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Closure of P&G $300m Agbara plant mirrors challenges of manufacturers in 2018 ODINAKA ANUDU& GBEMI FAMINU

Going for the affordables: Faced with difficult times, some mothers turned to the second-hand clothes market to shop for their families to celebrate the Christmas and New Year in Lagos.

Pic by Pius Okeosisi

FG’s agricultural investments fail to show in GDP growth T

MICHEAL ANI

he Federal government’s claim of funding in the agricultural space is yet to have as much impact in lifting the sector to its 2016 level, when falling oil prices alongside

he shut-down of Procter and Gamble’s $300 million consumer goods plant in Agbara in July reflects the challenges faced by manufacturers in the outgoing year. In 2014, P&G set up a diaper line in Agbara, Ogun State, tapped as the biggest US non-oil investment in Nigeria. Four years down the line, the company packed up, citing restructuring of operations as its main reason. “P&G is restructuring its Nigeria manufacturing operations to deliver a more effective business operation for now and sustainably for the future,” a statement signed by Lola Adenuga of the company’s communications department had said. “This will entail an exit from production in its Agbara plant. We will strengthen our manufacturing operations in the Ibadan plant, scale up our contract manufacturing operations as well as continue to invest in our local talents,” the statement had added. But those familiar with the matter told BusinessDay that

Agricultural exports fell 47.2% Q3 2018 Inside As post-harvest losses top farmers challenge MTN to focus on Nigerian

restlessness in the Niger Delta region made the country look towards the sector as its only

redemption. Since the country exited recession in the second quarter of

2017, growth in the agricultural sector has averaged 2.7 percent Continues on page 35

Continues on page 35

IPO after settling dispute P. 2 with CBN

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Thursday 27 December 2018

FG’s 2019 revenue projections shaky as oil prices drop to $53.01 per barrel MICHEAL ANI

evenue projections in Nigeria’s 2018 budget proposal is already falling apart as Brent Crude oil price continuous to drop. Brent crude was trading at US$53.01 on Wednesday evening after initially dropping below the US$50 mark earlier in the day, sending panic through the oil market. On Wednesday morning, Brent Crude was trading at US$50.79 per barrel, almost US$10 below the US$60 per barrel on which the 2018 budget was based on. The volatile oil price is putting at risk Nigeria’s 2018 oil revenue projection of N6.67 trillion, of which more than 50 percent was expected to come from oil revenues. The revenue projection had been considered ambitious. The continuing collapse in oil prices signal investors are worried about a 2019 recession in the US, Helima Croft, global head of commodity strategy at RBC Capital Markets told CNBC. Oil prices have now plunged by about 40 percent from their 52week highs at the start of October. Last week alone, U.S. West Texas Intermediate crude tumbled 11 percent, posting its worst weekly performance in nearly three years, according to a report by CNBC. On Monday, WTI fell below $45 a barrel for the first time since July 2017. On Wednesday morning, it was trading at US$43.09 while Brent Crude was trading at US$50.79 as at 10.26 a.m. when BusinessDay checked live crude oil prices. “I think what we’re seeing in oil

is a big, big concern for 2019 about a recession. I think that is really weighing heavily on this market,” Croft told CNBC’s “Closing Bell” on Friday. Buhari while presenting a N8.8 trillion spending plan for 2019 had made a revenue projection of N6.97 trillion despite achieving only 53 percent of 2018 revenue targets three months into the year. While giving breakdown of the sources of revenue, Buhari disclosed that the sum of N6.97 trillion (3 percent lower than the 2018 estimate of N7.17 trillion), consisting of N3.73 trillion oil revenue while non-oil revenue is estimated at N1.39 trillion. President Buhari said the administration has earmarked the sum of $1 billion (N305 billion) for fuel subsidy also called Under Recovery in 2019. The budget is based on assumptions of $60 per barrel of oil benchmark at 2.3 million barrels per day, a GDP growth rate of 3.01 percent and inflation rate of 9.98 percent while exchange rate was based on N305/$. Allocations to sectors are as follow Ministry of Health (N315.62billion), Ministry of Education (N462.24 billion), Ministry of Defence (N435.62 billion) and Ministry of Interior (N569.07 billion). According to the president, the budget deficit is forecast to drop to N1.86 trillion which will be about 1.3 of GDP in 2019, from N1.95 trillion forecast for the preceding year. In his words “this reduction is in line with our plans to progressively reduce deficit and borrowing over the medium term”.

One Lagos fiesta kicks off with Star Lager BUNMI BAILEY

he 2018 edition of the annual One Lagos Fiesta in conjunction with Star Lager, officially kickedoff on Monday 24th December, 2018 at five designated locations in Lagos State. The eight day, non-stop, celebration and star-studded fiesta is aimed at ushering in the new year as consumers get to witness concerts from leading Nigerian musicians including Wizkid, Davido, Pasuma, Olamide, Sunny Ade, Mr Real, Slimcase, Mr P, Teni and a host of others. As sponsors of One Lagos Fiesta, Star Lager is celebrating the iconic Lagos heritage just as the brand did in 2017 with the massive 58-foot tall Aro Meta Statue built out of over 3,000 Star crates, with an LED screen base. The One Lagos Fiesta is featuring support from Star Lager in five locations - Agege Stadium Agege, Bar Beach, Epe, Ikorodu, Badagry and Victoria Island, culminating in a grand finale at Eko Atlantic City and the national premium beer brand will provide refreshments for consumers as they partake in exciting games and experiences at the Star Corner. Speaking about Star’s sup-

port of the event, the Marketing Director, Nigerian Breweries Plc, Emmanuel Oriakhi, declared, “Star Lager is committed to providing the best entertainment offering to consumers as we continue our support of One Lagos Fiesta. We take pride in this partnership and our goal is to continually upgrade experiences for our consumers as we promise bigger and better experiences in the future.” Star Lager in previous years, has been present and supportive of the annual year end felicitations. Oriakhi expressed the brand’s commitment to extending the excitement by saying, “Star Lager has always been a proud supporter of the iconic Lagos heritage and this year we have something special planned and we can’t wait to unveil it”. Star Lager, an iconic national premium product, brewed by Nigerian Breweries Plc, a Heineken Company, will also be hosting a series of exclusive events in 2019. With a long history of supporting the consumers’ passion, Star continues to create premium experiences as it is doing this December with Wizkid VIP Experience, Olamide Live In Concert, Burna Live, Uli Music Festival and Warri Again.

L-R: Joseph Edgar, co-producer of ‘Oba Esugbayi’; Mofolake Edgar, director, Duke of Shomolu Productions; Akinwunmi Ambode, governor, Lagos State; Nonny Ugboma, executive secretary, MTN Foundation; Oluwole Rawa, general manager, consumer marketing, MTN Nigeria, and Olisa Adibua, co-producer of ‘Oba Esugbayi’, at the premiere of the MTNF sponsored ‘Oba Esugbayi: The Play’ at MUSON Centre, Lagos.

MTN to focus on Nigerian IPO after settling dispute with CBN ENDURANCE OKAFOR

here are indications that the MTN Group will now focus on listing its Nigerian subsidiary on the Nigerian Stock Exchange (NSE) now that it has settled its US$8.1 billion dispute with the Central Bank of Nigeria (CBN). The CBN had in August sanctioned

MTN Nigeria Communications Limited,andfourcommercialbanksforwhat itcalled“flagrantviolationofextantlaws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange(MonitoringandMiscellaneous Provisions) Act, 1995 and the Foreign Exchange Manual, 2006.” TheCBNhadaskedMTNNigeriato refund of about $8.13 billion allegedly

repatriated illegally out of Nigeria while directingStandardCharteredwasasked to refund N2.5 billion; Stanbic IBTC (N1.9billion);Citibank(N1.3billionand Diamond Bank (N250 million). Before the sanctions, MTN had initiated plans to have its Nigerian subsidiary listed on the Nigerian Stock

Continues on page 35

Is NNPC correct that 25m litres of Nigerian petrol are smuggled out daily? ISAAC ANYAOGU

nlike 2017, the Christmas holidays have proceeded without long fuel queues that usually mar the period. But this has come at a huge cost. Since March this year, the Nigerian National Petroleum Corporation has maintained that daily consumption of petrol has risen to more than 60 million litres per day but 42 percent of this is stolen across the border. Maikanti Baru, group managing director of the NNPC, on a visit to the Comptroller General of the Nigerian Customs Service, Col. Hameed Ali (Retd), in March this year, revealed that a detailed study the corporation conductedshowed25millionlitresofpetrol is being smuggled out of Nigeria daily. Based on this, the NNPC claimed N632.2billion in 2017 and 2018 as under recovery. Under recovery is difference between control price of petrol and actual cost. NNPC removes expenses before remitting proceeds of oil sales to the national treasury. AccordingtoareleasedatedMarch4, 2018, the NNPC wrote, “the activities of thesmugglershadledtorecentobserved abnormal surge in the evacuation of petrol from less than 35 million litres per daytomorethan60millionlitresperday which is in sharp contrast with established national consumption patterns.” The corporation claimed it arrived at this figure by extrapolating from storage capacity of filling stations springing up in border communities. It said that 16 states account for 2,201 registered fuel stations with 144, 998, 700 litres of petrol tank capacity. Eight states with coastal border

FACT CHECK communities spread across 24 LGAs amongst the states account for 866 registered fuel outlets with combined petrol tank capacity of 73, 443, 086 litres, according to Baru. Baru said the difference in petrol prices between Nigeria (N145 per litre) and neighbouring countries (N350 per litre) makes it lucrative for smugglers to use frontier stations to smuggle products across the border. Huge gaps The NNPC is correct that smuggling of Nigerian petrol occurs at border communities. BusinessDay visited the Sokoto-Niger border at Illela, and found an organised system of smuggling but the volumes the NNPC is ascribing to it seems exaggerated. “Fuel does not come every day,” said Mohammed, a young attendant at Nura Kure, a new filling station established earlier this year, “Sometimes we don’t get supply for weeks.” The smuggling operation is largely rudimentary. Petrol is moved in carts; storage compartments built under trucks and modified fuel tanks of saloon cars. “I have been carrying petrol across the border for a long time,” a motorcycle operator who gave his name as Hassan, said. “It is not difficult,” he assured. “I bribe the Customs and I move on.” In the three days spent around illela, BusinessDay estimated between 12,000 and 20,000 litres of petrol may be smuggled across the border. Two carts lugging 20 pieces of 25-litre jerry cans twice across the border a day could move 6,000 litres. Five trucks

bearing 4 pieces of 25-litre jerry can in a built in compartment delivering supplies across the border over three days can deliver 1,500 litres. While seven saloon cars with a capacity to lift 80 litres makingthreeroundsaday,withinthree dayscandeliverabout5,040litresoffuel. There is no evidence of petrol trucks moving huge volumes. Jerry Attah, spokesperson for the Nigerian Customs confirmed that proliferation of licensed filling stations at border communities is encouraging artisanal smuggling of petrol outside Nigeria. “We can’t check everything on people or their houses but, no truck can be allowed to move petrol across the borders with fuel,” Attah said. Indeed if that were to happen, it will question the very existence of the Nigerian Customs Service. NNPC’s own data faults this claim. According to NNPC’s August operations and financial report, local petrol distribution is undertaken by 1,017 trucks daily. The entire month sees 31,538 trucking operations. To smuggle out 25million litres of outside Nigeria daily will require a large-scale operation involving over 750 trucks with 33,000 litre capacity which will create massive shortages in Nigeria. “If that much trucks were diverted from NNPC’s operations, clearly Nigeria will feel the pinch,” Olumide Adeosun, PwC Nigeria’s head of infrastructure said by phone. The only plausible conclusion is that the NNPC is exaggerating volumes of petrol smuggled out of Nigeria to explain away billions of naira it is claiming as under recoveries.

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Absa Group takes over Barclays Africa HOPE MOSES-ASHIKE

bsa Group Limited, one of Africa’s largest diversified financial services group based in Johannesburg, South Africa, has taken over Barclays Africa Group, which has presence across Africa and a representative office in Nigeria. The development follows Barclays plc decision in 2017 to reduce its shareholding in Barclays Africa Group to a minority stake of 14.9 percent, as the two companies begin separating operations. In 2016, Barclays started reducing its 62.3 percent shareholding in Barclays Africa Group after changes in international regulations following the 2008 global financial crisis made it less attractive to own stakes in large banks abroad.

On July 11, 2018, Absa Bank in South Africa and, Absa Group overall launched their new identity. This marked the official commencement of a new era for the bank – one characterised by its tenacious African spirit and commitment to continue being an important part of the African growth story. The journey to the new brand was a collaborative one involving colleagues, customers and other key stakeholders across the continent. “Our new brand is an expression of the new identity we are creating as an entrepreneurial, digitally led bank with deep knowledge of African markets and with global scalability”, Marie Jamieson, head of marketing and communications Africa regions, said while addressing journalists across Africa.

Speaking to about 20 selected journalists from nine African countries including Nigeria who had completed a Data Journalism Master Class at the Rhodes University; she said Barclays-branded subsidiaries across Africa would be rebranded in June 2020. “We remain a financially independent, strong and well-capitalised African banking group after the separation: clients and customers can bank with us as confidently as you always have”, Jamieson said in South Africa before the commencement of Highway Africa Conference held in Makhanda (formerly Grahamstown) recently. Absa Group Limited reported an increase in earnings, revenue and dividend for the first half of 2018. The group reported its first set of financial results as `Absa Group’ after being re-

named on 11 July 2018 as it separates from the international Barclays PLC group. The bank in 2018 launched its second Absa Africa Financial Markets Index (AAFMI) as the outcome of its partnership with Official Monetary and Financial Institutions Forum (OMFIF). The index aims to present current positions, and also make suggestions as to how economies can improve market framework to meet yardstick for investor access and sustainable growth. In the index report, countries are assess around six pillars: market depth, access to foreign exchange, tax and regulatory environment and market transparency, capacity of local investors, macroeconomic opportunity, and enforceability of financial contracts, collateral positions and insolvency framework.

L-R: Oladipupo Clement, CEO, LIFEPAGE Property and Investments; Omolara Clement -Oladipupo, director; Peter Adesanya, finance director, and Opeoluwa Oni, executive director, during the official unveiling of the company Logo in Lagos. Pic by Olawale Amoo

SEC advises on collective investments, mutual funds

ecurities and Exchange Commission (SEC) has advised retail investors in the capital market to invest in Collective Investment Schemes and Mutual Funds to help reduce risk. Acting director-general of SEC, Mary Uduk, said this in a statement on Wednesday in Abuja. Uduk said professionals managed such investments and they help investors to invest in various asset classes to minimise risk. She however reiterated the commission’s commitment to protect investors through various initiatives, saying, “The Commission has put in place a number of initiatives to protect investors as well as boost their confidence. “These includes the e-dividend mandate Management System, Direct Cash Settlement, we set up a committee on identity management in the Nigerian Capital Market Regularisation of Multiple

Subscription and Complaints Management Framework. “We protect investors through the National Investors Protection Fund (NIPF), Risk Based Supervision and the Complaints Management Framework. “We want investors to take ownership of their investments; they have to be able to monitor their investments, attend Annual General Meetings as well as read the annual reports sent out to them.” According to Uduk, the commission is working with other major stakeholders to set up a committee that will look into and proffer solutions to problems around identity management in the Nigerian capital market. “For instance, to boost the e-dividend mandate and Direct Cash Settlement initiatives, we are engaging the Nigeria Inter-Bank Settlement System (NIBSS) to facilitate identity and account validation to enhance market pro-

cesses,” she said. She said the electronic distribution of annual accounts by public companies to shareholders had continued to record tremendous success, as shareholders had accepted the new initiative. She said the SEC and other stakeholders had continued sensitisation to further enlighten shareholders on the benefits of the initiative. On the need to grow the market for trading in securities on unlisted public companies, Uduk said the SEC was collaborating with relevant stakeholders to assist public companies yet to register their securities to do so without much difficulty. The acting director-general also said innovations in financial technology had made possible the potential of using digital tools to make financial services available to a wider range of consumers and enterprises.

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Labour begins consultation with CSOs on nationwide strike over wage disagreement JOSHUA BASSEY

rganised labour has begun clandestine consultation and mobilisation ahead of their planned nationwide strike to press home their demand for the implementation of N30,000 as new national minimum wage, BusinessDay can authoritatively reveal. It was gathered on Wednesday that labour leaders from Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and United Labour Congress (ULC) were already reaching out to their allies in Civil Society Organisations (CSOs) in Lagos, Abuja and Port Harcourt, and the plan is to seek audience with all relevant CSOs for their support and effective participation in the strike, which is planned for January 2019. “We are reaching out to our allies in the civil societies. We are also discussing modalities to make the strike effective and impactful should the government failed to accede to our demand. Our demand clear; transmit the N30,000 recommended by the National Minimum Wage Committee to the National Assembly for action,” a member of the labour movement told BusinessDay on Monday. It was further gathered that the planned strike may be all encompassing, as the National Association of Nigerian Students (NANS) whose undergraduate members from the public universities have been at home, may mobilise to join the action. Students from most public universities in the country have been at home for about two months, as their lecturers; under the umbrella body of Academic Staff Union of Universities (ASUU) are still on

strike, which had since paralysed academic activities in the universities. The lecturers are demanding for better funding of the university system and payment of arrears of allowances. Recall that labour last week gave the Federal Government up till December 31, 2018 send the recommended N30,000 new minimum wage to the National Assembly. President Muhammadu Buhari plans to set up a high powered technical committee to review the ability of the government to pay the wage, a move labour described as uncalled for. The planed strike, unless averted, will unleash harder times on Nigerians at the turn of the New Year, as petroleum products, food stuffs, medical and transportation services, including aviation and other essentials may be in short supply. Labour movement in a communiqué issued at the end of the meeting of their national leaders, including Ayuba Wabba, Bobboi Kagaima, and Joe Ajaero, presidentsNLC, TUC and ULC, respectively, argued that setting up a technical committee cannot be a condition for passing the minimum wage report to the National Assembly. “We reject in its entirety the plan to set up another high powered technical committee on the minimum wage. It is diversionary and a delay tactics. “The national minimum wage committee was both technical and all-encompassing in its compositions and plan to set up a technical committee is alien to the tripartite process. It is also alien to the International Labour Organisation’s (ILO) conventions on national minimum wage setting mechanism,’’ they said.

Black Xmas: Auto crashes claim three as police nabs robber on Lagos-Ibadan Expressway RAZAQ AYINLA, Abeokuta

o fewer than three commuters lost their lives in different auto crashes that occurred on Christmas day on BeninOre Expressway by Omo River at J4 in Ogun Waterside Local Government Area and along Idi-IrokoOwode road in Yewa South Local Government Area of Ogun State. Although, Florence Okpe, Route Commander and Public Education, Federal Road Safety Corps (FRSC), Ogun State Sector Command, said that four auto crashes occurred on Christmas day across Ogun State, namely, Benin-Ore road, Abeokuta-Sagamu road, Lagos-Ibadan Expressway and Idiroko-Ow-

ode road, only two of the accidents in Ogun claimed three lives. According to Okpe, two passengers were killed in the auto crash that occurred at 2:30 pm on Christmas day which two vehicles with registration numbers AAA113XY Toyota Sienna and XB538 GBD Bed Ford Truck, while the other one which claimed the life of a man happened on Idiroko-Owode road, involved two motorcycles marked EKY465QH and another unregistered motorcycle. While admonishing motorists and the road users to be cautious on the road, Okpe said, “The FRSC Ogun State Sector Commander, Clement Oladele, advises motorists and passengers to observe

the FRSC’s, 2018 Ember Months Safety Campaigns of Driving and Safe Arrival this season. “He also reminds motorists to use their day time running lights due to poor visibility, common most mornings and evenings, as well as note the efforts of the Federal Government in the removal of the entire diversions on the entire stretch of Lagos - Ibadan Expressway, which has made the Lagos-Ibadan Expressway more motorable.” Meanwhile, the Ogun State Police Command was on Christmas day burst a gang of armed robbers on Lagos-Ibadan expressway at the Long Bridge end of the road at about 10pm while trying to rob and dispossess motorists of their belongings at gunpoint.

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comment Small Business handbook

Emeka Osuji Dr Emeka Osuji School of Management and Social Sciences Pan Atlantic University Lagos. eosuji@pau.edu.ng @Emyosuji

o much has been said and also done, concerning the development of the SME sector, not just in Nigeria but in several other parts of the world. At the African continental level, for instance, the Africa Union Commission (AUC), in its search for the evolution of “competitive, diversified and sustainable economies in Africa underpinned by dynamic, entrepreneurial and industrial sectors that generate employment, reduce poverty and foster social inclusion”, has established the Enterprise Africa Network (EAN). The Network is a flagship initiative of the AUC, which aims at implementing the Business Development pillar of its Africa Master Plan for 2017-2021. The initiative would provide services relating to the developmental needs of African SMEs, including international partnerships with the private sectors of other economic groupings, including the European private sector. It will also offer advisory services for international growth as well as support for business innovation. The Enterprise Africa Network therefore becomes a strategic institutional resource, to facilitate the realization of the objectives of the

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comment is free

Send 800word comments to comment@businessdayonline.

Key success factors for SMEs in 2019 AUC by confronting the key obstacles hindering SME development and growth. It will address the issue of the participation of SMEs in the formal economy of their respective countries, as well as in regional and global trading spaces. Prominent among these limiting factors are little or no access to markets and market intelligence/information, corruption, inefficient bureaucracy, stifling regulatory barriers, and a business-operating regimes that are overtly hostile. On the domestic front, several initiatives in the areas of funding and capacity development have been implemented. The Central Bank, the Bankers Committee and other stakeholders have established several on-lending facilities for the benefit of SMEs. It is now a common feeling that the availability of funds as a challenge of SMEs has been largely addressed, even though accessing such funds is still a bit of a problem for operators, and drawdown is still insignificant. A lot of thinking is going on around this challenge. It is this problem that prompted the Central Bank to contemplate the establishment of a nation-wide national microfinance bank – an idea not supported by this column for the obvious reason that we had traded that route before through the Peoples Bank, and the legendary incompetence of government in the running of businesses. As we come to the close of 2018, a year that is very eventful for all the bad reasons, and uneventful in matters that matter to the masses, there is need for operators in the sector that have the most positive impact on

‘

As we come to the close of 2018, a year that is very eventful for all the bad reasons, and uneventful in matters that matter to the masses, there is need for operators in the sector that have the most positive impact on the masses to brace up, rethink its strategies and retool its operational modalities

’

the masses to brace up, rethink its strategies and retool its operational modalities. This will enable them to maximally profit from the opportunities that may arise in 2019 – an election year like no other in Nigeria. In this regard we shall attempt here to highlight some of the attributes and strategies that must be manifest in the affairs of those SMEs that will click Champaign glasses this time next year. Before we present those critical success factors, let us take a cursory look at some aspects of the environment within which our SMEs operated in the closing year.

The Nigerian economy is growing at less than 2 per cent per annum as against its population, currently estimated at 198 million people and growing at a rate of 2.6 per cent – a growth deficit. Ghana’s population of about 29 million people is growing at the rate of 2.2 per cent while its economy grew at the rate of 8.5 per cent in 2017 - the fastest in five years. We may need to recall that Ghana was the first country in Sub-Saharan Africa to achieve the Millennium Development Goal 1 - which is the target of reducing extreme poverty by half. We never did. Of recent, Ghana has become a middle income country. Although Nigeria is not among the 37 Heavily Indebted Poor Countries, debt service is gulping about a quarter of its 2019 budget (N2.14 trillion). The oil market is still soft, with many traditional buyers of Nigeria’s crude, including India, either slowing, looking elsewhere or seeking alternative energy sources. Output is projected to reach 2.3 million barrels a day. We are currently producing below 2million barrels a day and nobody has told us the source of the miracle of this jump. In short. There is no certainty of rapid production increase. This could negatively impact revenue, cut jobs and put more pressure on the beleaguered households. 2019 will bear the brunt of the general elections activities, which has already negatively impacted the economy. SMEs must therefore guard their loins and brace up for all sorts of negative externalities, including possible delays in the formation of cabinets, depending on who wins the presidential election. All considered, growth may be minimal and there is no need

to restate that SMEs have little or no prospects when an economy is stagnant. The dividends of the failed strategy of neglecting the Warri and Port Harcourt ports and concentrating almost all import trade in Lagos have come to roost. Almost all businesses in the hitherto highbrow Apapa GRA have shut down. Nobody of any economic substance lives in Apapa now, except hapless landlords without an alternative. The economy of Lagos is bleeding but strangely the state is not complaining. Its economists appear too distracted by their huge IGR to think about the disaster in Apapa. Nigerians need to know why we locked down the ports in the South-South? Even more important, SMEs must understand and embrace the reality of the time – the world has gone digital. Services are being migrated to the digital space. There is no hiding place for those that hang on to the dying analogue age. On this matter, there will be no standing on the fence. One is either in or out. Furthermore, exploration, discovery and deep utilization of digital platforms and the social media and marketing strategies will be imperatives. In this regard, investment in capacity development is needful. Many free offerings have been made in this area but operators must realize that there is actually no free lunch. A small training budget even if it is for the key man alone, is unavoidable. Note: The rest of this article continues in the online edition of Business Day @https://businessdayonline.com/

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The ominous silence of Fulani herdsmen

Tochukwu Ezukanma Tochukwu Ezukanma writes from Lagos, Nigeria maciln18@yahoo.com

here are inherent conflicts between sedentary farmers and itinerant herdsmen because of their competing needs for water and ever diminishing arable land and pastures. With population growth and increasing urbanization steadily encroaching on available land, the competition for land between them continually intensifies; increasing the possibility of their periodic clashes. Unfortunately, the Mohammadu Buhari’s presidency brought a new dimension to this understandable rivalry between farmers and herdsmen. Their clashes took a macabre twist: attacks by herdsmen on farmers became too frequent, superfluously violent and extremely deadly. Fulani herdsmen, armed with machine guns and high-powered assault rifles, and a new found audacity, took to the mass-murder of the innocent in farming com-

munities in central and southern Nigeria. And their attacks became well planned and coordinated, evincing strategies and dexterity beyond the scope of mere Fulani cattle-herders. In what is repulsively reminiscent of ethnic cleansing, they attack mostly Christian and none Hausa/Fulani villages in central and southern Nigeria, maiming and killing defenseless men, women and children, raping women, torching homes and destroying entire villages. Ostensibly, the object of these murderous rampages is to secure grazing space and routes. However, the unbridled murderousness of the attacks, and the herdsmen’s penchant for destroying entire villages, displacing their entire inhabitants, occupying the villages and renaming them (giving them Fulani names) betrayed an expansionist agenda. With Buhari, a thorough bred Islamic fundamentalist and a bigoted, nepotistic Fulani irredentist, as president, Fulani expansionism found sympathy and support in the presidency. The herdsmen are the foot soldiers of the Miyetti Allah Cattle Breeders Association of Nigeria, the umbrella association of wealthy and powerful cattle owners, and its expansionist poli-

cies. The average Fulani herdsmen lack the wherewithal to acquire the weaponry in their possession. Invariably, they are armed and sent on their blood-curdling missions by their masters in the Miyetti Allah Cattle Breeders Association of Nigeria. President Buhari is a member, a grand patron, of the Miyetti Allah Cattle Breeders Association of Nigeria. Not surprisingly, as the number of the dead, raped, maimed and bereaved; burnt-down villages; and displaced persons from the herdsmen’s murderous binges mounted, the Buhari administration did nothing, but prevaricate and equivocate. It refused to protect the farming communities targeted by the herdsmen, rein-in the bloodthirsty herdsmen, or prosecute culpable herdsmen and their sponsors. There are palpable evidence that the Nigerian security agencies, at times, encouraged, and even, aided herdsmen attacks on farming villages. In the first eight to nine months of the year 2018, with the obvious acquiescence of the Buhari administration, Fulani herdsmen killed more than 2, 075 persons, burnt down 2, 850 houses and displaced more than 104, 300 individuals. And then, in the last quarter of 2018, it all came to a sudden halt; there was a lull in their murderous spree in central and southern Nigeria.

That lull is ominous; it demands an explanation. The sociopathic, blood-drenched mass-murderers could not have become repentant, and thus, on their own, resolved to end the butchery of the innocent and the forceful takeover of other people’s land. Secondly, the security agencies did not, all at once, become proficient in their work, and can therefore protect the targeted farming communities, or effectively monitor the herdsmen, and nip their attacks in the bud. And, it is not that the Buhari administration had a change of heart, and determined to protect lives and property in these farming communities that were, for long, left at the mercy of Miyetti Allah armed terrorists. The lull is explainable by the nearness of the February 19 2019 presidential election. The negative publicity that attended the murderous lunacy of the Fulani herdsmen was not helping the prospects of President Buhari’s re-election. The killings by the herdsmen outraged Nigerians, and impugned the Buhari administration’s commitment to one of the central constitutional responsibilities of the federal government: the protection of lives and property. They punctured its carefully cultivated aura of impartiality - as encapsulated in the

president’s inaugural statement - “I belong to everybody and I belong to nobody”. They lent credence to the president’s ingrained tribalism and sentimental predilection for Fulani expansionism. To burnish the president’s image and enhance his re-electability, there had to be a respite in the Fulani herdsmen murderous binge. Mohammadu Buhari is an avowed Islamic fundamentalist. He is an unflinching proponent of the Sharia penal code in northern Nigeria, and, even, across the entire country. Although he did not openly declared his support for the Fulani expansionist crusade in central and southern Nigeria, his actions and inactions evinced his support. His re-election in the February 2019 presidential election will spell doom for Nigeria. In addition to the numerous woes it will visit on Nigeria, it will provide the enabling environment for the second phase of Fulani blood-soaked expansionism, which will profoundly rock the fragile peace of our multi-ethnic country. President Buhari’s second term will be a bloody, dangerous and lamentable episode of Nigerian history.

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comment Character Matters with Daps

Dapo Akande Graduate of the University of Surrey, UK, author of the acclaimed book: “The last fight: A personal journey to discovering values.” Contact: dapsakande25@gmail.com

ell me, is there anything quite as nonsensical as being so blinded by self-centredness that you cannot see how it works against your overall interest? This also gives the biblical quote, “do unto others as you would have them do unto you” practical meaning. It’s our natural desire for people to do good back to us and not evil, that more often than not, is what motivates us to do the right thing and not always our unconditional love for them. If we can be smart enough to realise that our individual interests will be better served by cooperating with compatriots, we will undoubtedly find ourselves in a better place. If I give way to you because you want to do something as mundane as change lanes, you and other road users will likely do the same for me when I need the same fa-

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We first (2) vour. I always tell my children that there are more cars on the road than my singular car, so my “little victory” now by “not agreeing” is actually a pyrrhic one as I’ll only be shooting myself in the foot in the long run. That’s the simple truth. Yes, you may have won this battle but with this attitude you certainly cannot win the war. Let’s not even talk of the mental fatigue as a result of always battling on the road, which is just so unnecessary. Most of the exhaustion we feel after driving on our roads is a mental one from battling “enemies” on the road. Forgive me for using that term but that is really what it feels like at times; a me versus them scenario. I’m sure some of you feel me on this. I stand to be corrected by Bible scholars but in my understanding of our Christian Bible, this is in fact scriptural. Why otherwise would God admonish in Matthew 6:33 that we “seek first the kingdom of God and His righteousness” so that all other things can be added unto us? This is because he knows that as human beings we will have certain needs only He can provide, but the best way for us to serve our interest is to serve Him. Why didn’t He say, “seek ye only the kingdom of God” and just stop there? Let’s face it, just about everyone who worships God wants something from Him. We pray to Him so that we can be amongst those whom he shows mercy and compassion, which He made very clear, is His prerogative. It’s not always wealth that we seek. It can be good health, the peace of mind that comes from rest from troubles, divine direc-

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As we’re still struggling as a nation to put round the clock electricity in every home, China is already test running the passenger-carrying hyper loop train which reputedly travels at the literally neck breaking speed of seven hundred miles an hour!

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tion for our lives or blessings for our children to name but a few; and there is absolutely nothing wrong with that. There’s nothing immoral about making requests to God or having expectations of Him. Why would He tell us that all these and more come from Him if He doesn’t expect us to ask for them? To buttress this point He says something startling but which becomes more apparent to most of us as we grew up, which is that the

“the heart of man is desperately wicked”. And in my observation the most obvious wickedness is selfishness, which incidentally actuates most antisocial acts and tendencies. Can’t speak much for those mentally deranged folks who on a whim decide to invade a school Rambo-style, (only to snuff the life out of fellow human beings for no apparent reason;), behaviour which I must say is far more common in the west than here, where there’s nearly always a reason; many a time a pecuniary one in one way or the other. Still, apart for these exceptions, these societies have managed to temper this selfish wickedness by coming to the understanding that cooperative selfishness actually works for everybody. Doing that which pays all while it pays me too. If we look at it this way, we’ll see that all is not lost for this nation. Having a selfish attitude doesn’t necessarily put us beyond the reach of redemption. Even if we don’t manage to get ourselves to the dizzy heights of selflessness collectively, all we need do is tweak it a little to move from the realm of crude selfishness to cooperative selfishness. Since morals can generally be described as actions which society judges as good conduct because they enhance the welfare of human beings and society, this minor adjustment of the dial could represent a paradigm shift from immoral to morally accepted behaviour. Maybe then, the kleptomaniac employee will realize that the best route to success is to work for the success of his employers and maybe, just maybe,

the politician will also recognise that the best way to secure not just his own future but that of his offspring is actually to implement policies that benefit the society as a whole. My brothers and sisters, there’s still hope. I can hear you saying “Ah! This is so idealistic”. Yes it is but let me ask you, is there a better mark to aim for? Even if we don’t quite hit it, as no society anywhere ever has, we would have achieved wonders while trying. As we’re still struggling as a nation to put round the clock electricity in every home, China is already test running the passenger-carrying hyper loop train which reputedly travels at the literally neck breaking speed of seven hundred miles an hour! Not because they don’t have some of the best trains in the world already but because they must continue to inch closer to the mark of the ideal. Nothing is impossible. With all said and done, this does not in the slightest way take anything away from the rare case of pure selflessness, which will forever sit at the pinnacle of the love tree. That is why Jesus admonished in John 15:12, “love each other as I have loved you. Greater love has no one than this: to lay down one’s life for one’s friend.” Some say “me first” but I would rather we said “we first”. In that same spirit of love which this season represents, I wish you all a truly Merry Christmas. Changing the nation...one mind at a time.

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Nigeria transportation sector: A destination for investment in Africa

FESTUS OKOTIE

Okotie, a maritime transport specialist, writes via fokotie.bernardhall@gmail.com

igeria is a highly populated country of over 170million people, Gross Domestic Product 397.47billion US dollars 2018, the population is quite diverse which makes room for potential growth of the economy. The 1973 oil boom pushed the transportation systems to a point where both infrastructural and transportation improvements became a high demand which necessitated the quest for knowledgeable business partners and investors that are ready to tap into the abundant opportunities available that will stir up a constant need for improvement, upgrade and opening up of the entire transportation system in Nigeria. The enormous resources avail-

able in Nigeria transportation sector are mostly yet to be fully explored, it was reported that apart from crude oil Nigeria other natural resources include but not limited to the following natural gas, tin, iron ore, coal, limestone, lead, zinc, arable land, deep ocean, vast seas which are worth billions of dollars. There is no denying the fact that tremendous opportunities are available for foreign investors in Nigerian transportation (railway, pipeline, airways, maritime and land) sector, agriculture, natural resources, tourism, consumer goods, textiles, entertainment, sports. There are two ways for investors to look at investing in Nigeria Transportation sector, these are foreign portfolio investments which includes investing in stocks and securities of an existing Nigeria transportation (railway, maritime, air, pipeline and land) company or foreign direct investments (FDIs) which involves establishing a business organisation and acquisition of business assets and playing actively in transport businesses in Nigeria. Organisations interested in doing businesses in Nigeria must be incorporated as a separate entity in Nigeria or have

a local company as a partner or exempted by the President of Nigeria if it’s not incorporated according to the Nigerian law. The economy of Nigeria recently experienced and came out of recession caused by low oil revenue and lack of strong diversification in other key sectors of the economy. However, it has made policy decisions, determination and strong decisions which rekindled our nation’s economic prospects, it was reported by the Nigerian Bureau of Statistics, that capital inflows, foreign direct investments, portfolio and other investments reached US$12billion. In 2017 majorly as a result of policy changes and improvement in the oil sector. There are many components that influence the level of foreign investments in Nigeria’s transportation sector, one of such is the large consumer market. The Nigerian government has provided a number of incentives related to taxes, exports, changes in policies and other factors to boost more investments from within and outside the country to boost the ease of doing business in Nigeria. The process of registering a business has also been simplified, the free flow of investments capital and freedom

from expropriation of investments has further boosted Nigeria as an investment destination, investors are now allowed to freely repatriate their capital and net profit after tax without any restrictions provided there is evidence of certificate of capital importation (CCI) which is an evidence that their investment came into the country. The increase in the influx of direct investment in Nigeria has been a crucial factor in the economic growth of the country and has facilitated improvement in the working population through transfer of knowledge and technical skills, aided in the quality and standardization of processes and products, infrastructural development, generation of revenue through taxation and has encouraged exports of local products. In early 2017, the government launched the Economic Recovery and Growth Plan (ERGP), which led the drive to review previous policy decisions. The new policies included an investor and exporter foreign exchange window (IEFX) and tightening of monetary policies, the priorities of the ERGP include improving transportation infrastructure, driving industrialization,

focusing on SMEs, stabilizing the macroeconomic environment and achieving agriculture and food security. Some of the advantages of doing business and exploring the investment opportunities in Nigeria are: taking advantage of the high population growth, abundance of natural resources, untapped target market of people, great economic potential due to large number of people, high demand for global imports, largest consumer market in Africa, investment incentives in exports oriented businesses. At the moment Nigeria is well positioned for business and its transportation sector is a destination choice for any investor globally especially because of its huge population, urgent need for speedy and exhaustive upgrade across all modes, hunger of the present government to deliver the dividends of democracy by providing quality life for its citizens, improve the socioeconomic status of its citizens by providing modern infrastructures, a business friendly government in place and the need to diversify and open up the economy to attract more investment opportunities.

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Nigeria’s anti-corruption war

here is a growing sense of déjà vu in the country that the Buhari administration may not, after all, be able or morally fit to decisively fight corruption in Nigeria as the President promised time and again before and after the elections. Interestingly, even the President and his Vice President - now Acting President - have been voicing their frustration with the level of corruption in the country. The Acting President, in particular, over the last week had severally complained at the pervasive and systemic nature of corruption, almost despairingly. But this is unfortunate. The administration set the war against corruption as its core mission in government. Rightly, during the President’s inauguration, the President declared that if Nigeria does not kill corruption, corruption will kill Nigeria. He even went ahead to set up a Presidential Advisory Council on Corruption, headed by an eminent lawyer and professor to help with studies of the nature of corruption and advise the administration how best to tackle the scourge. Of course, in the first weeks of the administration, the right noises were made and the message reverberated even outside the country. There was a general feeling that there was a new Sheriff in

town and the President’s ‘body language’ as it was called then prompted the anti-corruption agencies - the Economic and Financials Crime Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to wake up from their deep and long slumber. Subsequently, the EFCC especially went on a rampage, arresting indiscriminately, engaging in media trials and obtaining socalled confessional statements under duress and splashing them generously on the pages of the newspaper but with few and largely unsuccessful arraignments, prosecutions and convictions. It was not long before the war on corruption went the way of others before it – prosecution of only opposition politicians and people who disagree with the President, protection of corrupt associates and cronies, politicisation and cherry picking of those to prosecute and those not to, and hypocrisy in the war against corruption. Like a respected BusinessDay columnist termed it “despite the moral outrage and righteous indignation often expressed by Nigerian leaders, there is no credible commitment to tackling corruption”. If not how can the government quickly and without investigation absolve grave and weighty corruption allegations on the following close associates of the President: General Tukur Burutai, Chief of Army Staff, General Abdul-

rahman Dambazau, Minister of Interior and former Chief of Army Staff, Abba Kyari, and Chief of Staff to the President, Babachir Lawal, Secretary to the Government of the Federation (SGF). Interestingly also, the Presidential panel set up to probe arms procurement between 2007 and 2015, and whose reports were being used to prosecute past military chiefs was hurriedly disbanded the moment it began moves to investigate the tenure of the Present National Security Adviser, Babagana Monguno as Chief of Defence Intelligence between July 2009 and September 2011. The curious reason given by the government for its dissolution was that it has outlived its usefulness. If there was any doubt about the how the administration fought its war on corruption, the cases against former governor Fayose and the present Kano state governor has dispelled any doubt. While the anti-graft agency saw nothing in investigating Fayose even while in office and couldn’t wait for him to finish his term before hounding him, Governor Ganduje has been videoed purportedly receiving dollar bribes severally and neither the anti-graft agency nor the presidency has said a word. Instead, the president was videoed in France commending the governor for his many accomplishments in office. Of course, president Buhari will not want to say anything

bad about the Kano state governor where he got over 2 million votes in 2015 and where the governor has again promised him another 5 million votes in 2019. No wonder an analyst recently quipped that “Buhari’s so-called anti-corruption fight is the most invidiously selective, the least transparent, the most brazenly unjust, and the silliest joke in Nigeria’s entire history.” How can the President use the EFCC to smear his opponents in the media, but tells falsifiable lies to defend, deflect, minimise, and excuse the corruption of his close aides and political associates? Like we have always maintained, it may be easier to create agencies to fight corruption. It may be easier to launch a media campaign against perceived corrupt officials or even make scapegoat of some, but until the government gets serious and shows absolute commitment to the fight against corruption regardless who is involved, it usually declared wars on corruption are bound to fail. As it stands, it will be difficult for the government to convince Nigerians that it is seriously out to fight corruption when most of the people around the President have been accused with strong evidences of corruption, but hurriedly cleared by the President. We fear, like some analysts have volunteered, that the President is both morally and temperamentally unfit to fight corruption.

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Thursday 27 December 2018

CITYFile Isale Eko marks annual cultural day

Sales of chicken in one of Lagos markets to mark the season

Lagos: Hope dims on free BRT bus ride on Christmas, New Year days JOSHUA BASSEY

or the first time in about ten years, Lagos is celebrating this year’s Christmas and 2019 newyear day without the accompaniment of the free bus service usually provided by the state government to ease the movement of people within Lagos metropolis. Although no official explanations have been offered by the government as to why it is withdrawing the free bus service, BusinessDay gathered that an approval was not secured from the approving authority to enable the buses roll out. The free bus ride was introduced to the excitement of residents in 2008. It usually involves the deployment of several high capacity buses from the Bus Rapid Transit (BRT) fleet on designated routes to ferry Lagosians to and fro their destinations on special festive days such as Christmas, Eid-el-Fitri, and New Year day (January 1). The state government usually negotiates a deal with the operators of the BRT system to deploy their buses and drivers on each of the designated routes after an

approval would have been secured to that effect from the state governor. The initiative had been sustained since it commenced about a decade ago with the first licensed operator of the BRT system- National Union of Road Transport Workers (NURTW). NURTW lost the BRT license to Primero Transportation Services Limited, in 2015. The free bus ride is usually announced to the expectant Lagosians by the Lagos Metropolitan Area Transport Authority (LAMATA), an agency of the state government and regulator of the BRT system. A source in LAMATA, when contacted on Monday, said: “We haven’t announced it because it doesn’t look like there will be a free bus ride this year.” Also, Fola Tinubu, managing director of Primero Transport Services Limited, the operator of the BRT system, told BusinessDay on a telephone that he was outside the country, and would speak upon his return to Nigeria. Ladi Lawanson, the state commissioner for transportation, who also confirmed the non availability of the free bus ride this year, when contacted, said there

was no approval for it. “There is no approval for free BRT ride as we speak. But if there is an approval for it, you will hear from us” said Lawanson. The free bus ride was introduced by the administration of Babatunde Fashola to celebrate 2008 Christmas day and 2009 new-year eve. Kayode Opeifa, the special adviser to Fashola on transportation, at the time, had explained during a joint press conference with then managing director of LAMATA, and CEO of LAGBUS, Dayo Mobereola and Tunde Disu, respectively, that the initiative was part of the gains of democracy for tax payers in Lagos State. He added that the deployment of the high capacity buses was also to help decongest traffic and check crashes usually recorded on such days when most people put their vehicles on the roads. The buses were deployed from 7:00am to 10:00pm on Christmas day while on new-year eve they were to operate from 10:00pm to 4:00am. The administration of Governor Akinwunmi Ambode had continued the practice up until 2017.

Yuletide: Prices of foodstuff soar in FCT

rices of goods and services have soared in major markets across the Federal Capital Territory, (FCT), Abuja. A market survey conducted by on Monday revealed that prices of perishable items have increased when compared to a few months ago. The survey showed that the hike is caused by high cost of transportation, while it was divergent views by sellers with the level of sales this season. Some traders selling food items, however, welcomed the development, saying it was as profitable. A tomatoes seller at Gwagwalada Market, Salomi Kaka, attributed the increase in price of tomatoes to high demand of the item to the Christmas and new year celebrations.

According to her, the economy has affected a lot of homes, as some traders can no longer purchase goods at the usual rate, adding that virtually all goods in the market have soared. The price of a big basket of tomatoes formerly sold for between N5,000 and N6, 000, is now sold at N8, 000 and N10, 000, respectively. The price of a medium basket of tomatoes formerly sold between N2, 500 and N3, 000, is now sold at N5, 000 and N6, 000, depending on the quality of the produce. Hassan Usman, an onion seller at Abaji market, said that the prices of perishable goods would crash after the Christmas and new year celebration. Usman said: “There has been great improvement in the market as regards to buying of food items because of the

Christmas celebration. The prices of some food items that are produced locally are high in demand in the market and that is having a good impact in our economy.” A small sack of onions formerly sold between N700 and N800 now goes for N2, 000 and N3, 000, while a big sack formerly sold between N7, 000 and N9, 000 is now N11, 000 and N13, 000. Oluchi Eze, a customer, who came to buy onions, added that towards the end of the year, especially during the Christmas period, prices of perishable items are always on the high side. Eze called on the government to build silos for traders, who sell perishable items, such as tomatoes, pepper and vegetables for preservation to make them available to customers at all time. NAN

he Isale Eko Descendants’ Union of Lagos Island is rolling out the drums on Sunday, December 30, to mark the maiden edition of Isale Eko Day, in Lagos. The Isale Eko Day is an event aimed at promoting the togetherness and oneness of indigenes, friends and well wishers of Isale Eko. The occasion will feature a walk-about of Isale Eko and specially selected heritage sites including palaces, religious places among other different quarters within Isale Eko precincts, for about 2-3 hours, starting from 8:00am. According to a statement signed by Yomi Tokosi, chair of the planning committee, and Wale Irokosu, the secretary, the aalk-about of the heritage places, would be followed by a celebration at the Lagos City Hall, along the Catholic Mission Street, Lagos, at 4:10pm. Isale Eko which translates, literally, to ‘Downtown Lagos’ or metaphorically, ‘origin of Lagos’ or ‘Heart of Lagos’, is the core of Lagos Island. It is the very heartland of the island as it is home to its traditional institutions and the most inhabited area of the Lagos Island till date. Settlement on the island started from here and it is the traditional home of Lagosians. According to the Isale Eko Descendants’ Union, an apolitical socio-cultural organisation founded for the promotion of education, heritage and oneness, the greatness of Isale Eko, its history, culture and diversity, ‘is worthy of annual celebration’ and this informs the Isale Eko Day.

Flood: NEMA wraps up distribution of relief items in Kogi

ational Emergency Management Agency (NEMA) says it has concluded the distribution of relief items to flood victims in four local government areas of Kogi. NEMA team leader in charge of emergency operation Centre B, Tope Ajayi told newsmen in Lokoja that the beneficiaries were from Ajaokuta, Ofu, Igala-Mela and Idah local government areas. Ajayi listed the items distributed to include food and non food items, including rice, beans, corns, groundnut oil, millo, milk, sugar, salt, detergents, mattresses, mats, tin tomatoes. Others, he added were clothes, blankets, roofing sheets among others. He further disclosed that over 6,000 households in the areas mentioned benefitted, adding that the gesture was a continuation of the agency’s intervention in communities affected by the 2018 floods in the state. Ajayi said that the assistance was also in line with the desire of the Federal Government to provide succour to flood victims across the country, through the agency. While handing over the relief items, Ajayi expressed the sympathy of the Managing Director of NEMA, Mustapha Maihaja, to the victims and advised them to see the disaster as an act of God. He stated that victims in all the local governments affected by the flood n the state would be reached out to by NEMA. Also, the commissioner for environment and natural resources, Sanusi Yahaya, commended the Federal Government for aiding the victims. He said the victims required the support of all to start life afresh. The commissioner was represented at the occasion by Musa Muhammed, his personal assistant.

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BUSINESSTRAVEL

Turkish Airlines reaches 81.4% load factor in November 2018 Stories by IFEOMA OKEKE

urkish Airlines, has recently announced its passenger and cargo traffic results for November 2018, reaching 81.4percent load factor. An important indicator of the continued growing interest in Turkey and Turkish Airlines in the last quarter is the growth in the number of passengers, revenue per kilometer and load factor. According to the November 2018 traffic results; the total number of passengers carried went up by four percent compared to the same month of 2017- reaching 5.5 million passengers, and Load Factor went up to 81.4percent. Also in November, total load factor improved by two points compared to the same period of

2017, while international Load Factor increased by three points to 81percent, domestic Load Factor reached to 84percent. International-to-international transfer passengers (transit passengers) went up, while the number of international passengers excluding international-tointernational transfer passengers (transit passengers) went up by 13percent. In the same month, cargo/mail volume continued the double digit growth trend and increased by 25percent, compared to the same period of 2017. Main contributors to this growth in cargo/mail volume, are North America with 45percent, Africa with 32percent, Far East with 23percent and Europe with 21percent increase. In November, Africa, North America, Far East and Middle East showed load factor growth of five

points, five points, three points and two points respectively. According to the January-November 2018 traffic results; there was an increase in demand and total number of passengers was 10percent, over the same period of last year. Total number of passengers reached to 69.7 million. Total Load Factor improved by 3 points up to 82percent, while international Load Factor increased by three points reaching 82percent, domestic load factor went up by one points reaching 85percent. Excluding international-tointernational transfer passengers (transit passengers), number of international passengers went up significantly by 12percent. Cargo/ mail carried during the eleven months of the year also increased by 25percent, reaching to 1.3 million tons.

NAHCO gets ISAGO recertification, secures RA 3 revalidation

he Nigerian Aviation Handling Company Plc (nahco aviance) has received further endorsement with the recertification of its operations by the International Air Transport Association (IATA). The new IATA Safety Audit for Ground Operations (ISAGO) Registration recertification which expires June 12, 2021, i.e. three years from now comes the same time the Company announced it has received the RA 3 revalidation of its operations by the European Union in the country’s major airports. It would be recalled that in 2010, nahco aviance was awarded the ISAGO certification, the IATA Safety Audit for Ground Operations, becoming the first ground handling company in West Africa to receive one of the aviation industry’s highest honours for safety and service quality. The recent ISAGO recertification came almost the same time the third Country EU Regulated Agent (RA3) validation was issued to a number of NAHCO’s airport operations. The stations include Lagos, Abuja, Port Harcourt and Kano. The ISAGO audit and ISAGO registration means that nahco aviance has demonstrated conformity with the applicable ISAGO standards and recommended practices as specified in the ISAGO Ground Operations Manual Edition 7 certifying its area of operations. Areas covered by the recertification include Organisation and Management (ORM), Load Control (LOD), Passenger and Baggage Handling (PAB), Aircraft Handling and Loading (HDL), Aircraft

Ground Movement (AGM) and Cargo and Mail Handling (CGM). The listed benefits of ISAGO registration for ground handling and airport businesses include safer ground operations, fewer accidents and injuries, elimination of redundant audits from airlines, reduced costs: less damage and less audits, uniform audit process and harmonised standards. Other benefits are improved safety oversight, harmonized auditor training and qualifications, improved quality standards and enhanced understanding of high risk areas within ground operations. The NAHCO Lagos station, first got its validation, the first of its kind in Nigeria, in June 2014. PortHarcourt’s first validation was on 22 September 2016. Lagos, Port Harcourt were then revalidated on 16th July, 2018 with the expiry date of 16th July, 2022. Abuja station got its first validattion in August 2014, and will expire in August, 2019. Kano, first validated this year will also expire in 2022. The Third country EU regulated agent (RA3) is a designation given to a cargo handling entity located in a third county that has been validated and approved as such on the basis of an EU security validation. The organisation ensures that security controls, including screening, where applicable is applied to the consignment bound for the union and that the consignment has been protected from unauthorized interference from the time that those security controls were applied until the consignment are loaded onto an aircraft or are otherwise handed over to an ACC3 – certified carrier or other RA3 operator.

NAHCO gets ISAGO recertification, secures RA 3 revalidation

to a number of NAHCO’s airport operations. The stations include Lagos, Abuja, Port Harcourt and Kano. The ISAGO audit and ISAGO registration means that nahco aviance has demonstrated conformity with the applicable ISAGO standards and recommended practices as specified in the ISAGO Ground Operations Manual Edition 7 certifying its area of operations.

Areas covered by the recertification include Organisation and Management (ORM), Load Control (LOD), Passenger and Baggage Handling (PAB), Aircraft Handling and Loading (HDL), Aircraft Ground Movement (AGM) and Cargo and Mail Handling (CGM). The listed benefits of ISAGO registration for ground handling and airport businesses include safer ground operations, fewer

accidents and injuries, elimination of redundant audits from airlines, reduced costs : less damage and less audits, uniform audit process and harmonised standards. Other benefits are improved safety oversight, harmonized auditor training and qualifications, improved quality standards and enhanced understanding of high risk areas within ground operations. The NAHCO Lagos station, first got its validation, the first of its kind in Nigeria, in June 2014. PortHarcourt’s first validation was on 22 September 2016. Lagos, Port Harcourt were then revalidated on 16th July, 2018 with the expiry date of 16th July, 2022. Abuja station got its first validattion in August 2014, and will expire in August, 2019. Kano, first validated this year will also expire in 2022. The Third country EU regulated agent (RA3) is a designation given to a cargo handling entity located in a third county that has been validated and approved as such on the basis of an EU security valida-

tion. The organisation ensures that security controls, including screening, where applicable is applied to the consignment bound for the union and that the consignment has been protected from unauthorized interference from the time that those security controls were applied until the consignment are loaded onto an aircraft or are otherwise handed over to an ACC3 – certified carrier or other RA3 operator. The advantage of having RA3 validation is that consignments once screened, protected before loading into an ACC3 validated carrier are exempted from further screening and can enter any member state. Commenting on these industry achievements, Idris Yakubu, the managing director/CEO, nahco aviance, said the recertification is reward for hard work. He noted that the certifications show that NAHCO’s thorough, diligent and consistent processes are among the best anyone could find in the world.

Thursday 28 December 2018

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08098710024

SME growth and implication for financial inclusion UJU IKEDIONU

much lower compared with United Kingdom’s 54 percent; United States of America’s 50.3 percent; Bangladesh’s 80 percent; Belgium’s 66.6 percent; South Africa’s 60 percent; Malaysia’s 57.7 percent; India’s 80 percent; Ireland’s 66.5 percent and China’s 58.8 percent. Financial inclusive growth in recent times has gained enormous attraction globally as economists directed much of their attention to finan-

cial inclusion through SMEs. However, about 1.7 billion adults remain unbanked – adults with no bank accounts with financial institutions or mobile money providers, according to the 2017 global Findex data by the World Bank Group. It is no news that the majority of the unbanked firms in Nigeria are SMEs. Inaccessibility to financial services, poor management, expertise and harsh business environ-

ment are the key constraints to SMEs growth in Nigeria. Obviously, relationship gap exists between SMEs and financial institutions in the bid to promote financial inclusion. This gap is further worsened by SMEs’ lack of confidence in the financial sector which is a major discouragement to them from depositing their earnings in the bank. On the part of SMEs, they are of the opinion that lack

the formal financial system that will provide them with services ranging from savings, payments, credit transfers and insurance. Commercial banks have the capacity to financially include SMEs but lack the penetration as most SMEs operate far from their reach while the microfinance banks that are entrenched with these SMEs lack capacity to financially include them. Therefore there is need for large financial service providers to develop innovative ways to bridge the SME credit funding gap to support financial inclusion. This they can do by providing strong partnerships and linkages to various lending solutions that have the real financial inclusion focus. In other to improve their risk management strategies, banks should work on having better understanding of the SME market, seek information and manage the knowledge of who their clients are and try to acquire and serve them well. SMEs should link with more formal businesses and seek to attract Corporate Social Responsibility (CSR) programmes for capacity building. SMEs need to have a better understanding of the business they operate by getting appropriate advisory services. Providing the needed infrastructure for easy and lower cost business operation, and advocating standardized measures for taxing the SMEs should be the key focus of government in achieving growth in financial inclusion. By expanding the productive capacity of SMEs, through saving and consumption, there will be possibility for the citizens to improve and investment in opportunities that will be created, which in turn becoming the catalyst for higher growth in financial inclusion. 12734BDN

he continuous rise in unemployment and poverty rates in Nigeria has become so alarming in recent times. Notwithstanding, analysts are optimistic the solution to the intricate macro-economic challenges and Nigeria’s ailing economy lies in the growth of small and medium enterprises (SMEs). When equipped with easy access to credit and very conducive business environment, SMEs are capable of creating employment opportunities, and enhance the path to improve entrepreneurship, which in turn reduces the level of poverty. In a bid to enlarge government’s financial inclusion agenda down to the grassroots, a scheme designed for micro traders termed “Trader moni” was launched in 2018 by the Government Enterprise and Empowerment Programme (GEEP) in partnership with the Bank of Industry (BOI). It allows for loan of at least N10,000 which free collateral repayable within a six-month period. The scheme targets to give loan to 2 million trades by the end of 2018. According to analysts, the scheme can only achieve its goal of getting SMEs financial included if banks account are required in the disbursement of credit rather than cash. Stakeholders hold it that SMEs in Nigeria constitute more than 80 percent of Nigerian businesses, yet contribute less than 50 percent to the nation’s GDP, as well as account for about 10 percent of the total employment creation in the country, according to the data from the Standard Bank. In Nigeria, SMEs contribution to GDP and employment creation is

of confidence, appropriate products, rigid policies and innumerable requirements of financial institutions in the process of opening bank account, high bank charges and cost of capital inhibit them from being financially inclusive. Most SMEs operate with low-income and to them, this has reduced the need to transact businesses through the banking system as they contend with mere sustainability issues. Financial service providers on the other hand prefer to approve loans for large businesses than SMEs that are difficult to reach and manage. They claim that there is high risk of non-performing loans associated with lending to SMEs as majority of them lack the minimum requirements. Bank’ s desire to approve loans to SMEs is on the low side due to lack of information on proper credit rating of those enterprises and without this information, their credit worthiness cannot be guaranteed. These are the factors that have contributed to huge financial exclusiveness. Limited policies and programmes set up by the Nigerian government to enhance and promote financial inclusion of SMEs pose treats to financial inclusive growth. Even though government has instituted rules and legislations to protection the people from being exploited by the banks, there are no proper checks and balances as to how banks meet up with those rules and no sanctions for the banks that fall short of the rules. Financial inclusion has proven to be a tool to bridge inequality, combat poverty, promote social cohesion, exploit the demographic dividend and provide access to finance. Its aim also extends towards giving the unbanked opportunity of migration into

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LADOL Free Zone first in W/Africa to get new ISO certifications

Pg. 17

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

GLOBAL MARKETS

Man. Utd get Solksjaer boost as stock climbs by most in 2yrs LOLADE AKINMURELE

h e N e w -Y o r k listed shares o f Ma n c h e s t e r United have rall i e d s i n c e t h e Eng l i s h football team pulled the plugs on Portugese coach, Jose Mourinho. Mourinho’s exit December 18, coincided with Man. Utd stock’s biggest daily gain since 2016 as investors seemingly cheered the appointment of club legend, Ole Gunnar Solksjaer, who took up Mourinho’s old role l a s t w e e k a s t e nt at i v e manager. The club’s share price rose 9.47 percent to $18.94 (N6,818) the day Mourinho was axed, having shed 12 percent over the Portugese manager’s two and a half year stay at the football club. Other publicly-listed football clubs like Italian club Juventus and German team, Borussia Dortmund, have all gained in that period. Investors had sold-off the stock amid fears that

the club may fail to book a spot in Europe’s lucrative Champion’s league. O nly teams that finish within the top four spots are eligible to qualify for the competition, which has often contributed to the bottom-line of world’s most profitable club. Solksjaer has been brought in to help Man. United, languishing 8 points behind fourthplaced Chelsea in sixth place, secure a top four finish. Man. United’s revenue depends on the Norwegian’s success. A failure to book one of the top four spots would have significant implications for fiscal 2020 revenue growth. Analysts estimate United would book about $93 million (N33.4 billion) of Champions League broadcast revenue this year were it to reach the quarter finals of the European competition, as it has typically done in previous years. When it won the lesser Europa League in 2017, Deloitte estimates it re-

L-R: Yomi Adebanjo, company secretary, Fidson Healthcare Plc; Adedapo Adejoke, president/chairman, Chartered Institute of Stock Brokers, and Eniola Fadayomi, member, PEARL Awards board of governors, during the award ceremony recently.

ceived $51 million (N18.4 billion). Manchester United led Deloitte’s Football Mone y L eagu e as Europ e’s richest club by revenue for a 10th time in the 2016-2017 period, with

the club’s success in the Europa League seen as critical in retaining the top spot. Revenue was $734.3 million (N224 billion), ahead of both Real Madrid and Barcelona. Its

commercial income amounts to 48 percent of revenue and is more than 40 percent higher than the team’s closest domestic rival, Manchester City. Solksjaer has started well in his new role, lash-

ing 5 goals past struggling Cardiff in a 5-1 premier league match, the most number of goals scored by any United team since 2013, in for mer iconic manager, Alex Ferguson’s, last season in charge.

DEALS

Absa group takes over Barclays Africa HOPE MOSES-ASHIKE

panies begin separating operations. In 2016, Barclays started reducing its 62.3 percent shareholding in Barclays Africa Group after changes in international regulations following the 2008 global financial crisis made it less attractive to own stakes in large banks abroad. On 11 July 2018, Absa Bank in South Africa and, Absa Group overall launched their new identity. This marked the official commencement of a new era for the bank – one characterised by its tenacious African spirit and commitment

to continue being an important part of the African growth story. The journey to the new brand was a collaborative one involving colleagues, customers and other key stakeholders across the continent. “Our new brand is an expression of the new identity we are creating as an entrepreneurial, digitally led bank with deep knowledge of African markets and with global scalability”, Marie Jamieson, head of marketing and communications Africa regions, said while addressing journalists across Africa. Speaking to about 20

selected journalists from nine African countries including Nigeria who had completed a Data Journalism Master Class at the Rhodes University; she said Barclays-branded subsidiaries across Africa will be rebranded in June 2020. “We remain a financially independent, strong and well-capitalised African banking group after the separation: clients and customers can bank with us as confidently as you always have”, Jamieson said in South Africa before the commencement of Highway Africa Conference held

in Makhanda (formerly Grahamstown)recently. Absa Group Limited reported an increase in earnings, revenue and dividend for the first half of 2018. The group reported its first set of financial results as `Absa Group’ after being renamed on 11 July 2018 as it separates from the international Barclays PLC group. The bank in 2018, launched its second Absa Africa Financial Markets Index (AAFMI) as the outcome of its partnership with Official Monetary and Financial Institutions Forum (OMFIF).

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

The index aims to present current positions, and also make suggestions as to how economies can improve market framework to meet yardstick for investor access and sustainable growth. In the index report, countries are assess around six pillars: market depth, access to foreign exchange, tax and regulatory environment and market transparency, capacity of local investors, macroeconomic opportunity, and enforceability of financial contracts, collateral positions and insolvency framework.

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MARITIME

LADOL Free Zone first in W/Africa to get new ISO certifications AMAKA ANAGOR-EWUZIE

he Lagos Deep Offshore LogisticsBase(LADOL)Free Zonehasbrokennewground by becoming the first company in the whole of West Africa to be awarded the International Organization Standardization (ISO) 9001:2015 and45001:2018+14001:2015certifications. LADOL’s ISO 9001:2015 certification was achieved after a rigorous and transparent audit process conducted by Bureau Veritas while ISO 45001:2018+14001:2015 was conducted by RINA between December 10 -14, 2018. This certification not only shows that LADOL’s success is built on hard work, consistency, long-term planning and sustainable business practices,buthasalsoproventhatNigerian companies can lead the way and exceed international standards. Being the first company in Nigeria to achieve the new ISO

45001:2018 Occupational Health andSafetyManagementcertification and the only one to have both ISO 9001andISO14001:2018,hasplaced LADOL among an elite category of companieswhichareinternationally recognised for best practices. According to ISO, achieving 9001:2015 certification means that an organization has demonstrated customer focus, leadership, innovation of people, systematic approach tomanagement,continualimprovement, factual approach to decisionmaking and mutually beneficial supplier relations. Commenting on this, Amy Jadesimi, managing director of LADOL, attributed the new feet to the hardworkanddedicationofLADOL staff. “Many staff members worked long hours, and everyone was enthusiastic and collaborative. According to her, obtaining the certifications was part of LADOL’s long-term plan, which its management will continue to improve on every year to exceed international standards.

Jadesimi, who said that Nigerian companies are very well placed to taketheleadinseveralareas,leveraging off the nation’s huge untapped and under-served market, added that having strong quality and safety standards is a must in business. “United Nations 17 Sustainable Development Goals also provide a template on which we can build new business policies, procedures and models that are most likely to be highly profitable in the medium to long-term,” she added. The newest version of the ISO 9001 certification contains key updates including an emphasis on risk-based thinking to enhance the application of the process approach, improved applicability for services and increased leadership requirements. ISO 45001 targets reduction of occupational injuries and diseases. The standard is based on OHSAS 18001, conventions and guidelines of the International Labour Organization including ILO OSH 2001, and national standards.

L-R: Kemi Evbota, senior group head, human interests & admin, SO&U Group; Uche Osoka, group art director, SO&U; Udeme Ufot, group managing director, SO&U; Boyce Akpata, Board Member, SO&U; Ima Abasi Esu, senior brand director, SO&U; Anthony Ekun, creative director, SO&U Group at the SO&U Group GIVELOVE Outreach in Lagos.

INSURANCE

NSE approves GNI’s delisting application OLUWASEGUN OLAKOYENIKAN

he Nigerian Stock Exchange (NSE) has approved an application made by Great Nigeria Insurance (GNI) Plc on the voluntary delisting of the company from the local bourse. The application followed a recommendation by the Board and Directors of the underwriting firm to de-list the company from NSE at its Extra-Ordinary Meeting (EGM) of GNI held on July 25, 2018 as it was not benefitting from its listing on the NSE. “The company’s shares continue to trade at a significant discount to the intrinsic value. Moreover, the Company is bearing unnecessary cost in complying with its listing obligations,” the insurance firm said in a notice sent to the NSE. Although, the approval is subject to GNI Plc’s evidence of opening an escrow account in the registrar’s name and evidence that shareholders who have accepted to exit have been paid. The insurance company said it has opened an escrow account with GTL Registrars and Data Solutions Limited and has made sufficient provision of funds to shareholders who have accepted

the exit consideration NO.50 per share. According to GNI, the exit consideration is based on the highest price of NO.50 at which the company’s shares have traded in the last six (6) months preceding the date of the EGM where the resolution to de-list was passed. Through the voluntary delisting, GNI’s Directors would be exercising a regulatory provision that will shield the company from any enforcement of action that the NSE may effect, and would be providing an exit opportunity to minority shareholders who do not want to remain in an unlisted company through the delisting process. The NSE in its latest X-Compliance Report identified GNI with 16 percent of free float as one of the eighteen publicly quoted firms with free float deficiency. The insurance firm fell short of the 20 percent minimum free float requirement for companies listed on the Main Board of the NSE. Trading in the shares of the company was suspended by NSE on July 5, 2017 for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to

submit their periodic financial statements and reports within stipulated timelines. Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period. In the last five years, the shares of GNI have largely traded at 50 kobo per share, leaving little or no return on the shares held by the minority shareholders. “Shareholders are not benefiting from the continued listing as they are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding,” GNI said in a notice to the NSE. GNI Plc is one of Nigeria’s foremost Insurance firms with a composite license that allows it to underwrite Life and General insurance business. The Company started its operations in 1960, and has accumulated over 55 years of insurance underwriting, financial advisory and real estate investments.

L-R: Omolara Banjoko, senior brand manager, Three crowns milk; Pauline Pambolo Daniel, star winner; Ben Langat, managing director, Friesland Campina WAMCO; Jennifer Menakaya Ikono, star winner; Chris WulffCaesar, marketing director, Friesland Campina WAMCO, and Adaobi Okonkwo, star winner, when the Three Crowns Mums of the Year 2018 paid a courtesy visit to the Company’s head office in Lagos before their departure for Dubai, United Arab Emirate

L-R: Olusegun Odubogun, director of FCMB Group Plc; Oluwatoyin Ashiru, director, and Felicia Obozuwa, divisional head, corporate services, during the Christmas Carol & Thanksgiving Service of FCMB.

INSURANCE

Continental Reinsurance appoints Patricia Ifewulu as acting company secretary OLUWASEGUN OLAKOYENIKAN

eading Pan African Reinsurance firm, Continental Reinsurance Plc (CRe Nigeria), has announced the appointment of Patricia Ifewulu as the acting company secretary. In a notice sent to the Nigerian Stock Exchange (NSE) by the insurance firm, Ifewulu’s appointment followed the retirement of Abimbola Falana as the company secretary effective December 31, 2018. “In view of the above, Ms. Patricia Ifewulu will be taking over the role of Ag. Company Secretary effective January 1, 2019,” the insurance company stated. Shares of Continental Reinsurance rose to an all-time high of N2 Thursday, November 29 on the floor

of the NSE after its parent company, Continental Reinsurance Africa Investments Limited (CRe Investments), offered to acquire all its outstanding and issued shares. The acquisition is “to initiate a much needed restructuring exercise forCReNigeriawithaviewtoconsolidating the CRe Nigeria’s operations and repositioning it for enhanced competitiveness in the global insurance market,” CRe Nigeria said in a separate notice to NSE. CReInvestmentsisofferingN2.04 per share for the 10,372,744,314 ordinary shares of 50 kobo each or 1 ordinary shares of US$1 each in the capital of CRe Investments for every 176 ordinary share of 50 kobo each held in CRe Nigeria. Despite the rally in the shares of CRe Nigeria, the stock lost 10 percent

to close at N1.80 after the close of business on Monday, December 3 at the Lagos bourse. Continental Reinsurance has since then maintained mixed performance at the NSE, closing at N1.85 on Monday, December 24 while its year-to-date return stood at 32.14 percent. ContinentalReinsurance’sresults for the nine months ended September30,2018showthatitsgrosswritten premium grew by 21.34 percent to N27 billion compared with N21.86 billion posted in the corresponding period of 2017. Profit before tax rose slightly by 1.57 percent to N2.9 billion in the review period, while profit after tax increased by 0.15 percent to N2.12 billion in the first nine months of 2018 from N2.11 billion in the same period in 2017.

L-R Kolawole Ogunwumi, assistant marketing manager; Olafisayo Fapohunda, marketing executive, and Olayiwola Daniel, sale executive, all of Redinton Nigeria, during the unveiling of iPhone XR in Lagos. Pic by Pius Okeosisi

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Thursday 27 December 2018

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Events that shaped banking sector in 2018 Stories by Hope Moses-Ashike

he year 2018 will come to an end on Monday next week with a lot of events recorded in the course of the year. The key driver of the events of 2018 was the acquisition of Diamond Bank plc by Access Bank pl, which happened most recently. It was an event that analysts, experts and other stakeholders in the banking sector described as a positive development that would ensure more stability in the sector. Prior to this, the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) in September revoked the operating licence of Skye Bank plc and set up a bridge bank called Polaris Bank. During that period, Godwin Emefiele, CBN governor and Umaru Ibrahim, managing director/CEO, NDIC said the bridge was done by the Asset Management Corporation of Nigeria (AMCON) through the capitalisation of N786 billion to return the bank to soundness and profitability. Also, during the course of the year, the CBN revoked the operating licenses of 154 microfinance banks, six Primary Mortgage Banks (PMBs) and 22 Finance companies.

The number of financial institutions in liquidation increased as a total of 187 microfinance banks (MFB) and 42 primary mortgage banks were liquidated by the NDIC. The CBN increased the capital requirements of various categories of microfinance banks in the country such that National MFBs capital requirement rose to N5 billion from N2 billion, State MFBs to N1 billion from N100 million and Unit MFBs to N200 million from N20 million. The sub-sector had been contending with such challenges as inadequate capital base, weak corporate governance, ineffective risk management practices, dearth of prerequisite capacity and mission drift. The CBN said institutions that meet the capital require-

ments as well as demonstrate the existence of strong corporate governance in their operations would be allowed to open accounts at the CBN office within their state of operation. Such institutions, the CBN said, would also be channels for micro funding activities of the CBN and the Development Bank of Nigeria (DBN). Most recently, the CBN and the Bankers Committee announced a plan to set up a National Microfinance Bank across the 774 local government areas leveraging NIPOST. Godwin Emefiele, governor of CBN said that the National MFB would operate with N5 billion capital base funded through the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS).

But this was not welcomed by the existing microfinance bank operators in the country as they cried out against the plan, saying the development would affect the industry negatively. Early in the year, the CBN amended the rules on internal capital generation and dividend payout ratio. The new rule stated that DMBs and Discount Houses (DHs), (now merchant banks) that have capital adequacy ratios of at least 3% above the minimum requirement, Composite Risk Rating (CRR) of “Low” and Non-Performing Loan (NPL) ratio of more than 5% but less than 10 percent, shall have dividend pay-out ratio of not more than 75 percent of profit after tax. Among other events, at the foreign exchange market, the CBN continued its intervention in the market. With improved availability of foreign exchange, the exchange rate at the Investors and Exporters (I&E) forex window remained stable over the past 12 months and the parallel market exchange rate premium narrowed significantly. At the BDC segment, there was a significant appreciation of the Naira from over NGN525/US$ in February 2017 to about NGN361/ US$ currently. Rates at the I&E window also appreciated from nearly NGN382/ US$ in May 2017 to just over NGN360/US$.

Fidelity Bank offers N19m reward gifts to customers at Christmas

idelity Bank plc last week presented a total of N19 million and consolation prizes to its loyal customers who emerged winners in the second monthly draw of the ongoing Get Alert in Millions Savings (GAIM) season three promo. Among those who received SMS alert for cash gifts were Kamsiyochukwu Okoli, Abuja, who won N2 million; Elisabeth David from Kaduna branch, N3 million and Collins Oragwam of Akoka branch Lagos, received N2 million. Speaking at the official presentation of the cash and consolation prize gifts in Lagos, Chijioke Ugochukwu, executive director, shared services and products, said the winners emerged from a process conducted by the bank’s control team, and witnessed by the officials of the Consumer Protection Council (CPC) and other stakeholders. The promo, she said was in line with the financial inclusion policy of the Central Bank of Nigeria (CBN), adding that the bank had given a total of N34 million to over 62 customers under the GAIM season three initiative. However, N76 million is still outstanding for grabs by lucky customers in the course of the promo. Ugochukwu said N110 million will be given to customers at the end of the GAIM 3 promo expected to last for six months. The bank

also rewarded 1,400 customers with airtime worth N1.8 million. The objective of the promo is to enhance savings culture and improve the standard of living of the bank’s customers. The savings promo allowed the bank to go into the `nooks and crannies’ of the country to enlighten people on financial inclusion. Richard Madiebo, divisional head, retail banking, said “the GAIM promo first and foremost is our way of saying thank you to our savings customer”. Responding to journalist on the impact of the promo, he said the impact has been very good. “We have had customers that have been rewarded with both cash and other gift items and in turn what that has done is to cement our relationship with them as well as also bring prospects into the savings aspect in all respect both in terms of giving the customer some kind of reward and satisfaction and also bringing more people into the savings world”.

the facility continues to work optimally by using it and ensuring that the objective of setting it up which is to enhance human lives and living, is met. Responding, Aminu Adebimpe, chairman, Community Development Committee (CDC), ifelodun, described the project as amazing because it was not done with tax payers’ money but rather hard earned money from group of humanitarians.

“I say a very big thank you for this good gesture and I promise you that these facilities will be judiciously used and maintained by my people”, Adebimpe said. Adebimpe told Access Bank that there are also many communities that are still very much in need of the same kind of facility and that they are ready to give out land regardless of the size and shape of the project.

Access Bank provides facilities for personal hygiene in Ajegunle

eyond rendering banking services to its customers, Access Bank plc is also interested in the total wellbeing of its customers and is committed to impacting people’s lives. Consequently, the bank on Friday, commissioned a project that provided over 5,000 men, women, and children of Dustbin Estate in Ajegunle with facilities to enable

them take care of their personal hygiene. Such facilities included modern toilets and bathrooms, a water treatment plant, borehole, generating set, and food. “We are actually providing an opportunity for residents of this area - over 5,000 of them – to take control of their health and improve their chances and live a quality life devoid of illness and debilitat-

ing diseases”, Titi Osuntoki, executive director, business banking, said. Speaking at official commissioning of the project at Surulere community area in Ajegunle, she said, “Water tops the list of essentials for man’s survival and we are very hopeful that with the borehole and water treatment plant, we are commissioning today, there would be to a very large extent, pipe borne water that

is safe for consumption and healthy for us all. “As a people-centric organisation, this is one of the many commissioning Access Bank has done in recent times and buttresses our understanding that as a business entity, we conduct our business in a sustainable manner ensuring growth and development of the communities we serve”. Osuntoki called on all stakeholders to ensure that

Thursday 27 December 2018

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Helping you to build wealth & make wise decisions NSE All Share Index

Market capitalisation

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,564.13

1,713.69

1,087.32

Week open (14 – 12–18)

38,243.19 30,672.79

N13.609 trillion

N11.204 trillion

2,147.20

1,401.64

793.81

Week close (21 – 12–18)

30,773.64

N11.241 trillion

2,162.11

1,402.01

793.81

Year Open

Percentage change (WoW) Percentage change (YTD)

0.33 -19.53

0.69 -15.68

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

330.69

2,560.39

1,975.59

1,379.74

719.05

279.12

2,164.26

1,228.55

1,160.22

725.65

285.42

2,208.75

1,242.60

1,171.74

NSE Banking Index

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

1,746.68

475.44

139.37

1,382.81 1,385.04

402.76

122.74

393.91

127.01

NSE 30 Index

0.03

0.00

0.16

-18.19

-26.99

-20.70

-2.20 -17.15

976.10

3.48

0.92

-8.87

-25.66

2.26 -13.69

2.06 -13.73

1.14 -37.10

0.99 -15.08

Forte Oil shares rally as Otedola offers to divest 75% stake in downstream business …favours Prudent Energy in deal set for completion by Q1’19 HEANYI NWACHUKWU

emi Otedola, majority shareholder in Forte Oil Plc has reached an agreement with Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his 75 percent direct and indirect shareholding in the company’s downstream business. Forte Oil Plc has notified both the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), and the investing public, saying that Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximize business opportunities in refining and petrochemicals. The transaction is expected to close in the first-quarter (Q1) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals. Forte Oil stock price increased to N28.45, gaining N2.5 or 9.63percent on Monday December 24, 2018 when the investing public was notified of the deal. For te Oil stock had reached a 52-week high of N57.22 against 52-week low of N16.70. In the financial year ended D e c e m b e r 3 1 , 2 0 1 7 , Fo r t e

L-R: Tereigh Banks Ozakpo, BillsnPay, business and product development manager, CWG Plc;.Nicholson Aleke, product manager mobility services, CWG Plc; Linda Morakinyo, head mobile banking, UBA Plc; Ireti Yusuf, vice president, service delivery, CWG Plc, and Kingsley Makinde, USSD officer, UBA Plc, during UBA Plc team’s visit to CWG Plc to discuss strategic initiatives to optimize the performance of UMobile App (UBA Mobile Banking App) app to deliver superior customer experience across UBA Africa and beyond where CWG Plc took time to showcase the infrastructure and sit- in developers available for optimal service delivery.

Oil downstream business recorded a turnover of N 7 4 b i l l i o n re p re s e nt i ng 3 8 percent decrease compared to N120.1billion recorded in 2016. Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP

served as financial and legal advisors respectively to Otedola, while PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as Joint Financial Advisors and Sefton Fross served as legal advisors to Investments and Commodities

Limited. Forte Oil Plc, listed on Petroleum and Petroleum Product subsector of the NSE Oil & Gas sector has 1,302,481,103 outstanding shares and market capitalization in excess of N37.055billion.

A cursory look at Directors interests in Forte Oil Plc shares as at December 31, 2017 shows that Femi Otedola directly holds 186,260,357 units in Forte Oil Plc while indirectly he holds 838,472,441 units. At N28.45 per share as at Monday December 24, 2018, his stake in Forte Oil Plc is valued at N28.95billion. In the financial year ended December 31, 2017 Forte Oil Plc reported 13 percent decline in revenue to N129.4billion a s aga i n s t N 1 4 8 . 6 b i l l i o n i n 2016 financial year. The year in review was very challenging for Forte Oil Downstream Business with reduced product supply o w i n g t o f o re i g n e x c h a n g e scarcity and volatility, Akin Akinfemiwa, CEO, Forte Oil Plc had told shareholders. He had linked “the lack of adjustment to the PPPRA template to reflect t h e re a l i t i e s i n t h e f o re i g n exchange rate and rising crude oil prices which crossed the thresholds used to set the N145/ litre price.” “ T h e d ow n s t re a m s e c t o r is a high volume, low margin environment and the problem of poor supply has an immediate impact on the short-to-midterm profitability and expansion. The outstanding subsidy payments persist and remain a source of funding pressure for downstream companies in general,” the CEO noted.

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FSDH Research Weekly Insight

Mutual Funds can create wealth, fund critical infrastructure

S D H R e s e a rc h’s analysis shows that mutual fund investment can create wealth for investors and that funds pooled together can be used to finance critical infrastructure and expand business operations. Investors in mutual funds do not necessarily need to have expert knowledge about investment management to enable them to create wealth, as there are investment management exper ts whos e pr imar y role is to grow the value of investments under their management. Money that is pooled together through mutual funds can be channelled to address critical infrastructure either directly or indirectly. This would promote the competitiveness of the economy, enabling businesses to expand operations and employ more people, and would assist government at all levels in generating more tax revenue. FSDH Research warns, h o w e v e r, t h a t m u t u a l funds need more support than is currently available to enable potential investors to fulfill their wealth creation and d e v e l o p m e nt a l ro l e s A mutual fund is a pool of funds brought together by a p ro f e s s i o na l f u n d manager from several investors to invest in selected underlying securities. The underlying securities can be one or a combination of the following: stocks, fixed income secur ities, real estate, and commodities. A mutual fund portfolio is structured and maintained to match different investment objectives. The type of mutual fund an individual invests in depends on their financial objectives and appetite for risk. Most mutual funds are open-ended investment schemes. This means t hat t h e f u n d ma nag e r can create additional units for new investors on demand. The fund manager is also able to provide active liquidity by redeeming units from existing investors w h o w a nt t o s e l l u n i t s f o r c a s h. T h ro u g h t h i s pool of funds, an investor

creates wealth over a long period of time by making the money work for him through regular saving and investment. In addition to liquidity, mutual funds offer a range of benefits to investors including portfolio diversification and lower transaction costs. The existence of a Tr uste e and Custodian to a mutual fund ensures the safety of investments, as the Tr uste e ensures that the fund is managed in line with approved invest ment guid el ines, and the Custodian h o l d s t h e f u n d a s s e t s.

the required longterm funds to finance critical infrastructure and business expansion t h ro u g h t h e g ro w t h o f mutual funds. With appropriate structures in place, mutual funds can also be used to revive the real estate sector, which is currently in depression. As fund managers mobilise funds and invest in Bond Funds, Real Estate Funds and Equity Funds, they are providing long-term capital for developmental purposes. They also provide short-term working capital through

Mutual fund investments are affordable for lowincome investors, as s ome funds re quire an initial investment of only N5,000. The mutual fund assets i n Ni g e r i a h av e g ro w n significantly in the last five years. This is an indication of the growing interest in this class of investment. Data from the Securities and Exchange Commission (SEC) on t h e N e t A s s e t Va l u e (NAV ) of all re gistere d mutual funds in Nigeria shows that the collective NAV grew by 349percent b e t w e e n 0 1 Nov e m b e r 2013 and 02 November 2018. This translates to a Compound Annual Growth Rate (CAGR) of 35percebt betw e en the periods. Despite the impressive growth rate, FSDH Research notes that there is significant room for growth in mutual fund assets as we estimate the ratio of mutual f u n d s t o t h e c o u n t r y ’s Gross Domestic Product (GDP) at 0.51percent. Governments and c o r p o rat e s may a c c e s s

investment in Money Market Funds. The growth in investable funds has positive multiplier effects on the economy. However, FSDH Research’s findings show that Government, regulators and the operators in investment management need to give the mutual fund additional support. Government could offer tax incentives to investors who are committed to a regular investment plan in mutual funds. It should also create an enabling environment that will lead to job creation in the country in order to increase savings and investable funds. Regulators could promote innovative legislation to increas e investment in mutual funds and expand investment channels to increase returns on the funds invested. T h e Fu n d Ma n a g e r s A s s o c i a t i o n o f Ni g e r i a (FMAN) should continue to create public awareness on the benefits of mutual funds in order to generate interest from the investing public.

Investor’s Square •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

NSE says SEC-approved sustainability disclosure guidelines mandatory for Premium Board listed companies …reporting becomes effective Jan. 1 IHEANYI NWACHUKWU

n fulfillment of its desire to champion sustainable capital market practices in Africa, the Nigerian Stock Exchange (NSE) said its Sustainability Disclosure Guidelines has been approved by the Securities E x c ha n g e C o m m i s s i o n (SEC). The Guidelines available on the NSE website will also be distributed to Issuers who are listed on all the Boards of the Exchange. Its reporting becomes effective on Januar y 1, 2019. The Sustainability D i s c l o s u re G u i d e l i n e s will be mandatory for companies listed on the P re m i u m B o a rd o f t h e Exchange, according to the Nigerian Stock Exchange. The Nigerian Stock Exchange said it recognises t h a t t h e p ro m o t i o n o f E n v i ro n m e n t a l , S o c i a l and G overnance (E S G) principles can facilitate

regulators in leading sustainability policies and regulations. The Guidelines primarily provide the value proposition for sustainability in the Nigerian context. It also articulates a step by step approach to integrating sustainability into organisations, indicators that should be considered when providing annual disclosure to The Exchange, and timelines for such disclosures. Whilst developing the Guidelines, the Exchange noted that Issuers may be at varying levels of understanding sustainability disclosure requirements and capacity to comply with t h e re q u i re m e n t s. T h e Exchange encourages all Issuers to adopt the practice of sustainability reporting. Whilst describing the objectives of the Sustainability Disclosure Guidelines, Oscar N. Onyema, Chief Executive Officer of NSE explained

Oscar N. Onyema, CEO, NSE

more meaningful engagement between investors and listed companies on ESG risks and opportunities. This, in turn, is expected to further deepen the role played by market operators and

that, “We are supporting the global agenda of g re e n a n d s u s t a i n a b l e finance, which is so critical for Africa. As the first E xchange to list a sovereign green bond in Afr ica, our issuance of

these Guidelines is to further enable investors ascertain their exposure to ESG risks whilst providing our Issuers a platform to disclose them along common themes f o r c o m p a r a b i l i t y . We encourage peer exchanges on the continent to continue to enhance information disclosure in their markets as this will help build trust”. Olumide Orojimi, Head, Corporate Communications at The NSE is of the view that : “with continued global par ticipation in our market, a shared framework of ESG principles with multistakeholder approach and metrics is imperative. The Guidelines set out recommendations for good practice in thirteen thematic areas under four core pr inciples in E S G reporting. With the launch of these Guidelines, investors can look forward to a consistent approach t o E S G re p o r t i n g f ro m Issuers listed on The NSE”. As a member of the United Nations Sustainable Stock Exchanges (SSE) initiative, and the World Federation of Exchanges (WFE), NSE is committed to providing its listed companies with guidance on sustainability reporting, and has taken steps to demonstrate its commitment through a number of preimplementation activities. The first major step wa s t h e h o st i ng o f t h e inaugural Nigerian Capital Market Sustainability Conference (NCMSC) in November, 2015, which served as a stakeholder engagement s ession to discuss the business value of sustainable investment, enhancing corporate transparency and ultimately performance on Environmental, Social and G overnance (E S G) issues.

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Merger: Access, Diamond set Jan. 2019 timeline for SEC clearance

SEC Nigeria says not prosecuting multiple accounts holders

IHEANYI NWACHUKWU

igerian investors who have multiple accounts in the capital market have been asked not to entertain any form of fears of prosecution. Rather they are urged to take necessary steps to regularise these accounts in order to reap the benefits of their investments in the capital market. Mary Uduk, acting Director General, Securities and Exchange Commission gave this assurance during an interview held in Abuja last weekend. Uduk said such investors should not entertain any fears of prosecution as the Commission is only interested in ensuring investors have the benefits of their investments. According to her “They are not going to be prosecuted, we just want them to come forward and take back their shares and register them properly with CSCS so that the trading float in the market will increase “The forbearance window for shareholders with multiple subscriptions has been extended by another year from the December 31, 2018 deadline previously communicated. Consequently, we enjoin those who have not come forward for the regularization of shares purchased with multiple identities, to do so. Uduk also enjoined investors to take advantage of the on-going e-dividend registration in a bid to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy. According to the acting DG, “The essence of the E-Dividend Mandate Management System is

ccess Bank Plc and Diamond Bank Plc have jointly released the proposed timetable for their merger saying they are hopeful to get the Securities and Exchange Commission (SEC) clearance for the Scheme of Merger by January 2019 . This optimism comes on the heels of “No Objection” they already received from the Central Bank of Nigeria (CBN) regarding the potential merger between the two banks, which is expected to complete in the first half (H1) of 2019. Transaction completion is subject to Access Bank and Diamond Bank obtaining shareholder and regulatory approvals (Central Bank of Nigeria, the Securities and Exchange Commission, the Federal High Court (FHC) and the National Pension Commission (PenCom). By March 2019, Access Bank and Diamond Bank will hold court-ordered meetings on the merger. Both banks are optimistic that in April/May 2019, the SEC and Central Bank of Nigeria (CBN) will give their final approvals to the deal which will be completed by end of June 2019. Citigroup Global Markets Limited and Chapel Hill Denham Advisory Limited acted as Financial Advisers to Access Bank Plc while Banwo & Ighodalo acted as Legal Adviser to Access Bank. Also, Exotix Capital acted as financial adviser to Diamond Bank while Templars acted as Legal Adviser to Diamond Bank. Following the signing of the Memorandum of Agreement and announcement of headline terms, which valued Diamond Bank at approximately N72.5 billion ($200million) and will see Diamond Bank shareholders receiveN3.13pershareincashand shares, Access Bank and Diamond Bank announced further details, includingtherationaleandbenefits of the deal, the estimated cost synergies,thecapitalmanagement plan and the timetable. The merger will form a leading Tier 1 Nigerian bank and the largest bank in Africa by

IHEANYI NWACHUKWU

number of customers, spanning three continents, 12 countries and 29 million clients. It will bring together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments. The merger’s cost synergies conservatively estimated at N30 billion per annum, pre-tax is to be fully realised within three years post-completion. The pro-forma capital position of the merged bank will be in full compliance with regulatory requirements for significant financial institutions with an international banking presence. However, in order to meet international standards of best practice and ensure a robust capital buffer, Access Bank and Diamond Bank have jointly agreed a strategic capital management plan and expect to achieve a post-completion Capital Adequacy Ratio (CAR) of 20percent at the Bank level and 22percent at the Group level. He r b e r t Wi g w e, C E O of Access Bank, said: “I am delighted to announce that we have received the necessary regulatory approvals to pursue a merger with Diamond Bank, one of Nigeria’s foremost digital

and retail banks, subject to final regulatory and shareholder approvals. The combination of our two businesses will create the largest retail bank in Africa by customer base and a very significant player in the Nigerian market. This is a huge step towards the delivery of our goal to bring the power of banking to millions of people across Nigeria and an exciting transaction for Access Bank and Diamond Bank’s customers, staff and shareholders. “We have a clear plan to maintain our capital strength and are announcing today decisive steps by both banks to ensure their financial stability throughout the process. The overall outcome will be a stable institution with an extremely strong capital adequacy ratio of more than 20percent following completion of the merger, which will be a leading competitor in all the markets in which it operates. “Access Bank and Diamond Bank have complementary operating platforms and similar values, and a merger with Diamond Bank, with its leadership in digital and mobileled retail banking, will accelerate our ambition to become a leading corporate and retail bank in Nigeria and a Pan-African financial services champion. We look forward to bringing

our discussions to a successful conclusion and delivering the benefits of the merger to our staff, customers, shareholders and other stakeholders.” Uzoma Dozie, CEO of Diamond Bank, said: “The merger is positive for all of Diamond Bank stakeholders, including customers, employees and shareholders. In particular, customers will benefit significantly through the unrivalled combination of the best of Diamond Bank’s retail and digital leadership with the size of Access Bank’s balance sheet, corporate names and geographical reach. “In reaching this decision, t h e s h a re d p a s s i o n f o r leveraging Nigeria’s youthful and entrepreneurial talent, and a commitment to better outcomes through financial inclusion have convinced us that this is the right combination. “I believe that the combination of two strong and admired brands, with shared values and complementary strengths, will be a strong force for positive change in the Nigerian and African retail landscape. As a result, this merger creates significant potential for sustainable longterm growth which stands to benefit customers, employees and shareholders alike.”

to eradicate or reduce to the barest minimum the incidence of unclaimed dividend. Unclaimed dividend is an undesirable feature of the Nigerian capital market which denies investors/shareholders the gains of participating in the capital market. It denies the economy access to the huge amount of money which should have accrued to shareholders and would have gone into circulation to oil the wheel of the economy. “It is a consequence of the bottlenecks which are inherent in the erstwhile paper dividend warrant regime such as postal system inefficiency, change in investors’ addresses, poor fidelity and human fallibility in dividend payment processes, amongst others. She stated that the E– Dividend regime bypasses these limitations by ensuring that dividends which do not exceed 12 years of issue are credited directly to an investors account after declaration by the paying company and within a stipulated payment period through simple interbank transfer. The E-Dividend registration exercise started on November 23, 2016. Each successful registration cost N150, however, between that time and March 31, 2018, the Commission underwrote the registration cost for all investors that mandated. It is my pleasure to let us know, that a total of 2.4million accounts had been mandated. “May I therefore implore you all to key into the E-Dividend registration exercise by visiting the nearest bank branch or registrar. In addition to migrating to the E–Dividend regime yourselves, kindly tell everybody you know to do same in their best interest”, Uduk.

NSE extends trading agreement on technology with Nasdaq IHEANYI NWACHUKWU

asdaq and the Nigerian Stock Exchange (NSE) have said that NSE, which services the largest economy in Africa, will continue leveraging Nasdaq’s matching engine technology for its equities and fixed

income markets for an additional five years. Further, NSE will also continue utilising Nasdaq’s SMARTS Market Surveillance technology to monitor its market for manipulation, including spoofing and layering. NSE has been a Nasdaq client since 1997. Nasdaq’s worldleading market technology powers

more than 250 of the world’s market infrastructure organisations and market participants, including brokerdealers, exchanges, clearinghouses, central securities depositories and regulators, in over 50 countries with endto-end, mission-critical technology solutions. “We are delighted to extend our matching engine technology

contract with Nasdaq”, said Oscar Onyema, Chief Executive Officer, NSE. “Adopting best in class technology is vital for running our modern and competitive market as well as allowing us to stay agile in the face of an evolving ecosystem. The Exchange intends to remain at the forefront of innovation and will actively seek ways to leverage

new technologies to drive the growth and development of our market”, Onyema added. “Over the course of our relationship, NSE has made—and continues to make— significant strides in innovation and revolutionizing Africa’s capital markets,” said Paul McKeown, Senior Vice President, Market Technology, Nasdaq.

“By continuing to utilize the Nasdaq Matching Engine, NSE is operating on the most widely-used matching engine in the world that combines extraordinary performance with extensive functionality to meet current and future business and performance requirements. We look forward to supporting NSE in the years ahead,” McKeown said.

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Respite for kerosene consumers as prices drops marginally sTories by BUNMI BAILEY

here is a sign of relief for Household Kerosene consumers as its average price per litre declined after a three months consecutive price increase from July till October 2018, a BusinessDay analysis shows. BusinessDay analysis of the National Bureau of Statics (NBS) Household Kerosene data shows that from July, it rose to N276.9, N288.8 in August, N297.2 in September, and N315.6 in October till it declined to N298.3 in November 2018. Johnson Chukwu, CEO, Cowry Asset Management Limited said, “There is a gradual shift from kerosene consumption to other alternative sources of cooking fuel . When kerosene gets very expensive or unaffordable, household consumers like the rural, semi and urban

household shift back to household firewood. Then you will begin to see that d e ma n d ha s w e a ke n e d which affected the price decline.” Chukwu further said that the demand for kerosene is the strongest during the raining season because fire woods are wet and that in the dry season; it is easy to access it in the rural areas.

Also in terms of average price per gallon, it followed the same tread as the average price in litres. Kerosene is an important household fuel since the mid-19th century. In developed countries its use has greatly declined because of electrification. However, in developing countries, kerosene use for cooking and lighting remains widespread.

BIC Country Business development manager, Adeyemi Ojo; sales & marketing director, BIC West Africa, Groues Guillaume; product manager, Shavers and Lighters, BIC West Africa, Bigue Diouf and DGM Commercial NIPEN, Adedamola Adelabu during grand finale draws for the BIC Shaver “Shave and Win” Promo held in Lagos recently

Zedvance reaffirms commitment to customer-centric financial solutions

nnovative consumer finance company, Zedvance Limited has reaffirmed its commitment to provide customer-centric financial solutions as the company continues to deploy its omni-platform approach to service new and existing customers. Speaking with journalists at a cinema viewing event with its customers in celebration of the yuletide, Adedayo Amzat, managing director of Zedvance Limited, said the company will continue to contribute its quota to the socio-economic growth of the country by making access to loans faster and seamless for Nigerians.

“As a company, we pay a lot of attention to our customers’ needs and aspirations. This has led us to growing our investment in multichannel service delivery and pushing towards more personalized platforms. In the last few months, we have improved our customer experience across mobile, web, email, Whatsapp, web chat and social media channels as well as optimised our classic channels like our retail offices and call center to better serve our customers”, he said. Amzat stated that as a datadriven company, Zedvance will continue to identify new ways of deepening its customer experience while offering

unique products and services that improves customers’ lifestyle. Some of the customers in attendance at the event commended the company for its recently launched Whatsapp channel which allows them to make inquiries or conclude loan applications in a matter of minutes by simply chatting with Zee. Many described it as “an easy way of interacting with the company anywhere and anytime.” The cinema viewing event, which held at Genesis Cinema, Maryland Mall, Lagos on Friday, December 21, 2018, had in attendance over 80 customers as well as key stakeholders.

Bic brand rewards customers at 2nd edition of ‘Shave and win’ promo

ic, a global leader in stationery, lighters and shavers last week rewarded its loyal customers by holding the grand finale of, ‘shave and win’ promo in Lagos where cash prize of 1million naira was given to its 1st runner up, 250,000 to the 2nd runner up and other amazing consolation prizes such as, flat screen TVs, generators, washing machines and many other gifts to 30 other people. Speaking during the event, Bigue Diouf, product manager Bic West Africa said that that the promo was basically put in place to reward its consistent loyal consumers. “The ‘save and win’ promo has been on-going for three months and today being the final draw, our aim is to reward our diligent consistent consumers and customers who have relentlessly patronized us by giving out cash prices and other amazing consolation prizes.” Diouf noted that Bic brand

is majorly after the interest of the consumers and the satisfaction they derive in using the product, which has given the brand an edge over others. “Our ambition is to offer quality and accessible product at a value added price. We are sensitive to the needs of our customers. We guarantee prices with as much quality. Our products are accessible, of high quality and at an affordable price in comparison to some of our competitors that make products at very cheap prices but with very low quality and standard.” She added that Bic is a leading disposable shaver in West Africa and they intend to maintain their standard. “We intend to keep up with our high standard in terms of our reliable accessible product. We also intend to use this avenue to make non users try these products and in the long run, increase our markets. “Bic is saying a big thank you to its customers. It wouldn’t have been possible

without them. It’s a great opportunity and activity. Thank you for your loyalty.” She also beckoned on customers not be hesitant in interacting and sharing their views on social media platforms. “Please, don’t hesitate to interact with us, through our different platforms of social media for questions and comments. It’s exciting to have such engagement” She said. Also speaking on the occasion, Groues Guillaume, sales & marketing director, BIC West Africa, said that providing a platform for winnings in terms of cash prizes and consolation prices increases customer’s loyalty. “It’s been an exciting one for us. This is a way to reward loyal consumers over a period of time. Giving them an opportunity to win something increases their loyalty. Next year much more exciting things are going to be coming up. consumers should be expectant, come next year,” Guillaume said.

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Global retail update

etail developments around the globe are inspiring, as Swedish fashion tries out a new style, and Carrefour enhances its presence in the Middle East. Also, in a much anticipated move, Ikea confirms it will finally be setting up shop in New Zealand. Meanwhile, British Budweiser is getting some time in the sun. Nestlé promises The Swiss food giant is supportive of the German government’s plans to cut sugar, with a commitment to reduce the sweetener in its products by another 5% by 2020. In Mexico, the foodie is investing USD 154 million in a new coffee processing plant. Big tech ethics in EuropeThe security of Amazon’s data is once again being questioned. A German customer recently received over 1000 voice recordings from another user because of ‘human error’ by the global giant. Google is being pro-active and has launched a ‘responsible innovation team’ to review the ethics of its artificial intelligence. Going green Consumer goods giant Unilever is set to buy The Vegetarian Butcher, a Dutch producer of meat substitutes such as vegetarian hamburgers and imitation meatballs. Meanwhile, the European Union have agreed to a ban on plastic straws, cutlery

and cups that is likely come into effect by 2021. Magic boxes Dutch grocer Albert Heijn is the latest supermarket to combat food waste, partnering with Too Good To Go, an app that allows the company to offer boxes of left-over fresh food at a reduced rate. Branching out in United States Tobacco major Altria has signalled a shift away from its roots with the investment of USD 12.8 billion in e-cigarette start-up Juul. Meanwhile, Juul employees have received a memo banning vaping and Juul products in the office, to comply with a 2016 state law. Beating expectations Nike is celebrating better-than-predicted quarterly results with footwear and apparel enjoying double digit growth globally. The athletic-wear company’s shares jumped a massive 7% following the news. Partnership and profit Walgreen Boots Alliance is teaming up with tech company Verily to improve health outcomes and reduce care costs. The drug store chain has also reported a rise of 36.8% in quarterly profits, which saw its net income jump to USD 1.12 billion. Label laws Consumers in the United States will see mandatory labels on food products that contain genetically modified ingredients as

soon as 2020. Companies can choose whether to display a symbol, text or a digital link on the packaging. Immersive shopping Alibaba’s Tmall is targeting luxury consumers with the launch of a new maison-style store format on its updated app. High end brands Valentino, Burberry and Bottega Veneta have all opted in to connect with younger shoppers. Valuable allies In its latest round of funding, Indian food delivery service Swiggy has received backing from South African media group Naspers and Chinese tech major Tencent as it nears USD 1 billion in support. Meanwhile, check out which delicacies dominated Swiggy’s orders. Future fashion Swedish fashion house H&M is rolling out a new line of clothing, this time a specifically unisex series. The selection is being produced alongside fellow Swedish clothing label Eytys, and will be available in both online and physical stores from January next year. Eastern expansion Majid al Futtaim, the Middle Eastern partner of French multinational Carrefour, has joined hands with online shopping service Basket.jo. This will expand Carrefour’s online presence across Jordan, and will create a wider range of shopping options for customers.

Digital footprint In a first for the nation, Portuguese food retailer Continente has implemented e-receipts for customers after a trial period. Britain is on the verge of becoming a cashless society, raising fears over the transition to digitalonly payment. Executive moves British clothing line Superdry has seen a massive share drop after second profit warning, prompting co-founder Julian Dunkerton to say his return is needed. Meanwhile, former Lidl CEO Karl-Heinz Holland, and Sergio Antonio Ferreira Dias have left the board of Spanish retailer DIA. Ikea at last In a long awaited move, Swedish flat-pack retailer Ikea will be opening its first ever store in New Zealand. The expansion will

be conducted by the chain’s main holdings arm, Ingka Group. The store is planned for Auckland, with large sections of land being considered. Traffic solutions Chinese online giant Tencent is making parking a smoother experience with its payment app WeChat, rolling out automated payment to carparks. Meanwhile, Japanese retailer Aeon has partnered with Indonesian ride-hailing startup Go-Jek, as ride services help deliveries in South East Asia. Entertainment struggles The branch of UK retailer HMV operating in Hong Kong is set to be liquidated. All stores have been closed, and the business is estimated to have accrued USD 40 million in debt. The chain’s chairman has noted that the market for

CD and DVD sales has largely died in the face of streaming services. Beer moves In a USD 100 million move, brewing giant AB InBev is partnering up with Canadian cannabis manufacturer Tilray Inc, to get a head-start on drinks. The two businesses are investing into the potential for cannabinoid, non-alcoholic beverages. Online service Supermarket giant Walmart could be looking at a whole new level of direct service. The CEO of the chain’s online business has outlined ideas of a system that would involve Walmart employees unloading fresh produce straight into customer’s fridges. Sunny brewing The iconic Budweiser brand of beer will be brewed via solar power in Britain starting in 2020. International brewing company AB InBev and European solar power leader Lightsource BP have signed a 15 year deal that will see all British Budweiser use sun energy. Supermarket support German discounter Aldi is bringing some extra cheer-and trees--to teen cancer aid. The supermarket has donated a range of decorations, including Christmas trees, to help create a festive time for people having to stay inpatient over the holiday season.

Living under poverty line How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 8155184838 chinwe.agbeze@businessdayonline.com

BusinessDay reader support kidney patient with N100,000

oseph Nnagbogu, a kidney patient in Lagos, has received N100,000 donation from a BusinessDay reader to pay for his dialysis. The father of four was featured in this section of Thursday, November 15, 2018, where he pleaded with kind-hearted Nigerians to assist him fund his dialysis and surgery. 43-year-old Nnagbogu used to deal in hospital equipment and had boys who worked for him until 2016 when he closed shops due to renal failure. “At a point, I could not go out again. When I ran out of cash, I sold one shop and used the proceeds to fund my dialysis. In the end, I had to sell my three shops,”

Nnagbogu told BusinessDay earlier. “Lagos State University Teaching Hospital, LASUTH billed me N8m for only the transplant in 2016 but I couldn’t raise the money. Since then, I have been on dialysis. I spend N150,000 a week for three sessions of dialysis. Joseph Nnagbogu received N100,000 from an anonymous BusinessDay reader to pay for his dialysis. When BusinessDay visited the home of the Nnagbogus to present the cheque, the entire family could not hide their excitement. The children, who sat on the floor staring gloomily at their father, were all smiles

L-R: Joseph Nnagbogu, kidney and Chinyere Nnagbogu, his wife; during a cheque presentation at Ajuwon, Iju ishaga in Lagos recently.

Analyst: Chinwe Agbeze, Graphics: Fifen Eyemisanre Famous

when they saw the cheque exchange hands. The elated wife, Chinyere Nnagbogu, who received the cheque, thanked the tender-hearted donor for his assistance. “May God bless and replenish the pocket of the person that gave my hu sb a n d t h i s m o n e y ,” Chinyere said. “We will never cease to pray for this angel God used to bless us today.”Continuing, she said: “He has not gone for dialysis for more than a week now because of lack of funds. I will take him to the hospital tomorrow.” Nnagbogu, who battled to talk amidst coughs, prayed for the anonymous donor. “I don’t know who you

are, but God who knows you too well will bless you for your generosity,” he said in an emotional laden voice. “You and your family will know no pain or sorrow and God will grant you all your heart desires.” The wife also appealed to Nigerians to assist them raise the money for her husband’s surgery. “Please, we need your help because we cannot do this alone. Our family and friends have deserted us, but we cannot blame them because they have assisted us thus far,” said Chinyere. “I beg you in the name of the Almighty God to help my husband get back on his feet so he can assist me take care of the children,” she pleaded.

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Thursday 27 December 2018

Nigerian startups dominate 12 finalists for TechPoint Africa Build 2019 pitch FRANK ELEANYA

echPoint Africa the organizer of TechPoint Africa Build 2019 has announced its 12 finalists for Pitch Storm with startups from Nigeria taking the 8 spots on the list covering much of West Africa. The online technology news platform made the announcement on The Nigerian startups on Monday 17 December, 2018. The 12 startups will be pitching for the equity-free prize of $10,000 at the Pitch Storm stage in 2019. A statement from TechPoint Africa stated that the 12 startups were carefully selected from a pool of entries. The successful startups were judged based on visible traction, well identified customer base and solid revenue. “As part of their preparations towards Pitch Storm at TechPoint Build 2019, the startups below will be bracing up for a bootcamp,”

the organizer noted, “They will be receiving intensive coaching from the Pitch Storm facilitators, refining their pitches, business models, and honing their presentation skills.” The eight Nigerian startups include: Power stove (Nigeria): a social enterprise that

innovates smart energy products and services that improve lives on a global scale. They’ve developed a product line of smart clean cooking technologies that is smokeless, said to cook food 5x faster — while reducing fuel use by 70% — and eliminating toxic emissions. Wellnewme (Nigeria):

is working to prevent the risk factors that are responsible for majorly cardiovascular diseases and stroke (which presumably are the leading causes of deaths) amongst adults in Nigeria. They are able to assess the health risks of individuals using an algorithm approach that spans physical, psychosocial and environmental domains and provide advice on all the key drivers of well-being, health and productivity. Estate Intel Limited (Nigeria): is trying to build the Bloomberg Terminal for African real estate, because of the perceived lack of centralised and actionable data on the most important commercial real estate market indicators for effective decision making. Foodlocker(Nigeria), a foodstuff and grocery (eCommerce/retail) startup based in Ibadan, with an interesting business model that juxtaposes both traditional and contemporary commerce.

Natterbase (Nigeria): is a talent accelerator platform that enables companies to hire and manage developers from anywhere in the world to meet their software needs. HelpMum (Nigeria) is a maternal and child healthcare organisation that combats women and child health challenges in Africa. It sells inexpensive, sterilised birth kits containing 11 essential supplies required at childbirth to ensure a clean, safe and hygienic delivery. HubbonNG (Nigeria): is simply building an Uber for Logistics. Its solution to logistics is 3-fold; an ondemand delivery booking platform, a business directory and a Logistics Management System. SPUNVERTEK ENTERPRISE (Nigeria): A renewable energy technology developer that has supposedly innovated the only sustainable solar water pump inverter that can power any type of conventional submersible and surface water

pump for irrigation farming, public and community water supply and Livestock. There are startups from different countries in West Africa. They include: Oniriq (Senegal) prides itself in combining solar with digital technologies. A typical Oniriq device (Solarbox) offers solar energy to off-grid populations, high-speed internet, IPTV, 24-inch TV set and three sets of lamps for a monthly subscription fee. Agro fish farm (Sierra Leone) is addressing the issue of malnutrition by providing digitally bred tablesized fishes and fingerlings as commercially viable alternatives to regular fishes in the country. Keiwa (Côte d’Ivoire) offers a unique proposition of providing a simple and accessible management tool while promoting access to financial products. Codetrain (Ghana) trains young individuals on how to code and then matches them to reputable tech companies across the continent.

Seedstars Africa wraps up with 17 finalists getting to pitch their ideas CALEB OJEWALE

his year’s edition of the Seedstars Africa Summit has ended in Tanzania, giving 17 finalist startups an opportunity to pitch their ideas in a summit that had over 300 participants, from more than 20 countries in attendance. The 17 startups from Africa got to pitch on stage and prepare themselves for the competition finals, scheduled to hold in April 2019, when all the finalists will travel to Switzerland to represent their countries at the Seedstars Summit, a week-long training program, conference and pitching competition. The trip is part of the prize for having won their Seedstars World local competitions and will have them competing with over 65 finalists from all over the world for

the title of Seedstars Global Winner and up to 1 million USD in equity investment and other prizes. After two days of intense training activities, including a growth bootcamp, private mentoring sessions, and an investor forum, all attendees participated in deep discussions and learned key insights from a star-filled speaker line up, said Seedstars in a statement. The Conference featured keynote speakers from regional and global companies who addressed a number of relevant topics in groundbreaking speeches full of valuable insights. Doreen Kessy, chief business officer at Ubongo said, “Authenticity is a rare currency that should be the guiding star when making business and personal decisions”, and Eldrid Jordaan, Founder of Govchat, spoke about the importance of humility and determination

when launching and scaling a startup. At a workshop on “Technology, innovation and research to create sustainable jobs for the youth”, led by Arthur Mattli, the Swiss

Ambassador to Tanzania and the East African Community, along with Katarina Szulenyiova, COO at Seedstars, 4 groups of 10 people each discussed the “Born Before Computer”

approach of school curriculum in many African countries. The discussion also covered lack of communication between corporates and academics, to better identify the future

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

job-creating industries, and the importance of the cultural mindset for young people when a career that actually fits their aspiration and skills, all of those having been identified by the groups as some of the root causes of the job gap problem in Africa. Also announced at the summit was the Seedstars Health Challenge, supported by the Bill & Melinda Gates Foundation, through which Seedstars is launching a call to identify innovative solutions to Vaccine Delivery and Malaria supply chain challenges across Africa. This call aims all health tech startups working on vaccines delivery and malaria supply chain directly, as well as all startups working on solutions that could be applied. Two startups will be awarded at the Seedstars Summit in Switzerland, each of them walking away with $10,000.

Thursday 27 December 2018

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INSIDE Saraki sued for ‘paying Dariye N14.2m monthly allowances in prison’

26 Court of Appeal criticises Uber’s ‘complex and artificial’ employment contracts

£40,000 damages in Twitter libel case

Stifling innovation or enhancing risk management in the Fintech space …A review of CBN’s draft licensing regime for payment service providers

ndoubtedly, the Central Bank of Nigeria (CBN) has set a high watermark towards promoting financial inclusion by quantifying the inherent gaps both in terms of infrastructure and delivery channels, identifying the barriers and institutionalising reforms through progressive and proactive regulations. Underpinning these regulations is a definitive and clear strategy to ensure that not only is there robust stakeholder engagement so that all concerns and input are considered before regulations and policies are put in place but also that these regulations assist in driving better access to financial products while improving ease of use thus increasing consumer acceptance. Since the conception of the National Financial Inclusion Strategy in 2012, CBN has issued a series of regulations and policies on mircobanking, mobile banking, agent banking, transaction switching, electronic payment systems etc. in order to aid inclusion and make the financial service ecosystem more competitive. Even as financial inclusion has improved there is no gainsaying that one critical pillar responsible for this success has been rapid evolution of financial technology (Fintech) within the financial services sector. Now, with the recent issuance of draft regulations by the Central Bank of Nigeria on the new licensing regime for payment service providers, an umbrella term comprising different providers including financial technology companies, genuine concerns have been raised about the implication of these regulations if passed in its current form. At the epicentre of this debate are two

central issues; the first is related to the aggregation of singular licences and their categorisation under umbrella licence types and the second, which is more perplexing, is the minimum capital requirements specified for each of license category. It is against this background that I analyse the draft regulation and interrogate the licensing structure while also sharing my own constructive views on the better way forward. Understanding the Proposed Licensing Structure Essentially, the CBN is introduc-

ing a 3tier licensing model each with distinct minimum capital requirements, licence fees, renewal fees, license tenors and permissible activities under each licence category. These licence categories are: Super Licence Category: This licensing category combines five existing licenses comprising switching, payment service solutions providers (PSSP), payment terminal service providers (PTSP), Non-bank Merchant Acquiring and Super Agency thus allowing the Super Licensee to render permissible activities along each and any of those existing licence

categories. A licensee under this category must have a minimum shareholder fund of N5billion, pay licensing fees of N2million, pay renewal fees of N1million with the licence having a tenor of 3 years. Standard Licence Category: Under these category three existing licences are combined ranging from mobile money operators (MMO), Super Agency and Non-bank Merchant Acquiring hence a Standard Licensee can perform permissible activities along each and any of those existing licence categories. Holders of this licence must have a minimum shareholder fund of N3 billion, pay licensing fees of N1 million, pay renewal fees of N 500,000 with the licence having a tenor of 3 years. Basic Licence Category: This licence category allows the holder to render permissible activities across three existing licence categories namely Super Agency, PSSP, and PTSP. Holders of this licence must pay licensing fees of N2million, pay renewal fees of N1million with the licence category having a tenor of 3 years. However, unlike the other previous categories each existing licence category attracts individual minimum capital requirements hence Super Agency businesses would require a minimum capital of N50m while PSSPs and PTSPs require a minimum of N100million individually. According to the draft regulations, once the new licence regime is implemented, licence holders would be expected to notify CBN before starting any activity under its license category. This means if a Super Licence holder for instance was only undertaking switching Continues on page 27

Consumer Protection Council welcomes NCC move to sanction mobile network operators

he Consumer Protection Council (CPC) has applauded the move by the Nigerian Communications Commission (NCC) to sanction Mobile Network Operators with respect to unsolicited value added service subscriptions and unlawful deductions from consumers. In an official statement on Friday December 21, 2018, the CPC described the development as “unprecedented yet, an important initiative” to protect consumers, which according to it was the outcome of a long and comprehensive investigative audit that was industry-wide. The statement read, “The initiative is laudable and corroborates the validity, and accuracy of incessant and persistent consumer dissatisfaction and complaints with respect

to these issues, the statement read The Director General of the CPC who signed the statement, also commended the Commission for its effort and intervention, and assured its leadership of the Council’s abiding commitment to improve consumer experience in the telecommunications sector and determination to continue the enduring partnership it of with the Commission to accomplish this objective. “We look forward to the effective enforcement of applicable standards and principles of fairness, transparency and responsiveness with regards to these and other issues within the sector, and will continue to collaborate to achieve the same,” he said.

Partnership For Protection: Director General, Consumer Protection Council (CPC) Babatunde Irukera, with Executive Commissioner, Stakeholder Management, NCC, Sunday Dare (R), during his courtesy visit to the DG to discuss the collaboration on ongoing telecommunication sector enquiry, mutual regulatory understandings and enforcement to promote fairness, transparency and responsiveness in the sector.

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Thursday 27 December 2018

LegalBusiness

Saraki sued for ‘paying Dariye N14.2m monthly allowances in prison’

ocio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit asking the Federal High Court in Lagos to “stop the Senate President Bukola Saraki from paying former Plateau State governor, Senator Joshua Dariye N14.2 million monthly allowances while he serves out a 10-year prison sentence for corruption because such payment violates Nigerian law and international obligations.” According to SERAP’s lawsuit, Dariye is still receiving the N750,000 salary and N13.5 million monthly allowances from the Nigeran Senate six months after his conviction. In June, an FCT high court convicted Dariye for diverting N1.162 billion state ecological funds while he was governor. He was sentenced to 14 years in prison, which was later reduced to 10 years by a court of appeal in Abuja. Dariye is said to have been paid N85.5 million as allowances since his conviction. Joined as Defendants in the suit are: Dariye and the National Assembly Service Commission. In the suit number FHC/L/ CS/2146/18 filed last Friday, SERAP argued: “Mr Saraki and the National Assembly Service Commission are trying to override Nigerian law and the judgment of our court by continuing to pay Mr Dariye’s allowances while he serves out a 10-year prison term and unable to sit and perform the functions of a senator. This action undermines the rule of law and is a great moral failure because it sends a message that corruption pays— it’s the opposite of Nigerian Constitutional principles and international obligations.” The organisation also argued: “Stopping the Defendants would ensure that only sitting and serving senators are worthy of drawing salaries and allowances from the public treasury. It would also further the public interest and general public confidence in the government it elects. The interest in public confidence is greater than the convicted person’s interest in continuing to receive allowances while serving his sentence for corruption in Kuje prison.” The 15-page lawsuit read in part: “Mr Saraki and the National Assembly Service Commission should be immediately restrained from unlawfully paying salaries and allowances to Mr Dariye who is serving jail term. Restraining them would

send a clear message to Nigerian elected officials that corruption does not pay and contribute to promoting accountability and fostering public trust and confidence in Nigeria’s democracy, the rule of law and the governance system.” “By paying Mr Dariye’s allowances while in prison, Mr Saraki and the National Assembly Service Commission have destroyed the efficacy and purpose of Mr Dariye’s conviction and have brought the rule of law and administration of justice into disrepute. SERAP and the public are alarmed by the action of Mr Saraki and the National Assembly Service Commission and they ought to be restrained by this Honourable Court.” “Mr Saraki and the National Assembly Service Commission should not be allowed to continue to make a mockery of the rule of law, our process of administration of justice and our judicial system by behaving as if the Nigerian Senate is not bound by the court judgment which convicted and sentenced Dariye for corruption. Mr Saraki and the Nigerian Senate should be compelled to respect and obey decisions of the court.” “By continuing to pay Mr Dariye’s allowances after his conviction and while in Kuje prison and unable to sit and perform the functions of a sitting senator, Mr Saraki and the National Assembly Service Commission have played a negative role to wit: undermining the authority and integrity of the court. Mr Saraki and the National

Assembly Service Commission knew or ought to know that Mr Dariye has been convicted and sentenced and now serving his jail term in Kuje prison pursuant to a decision of a competent court.” “Mr Dariye, having been convicted, sentenced and currently serving jail term in Kuje prison can no longer by virtue of his imprisonment lawfully carry out or perform the duties of a senator. Mr Dariye ordinarily ceases to be a senator, as per the provisions of section 66 of the 1999 Constitution of Nigeria (as amended).” “Section 68(1) provides that a senator shall vacate his/her seat if any circumstances arise that would cause him/her to be disqualified for election as senator. This is exactly what happened to Mr Dariye, who is, as a result of his imprisonment, no longer fit to be a senator let alone be entitled to allowances of a sitting senator. Similarly, a senator shall vacate his/her seat if without just cause, he/she is absent from meetings of the Senate, for a period amounting in the aggregate to more than one-third of the total number of days during which the Senate meets in any one year” “Mr Dariye is no longer a senator having been convicted, sentenced and currently serving prison terms and having been in prison since June 12, 2018, he is caught by the provision of section 68(1)(f ) as it is practically impossible for him to sit as senator.” “Mr Dariye, having been absent for a period amounting

in the aggregate to more than one-third of the total number of days during which the Senate meets in 2018, is disqualified and therefore his seat has automatically become vacant. Mr Dariye is no longer entitled to be paid and/or to receive the allowances of a sitting and serving senator.” “Mr Dariye’s conviction remains in effect until it is set aside. Therefore, the argument that he has appealed his conviction will not hold water. A judgment of a competent court of law subsists until set aside on appeal. The Supreme Court of Nigeria has made this point very clear in several cases.” “So long as the decision exists, it must be obeyed to the letter. A judgment of court, no matter the fundamental vice that afflict it, remains legally binding and valid until set aside by due process of law. As the Supreme Court has said, the judiciary like all citizens of this country cannot be a passive on-looker when any person attempts to subvert the administration of justice and will not hesitate to use the powers available to it to do justice in the cases before it.’’ “Mr Dariye cannot justly and reasonably earn the allowances of a sitting and serving senator, having been convicted and sentenced and serving a prison term. Under the common law principle of money had and received, Mr Dariye is under a legally binding duty to return all such salaries and allowances to the public treasury, having not justly earned such. Mr Dariye should be compelled to return

the allowances he has received so far since his conviction.” “SERAP is seeking an order restraining Mr Saraki and the National Assembly Service Commission from paying Mr Dariye any further allowances while serving his jail term in Kuje prisons, Abuja.” “SERAP is also seeking a declaration that the seat of Mr Dariye in the Senate is automatically deemed vacant, having being convicted and sentenced to a prison term and currently serving jail term and having been absent at the sessions of the Senate for a period amounting in the aggregate to more than one-third of the total number of days allowed, and that he is therefore, not entitled to any allowances reserved for a sitting and serving senator.” “SERAP is also seeking an order compelling Mr Dariye to return all salaries and allowances paid to him as a senator while in prison, having not performed the functions and office of a sitting and serving senator and having not deservedly earned such.” “Unless the reliefs sought are granted, Mr Saraki and the National Assembly Service Commission will continue to act in flagrant defiance of the judgment of the court, the independence and authority of the court, and the rule of law. It is in the interest of justice to grant this application as the Defendants have nothing to lose if the application is granted.” No date has been fixed for the hearing of the suit.

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Legal community celebrates Oyebode for contributions to jurisprudence Continued from last week

rominent Professor of jurisprudence and international law, Akin Oyebode was greatly celebrated by members of the legal profession at a recent event to unveil the work, “Crisscrossing law and jurisprudence: A festschrift in honour of Professor Akindele Babatunde Oyebode.” in honour of the renowned university professor. Speaking at the public presentation of book at the University of Lagos (UNILAG), Lagos State, Lagos State Attorney-General & Commissioner for Justice, Adeniji Kazeem SAN described Prof. Oyebode as one the most enterprising, innovative, intriguing and inspiring lecturers he had ever come across. “And I have encountered several in my lifetime. I say this without fear or favour…” he said. The festschrift, a volume of scholarly articles is contributed by many authors to honour a senior colleague or renowned scholar and usually on the occasion of the honoree’s birthday. The Attorney General noted that there were so many people that Prof.

Oyebode has touched,” adding: “I still come back to consult him on several legal issues. I expect him to be back because he is so passionate about what he does. I am sure the university authorities have listened (to the request that he be made an emeritus professor).” Asue Ighodalo, Founding Partner, Banwo & Ighodalo and Chairman Nigerian Economic Summit Group (NESG), described Oyebode as a “highly respected and highly distinguished teacher of men,” adding that he is “extremely cerebral, very confident, very eloquent, with strong views on many issues, and with the mastery of most issues.” He also urged Oyebode to return to the faculty, saying, “You must come back. We must not let Prof. Oyebode go. He must continue to be a teacher of men.” Dean of Law, University of Lagos, Prof. Ayo Atsenuwa said that the collection of essays was “in celebration of an uncommon scholar who gave the best years of his life to the faculty and the university.” Popular Economic and Financial Crimes Commission (EFCC) prosecutor, Wahab Shittu described Oyebode as “an extra-ordinary scholar, a

L-R: Prof. Ayodele Atsenuwa, Adeniji Kazeem, SAN, Prince Julius AdelusiAdeluyi, Prof. Akin Oyebode and his wife.

father figure for many,” adding: “A lot of things has been said about Prof. Oyebode but one striking attribute of his that I want us to take away from here is -apart from his scholarship his unparalleled integrity.” He then presented the renowned scholar with EFCC souvenirs as an “anticorruption scholar,” noting that he “spent 44 years in the university with his integrity intact.” UNILAG Pro-Chancellor, Dr. Wale Babalakin, SAN noted that only a well-funded university system could attract the best minds. His words: “If I am going to sacrifice because I insist that quality education must be had in Nigeria, that we must have good funding, that we must have the likes of Prof Akin Oyebode joining the universities all over again

and having a full life in the university and achieving everything they set out to achieve, I stand charged, and I will stand by it.” On his part, former Minister of Health and Social Services, Prince Julius Adelusi-Adeluyi OFR noted that “One golden thread that runs through all the accolades apart from his integrity is that he is one who has inspired many.” Emphasizing the need for others to emulate this virtue, the renowned pharmacist and former Nigerian Law School best graduating student said: “Nothing is better in life than to be called an inspirer, because the greatest form of flattery is imitation. Please aspire to inspire others before you expire.” Thanking the Faculty of Law for the honour done the patriarch of the

Oyebode family, Gbenga Oyebode MFR noted “his 44 years of service not just to the University of Lagos but to Nigeria and his students.” He also observed that his students are “doing very well up to Supreme Court.” In his response, Prof. Oyebode thanked the faculty for the honour done him. His words: “There is a lot of life after retirement. I am even busier now paradoxically. One is so grateful to God. I thank those who are asking the university authority to confer me with the rank of emeritus professor. I am sure a lot of work has gone into that, but I still leave everything in the womb of history. “Our faculty has done its best; there might be rough edges. The faculty organized four dinners for my send off. The vice president attended one of the dinners to honour his former teacher. I have been very lucky and privileged as a teacher in the faculty. I have been privileged to teach over 70 senior advocates. I taught over 30 law professors. My former students could be found from the Supreme Court to the lowest courts in the land. What more can I ask for than to have produced people who are making waves.”

Stifling innovation or enhancing risk management ... Continued from page 25

and non-bank acquiring services it would need to inform the CBN if it wanted to commence PSSP operations. Now having read the draft regulations, the obvious question is why is the CBN at this critical juncture coming up with these regulations and what does it seek to achieve? Are its motives altruistic or is this a more strategic subterfuge by some vested interests especially coming at a time when the acceptance of Fintech products by those underserved by mainstream financial institutions in reaching has grown exponentially. The preface to the draft regulations reveals that it is CBN’s ‘belief that the proposed structure, if implemented, will properly position the Bank to adequately address the emerging issues of Fintech with respects to cyber risks, risk management framework, capital adequacy, better focused regulation and oversight operations..’ Juxtaposing this intent against the proposed licensing structure one needs to interrogate whether the new structure can indeed achieve this intent. Analysing the Issues While the draft regulations essentially only introduce 2 new concepts, the reality is that those concepts have seismic implications on Payment Service Providers and below we discuss those concepts, the inherent issues and whether on a scale these concepts do align with the indices CBN set for itself in the preface to the draft regulations. Consolidation of Existing Licences: On the face of it the obvious implication for the consolidation of

licences is that licence holders can now offer a wider range of services. However, it is difficult to see how this consolidation achieves any of the objectives of CBN i.e. risk management, cyber risk mitigation, capital adequacy etc and even more worrying is that the draft regulations is short on details as to how existing licence holders will evolve into this new licensing arrangement. Is it a compulsory or voluntary evolution? Would they have to use an holdco model? Also, why do licence holders need to inform CBN again when they want to commence operations for an activity they are already licenced to undertake. Minimum Shareholder Funds: This is the real elephant in the room. Now to my mind the most critical reason for insisting on a minimum capital requirement in any regulated business is to achieve two functions. One is to mitigate risk such as market risk, credit risk, operational risk, liquidity risk while the other is to ensure that the entity has capacity to undertake the business. If we dissect the digital financial services ecosystem from a risk perspective, it is clear that only Payment Service Providers with settlement obligations carry an inherent credit risk (i.e. the risk that counterparty will fail to meet its obligations in accordance with agreed terms) and the players that fall within this bracket are Switching Companies, MMOs, Non-bank Acquiring and Super Agents. Not that these Service Providers are immune from those other risks, it’s that given the nature and scale of their business those risks can be and indeed have already been addressed by other

means from a regulatory perspective (the plethora of regulations and circulars on the activities of each of these service providers shows that there are robust provisions on risk management). Also, a review of the existing regulations on each of these settlement PSPs reveals that each already has a minimum capital requirement. Therefore, other than the increased capital requirements by virtue of the consolidated licensing structure, the only new introduction in this draft regulation is the capital requirements for PSSPs and PTSPs. Now interestingly, it is within this segment that a lot of fintech start-ups have emerged over the past 5 years with superior and innovative products in relation to payment solutions applications, processing gateways and portals and payment terminal applications development. These subset of PSSPs and PTSPs are the ones at real risk of extinction with the introduction of this minimum capital requirements. As previously stated, this draft regulation is short on details hence the composition of this minimum shareholder funds is unclear i.e. is this paid-up capital or authorised capital? How will this be monitored? and will there be any filing requirements? Are there any penalties if one falls below the minimum during the licence period? and what is the cure period? etc. While it is clear that the capital adequacy concerns should only be limited to PSPS with settlement obligations hence increasing the minimum shareholder funds may be justified for those undertaking those aggregated services, it is difficult

to see how this new regulation addresses issues of cyber-crime or risk management framework or why capital adequacy is a concern for those PSPs without any settlement obligations i.e. PSSPs and PTSPs. What is the Way Forward? Fortunately, this new licensing structure was released under a draft regulation and the supposition therefore is that all stakeholders would have already engaged CBN on their views and concerns within the review window indicated in the draft regulations. Let me however take the benefit of highlighting my own succinct remedies to some of the anomalies identified in this draft regulation: Generally, there should be greater detail on how PSPs can evolve into this new licensing categories and a confirmation as to whether CBN is discontinuing the existing license regime and if so, what the transition period would be. The CBN should take a critical review of the minimum capital requirements for PSSPs and PTSPs in order to ensure that they are not inadvertently stifling innovation through this new regime. Everything must be done to protect and preserve the Fintech Startups space not only because of their importance to achieving financial inclusion both also because of the huge economic potential they present. My view is that the minimum capital requirements should only apply to those PSPs with settlement obligations while no capital requirements should be imposed on the others or at best, they are required only to maintain a nominal capital amount e.g.

N5million or N10million but this should be limited to authorised share capital. In terms of the financial technology space, CBN’s focus should rather be on improving ease of use of these fintech products by increasing the technical requirements and specifications, preserving the integrity of customer information by ensuring enhanced cyber security architecture is utilised (which interestingly was the basis of the cyber levy imposed by CBN on all MMOs and other PSPs) and maybe coercing these players to a minimum corporate governance requirement in order to institutionalize best practices on them at an early stage. Finally, CBN should be weary of overregulating this space because it may prove counterproductive and make it challenging for Fintechs to develop and implement the latest innovation. It is essential that the regulator maintain an equilibrium between customer protection and creating an environment that supports innovation. Therefore, to my mind it is about time that CBN sets up a regulatory sandbox for players Fintech thus creating a ‘framework to allow small-scale, live testing of innovations by private firms in a controlled environment (operating under a special exemption, allowance, or other limited, time-bound exception)’. Abayomi Adebanjo Co-Heads the Financial Services Sector of Jackson, Etti & Edu and holds an MBA from the prestigious Lagos Business School and certifications from London School of Economics and St Catherine College, Oxford University

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Thursday 27 December 2018

BDLegalBusiness

£40,000 damages in Twitter libel case

PhotoPile

The Chairman, NBA Ikeja, Prince Dele Oloke (2nd Left); Director, Public Prosecution ‘DPP’ Lagos, Ms. Titilayo Shitta-Bey (Left); Consultant, Rule of Law & Anti-Corruption ‘ROLAC’, Dr. Akeem Bello (2nd Right); Director, Office of the Public Defender ‘OPD’ Lagos, Mrs. Adeyinka Adeyemi (Right) and Myself at the Validation Meeting of “Plea and Sentence” Manual, held at The Lagos Ministry of Justice, Conference Room on Monday, 17th December, 2018.

former chairman of a UK Independence Party branch has been ordered to pay £40,000 in damages to a man defamed on Twitter even though he did not write the offending tweet. Ruling in Zahir Monir v Steve Wood, the Honourable Mr Justice Nicklin accepted that Steve Wood had not written or approved the tweet, made from the UKIP branch account and picturing a Labour election candidate alongside two men described as ‘child grooming taxi drivers’. However he held that the tweet’s author, John

as the branch chairman and telephoned to complain, and later contacted the police. However the judge ruled that Wood had not taken Monir’s complaints seriously, quoting Wood as saying that, as a bailiff, challenges to his authority were as ‘water off a duck’s back’. According to the judgment, Wood’s conviction that he had done nothing wrong ‘together with his stubbornness and self confidence, has led him to have adopted an uncompromising approach to Mr Munir’s claim.’ In particular Wood

(and did use) Twitter.’ On the serious harm test, the judge said that even though witnesses who had recognised Monir from the tweet knew that the allegation was false ‘an unquantifiable number of further publishees’ who saw it reproduced on WhatsApp groups might have been able to identify him. O n damages, the judge said that the gravity of the allegation ‘puts it to the top end of seriousness’, compounded by Wood’s ‘intransigence and his refusal publicly to apologise’. Had the libel been

Langley, was ‘quite clearly acting as the agent of Mr Wood’. The judgment affirms that a web post seen by relatively few people can meet the ‘serious harm’ test established by the 2013 Defamation Act even though at least some viewers know immediately that it is untrue. Zahir Monir, a Rotherham businessman and Labour activist, took action after his attention was drawn to the tweet, which the judge described as ‘a very serious defamatory allegation’. It was published in the runup to the 2015 general election to @ BristolUKIP’s 547 followers, retweeted at least 17 times and ‘liked’ at least eight times. The court heard that Monir had identified Wood

argued that Langley, originally named on the claim form, should be held responsible. The proceedings were served on Wood after it became apparent that there was no prospect of recovering damages from Langley, a selfstyled ‘maverick’ who had a sideline as a pornographic video maker and actor under the name ‘Johnny Rockard’. In his witness statement, Wood had initially maintained ‘I do not use Twitter’, saying he would need to be taught or have it demonstrated. However the judge found that, ‘the evidence satisfies me that Mr Wood was familiar with Twitter and, contrary to the impression given in his witness statement, he was perfectly capable of using

published in a national newspaper, £250,000 or more could have been justified, he said. The figure of £40,000 was proportionate to the limited scale of publication and the ‘difficulties of causation’. Monir’s solicitor, Jeremy Clarke-Williams of commercial and private client firm Penningtons Manches, said the judgment provides Monir with ‘the complete vindication he deserves’. He said that the judgment will have implications for every organisation delegating responsibility for social media accounts. ‘If you are responsible for letting a maverick genie out of the bottle then you are likely to face the legal consequences – and in the era of fake news that presents a real risk.’

GLOBALREPORT

Court of Appeal criticises Uber’s ‘complex and artificial’ employment contracts

ultinational taxi firm Uber has lost its latest bid to clarify the legal status of its drivers, as the Court of Appeal (England & Wales) critcised its ‘complex and artificial’ employment contracts. In a judgment handed down last week in Uber v Aslam, Farrar & Ors, the court said drivers should be entitled to rights including holiday pay, minimum wage and entitlement to breaks. It is Uber’s third legal defeat on the issue in three years following decisions from the employment tribunal (ET) and employment appeal tribunal. The case will now be appealed in the Supreme Court. Uber was challenged by two drivers, Yaseen Aslam and James Farrar, who argued they should be entitled to worker’s rights. However, the three judges were split. Lord Justice Underhill found in favour of Uber while master of the rolls Sir Terence Etherton and Lord Justice Bean found in favour of the drivers. In the judgment, Etherton LJ and Bean LJ said drivers operated under ‘complex and artificial contractual arrangements’. These contracts, according to the judgment, were ‘no doubt formulated by a battery of lawyers, unilaterally drawn up and

dictated by Uber to tens of thousands of drivers and passengers, not one of whom is in a position to correct or otherwise resist the contractual language’. It added: ‘We see no reason to disagree with the factual conclusions of the ET as to the working relationship between Uber and the drivers, but we consider that the ET was plainly correct.’ In his separate finding, Underhill wrote: ‘It still seems to me that the relationship argued for by Uber is neither unrealistic nor artificial. On the contrary, it is in accordance with a well-recognised model for relationships in the private hire car business.’ Rachel Mathieson, solicitor at Bates Wells Braithwaite, which represented the drivers, said the decision is an important step to protecting those operating in the ‘gig economy’. The judgment follows similar cases involving drivers at taxi company Addison Lee and plumbing organisation Pimlico Plumbers. Despite this latest clarification on the law, the court said it would be up to the government to clarify how it

will adapt modern employment protections to the ’gig economy’. ‘ T h e Tay l o r R e v i e w (Good Work – The Taylor Review of Modern Working Practices) was published last year. It recommended the introduction of a new “dependent contractor” status.’ A number of questions are asked relating to those issues. These are quintessential policy issues of a kind that parliament is inherently better placed to assess than the courts,’ the judgment said. An Uber spokesperson said: ’This decision was not unanimous and does not reflect the reasons why the vast majority of drivers choose to use the Uber app. Almost all taxi and private hire drivers have been selfemployed for decades, long before our app existed. ’Drivers who use the Uber app make more than the London Living Wage and want to keep the freedom to choose if, when and where they drive. If drivers were classified as workers they would inevitably lose some of the freedom and flexibility that comes with being their own boss.’

Thursday 27 December 2018

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BUSINESS DAY

Shaping people into a team

How software is helping big companies dominate pany’s way of doing things goes from advantage to disadvantage. Like any theory, architectural innovation can’t explain everything. But architectural innovation helps explain why certain capabilities are so tough to replicate.

James Bessen

hroughout the global economy, big companies are getting bigger. They’re more productive, more profitable, more innovative and they pay better. Policymakers have noticed. Antitrust and competition policy are seeing renewed interest. Headlines in publications ranging from The Nation to Bloomberg warn of America’s “monopoly” problem, with calls to break up big companies such as Google or Amazon or Facebook . Antitrust policy deserves the attention it’s getting, and the tech platforms raise important questions. But the rise of big companies — and the resulting concentration of industries, profits and wages — goes well beyond tech firms and is about far more than antitrust policy. Most industries in the U.S. have grown more concentrated in the past 20 years, meaning that the biggest firms in the industry are capturing a greater share of the market than they used to. But why? Research by one of us (James Bessen) links this trend to software. Even outside of the tech sector, the employment of more software developers is associated with a greater increase in industry concentration, and this relationship appears to be causal. THE ‘FULL-STACK’ STARTUP Vox is a digital publishing company known, in part, for its proprietary content management system. Vox licenses its software to some other companies (so far, mostly noncompetitors), but it is itself a publisher. Its primary business model is to create content and sell ads. It pairs proprietary publishing software with quality editorial to create competitive advantage. Venture capitalist Chris Dixon has called this approach the “fullstack startup.” “The old approach startups took was to sell or license their new technology to incumbents,” says Dixon. “The new, ‘full stack’ approach is to build a

complete, end-to-end product or service that bypasses incumbents and other competitors.” Vox is one example of the full-stack model. HOW BIG COMPANIES BENEFIT Clearly, proprietary software is providing an advantage to some companies. The result is that large firms are gaining market share. But to explain that, one needs to explain why some companies are so much better at developing software than others and why their innovations don’t seem to be diffusing to their smaller competitors. Economies of scale are certainly part of the answer. Software is expensive to build but relatively cheap to distribute; larger companies are better able to afford the upfront expense. But these “supply-side economies of scale” can’t be the only answer or else vendors, who can achieve large economies of scale by selling to the majority of players in the market, would dominate. Network effects, or “demand-side economies of scale,” are another likely culprit. But the fact that the link between software and industry concentration is pervasive outside the tech industry — where companies are less likely to be harnessing billions of users — suggests network effects

are only part of the story. Part of the explanation for rising industry concentration, then, seems to hinge on the fact that software is more valuable for firms in combination with other industryspecific capabilities. Research suggests that the benefits of information technology depend in part on management. Well-managed firms get more from their information technology investments, and big firms tend to be better managed. There are other assets that differentiate leading firms, and which can be difficult or costly to replicate. A senior executive who has worked at a series of leading enterprise software firms recently told one of us (Walter Frick) that a company’s ability to get more from an average developer depended on successfully setting up “the software to make software” — the tools, workflows and defaults that allow a programmer to plug into the company’s production system without having to learn new skills. Patents and copyright also make it harder for software innovations to spread to other companies, as do noncompete agreements that keep employees from easily switching jobs. But one of the biggest barriers to diffusion and therefore one of the biggest sources of competitive

advantage for the firms that excel at software — comes down to how companies are organized. ARCHITECTURAL INNOVATION In 1990, Rebecca Henderson, now a professor at Harvard Business School, published a paper that provides a theoretical basis for the success of full-stack startups. At the time, multiple thinkers were grappling with the question of why big, cash-rich companies were sometimes unseated by new technologies. Incumbent companies aren’t necessarily bad at using new technologies, Henderson argued, based on her study of the photolithography industry. In fact, incumbents were great at using new technologies to improve individual components of their products. But when a new technology fundamentally changed the architecture of that product — the way everything fit together — the incumbent struggled. Her point was that a company’s way of doing things is often deeply interconnected with the architecture of the products or services it creates. When the architecture changes, all the knowledge that was embedded in the organization becomes less useful, and the com-

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

SPREADING THE BENEFITS OF SOFTWARE The challenge for policymakers worried about industry concentration and the power of giant companies is to spread the benefits of software in the digital economy more broadly. Antitrust policy may be able to help in extreme cases, including reining in the tech platforms and their ability to buy up competitors. But policymakers should also consider ways to help software and software capabilities diffuse throughout the economy. To some degree, economies of scale will simply increase the average size of firms, and that’s OK. But banning noncompete agreements would help employees spread their knowledge by taking on new jobs in different companies. Reforming patents, which don’t always protect software innovation and are abused by patent trolls to the detriment of nearly everyone, would help, too. Anything governments can do to encourage the use of open-source software could help as well. For example, the French government mandates that public administrative bodies thoroughly review open-source alternatives when revising or building new information technology, and to use the savings realized to fund further open-source development. Even if you’re not in the software industry, there’s a good chance your success hinges on your ability not just to use but also to build software. Using vendors often still makes financial sense, of course. But consider what makes your company unique, and how software might further that advantage.

James Bessen is the executive director of the technology and policy research initiative at Boston University School of Law. Walter Frick is a senior editor at Harvard Business Review.

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Thursday 27 December 2018

GARDEN CITY BUSINESS DIGEST Card-carrying money bags declare:

What investors want to hear from candidates ...Business owners do not want rice or money but investment environment of those we already have or a new set. This is the time to account for stewardship of past four years; in infrastructure at national and state levels, etc. These are issues that will determine how we will vote in 2019”. For instance, in infrastructure, he said, the roads in eastern Nigeria from Aba to Port Harcourt play a major role in the Ease of Doing Business in Port Harcourt. SMEs carry out businesses from Onitsha to Aba to Port Harcourt. So, if roads get so bad and transport too high, that will obviously affect ease of business communication in the eastern region. “We have taken out time to think through this issue and this will decide who we would vote for.” Lamenting more on the state of road between Aba and Port Harcourt, Bobmanuel there is no more road or passage between the two cities. “Traders now have to spend three times the amount they ordinarily they could have to move goods from Aba to Port Harcourt. Cost is passed on to buyers. This erodes the profit margin or shrinks the demand size. This reduces business volume in the region. This affects petty traders. Most of our businesses are suffering due to collapse of road from Aba to Port Harcourt. This is key factor of voting in 2019.” He went on: “Look at the seaports. By estimates of today, we lose about N20Bn on a daily basis because of the way the seaports are struc-

IGNATIUS CHUKWU

usiness owners who claim to control over 40 per cent of votes in Nigeria especially in the oil region say they no longer want rice and freebee but solid policies that would allow them make money through investments this time around. In a forum in Port Harcourt, the investors and business owners who gathered at a spot at the Government Reserved Area 2 (GRA 2) close to where the 7-storey building collapsed took stock of voting patterns and needs of the investors and resolved to press the presidential and governorship candidates to come clean on their policies and programmes instead of bags of rice and money. In an interview afterwards, the president of the Rivers Entrepreneurs and Investors Forum (REIF), Ibifiri Bobmanuel, a construction firm and now tractor manufacturer who coordinated the meetings told BusinessDay in an exclusive interview that they are desirous of businesses thriving once again. He said: “To whom much is given, much is expected. We have started sensitization of all our affiliates and we would be voting en-mass in 2019. Businesses, from formal to informal sector, have 40 per cent voting power. Our interest comes paramount in how we would decide. We are articulating our needs. The leaders we want may be some

tured. Goods that ought to come to Nigeria are so much and they have only one window being Lagos port which was built over 100 years ago. Every project has its capacity and life span. Over 100 years, you find that the capacity has been outlived. You have sister ports in the country that ordinarily should have kicked in but those ports, for one bureaucratic reason or the other, are not working. A person bringing in goods would face three scenarios; to bring it in through neighbouring countries and smuggle it in, spending three times the cost. If you calculate costs of diverting goods outside Nigeria, it is put at N20Bn daily. This amount comes from the pocket of the importer who passes it to the trader who passes it to the end user. This shrinks the volume of demand.” On taxes in Rivers State, he said: “We want to see a scenario where we have one single tax window, no more state and local council taxes. Even if two or more layers

of governments want tax, there should be one window to pay it, so they split the taxes to the various owners. Business owners no longer want local council workers to come lurking around, and we do not want state and local council workers coming one after the other. Show us one window to pay and you sort yourselves out.” Investors said they want to see incentivisation of startups in the Niger Delta. They urged governments to come up with incentives and say, if you invest so-so amount, we give you tax holiday for this number of period; we will match your funds such that every N100m you invest, we will match you with so-so amount. “Give us the opportunity to create jobs as investors, he said. “It is our duty to create jobs. We want leaders that will think through these and come up with policies that would lift the economy. We want them to come up with a PPP plan because the country does not have enough funds

to invest, and it is not good to continue to borrow. This is because for every $100 dollars we make, we spend 60 per cent to service loans. Do not just tell us you are going to make the Dollar to be so-so amount, or that you will not borrow. Tell us HOW you will do this, how you will run your government so you do not borrow so the business community can queue in. For every society, electioneering period is the period when investors develop cold feet because they do not want to invest and when a new government comes and takes a new direction. Their funds would be stuck. So, what we want is for every candidate to come out with investment profile and his direction based on his antecedents and what he has achieved and what he promised the business community and his records”. He said, “We could decide to vote you in or out. That is what we are saying as a business community. We are energizing all our members and affiliates across the markets

in the state and businesses in the state; we are rallying our members because our investments and businesses are sick. We are card carrying moneybags that have major financial stakes in the economy and we must have to vote right. We can’t put our funds in the economy and vote out of sentiments. We must vote the right set of leaders who know what we want. We could say this one has done this and has promised this.” More: “As electorate, we are Oliver Twist. It is our civic responsibility to demand what is right from our government. When this is done, they expand the opportunities in the state and region. When we invest our funds into the economy, jobs are created. We need to have a clear-cut path on the kind of leaders we want to vote for. That is why we want to see their manifestos and break it down in monetary terms and periodic terms to see how feasible it is.” On whether the investors can trust Nigerian politicians to have this kind of manifesto that is detailed when they would just claim they would unveil their agenda when they get in, Bobmanuel said: “I can break it down further. Four years ago, we as businesses organized a debate and encouraged the political parties to come up with their manifestos and came to a debate. We listed what each candidate promised, both winners and losers. In our case in Rivers State it is very interesting because the ones that lost did have a role to play in the well being of the state (APC won at the federal level). So, we have looked at the ones that won (PDP won at state level) and what they have been able to achieve, and the ones that lost and what they have been able to achieve or not.

Can new alliance of police, citizens, stop violent cultists in Rivers?

Port Harcourt by Boat With

IGNATIUS CHUKWU

head of the 2019 general elections, on Sunday, November 25, 2018 the police in Rivers State had discussions around the subject of cultism as a menace against social peace and economic wellbeing. Innocent Eteng who was inside the hall for BusinessDay saw it all, and asks if this is the answer everyone is yearning for? The platform for discussion was provided by the Bosinde Araikpe Global Peace Initiative, through its monthly “Police Is Your Friend” and “Security Bridge” dialogue in Port Harcourt,

where citizens interface with top security personnel on prevailing security challenges and the way forward. With the topic, “What Is The Way Out Of Cultism?”, fielding questions from citizens were Assistant Commissioner of Police (Chioba Area Command), Patrick Daaor; Commander of Anti-cultism Unit in Rivers State, Ahijo Lawson, a Chief Superintendent of Police; River State Police Public Relations Officer, Nnamdi Omoni, a Deputy Superintendent of Police; and Nature Dumale, a repentant cultist who now rehabilitates cultists and drug addicts through his nonprofit - Youth Rescue. The discussion basically centred around the causes of cultism, its impact, how to identify a cultist and report him, and how to seek rehabilitation as a cultist or refer a cultist to do so. “For it to stop, the community has to partner with the police. It is not a choice, it is a must. If you have a son or a neighbour who is a cultist, you must come out and tell us. We must rise above fear,” said Patrick Daaor, the Assistant Commissioner of Police. “Society implodes when the values of society are eroded. All hands must be on deck and I think we should go beyond fear. We are grappling with a situation where people no longer have respect for human

life, taking someone to the bush and severing his head. It is not something we should come and speak ‘Queen’s English’. It is everyone acting and reaching out to the other,” he adds, while answering questions from his rapt-listening audience of over 100 people. Causes of cultism were identified to include poverty, peer pressure, poor family upbringing, curiosity and lack of sensitization. Parents were admonished to look out for violent tendencies, mode of dressing, greeting and body cuts or tattoos as signs that their children or wards are cultists or are having contact with cultists.

“The challenge and impact of cultism is not something new. The people doing this things are our sisters, our brothers and our neighbours. The police are not spirits, we rely on information to fight crime,” the Anti-cultism commander, Ahijo Lawson, emphasized. Though a long lasting problem, in recent times, cult-related violence has increased with the birth of new rival cultist groups across the Niger Delta, leading to the death of hundreds. In Rivers State, for example, during the 2015 general elections and the 2016 legislative by-elections, more than 20 people were killed by cultists hired by politicians, according to a study by

the Partnership Initiative in the Niger Delta (PIND). Nature Dumale, the former cult king who now leads the Youth Rescue Movement for rehabilitating repentant cultists, said the menace of cultism has lasted because cultists receive patronage from politicians and other high-standing people in society, who use them for election violence and other mischievous purposes. Police may need to take note. Meanwhile, Bosinde Araikpe, director of Bosinde Araikpe Global Peace Initiative, the reason for organising “Security Bridge” and “Police Is Your Friend” discussions is because: “I see Nigerians talking about the police negatively. I see the police angry about the way they are being treated. I see them trying to see how they can be part of society and I see the society pushing them away (because of mistrust and corruption in the police force). The idea is to get the public to know them (the police). When you come up close and personal, you limit his greed, her greed.” Today, the Commissioner of Police is doing a dinner with Arakpe and gang at the Officers Mess, all to build strong alliances for good.

BUSINESS DAY

Thursday 27 December 2018

Investing in Rivers State

Why we drag Rivers guber candidates to debate chambers – REIF boss • Bobmanuel: Gov Wike has done very well but we are Oliver Twist In 2015, the Rivers Entrepreneurs and Investors Forum (REIF) held what as adjudged the best political debate in Nigeria in Port Harcourt for PDP’s Nyesom Wike and APC’s Dakuku Peterside. Wike won the elections. Now, REIF is set to do it again. In this exclusive interview, the president of REIF, IBIFIRI BOBMANUEL, tells IGNATUS CHUKWU why the investors plan to drag the candidates into a hot room in the coming weeks. Why is REIF striving for a debate in Rivers State? ll what I have been saying points to why we should be interested in a debate. We cannot afford to leave governance to the politicians. We cannot afford to leave the process that bequeaths governance to just the politicians because the politician will come and leave but our businesses must live forever regardless of the nomenclature of the individual that comes. You only have a governor four of eight years. When some other person comes, there is the tendency for policy shift, but who bears the cost of that shift, our business. We have businesses that have stayed in Rivers State for over 40 years. Most of them almost came to extinction before REIF came into existence. We met with them, followed through the issues and got them to the point where they would meet either the state FG to see how they would see things differently. We were not afraid of confronting government. For instance, we had issue with the NLNG when they came up with dry port project. We confronted them because they did a road show in Lagos without PH. We said it was wrong and took them on. They saw we had a very clear case and did the right thing by doing a road show in PH and gave the investors here an opportunity. For that reason, you find out that more investors would have some degree of confidence in staying back because a whole lot of them were leaving. We had to rally the investors to one platform and it is growing in leaps and bounds. We now see our collective interests and goals in driving our businesses from where it is and where it should be. There is a new lease of life, and businesses are growing. Even the new leaders have realized this. In the past, people would ask you how much would you give them, but you now know that there is a group called Investors Forum who would confront you on policies on investment. You now see politicians aspiring into offices going round seeking the opinions of policy and economic experts because they will come to a debate organized by the private sector. In that debate, they would ask you this very salient question; your policy on investments. That debate has always been transparent because that is the hallmark. If we don’t get it right, we are gong to be the first losers, if it boomerangs. Our businesses are at stake. We would take

Ibifiri Bobmanuel

the first fall if the economy crashed. That is the philosophy which is to drive growth in the informal sector of the region. How have been able to control the politicians because the first thing they do is to dump money at you and control you, but REIF is saying no to their money? The way REIF is structured, nobody can afford to take a penny from a politician, not even me as the president of REIF. I can’t take a dime because I would immediately get a backlash. REIF is structured in a way that the system will revolt against you if you dared it. As we speak, I will be the last person to ask for kobo from any of the parties. If a political party decides to buy tractors which I manufacture, obviously, my responsibility is to sell and theirs is to buy. That way, they are driving the economy of the state. But, none of them has bought a tractor from my plant, anyway. If the FG decides to give contract to a member of REIF (they have been giving contracts to them even before the formation of REIF), and you decide to use that to bargain, it will not work. In not doing that, it makes us independent. Every item that we carry out, about 10 different programmes that we fund per year, we have not taken a kobo in the past seven years of our existence. Even if government proposes to fund us, we turn them down because the way it is structured, REIF would be able to take care of its affairs. We are made up of different business owners. All the business gurus are somehow connected. We take contributions

from business owners. The debate we want to stage, 100 per cent of the funds would come from members, development partners, and the public. Our members include the Ikoku spare parts association, Timber Market, Aba Traders, the Town Market, the Mile One Market, all of that on the SME level. The number affiliated with REIF is running into hundreds of thousands of people indirectly linked to us. In the unions, they have interests and we have a way we interface with them. On the major businesses, we have a board that scrutinizes what we want to do, and if it is worth it, we will all agree and chip in resources. So, we do not need funds from any Government, else, the aims of REIF would be defeated. The first debate took place some four years ago, are there things you can say that debate achieved in terms of items executed; how far were they implemented? Oh, I have not been asked this question since the four years and BusinessDay is the first to ask this. To avoid giving advantage to the party on ground but you cant take away credit from whom it is due. The present governor promised he was going to open the courts that were closed for almost one year, and he did. We came out with a communiqué after the debate and one of it is that whoever won should open the courts immediately. The fact of that closure had foreclosed litigations and ventilation of anger. That had a spiral effect on crime upsurge. People were resorting to self-help. Immediately he was sworn

in, he went straight to the courts on a Sunday and opened them. Two, we made it a point that whoever won should make it humanly possible to see that the seaports would work, especially the old Port Harcourt port. He promised to fix the road, and did it. He interfaced with companies and they came together and fixed the road. That was the first road to be fixed on assumption. Three; our members in the various markets, we talked about creating new markets and rebuilding the markets. We did a case study with Oil Mill Market, Mile One Market, and the Fruit Garden Market. Mile One Market is almost completed, Fruit Garden Market has started after fire disaster; Oil Mile is pending. In talking about the seaports, immediately he came and fixed the Reclamation Road, he set up a committee that worked on the Onne Road and that was done. We can keep naming them. What about taxes? To the best of my knowledge, that is still a long way to go. They have tried to reduce amounts that we are exposed to. We still think they have to do more. The fact that the state government and the local councils will still be running around looking for taxes is still worrisome. One local council boss had to be fired. He hired people to go about harassing businesses. That he was fired does not mean that the system is right. We still think there is a lot of work to be done in the tax regime. Government is a continuum and as I said, we will keep demanding for a better deal. That is why we are private sector because when the policy gets better, we employ more people and they pay more taxes. This debate will be another opportunity to sit down and discuss more issues. From an investment and infrastructure point of view, I think the present governor has done what he promised. We give him a lot of kudos but we request even more from him. More is at stake. The gap between the developed and undeveloped communities in the world is so much. Nigeria is a country with the poorest people. You cannot afford to take credit at this point because the work has not even started. We need to do more. For us, we are here to push them to do more, and there is no better way than through the debate that sets the platform for them to come clean. Now, if you want to come out for governor, the question is, what are your antecedents? Okay, we have one candidate that is governor

already and has been tested. We have the other ones that have not had the opportunity. So, we want to know where are you coming from, can we marry what you do with what you want to do, and what do you want to do, is it possible, is it plausible? Many run around wanting to be glover, but we ask, what do you want to do, what have you done before, how do you intend to do it, can we afford to entrust our collective future onto your hands, have you been truthful in your dealings, have you been truthful in your private sector work because you cant give what you don’t have? If we can have the right set of leaders in Rivers State, we can run in leaps and bounds. The man on seat at the moment is developing the state but we still need more. We need him to roll up his sleeves and work harder. People say they have not seen the economic blueprint of this governor; since you come from the private sector, have you seen this blueprint and do you understand it? Eh, eh, eh, what we know is the communiqué we issued, or do you mean his manifesto? What we can relate with is the communiqué we issued and it can be seen as a blueprint. If it is followed by these indices that I mentioned, then the administration has scored very high in some parts, in some parts the government has to improve. But, you do not do full assessment of an administration in just four years. As voters, we are Oliver Twist because the gap between where we are and where we need to be is very high. That is why we want to discuss with them, a transparent process where we sit down and discuss this dispassionately. What is your message to members of the public looking forward to this debate? Gone are the days of selling your votes, else, you regret it all your life. If somebody gives you a bag of rice to vote him in, he will get it back somehow. We can’t afford to sell our votes. All votes must count. That is why in this whole process, we draw everyone we can string in; the international community, electoral umpire, observers, the military, everybody. Rivers State is going to be a taste case of how elections should be how they should be. We will monitor it in such a way that it will be impossible to rig. Our backs are already on the wall as a business community. If we can’t get it right, it means our businesses are going under. We cannot afford to toy with it.

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Thursday 27 December 2018

INTERVIEW Buhari plans to rig the 2019 election because he has failed – Buba Galadima Veteran politician and chairman of the Reformed All Progressives Congress (R-APC), Buba Galadima, again alleges that the President Muhammadu Buhari administration is planning to rig the 2019 elections because most Nigerians have rejected the President and his ruling All Progressives Congress (APC). In this Interview with INNOCENT ODOH, OWEDE AGBAJILEKE and JAMES KWEN, Galadima stresses that Buhari has no competence and no idea on how to run a diverse country like Nigeria adding that Buhari’s touted integrity has collapsed because of massive corruption in his government coupled with his poor handling of the economy. Excerpts:

of the people. Every inch of Nigeria is represented by somebody in the Chambers of the National Assembly and they kept on saying you are lying to his face but because he is not a democrat he cannot understand but that is part of parliamentary decorum. Just watch the BBC and see how the British Parliament is functioning. The Prime Minister is being told to her face “you are lying” but because the man is a dictator, he will always be a dictator. He feels that he is above those questioning what he was doing. But he was talking absolute trash and absolute lies, things that do not exist. And these are the people that coming from those areas are telling you that it is a lie. If I were him when I go back I will summon all those that brought those things to confirm to me or to show me that really they did not deceive me to go and tell lies in the public. I also heard that they are trying to arrest those lawmakers shouting at him. I think nobody in that Villa has his head correct! If their heads are correct they cannot attempt to arrest any lawmaker. But that’s a very strong allegation Is it an allegation? If your head is correct would you ever attempt or think of arresting a lawmaker for shouting on a President who told lies before them? I said level playing ground, is because the

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If I were him when I go back I will summon all those that brought those things to confirm to me or to show me that really they did not deceive me to go and tell lies in the public

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Talking about the 2019 general elections, you have appeared severally talking about the chances of the opposition, especially about the candidate of the People’s Democratic Party (PDP) Atiku Abubakar to take over power from the incumbent President Muhammadu Buhari. What makes you think that this is a possibility? t is absolute possibility provided there is a free, fair, transparent and level playing ground for the elections in 2019. But I must add quickly that this government has no intention whatsoever of conducting a free and fair election and I can give reasons. One, they know is of fact that they have not put anything on the table for the people of Nigeria. Two, Nigeria is today worse than when they found it in 2015. Three, nobody, nobody, nobody including those that had worked with General Buhari for 15 years before his becoming President would say they are satisfied with his performance in the containment of security, job provision, inclusiveness of the people of Nigeria. He (Buhari) performed poorly in all facets of human endeavours. Therefore, he has nothing to show anywhere, except in one zone of the country where it could be said that he has done something or put something on the table for the people of that zone. So, I believe that five zones of this country, even including that one, would vote him out massively and overwhelmingly and don’t ask me how because I have already told you that he has not performed, he has not done anything tangibly that you will see. This is what now manifested during the budget presentation in the National Assembly. People were shouting. They said it was Peoples Democratic Party. No! once you entered the two Chambers of the National Assembly, it doesn’t matter on which platform or the party you are elected, you are working for the good of the people of Nigeria not your party but what he (Buhari) failed to understand was that he was reading lies from a prepared speech and this is why he cannot continue as President of Nigeria again. They just wrote lies to him, he came and was mentioning projects that he has carried out in certain places. These are representatives

Buba Galadima

man knows he is going to lose election and his people said it even yesterday at 3 am this morning. I was with one of his close aides and he told me that Buhari will come back and I said how, are people not going to vote and he said, well as PDP did, they will also write the results. Do unto others as you like others do unto you. If Buhari is a statesman even if PDP as alleged has done what they said they have done, he is a statesman, former Head of State, who knows Nigeria he should not try to do what is wrong. After all, he had promised time without number that when he becomes President he will strengthen institutions of government namely, INEC, ICPC, EFCC, Police, Military and what not to do what is right. Is it what he is doing? Are you satisfied? Are you going to vote for him gentlemen? Tell me, are you going to vote for him? You said you are sure Buhari is going to lose this election, what’s the basis for this? I said provided there is a level playing ground. He has already decimated one of the indices of making elections correct by refusing to sign the Electoral Act for the fear that to strengthen the Electoral Act of 2018 will stop his people from rigging and they are urging him that “once you sign that is your death warrant” and I challenge him if he is a man, if he is a General that he is called, let

him sign the Electoral Act. INEC has already said that despite the President’s rejection it will still go ahead and conduct the 2019 election with the Card Reader and that is one of the major concerns of the PDP, don’t you think that...(Cuts in) That is nonsense! Who fought for the Card Reader? I want to beat my chest and say I brought the Card Reader, forced the Card Reader on Nigerians. If you are a student of history you would have known that nobody has spoken about the Card Reader more than myself. You are not going back to the archives. They can use the Card Reader but you cannot tender the Card Reader in Court for authentication by Judges whether what you are alleging is true or false so, is like non - existent. The issue is to make the Card Reader justiciable. Not many Nigerians really understand and there were certain elements of the Electoral Act which were agreed tripartite bodies of the office of the Attorney - General, representing the Executive, INEC and the Legislature. They sat down to work on that Electoral Act and INEC was working according to what they were putting in the Electoral Act. They are ready for everything that was in that Electoral Act, so why did he torpedo it? Because some persons from Kaduna and Borno

and others came to him and said if you lose election, you are a former President they will allow you to go and settle in Daura or Kaduna peacefully, but the PDP will slaughter us. Who are they? It means they have done something wrong. What are they afraid of? Buhari has been touted as a man of integrity and...(Cuts in) Where is the integrity? Show me your friends and I will tell you who you are. He is with Abba Kyari, he is with Babachir, he is with Akpabio, he is with Uduaghan, he is with every crook, every murderer in Nigeria is surrounding him. But there are those like Kano State Governor Abullahi Ganduje who have promised to give Buhari five million votes. How do you react to this? Thank you for reminding me of Ganduje. You are just reminding me that Buhari will not conduct elections but they will write the figures. He knows and I know and everybody here knows that every Nigerian has one vote. Where will Ganduje get the five million votes to donate to Buhari? It means it is donation not election. What does the Electoral Act say or the constitution; one man, one vote. But Ganduje is one man five million votes. Where did he get the five million votes from Kano from 3.5 registered voters? So, it means there will be no election. If Buhari is a man of integrity, he should never be associated with people like Ganduje, like his candidate in Imo, Hope Uzodinma and other people. They shouldn’t be his candidates. Can Buhari now come and tell me what his government did with the school feeding? Are they feeding any student in your village? Tell me, N-Power who and who are benefiting? Let them publish the list of beneficiaries of N-Power, local government by local government. You will see how nepotistic Buhari’s government is. After all less than ten percent of those they claim are benefiting from N-Power, they are just stealing the money. Trader Moni, who budgeted for that money? You just bring $300 million and share among your friends, political party and use it for election and you want Nigerians like us and intelligent people to believe you? They will account for that money. Where is the money missing

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Where is he getting the money to service debts, let alone to grow the economy? The man has no idea about what is called the economy

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in NEMA? If Buhari is a man of integrity, let him probe them. That is when we will know that he has integrity. It is not rhetoric. I can talk from morning till evening, does that make me an honest man? You can only see honesty in me from the way I speak to you, looking at you eyeball to eyeball. You can see me from my environment. Look at my house. I was everything: Director of Delta Steel Company two years, Director Ajeokuta Steel Company two years, Director of two banks, Director of an insurance company. I was Maiduguri town Engineer; I was Maiduguri area engineer, Project Engineer/ Secretary Schools Building Committee Rivers State. In 1975 I managed an account of N300 million, equivalent of 500 million United States Dollars. Yet, I live in boys quarter, two-bedroom. If you are looking for honesty, I am more honest than Buhari. And let’s come to debate, me and him. The South West geopolitical zone is depending on political gladiators like Bola Tinubu, Fayemi and others to generate votes from that region for Buhari. How will PDP handle that? You mean to steal votes for them? They are not generating any vote. Nobody has the honour and integrity to follow them from the South West. The people of the South West are very intelligent and good people; they know what is good for them and what is good for Nigeria. They always stand for what is best for Nigeria. How optimistic are you of the South West voting for the PDP, knowing full well that there are complaints in some quarters that PDP did not give the slot of vice presidential candidate to the zone? What did the constitution say? The Vice Presidential Candidate can come from anywhere. It is left for Nigerians to vote for him. There are candidates from all over Nigeria. That is democracy. It is because you don’t know democracy; you don’t know your rights. It is the strategy of a political party to win election. Maybe they zoned that to the South East to consolidate what they have. I wasn’t a member of the caucus that picked the (PDP) Vice Presidential candidate (Peter Obi). Maybe that is their thinking. And I hope it works out well for them. I hope the South East

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reciprocates the gesture done to them. The issue of Coalition of United Political Parties (CUPP) and your former party, the Reformed All Progressives Congress RAPC... (Cuts in) It is not my former party. I am still R-APC. When they lose election with crooks like Adams Oshiomhole, they will all run back to the PDP. So we will go back, pick the pieces and form a formidable force to checkmate Atiku as President. I am still R-APC Chairman. But Buhari is incompetent; he has no idea about governing a plural society like Nigeria. So he has to go. What strength can the CUPP garner for the Atiku Presidency? You mean that your vote does not count? Every vote is important. We are about 60 political parties in CUPP. Somebody can win election with one vote. And they may have families. Even though they will not force their families, you will assume that at least one member of any of the CUPP members may bring one or two people from their families. That is good for us. We don’t intend to write results. That is why every votes count for us. It is them that want to write votes. Are they campaigning? Today, Amaechi wrote an organogram and populated it with people. And he started announcing his subordinates. Buhari phoned him to stop because some in the Villa told Buhari that Amaechi is trying to take over and build himself as the next president of Nigeria.

Amaechi carried everything for his approval on his desk. Today, getting to three months, he has not signed. Some have condemned PDP lawmakers for booing the President at the 2019 budget presentation and that they should have accorded his office maximum respect. How will you react to that? Don’t worry. It is because they are not democrats. They are in the same school-of-thought with Buhari. They are dictators. If they know what democracy is all about, you can even pelt the President with water. You can pelt him. He is an ordinary Nigerian, one among equals. We elected him to serve us. He is not our master. What is your reaction to the latest unemployment figures by the National Bureau of Statistics (NBS) that 20.9 million Nig erians are unemployed? You have seen nothing. By January, February 2019, the economy will ground to a halt because the government cannot service debts. And let me say that from Lord Luggard to Jonathan, all the loans collected by these successive governments, is not one-half of what Buhari has committed Nigeria in the last three-and-half years. Where is he getting the money to service debts, let alone to grow the economy? The man has no idea about what is called the economy. In fact, the man looks at your face and gets annoyed. Where did you get the money to eat? Where did you get the money to buy clothes? Where did you get the money to buy good shoes? That is Buhari. We are not asking for poverty, we want every Nigerian to look better. Recently the President declined assent to the Electoral Act Amendment Bill. And calls by the PDP to its members to override the President’s veto did not yield any result. Why were PDP lawmakers unable to get the support of their colleagues in APC to do so? That is because those APC members are against Nigerians. They don’t believe in free and fair election. Anybody that joins that APC now is either a crook, a thief, murderer who has shortchanged Nigeria and is running there for protection or that he has been bought like donkey in an open market.

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Atiku to Buhari: Don’t blame Nigerian system for your failure Innocent Odoh, Abuja

ormer Vice President and presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, has advised President Muhammadu Buhari to stop blaming the Nigerian system for his failure to turn the fortunes of the country around. Atiku said this in a statement on Wednesday, saying President Buhari had failed in the much touted fight against corruption. Atiku said, “My attention has been drawn to a statement by President Muhammadu Buhari on the occasion of a Christmas homage paid on him by members of the Federal Capital Territory Community in which he blamed his inability to fight corruption on the Nigerian system.” According to the President, his administration is slow in fighting corruption because the system is slow. “My immediate response to this is to commend President Buhari for admitting that he has failed in fighting corruption. The President has just corroborated Transparency International, whose latest Corruption Perception Index shows that Nigeria is more corrupt today than it was under the previous administration, having moved 12 places backwards in the CPI, from 136 in 2014 to 148 this year.” Atiku stressed that his point of departure from the President was in blaming his failure on the system, saying, “I disagree. The system has challenges, yes, but where there is political will, the

system can make progress. “I was Vice President of Nigeria from 1999 to 2007 and we used that same system to speedily convict no less a personality than an Inspector General of Police, and several others including cabinet ministers and other high officials. Mr. President, the problem with your anticorruption war is not the system. You are the problem! “The system allows you to arrest, try and convict your former Secretary to the Government of the Federation, who was fingered in a major corruption case, but you chose to let him go Scot free and you demonstrated your tolerance for his corruption by giving him a prominent role in your re-election campaign and recently welcoming him to the Presidential Villa with open arms. “The system allows you to arrest, try and convict Abdulrasheed Maina, the biggest ever alleged thief in our civil service history, who is suspected of looting the pensions of millions of aged Nigerians. Yet you chose not to go that route, preferring instead to recall him, reinstate and double promote him while giving him armed guards to move about. “The system allows you to probe the $25 billion NNPC contracts awarded without due process, but you chose to bury the matter under the carpet, hoping the Nigerian people will forget about that grand scale alleged looting exposed by a leaked memo from a member of your cabinet,” Atiku told the President. The former Vice Presi-

dent also pointed out that nothing in the system stopped President Buhari from telling Nigerians who owned the billions found in an Ikoyi apartment. “Based on the above statement of facts, I will not allow you to make Nigeria the scapegoat for your failure. Your failure is personal, and not national. “If you could go abroad to insult Nigerian youths as lazy, why did you go to Paris to praise a governor who was caught red-handed receiving bribes on camera? “The system did not stop the EFCC from charging the opposition Governor of Akwa Ibom, Mr. Udom Emmanuel, as a co-accused in the case involving the NBA chairman, Mr. Paul Usoro. Contrast this with the treatment meted out to Governor Umar Ganduje of the ruling All Progressives Congress. “Besides, your excuse is deceptive, because you have staunchly resisted restructuring. If you really believed that the system is the problem, you would have embraced restructuring. “Unfortunate as your admitted failure in the war on corruption is, it is your economic policy that is the greater failure. Your lack of ideas and your politicisation of the corruption war have made your administration fight legitimate businesses and the opposition. “I might add that it is actions such as this that have led to an unprecedented capital flight, which has caused joblessness and made Nigeria the world headquarters for extreme poverty under your watch,” Atiku said.

Mortality: 25% of pregnant women are at high risk - ARFH

EO of the Association for Reproductive and Family Health (ARFH), Oladipo Ladipo, says 25 percent of Nigerian pregnant women are at high risk. Ladipo, who is also the president of the association, disclosed this in an interview with the News Agency of Nigeria on Wednesday in Abuja. According to Ladipo, too many pregnancies, that is, having more than four children is associated with high risk of death. “Having too many pregnancies too closely spaced is not the best. Pregnancies should be spaced between

two and a half years or three. “Pregnancy before the age of 18 and pregnancies above the age of 35 years is associated with major complications especially hypertension,” he said. However, Ladipo called for the abolition of child marriage and as well encouraging girls to go to school to guard against starting reproduction before age 18. The CEO advised women to be contented with having three or maximum four children likewise the men irrespective of gender or sex. He, however, frowned at the discrimination between the female and male children in Nigeria adding that male

children were prized than the female describing the culture as wrong. Every child should be a wanted child, every child is indeed a gift from God and they all have a potential to contribute to overall development of the nation if given the opportunity, he said. He wondered why a woman would be looking for a male or female child just because she had four children of same sex. “She should be contented with four daughters or sons because the next pregnancy may be the last she will have, she may die of fifth or sixth pregnancies,” he warned.

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Lack of continuity in government policies fuels policy implementation failure ISRAEL ODUBOLA

igeria vis-à-vis other developing nations shares a common characteristic of poor implementation of public policies. Policy implementation failure is undoubtedly a threat to sustainable development. Going by World Bank latest report on Country Policy and Institutional Assessment for Africa (CPIA), an annual diagnostic tool that assesses the quality of policies and institutional framework as well as their ability to support sustainable growth and poverty reduction, Nigeria scored 3.2 out of a maximum score of 6.0 in its Overall CPIA index. As a matter of fact, Nigeria’s CPIA index is lower than the regional average for West Afri-

can countries, which stood at 3.31, the data show. Landry Signe, a Fellow at Stanford University Centre for African Studies, recently stated that deeply-rooted corruption in public bureaucracy, lack of continuity in government policies and deficient human and material resources cause implementation gap (i.e. widening gap between stated policy goals and the realisation of such planned goals) among African countries. Gbenga Ojewoye, a political economist, told BusinessDay, “Government policies fail because they are ‘clustered-concept,’ that is they are good on paper, but poor to implement. “Lack of continuity in government policies has always been the bane of policy implementation in Nigeria.

The problem is that every administration that is in power comes up with a new policy initiative instead of building previous ones. “Since 1976, many public policies designed by the government have not lived up to desired expectation. Some literally died as a result of poor management, paucity of funds and a host of other factors, and the few existing ones are struggling to achieve their purpose.” Despite how the National Economic Empowerment and Development Strategy (NEEDS) was beautifully crafted by the Obasanjo’s administration in 2004 to resolve the country’s developmental challenges through generation of job opportunities, creation of wealth, poverty reduction and reorientation of values, the Late Yar’Adua administration dumped the NEEDS policy for

seven-point agenda. The Presidential Special Scholarship Scheme (PRESSID) established by the Jonathan-led administration, which aimed to sponsor outstanding students for postgraduate studies in any of the best 25 universities in the world, was scrapped by the current administration, claiming dearth of funds to run the programme. Yet again, the Subsidy Reinvestment and Empowerment Programme, popularly known as SURE-P, launched in 2012, with the goal of providing job opportunities for unemployed graduates in order to alleviate the impact of the partial petroleum subsidy removal on the populace, was quashed by the Buhari-led administration because of widely perceived irregularities in its operational process. L-R: Cecilia Ibru, co-founder, Michael and Cecilia Ibru University (MCIU) Agbarha-Otor Delta State; Moses Taiga, president general, Urhobo Progressive Union, and Ignatius V. Edema, at the Ibru’s 2018 Christmas get-together in Lagos.

NNPC records trading surplus of N9.85bn on account of less pipeline vandalism OLUSOLA BELLO & HARRISON EDEH

he reduction in the level of vandalism of crude oil pipelines in Niger Delta region, which has also led to resumption of crude oil lifting at Forcados Terminal, raised the revenue profile of the Nigerian National Petroleum Corporation (NNPC) from a deficit of $3.90 billion to a surplus of $9.85 billion. The Corporation traded surplus of N9.85 billion for the month of September 2018, as against the previous months figure which in deficit of N3.90 billion. Details of the report, which is contained in the newly released September 2018 edition of the NNPC Monthly Financial and Operations Report, indicated that the improved performance of N13.75 billion increase, relative to that of August 2018, is attributable

to higher revenue by the Nigerian Petroleum Development Company (NPDC), the corporation’s upstream subsidiary. Ndu Ughamadu, group general manager, group public affairs, in statement, said NPDC’s production had been on the rise as a result of success recorded in repairs of vandalised pipeline in the Niger Delta and the resumption of crude oil lifting activities at Forcados Terminal. According to the statement, a total crude oil and gas export sale of $626.62 million was made in September 2018 under the NNPC’s US dollar transactions, which is 33.32 percent higher than the previous month. It stated that crude oil export sales contributed $508.54 million, which is 81.16 percent of the dollar transactions compared with $337.62 million contribution in the previous month.

It also said export gas sales amounted to $118.08 million in the month, adding that the September 2017 to September 2018 crude oil and gas transactions indicated that crude oil and gas worth $5.45 billion was exported. In the downstream sector, the report noted that during the period, NNPC continued to ensure increased petrol supply and effective distribution across the country, saying that during the month, 1.66billion litres of petrol, translating to 55.50 million litres/day, were supplied by the corporation. It also stated that in the month under review, a total of 125 pipeline points were vandalised; out of which eight pipeline points failed to be welded and only one pipeline point was ruptured. The figure translates to a significant increase from the 86 vandalised points recorded last month.

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Thursday 27 December 2018

$2.8m: EFCC files motion for interim forfeiture INNOCENT ODOH, Abuja

conomic and Financial Crimes Commission, EFCC, Enugu Zonal Office, has filed a motion for interim forfeiture of $2.8 million, before a Federal High Court, Enugu State. This was disclosed in a statement issued on Monday by the acting spokesman of the commission, Tony Orilade, stressing that also filed was an affidavit of urgency for the matter to be heard on December 27, 2018, before a vacation Judge sitting in Port Harcourt. Recall that the Commission had on Thursday, December 20, 2018, intercepted the said money based on intelligence report from two persons: Ighoh Augustine and Ezekwe Emmanuel suspected to be money laun-

derers, at Akanu Ibiam International Airport, Enugu. The suspects had confessed during interrogation that they have been in the business of moving cash for “some notable banks,” for over six years and were in the process of doing same for Union Bank Plc, located at New Market, Onitsha, Anambra State, before their arrest. They allegedly worked for a company: Bankers Warehouse. At the time of filing this report, the alleged owner of the money (Union Bank) had not made any physical presence in any of the Commission’s offices, including the Enugu office, to establish their claim, the statement said. Efforts are being made to secure warrant for their detention of the suspects pending when they will be charged to court.

Boxing Day: Edo urges love, support, unity among Nigerians

overnor Godwin Obaseki of Edo State has urged Nigerians to spread love and support for one another to deepen unity in the country, noting that only the feeling of oneness will help Nigeria survive hard times. Obaseki made the call in commemoration of Boxing Day, celebrated on December 26, every year. He said, “On behalf of the Edo State Government, I send my heartfelt greetings and best wishes to everyone as we celebrate boxing day. I urge Nigerians to use the occasion to reflect on the import of sharing and extending a hand of love and support to neighbours and acquaintances.”

The governor said Boxing Day “is a good opportunity to exchange gifts with loved ones as well as those in need; those living in orphanages, in prisons, hospitals, and in the Internally Displaced Persons’ camps in the state.” He prayed “that the celebration will continue to foster love and unity among us all regardless of our cultural differences, creed, faith or social class. “Celebrations like this reminds us that it is only through sharing of gifts and other forms of support that we can successfully build a united nation for the benefit everyone. May the spirit of the celebration remain with us even after the season.”

Edo takes campaign against gender-based violence to grassroots

do State government has mobilised women at the grassroots across the state to lend their voices against gender-based violence, urging them to speak up against the menace. Speaking during a rally organised by the Ministry of Women Affairs and Social Development, held in Oria, Esan South East Local Government Area, commissioner for Women Affairs and Social Development, Magdalene Ohenhen, said the charge was necessary to ensure that the vulnerable in the society would be assured that there were structures available to protect them. She said the rally was organised by the Ministry as part of activities lined up for the 2018 International Day for the Elimination of Violence against Women, themed ‘Hear Me Too.’ Participants at the rally included chairpersons and

presiding officers of the Ministry in the different local government areas. The commissioner noted that the time had come for women who are victims of gender-based violence to come out of the closet and stop suffering in silence. She said women must speak up because chances were that remaining silent might prove too costly. “We have observed that

CHANGE OF NAME

I, formerly known and addressed as Moradeyo Atinuke Laseinde now wish to be known and addressed as Moradeyo Atinuke Adeniyi. All former documents remain valid. General Public please take note.

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I, formerly known and addressed as Awosika Tosin Motilayo now wish to be known and addressed as Adedoyin Oluwatosin Motilayo Awosika. All former documents remain valid. General Public please take note.

some women don’t like to speak out. We also know that there are dangers in not speaking out because we have seen cases of death being recorded as a result of women not speaking out. We are no longer going to encourage or tolerate that. That is why we came out today with women across the state to deliberate on the way forward,” Ohenhen said.

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This is to inform the general public that Nafiu Allarama Dahiru and Nafiu Dahiru refers to same and one person. All former documents bearing any of the two names remain valid. General public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Uwaiye Deborah Bose now wish to be known and addressed as Mrs. Awopeju Deborah Bose. All former documents remain valid. Bank & General Public please take note.

Thursday 27 December 2018

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NEWS FG’s agricultural investments fail to show in... Continued from page 1

compared to an average of four percent prior to the exit, as oil sector gains momentum on increasing production and a rise in global crude oil prices. In full year 2016, the same year the country entered recession, growth in the agricultural

sector stood at 4.11 percent, a 0.39 percentage point increase from the 3.72 percentage growth recorded in 2015. This growth however saw a decline to 3.45 percent in 2017. Data from the National Bureau of Statistics show that growth in the agricultural sector was up 1.91 percent in third quarter of 2018, after falling for three consecutive quarters, recording its lowest performance since 2015 in third quarter of 2018 at 1.19 percent. Similarly, the value of agricultural goods export in third quarter 2018 was 47.2 percent lower than second quarter 2018 but 57.18 percent higher the value in the same period last year, according to NBS data on foreign trade statistics. However, the value of imported agricultural products in third 2018 was largely unchanged compared to the value recorded in the second quarter, but 3.10 percent lower the amount a year earlier.

Nigeria’s top agricultural exports in the third quarter were Cashew nuts which brought in N9.85 billion, followed by Sesamum seeds (N9.0 billion) and Superior quality raw cocoa beans which brought in N7.6 billion. As a percentage of total exports earnings, agriculture accounted for just 0.93 percent of export earnings and 5.38 percent of import cost in the third quarter of 2018. As a percentage of exports, the share of agriculture has remained largely below two percent since 2015 despite the government’s push for Nigerians to adopt agriculture, which is the main stay of the economy. Sources in the agricultural sector say this mainly so because the government has emphasized farming for consumption rather than for exports. “Most of our agricultural produce are no longer admitted into the economies of many western countries of the world due to lack of standardisation of such produce as Nigeria is yet to adopt the appropriate standards that will enable it meet global standard, which may serve as a constraining factor”, Johnson Chukwu, CEO Cowry Asset management limited. “Also the growth of 1.91 percent can be attributed to several other sectors among which is the flooding

we had in most parts of the country, the displacement of farmers in the northeast which is now spreading to the northwest and the north central which has contributed to the slow growth of the agricultural sector despite government’s presumed supports for the sector,” Chukwu noted. The Nigeria’s agricultural sector employs the highest number of the labour force, according to recent NBS data, yet it contributed only 29 percent of the GDP figure in Q3 2018. “This shows that productivity is low hence needs to be unlocked”,said Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers. Total imports of agricultural products from January to September of 2018 was N633 billion according to NBS data. This is slightly below the N887 billion spent on agricultural imports in 2017, an indication that the country is on track to meet the 2018 spend on agriculture. Economic policies formulated by the Buhari administration which were having positive impact initially are gradually losing grip as the sector is still confronted with several bottlenecks. These range from insecurity, poor storage facilities, poor road networks, insufficient funding, and weaker demand for agricultural produce. Sources have also told BusinessDay the government talk about agriculture

L-R: Kennedy Udeabgala, commander, 1 Brigade of the Nigerian Army, Gusau; Samson Akpasa, Air Officer Commanding Operation’s Command; Sadeeq Abubukar, chief of Air Staff; Abdullahi Shinkafi, secretary to the state government, and Bello Dankande, commissioner for local government and chieftain affairs, during the Chief of Air Staff visit to Zamfara State over insecurity challenges, yesterday. NAN

Closure of P&G $300m Agbara plant mirrors... Continued from page 1

the company had to shut down its Agbara plant due to high production cost incurred at the plant. Agbara is notorious for its poor road network and multiplicity of taxes. This is however not peculiar to Agbara but is also a cog in the wheel of many industrial zones in the country. Tax experts told BusinessDay that the number of taxes payable by businesses across the country is now 54 as against 37 in 2014. Vivian Chigozie-Nmonwu, tax expert and lead partner at Vi-M Professional Solution, said these taxes need to beamalgamatedintooneorafew,since the whole tax cycle is a multiple chain of taxes on the same income stream. Forty percent of manufacturing expenditure goes to alternative energy. Manufacturers have spent N212.85 billion on alternative energy sources between the second half of 2016 and the first half of 2018, according to data from the Manufacturers Association of Nigeria (MAN). This is over 100 percent higher than what was incurred in the previous four halves. Manufacturers told BusinessDay that logistics costs haverisenby50to100percentinthelast two years, owing to poor state of roads

and lack of a good transport system. Firms bringing in raw materials into Apapa ports and those exporting commodities abroad have seen their costs swell on rising dwell time, which results in high demurrage charges. Only 10 percent of cargoes are cleared within the set timeline of 48 hours now while the majority of cargoes take between five and 14 days to clear, according to a maritime report conducted by the Lagos Chamber of Commerce and Industry (LCCI).The report notes that some cargoes take as many as 20 days to be cleared at the ports. Tola Faseru, president of the National Cashew Association of Nigeria, told BusinessDay that exporters shipping out 1,700 tons of cashew per day in 2014 now manage to ship between 100 and 250 tons. A reduction in export and sales increases cost per unit of product and raises inventory. The combined administrative and distribution expenses of 24 largest manufacturers quoted on the floor of the Nigerian Stock Exchange (NSE) were up 7.59 percent to N196.61 billion between September 2017 and 2018. Manufacturers were unable to sell goods worth N149.23 billion in

the first half of 2018 after producing goods worth N4.6 trillion. Manufacturers are also not finding borrowing easy as interest rate charged by banks in the first half of 2018 stood at 22.9 percent, 0.25 percentage point higher than 22.65 percent recorded in the same half of 2017. “High cost of borrowing also persisted as a major challenge to the manufacturing sector,” MAN said, urging the government to recapitalise the Bank of Industry and Bank of Agriculture to improve lending. It is not all gloom and doom for the sector, however. The CBN’s Manufacturing Purchasing Index (PMI) has been on the rise since January, hitting 57.9 percent in November while the FX market has been stable. Real GDP growth in the manufacturing sector in the third of 2018 was 1.92 percent (year on year), higher than the same quarter of 2017 and the preceding quarter by 4.78 percent points and 1.24 percent respectively. Real contribution to GDP in 2018 third quarter was 8.84 percent. Many firms in industries such as metals, food &beverages, leather & footwear, vanishes and ink, among others, have pioneer status today, but age-old problems are yet to disappear.

has not been matched with action. The government has made little or no effort to improve the seedlings for farmers while extension services for farmers is still almost absent in many rural areas. This means that actual farming practices has not changed much. Despite various initiatives set up by the CBN, including the anchor borrower scheme and commercial agricultural credit scheme, the impact on the agricultural sector has not really been pronounced due to structural barriers like hindering productivity, says Ologunro. “For us to feel the impact of these funding/ investments in the sector, the fiscal sector needs to complement with the monetary activities for us to be able to unlock productivity in that space”, Ologunro told BusinessDay. On November 2015, CBN on behalf of the government flagged off the Anchor Borrowers Programme (ABP), aimed at providing farm inputs in kind and cash (for farm labour) to smallholder farmers to boost production of their commodities, and generate millions of jobs for unemployed Nigerians.

“Since the commencement of the (Anchor Borrowers) Programme in November 2015, we have disbursed over N100 billion to more than 800,000 smallholder farmers in the rural communities in Nigeria that require less than N250, 000 to cultivate one hectare of land and who never had access to finance,” Godwin Emefiele, the central bank governor said on the side-lines of a two-day Nigeria Investment Conference organised by CFA Society Nigeria. Similarly, the Presidential Fertilizer Initiative (PFI) was also launched in December 2016 as an outcome of a partnership between the Governments of Nigeria and Morocco, to achieve a local production of one million metric tonnes of blended Nitrogen, Phosphorous and Potassium (NPK) Fertilizer for the 2017 wet season farming and an additional 500,000 metric tonnes for the dry season. The Youth Farm Lab (YFL), the Presidential Economic Diversification Initiative (PEDI), and the Food Security Council (FSC) amongst others, are also part of the programmes developed by the current administration to give a facelift to the agricultural space.

MTN to focus on Nigerian IPO after settling... Continued from page 2

ExchangebyAugust2018andhadgone ahead to appoint advisers to the issue. MTNpickedChapelHillDenhamas leadmanager,whileSouthAfrica’sRand Merchant Bank, Renaissance Capital and Vetiva Capital were chosen as joint issuers. But the CBN sanctions, which if implemented could have grounded the company’s operations in the country, forced a postponement of all talks about the listing. Sources close to MTN have toldBusinessDaythatnowthatthe CBN issue has been resolved, MTN would now revive the listing process. But the expectation is that any listing may only take place after the 2019 elections and most likely in the third quarter of 2019. MTNhadin2017agreedtolistitsNigeriansubsidiary,aspartofasettlement with the Nigerian government over unregistered SIM cards for which it was fined$1.7billion.Soitismandatedtogo ahead with the listing or the Nigerian Communications Commission (NCC) could intervene and force it to list. In July, the Securities and Exchange Commission (SEC), the apex regulator for Nigeria’s capital market, said that MTNwasyettofileapplicationforlisting with it. MTN is currently a privately held company and must also convert to a public limited company before filing an applicationwiththeSECforlistingonthe NSE. The resolution of its dispute with CBNpavesawayfortheprocesstobegin. In a statement issued by MTN on December 24, it announced that the MTN Group has reached an agreement with the CBN to resolved its US$8.1 billion dispute. MTN Group said on its twitter handle that it made a N19.2 billion ($53m) payment, and is “engaging with banks regarding the agreement.” Responding to the settlement reached, Bismarck Rewane, CEO of economics consulting firm Financial Derivatives Company (FDC) said it is a “very good development and will help repair part of the self-inflicted damage.” The CBN reached the agreement with MTN on the basis of new information received that shows no wrong was done by MTN regarding most of the repatriations, except for $1 billion involving repatriation of proceeds from a Private Placement it undertook, using improperly issued Certificate of Capital Importation or CCIs. “The CBN and MTNN have mutually agreed that the aforementioned transaction be reversed notionally to bring it into full compliance with foreign exchange laws and regulations. The parties have resolved that execution of the terms of the agreement will

lead to amicable disposal of the pending legal suit between the parties and final resolution of the matter,” Isaac Okorafor, Director, Corporate Communications, CBN said in a statement. “The CBN assures foreign investors that the integrity of the CCIs issued by authorized dealers remain sacrosanct. Potential investors are encouraged to take advantage of the enormous investment opportunities that abound within Nigeria.” BusinessDay learnt that the CBN does not typically review decisions it has made but decided to do so this time because it does not regulate MTN. The initial announcement from the CBNwasforMTNtorefund$8.1billion. “We are very comfortable with the fine and new agreement,” Pascal Dozie, Chairman of MTN Nigeria, told BusinessDay. Omotola Abimbola, a research analyst at Ecobank, said it is a good thing that both parties were able to reach a reasonable agreement. But he further explained that “perhaps the situation could have been better managed without having an impact on Nigeria’s investment attractiveness, because MTN is a global company and this issue went far and wide. So it has had an impact on investors’ perception towards Nigeria.” MTN however advised shareholders that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing. The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to 7 February 2019. “MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim. As a result of the above, shareholders are no longer required to exercise caution in dealing with the Company securities,” MTN said. “This is positive for Nigeria’s image abroad as well as MTN’s investors. We expect this to impact positively on its shares after the Christmas break. In addition, This will improve foreign investor confidence. MTN may begin talks on its listing initiative on the Nigerian bourse. Though, most of these activities may occur after the 2019 General Elections,” said Ayodeji Ebo, MD, Afrinvest Securities Limited.

Thursday 27 December 2018

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Commuters paid higher fares for bus, motorcycle in November 2018

ISRAEL ODUBOLA & SEGUN ADAMS

ommuters, on the average, paid higher transport fare on journey by bus (within and intercity) and motorcycle in November 2018 compared to the same month of the previous year, according to figures released by the National Bureau of Statistics (NBS). The transport fare report showed that the average fare paid by commuters for bus journey within city per constant route drop by 0.39 percent to N192.46 in November from N193.21 recorded in previous month. On a year-on-year basis, average transport fare across state for bus journey by 39.2 percent from N139.19 recorded in the corresponding month of previous year. States with the highest av-

… as average price of petrol, diesel rose erage price for bus journey within were Abuja (N395), Cross-River (N320) and Kebbi (N280), while Anambra (N110), Rivers (N110) and Bauchi (N100) recorded the lowest, according to NBS. Transport fare across states for intercity bus journey averaged N1, 790.14, indicating a 1.54 percent reduction from N1, 818.12 recorded in October, 2018. On a year-on-year basis, average fare paid by commuters for intercity bus journey jumped by 18.9 percent in November 2018, from N1, 505.00 obtained in the corresponding month of previous year. Abuja (N4, 500), Plateau (N3, 000) and Borno (N2, 850) emerged as the states with the highest average pric-

es for intercity bus journey in November 2018, while Enugu (N1, 200), Edo (N1, 150) and Abia (N1, 150) recorded the lowest average prices for bus journey intercity in the eleventh month of 2018. The average fare paid by commuters for journey by motorcycle went down by 6.03 percent to N121.76 in November 2018 from N129.56 in October 2018, and also climbed up by 25.8 percent from N96.77 recorded in November 2017. Ogun (N220), Ondo (N210) and Bayelsa (N200) were recorded the highest average price for journey by motorcycle, while average prices were low in Niger (N60), Zamfara (N60) and Adamawa (N50). According to the statistics

body, average price paid for petrol (premium motor spirit) grew by 0.2 percent (monthon-month) and 1.3 percent (year-on-year) to N147.5 in November 2018 compared to N145.6 recorded in same month of previous year. Highest and lowest average price paid for petrol were recorded Kebbi (N158.24) and Imo (N142.5), respectively. Similarly, average price paid for diesel (automotive gas oil) also went up by 0.1 percent (month-on-month) and 10.18 percent year-on-year to N219.54 in the month under review, compared to N201.96 recorded last year. Average price of diesel was maximal in Imo (N242.11) and minimal in Kaduna (N195.50), the statistics office disclosed.

L-R: Ganiyu Olanrewaju Solomon, assistant district governor, Rotary Club International; Babajide Sanwo-Olu, All Progressives Congress governorship candidate in Lagos State; Rukayat Ajibola-Bakare, deputy medical director, Gbagada General Hospital, and Tayo Lawal, medical director/CEO, during a Christmas visit to patients of the Hospital by Sanwo-Olu, in Gbagada Lagos

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Thursday 27 December 2018

Apapa: Truckers decry brutalisation, extortion by security operatives, area boys AMAKA ANAGOR-EWUZIE

ollowing the traumatic experiences from the lingering gridlock on the Lagos port access roads, truckers under the aegis of Containerised Truck Owners have cried out to the Federal and the Lagos State governments for urgent intervention. According to them, the persisting trauma experience by their members while on queue on roads and bridges leading to the ports, has proven to have serious comprise on the health of both their members and their vehicles. The association is a nascent amalgam of the Association of Maritime Truck Owners (AMATO) and the Container Truck Owners Association of Nigeria (COTOAN). In a communiqué dated December 14, 2018, and signed by Remi Ogungbemi and Wasiu Oloruntoyin, representing AMATO and COTOAN, respectively, seen by BusinessDay, the truckers stated: “We use this platform to plead with the Federal and Lagos State governments to as a matter of urgency look into our plight, which has resulted to untimely deaths of truck drivers; inability of the drivers on queue to bathe, eat, sleep and rest adequately; exposure of the truck drivers to regular harassment by area boys.” They said truckers on the queues were being subjected to wanton extortion by countless security agencies at alarming rates that ranged between N80,000 and N120,000 on each truck, depending on the particular operator’s power

of negotiation, and also exposed to vandals who constantly damage the vehicles and steal various critical parts. “The drivers on the queue are subjected to serial brutalisation and dehumanisation by security operatives. In the season of Christmas, the Containerised Truck Owners are filled with anxiety of further distress, going by past records of increased delivery of imports and congestion at Nigerian ports in anticipation of huge sales at yuletide,” the communiqué read. Continuing, it stated, “Apart from the seasonal spike in imports, Nigeria also contends with increased security challenges caused by marauding criminal elements as well as high incidents of extortionate tendencies by security operatives along the ports access roads. “Ideally, the Christmas season spells good tidings and joy, but, in the current poor conditions of operation, which our members are contending with on Lagos ports access roads, the yuletide can only spell ‘sorrow, tears and blood’ for us, except if the Federal and Lagos State governments hearken to our cries and save our lives and means of livelihoods.” They however pleaded with the concerned authorities to do the needful by introducing an automated system to regulate movement of trucks in and out of the ports. The proposed automated system, according to the truckers, will effectively help ensure that all the trucks would not be heading for the ports at the same time.

Space physicist, Rabiu, hails Obaseki on Edo-GIS, Innovation Hub Reps uncover $150m unpaid royalties, threaten revocation of oil blocs ... charges Edo Poly on collaboration with UNIBEN, AAU on HND conversion programmes

rofessor of physics and director, Centre for Atmospheric Research (CAR), Rabiu Babatunde, has commended Edo State governor, Godwin Obaseki on the establishment of the Edo State Geographic Information Service (Edo-GIS) as well as the setting up of the Edo Innovation Hub, noting that such technology-driven solutions will position the state for economic prosperity. Professor Rabiu gave the commendation at the maiden convocation ceremony lecture of the Edo State Polytechnic, Usen, held at the institution’s auditorium, in Usen, near Benin City. Rabiu heads the CAR, a centre under the National Space Research and Development Agency, supervised by the Federal Ministry of Science and Technology and

Kogi State University. In a lecture entitled Repositioning Higher Education towards effective patronage of Science and Technology for Sustainable Development, the professor commended the state government for prioritising science and technology and the deployment of technology in governance. According to Rabiu, “I commend the Edo State Government for its scientific approach to governance which is manifested in the administration’s adoption of ICT-based reform initiatives in the state’s civil service, revenue collection and data-driven governance. “Of note is the establishment of the Edo State Geographic Information Service (EDOGIS) on the 1st of August, 2017 by Gov-

ernor Godwin Obaseki for effective lands administration, management, registrations, geo-mapping and surveys, in Edo State.” On the Edo Innovation Hub, he said, “The Edo Innovation Hub which hosts the South-South Innovation Hub, was commissioned in June this year by this present administration and became the first state tech hub in the country. “Already, the tech hub has completed the training of 724 entrepreneurs in less than three months of operation and has now drawn up a sustainability plan that will see the private sector drive activities at the cluster. These and other technology-based initiatives of the government have surely positioned the state for economic explosion and sustainable development.”

KEHINDE AKINTOLA, Abuja

igeria’s House of Representatives has uncovered multimillion dollars unpaid oil royalties and other levies by some beneficiaries and operators of oil blocs. Worried by the development, Abiodun Faleke, chairman, Ad-hoc Committee investigating the non-remittance of revenues into the Federation Account, resolved to summon Department of Petroleum Resources (DPR) with the view to ascertain the level of indebtedness by the defaulters. While addressing some of the oil companies who allegedly failed to remit royalties and other statutory levies into the government coffers through the respective regulatory agencies, Faleke chided representatives of some of the oil companies for failing to remit royalties and other statutory levies through the respective

regulatory agencies. Speaking recently at the investigative public hearing, Faleke directed Pillar Oil to refund outstanding sum of $300,000 owed since 2016 into the Federation Account. He said: “You can’t be exploring oil since 2016 while the 36 states of Nigeria can’t pay N30,000 minimum wage and you expect us to sit down and watch. “We’ll not hesitate to ask the Federal Government to revoke your operational licence if you fail to pay the outstanding to the Federation Account. “This committee is giving you till next Thursday to furnish its Secretariat with all payments made so far to the Federation Account for further legislative scrutiny.” While responding to questions from the lawmakers, Ifeanyi Nwagboje, Pillar Oil’s director of finance, pleaded for understanding as the company stopped operations for a period

of time. He said: “We were able to pay $700,000 and we are making all efforts to pay the outstanding $300,000 as soon as possible. If not that we stopped production when there was crisis in the oil sector we would have completed the payment in due time.’ While ruling, Faleke, who threatened that the Ad-hoc Committee would recommend revocation of the oil bloc, said, “We can’t give you any reprieve now as you have been exploring since 2016 without payment, please come back on Thursday for all the documents we requested for.” BusinessDay gathered that most of the invited companies and MDAs had submitted relevant documents that would aid the ongoing investigation into the non-remittance of revenues into the Federation Account, before the House embarked on the Christmas and New Year recess.

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Thursday 27 December 2018

FINANCIAL TIMES

World Business Newspaper

Five things that shook Africa in 2018

As elderly autocrats cling on, the continent took baby steps towards a brighter future David Pilling

s 2018 draws to a close, protesters in Sudan are mounting one of the sturdiest challenges yet against Omar Hassan al-Bashir’s 29-year rule, rounding off a year in which, across Africa, the leadership of old men has come under increasing scrutiny. This year, the continent lost two giants: Kofi Annan, the first black African to head the United Nations, and Winnie Mandela, whose significance in South Africa’s liberation is hard to overstate (if easy to malign). But it gained at least two more: Abiy Ahmed, the Ethiopian prime minister whose whirlwind political opening in Africa’s second most populous country has electrified the continent, and Denis Mukwege, the Congolese surgeon whose treatment of rape victims earned him the Nobel Peace prize alongside Iraqi human rights activist Nadia Murad. Average growth on the continent of 2.7 per cent has been dispiriting, diluted by the pallid performance of two heavyweights, Nigeria and South Africa. But in numbers breathlessly cited by manufacturers of beer to medical equipment, six of the fastestgrowing countries in the world are again likely to be African: Ghana, Ethiopia, Ivory Coast, Djibouti, Senegal and Tanzania. Africa is so vast and varied that, whatever is true about it, is also untrue. In a continent that is increasingly peaceful, Cameroon continued to slide towards civil

war, and in one that is increasingly healthy, the second worst outbreak of Ebola in history raged in the eastern Democratic Republic of Congo where a promising vaccine is being tested. In what is bound to be a subjective — not to say random — exercise in a continent of 54 countries, here are five of the most significant events this year. The African Continental Free Trade Area: In March, 40-plus nations signed a free trade agreement with the potential to lift Africa’s economic potential. Colonialism bequeathed a Balkanised continent of sub-scale states, 16 of them landlocked. Inter-regional trade is a paltry 15 per cent. By trading with each other, African countries can raise valueadded content and stop simply shipping raw materials abroad. Bigger markets will attract more foreign investment. The free trade area is a baby step. And Nigeria has not yet committed to it. Tariff barriers pale beside treacherous roads as barriers to trade. But it is a baby step in the right direction. China debt scare: This was the year African nations — and western propagandists— woke up to the pitfalls of Chinese financing. China contributes a sixth of all lending to Africa and countries from Djibouti to Zambia are becoming more beholden to Beijing. It is fashionable to talk of China’s “debt trap diplomacy”, though some 40 African leaders rushed to Beijing for the triennial Forum on China-Africa Cooperation to load up on more. But hyperbole about China’s influence ignores the positive effects that

Wall Street remains volatile after run of bruising declines Major US stock indices see-saw as nervousness dominates final trading days of 2018

Joe Rennison , Leo Lewis and Richard Blackden

all Street was marked by nervous trading on Wednesday as investors returned after a turbulent run-up to Christmas that had helped wipe more than $3tn in value from the S&P 500 index this month. With major markets shut in Europe, attention was on a US market that has been the epicentre of the turmoil in global equities in December. In a volatile session, the benchmark index climbed as much as 1.5 per cent within minutes of the open but then relinquished that gain before backtracking again to trade up about 1 per cent just before midday in New York. The unease among investors had left US investors nursing their worst ever Christmas Eve losses, as concerns over slower global growth and political uncertainty in Washington dominated the final trading days of the year. “There is definitely a growing concern about the future of the economy, that the Fed tightened

too quickly and that DC is a mess and isn’t going to get anything done,” said Peter Tchir, chief macro strategist at Academy Securities. “Until there is some more clarity on what DC is going to look like, markets will struggle.” An unusually bruising December for investors has been exacerbated in recent days by the partial shutdown of the US government, reports that President Donald Trump had considered trying to dismiss Federal Reserve chairman Jay Powell and an effort by Treasury secretary Steven Mnuchin to calm investors nerves that appeared to backfire. “Current unknowns, from Fed policy to trade wars and now White House turmoil, are proving too heavy a weight to allow US equity markets to find their footing,” said Nicholas Colas, co-founder of DataTrek. Asian equities had tumbled on Tuesday, but Japanese markets clawed back some of those losses on Wednesday when the Topix closed up 1.1 per cent. Continues on page A4

its infrastructure will bring and the fact that Africa benefits from having options. Z imbabw e’s flaw ed election: After the ousting of Robert Mugabe in a military coup in 2017, there was widespread hope that the elections of July 2018 could consolidate change. They could not. The ruling Zanu-PF pulled out all the tricks of incumbency to ensure victory for President Emmerson Mnangagwa. Demonstrators protesting against the process were shot as the count came in. Zanu-PF has since descended into infighting and the economy into further chaos. One day, Zimbabwe will emerge from this mess. But not yet.

Bobi Wine: It took Ugandan rapper, parliamentarian and “Ghetto President” Bobi Wine to challenge the authority of Yoweri Museveni, one of a shrinking number of African autocrats clinging to power long past their sell-by date. Mr Wine has struck a nerve. Authorities beat him to within an inch of his life. A Boxing Day performance has been stopped. He could yet challenge Mr Museveni for the presidency in 2021. More important, he represents a stirring of youth across a continent whose average age is 19. “Abiymania”: With the possible exception of Joao Lourenço, the Angolan president who has

been busy dismantling the kleptocratic empire of his predecessor, no one has done more to turn their country upside down than Abiy Ahmed. At 42, he is the youngest leader in Africa. Since he was elected prime minister in March, he has concluded peace with Eritrea, emptied jails of political prisoners, challenged the economic stranglehold of corrupt state-owned entities and appointed women to half the positions in his cabinet. He has survived an assassination plot and what looked like an attempted coup. If 2019 is half as exciting, Ethiopia will remain a country to watch, not only for Africa but for the world.

World’s biggest shipping line Maersk looks for deals on land Next phase of growth will see push into trucks and warehouses, says chief Richard Milne

aersk is looking for acquisitions to boost its logistics operations on land as the world’s largest container shipping company tries to broaden its appeal to big shippers of goods. Soren Skou, chief executive of the Danish company, told the Financial Times that the next few years would see Maersk push the parts of its business not to do with the ocean, such as trucks, supply chain management and running warehouses. “The future will be very much about scaling the land side of the equation . . . We for sure have to do some acquisitions in the logistics space, primarily to gain capability and scale,” Mr Skou said. Maersk has broken itself in two in the past two years, disposing of almost all its oil and energy businesses and trying to shed the tag of conglomerate. It paid $4bn to buy Hamburg Süd to cement its position as the number one container shipping

line and is now trying to integrate that and its other businesses — including port terminals and land logistics — into one company. “A little less than 20 per cent of our customers buy the land side [of logistics] from us. But 100 per cent of them need a truck to get to and from the port,” Mr Skou said. Chief executive for the past two-and-a-half years of the transformation, Mr Skou said that any acquisitions were likely to be bolt-on ones rather than multibillion-dollar deals, not least because Maersk’s balance sheet is under pressure. He said that net debt was likely to be below $10bn by the end of 2018, having started the year at $15bn. But credit rating agencies have cited the company’s growing dependency on a weak shipping industry as reason to downgrade it. Moody’s this month cut Maersk’s rating to the lowest possible investment grade due to the volatility and cyclicality in shipping. Mr Skou said that remaining

investment-grade rated “is important for us” and stressed the company had a focus “on a strong balance sheet”. As for possible acquisition targets, he noted that Maersk was involved in each part of the land side of logistics such as trucks and warehousing “some at scale, some not”. He added: “Our vision is that customers can buy everything they need for their global supply chain from Maersk.” Maersk is a leader in supply chain management for retail groups, managing warehouses internationally for the likes of Nike, Adidas, Walmart and Home Depot. “We would like to do that supply chain management business in other industries. If we can acquire that capability or customer set, we would do that,” said Mr Skou. Geographically, he said the focus would be on the same regions as Maersk is strong in for container shipping, such as Africa, Latin America and India as well as some growth in Europe and the US.

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NATIONAL NEWS

Wall Street remains volatile after run of bruising...

Ecommerce delivers warehouse gold rush

Continued from page A3

This month’s steep declines in US stocks saw the S&P 500 on Monday briefly fall 20 per cent from its previous intraday peak in September. This tumble in the S&P 500 remains just shy of a bear market, typically defined as a 20 per cent drop from a previous closing high. The widely tracked index has lost more than $5tn in value from its September record, according to Howard Silverblatt, a senior index analyst at S&P Global. Although global equities had been under pressure for much of December, the sell-off intensified after the Fed raised interest rates for a fourth time this year and signalled that it would continue to tighten monetary policy by trimming its multi-trillion-dollar balance sheet. Some investors are concerned that the Fed’s approach will leave the US economy more vulnerable to the weaker pace of growth that has taken hold elsewhere. Michael Hasenstab, chief investment officer for Franklin Templeton’s global bond funds, warned that investors should steel themselves for more market tantrums in 2019, as tighter US monetary policy once again hits bond prices and further undercuts support for financial markets. “There is a lot of entrenched interest rate risk in all financial markets right now,” he said. In a Christmas Day media briefing at the Oval Office, Mr Trump accused the Fed of raising rates too quickly. When Mr Trump was asked whether he had confidence in Mr Mnuchin, the president replied: “Yes I do. Very talented guy, very smart person.” Questioned about Mr Powell, Mr Trump said: “Well, we’ll see. But they [the Fed] are raising interest rates too fast, that’s my opinion.” Mr Mnuchin has come under scrutiny in recent days after saying on Sunday that the heads of the country’s biggest banks had confirmed they had “ample liquidity for lending to consumer, business markets, and all other market operations” — an issue that had not been a widespread point of concern. The sharp souring in sentiment towards equities has stirred a rally in haven assets. The yield on the benchmark 10-year Treasury has fallen from 3.24 per cent in early November to 2.74 per cent on Wednesday. At the same time, the gold price has jumped more than 5 per cent since the middle of last month. Oil markets also staged a rally on Wednesday morning, with Brent Crude rising 3.2 per cent to $52.07, helping to recover some of its 6.2 per cent decline on Monday. Although Wall Street has been at the heart of December’s turbulence, other major markets have also been affected. China’s benchmark CSI 300 closed down 0.5 per cent on Wednesday, leaving it 26 per cent lower this year. In South Korea the Kospi shed 1.3 per cent. Despite Wednesday’s recovery, Japan’s Topix has fallen more than 20 per cent since the start of 2018. Barring a stunning rally in Tokyo, Japanese equities are poised to end the year in bear market territory, and market strategists are warning of an “unconstructive” start to 2019.

Thursday 27 December 2018

Rents in industrial real estate defy broader downturn as rates rise Joshua Chaffin

T Ivanna Klympush-Tsintsadze said Russia was waging ‘war against the west and against rules and procedures that have been guiding the world order’ © Getty

Ukrainian minister calls for fresh sanctions on Russia Official condemns ‘short sightedness’ of some European countries after capture of naval ships Michael Peel and Roman Olearchyk

Ukrainian minister has condemned the “shortsightedness” of some EU countries over Russia’s aims and urged the bloc to impose news sanctions over Moscow’s capture last month of Ukrainian naval ships. Ivanna Klympush-Tsintsadze, Kiev’s vice-premier for European and Euro-Atlantic integration, said Russia was trying to destroy EU unity by deepening “fractures” over how to deal with the Kremlin.“Unfortunately, we still see some shortsightedness in some of the European capitals,” Ms Klympush-Tsintsadze said in an interview, noting that some politicians in Italy and Austria had talked publicly about scrapping EU-Russia sanctions. “Not all of the political elites across Europe grasp the depth of this ambition of the Russian Federation.” Kiev and the US are intensifying efforts to convince EU countries to respond more strongly to Rus-

sia’s activities in Ukraine, where it occupied Crimea in 2014 and subsequently fomented a war in far-eastern regions. Fresh war fears erupted last month when Russian forces based in Crimea seized the Ukrainian vessels and their crews as they tried to sail from the Black Sea through the Kerch Strait. Kiev describes the incident, and months of inspections on commercial vessels, as part of a creeping economic blockade on export-orientated ports in the adjacent Sea of Azov. The Ukraine conflict is a test of EU foreign policy after parties sympathetic to the Kremlin have grown more powerful and joined coalition governments in Italy and Austria. The vice-premier welcomed the willingness of EU leaders this month to extend sanctions on Moscow over its internationallyunrecognised Crimea annexation and role in unrecognised elections in breakaway eastern regions of Ukraine. But she called for further measures.

Kiev believes a muted western response to Russia’s actions has not brought sanctions to levels sufficient to deter further hostilities. EU diplomats say member states are debating whether to impose targeted measures against Russian officials such as military commanders deemed responsible. After joining Ms KlympushTsintsadze in Brussels to lobby EU officials this month, Kurt Volker, the US envoy on the Ukraine crisis, travelled to Kiev as part of an effort to organise a “well coordinated western response”. He met Ukraine’s president, Petro Poroshenko, whose office said both discussed “the importance of a powerful response from the world . . . in order to counter the creeping occupation of the Sea of Azov and the Kerch Strait by the Kremlin”. Ms Klympush-Tsintsadze said Russia was waging “war against the west and against rules and procedures that have been guiding the world order”.

Mega-deals drive rise in fundraising from initial public offerings Bankers expect trend to continue in 2019 despite recent volatility in equity markets Nicole Bullock, Katie Martin, Leo Lewis and Emma Dunkley

nternational “mega-IPOs” drove an uptick in fundraising from initial public offerings in 2018, a trend that is seen continuing into next year despite volatile markets as Silicon Valley unicorns line up to go public. Proceeds rose 5 per cent over the previous year to a four-year high of more than $200bn, but that amount came by way of nearly 300 fewer deals, according to Dealogic. Listings in Asia accounted for the lion’s share of issuance, with more than 46 per cent of global proceeds and the year’s top three IPOs — SoftBank, China Tower and Xiaomi. “What defined the year was the mega-IPO — deals greater than $1bn,” said Liz Myers, global head of equity capital markets at JPMorgan. “We had around 30 deals [of that size] come to market across sectors and regions, something we expect to continue in 2019.” Bankers attributed the greater instance of large offerings to factors including the increasingly deep pool of private capital available to companies ahead of public listings and the rise in equity markets to all-time highs or close to them be-

fore the broad sell-off in the fourth quarter. The biggest IPO of 2018, which involved heavily indebted SoftBank spinning-off its mobile business as a separate listed company, was by far the largest in Japanese market history and came close to breaking Alibaba’s $25bn record for the largest ever. Chart showing big IPO deals of 2018 (SoftBank was biggest) Despite cries of “overpriced” from institutions, the issue was about two-times over-subscribed and all seemed to be going well until SoftBank mobile’s first day of trading on December 19. The shares plummeted 15 per cent on debut, with institutional investors saying that they would need to fall about 30 per cent from the IPO price to represent good value. Technology IPOs dominated, accounting for nearly a third of global proceeds, including the first real sampling of so-called “unicorns”, or companies that have achieved valuations of more than $1bn with private capital. Tech unicorns raised a record $57bn globally. Among the more high-profile unicorns to list, music streaming service Spotify opted for a “direct listing” on the New York Stock Exchange rather than a traditional IPO

that involved raising fresh capital — a process that may be adopted by other unicorns. US-listed IPOs, almost 30 per cent of the year’s total proceeds, hit a four-year high in both in proceeds and deal count, helped by the most Chinese listings since 2010 in spite of the trade war between the two countries. Chart showing how, despite US/ China trade tensions, Chinese issued US IPOs increase in number and volume compared with last year The year also saw the first cannabis company going public in the US, Canada’s Tilray, which also proved to be the top performer. From the IPO price of $17, the shares were trading above $70 late in the year, though off their September high of $300. In Europe, Dutch payments company Adyen listed in June and shares immediately almost doubled, but some big-ticket deals flopped. Stung by concerns over resurgent market volatility and the potential impact of tariffs, Volvo Cars decided not to go ahead with its listing in September. The following month, both Aston Martin and Funding Circle — arguably the UK’s most hotly anticipated deals of the year — stumbled hard when they hit the market.

he cavernous rectangular building with views of the gantry cranes of the nearby Port of Newark is not likely to win many architectural awards. But to Nick Kittredge it is “a thing of beauty”. Mr Kittredge is a senior executive at logistics real estate company Prologis. The 200,000-square-foot facility in the industrial town of Elizabeth, New Jersey, is one of its latest bets on a warehouse gold rush that is being fuelled by the growth of ecommerce. Rents for industrial real estate — a category that largely comprises warehouses — are rising at doubledigit rates in more than a dozen US markets. Vacancies are at historic lows, and new investors are piling into the sector even as other parts of the property industry are softening. “Demand for industrial in the US is off the charts,” said Revathi Greenwood, head of US research at Cushman & Wakefield. “That market is completely on steroids.” TH Real Estate, an investment manager, has estimated that total returns for warehouses will be double those of other US property sectors this year. The Pension Real Estate Association is predicting they will outpace other property categories at least to the end of 2022. In some ways the warehouse boom is the flipside of a retail property market blighted by bankruptcies and store closures as shoppers move online. Demand is so intense that in some markets developers have taken the once-unheard-of step of tearing down office properties to convert them to warehouses. Erik Caldwell, chief operating officer of XPO Logistics, which owns 813 warehouses — more than half outside the US — estimated that ecommerce now accounts for about 30 per cent of its business. The company is opening an average of two new warehouse facilities each week. “Consumer demand is fuelling tremendous growth in retail and ecommerce,” Mr Caldwell explained. It makes for heady times for Mr Kittredge, who runs Prologis’s east coast operations, and fellow denizens of industrial real estate, once an industry backwater. They find themselves suddenly bathing in a limelight typically reserved for colleagues from the more glamorous worlds of residential and commercial realty. “We certainly feel that this is our time in the sun,” he said. At Cushman, some of the topranked brokers — a matter of great prestige internally — are now industrial specialists, and have even begun to feature in the company’s annual presentation. “All of a sudden, it’s sexy to be an industrial broker,” said Andrew Judd, a senior managing director who runs the company’s office in northern New Jersey, sounding as surprised as anyone. For years, that was not the case. The warehouse market was boringly stable until it was hit by the 2008 financial crisis. A strengthening economy stabilised rents after a few years.

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ANALYSIS Banks pushed to cleanse their balance sheets of climate risk Regulators’ call for lenders to consider weather perils is having an impact David Crow and Caroline Binham

Niche markets in 2018: the bad and the bountiful Obscure financial bets ranging from Burgundy wine to pot stocks pay off FT Reporters

hile US stock markets have grabbed most of the attention in 2018, some of the more obscure financial bets have yielded plenty of opportunities, for profits as well as career-limiting losses. Here is our pick of some favourites: European carbon credits In the relatively niche world of carbon trading, a few big bets made headlines, with some notable winners and losers along the way. Having languished for the best part of a decade after the financial crisis, when excess supplies of carbon allowances depressed prices, an elite group of specialist traders were quick to comprehend what tweaks by the European Commission to the system meant for tighter supplies. The result? A 230 per cent rally in the price between the start of the year and September, which took the allowances to a 10-year high above $25 a tonne. A number of hedge fund managers spotted the trend early, including Per Lekander, a carbon specialist who runs two energy-focused funds at Lansdowne Partners in London. Ulf Ek at energy hedge fund Northlander Advisors also won big. But perhaps the biggest name of all caught the wrong side of the trade. Einar Aas, a Norwegian power trader who was once the biggest taxpayer in the country, was blindsided by a rise in carbon in late September that violently skewed bets he had placed on Nordic power and German electricity markets. Such was the size of his wrong-way positions that it blew a more than $100m wide hole in a stability fund in Nasdaq’s Nordic power exchange. That forced him to liquidate a number of his assets and leave the industry in return for his creditors forgiving the remainder of the debt. David Sheppard Green bonds The market for environmentally labelled debt has grown exponentially in the decade since it was first launched, but 2018 saw its first stutter. Sales of green bonds rose year on year, but the rate of growth dropped off sharply. After expanding 77 per cent from 2015 to 2016, and 65 per cent in the year to 2017, the value of green bond sales grew just 12 per cent from 2017 to 2018, according to figures from data provider Refinitiv. A total of

$120bn of green-labelled bonds had been sold by mid-December. Industry observers attributed the easing-off partly to wider market conditions, where volatility has limited companies’ opportunities to issue debt. But the emergence of a wider range of ethical labelling in the capital markets has also played a role. Sales of social and sustainable bonds are up sharply year on year, although both are still very small markets. Ethically labelled debt is popular with investors because of the additional disclosure that it forces issuers to provide. Yet so far there is no clear evidence that investors are willing to pay a premium for green-labelled debt, and the question of whether it can outperform conventional debt remains an open one. “We believe the main issue prohibiting clear disclosure is the diversity of projects financed, coupled with lack of universally applicable impact measurement standards,” said Rahul Ghosh, a senior vicepresident at credit rating agency Moody’s. Kate Allen Catastrophe bonds Catastrophe bonds were one of the big winners from quantitative easing. The instruments, which back insurance-like risks such as storms and earthquakes, attracted investors with decent yields and low correlation with other asset classes. Doubts have started to creep in, however. After a relatively quiet period, 2017 turned out to be a very active one for natural catastrophes. Many cat bond investors lost money as hurricanes Harvey, Irma and Maria barrelled through the Caribbean and the US. Confidence returned to the market early this year — after all, perhaps there would be no repeat of the 2017 disasters. The Swiss Re cat bond index returned just over 3 per cent in the first half of the year. But as the year has drawn on, those doubts have returned. Storms in the eastern US, typhoons in Asia and wildfires in California have made 2018 another above average year for natural catastrophe losses. Cat bond investors could find themselves paying out once again. People in the insurance industry are asking if 2019 will turn out to be the big test of just how sticky the new cat bond capital really is. Oliver Ralph Volatility In 2017, one of the biggest niche

money-spinners in financial markets was betting that they would remain tranquil. But in February those punts unravelled in dramatic fashion and this year the smart money has been wagering on renewed turbulence. Two popular Vix volatility index-linked exchange traded notes highlight the abrupt shift. XIV, an “inverse-volatility” ETN that makes money when markets are calm, was shredded by a spurt of volatility on February 5 and was swiftly shut down by its sponsor. Meanwhile, its “long” counterpart, VXX, has benefited from the choppy market environment in 2018 and notched up its best annual performance since inception. In fact, 2018 was its only positive year. “The low vol bubble is deflating, and signs of regime change are growing,” analysts at Bank of America wrote in a report. The complicated structure of VXX means that it is suitable only as a short-term trading instrument, as it has lost almost 99.9 per cent of its value since its birth in 2009. But this year it has returned more than 50 per cent, thanks to bursts of turmoil in February and October. A fine performance in the ETN’s last year of life, because its structure (ETNs are essentially debt instruments, with a fixed maturity) means that it is due to be shuttered in January. Robin Wigglesworth Burgundy wine Wine traders can toast a vintage year for Burgundy prices in 2018, as this niche corner of the fine wine market surged to record highs. Wine can be a tough asset to trade, due to high transaction and storage costs, and the broader fine market offered little to investors this year, gaining just 0.22 per cent according to Liv-ex’s Fine Wine 100 index. But its Burgundy 150 index has surged 35.52 per cent, its best performance in a decade. In October, two bottles of Romanee-Conti broke the record for the most expensive bottles of wine ever sold at auction. The Burgundy market, roughly one-quarter the size of the dominant Bordeaux market, is benefiting from tight supply after fierce hailstorms shredded much of the crop in recent years. Added to that, Asian buyers who pushed the Bordeaux market to record levels in 2011 only to be burnt when the market retreated, are now moving on to Burgundy, viewed as a more sophisticated market.

ark Carney is no stranger to accusations that he is exceeding his remit, especially on Brexit, where the Bank of England governor has been regularly criticised for warning about the dire consequences of a hard break with the EU. Another area where Mr Carney has gone further than financial supervisors in other jurisdictions is climate change, which many economists believe could pose a greater risk to the financial system than Brexit. During a recent interview, Mr Carney bristled at suggestions he was overstepping the mark by asking banks to do more to model climate risks, from the impact of floods on their mortgage books to whether new green policies could hurt the creditworthiness of their corporate clients. “Absolutely not,” he replied when asked whether the BoE’s work on climate change was an example of mission creep. “The issues around climate are wide ranging, and will touch virtually

“Some people will be a climate [change] denier . . . or take a view that the speed with which domestic policy will change will lag international agreements. People can be on the other side of the spectrum as well. That’s called a market, but the market needs information.” Most global banks have signed up to the TCFD, but five lenders went a step further last month by pledging to “progressively align” their corporate loan book with the goals of the Paris agreement, which seeks to keep global warming to well below 2C. ING, BBVA, BNP Paribas, Société Générale and Standard Chartered all said they would explore ways to make lending decisions that helped to achieve the Paris goal. Ralph Hamers, chief executive of ING, said his bank would work with its clients in polluting industries, like real estate and shipping, to help them reduce their carbon footprints. “You will see our loan book over time change,” said Mr Hamers, “In some areas where we can’t have an impact, or our clients are not open to our approach, we may even step out [of the relationship].”

Mark Carney, Bank of England governor, said the issues around climate change touched ‘virtually every sector’

every sector.” Mr Carney said banks were already thinking about the issue, referencing a recent BoE survey of UK lenders, which found seven out of 10 were treating climate change as a financial risk rather than a reputational one. “They’re looking at specific climate-related risks in their portfolio, [such as] their exposure to certain bits of the auto sector,” he said. “Like it or not, this stuff is coming mainstream.” The governor said it was not the BoE’s job to implement green policies “by the back door”, but insisted regulators had a duty to ensure financial institutions were preparing for extreme weather events and the imposition of new rules designed to meet global warming targets. He said: “What central banks will not do . . . is substitute for governments in climate policy. That is entirely the responsibility of governments.” In his capacity as chair of the international Financial Stability Board until last month, Mr Carney played a major role in setting up the Task Force on Climate-related Financial Disclosures (TCFD), an initiative to help companies quantify the risks so they can communicate them to investors. Mr Carney said the TCFD, which is backed by companies responsible for nearly $100tn of assets, was a “public good” regardless of one’s opinions on climate change.

Mr Hamers said that failing to realign the bank’s portfolio might mean it ended up with “stranded assets” — loans that have turned sour because the borrower has been put out of business by new climate policies. “You could be stuck with a client that doesn’t get [operating] licences any more,” he added. Mr Hamers conceded that some banks would spot an arbitrage opportunity in lending to profitable businesses that have been frozen out by “greener” rivals: “I’m sure it will happen — there’s nothing I can do about it.” In contrast, Daniel Klier, head of sustainable finance at HSBC, warned against cutting clients off too quickly, arguing banks can have a greater impact by working with their borrowers. He said: “It doesn’t make sense to just divest them. We need to work with them. None of them are ‘green’ or ‘brown’. They’re on a journey.” Although banks have long paid lip service to climate change, the industry is being forced to change by investors, according to Laurence Pessez, head of corporate social responsibility at BNP Paribas. “There is a huge expectation from investors,” she said. “At the beginning it was mainly from [sustainable] investors, but now it’s becoming mainstream because all investors have understood there is a potential credit risk in climate.” Energy chart

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We have no plan to arrest, inject Dino Melaye to death - Police instead of whipping up sentiments to distract the public. The statement read in part: “The attention of the Nigeria Police Force has been drawn to a statement in some sections of the media credited to a serving Senator of the Federal Republic of Nigeria, representing Kogi West Senatorial District in the National Assembly, Senator Dino Melaye, captioned “IG plans to arrest me, inject me to death”. “The Force is categorically stating that the statement is mischievous, malicious, capable of misleading the public and laughable, there was no such order from the Inspector General of Police or any plan by the Force to arrest Senator Dino Melaye and inject him to death but if the Senator knows he had committed any crime or he is aware of his involvement in any crime, he should come out and confess and face the legal consequences instead of

Innocent Odoh, Abuja

he police have denied allegation by Senator Dino Melaye that the Inspector General of Police (IGP) Ibrahim Idris, planned to arrest and inject him (the senator Representing Kogi West) to death, describing the allegation by the lawmaker as “mischievous, malicious and capable of misleading the public”. A statement issued on Wednesday by the Force Public Relations Officer, Jimoh Moshood, noted that there is no such order from the Inspector General of Police or any plan by the Force to arrest Senator Dino Melaye and inject him to death. The police added that if the Senator knows he had committed any crime or he is aware of his involvement in any crime, he should come out and confess and face the legal consequences

Melaye

Yuletide: Saraki laments level of insecurity, poverty in Nigeria SIKIRAT SHEHU, Ilorin

he Senate President, Bukola Saraki, on Christmas Day decried the level of insecurity and poverty in the country. He described the untold hardship which the All Progressives Congress (APC) he helped to get power in 2015 has subjected Nigerians to as unprecedented. Saraki, who spoke on a joint live radio programme in Ilorin, Kwara State, empathised with Nigerians, especially his people of Kwara State

Saraki

over the sufferings and hardships they were going through particularly at this festive period. He said the only antidote to the present precarious economic and security situation in the country is for Nigerians to vote out the APC-led Federal Government and elect Atiku Abubakar of the People’s Democratic Party (PDP) as the nation’s president during next year’s general election. “Times are very hard for the masses as a result of the level of poverty in the country. Without sentiment, the present government has failed Nigerians. They must therefore, ensure they vote for a leader that will address poverty and revive the economy.” “Nigerians will vote in February 2019 but the business community has already passed a vote of no confidence in this present government. I therefore, urge Nigerians to vote out this government and vote a man (Atiku) that will restore investors’ confidence and get Nigeria working again. It is only one party that loves the common people and that’s our party, the PDP,” he said. Saraki emphasised that “I’m in politics to serve my people. When I campaigned in 2015, I pledged to

Nigerians that my former party, APC will address the issues of insecurity, unemployment and poverty but unfortunately the party has failed on all these three score lines.” “I thank God Almighty for the position that was given to Kwara as the number three citizen. We have cut across our zonal intervention projects in the state which wasn’t possible in the first four years as a floor member at the 7th Senate because ranking members add more value to the community/constituency,” he further said. On the home front, the Senate President urged Kwarans not to be deceived by absentee politicians who only come around about six months to election time. Accusing the opposition elements in the state of insincerity, Saraki challenged them to come out with their programmes for the people of the state. He listed his numerous intervention projects in the areas of education, power, road construction, water and empowerment schemes scattered across the four local government areas that made up his Kwara central constituency.

Ezekwesili urges Nigerians to vote against bad leadership Iniobong Iwok

he presidential candidate of the Allied Congress Party of Nigeria (ACPN), Obiageli Ezekwesili, has urged Nigerians to vote against bad leaders in the country, charging them to use the opportunity of Christmas to pray and commit to actions that will make Nigeria realise its hidden greatness. In a statement to felicitate with Christians on the celebration of Christmas, the ACPN presidential

candidate called on leaders in the country to emulate God, who gave Jesus Christ to humanity to live among us and save mankind. According to her, leaders must be ready to give all their all in sacrifice for the development of Nigeria, and when a leader is not performing, Nigerians should vote him out. “Christmas is one great celebration that reminds us of the need to have exemplary and sacrificial leadership in our country. “Therefore, as leaders, we must be

willing to emulate Christ and be willing to sacrifice for the development of Nigeria,” she said. “While I congratulate Nigerians on this glorious Christmas day, let me also urge every one of us to prepare to vote sensibly and break out of the stranglehold of bad leadership in 2019. “It is only then that our country can celebrate the Christmas of 2019 under the right quality of leadership that will bring joy to our nation and people,” Ezekwesili said.

whipping up sentiments to distract the public. “The Force sees such defamatory, mischievous, malicious and reckless statement by Senator Dino Melaye as untrue, ridiculous, mischievous and unfortunate. Members of the public are hereby enjoined to disregard and discountenance the statement by Senator Dino Melaye in its entirety as untrue and mischievous. “Senator Dino Melaye is hereby called upon to know that his statement constitutes a criminal defamatory offence, hate speech and hateful conduct. He should however, as a lawmaker, be law abiding and desist from un-senatorial and lawless utterances that cannot be substantiated with facts. “The Inspector General of Police will not be distracted by statements from the likes of Senator Dino Melaye but will continue to ensure that the rule of law prevails in all matters.”

Ajimobi thanks Oyo indigenes for standing by administration …Canvasses support for Adelabu Akinremi Feyisipo, Ibadan.

yo State Governor, Abiola Ajimobi, has expressed gratitude to the people of the state for standing by his administration during the low and high time of his historical two-term tenure, which ends on May 28, 2019. In his address at this year’s Christmas Carol and the thanksgiving service for his 69th birthday, held simultaneously at the Agodi Gardens, Ibadan, the governor also said he had enjoyed the grace and mercy of God so far. Emphasising the need for citizens to love and sacrifice for one another beyond the festive season, the governor said these were the virtues that the life and times of the symbol of the season, Jesus Christ, epitomised. The governor urged citizens to always be thankful to God for counting them worthy to witness this year’s festive season, irrespective of their economic or social status. He thanked his wife for being very supportive and especially for showing kindness and care for the orphans, widows, less-privileged and other vul-

Ajimobi

nerable citizens of the state through several social safety nets. Ajimobi said: “My message this year is just gratitude, gratitude and gratitude. First, let me thank God for the opportunity given me to govern this state for an unprecedented two consecutive terms. Second, I thank the people of Oyo State for their support. “I must thank God for His kindness and mercy, which made it possible for us to achieve all we were able to achieve. In governance key performance index, we have performed excellently. In education, health, agric, social infrastructure and others we have done well. “But, I must especially thank my wife publicly for her support. She has taught me more about kindness and Godliness. My wife is a devout Christian who derives pleasure in putting smiles on the faces of the downtrodden. “She took many children, especially orphans, off the streets and she is nurturing them the same way she nurtures our children. “I thank the Muslim and Christian religious bodies for their prayers and support for my administration. I make bold to say that no governor in the history of this state had promoted and celebrated both faiths as we did since the inception of my administration.” Ajimobi used the opportunity to again present and solicit the support of the people of the state for the All Progressives Congress governorship candidate in next year’s election, Adebayo Adelabu, whom, he said, would be a worthy successor. The governor said the APC candidate was courageous, bold and had the fear of God, which Ajimobi said were also his personal attributes, which some people erroneously misconstrued for arrogance.

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The president Nigeria needs in 2019 ODINAKA ANUDU

he 2019 presidential election is less than two months away. Political parties and their candidates are devising all manner of measures to woo the electorate. Muhammadu Buhari, incumbent president and candidate of the All Progressives Congress (APC), is pledging to take Nigeria to the next level if voted back into power. Atiku Abubakar, former vice president and candidate of the main opposition People’s Democratic Party (PDP), says he wants to get the country working again. Obiageli Ezekwesili, former World Bank vice president and human rights crusader, anchors her manifesto on ‘hope’. Omoyele Sowore of the African Action Congress wants to take back Nigeria from the people he mostly describes as ‘old and analogue politicians’. Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria and candidate of Young Progressive Party, believes that Nigeria needs a new vision, worldview and leader with 21st century knowledge-base. Fela Durotoye of Alliance for New Nigeria (ANN) is targeting a new Nigeria if elected president. All other candidates have different visions and manifestoes that reflect their worldviews, experiences and missions. The point of convergence, however, is that this not the Nigeria of their dream. They all target to institute a change that will alter the status quo. As the election approaches, BusinessDay has articulated what Nigeria’s next president needs to look like. Experts believe that the biggest consideration for who becomes president is the knowledge of the economy. According to the Brookings Institution, Nigeria is now the poverty capital of the world, with a record 87 million people living in extreme poverty and 8,000 people sliding into extreme poverty on a daily basis. Unemployment rate increased to 23.10 percent in the third quarter of 2018 from 18.8 percent in the second quarter of 2018, according to the latest figure from the National Bureau of Statistics (NBS). The NBS said the country’s foreign debt at the end of the first half of 2018 (H1’18) stood at $22.08 billion, representing a 17 percent rise over the $18.9 billion recorded at the end of 2017.The country’s fortunes are also stymied by high domestic debt and extremely

high-cost debt servicing. Inflation rate is sitting on a double-digit pedestal of 11.28 percent, while GDP growth in the third quarter of 2018 was only 1.81 percent. Nigeria is fourth on the Misery Index in the world today. “The economy is in a very bad shape,” said Kolawale Odunjo, an Ogun State-based businessman. “So, we need a president with the knowledge of the economy. We need someone who looks at the stock market slide and makes a decision or pronouncement that will lift the market. We need someone who understands that 80 percent recurrent expenditure and 20 percent capital expenditure will take Nigeria nowhere,” he said. Experts say Nigeria needs a president with a hands-on solution to Apapa ports problem. Apapa ports provide N3 billion to N7 billion revenue for Nigeria every day, but successive governments have left their infrastructure to totter. About 5,000 trucks seek access to Apapa and Tin Can ports in Lagos every day, even when they were originally meant to accommodate only 1,500 trucks, according to a latest maritime report by the Lagos Chamber of Commerce and Industry (LCCI). Consequently, Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of the ports.

The LCCI report notes that 25 percent of cashew nuts exported from Lagos to Vietnam in 2017 went bad or were downgraded owing to delays at Lagos ports. Similarly, only 10 percent of cargoes are cleared within the set timeline of 48 hours now while the majority of cargoes take between five and 14 days to clear. The report further notes that some cargoes take as many as 20 days to be cleared at the ports. This means that executive orders on ease of doing business in the ports are not working. Babatunde Ruwase, president of LCCI, had recommended the finalisation of concessioning of Onitsha seaport, urging the government to improve the security situation along and within the Warri port in order to ward off militants and touts. A senior trade expert who was the president of a bilateral chamber of commerce, said: “ Anybody with any business in Apapa must begin to think now that Nigeria needs a president who understands that if Apapa collapses, the economy collapses.” Odion Oghele, a medical expert, expects a president who understands that there is crisis in the health sector. “Is it the National Health Insurance Scheme? Is it the dilapidated infrastructure in hospitals? Is it remuneration of health workers? Do they have the infrastructure and better working conditions? You have leaders who will travel abroad to treat themselves and

their children when sick. Does any right-thinking person believe that such leaders can do anything in the health sector?” he asked. Medical tourism is estimated at $1 billion annually. Nigeria has allocated only 2.9 percent of its total budget on health in the last three years, as against South Africa’s 13 to 15 percent over the same period, according to BusinessDay calculations. Consequently, everything in the health sector is getting worse. Nigeria has only seven radiotherapy machines for cancer patients, but only two are working. Yet cancer is responsible for the deaths of 72,000 Nigerians yearly, according to Wellbeing Foundation Africa (WBFA)’s 2019 research. The World Health Organisation (WHO) puts standard health budget allocations at 26 percent, especially for developing countries. Nigeria has demography of 198 million, which presents a market opportunity but also a health burden on the government. The 2017 was marred by outbreaks of diseases such Lassa fever, which occurred in 718 cases wherein 68 persons died. Between January and July 2018, there have been 115 deaths in confirmed cases and 10 in probable cases. Cerebrospinal meningitis was suspected in 14,518 cases across 181 local government councils, with 1,166 people reported death. Other outbreaks last year included monkey pox and cholera.

“The World Health Organisation has a standard benchmark that should be followed by developing countries with high rates of diseases. Compare that ratio with what we have in Nigeria and you will see why we still struggle with health issues,” Okey Akpa, chairman of Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (MAN), told BusinessDay on the phone. “This is a global benchmark, which is a product of research,” Akpa added. President Muhammadu Buhari, on coming to power, had barred civil servants from seeking medical treatment abroad, promising to visit local hospitals himself. Incidentally, he became the first to visit a London hospital when he fell sick. A survey conducted by the United Nations Children Fund (UNICEF) and the Nigerian government shows that the population of out-of-school children in Nigeria has risen from 10.5 million to 13.2 million. Examination malpractice, dilapidated infrastructure and insecurity are hurting the education system today. Isaac Adeyemi, former vice Chancellor, Bells University of Science and Technology Otta, Ogun State, told BusinessDay that solutions to the socio-political and economic problems in Nigeria lie in the capacity of a leader to provide quality and sustainable education. Florence Obi, former deputy vice chancellor, University of Calabar, said handover of education to the local and state governments is a move that would increase capital development to aid teaching and learning. Moreover, experts add that Nigeria needs a leader that will come up with an industrial plan. Today, the country claims to be implementing resource-based industrialisation, where manufacturers rely on local raw materials to grow. But many raw materials are still under-developed in the country, while importation and smuggling are uncontrolled. Back in 2012, Nigerians could afford to buy new cars at N4 million each. Six years after, prices of new cars have shot up to N20 million on the average, pricing out the middle-class who often make up a large percentage of buyers. The reason for prohibitive prices of new cars can be found in the 2013 National Automotive Policy which, first, imposed 35 percent levy and 35 percent duty on imported vehicles, amounting to a total of 70 percent.

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that are adjudged extremely poor, and about 60,000 children under the age of five die from diseases caused by the nation’s poor levels of access to water, sanitation and hygiene. These too, Buhari and APC want to take to the next level. For Nigerians in the North Eastern part of the country, especially Borno and Adamawa states, and those of the North Central, particularly Benue State, where insurgency has desecrated family bonding, mass-produced widows and orphans, and cramped strangebed-fellows into sub-human conditions in IDP Camps, the next level agenda simply underpins the arrogance and insensitivity of a government. Perhaps, one has never heard or seen anything more nauseating and irritating from the Buhari government than this next level agenda; not even the serial lies and denials that have the tendency of taking all Nigerians for fools without any sense of history. In January 2015, former President Goodluck Jonathan reduced the price of fuel from N97 to N86.5 per litre. APC kicked and responded by saying the price was not low enough, promising the nation a better deal under their government. Today, the pump price of fuel is N145.00 per litre and still counting. Similarly, the APC boasted it would improve the power situation in the country and the man who is the power minister today told Nigerians that fix-

ing the power problem in the country should not take any serious government six months because it is not “rocket science”. Three years after, the situation is worse with deep-seated corruption as reflected in the crazy estimated bills that are forced down the throats of consumers who scarcely enjoy the services they pay for. Buhari also wants to take this to the next level so that the few industries still operating under heavy energy cost burden will cave in, either close shop or relocate to smaller neighbouring countries as many have done, just as the generator business fueled by cabals in government will continue to flourish. Apapa is Nigeria’s premier port city. It is home to the country’s two busiest seaports that account for about 75 percent of the country’s export and import activities. This port city is the highest source of the country’s non-oil revenue. The economy of the port city is estimated at N20 billion a day. Yet Apapa has become a wasteland where landlords and property investors are crying, business owners are sulking while residents are gasping for breath as fumes from millions of rampaging trucks stuff their nostrils. To all Nigerians who have one thing or another to do in Apapa, the next level agenda can only be a hoax or deceit. And this feeling, one believes, runs across all sectors, all tribes, all religions and all families.

Deconstructing Buhari’s Next Level Agenda CHUKA UROKO

ince after President Muhammadu Buhari and his party, the All Progressives Congress (APC), launched their Next Level agenda as their sociopolitical and economic roadmap for Nigeria for the return to government in 2019, one has been deeply confused and perplexed trying to figure out what this ‘next level’ really means. By simple reasoning and in a lay man’s understanding, next level simply means a position higher or beyond the present or the status quo. For someone or something or an entity to go to the next level, therefore, means that person or thing rises above where he is presently seated or standing; or climbs up the steps of the ladder above the position he presently occupies. It follows therefore, that the Buhari and APC next level agenda seeks to take Nigeria and Nigerians to a position or situation that is higher than where they are at the moment and this easily begs the question ‘what position or situation are Nigeria and Nigerians in now that anybody wants to take them higher?’

What exactly do Buhari and APC want to take to the next level—a comatose economy, insecurity that has brought the country and its economy on their knees or a skewed corruption fight that focuses on perceived enemies of the government and the opposition parties? Festus Keyamo, a cerebral senior advocate of Nigeria who, until he crossed over, enjoyed tremendous following as a social crusader, is the spokesperson for the Buhari Campaign Organisation. Keyamo explained in a media programme that the Buhari/APC agenda is aimed to take Nigeria to the next level of government’s achievements in the last four years. But it was an interesting spectacle watching the senior advocate panting, struggling and trying to mention any other thing as an achievement of the government beyond the jaundiced, warped and skewed corruption fight by Mr Integrity whose cosmetic nuances are heavily tainted by nepotism. But Nigerians are not deceived and their harrowing experiences in the last three and half years have made them wiser and better situation judges and analysts. An average Nigerian knows that what the Buhari government with his cabinet of saints that took half-a-year to assemble have been able to achieve is institutionalisation of misery, hunger, poverty, joblessness and insecurity. Recent figures from the Na-

tional Bureau of Statistics (NBS) shows that over 20 million Nigerians are jobless, yet the lying machinery of government keeps rolling out ridiculous numbers of jobs that it has created in the last three years. But that is not strange from a government that appropriates jobs created by contractors at construction sites and those by farmers at farmlands. Today, according to NBS, the misery index in the country is 34.4 percent, meaning that more Nigerians are depressed, hungry and angry. The implication of this for the country is not only grave for its social security and stability, but also productivity and economic growth. Allowing Buhari and APC to return in 2019 to take all these and more to the next level means pushing Nigeria, its people and the economy beyond their elastic limits. In 2015, when Nigerians were deceived, cajoled and even coerced into believing in the change mantra, little did they know that a bag of rice would sell for an equivalent of the national minimum wage, up from between N8,000 and N10,000, meaning that an average civil servant who wishes to buy a bag of rice will use the whole of his pay to do that and will be left with nothing else for other needs. It seems this is what Buhari wants to take to the next level. Today, Nigeria has about 87 million people, almost 50 percent of the national population,

NEWS

NNPC reiterates position on $1.5bn NLNG dividend OLUSOLA BELLO

roup managing director of Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, has again reiterated the position of the corporation on the $1.5 billion Nigeria Liquefied Natural Gas (NLNG) dividend, saying it was spent on fuel subsidy and not missing, as it was being speculated in some quarters. Baru said the corporation took the action following the removal of fuel subsidy two years ago and the subsequent withdrawal of some oil companies from fuel importation. According to Baru, the withdrawal was not against the NNPC Act, which empowers the corporation to fund its operations from its revenue, as the misconception

... says it is not missing arises from the fact that the nation’s lawmakers believe that the dividend is revenue that belongs to the three tiers of governments and thus the NNPC does not have the powers to withdraw the money without consulting the National Assembly. The Senate Committee on Gas Resources had last week vindicated the corporation by stating that the money was not missing from the NLNG dividend account. Bassey Akpan, chairman of the committee, and Isiaka Abdulrazaq, chief financial officer of NNPC, jointly attested to this after a meeting with the committee and NNPC officials. They both said contrary to the media reports, the issue at stake

was on the legality of the utilisation of the $1.05 billion by NNPC for the importation of fuel and not on whether or not the money is missing. The meeting was set up to investigate the utilisation of the money by NNPC to augment under-recoveries in fuel importation. The committee chairman in the course of the investigation also queried the corporation on why there was a second withdraw of another $1.5 billion based on the documents with the committee. But the chief financial officer responded by saying the transaction was an internal entry by the Central Bank of Nigeria (CBN) regarding the movement of the fund from the NLNG dividend account to

another, and not payment to a third part. Explaining further on the transaction, Dapo Sequn, group managing director, Treasury, stated that there were two NLNG dividend accounts. He identified them as NLNG bank of International Settlements (BIS) Account and NLNG Standard Chartered Bank Account. He said following the adoption of the Treasury Single Account policy of the Federal Government, deposits money banks holding NLNG dividend funds were directed to transfer them to the CBN. The CBN, according to him, told the NNPC that it had deposited the funds in the NLNG BIS Account, which he said was not operational. The NNPC boss said the No-

vember 30, 2016, memo cited by senator Bassey Akpan simply asked the CBN to transfer the money from the BIS Account to the NLNG Standard Chartered Bank that was operational. “So, CBN did move the money pursuant to our instruction, and then subsequently, CBN reversed that transaction which was still between NLNG accounts. The money never left the NLNG dividend account; it moved from one NLNG dividend account to another NLNG dividend account,” he said. The NNPC CFO said the clarification became necessary following misleading reports in the media that the money was missing. The reports, he said, were sending wrong signals about the government to its foreign partners and potential investors.

BUSINESS DAY

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Opinion

PMB: Season’s greetings! FRANKLIN NNAEMEKA NGWU Dr Ngwu is a Senior Lecturer in Strategy, Corporate Governance and Risk Management, Lagos Business School, Pan-Atlantic University.

rrespective of religious affiliation, we are really in a season of celebration andto Nigerians and our dear President, His Excellency Muhammad Buhari, I say a big Season’s Greetings! For Christians, the birth of Jesus Christ, born without the original sin, signifies a rebirth, hope, love, redemption and oneness. Enhancing this special feast of nativity is the New Year when we thank the Almighty God for guiding and protecting us to a new year, for blessing us with the gift of life in this most precarious journey of existence. So it is a period worthy of celebration but the question is if Nigerians are really happy and celebrating! Your Excellency, across the country, the story is same! Nigerians are sad, hungry, intensely divided, losing hope and love for one another and desperate for their voices to

THE PUBLIC SPHERE

CHIDO NWAKANMA 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.

he implications of the unemployment data released by the National Bureau of Statistics are sobering. They should inspire a full National Conference on Labour and Nigeria’s Future to identify the issues and plot a national roadmap to tackle the menace of growing unemployment. The aspect of the matter concerning youth unemployment should make Nigerians raise the alarm. Twenty-three percent of the workforce is currently unemployed, in a negative progression from the 18.8% in the third quarter of 2017. Those in parttime employment and underemployment constituted 20.1 per cent of the workforce. It was a marginal improvement on the 21.2 per cent of 2017. NBS records a marginal

be heard and their numerous socio-economic problems addressed. They are increasingly feeling frustrated with the inability of the government to appreciate and tackle their lamentable situations. An encounter on the 20th December with a level 10 civil servant from one of the South West states properly captures the mood of majority of Nigerians. Without salary for about four months now, he visited Lagos to solicit for financial assistance from some of his relations. After receiving half bag of rice from one of his relations, he was full of joy which attracted my attention and our chat that day. He was happy that he will be able to cook rice and stew for his family of five for Christmas but very uncertain on where to get money to pay the school fees for two of his children in the university and two in the secondary school in January. With increasing debt used to support his children and unemployed wife, he lamented that he has lost the respect and regard of his relations and friends as he more of a liability to them. He beseeched me to help get jobs for his wife and two younger relations who are dependent on him. Your Excellency, Nigerians are sad that even when they

are ready to be underpaid and underemployed, there are no jobs! This was recently

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Your Excellency, while there is no doubt of your good intentions for Nigeria, it is regrettable to inform you that the outcomes and performance of your government is not very convincing. Things are falling apart!

affirmed by National Bureau of Statistics (NBS) that unemployment has gone up to about 23.1% which translates to about 21 million Nigerians unemployed but willing to work. 21 million is not a small number! While the population of Senegal is 15.85 million, Niger 22.3 million, Mali 19.1 million, Bukina Faso 19.7 million, Cameroon

24.05 million, Cote d’ivoire 24.29 million, Benin republic 11.49 million and Togo about 8 million. If the unemployed Nigerians were to be a country, they will be the fifth most populated country in the 17 countries that make up West Africa. In their 2019 report, World Economic Forum describes our unemployment situation as time bomb waiting to explode! It is a very serious situation and more troubling is the absence of a clear and concrete plan to address the challenge. Your Excellency, we had hoped that some of these challenges will be properly addressed using the 2018 and 2019 budgets. Unfortunately, it has not been so. While the 2018 remains largely unexecuted, the 2019 budget seems to create more uncertainty and risk than solutions. Even though the behaviors of some of our honorable members during the 2019 budget presentation are highly condemnable, it shows the level of division, frustration anddecadence of our dear country under your watch and leadership. It is sad and should not be so! Not only was a clear explanation as to the delay in presenting the 2019 budget not properly offered, read-

ing through it shows that it is overly ambitious and the key breakdown uninspiring. A situation where a further loan of about N1.649 trillion will be secured to fund the projected N1.859 trillion deficit even with the cries and warnings of our increasing unsustainable debt is difficult to understand. With the additional borrowing which will escalate our total debt to N24 trillion, our debt servicing alone for 2019 is put at N2.4 trillion from N2.0trillion in 2018. Using $60 per barrel and daily production of 2.3 million barrels gives an illusionary impression that Nigeria is immune to both internal and external factors that are likely to emerge as we enter 2019. The most disturbing aspect of the budget is the allocation of only N2.031 trillion and N4.04 trillion for capital and recurrent expenditures respectively. From my readings and research of budgets of other developing and emerging markets, I have never come across where meaningful and inclusive growth is achieved using such ratio between capital and recurrent expenditures and a debt service allocation almost the size of the capital expenditure. Moreover, a

further problem with Nigeria is the limited execution of agreed budgets. For instance, of the N2.87 trillion budgeted for capital expenditure in 2018, only N821 billion have been released as at December 2018. As execution of the capital expenditure remains the fulcrum for sustainable development including job creation, it is difficult to see how jobs most urgently needed will be created. It is well known that our other socioeconomic problems such as insecurity, communal crises and violence, kidnapping cannot be disassociated with the high and unbearable unemployment level of our dear country. Your Excellency, while there is no doubt of your good intentions for Nigeria, it is regrettable to inform you that the outcomes and performance of your government is not very convincing. Things are falling apart! As we go into 2019, I deeply implore you to have a rethink of the strategies that have been used to govern our dear country. It seems that the economic, social and political models used so far require proper rejigging if sustainable and inclusive growth will be achieved from 2019 onwards!Please be assured of our prayers and best wishes!

Technology ate our breakfast and is coming for our lunch increase in total employment numbers. It grew from 69.09m in third quarter 2017 to 69.54million in Quarter 3, 2018. The significant fact though is that the unemployment numbers overall increased from 17.6million last year to 20.9million in 2018. Beyond the headline figures are changes, mostly slow but sometimes fast, affecting the workplace and the role of humans in production. Technology is in the mix. Technology is an enabler of many positive developments. For the worker, technology has offered mixed blessings. It is more so in Nigeria and other parts of Africa. Technology has eaten the breakfast of the worker in many places. It is changing the nature of work and the role of humans. Many assured jobs of the past are disappearing before our very eyes. It cuts across many industries and occupations. I shake my head ruefully each time I drive to the famous newspaper stand at Ojuelegba, in Surulere, Lagos. It is difficult to recognise the once bustling place with vendors who earned their living with hope in their eyes. Their stock items and the stock count have reduced considerably. Patronage is a far cry from what it was even as recently as five years ago. Only

die-hards now come, some to buy and many to just take a peek or do the free reading. Only one stand offered international magazines last week, an index of patronage. A communication professional in a major multinational informed me that the company no longer buys newspapers for directors. They do content summaries and direct their senior executives to online versions. Only one online platform in Nigeria charges for access, a courageous act based on market analysis of their offering and niche. The readers have gone online and to various mobile platforms. Research by Hootsuite says many of them are on WhatsApp, the number one social media platform in Nigeria. It is a formidable platform from the stable of Google, offering text, audio and video possibilities. So it is now carrying most of what other platforms offered. Even a bank has created a space on the platform. It has implications for labour. The Accounting or Finance Departments of many corporates used to have many bookkeepers. Technology has decimated that class of workers as their function is nearly redundant. Banks are threatening to close rather than expand branches in many towns for the same reason of

technology rendering many redundant and unnecessary. Lawyers find that the availability of templates everywhere threatens the documentation and agreement function that fetched some income. Who needs a lawyer unless compelled to notarise it? The development threatens many professions. The “confluence of Big Data, connectivity and artificial intelligence”, as described by Israeli Prime Minister Benjamin Netanyahu is propelling positive developments in innovation, productivity and workforce numbers

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Technology is in the mix. Technology is an enabler of many positive developments. For the worker, technology has offered mixed blessings. It is more so in Nigeria and other parts of Africa

in many nations of the world. Our lack of the framework for any of that means that it is causing the opposite here. Humanity and nations of the world always struggled with the consequences of technological change. The typewriter made way for the word processor and eventually for the computer — each development built on what existed. The anthem of my secondary school, United Christian Secondary Commercial College, Apapa captured it memorably when it stated that “the subjects you shall master here are but the tools of future life”. We learnt typewriting and shorthand, many of us with higher ambitions protesting that we do not want to be secretaries. In the university, the shorthand became an asset, and in later years with the computer, the typewriting skills became invaluable as everything depended on the QWERTY keys. Foundations matter. Nigeria now does not have the foundations to compete in the fast-changing world technology is creating. The consequence is a contribution to the growing unemployment and underemployment numbers. We need to look at the related numbers for workforce quality. Our workforce is largely uneducated, consisting of persons with primary and

secondary education in the majority of over 70%. How are we going to compete in the VUCA economy based on science technology engineering and mathematics? VUCA is the acronym to describe the current global situation characterised by high levels of volatility, uncertainty, complexity and ambiguity. In 1996, before VUCA came into common usage, Intel CEO Andrew Grove advised that only the paranoid will survive. His book, Only The Paranoid Survive: How To Achieve a Success That’s Just a Disaster Away advised company bosses on the imperative of adapting or dying in the face of massive change.That counsel for corporates applies now to Nigeria and its citizens. Citizens must now develop high levels of positive paranoia for themselves and their future. Learn new skills for today and tomorrow. Check in on the trends in your profession or business. For the young, a certificate is clearly no longer enough even as we do not have enough persons with higher education to drive the entrepreneurial and innovative economy required to pull us out of unemployment. Before the national conversation, do something for yourself. May your 2019 bring more positives.

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