital that would equip Nigeria further to tackle care for persons afflicted by the coronavirus. The GTB bequest represents more than a million small axes to help cut down the big tree to which the small axe of coronavirus has transformed. Nigeria needs more of such. Who can manufacture ventilators in sufficient numbers and quality for when we need them? Who has the capacity for doing masks? Who would supply sanitizers? Are our pharmaceutical firms ready to manufacture drugs such as oxychloroquine identified as promising? Which labs can do the test for coronavirus? How quickly can we build and equip robust laboratories across the country? The fact is that many of our citizens in big cities such as Lagos may not have farms in the backyard from which to pluck essentials during this period. Reach out to neighbours. Visit. Assist those who may not be able to stock up. The call of today is for citizens, corporate and individual, to bring out the small axe of kindness, apply the Neighbour Principle and serve as Good Nigerians (Samaritans) one to the other. Even now the axe is laid to the root of the trees. Every tree therefore that does not bear good fruit is cut down and thrown into the fire – Matt 3:10 Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@ gmail.com.

Positive Growth with Babs Babs OlugbemI

with the admission letter’. She followed that advice, did her part of the bargain, and today she is a graduate working in one of the banks in Nigeria. You can turn your lemon into lemonade. Bolanle was confused about what to do with her life. Her job is unfulfilling and very stressful. She hates Monday mornings and always look forward to Fridays. She was advised to find her latent interest and combined that with her job. She turned her “lemonish” situation into lemonade sweet drinks when she started using her weekends to learn sewing. Within two years, she became one of the best fashion experts in town. Today, life is kind to her because she is operating in her strength zone. You can make the best out of any situation. Once again, it is not the country that is failing you; It is your inability to lead yourself. The start point is to challenge yourself and draw out what is inside you and not bringing in what is outside. You can do it, and I’m sure Nigeria will better if you start the journey leading to the victory party for yourself and others through your impact. Babs Olugbemi FCCA, the Chief Responsibility Officer at Mentoras Leadership Limited and Founder, Positive Growth Africa. He can be reached on babs@babsolugbemi.org or 08025489396.

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Thursday 26 March 2020

BUSINESS DAY

COMPANIES & MARKETS Seplat’s profit surges 13.5% on tax incentives despite lower production and oil price

COMPANY NEWS ANALYSIS INSIGHT

DIPO OLADEHINDE & OLUFIKAYO OWOYE

eplat Petroleum Development Company Plc, Nigeria’s largest listed Oil & Gas firm by market value rode on a tax holiday to increase its profit by 13.5 percent despite lower production and oil price. Despite an average oil price of $64 in 2019 compared to the $71 in the previous year and a 6.8 percent decrease in oil production, Seplat was able to increase its profit before deferred tax by 13.5 percent to N83 billion ($270 million) thanks to tax incentives. “The financial statements have been prepared taking into consideration the impact Seplat Petroleum Development Company Plc 10 Fullyear 2019 financial results of the additional tax holiday and this forms the basis for the Group’s current income taxation and deferred taxation for the year ended 31 December 2019,” Seplat’s said. In line with sections of the Companies Income Tax Act, which provides incentives to companies that deliver gas utilisation projects, Seplat was

...declares a final dividend of $0.05 per ordinary share granted a three-year tax holiday with a possible extension of two years in 2015. Tax expense for 2019 was $29 million, compared to $117 million for 2018. Previously unrecognised deferred tax assets of $20 million from prior years’ tax losses and unutilised capital allowances were recognised, after an assess-

ment of the relevant entity’s future profitability showed recoverability of the deferred tax assets. This resulted in a deferred tax charge of $6 million for the year compared to $92 million in 2018. Upon review of the performance of the business in 2018, Seplat provided a notification

to the Federal Inland Revenue Service (FIRS) for the extension of claim for the additional two-year tax holiday. Profit before tax adjustments, was $293 million, up 11 percent compared to $263 million in 2018 while Finance charges for the period were lower due to the positive impact of deleveraging in the

Austin Okere, founder/entrepreneur-in-Residence, the Ausso Leadership Academy and the Members of the Global Shapers Community- Laos Hub (an Initiative of the World Economic Forum) when they were hosted to a Meet the Leader session in Lagos.

CONSUMER GOODS

PZ Cussons announces sale of diary segement to WAMPCO OLUFIKAYO OWOEYE

.K based consumer goods company, PZ Cussons has announced the proposed sale of its Nigerian dairy business, Nutricima, to FrieslandCampina WAMCO Nigeria Plc, an affiliate of Royal FrieslandCampina in the Netherlands. PZ Cussons in a statement on Monday said the proposed sale is in line with the group’s focus sale and accelerate strategy in order to streamline its focus on core personal care and beauty products. Nutricima’s major product portfolio includes milk and yoghurt based drinks such as Nunu, Yo, and Olympic. WA M C O s u b s i d i a r y , FrieslandCampina has a long history in Nigeria. It was incorporated in April 1973 as West Africa Milk Company

year. The net finance charge was $20 million, compared to $47 million in 2018 while the Net profit for 2019 was $277 million. The resultant basic Earnings Per Share (EPS) was $0.49 in 2019, compared to an EPS of $0.26 in 2018. Operating profit for 2019 was N95.7 billion ($312 mil-

Nigeria (WAMCO) and commenced operations in 1975. The company is an affiliate of Royal FrieslandCampina of The Netherlands, one of the largest dairy producers in the world. The company recently announced the resignation of Pedro Barreto, its chief finance officer with effective from 31 March. According to the management, this is to allow him pursue other personal endeavors. Barreto joined the company in February 2018. In replacement, the company has also announced the appointment of Zuber Momoniat, a South African as the new chief finance officer with effective from 1st April 2020. Momoniat is a certified chartered accountant with over 17 years of experience in account reconciliation, budgeting, internal

controls, forecasting, and financial planning. He started his career in audit at PwC and later SABMiller in different countries across various units of finance for 12 years. This is coming few months after the resignation of another director, Alexander Goma in September last year. In the sixties to the midnineties, a lot of Nigerian families were addicted to the array of products manufactured and produced by PZ Cussons Nigeria Plc., such as Imperial Leather Soap, Robb, Premier and Joy soaps and recently, Nunu powdered milk and morning fresh. The ubiquitous influence of these products were felt in the society; in restaurants, offices, conferences, salons, hotels, which underscores a period of bloom for the consumer goods firm.

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Sadly, the glory days of the company that produce electrical, homecare, personal care and beauty are over, as a weak macroeconomic environment and stiff competitions are undermining earnings. For the first quarter ended 31 August 2019, PZ Cusson’s revenue dipped by 0.56 per cent to N15.80 billion. Between 2018-17 financial period, its top lines (sales) declined by 15.88 per cent to N15.89 billion, but it was up by 12.77 per cent to N18.89 billion in 2017-16 periods. The slump in revenue can be largely attributed to weakness in the Home and Personal Care (HPC) Segment as it continues to wrangle with increasing competition from cheaper unbranded products as well as products from unrecognized smaller players which continues to exert pressure on HPC business.

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lion) compared to N94.9 billion ($310 million) last year, helped by the gas-tolling revenue recognised but set against the reversal of previously recognised accrued interest of $40 million on Nigerian Petroleum Development Company Ltd (NPDC) receivables due to the settlement of these receivables. Gross profit increased slightly to $396 million from $391 million the previous year as a result higher gas processing revenues and lower nonproduction costs primarily consisting of royalties and DD&A, which were $188 million compared to $244 million in the prior year. Depreciation, Depletion and Amortisation (DD&A) charge for oil and gas assets decreased to $91 million during 2019 compared to $119 million last year, reflecting lower depletion of reserves because of decreased production compared to the prior year. Direct operating costs, which include crude-handling fees, rig-related costs and operations and maintenance costs amounted to $105 million in 2019 and remained flat against $105 million in 2018.

HEALTHCARE

Fidson, Neimeth, May&Baker, GSK, 6 others to access CBN FX facilities to boost medical supplies MICHAEL ANI

o fewer than 10 pharmaceutical companies have been granted both naira and foreign exchange facilities by the Central Bank of Nigeria (CBN) to assist in boosting local production of drugs in the country. This was seen in a communique from a meeting held by Central bank and the Banker’s committee— comprising majorly Chief Executive Officer’s (CEOs) of banks—to deliberate on the impact of the coronavirus pandemic on the banking system in particular and the economy at large. A total of N1.1 trillion Nigeria has been set aside in the form of an N100 billion intervention in healthcare loans to pharmaceutical companies, health practitioners intending to expand and build capacity, and N1 trillion loans to boost local manufacturing and production across criti@Businessdayng

cal sectors. This is a part of the N3.5 trillion fiscal stimulus in which the apex bank unveiled to ameliorate the pains arising from the health and economic crisis caused by coronavirus outbreak The pharmaceutical companies that would-be beneficiaries to this funding facility include, Emzor, Fidson, Swiss Pharma, Neimeth, Orange Drugs, Dana Pharma, Sagar, Unique Pharma, May&Baker and GSK, the CBN said in the memo while noting that the list might not be limited to the ten companies This would help them in procurement raw materials and equipment to support in the local production, following the shortages of drug import from China and India as well as the move by many other countries to export of drugs and medical supplies, due to the coronavirus pandemic which has disrupted global supply chains, the memo reads.

Thursday 26 March 2020

BUSINESS DAY

COMPANIES&MARKETS

Business Event

LS Scientific launches Vendor Managed Inventory to support Nigerian firms SEGUN ADAMS

S Scientific Ltd, a Nigerian-owned company dedicated to the provision of products and services across different sectors of the economy, has launched its exclusive Vendor Managed Inventory (VMI) program to partner various firms across the country in managing their inventory for Laboratory Chemicals and Consumables. The VMI, which is a proven inventory management system, will improve inventory replenishment process for customers, and help them boost productivity for their business by cutting cost. VIM is an arrangement in which a supplier monitors and manages its products within a customer’s inventory to ensure they are always in stock in line with demand for them. “LS Scientific’s goal is to ensure that our customers get the Laboratory Chemicals and Consumables they need, when they need them and how they need them

to integrate smoothly into their quality assurance and manufacturing processes,’’ said Mr Odunjo Olumurewa, Managing Director, LS Scientific Ltd. According to Olumurewa, the VIM program will help customers avoid stockouts by always having Laboratory Chemicals and Consumables ready when they are needed. Olumurewa added that the program would enable customers to gain better intelligence over their Laboratory Chemicals and Consumables processes used to implement orders. The VIM model has been successfully applied in both large and small scale businesses that require properly monitored or managed inventory levels, including in giant supermarkets like Walmart. Around the world, the use of VIM has helped organizations avoid waste and reduce loss which is associated with disproportionate stock levels. Similarly, it has simplified purchasing and streamlined the ordering system along with the warehousing and inventory management of Laboratory Chemicals and

Consumables for firms. Meanwhile, research has shown that ineffective inventory management can frustrate effective demand forecasting, lower customer service target and optimal replenishment cycles. “Our program will help our customers save money on stock levels and reinvest capital into their businesses,” said Olumurewa. LS Scientific Ltd is a company dedicated to providing quality control solutions within the health sector, pharmaceutical sector, food and beverage sector, oil and gas sector etc., with a goal of ensuring excellent quality standard that further enhances the productivity of finished products. LS Scientific Ltd was incorporated in February 2007 in the United Kingdom and Nigeria in March of the same year, although it commenced business in 2009. The company boasts of expertise level scientists who use different techniques that satisfy the Global Scientific requirement and has permits with NIPEX, NAFDAC, SON, and is IPAN certified.

L-R: Obinna Nwokoye, Hypo area marketing manager; Paul Enoedume, HOD, Junior Church, and Emmanuel Inyang, Hypo area marketing manager, during the Hypo place of worship sensitization at RCCG Cornerstone Parish, Ago Palace Way, Lagos.

L-R: Mordu Musa, editor, Ones and Twos Media; Debo Onabowale, board of trustee member, Mindshift Advocacy for Development Initiative; Joko Okupe, founder/convener, Mindshift Advocacy for Development Initiative and FuturSpeek, and Tinu Philip-Odufuye, founder, Ladies Breaking Boundaries, at the FutureSpeek pre- conference parley in Lagos.

CONSUMER GOODS

International Breweries commissions N44m ultra-modern healthcare facility in Port Harcourt JOSEPHINE OKOJIE

n a bid to ensure efficient and effective healthcare delivery in Rivers State, the International Breweries PLC (IB) has commissioned an ultramodern healthcare facility in Oginigba, Port Harcourt. IB, a member of the global largest brewer, AnheuserBuschInbev (AB InBev) invested N44million to build, furnish and equip the healthcare centre which will be subsequently managed by the Rivers State Primary Health care Management Board. The Oginigba healthcare centre is a state of the art health facility equipped with medical facilities such as infant incubators and warmers, nebulizer, anaesthesia machine, suction machine, delivery beds, X-ray new box, oxygen concentrator, facilities for the resident doctor, and auto clave machine amongst others. Otunba Michael Daramola, corporate affairs director, IB said that the commissioning was yet another testament to the organisation’s commitment to an effective

and efficient Corporate Social Responsibility (CSR) system, which the company does in partnership with its host communities. Daramola said that the dream of bringing people together for a better world as espoused by the company drives the vision to support communities and the people of Nigeria in five CSR interventions areas: empowerment, education, health, infrastructural support, and responsible drinking. “The dream of bringing people together for a better world led to our vision of supporting the Rivers State government to provide this primary healthcare facility in Oginigba to cater for the people of the community and environs,” he said. “With this project, we are also demonstrating our contributions to the United Nations SDGs goal 3,6 and 9,” he further said. “Before this project, we renovated the Oginigba Primary School borehole which currently provides potable water to the entire community,” he stated. He added that IB is also supporting youth empowerwww.businessday.ng

ment initiative in the state as eight youth has received a total sum of N7.9 million as grants from the IB’s Foundation under the Kickstart Youth Empowerment Programme. Daramola stated that the organisation is also driving responsible drinking and sensitisation campaigns in partnership with the Federal Road Safety Corps (FRSC) to stem the menace of underage and binge drinking in communities and among consumers in Port Harcourt. Nyesome Wike, Executive Governor of Rivers State, in his speech, commended IB for responding swiftly to the medical need of the community after the state government provided the site and location for the healthcare facility. Wike, who was represented by Kaniye Ebeku, Commissioner for Education gave the assurance that the government would continue to provide the enabling environment to support the business operations of corporations like IB that are complementing the state government’s efforts at improving the lives of its citizens.

L-R: Olubunmi Agbaje, shopper and channel marketing manager, Nigerian Bottling Company Ltd (NBC); Rodrigo Recio, execution excellence director, NBC; Oluyomi Moses, head of marketing, NBC, and Abiodun Ajiborode, marketing manager, Coca-Cola Nigeria, during the ‘Win a trip to the EPL promotion launch’ held in Lagos.

L-R: (front row): Kayode Adigun, divisional head, service management and technology, First City Monument Bank (FCMB); Gbemisola Dada, secretary general, Ojokoro LCDA Market Women Association; Rasheed Macaulay, director, Lagos State ministry of agriculture; Gboyega Idris, assistant director, and Adejumoke Arije, zonal head, Ikeja 2, during the commissioning ceremony of FCMB Cash Centre at Agege Abattoir, Lagos

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Thursday 26 March 2020

BUSINESS DAY

cityfile

Covid-19: Dunamis Church donates equipment to Abuja Hospital JAMES KWEN, Abuja

unamis International Gospel Centre has donated assorted precautionary kits to the Federal Capital Territory Administration (FCTA) to check the spread of Coronavirus in the nation’s capital. The safety kits donated include 20 cartons of hand sanitiser, four cartons of hand gloves, and seven packets of face mask. Senior Pastor of Dunamis, Paul Eneche while presenting the items to the FCT minister of state, Ramatu Tijjani-Aliyu, on Tuesday, said the donation was in line with the teachings of Jesus Christ, emphasising that the devastation caused by the Coronavirus should not be left for government. Eneche said the church recognises the efforts made by government at all levels in the battle against the Covid-19, hence the need to assist in whatever capacity to overcome pandemic. “As a church we want to be on the same page with government in line with the teachings of our Lord

Jesus Christ, who made life meaningful for the common man. We are not just going to pray and trust in God to save us, but we must come out to support the constituted authorities”. Receiving the kits on behalf of the FCT administration, Tijjani-Aliyu observed that Nigeria has overcome difficult situations in the past and would overcome this time. Tijjani-Aliyu, who commended Dunamis Church for showing leadership quality, said the nation was passing through a difficult period that calls for concerted efforts of all to overcome. The minister thanked the church for the gesture and called on other religious and corporate bodies to do same as government was doing everything possible to overcome the situation. The church had also donated medical equipment and materials to Primary Care Centre, Lugbe in Abuja Municipal Area Council (AMAC). The items include eight hospital beds and mattresses, two height measuring sticks, one examination couch, two diagnostics sets among other.

Fake employment syndicate smashed in Bauchi

auchi State government says it has arrested 10 civil servants who issued fake employment letters to 120 applicants in the state. Th e sy n d i cat e ha d duped the applicants of over N3.2 million, the State Head of Service, Abubakar Ma’aji, said while parading the suspects. According to him, the 10 civil servants serve in the state ministries of health and works. Ma’aji added that the fake appointment letters into various positions in the two ministries were issued between 2017 and 2019. He explained that the syndicate capitalised on the appointment window approved by former governor, Muhammed Abubakar, for absorption of 1149 medical students into the health sector. Ma’aji said the activities of the suspects were blown open following

public outcry that in spite of a government embargo on employment, they had continued to recruit personnel under the guise of “Replacement”. “I then directed all heads of MDAs to investigate the matter and based on that the state ministries of Health and Works uncovered the said syndicate. “The syndicate even applied and obtained Personal Sub-head Numbers (PSN) from the treasury department for the fake appointments, but were discovered to be same with some of the genuine students that were employed by the government. “It was discovered that the names of those given fake appointment letters were not in the government approved lists, hence a committee was setup under one Ibrahim Gambaki, director of finance and administration in the ministry of health to further investigate the matter,” he said. www.businessday.ng

Officials of Lagos State Task Force Monitoring Team on Enforcement and Campaign Against Social and Public Gathering to Curb the Spread of Deadly Corona Virus sealing up Shisha Lounge (Night Club) in Lagos on Monday Night. NAN

Lagos orders 60% loading capacity in public buses … compulsory disinfection of boats JOSHUA BASSEY

s a further measure to contain the spread of the Covid-19 (Coronavirus) pandemic within the public transportation pace, the Lagos State government has ordered buses and cabs to maintain 60 percent loading capacity in compliance with the World Health Organisation’s (WHO) social distancing order. Frederic Oladeinde, the state commissioner for transportation, who issued the directive, said this also applies to water transportation.

In this wise, the commuter buses popularly known as Danfo must compulsorily reduce their loading capacity from 14 to 8 passengers to avoid easy contact and spread of the virus. Oladeinde said the Abandoned Vehicles and Parks Monitoring Committee would monitor operations of garages and parks, while the police would enforce the directive against violators. He warned that any driver caught flouting the regulated 60 percent loading capacity would face the wrath of the law. “In compliance with the social distancing order as a way of preventing easy

contact with corona deadly virus, all transport companies/operators are expected to sanitise their parks and garages regularly. They must also ensure that passengers are not more than 2 per line in a bus; no standing in any bus is allowed no matter how short the distance, violators of these guidelines will face the law’’ Oladeinde said. Oladeinde said that a directive had been issued to the Lagos State Water Ways Authority (LASWA) and all relevant stakeholders in water transportation business, including boat operators to henceforth ensure that their boats and life jackets

are thoroughly disinfected before embarking on any operation. All passengers in water transportation, he said, are compulsorily required to sanitise themselves by washing their hands with soap and water before boarding, while boat operators must use temperature monitors to test the temperature level of each passenger before embarking on a trip. He said the state government was leaving no stone unturned in preventing the spread of the deadly virus, urging the residents to cooperate so as to fight the virus to a standstill.

Ekiti: 2 septuagenarians, others to die by hanging

n Ekiti High Court sitting in Ado Ekiti has sentenced two septuagenarians and four others to death by hanging for the murder of one Sola Adeniyi. The six persons were: Oniyelu Olu, 63; Folorunso Oluwatoba, 65; Peter Ajayi, 73; Tijani Arowolo, 80 (who died during the pendency of the suit); Dolamu Olaide, 29; John Ojo, 77 and Lateef Arowolo, 45. The death penalty was pronounced on the convicted persons by Justice Lekan Ogunmoye. Ogunmoye held that the prosecution had successfully established a prima facie case of conspiracy, attempted murder and murder

against the convicts. According to charges, the offences run contrary to Sections 516 of the Criminal Code Law, Cap. C16, Section 320 of the Criminal Code Law, Cap. C16 and Section 316 of the Criminal Code Law, all Laws of Ekiti State, 2012. The prosecutor, Oluwakemi Daniel, told the court that the offences were committed on or about February 7, 2017 at Ilupeju Ekiti. She said that the convicts conspired to murder one Sola Adeniyi, 27 and also attempted to murder a commercial motorcyclist, Ojo Olaoluwa, 22. The prosecutor said that Olaoluwa gave evidence that

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when the second accused person (Folorunso Oluwatoba) stopped him on that fateful day he was about to mount the motorcycle, he noticed blood dropping from his bag. “Olaoluwa asked Oluwatoba to open the bag because of police check point ahead but he told him that it was grass cutter that was inside the bag and that he could not open the bag. “When it was perceived that the content might be incriminating, he took to his heels and shot Olaoluwa from the back,” she said. To proof her case, the prosecutor called five witnesses and tendered some exhibits which included confessional @Businessdayng

statements made to the police by the accused persons. Other exhibits were photographs of the severed body of the deceased, medical report from Ekiti State University Teaching Hospital (EKSUTH), Dane gun, locally-made single barrel and one cartridge. On conspiracy and attempted murder, all the accused persons were sentenced to five years imprisonment each, except the second accused person who was sentenced to 10 years. All the accused persons spoke in their own defence through their lawyers, C. O. Omokhafe, S. A. Longe, Busuyi Ayorinde and E. K. Adetifa and they called no witness.

Thursday 26 March 2020

BUSINESS DAY

Investor

In association with

Helping you to build wealth & make wise decisions Market capitalisation

NSE All Share Index

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

NSE 30 Index

NSE Banking Index

NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index

975.65 946.98

975.65

111.25

367.40

215.81

1,642.03

1,099.87

852.50

242.49

114.37

355.66

216.29

1,592.21

1,046.50

847.72

0.29

3.12

Week open (13-3–20)

22,733.35

N11.847 trillion

1,919.68

918.35

734.99

Week close (20-3–20)

22,198.43

N11.568 trillion

1,853.18

911.00

734.99

Percentage change (WoW) Percentage change (YTD)

-2.35 -0.56

-3.46 -12.43

-0.80 -20.91

0.00 0.00

-2.94 -19.60

-32.05

-3.20 -40.01

NSE Lotus II

0.22

-3.03

-17.62

-13.22

NSE Ind. Goods Index

-4.85 -2.71

NSE Pension Index

-0.56 -19.58

That dividend income you are waiting for isn’t coming early ...as Coronavirus pandemic makes companies postpone AGMs Iheanyi Nwachukwu

or any listed company to pay proposed final dividend, it must seek and receive the approval of its shareholders. The approval to pay dividend is usually sought by companies at their annual general meetings (AGM). Today, many companies that hitherto scheduled their annual general meetings for this month of March have either canceled or rescheduled them due to heightened risk of Coronavirus (COVID-19) pandemic in Nigeria. The companies are now utilising the windows provided by Rule 19.4 (d) and Section 213(1) of the Companies and Allied Matters Act (CAMA) in planning their AGMs. The health authorities at the Nigeria Centre for Disease Control (NCDC), World Health Organisation (WHO) and Lagos State and Federal Ministries of Health believe among other measures that the spread of the virus can be truly reduced through social distancing for as long as possible until this recedes. As at the time of filing this report, companies that have either canceled or postponed their AGM are: Notore Chemical Industries Plc, Morison Industries Plc, Africa Prudential Plc, United Capital, Greif Nigeria Plc, United Bank for Africa Plc, Transcorp Hotels Plc, and Transnational Corporation of Nigeria Plc. Shareholders of these companies

will now wait for the coast to clear concerning COVID-19. Its spread is limiting social gatherings such as AGMs where approvals are usually given to the Board of Directors for payment of dividend. What the Nigerian Stock Exchange said The Nigerian Stock Exchange (NSE) advised all listed companies to strictly adhere to communications and advice from the health authorities at the Nigeria Centre for Disease Control (NCDC), World Health Organisation (WHO) and Lagos State and Federal Ministries of Health. “The Exchange will engage other regulatory authorities in a bid to provide further guidance to listed companies in relation to

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steps to be taken in dealing with COVID-19”, according to Godstime Iwenekhai, Head, Listings Regulation Department, NSE in a recent statement. Leveraging Rule 19.4 (d) and Section 213(1) of the CAMA Already, the Exchange has drawn the attention of such listed companies that wish to postpone their AGMs or are yet to schedule their AGMs to Rule 19.4(d) on the Responsibility of the Directors/Trustees in Relation to General Meetings, Rulebook of The Exchange, 2015 (Issuers’ Rules). The Rule provides that “if an Issuer fails to hold its annual general meeting within nine (9) months from the end of its financial year end or within such extended

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period as may be approved by the Corporate Affairs Commission; the Issuer shall file a report with The Exchange within ten (10) business days of the end of the stipulated period explaining the reasons for their default; and they shall make an announcement in that regard in at least two (2) national daily newspapers within five (5) business days of receiving The Exchange’s approval to make the announcement”. The NSE also referred companies to Section 213(1) of the Companies and Allied Matters Act, L.F.N 2004 (CAMA) which provides that “Every company shall in each year hold a general meeting as its annual general meeting in addition to any other

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meetings in that year, and shall specify the meeting as such in the notices calling it; and not more than 15 months shall elapse between the date of one annual general meeting of a company and that of the next.” Companies can also recourse to Section 213(1)(b) of CAMA which permits the Corporate Affairs Commission (CAC) to extend the time within which an AGM may be held by a period not exceeding three (3) months. Greif Nigeria Plc Greif Nigeria Plc, a company listed on the Nigerian Stock Exchange (NSE) has postponed its earlier scheduled Annual General Meeting (AGM). “Greif is concerned with the safety and health of its employees, their families and the general public at large. As a result of this, the Company’s Annual General Meeting (AGM) which is scheduled to hold on Tuesday March 31, 2020 has now been postponed by the Board of the Company and rescheduled the meeting to hold on Tuesday June 23, 2020. Greif believes that the only way to truly reduce the spread of the virus is with social distancing for as long as possible until this recedes,” the company said in a recent notice to shareholders. Notore Chemical Industries Plc Notore Chemical Industries Plc also notified the NSE, the shareholders, and investing public that its 6th annual general meeting scheduled to hold on Thursday March Continues on Page 18

Thursday 19 March 2020

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

Investor’s Square

United Capital Investment Views

Global Market Review and Outlook Central banks around the world launch emergency rate cuts n the previous week, development around COVID-19 continued to dictate the direction of the market, as major indices under our coverage in Europe, US and BRICS continued to decline. Various economies embarked on expansionary fiscal and monetary policy actions to manage the direct and indirect impact of the outbreak. Notably, in a bid to spur economic activities in the time of crisis, more than 30 countries announced a rate cut during the week. Specifically, the Bank of England cut its key policy rate to an all-time low of 0.1percent, a follow-up on an initial rate cut of 50basis points (bps) in March-2020. Apart from rate cuts, apex banks across the world continued to roll-out liquidity injection programs to spur growth. On the latest development around COVID-19, major economies remain under pressure as number of average daily new cases continue to increase especially in US, Italy and Spain. However, a tiny ray of hope emerged during the week as some scientists were reported to have made a headway with

pronouncements and continued volatility in the global financial market as well as crude oil market. Domestic Market Review and Outlook YTD loss moves to -17.3percent In the previous week, the performance of the Nigerian equities market continued to be lacklustre, as the NSE All Share Index dropped by 2.4percent week-on-week (w/w), to 22,198.4 pts. This was expected, given the continued risk-off sentiment in Nigeria’s financial instruments, fuelled by the decline in oil prices and the outbreak of COVID-19. As a result, Year to date loss accumulated to -17.3percent at the end of the week. Also, market capitalization took a haircut worth N278.8billion, closing at N11.6trillion. Elsewhere, activity levels declined last week, as average volumes and value traded dropped by 29.3percent and 25.5percent, to 560.8million and N6.5trillion respectively. Across the sectors under our coverage, the previous week was mixed, as three out of five sectors closed positive. The Insurance (+2.8percent) sector was on top of the list, as investors bought MANSARD (+6.1percent), CORNERST

drug combinations and have proceeded to start human trials of the vaccine drugs. In the crude oil market, prices stayed below $31/b throughout the week. Notably, oil prices dipped significantly to a record low of $24/b. However, prices rebounded after the U.S. President made his first comment about the ongoing price war, stating that he would get involved in the global price war at an appropriate time, which oil trader interpreted to be soon. Talking about the oil price war, Russia plans to add an additional 72,000bpd to production in April-June. This week, we expect to see more policy actions/

(+9.4percent) and AIICO (+6.9percent). The Banking (+0.3percent) sector followed suit, owing to price increases in ACCESS (+8.3percent), ETI (+6.5percent) and WEMA (+11.1percent). The last gainer was the Oil & Gas (+0.2percent) sector, pulled up by OANDO (+10.5percent). On the other side of the fence, the Industrial goods (-4.9percent) sector topped the losers’ chart, due to a huge decline in DANGCEM (-15.2percent). Finally, the Consumer goods (-3.2percent) sector lost points, dragged by NESTLE (-7.1percent), INTBREW (-4.4percent) and FLOURMILL (-9.8 percent). In the Telecoms space, MTNN

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(+10.5percent) gained last week, while AIRTEL remained flat. E l s ew h ere, investors’ sentiment improved, with a market breadth of 1.3x, as 32 stocks gained while 24 stocks declined. Also, in terms of corporate actions, Julius Berger Plc released its FY-2019 audited financial results, growing Revenue by 36.9percent to N266.4billion and Profit after Tax by 43.6percent to N7.6billion. A final dividend of N2.75 was also declared, with a proposed bonus share proportion of 1 for 5. This week, we expect market sentiment to remain volatile, given the circumstances surrounding the macroeconomy and oil prices. We also expect investors to react to more dividend pronouncements and position in stocks with good fundamentals, given the current depressed prices. Money Market: A week of unsuccessful OMO auction Last week, the overall system liquidity levels remained elevated, as naira inflows outweighed outflows. Notably, inflows were in the form of OMO maturities (N344.5billion), NTB maturities (N47.6billion) and Bond coupon payment (N91billion) while outflows were in the form of NTB (N47.6billion) and weekly wholesale FX sales. Overall, average interbank funding rates (OBB and OVN rates) which started the week at c. 17.8percent level ended the week at 5percent. At the primary market segment, the CBN floated an unsuccessful OMO auction on Thursday to mop-up some of the OMO inflows. However, the result of the auction printed “No Sale” across all tenors, with subscription level at its lowest for the year (Total Bid to Cover Ratio: 0.1x). This was as foreign investors stood aloof amid worrying macro fundamentals and a possible devaluation of the naira. Meanwhile, despite the negative real interest rate on FGN T-Bills, total demand continues to outweigh supply at the primary market (Total Bid to Cover Ratio: 2.7x ; Previously 2.8x). Accordingly, the FGN successfully rolled over its maturing bills worth N47.6billion, at a relatively lower rate across tenors: 91-day bill at 2.30percent (previously 2.49percent); 182-day bill at 3.40percent (previously 3.78percent) and 364-day bill at 4.60percent (previously 5.30percent).

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators? Let us know and investor will help you investigate and report back. E-mail: iheanyi.nwachukwu@businessdayonline.com

Economy and Market

Privatisation: Key to economic sustainability Continued from last week

his will result in not only the enhanced profitability of these e nt it i e s bu t a ls o ensure continuous growth & sustainability, improved governance and visibility. Deferred Public Offer – This method is better suited to public enterprises that do not meet the listing requirements of the Exchange or require extensive work to become market ready. With a positive future outlook, they can be first privatised by private placement with a clause to make them public after a predetermined per iod or once cer tain conditions have been met. This provides an opportunity for private investors to bring them up to profitability, after which listing them on the Exchange will promote sustainability. Currently, majority of State Owned Enterprises (SOEs) fall under this category and Deferred Public Offering approach may be best suitable to improve their viability to investible funds for revitalization and to further stimulate the economy rather than leaving them at their current state of underperformance. Core Investor Asset Sale – Simply put, this occurs when government decides to cede 100percent ownership holdings on such entities to the private sector. Concession – This is the temporary transfer of public

resources, utility or other assets from the government to the private sector to develop, operate and manage for a specified period of time. In typical concessions, the concessionaire (private sector) is obligated to pay a fixed amount or percentage of revenues as agreed in the contract to the government for the concession. Concessions are an effective method for the privatisation of public assets without the government loosing permanent control of those assets as ownership automatically falls back to the government after the contract elapses. Summarily, privatisation has an effect in shifting the Governments focus from immediate political goals to long-term economic goals, which leads to development of the domestic economy. Having noted that many developing countries require restructuring of their State Owned Enterprises (SOEs) in order to improve efficiency,

which can be achieved through privatisation. It is also important that the Nigerian capital market is involved in all structural reforms especially those relating to public private partnerships and privatization. This is because the market helps to provide right-sized capital, encourage investment culture and create investment liquidity. This will go a long way in further strengthening the capital market and attract more foreign investment thereby boosting the economy and ultimately fostering fundamental economic growth. Ultimately, the government should look beyond the immediate revenue gain from privatization, and privatize entities that will open up the real sector of the economy and make individual businesses profitable and sustainable. This move will also free up government resources and cause a focus on its primary role of creating an enabling environment to support economic growth. Furthermore, the spillover effect of privatization will unwittingly develop all sectors of the economy which can also be attributed to government’s efforts. Article contributed by State Owned Enterprises Department of The Nigerian Stock Exchange Article contributed by State Owned Enterprises Department of The Nigerian Stock Exchange

That dividend income you are waiting ... Continues from Page 17

26 has been postponed until further notice. “Being a responsible member of the global community, the safety and well-being of our shareholders, employees and other members of the public remains paramount,” Notore further said. United Bank for Africa Plc The Board of Directors of United Bank for Africa Plc on Monday March 23 announced the cancellation of the earlier notice and postponement of its 58th Annual General Meeting (AGM) which would have held on Friday, March 27, 2020 in Lagos. “The cancellation of the March 2 notice and postponement of the Annual

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General Meeting are hinged on part of UBA’s measures, as a good Corporate Citizen, to avoid the spread of the coronavirus (COVID-19). A new notice of Annual General Meeting of the bank will be published in due course. “In this trying and uncertain period, the Board of United Bank for Africa Plc would like to assure all our customers, shareholders and other stakeholders that we are here for you throughout the crisis and beyond”, the bank said in a March 23 notice to investing public and signed by Bili A. Odum, Group Company Secretary. Transcorp Hotels Plc Also, on March 23, Transcorp Hotels Plc formally notified @Businessdayng

the investing public and the Nigerian Stock Exchange (NSE) that it has postponed its annual general meeting “due to the recent developments on the novel COVID-19 and the need to follow the guidelines provided by the World Health Organisation, the National Centre for Disease Control and the Federal Government of Nigeria amongst others”. The Board of Directors of Transcorp Hotels Plc approved the postponement of the Annual General Meeting (AGM) of Transcorp Hotels earlier scheduled to hold on Tuesday March 24, 2020, till further notice, according to the group company secretary Chike Anikwe.

Thursday 26 March 2020

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

Seplat grows pre-tax profit by 13.4% to $270m ...proposes $0.05 final dividend per share to shareholders Iheanyi Nwachukwu

eplat Petroleum Development Company Pl c ha s re l eas e d it s audited results for the financial year ended December 31, 2019. The leading Nigerian independent oil and gas company listed on both the Niger ian and L ondon Stock Exchanges posted 13.4 percent growth in profit before deferred taxes to $270million. It recorded revenue of $698 million with total capital expenditure of $125 million, $114 million on oil and gas assets. Cash flow from operations stood at $338 million; cash at bank $333 million and final dividend maintained at $0.05 per share. The company operational performance shows low unit cost of production at $6.20/boe; working interest production of 46,498 boepd in line with 2019 revised guidance of 45,000 – 48,000 boepd; liquids production of 23,935 bopd; gas production was 131 MMscfd; and Final Investment Decision (FID) taken for 300MMscfd ANOH gas processing facility. Its first gas now expected fourth-quarter (Q4) 2021. Austin Avuru, Chief Executive Officer, said: “As we enter a challenging phase for the global economy, Seplat will benefit from

Austin Avuru, chief executive officer

being a resilient company built on the solid foundations of prudent financial management and the careful mitigation of risk.” He said “We have previously been tested by crisis. We successfully navigated the twin challenges of the 2014/2015 oil price shock, which was immediately followed by the

16-month Trans Forcados shutin, which drastically reduced our liquids production. Thanks to our flexibility in managing cash flows we emerged a stronger and betterfunded company, ready to take advantage of new opportunities. Compared to those difficult periods, today’s Seplat has more cash on

Fidelity Bank profit rose to N30.4bn in FY’19 ...Proposes dividend of 20kobo per share

idelity Bank Plc has delivered another impressive full year (FY) result, sustaining the sterling financial performance that has been witnessed by the top lender in recent years. The bank’s FY 2019 results released on Monday at the Nigerian Stock Exchange (NSE), showed strong growth across key income and balance-sheet lines. Gross Earnings grew by 14percent to N215.5billion from N189billion in 2018, whilst Profit before tax rose by 21percent to N30.4billion compared with N25.1billion recorded in the previous year. Similarly net profits surged by 24percent from N22.9billion from 2018 in 2018 to N28.4billion in 2019. Buoyed by the performance, the bank plans to pay a dividend of 20 kobo per share translating to N5.8billion compared to the dividend of 11 kobo paid in 2018. In other indices, Net Interest Income increased by 13.2percent to N83.1billion in 2018. Net Operating Income rose by 15.6percent from N97.2billion to N112.3billion whilst Total Assets grew by 22.9percent from

N1.719.9trillion to N2.114trillion in the period under review. Commenting on the results, Fi d e l i t y Ba n k C E O, Nna m d i Okonkwo expressed delight with the performance “We are delighted at the results which clearly showed that we sustained our performance trajectory and continued to increase our market share driven by significant traction in our chosen business segments”, he said. On Digital Banking he said the results were enhanced by new

Nnamdi Okonkwo, CEO, Fidelity Bank www.businessday.ng

initiatives in the retail lending segment and the deepening of the bank’s existing digital products. According to him “We now have 47.4percent of our customers enrolled on the mobile/ internet banking products, 82percent of total transactions now done on digital platforms and 31.1percent of fee-based income now coming from our digital banking business”. He further revealed that the efforts aimed at strengthening the bank’s foothold of the retail market, is yielding significant results with savings deposits rising by 20.7percent to N275.2billion making it the 6th consecutive year of double-digit growth. “Savings deposits now accounts for about 22.5percent of total deposits, an attestation of our increasing market share in the retail segment” stated Okonkwo. Just as was seen w ith deposit growth, there was also a corresponding increase in the bank’s retail assets. Specifically, Retail loans grew by 42.9percent to N53.8billion driven by the bank’s new digital lending products and partnership with Fintechs.

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its balance sheet and is even more robust and diversified thanks to our continuing investments in gas, with its long-term contracts and independence from oil price volatility. We are a low-cost producer and will continue to manage our finances prudently. “With the recent addition of Eland and the availability of new pipelines, our oil business is broadening and derisking its production fields and routes to market to assure even greater security of revenues in the future. In the coming year we will focus our investment only on the highestreturning projects, whilst carefully balancing our future needs with prevailing market realities. “The challenges before us may be significant, but we are confident that the resilience and discipline of our business will help us consolidate our position as Nigeria’s leading independent oil and gas producer,” Avuru stated. Seplat believes that the emergence of the COVID-19 pandemic in the first quarter of 2020 as well as pressure on oil prices in March placed a premium on solid financial management that focuses upon low-cost production, robust cash management, a strong balance sheet and focused investment in high-return projects for sustainable future growth. The business is hedged against

low oil prices and a significant proportion of our revenues now come from gas, which offers further protection from oil price volatility. The Company has low production costs and can remain profitable even at lower oil prices. It has significant cash resources available and will manage its finances prudently in 2020, expecting now to invest just $100 million of capital expenditure ($50 million spent in Q1 2020), with a target of three new wells across our portfolio. Seplat said it will also continue to focus on its investments in gas and the completion of the ANOH project remains a major priority. At present we are targeting 2020 production of between 47-57 kboepd, including Eland production of 6-10 kbopd, subject to continuous evacuation being possible. “Seplat has been tested in previous adverse conditions and we are confident that the stronger and more diverse business we operate today will be even more resilient against these unprecedented market events. The integration of Eland Oil & Gas PLC will position the Group strongly when the market recovers and we are pleased to report that on 17 March 2020, OML 40 produced a record 17 kbopd as recorded by its LACT. We remain optimistic about our long-term growth and success,” the company stated.

Coronavirus: CIS postpones March examination

he last of uncertainty caused by coronavirus may have not been heard as it has forced the Chartered Institute of Stockbrokers (CIS) to postpone its Professional Examination for March 2020 Diet earlier scheduled for end of the month and early April. In a statement signed by the Registrar and Chief Executive, Adedeji Ajadi, the Institute’s Annual General Meeting (AGM) which holds yearly in April and other activities will be decided later. “ Following the spread of the global pandemic, Covid-19 to over 140 countries including Nigeria, and the directives issued by the Federal and State Governments to curtail its spread, it has become necessary for the Chartered Institute of Stockbrokers (CIS) to review its programmes and events. To this end, in the overriding interest of the safety and well-being of all our stakeholders and in support of the proactive measures taken by the Nigerian authorities, “ CIS hereby postpones its Professional Examination for March @Businessdayng

2020 Diet, at all examination centres nationwide, earlier scheduled for March 31 to April 2. Information regarding the 25th Annual General Meeting of the Institute and other events will be communicated as events unfold. “ Meanwhile, we would like to advise our students, members and the general public at large to observe good personal hygiene by washing their hands regularly with soap and water. Cover your nose when sneezing or coughing. Avoid large gatherings and maintain social distancing. We regret any inconveniences this postponement might cause.”, the statement said. Aside from the examination, Institute has also put on hold all trainings as each event will attract more than fifty participants. This is at variance with the government’s directive in a bid to prevent further spread of coronavirus in Nigeria. The Institute is not alone in this tension-soaked atmosphere as other professional bodies are left with no option to postpone their examination.

Thursday 26 March 2020

BUSINESS DAY

Harvard Business Review

ManagementDigest

How to let your employees job craft Becky Frankiewicz

WORK VS. LIFE he way jobs are designed can make the difference between someone finding meaning at work or feeling meaningless. A growing body of research suggests that “job crafting” can be a powerful tool to help employees feel renewed energy and increased control over their work lives. Job crafting is about taking proactive action to redesign what someone does at work, essentially changing tasks, relationships, and perceptions of jobs, making them feel like “their jobs” vs. the company’s jobs. It can help your current and future employees uncover their motives, strengths and — above all — potential. When employees feel that they can personalize their jobs, they have a greater sense of control at work and much needed clarity on where their careers are headed. It’s also a strategy that can increase employees’ productivity to drive better business outcomes. Perhaps job crafting’s best feature is that it’s a way for an employee and employer to have an open dialogue and work together to meet both parties’ needs.

Here are three ways to incorporate job crafting into your organization: — START WITH SCIENCE: Successful job crafting depends on people understanding themselves well enough to craft a role that works for them. This is where data and assessments can come in. Few people truly understand their strengths. Skill assessments can help people understand themselves better. Well-designed assessments can decrease bias

and enable job crafting based on scientifically validated principles rather than gut instincts. They also allow companies to provide their people with personalized insights about their skills and potential. — CRAFT CHALLENGES TO MATCH PEOPLE’S POTENTIAL: Jobs are changing so fast that almost every occupation has the potential to be partly automated — so understanding future potential is more important than what someone’s done in the past.

Job crafting is a way for workers to keep pace with these shifts and experiment with a variety of activities, from taking on new responsibilities, to learning new skills and mentoring others. Offering education and training opportunities is a good starting point, but what’s even better are stretch opportunities, rotational assignments, onthe-job learning, apprenticeships and agile work assignments across various teams and functions to allow employees to apply fresh skills

in new roles. — PRIORITIZE FLEXIBLE WORK — THE NEW BALANCE: When 69% of U.S. companies say they can’t find the skills they need, employers can no longer take a blanket approach to attracting and keeping workers. Offering flexible work hours is key to attracting employees and inspiring them to stay. Focus on productivity by having clear performance metrics and trusting your employees to deliver results, whether they work from a coffee shop at dawn and dusk or at a desk from 9 to 5. Engaged employees are more enthusiastic, energetic and positive, and feel better about their job and workplace. Highly engaged workplaces can claim 41% lower absenteeism and 21% higher profitability. These days we are able to curate anything from playlists to reading lists to wardrobe lists. It’s time to focus more on curating our job choices, so we can develop new skills, take ownership over our responsibilities, unlock our potential and maximize our impact.

Becky Frankiewicz is president of ManpowerGroup North America.

Why leaders need meditation now more than ever Matthias Birk HAPPINESS global pandemic is in full effect. The economy is on the verge of a global recession. Chances are high that you’re feeling overwhelmed, stressed and afraid. That’s normal. When we perceive a threat, the survival part of our brain (mainly the amygdala) kicks in and causes our focus to narrow. This is helpful when we face an immediate threat. But it also means we’re more likely to engage in worst-case scenario thinking or, alternatively, deny the threat; we have less access to the creative and analytical parts of our brain; and we are impaired in our ability to listen and relate to others. Meditation can be of tremendous help during times like this. Practicing meditation has been shown to reduce anxiety, calm the amygdala and increase our ability to think creatively and empathetically. In my work with executives, I’ve observed three practices that help in times of crisis: — MEDITATE FIRST THING IN THE MORNING: If you start the day by checking your email

and news, you’re drawn into reactive mode, often fighting one fire after another. On the contrary, starting the day with a few minutes of meditation can help you center and calm fear-based thoughts. You can use an app such as Insight Timer and sit in bed while listening to a guided meditation, or get up and, after a cup of coffee, sit down and practice a simple mindfulness meditation. Over time you’ll notice that you begin the day

with an openness and awareness for possibilities that you would otherwise not have seen. — START EACH MEETING WITH A FEW MINUTES OF MEDITATION: We’re biased toward action in times like these. Taking a moment at the beginning of a meeting (virtual or in person) to get present, notice your own emotions and start with an increased openness to ideas can help teams be more thoughtful about problem solv-

ing. Some people might find this too “touchy-feely,” so to start, tell your team you need them fully present and focused. Then suggest an experiment: Ask them to focus on their breath for one minute. When they get distracted, suggest they simply return their attention to the breath. Most first-timers are surprised at just how distracted they are and how hard it was to stay present for one minute. Most of them will also feel that

they are more calm and present after doing this. — STEP BACK WHEN YOU GET CAUGHT IN UNPRODUCTIVE THOUGHT PATTERNS: When you feel anxious throughout the day, take a moment to breathe and observe your thoughts. Chances are you’ve gone down a rabbit hole of thinking through future scenarios. While planning is critical, it’s important to do it with presence and a calm state of mind, examining actual facts. Sit in your chair, close your eyes and focus on the movement of your belly, breathing in and out. After a while you’ll notice your thoughts calm down, and you’ll feel more present and alive. Meditation allows us to step out of survival-centric thinking and connect with others empathetically. People inside and outside your organization are in distress right now. This is an opportunity to show compassion and care, to show your team and organization who you are as a leader.

Matthias Birk has taught meditation and leadership to executives at business schools and companies.

Thursday 26 March 2020

Retail &

BUSINESS DAY

consumer business Luxury

Malls

Companies

Deals

Spending Trends

CONSUMER SPENDING

Coronavirus ravages entertainment industry as Silverbird Galleria shuts down BALA AUGIE

he coronavirus shutdowns is laying waste to the high street, with Silverbird Cinemas announcing it was shutting its gallery and mall so as to protect staff and the general public. Retailers are shuttering storefront locations to the public across the country as government has closed schools and asked workers to stay at home. Banks and some companies have asked staff to work from home while rail operations have been suspended. Nigeria has recorded 42 cases of COVID-19 with 1 death and 2 two recoveries, but if the country continues to record 3 cases a day then it could be heading for an economic quagmire. “At Silverbird Cinemas, we are committed to providing a safe and healthy environment for our staff and customers,” said Guy Murray-Bruce. “Based on the Directives issued by Federal and State Governments, we have therefore made the difficult decision to close our Cinemas in

Nigeria until further notice,” said Bruce. Bruce said the company deeply value our cinemaloving customers and have no doubt they will be serving everyone again as possible with a full slate of Hollywood and Nollywood blockbusters. “Our thoughts go out to the people who have been affected and we appreciate the healthcare workers and those at the frontline working to contain the virus, keeping us safe,” said Bruce.

The closure of the largest and oldest cinema in Africa’s largest economy will led to loss of revenue because the country’s fast growing young population go to the movie house a lot, and forcing them to sit at home is inimical to the industry. According to the Cinema Exhibitors Association of Nigeria (CEAN), Nigerians spent almost N7 billion to watch films in the cinemas in 2019. Some Quick Service Res-

taurants (QSR) in Nigeria have suspended dine-in table service and replaced this with take-out options as the country continues to record new cases of the novel coronavirus. These measures are designed to stop spread of the virus. BusinessDay survey of Chicken Republic, The Place and Mega Chicken in Lagos showed that the restaurants were offering take-outs instead of their usual dinning services. While retailers, fitness cen-

tres, and movie houses are closing their stutters, on-line shopping is thriving as people now place orders from home. Experts have tasked retailers’ especially fast food restaurant to take advantage of the on line medium to sell their products. BusinessDay investigation gathered that some customers now use their mobile phones to order for goods via Wassap and Istagram platforms, but some of them prefer to go to the stores themselves and pick items for fear of coming close contact with the delivery man. The novel coronavirus virus that started in the Whang city of China has killed 17,235 people while it has infected 274,829. Italy has been most hard hit as it recorded 6,077 death, 63,927 cases have been reported as of Tuesday. The coronavirus continues to hurt economies across the continent as investors have been dumping equities with alacrity on the back of uncertainties since crude oil demand has dipped significantly. The S&P 500 tanked nearly 15% last week alone, pushing the benchmark 32% below its all-time high reached on

Feb.19. Analysts and economists say a global recession is inevitable, and that the downturn will be worse than the financial crises of 2008/2009, European debt crisis, and the recession of 1944. The Nigeria’s reacted to the bang of the virus as stocks have been beaten down, but the central bank has intensified on stimulus measures to help small business weather the storm. While central bankers across the globe have embarked on aggressive asset purchased and cut rates to zero, their Nigerian counterpart will use N3.5 trillion to mitigate the effect of the coronavirus on the economy. The virus will affect companies depending on how long it takes. Manufacturers of cars and electronics will be the hardest hit a lot of people are buying food at the moment, according to Johnson Chukwu, managing director and CEO of Cowry Asset Management Limited. “Businesses already in difficulty will suffer more while the ones with stronger balance sheet will weather the storm,” said Chukwu.

Consumer spending

Retailers leverage on technology to boost sales amid coronavirus pandemics BUNMI BAILEY

he decision by government and some companies shut down businesses across the country so as to protect workers from the deadly coronavirus is a blessing in disguise for retailers as they now have the leg room to leverage technology to bolster sales. Bu s i n e s s Day c h e c k s shows consumers, who can no longer go shopping at brick and mortal shops because of the virus, now use social media platforms like Wassap and Instagram to order for food and groceries item that are delivered to at their door steps. The impact of the pandemic is significantly disrupting business activities

and consumer behaviour. The panic from the virus has propelled people to avoid large crowds and maintain social distancing. “This is the best time for retailers to utilize this opportunity by harnessing technology to develop the right strategy to transforms sales and still remain relevant in this trying time,” Elijah Bello, a tech expert said. Nigeria is by far the biggest African market with population size of about 200 million, of which 60 percent are youthful persons. Given these favourable demographics, e-commerce is fast gaining popularity with the increasing number of people who are gaining internet access and are becoming IT literate, and the number of mobile phones www.businessday.ng

has surpassed the population of the country. According to a report released by Jumia, Africa’s online retailer, Nigeria has the largest mobile market in Africa with over 172 million mobile subscribers in 2018, accounting to a penetration rate of 87 percent of its population and represented a 6.4 percent growth increase, compared to 162 million subscribers in 2017. Also, from Jumia, at end of 2018, there were over 36 million smartphone users, representing a penetration of 18.37 percent year-on-year. The availability of lower-price point phones remains the major driver of smartphone penetration. But despite these tailwinds, e- commerce is still faced with challenges including lack of trust in online

retailers, lack of adequate technological infrastructure and fear of inadequate online security of their data when making payments. Ayorinde Akinloye, a consumer analyst at CSL Stockbrokers said, “Grocery stores will become a frequent place for most consumers because they provide essential commodities needed daily. And this is the right time for them to take consumers online.” Prince Ebeano, a popular retail store has already set up a WhatsApp platform to allow their customers make orders online and get it delivered wherever they want. Also Quick Service Restaurant like Sweet Sensation is developing an App to allow customers have easy access to their menus. Cheng Fuller, a retail con-

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sultant, says Nigerian retailers should focus on the “Click and Collect Model”, a new delivery method that combines online shopping with real-life transactions. “A lot of e-commerce retailers are now testing this model, where customers can make a purchase online and choose to collect their purchase at a pre-chosen location, rather than have it delivered to their home. It offers customers full control over the delivery of their products with e-commerce players providing different options for collection fulfilment,” Fuller further said. A further research of the model showed that it eliminates unprofessional delivery services and comes with zero or minimal added delivery costs. The customer is also able to check the quality of @Businessdayng

the product and return it to the store in case of any problem or if the product does not meet the required standards. Globally, housebound consumers are turning to online groceries for their daily food supply. According to Chinese online retailer JD.com, China’s online grocery sales grew 215 percent year over year to 15,000 tons during a 10-day period between late January and early February. Also due to concerns of food contaminations during deliveries, innovations have been spurred in contactless pickup and delivery services. Companies like McDonald’s and Starbucks are increasing delivery services that limit human-to-human contact, and orders are packaged to keep them free of contamination.

Thursday 26 March 2020

BUSINESS DAY

Retail &

consumer business COMPANY

WAMPCO ignites competition, acquires PZ’s Nutricima to ramp up production volume OLUFIKAYO OWOEYE

he Nigerian dairy industry has potential for growth which has not been realized. With an estimated population of 180 million, consuming about 1.3 billion tons of milk annually, this provides an opportunity for locally produced milk and diary products considering that about 60percent of diary products consumed are imported. The recent announcement by PZ Cussons on the planned sale of its Nigerian dairy segment, Nutricima, to FrieslandCampina WAMCO Nigeria Plc, would change the market dynamics in the milk industry. With this announcement, it brings to an end PZ Cussons foray into the diary market entered in 2005 through a joint venture with Glanbia Plc with an immediate goal to supply evaporated milk and milk powder in Nigeria. This joint venture was however short-lived as PZ Cussons in 3015 bought Glanbia’s 50 percent stake in Nutricima, for £21 million in cash, giving PZ Cussons full ownership and control. Even though the partner-

ship achieved few results such as the construction of a second facility for the manufacture of UHT products which was opened in 2009, Nutricima has also developed market leading consumer brands including Nunu, Olympic and Yo. Sadly this has not impacted positively to bottomline of PZ Cussons. It is however not surprising that the consumer goods company which recently celebrated its 120years in Nigeria decided to spinoff the unprofitable business due to intense competition in the milk industry. In its profit warning issued in March 2018, the makers of Joy soap and morning fresh detergent noted that significant cost inflation in Nigeria kept discretionary income under pressure subduing milk sales in the country, hitting prices and margins. “As a result the usual peak season has not occurred to the expected level with inventory levels in the trade remaining very high leading to intense competition, most noticeable in the milk category, which in return is resulting in lower volumes,prices and margins” the company said. The Nigerian milk Indus is not new to rivalry and over the

years, major players in that segment have made various value propositions for their brands, through campaigns and innovations in the bid to gain a market edge. While some brands have survived this battle of the fittest, others, especially the reigning ones in the 70s have bitten the dust. Over time, the milk segment has witnessed an increase in the influx of different brands (foreign and local) jostling for a prime place in the consumer’s heart.

Since its Nigeria’s emergence from economic contraction in the second quarter in 2017, the purchasing power of consumers in the country have continued to plummet, largely due to double-digit inflation rate, worsened by sluggish economic growth. The February inflation rate figures released by the Bureau of Statistics stood at 2.2percent, while GDP figures for the fourth quarter 2019 was 2.55percent. This has forced consum-

ers to adopt affordability as the key factor in consumption decisions, rather than brand names. In recent times, the battle for market share in the milk segment has assumed a new dimension, as new smaller brands riding on the back of smaller packs in sachets and cheaper brands are challenging the big players for market share. The key weapon in this ‘war’ is affordability. Major diary brands in Nigeria have also double down on their backward in-

tegration program following the apex bank’s restriction for foreign exchange to players who have made significant move in their locally sourced raw materials. The increase activity in the segment has essentially been triggered by increasing demand for safe and affordable milk and dairy products in Nigeria, occasioned by improving living standards and growing enlightenment about the nutritional benefits of milk and dairy products to humans’ physical and mental wellbeing and growth. Notable brands includes Peak milk, a product from the stables of FrieslandCampina WAMCO, Promasidor’s Loya and Cowbell milk, the first to challenge Peak’s dominance with the introduction of powdered milk in smaller sachets; Dano milk produced by Arla Foods, an international cooperative based in Århus, Denmark. The acquisition by WAMPCO is expected to ramp up its production volume leveraging existing facilities of Nutricima. This move could prompt more mergers and acquisition in the diary industry as big players would be ready to cash in on smaller brands who are still struggling to find their feet in the market.

company

Restaurants in Nigeria suspends dine-in, offer take-out services BUNMI BAILEY

ome Quick Service Restaurants (QSR) in Nigeria have suspended dine-in table service and replaced this with take-out options as the country continues to record new cases of the novel coronavirus. These measures are designed to stop spread of the virus. BusinessDay survey of Chicken Republic, The Place and Mega Chicken in Lagos showed that the restaurants were offering take-outs instead of their usual dinning

services. According to them, they are abiding by the Lagos state directive of not more than 20 people in any public gathering. “We can only allow customers to eat in the restaurants if they are less than 20 but if we have more than that number, we offer take away services instead. And this goes in all the other branches that we have,” Tinu Adejoke, a manager at Mega Chicken, Lekki said to Businessday on phone. Usually, restaurants are known to have large gathering of people since it pro-

vides essential food services. Last weekend, the Lagos State Government an-

nounced that the number of people allowed at any public gathering should not be

more than 20, nullifying the previous limit of 50 people allowed to gather in public, including in churches and mosques. The government is pushing for social distancing more than ever to help contain the spread of the virus. “Since the COVID-19 outbreak, we have been advising our customers not to eat in the restaurants to prevent the spread of the virus. For now, offering take-outs is the best we can do,” an official at The place restaurant said. Some countries are on total lockdown and restaurants have either been shut down or resorted to take-out or deliv-

Team Lead: Bala Augie, Olufikayo Owoeye; Analyst: Bunmi Bailey; Graphics: Fifen Eyemisanre Famous www.businessday.ng

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@Businessdayng

ery service due to the coronavirus pandemic. For example, Vancouver, a city in Canada has placed an order to ban dine-in service at restaurants, Colorado, a U.S State closed dine-in services, only permitting take-outs and deliveries and California reduced their restaurants occupancies by about half and space tables at least 6 feet apart. As of yesterday, Nigeria has confirmed 36 new cases of the coronavirus. Currently, Lagos has 25 cases, Abuja has six, Ogun has two, while Ekiti, Oyo and Edo have one. One death has been confirmed so far.

Thursday 26 March 2020

BUSINESS DAY

ENERGYREPORT Oil & Gas

Power

Renewables

Environment

Oil majors are preparing for price below $20 ...as Nigeria’s 1.5bn oil reserve projects suffer delay olusola Bello

he wave of oil industry spending cuts continues, with the majors n ow a n n o u n cing significant reductions to spending as oil remains stuck in the $20s. Royal Dutch Shell said on Monday that it would cut spending by 20 percent, or about $5 billion, and also suspend its share buyback plan. French oil giant Total SA and Norway’s Equinor announced similar moves. ExxonMobil and Chevron have suggested they too would be axing their budgets, with Exxon under particular pressure. These cuts will definitely affect the projects already scheduled for takeoff in Nigeria. It could delay the start ups for the deepwater projects such as Bonga Southwest Aparo, operated by Shell, and Preowei, operated by Total, by two years to 2027 and 2025 respectively, and for ExxonMobil’s Owowo by four years to 2029. Total said Preowei is under study with a final investment decision scheduled for 2020 or a year later. Together,

the deepwater fields hold an estimated 1.5 billion barrels of oil, and could add 300,000 bpd of oil. However Seplat petroleum Development Company plc, a leading Nigerian independent oil and gas company says it will remain very profitable even at lower oil prices given its low production costs and strong investments in gas. The Chief Executive Officer of the company, Austin Avuru, said this to the investment community and analysts upon the release of

Seplat’s audited results for the financial year ended 31 December 2019 on Monday. Avuru said: “As we enter a challenging phase for the global economy, Seplat will benefit from being a resilient company built on the solid foundations of prudent financial management and the careful mitigation of risk. We have previously been tested by crisis. “We successfully navigated the twin challenges of the 2014/2015 oil price shock, which was immediately fol-

Shell acts to reinforce business resilience and financial strength despite COVID-19 Olusola Bello

oyal Dutch Shell says as the COVID-19 virus spreads across the world seriously impacting people’s health, it way of life and global markets – it is however putting the safety and health of it workers people and customers first, along with the safe operations of all its businesses. The global oil giant stated further that at the same time, it is taking decisive action to reinforce the financial strength and resilience of its business so that becomes well-positioned for the eventual economic recovery. “As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business,” said Ben van Beurden, Chief Executive Officer of Royal Dutch Shell. He said: “The combination of steeply falling oil demand Olusola Bello, Team lead,

and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past.” Stating that in these very tough conditions, he was very proud of the staff and contractors of the company across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and the company’s customers. He said order to deliver sustainable cash flow generation, Shell is actively managing all its operational and financial levers – from focusing on maintaining safe and reliable operations each day to reducing capital spend and operating expenses. He said:”Today, we are announcing that we have embarked on a series of operational and financial initiatives that are expected to result in: • reduction of underlying operating costs by $3-4 billion per annum over the

Graphics: Joel Samson.

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essentials, there is no demand boost from low prices”, Goldman Sachs stated. Exxon has also cut 1,800 contractors from the site. The first round of spending cuts from the oil industry is now visible, but a second round is beginning, according to a report from Goldman Sachs. Rystad Energy put out a similar estimate on Monday. E&Ps are likely to cut project sanctioning by up to $131 billion, or about 68% year-onyear, according to the Oslobased firm. “Upstream players will have to take a close look at their cost levels and investment plans to counter the financial impact of lower prices and demand. Companies have already started reducing their annual capital spending for 2020,” says Audun Martinsen, Rystad Energy’s Head of Energy Service Research. It’s anybody’s guess how low WTI and Brent go. But more than a few analysts have pointed to the potential for storage to max out as a reason why prices have more room to fall. “[N]o one can exactly be sure that production will be shut-in fast enough to not overwhelm our ability to store oil,” JBC Energy said in a note.

NCDMB institutes $50M R&D intervention fund, flags off Roadshow Olusola Bello

next 12 months compared to 2019 levels; • reduction of cash capital expenditure to $20 billion or below for 2020 from a planned level of around $25 billion; and • material reductions in working capital”. “Together, these initiatives are expected to contribute $8 - 9 billion of free cash flow on a pre-tax basis. Shell is still committed to its divestment programme of more than $10 billion of assets in 2019-20 but timing depends on market conditions”. The Board of Royal Dutch Shell has decided not to continue with the next tranche of the share buyback programme following the completion of the current share buyback tranche. It will continue to review the dynamically evolving business environment and are prepared to take further strategic decisions and consider changes to the overall financial framework as necessary.

lowed by the 16-month Trans Forcados shut-in, which drastically reduced our liquids production. “Thanks to our flexibility in managing cash flows we emerged a stronger and better-funded company, ready to take advantage of new opportunities. Compared to those difficult periods, today’s Seplat has more cash on its balance sheet and is even more robust and diversified thanks to our continuing investments in gas, with its long-term contracts and

independence from oil price volatility. We are a low-cost producer and will continue to manage our finances prudently”. Goldman Sachs estimates that Chevron needs $50 per barrel in order to cover spending and its dividend. ExxonMobil, on the other hand, needs something like $70. The majors are relatively more insulated from the downturn than small and medium-sized shale drillers because they have downstream refining and petrochemical assets that have typically performed somewhat better than upstream units when prices fall. Refineries, for instance, spend less on oil during the downturn, and low prices also translate into a boost in sales of refined products. “But the majors do not have that cushion this time around. We are in the midst of a historic meltdown – a supply crisis and a demand event with no precedent. Estimates vary, but oil consumption could be off by 10 million barrels per day (mb/d), or more. It doesn’t matter how cheap crude is, if people are not driving, flying or consuming anything aside from the bare

he Executive Secretary of the Nigeria Content Development and Monitoring Board, (NCDMB) Simbi Wabote has stressed the Board’s commitment to change the narrative in research and development activities in the oil and gas industry with the implementation of the R&D Framework and the hosting of an R&D Fair and Conference to engender stakeholders’ participation. Simbi Wabote made the statement during the flagged off the NCDMB Research and Development, Fair and Conference Roadshow before the Hon. Minister of State for Petroleum Resources, Timipre Sylva in Abuja. The Executive Secretary who enumerated the achievements of the maiden edition of the R & D Fair in 2017, explained that the Board intends to develop an R&D specialized centre in Yenagoa with a model to convert ideas to products. He also dropped the hint that the Board is pro-

viding leadership in its drive for research development by launching a $50million R&D intervention fund to enhance the role of R&D in developing local content and for other stakeholders to contribute to the fund as most countries who have invested in R&D are optimal in their GDP. In his response, the Minister of State for Petroleum Resources, Timipre Sylva commended the Board for the R&D initiative which according to him, is a good start and promised to be at the Fair and Conference to declare it open and carry out any other function that may be required of him. The Minister stated that R&D is a major pathway to job creation and the transformation of the nation from a resource-based to a knowledge-based economy. He, however, regretted the non-responsiveness of the industry and the academia to research development and urged the industry to engage in R&D as the country is striving to move from an oil-based to a knowledge based homegrown technology after over five decades of oil production.

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Sylva charged the industry to collaborate more with the academia to bring about home grown solutions to the nation’s problems. He further mentioned that the issue of climate change is a problem of carbon emission, not necessarily transition to renewables, hence, the industry should research into how it can reduce the carbon emission from oil exploration activities as the nation has far too long allowed other climes to dictate the narrative for us. In a related development, the Group Managing Director of the Nigerian National Petroleum Corporation, (NNPC), Mele Kolo Kyarihas pledged NNPC’s resolve to partner with relevant government agencies and NCDMB on its steering committee to make decisions that will jointly support innovations in the oil and gas industry that will be beneficial to the nation. Kyari made this known at the NCDMB Research and Development, Fair and Conference Roadshowvisit to him by the Executive Secretary of the Board, Simbi Wabote.

Thursday 26 March 2020

BUSINESS DAY

BUSINESS TRAVEL COVID-19: How FG can help domestic airlines stay afloat IFEOMA OKEKE

like they did the last time Olumide Ohunayo, an aviation analyst, hinted that the Russians, USA, Canada, Britain and some other countries have come up with one measure of support or another for the airlines, adding that Nigeria will not be at default if it looks at options of supporting the aviation industry to kick back the economy after the coronavirus crisis. “There are so many options before the government in helping support the airline. It is either they give direct financial incentives to the aviation industry or they give loans to organisations to get back up again. “Another option could be approving corporate bonds through the Central Bank of Nigeria, (CBN), tax waivers could also help and waiving some charges to ensure airlines get back on their feet. What we have before us is not a matter of liquidation but insolvency and disappearance of organisations. These options are what we should take to save the airlines,” Ohunayo added. For John Ojikutu, aviation security consultant and Secretary General of the Aviation Safety Round Table Initiative (ASRTI), as the government and the international airlines are closing shops into the international airports, government can support the domestic airlines by giving them free service charges to some airports that can be classified as category D. Ojikutu also suggested that federal government should reduce the service charges of others classified as categories A, B and C by 25 percent, 50 percent and 75 percent respectively on landing, parking and navigational changes depending on the annual passengers and air traffic. Justifications for FG and CBN’s support In March 16, 2020, the CBN issued a statement acknowledging the adverse impact of the virus on the global and Nigerian economies and announced a moratorium of one year on all principal www.businessday.ng

repayments of intervention loans effective March 1, 2020; reduced interest rates from 9 to 5 percent per annum for one year; and created a N50 billion targeted credit facility to cushion the impact of the virus on businesses. Experts in the aviation industry has commended the move by the CBN and are suggesting that other aviation agencies should take a cue from the CBN and look for ways to help airlines cushion effect of the situation. Olumide Ohunayo, told BusinessDay that in the past the industry have been plagued with one crisis or the other ranging from the September 11 attack, SARS outbreak, the financial crisis and now, the coronavirus. Ohunayo hinted that for now, the airline looks like the most hit of all but in the long run, Nigeria will find out that economy is worse-of. “However for the government to restore the economy, we will be competing with other sectors for government support and subvention. Although it is a health problem but it is hitting the airlines. “The fact that the airlines ensure connectivity, ensures the economy moves, brings in passen-

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We wish to state categorically that any passenger who fails to cooperate will be declined boarding on any of our flights

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u l t i p l e f l ig ht s have been cancelled or temporarily suspended across Nigeria as airlines struggle to cope with falling demand following the spread of coronavirus. No doubt, airlines are the worse hit during this period as passengers’ restrictions has made several airlines across the world close shop indefinitely. With 15 million estimated passengers who travel through the Nigerian airports annually, the loses for Nigerian airlines may be in millions of dollars pending when the crisis is over. For instance, before the ban on international flights into Murtala Muhammed International Airport (MMIA), Lagos and Nnamdi Azikiwe International Airport Abuja, Air Peace, the largest Nigerian carrier downsized its operations and Arik Air announced the temporary suspension of flights to all its West Coast destinations in response to the adverse effects of the pandemic, Coronavirus. However, with the ban on all international flights into the country on Monday, Air Peace has had to suspend all of its international routes and operations which include Dakar-Senegal, MonroviaLiberia, Freetown-Sierra Leone, Banjul-Gambia, Ghana-Accra and Sharjah-Dubai routes. The Nigeria Civil Aviation Authority, (NCAA), stated that the closure of international flight operations at the Lagos and Abuja airports is in addition to the three other international airports in Kano, Enugu and Port Harcourt shut for flight operations on Saturday. According to the statement, the closure would last till April 23, but the Lagos and Abuja airports will be opened to emergency and essential flights within the period. While the closure lasts, the airline will be forced to park over half of its fleet, while it will be required to pay for costs accumulated on its leased aircraft, payment of allowances for crew, parking fees and maintenance fees without making any return on the aircraft while on ground. Experts have therefore said if the airlines are not in any way supported by way of tax evasions, interest free loans and evasion of charges, many airlines may go under after the epidemic. Supporting airlines to stay afloat Ikechi Uko, a travel expert and consultant, told BusinessDay what government can do to support airlines during this crisis and after the crisis are to waive all government taxes and charges as contribution savings to running cost. Uko said this way, no fake airline will collect cash subvention

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gers and the passengers come in with cargoes that are used to build the economy and bring in tourists and investors that supply dollars that are used in the industry, there is a need to prioritise the aviation industry as part of the beneficiaries for whatever palliatives that will be chosen by the federal government,” he explained. He however noted that whatever measures that will be taken must be done proportionately using each airline’s size of fleet, size of operations and schedule to see how the crisis affects individual schedules and operations. “This should be the basis of appropriating any kind of support to the airlines,” Ohunayo said. Ikechi Uko said the justification for the intervention fund by CBN for the airlines is that without mobility, the nation will grind to a halt but it is in everyone interest that the wheels keep rolling as the nation combats the pandemic. Airline operators suggests palliative measures Nogie Meggison, chairman of Airline Operators of Nigeria, (AON) has suggested that the agencies should help the airlines by immediately streamlining the over 32 multiple charges given to airlines which are mostly double billing. Meggison said the government should also bear 100 percent cost of disinfecting all aircraft for this period and provide thermal scanners and hand sanitizers as well as mobilize more manpower and training of Port Health Personnel at our local airports to encourage more people to travel. “What we are asking for is not unprecedented. For instance, in the United Stated of America, airlines are seeking a $50 billion bailout. As part of its response, an Emergency Stimulus Package was passed by the US Senate and House and they reduced interest rates to 0.25 percent. Also, the bill granted their airlines tax credit for their losses during the Pandemic. “Our government can do the @Businessdayng

same therefore by granting the above stated reliefs to Nigerian airlines as a way of assisting them during this very difficult time to recover from their losses,” he said. Air Peace deploys measures to protect passengers Since the outbreak of Coronavirus, Air Peace, has put in measures for protecting its numerous passengers and staff against the spread of Coronavirus. On Friday last week, a Nigerian passenger who was billed to travel from Lagos to Asaba on Air Peace flight on Friday was stopped and isolated by the airline’s Coronavirus screening team when they discovered that he was very sick. Informed source close to the airline disclosed that the passenger was supposed to travel on Monday but deferred his flight to Friday probably because he was too sick to travel. Air Peace had earlier deployed personnel at every airport it operates to check passengers’ temperature and subject them to hand sanitization and anyone with high temperature was referred to Port Health. It was when the temperature of this passenger was being checked that the airline personnel discovered that he was very sick and the temperature was very high. The airline isolated him immediately and notified the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN) and the Port Health. Godfrey Ogbogu, the airline’s Safety Manager, stated that all passengers of Air Peace are being subjected to a thorough hand sanitisation at the boarding gate, adding that the airline introduced temperature checking for all passengers before boarding. He revealed that any passenger whose temperature reads above 38 degrees, will not be allowed to board while a refund will be issued. According to him: “We wish to state categorically that any passenger who fails to cooperate will be declined boarding on any of our flights”. Assuring the passengers that these exercises will be seamlessly carried out, Ogbogu hinted that the passengers will not be inconvenienced in any way. The Captain enjoined all passengers to cooperate with the airline to this end, as the World Health Organisation, (WHO) has declared COVID-19 a pandemic. He disclosed that the airline’s aircraft is extensively sanitized before flying each day. Ogbogu said Air Peace is cooperating with the Federal Government in fighting the incidence of the pandemic. “We use this opportunity to thank all our customers for making us their airline of choice; the safety of our passengers and workforce is our priority, and this we shall pursue vigorously,’’ he asserted.

Thursday 26 March 2020

BUSINESS DAY

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

Desired change for gender equality in Nigeria’s legal industry is already happening – Nta Ekpiken n this interview with LEGAL BUSINESS, TNP Partner in charge of Intellectual Property, NTA EKPIKEN speaks to editor, THEODORA KIO-LAWSON about trends in Intellectual Property (IP) Law, IP rights, leading as a woman, path to partnership in a global law firm, among other topical issues. EXCERPTS...

ou’ve only recently joined the partnership at TNP, please tell us about this move. I have always been eager to build an IP practice and TNP gave me that opportunity. My partners have been absolutely supportive, and the move could not have come at a better time. I am super excited about what the future holds.

I can only speak for my Firm and can confirm that we do not have a diversity or inclusion issue. We do no promote on the basis of gender and I am not aware that decisions on promotion and opportunities have been offered in a discriminatory manner. What sort of culture shift is required to bring about the desired change in Nigeria’s legal industry? I am of the opinion that the desired change of gender equality in the Nigerian legal industry is happening already. We as women have to continue to gain expertise, aim/set goals to be the best and give no excuses in achieving these objectives.

As Partner in charge of the firm’s Intellectual property practice, where do you see this practice in five years and how do you think its growth could directly or indirectly contribute the development of the IP Practice in Nigeria? Based on global trend, one thing is clear, IP is the future. I see TNP contributing immensely to the growth of IP through enlightenment campaigns for our clients, capacity building for our regulators, prosecution/ registration of Intellectual Property Rights (IPR), infringement/passing off suits, IP valuation and effective IP portfolio management that is driven by technology.

Are women doing enough to take advantage of capacity building and professional development opportunities around them? I am not oblivious of the fact that we are in Africa and culture is an integral part of us. As such, I think that there may still be instances where women may be restrained from exploring opportunities. Nonetheless, women have to consciously work towards garnering the requisite experience and qualification they need to achieve their goals.

As a woman, are you equipped for the task ahead? The task ahead is not gender sensitive and I am certainly equipped for it. TNP is the Firm of the future, forward thinking and innovative people. Technology is a driving force of our generation and I have been equipped with cutting-edge technology that will ensure that the service that my team delivers is done effectively and optimally. March 8th was International Women’s Day (IWD) and the 2020 theme was “Each for Equal”. Do you think this is a concept well understood and welcome in the legal profession? Personally, I have not experienced discrimination on the basis of gender in my firm or my previous employment. The issue of equality rarely comes up in my experience where the female is equally qualified for the role. In my Firm, we have two (2) female Partners and the issue of gender has not been the basis for promotion within the Firm and in my case, admission to Partnership. In your opinion, what are some obvious barriers on the path to partnership for women in Law and how can this be surmounted?

COVID19, Force Majeure INSIDE and the Doctrine of Frustration

I have never witnessed any such barriers. As such, I do not subscribe to this stereotype that there are specific barriers to women making partner in law firms. For me, the boys scout motto ‘be prepared’, best answers this question. Preparation here is a mix of qualification and experience. Regardless of gender, the need for work – family life balance cannot be over emphasized. TNP is a family-oriented firm and continuously devises means to help team members achieve that balance. You’ve worked with a number of top tier law firms in Nigeria. From experience, do you think adequate opportunity for growth and leadership is given to young women in law firms? What are best practices

NBA-SBL, CAC deepen partnership to improve ease of doing business

globally? I can obviously not speak for all top tier law firms in Nigeria, but I have been fortunate to witness, and I am a product of the opportunities given to women. While there is still room for improvement, one thing is clear, these opportunities exist. Globally, trainings, secondments and mentorship opportunities are available to women. TNP is not lagging in this as we in particular actively provide the platform and tools for women to grow in their chosen fields. We also constantly encourage all team members to have mentors within and/or outside our Firm in their chosen fields to guide them. How can we ensure that diversity and inclusion is made a core part of a law firm’s values? Particularly in these climes.

OAL announces alliance with capstone legal

What are some of the best ways to support younger female lawyers into leadership roles in the legal profession? Providing mentorships platforms, holding regular workshops from time to time for capacity development, encouraging them to also develop capacity and getting them to be actively involved in the NBA.

Nta Ekpiken is a Partner at TNP. She is an alumni of the United States (US) International Visitors Leadership Program (IVLP) and an Associate Fellow of the Nigeria Leadership Initiative (NLI). Also an alumnus of Swansea University, Wales, United Kingdom, Nta has wealth of experience in the legal framework for the protection of intellectual property rights, brand protection, anti-counterfeiting, copyrights, image rights, licensing & franchising, technology transfer and product registration. She is involved with many campaigns/ advocacy initiatives including a committee working on the review of the IP laws in Nigeria, the United States Consulate – AntiCounterfeiting Collaboration (ACC) fight against fake malaria drugs campaign.

Global Gas and Refinery Limited V. SPDC - Is Lagos Pro or Anti-Arbitration?

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Thursday 26 March 2020

BUSINESS DAY

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COVID19, Force Majeure and the Doctrine of Frustration …Legal Ramifications of a Global Pandemic on the Sports and Entertainment Industry

nless you have been living under a rock you will know by now that the most significant incident to impact the world in the last four months has been the outbreak of COVID19 popularly known as the novel coronavirus. The outbreak has reinforced the need for appropriate legal and risk management measures and systems across business industries. The virus which has now spread to 146 countries and counting first emerged in Wuhan, Mainland China; was classified as a global pandemic by the World Health Organisation. It has caused a global disruption of mobility and wreaked havoc on the lives of billions around the world. The threat the novel coronavirus presents to various industries and business sectors has been numerous and far reaching; from significant disruptions to essential services in banking and finance to disruption to major fixtures in the international sporting calendar from the F1 Australian Grand Prix, cancellation and postponement of a number of high profile sporting conferences and tournaments including the much awaited Edo Sports Festival 2020, World Football Summit Africa 2020 and a host of others. Over 110 showpiece sporting events across Europe and Asia stand cancelled or postponed due to the COVID-19 outbreak: affecting over 2,000 highly anticipated match-ups across various sports like football, NBA, Eurobasketball, Mixed Martial Arts, Golf, Tennis, Formula One and so on. The progression or otherwise of the virus in the coming days will determine whether the Olympics event scheduled to take place this summer would go on as planned. The world of Esports has also seen its fair share of cancellation and postponement of events: The Software Association’s 2020 E3 Video Game Convention and the annual Games Developers Conference have been cancelled due to Covid-19. Famous sporting personalities have also been infected by the virus. Danielle Rugani and Blaise Matuidi of Juventus, Rudy Gobert of Utah Jazz, Ezequiel Garay and five other football players in the Valencia CF roster to mention a few. The virus has also claimed the life of Francisco Garcia, a Spanish Football coach after a pre-existing health condition was exacerbated by the infection- The only casualty in the sporting world as of today. The entertainment industry has also felt the sting of the virus as thousands of entertainment events have been called off: Music concerts, tours and award shows like the GidiFest scheduled for this April in Lagos, Tribeca Film Festival, Billboard Music Awards, Glastonbury Music Festival, Coachella, Stormzy’s ‘Heavy is the Head’ album tour, The Kids Choice Awards amongst others.

Beverley Agbakoba-Onyejianya

Movie productions and Premieres of highly anticipated movies have also been put on hold; theme Parks and Amusement parks are fast shutting down in China, Korea and other hard-hit countries. Top celebrities like Tom Hanks, Rita Wilson and Idris Elba have also been tested positive for the virus. Beneath this mess of cancellations and postponements are complex commercial and sentimental interests arising out of various entertainment and sports contracts. Performance of contracts has become nearimpossible as at when due. To be specific, fans who bought tickets as well as incurred travel and accommodation expenses with respect to a certain concert or movie premiere will definitely be affected by its cancellation or rescheduling. Sporting clubs could be potentially be held liable for breaching their contracts with Season ticket holders who would be denied the spectacle paid for in the event of a cancellation, postponement or a decision to play matches behind closed doors. Suffice it to say most businesses around the world big or small will by now be affected in some way by the novel coronavirus and that being said it is still not too late for business owners , leaders, etc to take steps to mitigate the impact or prepare to insulate itself from shocks at best. There will be legal ramifications and risks arising from the pandemic which all individuals and businesses will now have to seriously consider. It is highly probable that there will be fall outs and unfortunate contractual disputes as a consequence of the health crisis the world is currently facing: Non-performance being a major fall out, as the ability to perform contracts will be severely affected and tested in the next few months considering the stringent regulatory policies now in place. These include widespread lock downs which has curtailed mobility whether domestically or internationally as well as the practice of www.businessday.ng

social distancing to flatten the curve and reduce the transmission rate. As we will come to find out; the inclusion or otherwise of a Force Majeure Clause in sports and entertainment contracts could prove instrumental in periods like this. So the question is what exactly is a force majeure? And what events will give rise to a force majeure or vis major as it is also known? Doctrine of Force Majeure The doctrine of Force Majeure takes root in English common law and applies to situations where an external event or occurrence outside reasonable control prevents parties or a party from performance of obligations under a contract. It is expressly provided for as a term of the contract between parties and usually lists out a number of acts, the occurrence of which would constitute a force majeure with respect to the contract. In the reported Nigerian case of Diamond Bank Ltd V Ugochukwu, the court held that for a Force Majeure to occur there must be an event which significantly changes the nature of the contractual rights of the parties that it would be unjust to expect the parties to perform those rights such as; Where the subject matter of the contract has been destroyed, or is no longer available. Death or incapacity of a party to a contract The contract has become illegal to perform as a result of new legislation. A contract can be frustrated on the outbreak of war. Where the commercial purpose of the contract has failed. The provision of Force Majeure is one that has strict application and can only be relied on based on the express provision in the contract and the qualifying events which successfully triggers the provision. The applicability of Force Majeure can cover any situation provided that the provision has been made for it.

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What type of events can give rise to a Force Majeure? Natural events also known as an ‘Act of God’ can give rise to a Force majeure. Actus Dei nemini facit injuriam: interpreted literally, an act of God injures no one. To further buttress the maxim, it simply stresses the point that no one can be held responsible for an act of God and cannot be said to have injured an adverse party by the occurrence of such. Acts of God can include adverse weather conditions e.g. hurricanes, thunderstorms, earthquakes. These are unexpected events which cannot be predicted by contracting parties to a large extent, nor prevented by them. As indicated previously, a Force majeure is a term and it must be provided for expressly in a contract. It is good practice for parties to include such acts or events which would generally inhibit performance of obligations in a contract or work hardship in the process of performing same. These events may not be Acts of God per se, but they could be abnormal incidents which are inherently unfavorable to the terms of the contract. These include epidemics, pandemics and other manmade or politically related events such as riots, civil unrest and war due to instability in a government or national leadership or other ‘Acts of Government’. All in all these are events that can unduly occur out of the control of the parties making it difficult or near impossible for the parties to fulfill a contract. Impossibility in itself is subject to interpretation given that the circumstances that arise in the event of a medical pandemic will be quite different from that which arises during a riot. Whereas during war there is a total shutdown of operations and clearly normal business affairs will be non-existent in the case of a medical pandemic business operations, meetings, etc will be curtailed due to non-movement and not because the parties cannot perform necessarily. An outbreak of highly Infectious diseases such as Covid-19, H1N1 virus and/or the Ebola virus could fall under the category of medical pandemic or epidemic in a Force Majeure. However, to qualify as such, its category must be included in the Force Majeure clause especially where other acts or events are listed, so as not to be caught up by the ejusdem generis rule. The necessary Government regulations or directives which have been promulgated as a result of the outbreak such as social distancing, ban on large gatherings are strong performance barriers which could bring Covid-19 under the category of Acts of Government in the ilk of the items mentioned earlier. Careful construction of Force Majeure clauses is necessary as the clause needs to be wide enough to accommodate events that may not be life threatening but clearly significant to interfere with normal business operations. @Businessdayng

Parties are also at liberty to state the consequences of a Force Majeure. This could include suspension of Contractual obligations, renegotiation of terms, non-liability, extension of time to fulfill obligations, mitigation of losses, and termination of contracts amongst others. Considering the effect of Covid-19 on Sports and Entertainment events, where there is a Force Majeure Clause in the contract, parties may trigger the same. Sports broadcasting companies which would normally broadcast a wide array of pre-arranged sporting events in West Africa could reach out to the organisers and reach a favorable decision on the strength of a Force Majeure clause. Fans who have bought season tickets could rightly demand a refund from organisers and athletes signed up to sports clubs who may have to rely on the Force Majeure clause to justify why it was impossible for them to attend trainings or partake in games for their teams which would ordinarily represent failure to meet their side of the bargain. Recently, Nigeria’s ex-Skipper, Mikel Obi ended his contract with his former club, Trabzonspor of Turkey by mutual termination days after he criticised the Turkish FA for allowing games to go on given the pandemic. While the specific details of termination are not yet public, one may infer from the situation that he would only have been able to walk away from his contract without incurring heavy cost for breach if there were relevant Force Majeure provisions in the player contract to that effect. However, in the absence of express Force Majeure provisions in a contract, parties in Common Law jurisdictions have an alternative which is the reliance on the common law doctrine of Frustration. Doctrine of Frustration The doctrine of Frustration is based on the English common law doctrine which seeks to set aside the obligation of parties under a contract due to unforeseen events and it can apply in the following circumstances where there is no underlying provision for Force Majeure. The doctrine of frustration was well propagated in the case of Taylor v Caldwell From the decision in this case; the following elements of Frustration may be gleaned where: External events not contemplated by the parties arise which are beyond their control. The event was unforeseeable and it occurred post-formation of Continues on page 27 Beverley Agbakoba-Onyejianya is the head of Sports, Entertainment and Technology Law Practice at Olisa Agbakoba Legal.

Thursday 26 March 2020

BUSINESS DAY

The Bar REFORMER

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COVID19, Force Majeure and the Doctrine of Frustration the contract. The unforeseeable events make the contract impossible to perform. Thus where a force majeure clause has not been included in a contract and no risk has been allocated by such a clause in the occurrence of stated mishaps, where an unforeseeable event occurs which may render the contract impossible to perform, parties may rely on the doctrine of frustration to bring an end to the contract or obtain remedy from the court where due. An example of such an event would be where the subject matter or the crux or the main condition of the contract ceases to exist. This was established in the celebrated case of Henry v Krell, where the Coronation event, which was the foundation of the contract between the parties, was cancelled due to the unexpected sickness of the incoming king; the Courts deemed the contract as impossible to perform due to the non-existence of the subject matter of the contract. Thus, parties were excluded from any future obligations arising from the contract. Frustration could also occur where there is a delay or interruption which duration is indeterminate and was unforeseen by contracting parties. This was the decision of the Court in The Sea Angel Case. Thus, when applied to sporting and entertainment events that have been postponed indefinitely for now, this could constitute an act of frustration of the contract. Fans could get refunds; Insurance policies for players could be terminated with future obligations cancelled. Footballers who are in their last few months of contracts with their clubs — especially clubs in the top five leagues where the season ends in the summer- could exercise the option of canceling their contracts to the club where the season is resumed and the matches drag beyond June 30, the final day of contracts for most players. Event planners of concerts may have to refund all or a part of the funds received from artists and their managements due to cancellation of events. The fallouts are endless. A change of law can also qualify as an unforeseeable event can also act as an additional layer to another unforeseeable event such as a medical pandemic, a change of law may be temporary or long lasting and can be passed such as the temporary imposition of travel restrictions, self-isolation measures and quarantine to name a few which can further make the contract impossible to perform; resulting in termination of the contract. The consequence of invoking the doctrine of frustration is that it brings the contract automatically to an end and either maintains the status quo or restores the parties to the status quo ante bellum as the justice of the case demands. In the event a contract is frustrated, one party will be relieved of the obligation to perform and another who would have relied on service or goods emanating from the contract will be

left disappointed. It is ideal that both parties reach a mutual agreement and fair conclusion however the law of damages which is normally applicable in contract will not be applicable under frustration due to its strict Common law background. Conclusions The instance of COVID-19 gives rise to a series of unpredictable and unfortunately dynamic events. So far, we have witnessed industries come under enormous pressure to be discharged from its obligations notably the global aviation and sports industry which has had to take initiatives to secure the health and safety of millions first due to the enormous patronage usually enjoyed by these industries. Organisations in other industries are not exempt and will be required to be extremely cautious entering into any contracts from this point onwards until the threat abates, obtaining full legal clearance on new contracts will be highly advisable at this point. It is evident that in one form or another, individuals and businesses will be affected not only directly by COVID19 but also by the disruption emanating from it. Practical steps to manage the on going Covid19 threat include: Careful review of all existing contractual obligations. This applies to main and sub contracts in order to determine the level of risk exposure involved and what performance is expected. Review of contracts/agreements and check if the relevant force majeure clauses are already in place and determine if they are applicable. During the intense period of social distancing and travel bans, performance of contracts will likely be negatively impacted. It is necessary to ascertain to what degree performance is affected and what remedies are available. Can the contractual performance be delayed or postponed? Or will it have to be cancelled leading to significant reliance on force majeure contracts in order to minimise further liabilities or losses. This activity should typically be handled by the legal officer within your organisation or the company secretary. Prompt communication of nonperformance must be made as soon as it is clear contractual obligations cannot be performed by one party to the other party in the contract. This is necessary to mitigate losses as well as seek remedies such as refunds, etc. It is necessary to correctly ascertain whether the event arising falls under the provision of Force Majeure or frustration in order to be released from performing obligations under existing contracts. There is also the need to explore ADR mechanisms, especially negotiation in case of conflicts over performance of contracts. Parties like sports clubs and player unions or Sports Organisations could also commence negotiations as a preemptive measure in order to arrive at solutions for more extreme situations. www.businessday.ng

OLUMIDE AKPATA COVID-19: We can overcome by being responsible – Olumide Akpata

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Today, the official number of confirmed Corona Virus (COVID-19) cases in Nigeria has risen to 30 and indications are that this number might yet increase in the days to come as more people submit themselves for screening. I am therefore compelled and indeed duty bound to issue this press statement. Experts have opined that the spread of the virus can be significantly reduced by our actions (and inactions) especially through personal hygiene, social distancing, and where applicable, self-isolation. I encourage everyone to adopt these measures. For some months now, my friends and I have been traversing different branches of the NBA across the country, attending meetings and events to create awareness about the issues affecting the legal profession in Nigeria and to discuss how we can together make the Bar work for all. However, in the light of the prevailing circumstances and in the interest of public health and safety, I have chosen to lead by example by calling off, with effect from Monday 23rd of March 2020, all such travels and visits until further notice. I also regret that I will be unable to honour invitations to various events that I have been asked to attend or speak at. I crave the indulgence of the organisers of these events, and urge them to, where possible, postpone or cancel such events in the light of the realities of the times. At Templars, we have also activated a teleworking protocol that would enable everyone in the Firm to work from home with effect from Tuesday 24th of March 2020 until further notice. I believe that these steps are necessary to protect the public and curb the spread of the dreaded virus. As lawyers, we all have constantly taken pride in putting the needs of our clients, and indeed the profession, first in all that we do. Perhaps, events like these, as inconvenient as they may be, present us with an opportunity to be more attentive to, and proactive about, our health and the safety of our environment. We must do all that is required of us to stay healthy even as the world continues to take measures to contain the spread of this global pandemic. Thus, as we engage in our day to day activities, I encourage all to bear in mind that our primary goal should be to take all necessary precautions required to contain the spread of COVID-19. I therefore call on each and everyone of us to abide by the preventive health measures recommended by the World Health Organisation and other government agencies who are doing everything possible to contain this unfortunate development. We must also avoid spreading false and misleading information which in most cases creates unnecessary panic amongst our people.

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Continued from page 26

Whilst I remain assured that we will overcome the menace of COVID-19, I urge us all to stay safe for our families, friends and clients.

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Thursday 26 March 2020

BUSINESS DAY

INDUSTRYFILE

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NBA-SBL, CAC deepen partnership to IFEOMA OKEKE

he Council of the Nigerian Bar Association Section on Business Law, (NBA-SBL) and the Corporate Affairs Commission (CAC) have said that both organisations will continue to collaborate in order to improve ease of doing business. Speaking during a one-day stakeholders’ forum between the CAC and the NBA-SBL, Ayuli Jemide, vice chair NBASBL said the Section, which is the specialisation arm of the NBA, will constantly engage the CAC because the CAC is the company house where all the businesses are registered and for business lawyers, it is the hub for businesses. Jemide also said that beyond the collaboration, he was hopeful that a new Companies and Allied Matters Act (CAMA) will bring changes that will help the ease of doing business, as he expects both organisations to engage more on how to make sure that the law is not just signed but the intent of the law is put into operation. Speaking on the Section’s expectations from the CAC, he said, “The need to go digital for CAC is urgent for us and has been there for several years. We have been talking about deploying technology to enhance the efficiency and it has been a very slow-moving train but with the current registrar general (RG) and the new chairman, we see a stronger will to get achieve this and to cross the finish line. “The NBA-SBL will engage and collaborate more with the commission, to try to raise money by way of grants and endowments to achieve these objectives on a private basis and see how we can roll this out.” Also speaking at the event, Ademola Seriki, chairman of Corporate Affairs Commission (CAC) said the NBA-SBL and the CAC are creating enormous awareness for the public. He however lamented that a lot of people meddle with files inside the CAC office and people point accusing fingers at CAC, stressing that it is high time both bodies create awareness so that people can know the importance and position of the law. Seriki noted that the Companies and Allied Matters Act, which has already been approved and endorsed by the

national assembly, now awaiting the president’s assent, was a fundamental and positive development “And with a fora like this, people will become more aware of the developments,” he said. Seni Adio, SAN, Chairman of the NBA-SBL, who spoke earlier on reform initiatives by the NBA-SBL said, “We are very much involved with respect to the enactment of the Companies and Allied Matters Act. It is a very revolutionary bill and once that bill is signed by Mr President it will further help ease of doing business in Nigeria. “The NBA-SBL has always

been at the forefront in trying to enhance the proficiency of commercial lawyers in Nigeria. SBL advocates for lawyers to become specialists, so that people become experts in their given areas of work and can provide legal services efficiency with expertise in the commercial space.” He further disclosed that the forum, which is the third (3rd) the NBA-SBL is organising in collaboration with the CAC, will be held annually, as the Section intends to sustain its partnership with the commission. He added that expectations

of the business law community is for the CAC to continue to be innovative and revolutionary. “Since the current registrar general resumed office, he has been a solution provider, problem solver, accessible and I think that will permeate down. So, we expect that great things will continue to emerge from the commission,” he said. Speaking during a fire-side chat with the vice chair of the NBA-SBL, the registrar general of the CAC, Garba Abubakar, said since he took over as the registrar general, he has identified areas that require urgent reforms.

L-R: Olumide Akpata, immediate past chairman, Nigerian Bar Association-Section on Business Law (NBA-SBL)/senior partner, Templars; Chief Ademola Seriki, chairman, Corporate Affairs Commission (CAC); Seni Adio, SAN, chairman, NBA-SBL; Alhaji Garba Abubakar, registrar-general, CAC, and Ayuli Jemide, vice president, NBA-SBL, during a one-day Stakeholders’ Forum, organised by the Nigerian Bar Association-Section on Business Law (NBA-SBL) in Collaboration with the Corporate Affairs Commission (CAC) in Lagos.

“We are currently doing a review of our checklist and guidelines to make it more business friendly and to remove unnecessary bottlenecks that slows down our processes and procedures. So, what we have done is that most of the requirements that were alien to the law have been removed. “We have simplified the procedures especially on name search and reservations and consent for restricted names. Lawyers can do their transactions with CAC seamlessly. We have also looked at the current restrictions on the number of pages a company can submit as memorandum and articles. “We have increased the number because every serious company cannot operate with just two page articles. So we have increased the numbers to maximum of ten and minimum of five pages of memorandum, so that more activities they intend to engage in can be accommodated in the pages. “In the long run, we want to have an end to end electronic solution, such that the company can file changes and returns and financial information electronically without having to visit CAS,” Abubakar explained. Also speaking at the event, the immediate past chairman of the Nigerian Bar Association Section on Business Law, (NBA-SBL), Olumide Akpata, stated that the continuous collaboration between the Corporate Affairs Commission (CAC) and the NBA-SBL is key to improving commercial law practice in Nigeria. He said, “When we received feedback that legal practitioners were having major issues with the operations of the CAC. We

Seni Adio, SAN, chairman, NBA-SBL

Ayuli Jemide, (l), vice chair, Nigerian Bar AssociationSection on Business Law (NBA-SBL).

Ademola Seriki, chairman, Corporate Affairs Commission (CAC), giving his goodwill message

Garba Abubakar, registrar-general, CAC, speaking at the event.

Olumide Akpata, (l), immediate past chairman, Nigerian Bar Association-Section on Business Law (NBASBL)/senior partner, Templars

L-R, Olumide Akpata, Immediate Past Chairman NBA-SBL; Theodora Kio-Lawson, Chair, NBA-SBL Media & Publicity and Seni Adio, SAN, Chairman, NBA-SBL.

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Thursday 26 March 2020

BUSINESS DAY

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improve ease of doing business approached the commission for establish the joint working committee and we created a platform where all the issues were put on the table and solutions were being proffered,” he said. Whilst commending the new leadership of CAC, describing the current registrar general (RG) as dynamic. On the objectives of NBASBL, he said the SBL has continued to improve the practice of commercial law in Nigeria and to make sure that commercial lawyers are competent and local lawyers are able to do the work locally.

Dr. Adeoye Adefulu, secretary, NBA-SBL, with Mena Ajakpovi, council member, NBA-SBL

Nidiya Justine (l), with Ifeoma Isaac, both are directors, Corporate Affairs Commission (CAC).

Toyin Abe, (l), director, CAC, with Abdul-Hakeem Mohammed, director, CAC.

Saratu Shafi’I, director, CAC (l), with Ademola Seriki, chairman, CAC

OAL announces alliance with capstone legal O

AL, a leading Nigerian law firm has tied up with Capstone Legal a dispute resolution and corporate advisory law firm in India to provide legal services to international clients. This is a first tie-up between a Nigerian and an Indian law firm to collaboratively provide legal services which involve multiple jurisdictions. OAL is one of Nigeria’s top law firms which provides services in dispute resolution, debt recovery and commercial law. OAL is a leading legal service provider in areas concerning maritime law, regulatory and compliance in Nigeria and international disputes. Capstone Legal counts leading companies such as ACC, HCL Infosystems, Ultratech, Bharti Infratel and the Jaipur Literature Festival among its clients is considered to be one of the fastest growing law firms in India. It was recently acknowledged in a report by Singapore Academy of Law as law firm providing innovative legal services. Speaking about the alliance, Dr. Olisa Agbakoba, SAN said, “The Synergy between the two

(L-R) Partner/Head, Insolvency and Dispute Resolution Group, OAL, Adebola Sobowale; Senior Partner, Olisa Agbakoba Legal (OAL), Dr. Olisa Agbakoba SAN; Partner/Head, Dispute Resolution, Babatunde Ogungbamila.

leading law firms of Olisa Agbakoba Legal (OAL) and Capstone Legal is a very significant development in the context of growing Indo-Nigerian trade and bilateral relations which is now topping US$10 Billion annually.” Speaking for Capstone Legal, Vagish Kumar Singh, managing partner of the firm said, “For us a tie-up with OAL strengthens www.businessday.ng

our international practice and we believe that there is a need for quality legal services involving a combination of Nigerian and Indian law”. According the representatives of both firms, the alliance will be particularly beneficial to companies from both jurosdictions that have business interests in Nigeria and India, as well as for

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companies who want to enter in the respective markets. OAL offers innovative clientfocused legal solutions to all sectors in Nigeria’s emerging economy. OAL has represented major commercial banks, top government financial institutions such as the Asset Management Corporation of Nigeria and the Central Bank of Nigeria and @Businessdayng

other corporate organizations in various commercial transactions involving negotiations, litigation and arbitration, both locally and internationally. The firm’s practice areas cuts across commercial litigation, maritime, arbitration, debt recovery and insolvency, development and public interest law, as well as sports, entertainment and technology. Started in 2012 by two National Law School of India University (NLSIU) alumni Ashish and Vagish, today the firm has 14 fee earners. The firm specializes in cross border disputes, execution of arbitral awards in India and corporate advisory. Recently, Capstone Legal has engaged Amit Popat as its Global Leadership Consultant with the focus of starting a full time office in London for its international law firm clients. With the collaboration structured in the form of a “Best Friends Agreement” (BFA) /“Memorandum of Understanding” (MOU), both law firms will be able to attract/provide legal services to new clients in respective jurisdictions.

Thursday 26 March 2020

BUSINESS DAY

DISPUTERESOLUTION

LegalBusiness

Global Gas and Refinery Limited V. SPDC - Is Lagos Pro or Anti-Arbitration? …Lagos High Court says when challenged, an arbitrator should just resign Funke Adekoya, SAN

he ruling recently by the Lagos State High Court setting aside an award in the case of Global Gas and Refinery Limited and Shell Petroleum Development Company gives cause for concern to the arbitral community both within Nigeria and abroad. In the case, the Court held that the presiding arbitrator’s non-disclosure amounted to misconduct, which entitled the court to set aside the arbitral award even though the challenge had earlier been submitted to the ICC which had dismissed the challenge. The court was of the view that “The main issue in the case centered on the bias of the President of the arbitration panel.” The brief facts of the case as can be discerned from the ruling delivered is that the claimant commenced ICC arbitral proceedings against the respondent alleging breach of a gas sales and purchase agreement. During the proceedings the claimant challenged the appointment of the presiding arbitrator on the grounds that he had failed to disclose information which led to doubts as to his independence and his impartiality. The ICC Court of Arbitration reviewed the challenge and dismissed it. The arbitration continued and concluded with an award by the majority of the tribunal dismissing the claimant’s claims. The claimant then proceeded to the Lagos High Court seeking orders setting aside the final award dated 30th May 2017, refusing recognition and enforcement of the final award plus other consequential orders. The grounds for the application included a ground based on misconduct of the majority of the arbitral tribunal and one of the issues raised for determination was “whether there are proven instances of misconduct by the majority of the arbitral tribunal in the final award dated 30th May 2017”. The trial judge in her ruling indicated that “one of the grounds to which they are seeking the court’s intervention to set aside the arbitral award is the reason of nondisclosure by the arbitral tribunal who had a relationship with the parties which he failed to disclose at the ICC… Counsel argued that at the time of the arbitration the president of the tribunal had a relationship with the respondent which he failed to disclose both to the parties and the ICC … he gave an expert opinion as a barrister in a litigation matter involving the respondent as a party… The ruling indicates that the tribunal chair

had provided expert advice on a dispute between the respondent and Bodo Community in Gokana Ogoni River State. [The Respondent says the chair provided an expert opinion to its parent company abroad and not to it.] The Claimant also alleged that the tribunal chair and the other member of the tribunal that constituted the majority in the arbitral tribunal were both members of the Board of Governors of an arbitral institution of which the Respondent counsel was the chair and that this body was formed during the pendency of the arbitration, with no notice or disclosure being made to any of the parties. The claimant indicated that based on their membership of this arbitral institution, it had challenged the appointment of these parties at the ICC, but the ICC did not uphold the challenge, rather it dismissed the complaint. In essence the claimant asserts that the undisclosed relationship with the Respondent [ or its parent company as asserted by the Respondent] by providing an expert report in an unrelated matter, together with the undisclosed membership by the presiding arbitrator, one co-arbitrator and counsel for the Respondent of an arbitral institution amounts to misconduct. In the decision the Court took the view that once an arbitrator has been challenged his or her obligation is to resign the appointment and not resist the challenge. The court held that “when an objection is raised on the basis of bias, it www.businessday.ng

casts doubts on the process itself, notwithstanding whether the panel was constituted or not by ICC. This being so, the President of the arbitrator [sic] must exercise a duty of care towards all the cases that are before them [sic]. Therefore, it does not lie in the Arbitrators to raise a defense or put the process in ridicule. What is expected was to have simply recluse [sic] himself, even when the system absolved him. This is the standard and nothing more is required….Consequently it beats me hollow why the learned gentlemen, even though allowed to proceed to lead the panel ought to have graciously throw [sic] in the towel. That is the practice that all arbitrator / judges worldwide should adopt. As I have said earlier in this ruling no justification is allowed to flow from the mouth of the arbitrator in form of a defense….” With all due respect, this position is not correct. The worldwide practice is set out in the IBA Guidelines on Conflicts of Interest in International Arbitration. It is the ’gold standard’ for determining what an arbitrator needs to disclose. The IBA Guidelines seek to ensure that in the event of a challenge, there is a “guide” to determine if there has been a conflict of interest capable of affecting the independence and impartiality of the arbitrator. In determining whether nondisclosure constitutes a breach of an arbitrator’s conflict of interest obligations, as recently as 2018 in Halliburton Company v Chubb Bermuda Insurance Ltd &

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Ors [2018] EWCA Civ 817 (19 April 2018) the English Court of Appeal stated the test at paragraph 73 of the judgment as follows: “First, the court needs to consider whether disclosure ought to have been made in accordance with the principles we have just enunciated. Secondly, the court needs to consider the significance of that non-disclosure in the context of the application with which the court is dealing. In the case of an application for removal of the arbitrator in question, the court will consider on the basis of all the factual information available when that application is heard (including the fact that there has been non-disclosure), whether the fair-minded and informed observer would conclude that there was a real possibility that the arbitrator was biased.” Apart from this not having any legal basis in legal jurisprudence, the ‘if challenged, then resign’ posture advocated by our courts also results in a very practical consideration. Any party that wishes to delay arbitration proceedings can merely challenge an arbitrator by alleging the absence of independence and impartiality; if this decision is to be followed, the failure of the arbitrator to immediately withdraw will result in any consequent award being set aside. This surely cannot be the intention of the challenge procedure. Furthermore the Learned trial judge also took the view that the challenged arbitrator had an obligation to disclose these particular facts. However this position is not supported by reference to the IBA Guidelines. Surprisingly, there is no reference to the Guidelines in the decision, and as such one is unable to determine whether any reference was made to them, or any reliance placed on them in reaching this decision. The Guidelines provide examples of relationships and categorises them into Red, Orange and Green Lists. A review of Part II: Practical Application of the General Standards of the IBA Guidelines discloses that the non-disclosure of the membership of the Board of Governors of the arbitral institution by the majority members of the arbitral tribunal and the respondent counsel is a Green List item “The arbitrator has a relationship with another arbitrator, or with the counsel for one of the parties, through membership in the same professional association, or social or charitable organisation, or through a social media network.” This does not disclose a conflict of interest. The expert opinion given @Businessdayng

by the presiding arbitrator to the parent company of the Respondent in respect of another matter, would at worst be an Orange List item, depending on when the services were rendered. – “The arbitrator has, within the past three years, served as counsel for one of the parties, or an affiliate of one of the parties, or has previously advised or been consulted by the party, or an affiliate of the party, making the appointment in an unrelated matter, but the arbitrator and the party, or the affiliate of the party, have no ongoing relationship.” Even if this fact should have been disclosed as an Orange List item, the nondisclosure without more cannot be evidence of bias. The facts not disclosed must give rise to justifiable doubt as to independence and /or impartiality. As stated by the English Court of Appeal in the Halliburton case at paragraph 76 of the judgment, “Non-disclosure of a fact or circumstance which should have been disclosed, but does not in fact, on examination, give rise to justifiable doubts as to the arbitrator’s impartiality, cannot, however, in and of itself justify an inference of apparent bias. Something more is required …” Even where the arbitrator has failed to disclose a disclosable fact, it is submitted that setting aside the award should not be the automatic result of the failure to disclose. Many parties are negatively impacted when an award is set aside: the parties to the dispute who have expended time and money on putting their case before the arbitrators, the other (and innocent) co-arbitrators who have also expended their time, knowledge and energy in providing a resolution to the dispute, in administered arbitrations, the arbitral institution may have reputational issues resulting from the termination of the case it had administered, and ultimately the potential decrease in the confidence of users that the system of arbitration will conclude with the resolution of disputes. In a scenario such as this, where the request is to set aside an award in an administered arbitral proceedings, perhaps the court should give significant weight to the fact that the institution agreed upon by the parties to administer the arbitration and which includes the determination of any conflict challenges court had reviewed the challenge and dismissed it. The court is supposed to support the arbitration process, not hinder it. For as long as this decision stands unchallenged, Lagos cannot claim to be pro-arbitration. The ball is in our court [pun intended!]

Thursday 26 March 2020

Innovation

Apps

BUSINESS DAY

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Ecommerce

IOTs

TECHTALK

Broadband Infrastructure

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Neglect of automation in civil service leaves states exposed to COVID-19 FRANK ELEANYA

s Nigerian states plan for weeks of economic and social upheaval ahead, those like Ekiti, Lagos, Kogi, Kaduna and Kwara asking workers to work from home face a significant drop in productivity at a time when the lives of millions depend on their efficient delivery. This could be the result of many years of failure to take serious steps in addressing the automation of the job of civil servants. Following the confirmation of 6 new cases in Lagos on Sunday, Babajide Sanwo-Olu, the governor asked all public officers from levels 1 to 12 (about 70 percent of the workforce) to stay at home for the next 2 weeks as a precaution against the spread of Coronavirus. Kwara State followed Lagos lead almost immediately, asking all civil servants - except those in the Ministry of Health, to work from home. This comes at a time when workers in the private sector are being asked to work remotely with their organisations relying on advanced technological equipment to monitor progress while at home

ensuring that productivity does not suffer. The spread of coronavirus globally has necessitated drastic measures to contain it. On Monday the federal government of Nigeria said it has confirmed 40 cases of people affected with the virus. Lagos has 28 cases, Abuja 7, Ogun 2, Ekiti 1, Edo 1 and Oyo 1. As both the federal and state governments take measures including the ban of public gatherings, schools, and closure of all airports, they are likely to think triple hard before sending their workers home. This is basically for lack of technology tools that will aid their productivity

and keep the states running while the workers are at home. It is not just a public sector problem. According to a Hootsuite report in 2018, only 23 percent of Nigeria’s adult population make use of a desktop computer or a laptop while 9 percent own a tablet computer. However while companies in the private sector are making frantic efforts to digitise their workforce, the state workers drag their feet. Hence, rather than send their workers home, most states are merely providing preventive materials to staff like sanitizers while those who are sick or vulnerable

are advised to stay away from work. Oyo State Universal Basic Education Board, Nureni Adeniran, had distributed over 1,500 hand sanitizers to staff members and guests at the board. “The truth is with the civil service I don’t think work can be done from home because there is still a lot of paperwork and they can’t move. Someone has to move them... maybe the service will have to be digital,” said a Lagos resident and creative designer who identifies himself simply as Sulyman. Ekiti which has recorded only one case of the coronavirus is the only

state in the country to ask a part of its workforce to work from home. Kayode Fayemi, the state governor listed the non-essential workers in private and public sectors who should work from home to include civil and public servants from level 12 and below; except essential services like health workers, caregivers, social welfare officers, fire service officers, emergency response officers, and security guards and watchmen in public institutions. But some commentators said the move could be counterproductive given that the majority of the civil servants lack basic computer skills and equipment to make working from home efficient. “I served there (Ekiti state), sometimes I’m the only one in the office. After the first 2 months, I started going there once a week. Even once a week, I still come to work more than half the Secretariat,” said a former NYSC member who served in the state secretariat. Ireke Samuel, CEO of Lawnigeria.com told BusinessDay that from visiting some of the federal civil services in recent times, the productivity levels are at an all-time low due to lack of

investment in technology. “The majority of them have no desktop to work with, much less a laptop at home,” he said. Beyond laptops, the lack of a database in many of the states also means that the whereabouts of the civil servants are not accounted for. In some states, workers have log books where they write their names every morning they come to work. The records are kept in files locked up in rooms that have accumulated dust from lack of use. The federal government has in recent times made efforts to automate the service by kicking off the 20172020 Federal Civil Service Strategy and Implementation Plan aimed at addressing the challenges and improving productivity, professionalism for efficiency and effectiveness in service delivery. The plan has yet to yield any significant fruits. The government has had to face opposition with its payroll imitative IPPIS. Although it has taken other measures to contain the virus, the federal government was forced to declare home work on Monday. But how prepared is the government to the drop in productivity it is about to experience following the declaration?.

Nigerian tech ecosystem rally behind government against COVID-19 FRANK ELEANYA

igerian tech businesses may have been forced to shut down their offices while their workers work from home, but many of them would not be folding their hands and letting the government alone take on the pandemic coronavirus. As of Monday, the country has confirmed 35 cases of the coronavirus with one casualty. The cases were spread across 6 states with Lagos State having the most cases at 24. Ventures Platform, led by its founder Kola Aina is rallying the rest of the

ecosystem to find a techenabled solution to mitigate the effect of the virus. His campaign is gathering momentum. As of Monday, the panAfrican earl;y stage fund was announcing a partnership with the Lagos State Science Research and Innovation Council (LASRIC). The two institutions will provide funding and rapid operational assistance to the selected teams and startups alongside technology and business industry experts, including LoftyInc, ACIOE, Wennovation, Flutterwave, AGS Tribe, SilverChip Consulting, Bluechip Technologies, IROKOtv, Lakunle Runsewe,

Manasseh Egedegbe, and also supported by Facebook. “Due to the rapid spread of coronavirus, we really do not have a moment to lose, which is why we are grateful to have assembled such a talented and influential group of program partners and mentors, we we look to move this very quickly,” Aina said. The collaboration is aimed at finding talents including hackers, developers, enthusiasts or founders able to build solutions for the pandemic and experienced professionals in technology, public health and pandemic research, healthcare investment,

public sector engagement, digital experience management, virtual care, entrepreneurship development, and support. The talents will be discovered through the #COVID19InnovationChallenge. The challenge which has been extended to Monday 23 March 2020, specifically targets ideas around heat mapping, preventive or information bots, solutions to assist with lifestyle adjustments, COVID-19 reporting and more. Six winners from the competition will receive a $2,000 equity-free grant, opportunity for further funding, as well as access to virtual workspace and

mentorship from some of Africa’s top healthcare, business and technology leaders such as Rebecca Enonchong, Alexis Roman, O.O. Nwoye, Seun Onigbinde, Titi Akinsanmi, Ola Brown, Ifeanyi Nsofor, Ebi Ofrey, and Femi Kuti. “We know the talent is out there, now our job is to provide an enabling environment as well as access to mentors and funding so that our chosen companies and innovators can focus on building the best solutions for this big challenge in support of the NCDC and other actors,” Aina said. Since the announcement of the call for submissions, hundreds of re-

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com www.businessday.ng

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sponses have been sent in from various parts of Africa. “It is important that the state tackles issues around the pandemic in areas such as tracking, managing and solving related problems even for various health issues at large,” said Olatunbosun Alake, Special Assistant to Lagos State Governor on Technology and Innovation and the head of LASRIC. “We believe that this partnership will help us source a number of products and services that will help the vast swathes of our population stay healthy and protected. We also believe that what works here in Lagos will help the rest of Africa.”

Thursday 26 March 2020

BUSINESS DAY

Corporate Social Impact

Onuwa Lucky Joseph (08023314782) Editor.

Corporate responsiblity in the age of Covid 19 Onuwa Lucky Joseph

hat difference a week makes! On Tuesday last w e ek when I sent in my CSI segment preparatory to publication on Thursday, the corona virus issue in Nigeria was still largely speculative, so to speak. The first two paragraphs were a hopeful run: “The developed world is shutting down even as SubSaharan Africa stays open for business. The fear of COVID 19 has gripped the world’s imagination and even though the physical footprints are not fully indented here, a lot of folks are aware and afraid of what could happen should it make proper landing here. “A lot of the anecdotal things we hear are sort of heartwarming. The virus is supposedly unable to survive the sweltering heat that is Africa’s general weather. Some have also claimed that the melanin pigmentation in black folks helps make us resistant so that even when we get infected, it’s usually with the mild sort which is easily dealt with by naturally occurring antibodies in our system. That can’t be all true though. The death, last week in Italy, of 64 year old Nigerian pathologist, Dr. Olumide Okunuga, put paid to that line of thinking.” Hmnnn. Today, the physical footprints of Covid 19 are indented across many African countries. In Nigeria, as at the time of writing this on Monday 23/03/20, the first Nigerian casualty in the person of Suleiman Achimugu, 67, ex MD of PPMC had just been confirmed. This alongside the first confirmed case in Edo and with the tally as at Monday rendered thus: 36 confirmed cases, 33 active cases, 2 discharges, and 1 death. This is not where we expected we would be. The fabled melanin has not put a strong enough, if any, defense, on our behalf. What was responsible for the sudden spike? Government didn’t do what it should have done: close down the airspace and land borders, and monitor foreigners and returnees streaming into the country from high risk countries. Our salvation had been lack of exposure to those infected in Asia, Europe and the Americas. But as is our custom, we didn’t do the needful, and now on the back foot are engaging the fire brigade method, bad even as a metaphor in Nigeria where the Fire Service is known for showing up at conflagrations without a drop of water…. A lot of the extreme measures being suggested, and which worked in other countries, e.g. lockdowns and self quarantines

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Mike Adenuga

are unlikely to work here for majority of the population. Government simply does not have what it takes to police the length and breadth of Nigeria to ensure compliance. And a major reason people aren’t going to comply is because their economic misfortunes are now even direr with the advent of Covid 19. How can you lock down a family that does not have a day’s supply of food, never mind 14 days? The scenario does not look good at all. However, effort must continually be made to ensure that the right things are done and adhered to: No crowding. No churching or ‘mosqueing’. Religion should revert to its place as a strictly personal endeavour. Let the Almighty alone be witness to your passion and zeal. And so far, most churches have done a good job of adherence. The rest should do likewise by self-regulating as authorities simply cannot police every place of worship. But even as governments and religious bodies step up to the plate, the corporate sector needs to heed the call of the times and be factors indeed for a healthy Nigeria. That call must take cognizance first of their internal publics; that they go all out to ensure the health and wellbeing of their staff and customers. Work from home is doable for some organisations. Some corporates already started the shift process whereby a set of staff relieve another set every other day. But lack of full work days should not justify pay cuts except where the organisation justifiably has not the means to pay. In any case, work from home remains a viable option for those with staff on rotation. It’s heartening to see that most organisations are doing the basics. Temperature checks, sanitizer in open view for use by all, soaps, staff donning face masks and some wearing gloves, and Covid 19 information materials well displayed for all to see and apply. But even going further is for the impact of our corporates to be felt in the larger society. And we can take our examples from corporates abroad and their response so far: According to the www.businessday.ng

World Economic Forum, “As the number of confirmed COVID-19 coronavirus cases continues to rise, exceeding 200,000 on 18 March, something else is starting to happen around the world – entrepreneurs, businesses and multimillionaire philanthropists are pledging their support.” The report goes on to say that “some are augmenting the work of public bodies, while others are filling gaps that might otherwise have been left unfilled”. A roll call of some of those that have pitched in include: Ali Baba Jack Ma, founder of Ali Baba, through the Jack Ma Foundation, is donating 1.1 million testing kits, 6 million masks, and 60,000 protective suits and face shields. They are all being sent to Ethiopia first, for distribution to every country in African. “As members of the global community, it will be irresponsible of us to sit on the fence, panic, ignore facts or fail to act. We need to take action now,” he said. Amazon Amazon is taking it upon itself to donate $5 million to local businesses that are based near its Seattle headquarters that will likely lose out on sales now that thousands of Amazon staff are working from home. As well, Amazon has said it would stop shipping non-essential products to customers in Italy and France where coronavirus cases have continued to soar. Microsoft, Amazon, Alaska Airlines & Starbucks A consortium of big US businesses including Microsoft, Amazon, Alaska Airlines and Starbucks Foundation have donated $2.5 million so far to create the COVID-19 Response Fund targeting Washington State which is one of those states hard hit by the pandemic. Microsoft President, Brad Smith, said “As large corporations, we can take this step and should. But not all businesses will be able to do so. As our community focuses on public health needs during the COVID-19 outbreak, it’s important that we also rally together to address the unmet economic

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Jim Ovia

needs developing around us.” Facebook Facebook has said it will donate $20 million to support coronavirus relief efforts. Apple Apple is committing $15 million. Roche This Swiss pharmaceutical giant has started shipping coronavirus tests to the US and plans to get at least 400,000 out every week. Its fully automated tests are capable of delivering up to 960 sets of results every eight hours using one of its powerful analysis machines. The test kits are destined for around 30 labs that have a broad geographic reach and high patient impact. “We do have to prioritize testing because there is simply not enough capacity for broad-based testing,” Roche CEO Severin Schwan said in an interview with Bloomberg. Rolls-Royce In the UK, the government has turned to some of the country’s biggest industrial names, including Rolls Royce and Dyson. They are being called upon to start producing life-saving ventilators. On 16 March, the UK’s health secretary, Matt Hancock, issued an appeal via Twitter: “Calling all manufacturers who can support our National Effort for #coronavirus ventilator production - to help, contact Government Business Support team.” LVMH French luxury powerhouse LVMH, which owns Louis Vuitton, Bulgari, TAG Heuer, Tiffany, Dom Pérignon and many other high-end brands, has now ventured into the hand-sanitizer sector. Factories that usually produce perfume and make-up for brands like Christian Dior and Givenchy are being pressed into service to fight COVID-19. “LVMH will use the production lines of its perfume and cosmetic brands... to produce large quantities of hydroalcoholic gels,” the company said in a statement. The Nigerian Corporate Response We expect the big corporates in Nigeria, especially the multi@Businessdayng

nationals, to register their impact in this trying time and season via a creative deployment of their assets. While it’s clear that most Nigerian corporates lack the financial arsenal of their western and Chinese counterparts, they still can pool up formidable resources towards this fight if they are so inclined. Let’s face it, their markets are suffering, there’s likely to be a steep decline in purchasing power, and that might just be the beginning of the disruption. Covid 19, truth be told, is an existential crisis for most corporates. If it drags on for too long, it most probably will drag a number corporates down with it, organisations that become too weakened to ever rise again. And our weakened economy, now no longer without their participation, only becomes weaker and weaker still. Nigeria’s private sector, therefore, rather than treat their engagement with the crisis as a sympathetic extension of support should engage it along the lines of enlightened self-interest. We help to help ourselves survive. If our markets go down, we go down with it. What does the country need to combat Covid 19? We expect that some industrial/manufacturing concerns will throw their production lines open and come up with response thst helps us all breathe easier. And who knows, these crises, brimming over with opportunities as such times usually are, might see those businesses emerge with entirely new business lines and models that sees them end up stronger The private sector must therefore swiftly, vigorously, and vociferously engage with government leaving it no room for the missteps that got us here. On our part, any company so engaged can reach us with details of their efforts. Not only so we can commend but also to recommend those efforts and initiatives to a broader swathe of Nigerian corporates.

NCDC TOLL-FREE NUMBER: 080097000010 Twitter/Facebook:@NCDCgov/ COVID19.NCDC.GOV.NG

Thursday 26 March 2020

BUSINESS DAY

Corporate Social Impact International Women’s Day:

Okonjo-Iweala, Angelique Kidjo, Peace Hyde and others make WeForGood’s ‘100 women creating a better Africa’ list

eForGood International , a Lagos based sustainable development consulting firm, recently announced the final results of its ‘100 Women Creating A Better Africa’ campaign, an initiative which kicked-off with a call for nomination to the general public on March 6, 2020. The campaign, which is part of the organisation’s commemoration of the International Women’s Day, is aimed at putting the spotlight on women making a difference on the continent. The International Women’s Day (IWD) is celebrated on the 8th of March annually. According to the United Nations, it is a time to reflect on progress made, to call for change and to celebrate acts of courage and determination by ordinary women who have played an extraordinary role in the history of their countries and communities. The Chief Executive Officer of WeForGood International, Temitayo Ade-Peters, while expressing her excitement over the final results, said the campaign is WeForGood’s way to celebrate and honour women making impact across various communities in Africa. “We are particularly pleased with the makeup of the final list”, she said. “It provides an amazing picture of women from different walks of life and at different stages of influence but with a common thread: the passion and commitment to make Africa better for us and for the next generation. Each of the faces on this picture collage represents thousands of women who, leveraging on their capabilities, rise up daily to push for Africa’s sustainable development, in spite of the obvious and seemingly insurmountable challenges they encounter.” she stated. Also speaking about the nominations she said, “I love the fact that these are people’s choices from their various communities; we called for nominations and here are the results. Nominees came from over 25 nationalities, which is quite impressive for this maiden edition. It is also important to note that quite a number of men participated in this campaign. In fact, 46% of the nominations came from men, which is great and shows their commitment to supporting the women folk, a key message of the IWD theme for 2020 tagged ‘Each For Equal’.” As the name implies, the ‘100 Women Creating A Better Africa’ is a list of 100 women making a difference on the continent.

As part of the criteria for selection, each woman on the list is contributing her quota to the achievement of one or more of the 17 UN SDGs (United Nations Sustainable Development Goals) in Africa. With this initiative, WeForGood hopes to accelerate the attainment of the SDGs, while inspiring more women to push beyond the boundaries and make their mark on the continent. Some of the names on the list include: • Angelique Kidjo, Benin, Entertainment – Music; (GOAL 4: Quality Education) • Sahle-Work Zewde (HE), Ethiopia, Politician; (GOAL 16: Peace and Justice Strong Institutions) • Achenyo Obaro, Nigeria; (GOAL 1: No Poverty) • Aminatta Forna, Sierra Leone, Author, Academic, Commentator; (GOAL 4: Quality Education) • Bethlehem Tilahun Alemu, Ethiopia, Entrepreneur; (GOAL 1: No Poverty) • Bolanle Osotule, Nigeria, Banking; (GOAL 11: Sustainable Cities and Communities) Chimamanda Ngozi Adichie, Nigeria, Writer/Novelist; (GOAL 5: Gender Equality) • Aya Chebbi, Tunisia, Media – Blogging; (GOAL 8: Decent Work and Economic Growth) • Bekeme Masade-Olowola, Nigeria, Social Sector; (GOAL 16: Peace and Justice Strong Institutions) • Belinda Akoto, Ghana, Eduwww.businessday.ng

cation and Training; (GOAL 8: Decent Work and Economic Growth) • Bridgette Radebe, South Africa, Business; (GOAL 9: Industry, Innovation and Infrastructure) • Charlize Theron, South Africa, Entertainment; (GOAL 8: Decent Work and Economic Growth) • Chioma Ukpabi, Nigeria, Creative Industry; (GOAL 8: Decent Work and Economic Growth) • Fatma Samoura, Senegal, Sport – Football; (GOAL 16: Peace and Justice Strong Institutions) • Folorunsho Alakija, Nigeria, Business; (GOAL 9: Industry, Innovation and Infrastructure) • Adejoke Orelope, Nigeria, Government; (GOAL 17: Partnerships to achieve the Goals) • Dambisa Moyo, Zambia Economy Advocate; (GOAL 11: Sustainable Cities and Communities) • Danielle Kayembe, American, Technology; (GOAL 17: Partnerships to achieve the Goals) • Elizabeth Talatu Williams, Nigeria, Public Health; (GOAL 3: Good Health and Well-being) • Francesca Rosset, Italy, Fashion; (GOAL 8: Decent Work and Economic Growth) • Graça Machel, Mozambique, Culture and Education; (GOAL 4: Quality Education) • Ibukun Awosika, Nigeria, Business/Economic; (GOAL 8: Decent Work and Economic

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Growth) • Isis Nyongo, Kenya, Corporate Executive (TECH); (GOAL 9: Industry, Innovation and Infrastructure) • Ndidi Nwuneli, Nigeria, Social Entrepreneur; (GOAL 9: Industry, Innovation and Infrastructure) • Omobolanle Victor-Laniyan, Nigeria, Banking; (GOAL 17: Partnerships to achieve the Goals) Egypt, • Manal Rostom, Athlete and Influencer; (GOAL 5: Gender Equality) • Kelechi Okoro, Nigeria, Health; (GOAL 3: Good Health and Well-being) • Peace Hyde, Nigeria, (GOAL 16: Peace and Justice Strong Institutions) • Salwa Akhannouch, Morocco, Entrepreneur, (GOAL 9: Industry, Innovation and Infrastructure) Nige• Cima Sholotan, ria, Telecommunications; (GOAL 17: Partnerships to achieve the Goals) • Juliet Ehimuan, Nigeria, Corporate Executive (Tech); (GOAL 17: Partnerships to achieve the Goals) • Kgomotso Phatsima, Botswana, Aviation; (G OAL 8: Decent Work and Economic Growth) • Pearl Uzokwe, Nigeria, Oil & Gas: (GOAL 17: Partnerships to achieve the Goals) • Zoe Lenkiewicz, British, NGO; (GOAL 6: Clean Water and Sanitation) • Saran Kaba Jones, Liberia, Entrepreneur ; ( G O A L 3 : @Businessdayng

Good Health and Well-being) • Osayi Alile, Nigeria, Social Development ; ( G O A L 5 : Gender Equality) Nige• Mina Ogbanga, ria, Education and Renewable Energy; (GOAL 7: Affordable and Clean Energy) • Olamide Ayeni-Babajide, Nigeria, Waste management; (GOAL 11: Sustainable Cities and Communities) • Ndidi Nnoli-Edozien, Nigeria, Manufacturing; (GOAL 9: Industry, Innovation and Infrastructure) • Louise Mushikiwabo, Rwanda, Politics (Activist); (GOAL 16: Peace and Justice Strong Institutions) • Lisa Kropman, South Africa, Entrepreneur; (GOAL 9: Industry, Innovation and Infrastructure) • Ngozi Okonjo Iweala, Nigeria, (GOAL 16: Peace and Justice Strong Institutions) • Abimbola Emmanuella Fashola, Nigeria, (GOAL 4: Quality Education) • Professor Sheila Tlou, Botswana, (GOAL 4: Quality Education) • Kemi Ajumobi, Nigeria, Jo u r na l i s m / B ro a d c a s t i n g ; (GOAL 5: Gender Equality) • You can find the full list and read more about the ‘100 Women Creating A Better Africa’ campaign on www.weforgood. org.

(Kindly send feedback to 08023314782 / csrmomentum@gmail.com)

Thursday 26 March 2020

BUSINESS DAY

Live @ The Exchanges Nigeria stock market fails to sustain gains Iheanyi Nwachukwu

igeria’s stock market returned to the red zone on We d n e s d a y March 25 over heightened uncertainty about the economy due to Coronavirus Pandemic. Nigeria, Africa biggest economy early Wednesday confirmed two more cases of Coronavirus, taking the country’s confirmed cases to 46. Its commercial capital, Lagos has the highest number. Amid remote trading, the Nigerian Stock Exchange (NSE) All Share Index (ASI) which had risen on Tuesday decreased by

0.05 percent at the close of trading on Wednesday. The NSE ASI decreased from 21, 741.16 points to 21, 729.48 points while the value of listed stocks decreased from N11.329trillion to N11.323trillion, losing N6billion. Total Nigeria plc recorded the highest decline after its share price dropped from N107 to N96.3, losing N10.7 or 10 percent while MTNN plc followed from N103 to a new low of N100, losing N3 or 2.91percent. On the advancers list, Zenith Bank plc occupied topmost position, rising from N10.95 to N11.75, up by 80 kobo or 7.31 percent while Cadbury Nigeria plc

moved up from N5.15 to N5.65, adding 50kobo or 9.71percent. Investors in 3,874 deals exchanged 233,474,577 units valued at N2.239billion. GTBank, Zenith Bank, Access Bank, UBA, and FBN Holdings were actively traded stocks. Analysts noted that despite the attractiveness of the current price levels to new investors who are willing to invest for mid/ long term period, as well as opportunity for existing investors to average down their cost, the domestic bourse remains fragile in the face of uncertainties in the global and macro economy hence the possibility of sell pressure exist in the short term.

Coronavirus: GTBank gets approval for AGM to hold with attendance by proxy

uaranty Trust Bank plc had published the notice of its 30th Annual General Meeting (AGM) which is scheduled to hold on March 30, 2020. The AGM will hold same day and attendance will be by proxy as not more than 25 people will be allowed into the meeting venue, BusinessDay has learnt. The bank will be the first to take this step after the Coronavirus Pandemic forces others to either cancel or reschedule theirs till futher notice. GTBank is not unaware of the health hazards arising from the COVID-19 pandemic, which could be exacerbated by public gatherings. As a result of the said pandemic there have been global directives to adopt social distancing measures, leading to National and State Governments placing restrictions on public gatherings, meetings and movements. Lagos State, which is the venue of the Company’s AGM, has issued directives banning public gatherings of more than twenty-five (25) people. In view of the legal framework and corporate actions predicated on the AGM, such as payment of dividend, election of Audit Committee members, the filing of Annual Returns and approval of the

fees of external auditors, which actions will remain in abeyance if the AGM is postponed or cancelled, GTBank said it engaged the Regulators with a view to finding a solution that would balance the compliance with regulatory framework and minimize health hazards that could be exacerbated by such large gatherings. “We are pleased to inform you that the Corporate Affairs Commission (CAC) has graciously approved that the AGM should hold with ATTENDANCE BY PROXY to minimize social contact. “To this end, shareholders are encouraged to appoint proxies to represent them at the meeting, as the Company would abide by the Lagos State Government directive of not having more than twenty-five (25) people in a gathering (or any other number as may be permitted at the date of the meeting). Thus, as a law-abiding corporate citizen, the number of people that would be allowed into the venue of the AGM will be restricted to the number the Lagos State Government permits for social/public gatherings as at the date of the Meeting”, GTBank said in a notice seen by BusinessDay. “Kindly note that the measures above take into

consideration the provisions on quorum for the meeting, as quorum can be achieved either by physical attendance or by proxy. Shareholders are advised to appoint proxies and send the duly completed proxy form(s) to the Registrar, Datamax Registrars Limited, No. 2c, Gbagada Express Road, Gbagada Phase 1, Lagos State, or via email to datamax@datamaxregistrars.com, not less than 48 hours before March 30, 2020. “The Annual General Meeting would also be streamed live on the Bank’s website and Shareholders are encouraged to log in to observe proceedings”, the notice reads. “The shareholders who are able to attend the AGM would be properly screened at the security points and be required to undergo safety/health measures as directed by the Nigeria Centre for Disease Control and the Lagos State Ministry of Health. “It is important to note that these measures have been put in place to ensure the health and safety of our staff and esteemed shareholders and to further ensure that the operations of the Company are not disrupted as a result of the inability to carry out corporate actions”, GTBank stated.

Thursday 26 March 2020

BUSINESS DAY

news

COVID-19: ECOWAS to support member states, orders staff to work from home Innocent Odoh, Abuja

… visitors barred

resident of the Commission of the Economic Community of West African States (ECOWAS), Jean Claude Kassi Brou, has expressed the commission’s commitment to fully support Member States of the regional bloc in their efforts to curb the Covid-19 pandemic ravaging the region and the world. Brou made this declaration in a statement issued by the Communications Division of the Commission sighted by BusinessDay in Abuja on Tuesday. The president called on the population to comply with the directives issued by health authorities and observe basic hygiene instructions, saying “together and in solidarity, we shall defeat COVID-19.” The virus has already infected over 300,000 people and killed nearly 14,000 people around the world. Brou lamented the deaths witnessed so far in the region as a result of the virus including the three deaths in Burkina Faso and the one recorded on Monday in Nigeria amid nearly 200 confirmed cases across our region. He therefore offered his condolences to the countries and families of the diseased and wished a speedy recovery to the people affected by the virus. Meanwhile, the ECOWAS also announced it would not welcome visitors and had di-

rected staff members to work from home effective immediately as part of measures to prevent and contain the spread of the virus. John Azumah, secretary general of ECOWAS Parliament, in a memo directed to all staff members, said, “With effect from today (Monday) 23 March 2020, and until further notice, all staff are Strongly encouraged to work from home.” He said this was in line with the update issued by the ECOWAS President on measures being taken by ECOWAS to prevent and contain the spread of the Coronavirus. According to Azumah, “Directors, Heads of Divisions and Supervisors are to continue to assign work to staff members and all staff are expected to deliver on their assignments.” He urged all staff members to make themselves available and accessible by keeping their phone lines open for communication through voice and WhatsApp, and regularly check their emails. He noted that the purpose of these measures was to ensure that staff members stay at home to limit chances of infection and distribution of coronavirus, and directed that staff members must therefore desist from travelling out of their duty station in the course of these measures and added that they should stay strictly at home.

Only 500 ventilators in Nigeria as most oxygen plants have broken down – NDDC boss Ignatius Chukwu

igeria of about 200 million people has only 500 ventilators; worse, most of the few oxygen plants in the country have broken down. These are the findings of the Niger Delta Development Commission (NDDC), which is about to intervene in the Niger Delta on Covid-19. Acting managing director, Kemebradikumo Pondei, a professor of medicine and a man who should know, told newsmen covering the Commission on Tuesday, March 24, 2020, that the Commission just carried out a study to determine how to intervene. His inaugural lecture at the Niger Delta University (NDU) in 2019 was on the consequences of ignoring and neglecting viruses. He said, “This morning we

… Commission set to intervene in Niger Delta found that there are about 500 ventilators in the entire country. We are exploring avenues to see if we could intervene in providing ventilators. Similarly, oxygen is difficult to procure in the country. “The Federal Government through the ministry of health has a policy on oxygen which has not been disseminated very well. There are very few oxygen production plants in the country and some of the existing ones have actually broken down. But the provision of oxygen is key to the treatment.” The NDDC boss said the Commission was looking at contributing in the area of treatment because most of the activities so far had been on prevention, social distancing and hand washing as well as using sanitizers.

He remarked: “We are also looking at the drugs that have been used so far in other climes for treatment; there are some anti-viral drugs that we are trying to make available in a proactive manner. The NDDC is going a step above what others are doing.” He assured that the Commission would intervene to protect the people of the Niger Delta region from the dreaded Coronavirus disease, COVID-19. Pondei said as an intervention agency, the Commission would collaborate with other stakeholders in the fight against the COVID-19 pandemic. He said: “We have started looking at different isolation points in the nine states of the Niger Delta region. We are interacting with the states to find out what is on

ground and we are taking stock of the ventilators and oxygen in health facilities across the region.” The NDDC CEO observed that the treatment of the disease was not limited to drugs but included the ability to make sure that the patients were able to breathe properly and this should be done using ventilators. “As for testing, we are leaving that with Nigeria Centre for Disease Control (NCDC) which is coordinating the testing, but we will also like to let people know that most of the kits that are being used are not efficient and cannot detect COVID-19. This is because everybody has one way or another been exposed to Coronavirus and those kits just test for antibodies that already exist in most of us.”

COVID-19: Aero Contractors offers fleet to FG for airlift of relief items …as Air Peace suspends operations Friday midnight IFEOMA OKEKE

igeria’s oldest airline, Aero Contractors, has offered its aircraft both fixed wing and helicopters to the Federal Government of Nigeria for airlift of relief materials, medical equipment and personnel in the fight against the coronavirus pandemic. This was disclosed by Ado Sanusi, CEO of the company, who said it was the contribution of the airline in support of government’s fight against the virus and treatment of those already infected. Sanusi said the aircraft would henceforth be at the disposal of the Presidential Task Force for the Control of Coronavirus in Nigeria, headed by the Secretary to the Federal Government of Nigeria (SGF), Boss Mustapha. The Aero CEO urged wellmeaning individuals; corporate organisations and others to support the government to overcome this pandemic, which is resetting the world, but commended the efforts the government was making so far in the fight against the pandemic and urged that Nigerians should abide by the rules to get themselves protected from the scourge. “We at Aero Contractors have decided to offer our fleet to the federal government, all the aircraft in the fixed wing and rotary, to deploy at its disposal in the fight against COVID-19.

This is what we have decided to do to support government. “I am impressed by what the Task Force is doing so far and I believe that our little contributions will help them. They can use the aircraft to airlift relief materials, medical equipment and personnel. “I use this opportunity to implore Nigerians to follow instruction by the federal, state governments and the task force so that we will protect ourselves from this pandemic,” Sanusi said. Meanwhile, as concerted efforts are being made to stop the spread of the pandemic, Nigeria’s biggest carrier, Air Peace, has announced the suspension of all its flight service. In a statement signed by Toyin Olajide, its chief operating officer, said, “It is with a great sense of responsibility that we have decided, in the best interest of our nation, our passengers and workforce, to suspend scheduled flight operations for 23 days effective 23.00hrs on Friday (an hour before midnight on Friday) the 27th day of March, 2020 as a result of the Covid-19 pandemic. “This difficult decision was reached in order to, not only, support the efforts of the Federal Government and other stakeholders in curbing the spread of this virus in our nation but also to protect our teeming passengers and our staff from becoming victims of the pandemic.” www.businessday.ng

Customers of Zenith Bank, Agege Pen Cinema, Lagos on queue for screening before being allowed into the banking Pic by Olawale Amoo hall.

Commonwealth develops tracker to help Coronavirus: Osinbajo tests negative, countries monitor coronavirus continues self-isolation - Presidency HOPE MOSES-ASHIKE

he Commonwealth has developed a coronavirus tracker that shows daily cases in member countries. The tracker collects data from the World Health Organisation (WHO) and shows the total confirmed coronavirus cases and deaths in the affected member countries. The tool is designed to help countries prepare and respond to the pandemic. The virus has infected more than 218,000 people and killed 14,800 in over 100 countries. Assistant secretary-general, Nabeel Goheer, said: “Coronavirus has rapidly spread across the world affecting people, livelihoods and nations. “The Commonwealth, as an organisation that believes in innovation, has prepared this tracker that offers real-time and accurate insight for governments to make informed decisions on this worsening crisis.” As of March 23, the online

tracker showed 12,707 Commonwealth citizens had been infected and 340 had died in some member countries. A Commonwealth analysis suggests access to hospital beds and ventilators are limited in many countries, which could present a major challenge if coronavirus is not contained early enough. Kathleen McCourt, president of the Commonwealth Nurses and Midwives Federation, said: “Commonwealth nurses and midwives are at the forefront of the global Covid-19 response. “They are reporting inadequate access to personal protective equipment, being asked to work in unfamiliar environments and inconsistent or absent access to testing for healthcare workers “We are encouraging national organisations to contribute data to the Commonwealth coronavirus tracker. This data will better prepare and equip healthcare workers to tackle this global emergency.”

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Tony Ailemen, Abuja

igeria’s Vice President Yemi Osinbajo has tested negative to Coronavirus. The good news was announced on Wednesday morning by one of his aides, Babafemi Ojodu, on his twitter handle, @babaloveme3, who also disclosed that the Vice President had continued on self-isolation. The Senior Special Assistant to the President on Media and Publicity (Office of the Vice President), Laolu Akande, confirmed the result in a text message, adding that the Vice President had earlier taken the test conducted by the Nigeria Centre for Disease Control (NCDC). “Good morning sirs and ma: have been inundated with calls on whether in@Businessdayng

deed the VP had undergone a COVID19 test and the outcome. Yes, he has and results negative. An official tweet would follow. Thanks”. There has been anxiety over the status of the Vice President since Bauchi State governor, Bala Mohammed tested positive to the virus. Osinbajo had presided over a meeting of the National Economic Council (NEC) on Thursday last week, which was also attended by the Bauchi State governor. The Vice President had earlier on Wednesday attended the meeting of the Federal Executive Council presided over by President Muhammadu Buhari also at the Presidential Villa, which the president’s Chief of Staff, Abba Kyari, also attended.

36 BUSINESS DAY

Thursday 26 March 2020

news

COVID19: DG Nigerian Governors’ Forum, wife, children in self-isolation Solomon Ayado, Abuja

irector-general of the Nigeria Governors’ Forum (NGF), Asishana Okauru, his wife and children have gone into selfisolation over coronavirus. This followed the news that Bauchi State governor, Bala Muhammed, had tested positive to the disease. The NGF DG said he had contact with the affected governor during the last meeting of the forum held a week ago. Okauru said in a statement issued in Abuja that: “I wish to inform the general public that my wife together with my entire household will be proceeding on selfisolation. “We are taking this action following my exposure to His Excellency, Governor Bala Mohammed of Bauchi State who today announced the positive outcome of his test for COVID-19. “I attended different meetings of the Nigeria Governors’ Forum and the Nigerian Economic Council last week, which were also attended by the Bauchi State

Governor. “Consequently, my wife and I would be undergoing COVID-19 testing this week. All of the organizations to which my wife is affiliated have already begun ‘Work from Home’ in line with earlier Government directive. “All members of NGF secretariat that were exposed will be observing self-isolation. We encourage all those who were invited to the NGF meetings for presentations to also do same. “By our actions, we hope to encourage others who are exposed and not sure of their status to undergo self-isolation and make themselves available for the test, where applicable. “At the NGF meetings held, all necessary precautions as advised by the NCDC were taken, but we cannot make any assumptions about our status. We will self-isolate and take the stringent measures possible to protect the general public. “Coronavir us is real. Please follow all NCDC guidelines for COVID-19 and Stay at Home unless you provide essential services”.

Oil marketers adamant over importation of petrol, want clarification on market fundamentals Olusola Bello

igeria’s oil marketers have shun importation of Premium Motor Spirit (PMS) or petrol despite recent steps by the government to make the price of the product flexible. The government recently put price modulations mechanism in place so that petrol price would follow the dynamism in the price of crude oil. With the mechanism in place, if the price of crude goes up it would reflect in the price of petrol and verse visa. But some oil marketers told BusinessDay that the situation was not about price modulations only but that there should be clarifications on the market fundamentals

without which there cannot be import of petrol by them. Such fundamentals include the source of forex to buy the product and at what rate would the forex be sold to them, and what would be the margin given to them. Others are Nigeria Port Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) charges, platts rates and the premium, which is the cost of freight plus the profit margin of the importer. The chairman of Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said his members were thinking of importing provided the forex window is favourable. He said the landing cost might even be lower in the nearest future, as the price of

crude oil might go below $20 as being speculated in some quarters. Meanwhile, the refusal of the Nigerian National Petroleum Corporation (NNPC) to agree to pay for the products in the trucks that were yet to get to their destinations before the government crashed the price of petrol to N125 per litre from N145 is unsettling the downstream subsector of the oil and gas industry. Many of the trucks had loaded from Lagos and headed to different parts of the country to discharge when they were cut up with the new policy pronouncement. The fact that NNPC decides to recognise the fuel in the storage tanks and vessels and not the ones in the trucks does not provide the necessary succour to the dealers

and marketers, as they fear the consequences of losing several million of naira through no fault of theirs. Investigations reveal that NNPC is of the view that the fuel in the storage tanks and vessels could be monitored but the once in the trucks cannot. On account of this development, all the fuel bridging undertaking by major oil markers and members of Independent Marketers Association of Nigeria (IPMAN) are not going to be paid for. There are 300 trucks with an average of 40,000 litres parked around Abuja, which could not be discharged because they were purchased based on the old price of N145 per litre, but the marketers are not ready to discharge them by losing N20 per litre.

Delta procures dialysis machines, 19 ventilators, others for management of Covid-19 IDRIS UMAR MOMOH & MERCY ENOCH

elta State government Tuesday said it had procured dialysis machines, 19 ventilators and several monitors for the management of coronavirus pandemic in the state. The state governor, Ifeanyi Okowa, made this known in a state-wide broadcast in Asaba, the state capital. Okowa, who said the state had not recorded any case of COVID – 19, noted that some precautionary measures had been taken to prevent, as well as limit infection if it occurred in the state. He said as part of measures, all institutions of learning in the state which include primary, secondary and tertiary were to be closed down for a period of 30 days, starting from Wednesday. The governor also announced banned on all night clubs/lounges and cinemas, all town union gatherings, youth conferences/gatherings until further notice. He also directed that all burials and social events must be low-key, and must not attract crowds of more than 20 persons. Okowa, who said security agencies would be directed to enforce the compliance of the orders as well as on social distance, however, suspended till further notice biometric operations at all levels of government. He further directed that

all workers on grade levels 1 -12, except those on essential duties such as health staff, fire services, water corporation/agencies to stay at home. “Malls, supermarkets, restaurants, banks, hotels and bars must, in addition to providing Sanitizers at various entry points, ensure social distancing by allowing only few persons at a time. “All political gatherings and conferences, summits and gatherings involving more than 20 persons are banned until further notice. All buses and taxis must provide hand sanitizers for travellers. “However, all crusades and conferences must be suspended for now,” he said. He assured that the state government will convene a meeting with religious bodies and their leaders to enable them take far-reaching decisions on worship. The governor further explained that the state government had completed a purpose-built Isolation Centre at the Federal Medical Centre, Asaba. He also listed other isolation centres ready for use in the state to include the completed Central Hospital, Asaba, Delta State University Teaching Hospital, Oghara, and Central Hospital, Warri. He posited that personal protective equipment for health staff were in stock while packaged incentives for critical health staff who will be engaged in COVID-19 treatment and management had been put in place.

L-R: Motunrayo Babalola, brand manager, beauty and hygiene, Unilever Nigeria; ‘Soromidayo George, director, corporate affairs and sustainable business, Unilever Ghana and Nigeria; Tomi Coker, commissioner for health, Ogun State; Cephas Afebuameh, director, supply chain (Manufacturing), Unilever Nigeria; Olukemi Albert-Udoh, occupational site physician, Unilever Nigeria (Agbara), and Godfrey Adejumoh, head, corporate communications, Unilever Nigeria, at the presentation of Lifebuoy soaps to Ogun State Government in response to COVID-19 case in Ogun State.

Coronavirus: Nasarawa expands, equips Isolation Centre with additional 19 rooms … directs closure of public, private schools for a month Solomon Attah, Lafia

asarawa State government says it has expanded the current isolation centre with additional 19 rooms at the Dalhatu Araf Specialist Hospital (DASH), Lafia, preparatory for any reported case of Covid-19. The Chief Medical Director (CDM) of the DASH, Hassan Ikrama, who disclosed this in an interview with the newsmen in Lafia, said with its proximity to the Federal Capital Territory (FCT), Abuja, the state was fully ready to control the spread of the coronavirus. According to Ikrama, the management is ready to provide more rooms for isolation should there be suspected or confirmed cases more than the present capacity, and each of the room has one bed for the isolation of one person.

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He said the facility being one of the tertiary health facilities in the state had been equipped with the necessary kits to handle any reported case of infectious diseases, including COVID-19. He noted that the hospital had the personnel and facilities to tackle any outbreak in case it happened, adding that the centre had been equipped with the necessary kits to handle any reported case of infectious diseases. “The response team will use the same isolation centre and facilities used for the treatment of victims that had Lassa fever. We have made adequate arrangement presently for the isolation of suspected or confirmed cases of COVID-19,” the CDM added. He therefore advised the public to maintain social distance and improve on personal and environmental hygiene in order not to be infected with transmitted diseases. “The response team set up by the state government to handle

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any reported case of COVID-19 will use the same isolation centre and facilities used for the treatment of victims that had Lassa fever. “You know that we are still dealing with Lassa fever in the state, and the preparation of the isolation centre to be able to handle cases of Lassa fever started three months ago. “So, it is the same isolation centre and facilities that we will be using to handle people suspected to be having COVID-19. “We have expanded it and moved it to another section of the hospital which is bigger and better prepared to handle any case of Lassa fever again or COVID-19,” the CMD said. Meanwhile, Ahmed Yahaya, commissioner of health in the state, recently explained that the state had dedicated six phone numbers for the public to report any suspected case of COVID-19 to the response team for prompt @Businessdayng

action. The numbers as: 08036018579, 08035871718, 08033254549, 08036201904, 08032910826, and 08121243191. The commissioner stressed that the government had put proactive measures in place to ensure that the authorities were not taken unawares in case of any suspected case. He further explained that they had already set up two response teams domiciled at the Dalhatu Araf Specialist Hospital (DASH), Lafia, and the Federal Medical Centre Keffi for any probable occurrence. He said the members of the public should maintain personal and environmental hygiene in order not to be infected with transmitted diseases. Also, the fear of the virus has made the state government direct the closure of all schools in the state as from Monday, for a period of one month.

Thursday 26 March 2020

BUSINESS DAY

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Thursday 26 March 2020

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news Nigeria awaits tsunami of jobless as... Continued from page 1

Ikechukwu Okeke (2nd l), chief medical director, Command and Nigerian Army Officers Wives Association (NAOWA) Hospital; Tukur Buratai (m), chief of the army staff, and other senior Army officers, during the COAS facilities tour of the Command and NAOWA Hospital in Abuja.

Coronavirus: How political leaders... Continued from page 1

the president.

President Buhari and Vice President Osinbajo are selfisolating, though they have both tested negative, but experts say it is a close call for Nigeria where the healthcare system is underequipped to deal with the pandemic. On March 21, Kyari wrote a letter which was leaked on social media raising alarm about repeated violations of screening procedures at the nation’s airports by lawmakers. He counselled Femi Gbajabiamila, speaker of the House of Representatives, to immediately rein in the excesses of lawmakers and ask all those who have refused to submit to a medical test for COVID-19 to report themselves at the screening centres across the country. Yet, Kyari failed to heed his own counsel. The NCDC guidelines require all returning travellers to Nigeria and anyone who has been in close contact with a confirmed case of COVID-19 to self-isolate. The guidelines stipulate how returnees are required to move from arrival point in Nigeria to place of self-isolation where they would be monitored during the 14-day period. Kyari did not observe any of these. On March 16, he met with Adams Oshiomhole, chairman of the All Progressives Congress (APC), to resolve the impasse within the APC leadership. On March 17, he led a delegation which comprised George Akume, minister of special duties, Lai Mohammed, minister of information, culture, and tourism, Ramatu Tijjani, minister of state for FCT, Zubair Dada, minister of state for foreign affairs, and Garba Shehu, president’s spokesman, on a condolence visit to Yahaya Bello, Kogi State governor, over the death of his mother. On March 18, Kyari met with PresidentBuhariintheAsoRock

Villa, with other guests present. That same day, he attended the FederalExecutiveCouncil(FEC) alongsidethevicepresidentand most of the ministers. Kyari also attended a meeting of the Presidential Task Force tasked with the responsibility of coordinating the country’s response to the pandemic on March 21. In attendance at the meeting were ministers of health, aviation, and humanitarian affairs as well as the director-general of the NCDC. That same day he attended a wedding ceremony which had in attendance Governors Abdullahi Umar Ganduje of Kano State and Bello Masari of Katsina State. Mamman too was seen days later receiving guests, including a US official, and also attended the last FEC meeting. Some of Nigeria’s lawmakers too, after returning from trips to high-risk countries, also failed to self-isolate. Senate President Ahmed Lawan had to direct members a few days ago to observe isolation after returning from trips abroad. As of March 25, Nigeria has recorded 46 cases of COVID-19 infections and apart from a case of community transmission, all have been from persons who returned from high-risk countries and in many cases only presented themselves for tests after symptoms manifested. Since Kyari tested positive to COVID-19, Nigerians have expressed profound outrage over the recklessness of political leaders who returned from high-risk countries without observing isolation but rather chose to expose more people to the virus. “It is sad that the political class is leading this gross act of irresponsibility,” said Ukachi Chukwu, a broadcast journalist, on Facebook. “Kyari returned from a trip abroad and refused to isolate…more importantly, he exposed the president to the

virus. If the political class will not obey instructions and selfisolate, how can they expect ordinary citizens to do (the) same?” Chukwu queried. To be clear, negotiating a power deal is not the remit of Kyari, any more than being on the board of the national oil company, but with wide powers conferred on the president’s chief of staff, a position that is merely administrative and doesn’t even require senate confirmation, Kyari superintends over even government’s ministries, effectively running government. Chikwe Ihekweazu, head of the Nigerian Centre for Disease Control (NCDC), could not be reached for comment on this report. Calls to his phone Wednesday morning were not answered. However, the agency had said it would not provide details of the individuals that had been tested and their test results. In the UK and other parts of Europe, legislations mandating sanctions and fines have been passed to deal with reckless persons who fail to self-isolate. In Nigeria, Health Minister Osagie Ehanire threatened to publish the names of those who failed to self-isolate, but nothing further has been heard on the matter. In the absence of official sanctions for violating the guideline on self-isolation, as those who should pass and enforce the law are themselves reckless, some Nigerians may be taking a cue from their leaders, leading to the call for those who attended the Africa Magic Viewers’ Choice Awards (AMVCA) on March 14 to self-isolate as someone who returned from the UK and attended the event tested positive. If Nigerians take a cue from their leadership on compliance with health and safety measures, it would take less than a week for Nigeria to be in a similar situation as Italy given the weak health infrastructure in the country. “Despite having a threemonth head start, and with

the awareness that the nation’s weak health infrastructure would crumble under the strain of a full-blown outbreak of the pandemic, Nigeria failed to prepare adequately,” Olarewaju Rufai, a financial and strategy analyst, wrote in a commentary for BusinessDay. “Now, the nation is seemingly speeding toward a health and economic catastrophe,” Rufai said. Nigeria currently has less than 500 ventilators across the 36 states and the FCT, a medical doctor at LUTH said. The bed capacity of hospitals in Nigeria is half-a-bed for 1,000 people and there are less than one doctor for every 4,000 Nigerians. Nigeria’s health expenditure as a percentage of the Gross Domestic Product (GDP) averaged 3.4 percent between 2007 and 2016, compared with South Africa (6.5 percent) and Kenya (4.5 percent), according to data sourced from the World Bank. The underinvestment in the country’s healthcare follows years of neglect by the political elite who have promoted medical tourism of other countries. In 2016, President Buhari travelled to London over an ear infection. A year later he was back again in the country for undisclosed medical causes. President Buhari in 2017 spent no less than 150 days abroad on separate medical tourism trips that by some estimates cost the country around £250 per hour for medical care during his stay at the UK. Garba Shehu, the president’s spokesperson, in 2017 said the cost of keeping the presidential aircraft on standby in London airport is $1,300 per day, denying claims it cost £4,000. Using conservative estimates of 100 days and former official rate of 306/$ (which was the rate at that time), the trip to UK alone cost Nigeria $130,000 or N39.78 million (306/$) excluding cost of medical care, feeding and similar costs.

Analysts say the move, though commendable to contain the outbreak, could put more stress on sales activities of companies, already struggling with tumbling revenue. That could also be bad news for Nigerian workers, who may lose their jobs as firms take on all means in cutting down cost in order not to worsen the hit already felt from the slowdown of economic activities. And for those workers who do not receive severance pay, the financial impact could be highly devastating, except otherwise a fiscal stimulus by the government to cushion the effect, according to analysts who spoke to BusinessDay. “While we expect fiscal and monetary authorities to provide some stimulus and aid package to affected businesses, we still expect the impact of the COVID-19 pandemic to be severe,” said Ayorinde Akinloye, equity research analyst at CSL Stockbrokers. “Unemployment would definitely see a significant climb particularly in vulnerable industries like airlines, leisure and industries with discretionary products because revenue will suffer significantly,” Akinloye said. He explained that while similar developments have been seen in advanced economies like Canada reporting jobless claims of over 2 million people and the Fed expecting unemployment to reach 30 percent, Nigeria might be worse, reaching 40-50 percent levels. Already as of 2018, some 20.9 million people were reported to be unemployed. That’s almost the entire population of the country’s West African neighbour, Ghana. Analysts tip the rate to have almost doubled to 40 percent from its previous 23 percent levels. Data released by the International Air Transport Association, the umbrella body for 290 airlines globally, show that no fewer than 22,ooo people would be laid off from the aviation sector alone, as disruptions to air travel are forecast to shave off N160.58 billion from the industry as a result of a loss of approximately a million passengers, a move that would further pressure the country’s already ballooning jobless figure. But the economic effect from the coronavirus pandemic is not just peculiar to Nigeria, as the entire globe is reeling from the outbreak

which has infected over 170,000 people worldwide and has so far killed more than 6,500. Both industrial activities as well as financial markets have cratered, as schools and cultural institutions have closed, sports leagues have suspended, flights have been restricted, while sates have banned large gatherings, prompting the International Monetary Fund (IMF) to forecast a contraction of global growth. To cushion the effect of a downturn which might spark massive lay-off of workers, major countries have announced fiscal stimulus for employees of labour. For instance, aside from cutting down the tax of companies, the United State has passed a third legislative package aimed at increasing the unemployment benefits for all of workers to $600 perweek across the board from $385 per week to enable its citizens sort through the period. But that might not be the case for Africa’s biggest nation, which is suffering from both the health implication of the coronavirus pandemic and the fall in oil prices which has further cast a spell on its finances, said Oluwapelumi Joseph, head of investors relations at Lagos-based advisory firm, Africapractice. “While we might not have been able to ascertain what Nigeria’s unemployment number would look like due to the virus, given that the last time we saw an official number was Q3 2018, drawing from the numbers from advanced countries like America, it is safe to assume that we would see the same or even more in Nigeria. As businesses suffer, it would have a direct impact on the unemployment figure,” Joseph said. He explained that even the fiscal bill introduced by the House of Reps, which calls for various measures including a 50 percent tax credit to companies that have paid their PAYE, might not be able to cushion the huge effect on the workforce. “In other countries, we have seen a ‘helicopter money approach’ given to citizens directly; Nigeria does not have the central repository of identity management to make that possible and this becomes a challenge since the marginal utility of money is constant, hence, those who already have will want to receive more,” Joseph added.

Thursday 26 March 2020

BUSINESS DAY

news

PwC unveils solution to simplify tax process

Coronavirus: Obaseki goes on self-isolation

Hope Moses-Ashike

IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

wC Nigeria has unveiled TaxTim, a new solution that helps individuals and soleproprietors compute their tax and prepare their returns online. With the changes in the tax environment, individuals, soletraders and partnerships now have to pay more attention to tax matters, and ensure effective compliance including the prompt filing of their returns in line with the tax laws. State governments previously focused a lot of attention on PAYE but are now asking questions whether there are incomes from rental, ‘sidehustle’,trading or professions that individuals need to declare. One of the reasons often cited for why many businesses and individuals do not pay their taxes is because the process can be complex and cumbersome, and taxpayers are not sure of how much to compute or interpret the tax law. TaxTim, a web-based chatbot, helps taxpayers correctly compute their tax returns online with the help of a virtual assistant called Tim, so that they can file

the correct amount to the tax authorities. Kenneth Erikume, Partner Tax Reporting & Strategy, PwC Nigeria, said: “By answering simple questions that do not require any tax knowledge, Tim will convert your answers into a fully completed tax return, which taxpayers can then submit to the respective Internal Revenue Services. The entire process can be completed within 20 minutes. The real value here is that with TaxTim, the process of paying taxes has become a lot simpler and more efficient”. This solution is coming at an important time as the deadline for filing tax returns under Section 44 of personal income tax act (PITA) is 31st March. It is thus important that taxpayers realise that they have a civil obligation to compute and file their returns themselves, even if they are in paid employment, and TaxTim can assist them in this process. Already there are commercials by agencies like the Lagos Internal Revenue Services (LIRS) about this, with reminders on the penalties applicable to individuals who fail to do this by the due date.

… Edo Assembly speaker tests positive; wife, daughter tested negative, 111 persons being traced

do State governor, G odw in Obaseki, Wednesday went into self-isolation. The self-isolation was sequel to the governor’s close contact with the Bauchi State governor, Bala Muhammed, and Chief of Staff to the President, Abba Kyari, who have both tested positive to coronavirus. A statement by special adviser to the governor on media and communication strategy, Crusoe Osagie, said the governor had sent his samples for testing. According to Osagie, the governor has gone into selfisolation after the Governor

of Bauchi State, Bala Mohammed and Chief of Staff to the President, Abba Kyari, tested positive for coronavirus. “The governor had met Senator Mohammed at the Nigeria Governors Forum (NGF) and National Economic Council (NEC) meetings. He also visited Mr. Kyari,” he said, noting that although the governor was not showing any symptoms of the virus, but had taken the necessary precautions to self-isolate to protect people that might otherwise come in contact with him. Meanwhile, the state government Wednesday said

speaker of the Edo State House of Assembly, Frank Okiye, was the patient that tested positive to Coronavirus in the state. Philip Shaibu, the deputy governor, made the disclosure at a press briefing at Government House, Benin City. Recall that the state governor, Godwin Obaseki, on Monday at a press briefing confirmed the first case of COVID- 19 in the state. Obaseki said the first case tested positive to the virus, but, however, did not disclose the identity of the person. Shaibu said the speaker returned from the United Kingdom, and had gone into self-isolation immediately he

returned to the country. “We have one confirmed case in the state, and that case is the speaker of the Edo State House of Assembly, Frank Okiye. He is in a stable condition and his family has tested negative,” he said. The deputy governor said the state government had been able to track those that had closed contact with the speaker, saying the state was tracking a total of 111 persons, who might have had contact with the speaker, out of which 64 percent of the number had been tracked. He added that six persons had been isolated, samples taken from five persons and results being awaited.

Covid-19: Surge in Lagos markets, banks, superstores Joshua Bassey

here has been an upsurge in the number of persons visiting banks, pharmacies, superstores and markets in Lagos, Nigeria’s commercial city, which has the highest confirmed cases of the deadly Covid-19. As at the morning of Wednesday, March 25, the state has recorded 30 positive tests of the virus out of 46 confirmed cases in Nigeria. About 1,800 persons are currently under watch by the medical team of the government while 40 to 50 tests are carried out daily. The influx to markets and stores is consequent upon the directive, Tuesday, by the state government to shut certain categories of markets from Thursday, March 26, in a further move to contain the spread of Covid-19. Checks by BusinessDay show that although banks, pharmacies and food markets were not mentioned among the facilities the government

expects to close shop, yet residents thronged them to make large purchases. Bank branches in Ikeja and Alimosho local government areas of the state had to contain with the surge in customers. At many of the branches visited, especially in Alimosho, queues of customers making their way into the banking halls were conspicuous. There were also unusual long queues of people seeking to make withdrawals from Automated Teller Machines (ATMs) across locations visited. Specifically, branches of GTBank, Zenith, Access, First Bank, among others, along Ikotun-Idimu Road in Alimosho, recorded heavy presence of customers. Outsourced civil security personnel working with the banks were seen applying hand sanitizers on the customers and allowing controlled entry into the bank halls, resulting to extended queues within bank premises.

Coronavirus: IMF creates special $50bn to help Nigeria, other African countries

door of hope May have opened for Nigeria and other African countries troubled by Coronavirus after the International Monetary Fund announced Wednesday it has set aside a fund of fifty billion dollars for the continent. The Fund will provide the $50 billion in emergency facilities to countries in subSaharan Africa by early April to mitigate the economic shocks of the coronavirus. The IMF said $10 billion of this will be by way of concessional loans for low-income countries.

“Our member countries need us more than ever,” the IMF said on its website Wednesday. “Discussions between IMF teams and country officials are advancing quickly.” The IMF has received requests for emergency financing from almost 20 countries and expects 10 additional countries to seek its help, it said. Most African countries have closed international borders and grounded planes as the case count has climbed to more than 2,000 confirmed cases in less than a month.

L-R: Chinasa Ken-Ugwuh, sustainability consultant, PwC; John Obidi, founder, Headstart Africa; Linda Ochugbua, head digital subscription, BusinessDay Media; Sucex Bright, convener, AYLES (moderator); Mobola Akinkugbe, partner, Auctus Legal; Chukwuma Nwanze, executive director, CreditDirect, at the SME Clinic, themed Business Finance & Personal Development in Lagos.

Why Nigeria presents low number of coronavirus cases Olusola Bello, with agency report

igeria Centre for Disease Control (NCDC)’s limiting coronavirus tests to only people already showing symptoms of the disease or have come in contact with confirmed cases is depriving Nigerian citizens from knowing how deep the crisis is in the country. According to Quartz Africa Weekly Brief, an online publication, Nigeria, Africa’s most populous country, has a case count of fewer than 50 coronavirus cases. But what has become increasingly clear is that low number is not because the country has been lucky or particularly effective with preventing the spread of the disease – it is more likely because local authorities are simply not testing enough people. The latest available report by the NCDC shows the country had tested only 152 people as of March 22, 2020, when compared with South Africa that has conducted over 15,500 tests so far despite recording its index case a week later than Nigeria. NCDC however on Tuesday reported that there are two new

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cases of coronavirus in Nigeria. The agency via its official Twitter account on Tuesday, March 23, revealedthatonecaseisfromOsun while the other one is from Lagos. The tweet read: “Two new cases of #COVID19 have been confirmed inNigeria:1inLagosand1inOsun. “Bothcasesarereturningtravellers to Nigeria in the last seven days. This situation has caused panic among many Nigerians. Also on Tuesday, the Federal Government alerted Nigerians to the existence of an androidbased malicious and fraudulent coronavirus ransomware application. Minister of information and culture, Lai Mohammed, raised the alarm via a press statement and said the application claimed to provide updates on the virus and infections near the user, and warned the general public not to download the app and to seek updates on the pandemic only from appropriate authorities, adding that it was fake. As a relief, Chinese billionaire, Jack Ma, has fulfilled his promise to donate medical equipment to tackle coronavirus in Africa. Nigeria has now received its own donation as an Ethiopian

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Airlines cargo plane landed on Tuesday. The NCDC is said to have adopted a strategy of limiting tests to only people already showing symptoms of the disease or have come in contact with confirmed cases. It is similar to approachesadoptedintheUnited States and the United Kingdom but in comparison to those countries, Nigeria’s test numbers are far lower. The UK had tested over 78,000peopleasofMarch22,2020 The slow pace of Nigeria’s tests has been attributed to largely lack of capacity. While it can conduct tests locally, Nigeria lacks the manpower or capacity to do so on a very large scale. Quartz Africa Weekly Brief said despite ramping up testing in recent days, the UK remains short of its 10,000 tests per day target. Thedangerhoweveristhat,unlike the UK, Nigeria’s public health infrastructure is starkly short on critical medical equipment and facilities to deal with a full-blown outbreak: there are reportedly fewer than 500 ventilators across the entire country. Beyond low testing figures, there are also questions over Nigeria’s handling of the outbreak since confirming its index case at @Businessdayng

the end of February. Despite evidence that early confirmed cases comprised mainly of foreign travelers and Nigerians returning from high-risk countries, the Nigerian government did not move to limit incoming international flights until March23,2020 following widespread calls from civic society groups. Several other African countries had adopted stiffer measures on international flights a week earlier to mitigate the risk of importing the virus. While quarantine is mandatory in countries like Kenya, Ghana and Uganda for nationals and residents coming from high-risk countries, it has largely remained an advisory measure in Nigeria. As a result, health officials are scrambling for contact tracing after travelers on flights that arrived the country, in some cases as far back as ten days ago, test positive. It’s a task made more difficult by the reality that, without functioning databases for contact details, the government will largely rely on public service announcements to find possible contacts. Nigeria’s minister of health has already suggested it’s likely that infected persons are currently in hiding.

Thursday 26 March 2020

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Thursday 26 March 2020

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Thursday 26 March 2020

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Thursday 26 March 2020

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FINANCIAL TIMES

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US congressional leaders agree on $2tn stimulus deal

Senate expected to vote on package to address coronavirus fallout on Wednesday Lauren Fedor

S lawmakers have struck a $2tn stimulus deal to provide economic relief to American taxpayers and businesses hit by the coronavirus pandemic, in what stands to be the largest congressional bailout in US history. Forged through late-night talks that stretched into the early hours of Wednesday morning, the draft package amounts to the world’s biggest fiscal response to a crisis that has brought much of the global economy to a standstill. While the legislation still requires formal approval by Congress, the breakthrough has lifted the confidence of investors battered by weeks of grim developments as the virus has coursed through countries. “At last, we have a deal,” said Mitch McConnell, the Senate majority leader, after marathon negotiations. “The Senate has reached a bipartisan agreement on a historic relief package for this pandemic,” he said, calling the measure a “wartime level of investment into our nation”. The Kentucky Republican had been wrangling with Chuck Schumer, the Senate’s most senior Democrat, since Saturday over proposals for stimulus packages that would include bailouts for large companies and means-tested “helicopter money” for US taxpayers. Editor’s note The Financial Times is mak-

US Treasury Secretary Steven Mnuchin, centre, led the negotiations for the White House, shuttling between the offices of Republican Senate leader Mitch McConnell and his Democratic counterpart Charles Schumer © Getty

ing key coronavirus coverage free to read to help everyone stay informed. Find the latest here. Mr McConnell said the Senate would pass the legislation “later” on Wednesday, with the Senate scheduled to reconvene at midday. The full text of the agreement was expected to be published later in the day. “Like all compromises, this bill is far from perfect, but we believe the legislation has been improved significantly to warrant its quick consideration and passing,” said Mr Schumer.

The Democrat said in a letter to colleagues that the deal included four extra months of unemployment insurance for those who lose their jobs, and prohibited bailed-out airlines from buying back stock or issuing bonuses to chief executives while they received taxpayer support. Mr Schumer’s office also said the bill prohibited businesses controlled by US president Donald Trump, vice-president Mike Pence, members of Congress and other senior government officials from receiving government aid.

Stocks rose on news of the deal. The FTSE 100 opened around 1.5 per cent higher and the Europewide Stoxx 600 rose 1.8 per cent. The moves followed a surge in Asia, with Japan’s Topix closing up 6.9 per cent and South Korea’s Kospi finishing the day 5.5 per cent higher. China’s CSI 300 was up 2.7 per cent and Hong Kong’s Hang Seng index was 3.1 per cent higher in late afternoon trading. US shares had risen on Tuesday as lawmakers signalled a deal was close, with the benchmark S&P 500 closing up 9.4 per cent and the Nasdaq finishing the day 8.1

per cent higher. US Treasury secretary Steven Mnuchin had negotiated on behalf of the White House, spending much of Tuesday conducting shuttle diplomacy between the offices of Mr McConnell and Mr Schumer. At a White House press conference on Tuesday, Larry Kudlow, director of the White House’s National Economic Council, said the stimulus would “position” the US economy for an “economic rebound later this year”. “We are heading for a rough period, but it is only going to be weeks we think, weeks and months. It’s not going to be years, that’s for sure,” he added. Mr Trump said earlier that he would “love to have the country opened up and just raring to go by Easter” on April 12, a timeline that flies in the face of the recommendations of health experts. They have cautioned that “social distancing” and business closures will need to remain in place for longer in order to slow the spread of Covid-19. The deal will need to be approved by both the Republicancontrolled Senate and the Democrat-held House. While the Senate remains in session, most House members are not in Washington, raising questions about how soon a vote could be held in the lower chamber. Leading House Democrats want to pass the bill through “unanimous consent”, which would not require lawmakers to fly back to Washington but could lead to the legislation being blocked if a single member of Congress objected.

US shale bust wrecks hopes for energy independence

Sun sets on dream of energy self-sufficiency as drillers slash capex after oil price collapse Derek Brower

he shale revolution that made the US the world’s biggest oil and gas producer and offered the prospect of energy selfsufficiency has run out of steam, as drillers slash spending and production in response to the price war and coronavirus-led collapse of crude demand. US oil output, now a record high of 13m barrels a day, will begin falling steeply in the second half of this year and could drop 2.5m b/d by the end of 2021, analysts have calculated. Even a modest further oil price drop could cut US production back by almost 4m b/d, fully reversing three years of increases. “Shale growth helped to lead the US out of the Great Recession, but may fall victim to the Covid19-fuelled recession,” said Jamie Webster, head of BCG’s Center for Energy Impact.

The capex cuts have come thick and fast since the collapse of the Saudi-Russian oil pact on March 6 sparked a market rout that has more than halved the price of West Texas Intermediate, the US benchmark, to about $23 a barrel. Occidental, Apache, Diamondback Energy, Continental Resources, ConocoPhillips, Concho Resources, Pioneer Natural Resources, Parsley Energy and Cimarex are among the shale patch’s big producers to have collectively wiped billions from planned spending. On Tuesday supermajor Chevron joined them, saying it would reduce its capex in the Permian shale this year by $2bn. The number of its operating rigs in the region would soon drop by more than half and output by year-end would be a fifth lower than planned. In total, capex across the shale sector will fall from $107bn last year to $64bn this year, said Rystad Energy, a consultancy — and the www.businessday.ng

drop could be much steeper unless oil prices rise significantly. The collapse in activity will cause widespread economic pain in oil-producing regions of the US, where extensive services sectors — from hospitality to fracking crews — have sprouted up during three years of brisk business. It will also end the production boom that reduced the US’s dependence on foreign oil supplies — much to the delight of the country’s leadership — and allowed for a steady rise in crude exports. Rystad said it expected a decline of 1m b/d this year and another 1.6m to be lost in 2021, if WTI traded at $30 a barrel. At $20 a barrel — an unthinkable price a few weeks ago but now forecast by Goldman Sachs for the second quarter of this year — production would fall by 3.6m b/d. Shale thrives at $100 a barrel, survives at $50, and dies at $25 Jamie Webster, BCG Center for

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Energy Impact Those declines are only slightly larger than those forecast by others. Output will drop 1.4m b/d by the third quarter of next year, Goldman predicted this week. RS Energy Group, a consultancy, said 700,000 b/d would be lost this year and 1.1m in 2021. “With WTI at $30 or Henry at $2 nothing works at scale in North America,” said Dane Gregoris, a director at RSEG, referring also to the record low prices now being paid for Henry Hub, the natural gas benchmark. RSEG estimates the break-even WTI price for production in the Permian, shale’s choicest area, to be $43 a barrel. During earnings season earlier this year, shale producers sought to assure shareholders that they were mending their ways, curbing extravagant growth plans to return investors’ cash and focus on living with a price of $55 a barrel. Then the market and producers’ models @Businessdayng

crashed. The oil rig count in the US, a good indicator of forthcoming activity, fell by 19 last week to 664, according to services company Baker Hughes, a division of General Electric. Rystad said it expected a 60 per cent decline in the count by year end. US producers are faced not just with the collapse in global oil demand as a result of the coronavirus pandemic but a forthcoming wave of new supply from Saudi Arabia and Russia, whose alliance to withhold production morphed into a price war earlier this month. Russia saw the drop in demand and deteriorating market as an opportunity to squeeze out producers in America. Equity valuations across the US oil and gas sector have slumped on average by almost half since just before the Saudi-Russia deal collapsed, about 20 percentage points worse than the S&P 500.

Thursday 26 March 2020

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Stock markets shed big gains as investors weigh stimulus plans Rally loses momentum amid persistent concern over viral outbreak Hudson Lockett, Leo Lewis and Adam Samson

historic rebound in global financial markets lost momentum on Wednesday, showing investors remain nervous even despite the farreaching efforts of governments and central banks to mitigate the economic impact of the Covid-19 pandemic. Bourses across Europe had kicked off the day on a high note after the US Congress struck a deal to provide $2tn in relief to taxpayers and businesses struggling with the impact of the virus, but the rally fizzled before lunch time. In recent dealings, the continent-wide Stoxx 600 was flat on the day, having jumped close to 5 per cent earlier. The choppy price moves come after the index on Tuesday posted its third-best day on record. Gains in London’s FTSE 100 also petered out to a large extent, leaving the barometer up less than 1 per cent. Markets, rocked in recent weeks by the Covid-19 outbreak, have been bolstered by unprecedented stimulus measures from central banks and governments around the world. Wall Street enjoyed its biggest rally in over a decade on Tuesday. However, investors remained deeply sceptical over whether markets had really hit bottom. Tai Hui, chief Asia market strategist at JPMorgan Asset Management, said the plan agreed in the US Congress early on Wednesday was a “welcome sign” but that “the challenge ahead remains

Markets have been bolstered by unprecedented stimulus measures from central banks and governments around the world in response to the coronavirus crisis

considerable”. This week’s equity rebound could be a “sucker rally” in light of the challenges still facing global markets, said Robert Carnell, head of Asia-Pacific research at ING. The rapid increase in coronavirus cases worldwide was “eye-watering”, he said. The global Covid-19 case count has reached 424,000 people with 18,900 dying from the viral infection. India late on Tuesday moved to lock down the entire country of 1.37bn people — one of the world’s biggest emerging market economies. The situation also continued

to worsen in the US, and in New York particularly. S&P 500 were down 1.4 per cent, surrendering earlier gains and suggesting Wall Street may open lower after the best day since 2008. Dealers in Tokyo earlier warned that the two-day surge in Japanese stocks was disconnected from economic fundamentals. “We are seeing markets dominated by fast money. Some long-only clients are coming back to scoop up the names they liked all along, but mostly this is the momentum traders dictating the direction of travel

again,” said one broker. In Tokyo, where some brokers suggested markets may have hit a floor last week, the Nikkei 225 average surged 5.8 per cent to reclaim the 19,000 line. The gains for the Topix took it above 1,400 points. The return to those levels, said traders, would come as a relief to the central bank, which has ploughed more than ¥1tn ($9bn) into the Japanese equity market in March in a bid to support markets. The Bank of Japan’s now decade-long programme of buying exchange traded funds is contro-

versial. The Nikkei’s recent plunge below 19,000, according to JPMorgan calculations, had taken the central bank’s portfolio into the red and the BoJ potentially into hot water politically. Haven assets were under mild selling pressure, with the 10-year US Treasury yield edging higher by 0.01 percentage points to 0.83 per cent. Yields rise when bond prices fall. Oil prices had initially risen on Wednesday but turned directions with stocks. Brent crude was recently lower by 3.8 per cent at $26.12 a barrel.

Credit Suisse cuts ex-chief Tidjane Thiam’s bonus after spying scandal Short-term incentive for 2019 cut by a third, bank’s annual report reveals Stephen Morris

redit Suisse has slashed the bonus of its former chief executive Tidjane Thiam for his role in a corporate spying scandal that damaged the Swiss lender’s reputation. Mr Thiam’s so-called “short-term incentive” bonus for 2019 was cut by a third to SFr3.3m ($3.4m) from SFr4.9m, according to the bank’s annual report on Wednesday. Overall, he was awarded SFr10.2m last year, down 17 per cent from SFr12.3m in 2018, and lost all of his 2020 longterm incentive awards. Kai Nargolwala, chair of the board’s compensation committee, said in the report that Mr Thiam “led by example in terms of personal commitment to the group’s conduct and ethics standards” but his “nonfinancial assessment score has been reduced” because “the observation matter had a significant impact”. Still, after being awarded “good

Tidjane Thiam, left, was ousted from Credit Suisse after he lost a bruising boardroom battle with the bank’s chairman, Urs Rohner, right © Reuters

leaver” status when he left last month, Mr Thiam was allowed to keep his 1.4m shares valued at about SFr19m at the end of 2019. This year Credit Suisse’s stock has since fallen 41 per cent, leaving them worth substantially less. Mr Thiam was ousted after he lost a bruising boardroom batwww.businessday.ng

tle with the bank’s chairman Urs Rohner. His departure followed months of damaging revelations linked to two cases of intrusive surveillance conducted against departing senior employees, including wealth management boss, Iqbal Khan, who left for rival UBS. Credit Suisse reiterated that it

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had found no evidence Mr Thiam was directly involved in ordering the observation. Swiss regulator Finma is investigating the affair and is interviewing the people involved, and reviewing their phone records and emails, according to people familiar with the matter. Next month, the 57-year-old French-Ivorian is set to join the board of French luxury group Kering, which is owned by the billionaire Pinault family and includes brands such as Gucci, Yves Saint Laurent and Alexander McQueen. Pierre-Olivier Bouée, Mr Thiam’s longstanding lieutenant and Credit Suisse’s ex-chief operating officer, lost all of his SFr2m salary and deferred compensation after he was fired for admitting he personally ordered the spying. Mr Thiam is credited with repositioning Credit Suisse away from volatile trading and expanding its wealth management division. On his final day in charge last month @Businessdayng

he reported that the bank’s pre-tax profit jumped 40 per cent in 2019 to SFr4.7bn, the highest level since 2010. The executive board collectively earned around SFr77m last year, a decline of 17 per cent in 2018, the report said. Overall, the bank group bonus pool was cut 1 per cent to SFr3.2bn, confirming a Financial Times report from the start of February. Credit Suisse’s new chief executive Thomas Gottstein will be paid a base salary of SFr2.7m — SFr300,000 less than his predecessor — and his bonus multipliers are lower, meaning he will initially earn around 15 per cent less. The board decided this because Mr Gottstein is a novice chief executive yet to prove he can run a global company, unlike Mr Thiam, who joined after a largely successful period at insurer Prudential, according to a person familiar with the decision.

Thursday 26 March 2020

BUSINESS DAY

ANALYSIS

The new wartime economy in the era of coronavirus

Recalling the second world war, the UK government is defining ‘rules of the road’ for businesses and citizens Jonathan Ford

n the dog days of July 1938, amid German rumblings in Czechoslovakia’s Sudetenland, the British government led by Neville Chamberlain acquired a collection of fields and a sewage works beside Castle Bromwich airfield in the West Midlands. For a purchase that attracted little notice, it would have a large impact on world events. Over the next year, and with the expenditure of some £4m of public money — a huge amount at the time — this unprepossessing location was transformed into a giant manufacturing plant under the aegis of the UK’s “shadow factories” scheme. The idea behind the plan was to spur rearmament by expanding the country’s capacity to make military aircraft beyond that which the private sector was willing or able to finance. Whole plants would be built in advance of demand for their output. Castle Bromwich was one of a number of such facilities scattered round the country. Initially under the management of Wolseley Motors, and later the aircraft maker VickersArmstrongs, the publicly funded plant expanded to employ 12,000 people, taking its first orders in the summer of 1939. When production finally ceased in July 1945, it had manufactured more than half the nation’s 20,000 Spitfire fighter aircraft alongside hundreds of Lancaster bombers and helped to secure national survival. Last week, that same Castle Bromwich plant was back in the news. No longer an aircraft manufacturing site but a production facility for carmaker Jaguar Land Rover, its owners announced that the factory’s 1,900 workers, along with others on its five UK sites, would be downing tools until at least April 20. JLR said it was “minimising the spread of the coronavirus”, adding that it

would “work towards an orderly return to production once conditions permit”. In recent days, UK government ministers have invoked the spirit of wartime mobilisation, calling for a wholehearted national effort to stem the advance of coronavirus. The prime minister, Boris Johnson, has talked about running a “wartime government” taking steps that are “unprecedented since world war two”, while the health secretary, Matt Hancock, has called for “one gigantic national effort” on a par with the time “when our cities were pounded during the Blitz”. Similar rhetoric is being deployed by ministers in other countries. Editor’s note The Financial Times is making key coronavirus coverage free to read to help everyone stay informed. Find the latest here. With its memories of communal sacrifice leading to ultimate triumph, the second world war looms large in Britain’s national consciousness. But as the fate of Castle Bromwich suggests, the “mobilisation” required to beat coronavirus may have a different shape and rhythm from those distant events. “The prime economic challenge of the second world war was how to mobilise and direct resources,” says Duncan Weldon, an economic historian. “Our present ones are almost the opposite, being about how to manage the reality of national demobilisation in order to stop the virus spreading.” In his 1940 book How to Pay for the War, the economist John Maynard Keynes wrote of the imperative that “Britain’s war output [should be] as large as we know how to organise”, leaving only a “definite residual available for civilian consumption”. It meant the state commandeering the lion’s share of resources for war production, and taking measures such as higher taxes www.businessday.ng

to reduce consumer demand. These steps were needed because of steeply rising household incomes — the product of wartime full employment. This, it was feared, might tempt producers to divert capacity to make consumption goods. “We cannot allow a matter of mere money in the pocket of the public to have significant influence on the amount we are allowed to consume,” Keynes observed. With the government now directing most retail businesses to shut, and many companies slowing production voluntarily either because of ebbing demand for their products or a desire to prevent infection, there are few capacity constraints (short of illness) to stop ministers corralling the resources they need to combat the virus. Outside of a few areas, such as food, consumer demand is slumping. “You needed central direction in the war to stop carmakers producing cars and get them to make Spitfires,” says Mr Weldon. “But now if the government wants companies like JCB or Dyson to turn over production to medical supplies, that ought to be possible using ordinary contracts. After all, JCB isn’t likely to be selling that many diggers over the coming months.” The bigger challenge for the British government — and for all other countries currently reeling from the pandemic — is to make sure its demobilisation strategy is effective. Without that, its hopes of containing the virus will be in vain. Rishi Sunak, the chancellor, has announced far-reaching measures designed to underwrite the costs of keeping much of the workforce idle without leading to mass lay-offs. To encourage this form of economic hibernation, the government has undertaken to pay up to 80 per cent of affected workers’ wages for an openended period. It is a measure that could have transformative

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consequences for the public finances. Estimates suggest it could cost the government roughly £3.5bn for every million workers for three months’ operation. Beyond the scheme, additional support for people on welfare benefits is estimated to cost £7bn. Unlike wartime, this will happen at a time of plunging tax receipts. All told, these and other measures could place burdens on Britain’s finances that might approach the 1939-45 period, when budget deficits exceeded 20 per cent of Britain’s gross domestic product between 1941 and 1945, peaking at 26.7 per cent in 1942. “It depends how long the virus goes on but the consequences for the public finances may end up looking quite familiar to someone who financed the war,” says Mr Weldon. Another area where there are echoes of past conflicts is in the debate over the balance between voluntary and compulsory measures. Mr Johnson’s government has faced criticism for its initial reluctanceto lay down rules, most notably in ordering nonessential companies or schools to close to prevent the spread of infection. It has not stepped in to control the distribution of food and essential items, or their prices, despite evidence of panic buying. Supermarkets have been left to improvise their own responses, in spite of competition rules that inhibit co-operation between them. These were softened last week to permit them to share data and distribution depots. Social distancing measures have been lightly enforced, although rules announced on Monday may mark a change, with emergency legislation now in prospect. Mr Johnson has made much of his attachment to British liberties, urging the public to take the initiative and do the right thing. If the government wants companies like JCB or Dyson to turn @Businessdayng

over production to medical supplies, that ought to be possible Duncan Weldon According to Daniel Todman, author of Britain’s War, a social history of the second world war, this is reminiscent of the autumn of 1939, when the Chamberlain government debated whether to bring in food rationing. “The argument was over how fast to introduce it and whether to move quickly to a compulsory system,” he says. “Lots of Tories were worried, not admittedly Chamberlain who favoured a big state in wartime, but Churchill was very anti. He felt it would be seen as a sign of weakness and a threat to traditional liberties.” If the second world war is a guide, compulsion will ramp up quickly if the present lockdown endures. Indeed, according to Mark Harrison, emeritus professor of economics at Warwick university, this might enjoy widespread public support. “Societies that are under stress welcome the clarity of clear rules and penalties,” he argues, likening it to a form of moral mobilisation. The second world war saw a proliferation of such regulations, with particularly fierce punishments reserved for infractions such as looting or blackout breaches. More than 1m citizens were prosecuted for infringements, many of them seemingly petty, according to Mr Harrison. They included one unfortunate who was arrested during the Blitz attacks on British cities after handing round a bottle of brandy he had retrieved from the ruins of a pub through which he was hunting amid corpses for bomb blast survivors. Yet despite their ferocity, these rules were not resented by the public. Keynes likened them to “rules of the road”, which got around the collective action problem of everyone abiding by Continues on page 46

Thursday 26 March 2020

BUSINESS DAY

NATIONAL NEWS

If Covid-19 is not beaten in Africa it will return to haunt us all Only a global victory can end this pandemic, not a temporary rich countries’ win Abiy Ahmed

here is a major flaw in the strategy to deal with the coronavirus pandemic. Advanced economies are unveiling unprecedented economic stimulus packages. African countries, by contrast, lack the wherewithal to make similarly meaningful interventions. Yet if the virus is not defeated in Africa, it will only bounce back to the rest of the world. That is why the current strategy of unco-ordinated country-specific measures, while understandable, is myopic, unsustainable and potentially counter-productive. A virus that ignores borders cannot be tackled successfully like this. We can defeat this invisible and vicious adversary — but only with global leadership. Without that, Africa may suffer the worst, yet it will not be the last. We are all in this together, and we must work together to the end. Fragile and vulnerable at the best of times, African economies are staring at an abyss. Let me illustrate this with the situation in my own country. Ethiopia has made steady progress in the provision of health services over the past two decades. But nothing has prepared us for threats posed by Covid-19. Access to basic health services remains the exception rather than the norm. Even taking such common-sense precautions as washing hands is often an unaffordable luxury to the

Ethiopia’s PM Abiy Ahmed: ‘The WHO must be empowered and resourced sufficiently to co-ordinate responses globally and directly to assist governments in developing countries’ © AFP

half of the population who lack access to clean water. Even seemingly costless social distancing is hard to implement. Our lifestyle is deeply communal, with extended families traditionally sharing the burdens and bounties of life together, eating meals from the same plate. Our traditional and rain-dependent agriculture is dictated by the fixed timeframes of weather cycles in which planting, weeding and harvesting must happen. The slightest disruption to that chain, even for a brief period, can spell disaster, further jeopardising already tenuous food supply and food security. Take Ethiopian Airlines, the country’s largest company,

which accounts for 3 per cent of national output and is a major source of hard currency. It will be pushed to the brink as its business is upended by the pandemic. Shortage of hard currency will then make it all but impossible to source essential medical supplies and equipment from abroad. The cost of servicing our debts is already often more than our annual health budgets. The list continues. This grim reality is not unique to Ethiopia. It is shared by most African countries. But if they do not take appropriate measures to tackle the pandemic, no country in the world is safe. Momentary victory by a rich country in controlling the virus at a national level, coupled with

travel bans and border closures, may give a semblance of accomplishment. But we all know this is a stopgap. Only global victory can bring this pandemic to an end. Covid-19 teaches us that we are all global citizens connected by a single virus that recognises none of our natural or manmade diversity: not the colour of our skin, nor our passports, or the gods we worship. For the virus, what matters is the fact of our common humanity. That is why the strategy to tackle the human and economic cost of this global scourge must be global in design and application. Health is a worldwide public good. It requires global action guided by a sense of

global solidarity. But Covid-19 has also exposed our dark underbelly. The world community desperately needs global-level leadership to tackle swiftly pandemics such as this, and in a way that is institutionalised rather than ad hoc. A good place to start is with the World Health Organization. As countries with the necessary resources focus on fighting the pandemic through their national institutions, the WHO must be empowered and resourced sufficiently to coordinate responses globally and directly to assist governments in developing countries. In the meantime, the G20 must provide collective leadership for a co-ordinated global response. There is no time to waste: millions of lives are at risk. Building on what has been announced by international financial institutions, the G20 must launch a global fund to prevent the collapse of health systems in Africa. The institutions need to establish a facility to provide budgetary support to African countries. The issue of resolving Africa’s debt burden also needs to be put back on the table as a matter of urgency. Finally, all of Africa’s development partners must ensure that their development aid budgets remain ringfenced and are not diverted to domestic priorities. This is where true humanity and solidarity must be demonstrated. If such aid were ever necessary in Africa, it is now more than ever before.

The new wartime economy in the era of coronavirus Continued from page 45 irksome regulations that were all to no avail if others did not comply. He dismissed the threat to liberty, describing their prescription as the “perfect” vehicle for “social action, where everyone can be protected by making a certain rule of behaviour universal”. Most comparisons with the present crisis focus on the second world war. But as Mr Weldon points out, this was a conflict for which Britain was relatively well prepared. “For several years before 1939, everyone could see that a conflict was likely so there was time to prepare,” he says. “Civil servants had spent years working out the lessons of the first war, so when the second came along they had sheaves of plans prepared they could consult.” The coronavirus crisis is of a different stripe. It is not just that Britain had no detailed contingencies to hand, having largely

brushed off warnings about the risks posed by pandemics — unlike some Asian countries that were affected by epidemics such as Sars and swine flu. What is also striking is the sheer scale of the sudden dislocation, which has provoked antagonism between countries, impeded movement across borders and disrupted trade around the world. In that sense, it bears more resemblance to the first world war, which fell upon the public out of a seemingly clear sky. Just as in 1914, the biggest immediate casualties have been the financial markets. In his first world war memoirs David Lloyd George, later prime minister but chancellor at the start of the conflict, describes how London’s role as the financier of global trade was shattered in days. Cross-border business cratered, leaving creditors unable to pay their debts and banks loaded with potentially defaulted assets. www.businessday.ng

The recent shock bears some resemblance to that period. Markets have slumped because of uncertainty about the duration and nature of the disturbance. Will it end quickly? Is it a question of liquidity or is the solvency of participants in doubt? The aim now for central bankers should be to keep core markets open rather than trying to keep them up by simply buying everything Paul Tucker The ultimate response remains uncertain. The world is transfixed by memories of 2008, and the powerful stimuli that were administered to markets in the form of massive asset purchases by central banks. A number of central banks, including the Bank of England, are repeating those measures. But some think the authorities should look more to 1914, where Britain focused simply on keeping markets functioning and not preordaining at what level they should trade.

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“In markets, the aim now for central bankers should be to keep core markets open rather than trying to keep them up by simply buying everything,” says Paul Tucker, chair of the Systemic Risk Council and a former deputy governor of the Bank of England. He argues that the aim should not be to stimulate an economy, which the government is anyway trying to tamp down with its measures to suppress the virus. It should, instead, be to avoid the economy falling into a vortex and for government to ensure that citizens can live decently and businesses are not unnecessarily destroyed. “If markets cannot function, well then the central bank’s job is to ensure the government is funded. But you shouldn’t start from there. You should try to be a catalyst and not automatically buy something that Larry Fink [chief executive of investment group BlackRock] and others might still buy.” @Businessdayng

No one can know how long the coronavirus crisis will last. But one lesson of wartime politics is that governments cannot simply demand endless sacrifice. At some point, politicians must turn their minds towards the pay-off for all that blood, sweat and tears. If the virus endures, Mr Todman suggests that this might involve some sort of generational compact to benefit the young on whose shoulders much of this inflated national indebtedness will fall. “The obvious thing would be some combination of improved lifestyle, more sustainable employment and the avoidance of climate catastrophe,” he says. This could even be a political opportunity. It was after all not Churchill but the Labour party under Clement Attlee who seized the possibilities of the 1942 Beveridge Report on social welfare, paving the way for the National Health Service. “It would be nice to see some ambitious post-pandemic settle-

Thursday 26 March 2020

BUSINESS DAY

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Thursday 26 March 2020

BUSINESS DAY

Garden City Business Digest Eastern port police, customs, complete solidarity to up their game • Due process to rule all clearances Ignatius Chukwu

he police authorities governing the eastern ports command said they are solidifying sustainable relationship with other security agencies at the ports to close all loopholes and give effective policing to preserve lives and boost revenue generation as well as seamless movement of goods at the ports. The command thus said it has specifically started a relationship with the customs command in the region to give the region a more professional performance outlook. The indication to this emerged last week when the Commissioner of Police in charge of the eastern command, Yinusa Ogwuche, played host to the newlyposted Customs Comptroller, Kano State-born Awwal Baba Mohammed. At the event which took place at the Port Police Command headquarters at the Ni-

CP of Eastern Ports Police, Yinusa Ogwuche (right) welcoming Customs Compoller East, Awwal Baba Mohammed

gerian Ports Authority (NPA) regional headquarters in Port Harcourt, Ogwuche, a graduate of the University of Calabar who is known for attending many courses abroad and heading the Mobile Police at a time, said his joy derives from the fact that the visit of the Customs boss would help the

synergy being built. The Un-trained conflict resolution expert said: “When I received your letter, it made my day because we should achieve formal acquaintance. When I resumed, I initiated a move for this but it didn’t materialise at that moment. You are thus

the first to open my visitors register. “Inter agency relationship is good; rivaling is bad. Its just about division of labour at the ports. We have been relating without conflict so far. We are ready for collaboration and we must thus perfect this relationship. Knowing

each other is a key part of it.” Ogwuche is indicated to have served in all the geo-political zones of Nigeria with extensive records in Rivers, Benue, Lagos (CID EbuteMeta) and Borno states. On the other hand, Mohammed studied Chemistry at the Ahmadu Bello University (ABU) Zaria and enlisted in the Customs in 1990. He worked in the ICT department, and served in Benue State and was Deputy Comptroller in Kano and Kaduna states. He is known to have cut a niche for himself in Customs as ‘Mr Due Process’. Speaking earlier, the customs officer said he was at the police command (ports) to introduce himself and seek ways to improve synergy within services agencies at the ports in the east. “We seek cordial work relationship with the police, all to support the economy.” On his priority, Mohammed said ‘Due Process’ is all he asks at all times. “This is because anything worth doing is worth doing right. I am not part of anything outside due process; just count

me out.’ He went on: “I am here to hold consultations and build solidarity and solid relationship with the port police. We must protect the integrity of the port system. All cargos must be properly examined before release.” Other police officers who made remarks noted that robust synergy is possible and that the build-up should also embrace others. One senior officer remarked that security agencies must like themselves because the masses do not. All the efforts, he said, are to make port policing and administration very safe and smooth. In an interview, Ogwuche said his command achieved huge success on the day because it marked the take off a robust collaboration for better monitoring of the ports in the east. He said since he assumed office, no incident had taken place in his area of jurisdiction and that all officers and stations had been made acutely aware of what to do at all times.

Rivers indigent student breaks JAMB record in Showers Int’l School with 334 score • Scores topmost Distinction in all BECE subjects Port Harcourt by Boat

IGNATIUS CHUKWU

17-year-old indigent Rivers student, Holy Destiny Ike, from Egi kingdom, has shattered the records in Showers International Secondary School in Port Harcourt, Rivers State, by scoring 334 points in the 2020 Joint Admissions and Matriculation Exams. The record was held by one of the schools’ most brilliant students, Emmanuel Anyanwu, who scored 317 in 2017. He went on to get best result in Nigeria, in the Cambridge AS with scores across board in Physics, Chemistry, Biology, and Maths, all As 90 per cent average. With full results of JAMB now out, the least score from Showers is said to be 208. The scores in Showers usually make waves because of zero-fraud and strict exam rules

that baffle even external examiners. Students from such a background have so far gone ahead to shake the world and end up as top and confident leaders so far. Ike also had best result in the Basic Education Certificate Examination (BECE) Rivers State in 2017 examination for junior secondary schools where he scored A in all subjects with 14 distinctions (14As) in 2017. Ike, who comes from the Catch Them Young (CDY) scheme of Showers in conjunction with Total E&P Education Initiative, wants to study Mechanical Engineering in the University of Lagos. He hails from Amah in Ogba, Egbema, Ndoni local government area (ONELGA) of Rivers State. Ike’s result is among the best so far released from Rivers State and Nigeria with a student from Ahoada scoring 361 and another from the north topping the national chart with 366. Showers students however start from year one to sweat to write exams without any single assistance, a feat that has made the school dreaded but famous in the Garden City and entire Niger Delta. In some years, Showers students win best results awards from the British Council for all of Nigeria. Apart from Ike who scored English A 87 per cent, Maths. A* 93 per cent, and Combined Science A* (as best over all), others who made

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top showings include Timothy Ezike (English 82, Maths 86, Physics 83, Chemistry 80, Biology 81). Eden O. Temerigha English 85, Biology 84, Maths 66; Kingsley Agburuga Maths 88, Combined Science 89, English 69; Progress Goodluck Combined Science 85, English 74, Maths 69; Isaac Onyekachi Combined Science 83, Maths 77, English, 67; and many others. Reacting, the founder and CEO of Showers Group, Ekama Emilia Akpan, said;

Holy Destiny Ike

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“Rivers State has proved again why they are there at the top of Nigerian education but more efforts needed to follow up these exceptionally brilliant children and absorb them in the systems once they finished. He seems to also follow after the likes of Chilem Amirize and Promise Emeri who achieved First Class in Business Administration and Geology respectively in 2019 from a private university. These were the Premier CDY students of Egi communality, Rivers State, who set the pace for others to match. They prove that if absorbed in any organization, they shall prove their mettle. Showers Schools thus thank the state government for providing enabling environment for education and businesses to return. Total E&P also got commendations for the initiative to fish out a lot of young brains that were wallowing in very poor rural schools to an elite college in the Garden City where they have overtaken the world. It is believed that this is a sign that most of the boys now carrying guns in the communities could be world beaters in academics and industries, if harnessed. Akpan appealed to individuals to support the Catch Dem Young Initiative to bring to board young brains that will be will guarded to use their natural intelligence to do something positive for the state developmental efforts.

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Thursday 26 March 2020

BUSINESS DAY

Investing in Rivers State Former NIMASA boss, Dakuku Peterside, bows out with ‘Best Agency Manager’ award Ignatius Chukwu

ivers State-born Dakuku Peterside (PhD), one of the brightest stars in the Niger Delta, has won a major award as the ‘Best Agency Manager’. He won the award from a major newspaper in Nigeria, Champion, just after bowing out as the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA). Peterside, former commissioner of works in Rivers State during the Chibuike Rorimi Amaechi regime, contested against Nyesom Wike in 2019 for governorship but proceeded to NIMASA after the elections, believed to still eye the stool. Now, for championing what it termed the biggest reform in any regulatory agency in Nigeria, Peterside has emerged as the Champion newspapers Best Agency Manager of the Year 2019. Peterside was selected by readers and the editorial board of Champion newspapers, following his outstanding achievements that placed Nigeria on a high pedestal in the maritime world and for restoring fiscal sanity in the oncetroubled Agency. At a well-attended ceremony in Lagos, Champion newspapers described Peterside as a rare breed, integrity personified and a reformer, whose impact will be felt for a long time to come. Managing Director and Editorin-Chief of Champion newspapers, Nwadiuto Iheakanwa, who alongside her husband, presented the award to Peterside described him as a beacon of hope for Nigeria. While disclosing that he was selected from a shortlist of five public servants, the media house stated that Peterside wrought out the transformation from an agency known as cesspool of corruption to

he Niger Delta Development Commission, NDDC, has suspended visits to its offices as part of measures to help in preventing the infection and transmission of the ravaging Coronavirus disease, COVID-19. A statement signed by the Acting Managing Director, Prof. Kemebradikumo Pondei, stated that the suspension of visiting days in the Commission’s offices was an interim measure. He declared: “Consequent on the need to enforce the World Health Organisation, WHO, recommendations on social distancing as a means of preventing transmission of the COVID-19 pandemic among the workforce, it has become im-

Ignatius Chukwu Dakuku Peterside

a respectable one, contributing to national development that commanded international respect. It further acknowledged that the Rivers-born technocrat brought reforms never seen before in the nation’s history to the maritime sector and restored integrity in public service. Of particular milestone is the emergence of Nigeria as the first country in West and Central Africa to have a distinct Anti-Piracy Law, in addition to being the number one country in the West and Central Africa in Port State Control. Also, under his watch, Nigeria became the first country in Africa to have Standard Operating Procedures (SOP) for the International Oil Pollution Compensation (IOPC) fund approved by the International Maritime Organization (IMO).

Twice elected as the chairman of Association of African Maritime Administrations, the Champion newspapers acknowledged a record of more than 205 presentations across 35 countries where Peterside spoke on issues, topics, and developments in oil and gas, maritime and security in the Gulf of Guinea. Expressing surprise at being named Nigeria’s best Public Agency Manager of the Year for 2019, Peterside dedicated the award to the board, management and staff of NIMASA, who he said worked tirelessly to give Nigeria a positive image worldwide. He commended President Muhammadu Buhari for giving him the opportunity to serve Nigeria at such a critical period, adding that he was sure his successor would achieve even more milestones.

• Overloading totally banned

ivers State government today (Monday, March 23, 2020), issued seven guidelines to transporters in the bid to curtail likely spread of the ravaging coronavirus which has however not been officially detected in the oil-rich state. The commissioner of transport, Sam Soni Ejekwu, who announced the new measures in Port Harcourt said the communiqué was agreed with the Ministry of Transport and officials of the National Union of Road Transport Workers (NURTW) and other stakeholders in the transport sector in the state. The measures include a requirement that all taxis shall

NDDC takes measures to prevent COVID-19 Infection perative that the Commission immediately suspends visiting days in the Commission’s workplaces as an interim measure, until a reduction in the level of prevention measures to be enforced is advised. “This is in line with the level of prevention measures instituted by the Nigerian Centre for Disease Control, NCDC, which presently is at level 3 (the highest level of prevention measures instituted in the country against any infectious disease of public health importance).” The NDDC Chief Executive Officer charged all relevant directorates in the Commission to come up with rosters and work out modalities for minimizing the number of staff in the offices at every given time.

Rivers shuts down all parks, land sea entry points

Rivers issues 7 new codes to transporters to curtail COVID-19 spread Ignatius Chukwu

COVID-19: The Rivers angle

admit or take a total of three passengers (one person in the front seat and two persons at the passenger sides); It is now an offence to condone, connive or be an overloaded passenger. Henceforth, all buses shall admit or convey a total of five passengers for Suzuki buses and 10 passengers for 14/18 seater-buses; one passenger in the front seat and three passengers per seat row subsequently. “At all bus stops and stations, all commuters and passengers shall maintain regular queues and orderly lines to avoid needless rough contacts and struggles leading to altercations and spitting or droplets. “All taxis and buses shall keep and restock their vehicles with wipes, tissues and other disposal items for use by passengers to www.businessday.ng

wipe down the car doors and other handles. These directives shall be supervised, coordinated and enforced by the Road Marshalls of the Ministry of Transport, Rivers State and NURTW officials. Members of the public and the Transport operators are enjoined to give the State Government their fullest support at this challenging moment of our collective existence. To ensure compliance, members of the public are enjoined to call these numbers in case of noncompliance by drivers, conductors and passengers:” Meanwhile, some schools opened their doors to pupils and students on Monday, March 23, 2020, despite government order which ought to take effect on Monday. By 1pm, some students were seen returning from school.

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ivers State government has shut down all parks and night clubs in the state and has ordered surveillance teams at all entry points into the state. The governor, Nyesom Wike, rose from a state executive meeting Monday, March 23, 2020, to do a broadcast in which he announced additional but proactive measures and orders to wage war against the dreaded Coronavirus pandemic which is yet to show face officially in the oil state. Many citizens and residents are beginning to believe that Port Harcourt cannot continue to be free for long, if it has not already fallen victim, based on national spread of the virus. The governor has thus banned public weddings, burials, night clubs, public events, and urged religious leaders to stop open worship. It is not clear what open worship means, whether it means outdoor crusades of worship in the auditoriums of churches, but the governor said he had consultation with religious leaders. The seemingly most striking action is the setting up of surveillance teams at all entry points in the state; land and sea. They include Emohua for motorists coming from Bayelsa and States; Omerelu for motorists coming from Owerri; Okehi for motorists coming from Imo State through Etche; Akwuzie in Ogba/Egbema/ Ndoni Local Government Area for motorists coming from Imo State; Oyigbo Toll Gate for motorists coming from Aba; and Opoku in Khana Local Government Area for motorists coming from Akwa Ibom State. The governor said: “Marine entry points: Port Harcourt and Onne Ports, Nembe, Bille, Bonny and NLNG Jetties are also going to be under surveillance. Each of the Surveillance Posts shall be @Businessdayng

manned by trained health and security personnel who will ensure that motorists and seafarers are tested before they are allowed to enter the State. “All motorists and seafarers are please enjoined to cooperate with the Surveillance teams as they have been empowered to legitimately enforce this directive,” Governor Wike said. He said: “With effect from the same date (Tuesday, March 24, 2020), all public parks, night clubs and cinemas in the State are to remain closed till further notice. “In view of the fact that the disease spreads fast through body contact, social distance has become imperative if we are to contain the spread. May I, therefore call on all religious leaders, traditional rulers and opinion leaders in the State to assist government to implement these decisions by ensuring that persons under their care do not fall foul of this directive.” He said: “May I emphasise that Local Government chairmen are to be held responsible if public burials and weddings take place in their Local Government Areas. “Government will set up monitoring teams for the 23 Local Government Areas to ensure compliance. Defaulters will be seen as enemies of the State and will be made to face appropriate sanctions. “My Dear Good People of Rivers State, the essence of governance is to protect lives and we cannot be indifferent when this COVID-19 continues to claim lives world-wide. “The Rivers State Government having reviewed current developments across the country is desirous to further strengthen prevention measures across the State to keep our citizens safe. “To this end, with effect from tomorrow, Tuesday, March 24, 2020 , Surveillance Posts are to be set up at the following Borders of the State:

Thursday 26 March 2020

BUSINESS DAY

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Thursday 26 March 2020

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Wednesday 25 March 2020 Company

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PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 199,053.26 5.60 0.89 402 44,175,846 UNITED BANK FOR AFRICA PLC 164,157.22 4.80 9.09 306 23,252,149 ZENITH BANK PLC 368,908.80 11.75 7.31 610 44,703,514 1,318 112,131,509 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 143,581.17 4.00 2.56 229 18,566,556 229 18,566,556 1,547 130,698,065 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,035,451.31 100.00 -2.91 94 925,649 94 925,649 94 925,649 BUILDING MATERIALS DANGOTE CEMENT PLC 2,210,153.81 129.70 - 177 939,948 LAFARGE AFRICA PLC. 153,024.06 9.50 4.40 159 3,570,748 336 4,510,696 336 4,510,696 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 320,408.06 544.50 - 8 436 8 436 8 436 1,985 136,134,846 REAL ESTATE INVESTMENT TRUSTS (REITS) SFS REAL ESTATE INVESTMENT TRUST 1,386.00 69.30 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 8,538.46 3.20 - 6 31,100 6 31,100 6 31,100 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 6 31,100 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 1 350 OKOMU OIL PALM PLC. 52,512.75 55.05 - 1 1,000 PRESCO PLC 36,450.00 36.45 - 9 67,950 11 69,300 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,500.00 4.25 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,770.00 0.59 1.72 3 750,115 3 750,115 14 819,415 DIVERSIFIED INDUSTRIES JOHN HOLT PLC. 217.92 0.56 - 0 0 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 24,795.27 0.61 -1.64 37 3,223,793 U A C N PLC. 21,033.47 7.30 2.82 24 725,665 61 3,949,458 61 3,949,458 BUILDING CONSTRUCTION ARBICO PLC. 423.23 2.85 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 31,284.00 23.70 - 43 534,665 ROADS NIG PLC. 165.00 6.60 - 0 0 43 534,665 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,390.52 0.92 - 5 119,330 5 119,330 48 653,995 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 5,558.94 0.71 - 0 0 GOLDEN GUINEA BREW. PLC. 220.45 0.81 - 0 0 GUINNESS NIG PLC 55,197.65 25.20 - 8 23,790 INTERNATIONAL BREWERIES PLC. 134,310.34 5.00 - 16 84,364 NIGERIAN BREW. PLC. 215,916.36 27.00 - 61 251,203 85 359,357 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 108,000.00 9.00 - 16 26,354 FLOUR MILLS NIG. PLC. 85,287.90 20.80 - 15 20,279 HONEYWELL FLOUR MILL PLC 6,582.06 0.83 - 5 103,569 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 22,520.23 8.50 - 17 137,200 UNION DICON SALT PLC. 2,993.06 10.95 - 0 0 53 287,402 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 10,611.84 5.65 9.71 27 438,618 NESTLE NIGERIA PLC. 673,757.81 850.00 - 83 70,852 110 509,470 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,316.09 4.25 - 24 356,588 24 356,588 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 17,470.10 4.40 8.64 15 263,044 UNILEVER NIGERIA PLC. 60,322.56 10.50 - 22 36,590 37 299,634 309 1,812,451 BANKING ECOBANK TRANSNATIONAL INCORPORATED 74,315.68 4.05 2.47 108 4,035,266 FIDELITY BANK PLC 49,257.15 1.70 0.59 71 6,964,860 GUARANTY TRUST BANK PLC. 503,273.16 17.10 1.18 613 49,679,899 JAIZ BANK PLC 13,258.91 0.45 -8.16 14 847,000 STERLING BANK PLC. 29,078.32 1.01 1.00 24 1,473,087 UNION BANK NIG.PLC. 174,724.52 6.00 - 24 104,534 UNITY BANK PLC 4,909.52 0.42 - 10 142,415 WEMA BANK PLC. 20,058.72 0.52 8.33 39 841,652 903 64,088,713 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 8,497.65 0.75 5.63 29 1,342,883 AXAMANSARD INSURANCE PLC 18,375.00 1.75 - 3 8,000 CONSOLIDATED HALLMARK INSURANCE PLC 2,439.00 0.30 - 0 0 CORNERSTONE INSURANCE PLC 8,543.11 0.58 - 4 57,000 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 1 700,000 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,537.92 0.21 4.76 7 980,400 LAW UNION AND ROCK INS. PLC. 3,952.62 0.92 - 1 57,000 LINKAGE ASSURANCE PLC 3,280.00 0.41 - 1 3,000 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 2 1,000 NEM INSURANCE PLC 8,290.39 1.57 -1.87 12 389,211 NIGER INSURANCE PLC 1,547.90 0.20 - 1 230,000 PRESTIGE ASSURANCE PLC 3,229.53 0.60 9.09 1 200,000 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 2,272.89 0.20 - 0 0 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 - 2 94,000 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 - 1 100 WAPIC INSURANCE PLC 5,758.00 0.24 9.09 27 2,800,151 92 6,862,745 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,629.63 1.15 - 1 1,000 1 1,000

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 6,784.62 1.05 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,671.82 1.36 - 0 0 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 6,940.00 3.47 -9.87 51 622,524 CUSTODIAN INVESTMENT PLC 34,703.00 5.90 - 4 10,065 495.00 0.33 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 29,704.07 1.50 -3.85 44 2,826,665 ROYAL EXCHANGE PLC. 1,131.98 0.22 - 1 7,600 274,179.65 26.10 - 23 138,998 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 12,000.00 2.00 10.00 59 4,597,250 182 8,203,102 1,178 79,155,560 HEALTHCARE PROVIDERS EKOCORP PLC. 2,991.61 6.00 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 9.09 4 949,000 4 949,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 4,798.63 2.30 - 12 1,402,850 GLAXO SMITHKLINE CONSUMER NIG. PLC. 4,544.33 3.80 -1.30 18 1,770,830 3,364.21 1.95 - 7 90,744 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 911.60 0.48 9.09 6 319,627 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 43 3,584,051 47 4,533,051 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 4 182,724 4 182,724 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,000.21 0.34 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 216.00 2.00 - 0 0 287.07 0.58 - 0 0 TRIPPLE GEE AND COMPANY PLC. 0 0 PROCESSING SYSTEMS CHAMS PLC 986.17 0.21 - 8 1,198,800 E-TRANZACT INTERNATIONAL PLC 10,962.00 2.61 - 1 200 9 1,199,000 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 9 108 9 108 22 1,381,832 BUILDING MATERIALS BERGER PAINTS PLC 1,767.92 6.10 - 4 8,150 BUA CEMENT PLC 1,195,411.70 35.30 - 4 19,001 CAP PLC 15,050.00 21.50 - 17 24,568 244.37 0.46 - 0 0 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 25 51,719 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,192.12 2.03 - 0 0 CUTIX PLC. 2,324.95 1.32 10.00 15 437,212 15 437,212 PACKAGING/CONTAINERS BETA GLASS PLC. 34,998.04 70.00 - 2 80 GREIF NIGERIA PLC 388.02 9.10 - 0 0 2 80 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 42 489,011 CHEMICALS B.O.C. GASES PLC. 1,685.79 4.05 - 0 0 0 0 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. 77.00 0.35 - 0 0 0 0 0 0 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 10 312,340 10 312,340 INTEGRATED OIL AND GAS SERVICES OANDO PLC 27,349.11 2.20 2.33 26 1,596,599 26 1,596,599 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 52,827.21 146.50 - 25 23,072 ARDOVA PLC 17,974.24 13.80 - 11 36,166 CONOIL PLC 9,125.47 13.15 - 6 12,317 ETERNA PLC. 3,116.91 2.39 - 5 27,727 MRS OIL NIGERIA PLC. 4,206.05 13.80 - 3 212 TOTAL NIGERIA PLC. 32,695.95 96.30 -10.00 25 253,299 75 352,793 111 2,261,732 ADVERTISING AFROMEDIA PLC 1,509.28 0.34 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 15,796.05 1.62 - 1 2,469 1 2,469 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 235.27 0.20 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,779.06 3.00 - 14 1,275,912 TRANS-NATIONWIDE EXPRESS PLC. 421.96 0.90 - 0 0 14 1,275,912 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 3 9,230 IKEJA HOTEL PLC 2,058.01 0.99 - 0 0 TOURIST COMPANY OF NIGERIA PLC. 7,076.28 3.15 - 0 0 TRANSCORP HOTELS PLC 30,401.62 4.00 - 0 0 3 9,230 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 3,960.00 0.33 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 205.63 0.34 - 1 994 LEARN AFRICA PLC 771.45 1.00 - 4 1,536 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 1 20 UNIVERSITY PRESS PLC. 427.10 0.99 - 6 111,575 12 114,125 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 580.20 0.35 - 1 101,000 1 101,000 SPECIALTY INTERLINKED TECHNOLOGIES PLC 688.80 2.91 - 0 0

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industry Insight

BUSINESS DAY Thursday 26 March 2020 www.businessday.ng

Covid-19: Time to support Nigeria’s pharmaceutical industry Odinaka Anudu

he Nigerian pharmaceutical industry has managed to stay afloat in a very harsh economic environment. The firms in the industry have tried to innovate amid little policy support. Juhel, an Awka, Anambra State-based drug maker, recently unveiled a new Oxytocin injection for pregnant women—the first of its kind in Africa. Drugfield Pharmaceuticals Limited has a product known as Chlorhexidine gel, which takes care of the umbilical cord. Similarly, SKG Pharma has locally produced amino acid and vitamins— first of their kind in Africa. Also Daily Need Industries has produced Amoxicillin Dispersible Tablets (DT), used for the cure of pneumonia. More so, May &Baker and Fidson have innovated unique solutions for the Nigerian and African markets. May&Baker has a joint venture project with Federal Government to produce vaccines locally. The company has also entered into an understanding with the Federal Institute of Industrial Research Oshodi (FIIRO)for the commercialisation of a sickle cell supplement produced by the institute. So far, three firms in the industry have obtained the World Health Organisation(WHO)’s pre-qualification necessary for international competition and competitiveness. The WHO certification was initially good news for the industry that so much sought it with grit, brain and brawn. But peculiar problems mean the industry is yet to enjoy any significant gain from the prequalification. Already, two out of three firms that have obtained it are not in a healthy state. Evans Medical Plc is one of the three which got the prequalification amid pomp and ceremony. But it was taken over by the defunct Skye Bank and the tier-one First Bank in 2017. The drug maker had invested hugely on the road to acquiring the sought-after WHO’s prequalification, which gave it an opportunity to participate in international bids. But the dream of consolidating its international presence became a mirage as the bankers came for the jugular after a July 4, 2017 court order necessitated by loan default. Swiss Pharma is another company to achieve this feat. In fact, it was the first company to do so in 2014. However, it sold its assets to Biogaran-Servier in March 2017. Those familiar with the company before its exit said the sale to the French company

was based on financial crisis. The pharmaceutical industry has been hard hit by a number of factors. One is lack of funding, which has exposed the likes of Evans Medicals to humongous debts it could not repay. Apart from funding, the industry is also hard hit by high production cost, which makes its drugs more expensive than imported ones. Cost of production occupies 30 to 40 percent of their expenditure as the firms spend a lot on energy, water, research and development as well as raw materials. Most of the raw materials used by these drug makers are imported because Africa’s most biggest economy does not have a strong petrochemical industry that should produce resins and excipients. Okey Akpa, chief executive officer of SKG Pharma and former chairman of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), said that increased import of medicines jeopardises Nigeria’s drug and national security. “Virtually every raw material in this sector has a high import dependency ratio. If you then face the scarcity of forex like we do have in this country, it poses further challenge,” Akpa told BusinessDay in 2019. Akpa said the industry needed an urgent support to save Nigeria during emergencies. The world is currently facing an unprecedented crisis precipitated by covid-19, which has hit almost 400,000 people across the world amid thousands of deaths. Nigeria already has up to 46 confirmed cases and there are fears of the virus spreading more in the coming weeks. Unfortunately, the pharma-

ceutical industry is not ready. No manufacturer produces any of the masks or ventilators in the country. Even hand sanitizers are produced by few manufacturers. Fidelis Ayabae, chairman of Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMGMAN), said neglect of the industry over the years had been Nigeria’s biggest weak point in fight against coronavirus. “We have the capacity to produce all these items, but we are not manufacturing them because it is uninteresting and unprofitable to do so. The economy is open to all kinds of imported products which will make local products expensive,” Ayabae said. The industry’s capacity utilisation is barely 47 percent, according to MAN, and only few players are really healthy. In 2014, companies like Emzor, GSK, and a number of others earned $7.708 million from export of medicines to the African market, according to the International Trade Centre (ITC). Four years later, however, the companies made only $708,000 despite Naira weakening by 81 percent.

With population growth and decreased drug export, drug importers have raised their game, bringing in all forms of medicines into the economy, with imports standing at $513.9 million in 2018, as against $397.8 million in 2014 and $492 million in 2016. Akpa advocates for a right policy to attract investments in this area, which is capital intensive. “There must be a period for investors to recoup their investments. There also must be ‘smart protection’. I call it smart protection because if someone sets up a factory and produces in a high-cost environment like ours, and you still allow unregulated importation of what he is producing in a way that he cannot sell, he cannot sustain his investments. I will like to refer to that as smart protection.” He argued that the industries faced the infrastructural challenge, which must be immediately addressed. “This industry is yet to be competitive. If it’s not competitive, then it is set to face challenges when you throw it open or face emergencies,” he said.

‘‘

We have the capacity to produce all these items, but we are not manufacturing them because it is uninteresting and unprofitable to do so. The economy is open to all kinds of imported products which will make local products expensive

More than 120 pharmaceutical firms have invested about N500 billion into the economy. Dangote Petrochemicals is in the offing, but analysts say the country needs at least five of such. The Central Bank of Nigeria (CBN) last Wednesday announced N1.1 trillion intervention fund to support manufacturers and health-related sectors. It had earlier approved N50 billion cheap credit for small businesses and pharmaceutical firms. One player in the industry asked for a special, permanent fund for the industry. Ayabae, on his part, said Nigeria must now emulate India and China who had to protect local manufacturers to making importation difficult or more espensive. But Sam Ohuabunwa, president of the Pharmaceutical Society of Nigeria (PSN), said the pharmaceutical industry should seek to increase its relevance and be less dependent on importation. “We should be less dependent on imported inputs,” he said. “Let the industry spend more time to develop local inputs for production.We must begin to think how we can be more selfsufficient,” he advised. He said Nigeria was not doing sufficient public awareness about the covid-19 virus, stressing the need to combat it to save lives. “We can see that the economy is calling for greater introspection. What can we do for ourselves if the external environment is getting difficult and doing business with China is getting difficult? What are those things we can do to meet with our needs in drugs production?” he asked.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.