BusinessDay 27 Mar 2019

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MTN suit challenging legality of AGF tax claims adjourned till May 7 OLUFIKAYO OWOEYE

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Federal High Court sitting in Lagos has adjourned till May 7 a case between MTN and the attorney-general of the federation (AGF), Abubakar Malami.

MTN Nigeria Communication Ltd had filed a suit last year challenging the legality of the AGF’s assessment of its withholding tax and value-added tax.

Malami alleges that MTN owes $2 billion in back taxes over a 10-year period, relating to the importation of foreign equipment into the country as well as payments to the suppliers of the said equipment.

The telco giant has denied the allegations.

In its preliminary objection, the AGF argued that the plaintiff, in seeking redress to the subject matter, has just three months from the date of the cause of action arose to institute the action.

He argued that the plaintiff Continues on page 38

Inside First-time governors’ biggest challenge: fixing states’ finances P. 2

L-R: Mohammed Sanusi II, the Emir of Kano; Ken Ofori-Atta, Ghanaian minister of finance, representing the president of Ghana; Oba Otudeko, chairman, FBN Holdings plc; Dolapo Osinbajo, wife of the vice president; Zainab Ahmed, minister of finance; Adesola Adeduntan, managing director, FirstBank of Nigeria Limited, and Ibukun Awosika, chairman, at the lecture to commemorate the 125th anniversary of the bank in Lagos.

Pic by Pius Okeosisi

CBN’s surprise rate cut questions FGs broader reform goals A HOPE MOSES-ASHIKE, ONYINYE NWACHUKWU, LOLADE AKINMURELE & MICHAEL ANI

nalysts are scratching heads and wondering about the broader reform implications after the Central Bank of Nigeria (CBN) unexpectedly cut its monetary policy rate (MPR) by 50 basis

50bps move aimed at boosting growth

points (bps) to 13.5 percent from 14 percent, Tuesday, citing the need to boost growth.

The move by the CBN to cut rates at this time creates more questions than it answers, according to Razia Khan, Africa chief economist at Standard

Chartered.

“While FX stability has benefitted both from rising oil prices and rising portfolio inflows into Nigeria, the cut today raises important questions about the government’s broader reform intent,” Khan said, pointing to

two concerns.

First, the MPR cut comes following Senate approval of a sizeable minimum wage increase.

Second, it remains to be seen what the move suggests about Continues on page 38

2 BUSINESS DAY NEWS

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Wednesday 27 March 2019

Cracks in APC as fight for positions in 9th Assembly heightens

…We will field candidates for presiding officers’ seats – PDP OWEDE AGBAJILEKE, Abuja, & MICHEAL ANI

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racks within the ranks of the All Progressives Congress (APC) Senate Caucus emerged on Tuesday as the immediate past Senate Majority Leader, Ali Ndume, faulted the party’s endorsement of Ahmed Lawan as Senate President in the Ninth Assembly.

Ndume, the senator representing Borno South, said the right to elect presiding officers in the National Assembly rests with the senators-elect and not with a political party.

The APC lawmaker who has indicated interest to run for the office of the president of the Senate in the Ninth Assembly, cited Section 50 (1) (a) of the 1999 Constitution (as amended) to buttress his argument.

The section stipulates that “there shall be a President and Deputy President of the Senate who shall be elected by the members of that house from among themselves”.

This is even as the main opposition People’s Democratic Party (PDP) has said it would field candidates for the positions of presiding officers in both chambers in the incoming National Assembly, arguing that its members have the constitutional right to contest such positions when the Assembly is inaugurated in June.

In a statement on Tuesday, Kola Ologbondiyan, PDP national publicity secretary, cited section 50 of the 1999 Constitution (as amended), noting that the positions of the Sen-

ate president, speaker of the House of Representatives, deputy Senate president and deputy speaker are not the exclusive preserves of any political party, but a constitutional right of every elected lawmaker in both chambers.

Recall that the APC was in 2015 rocked with controversies surrounding the party’s choice of both the Senate president and the speaker of the House of Representative that saw Bukola Saraki and Yakubu Dogara defy the party’s endorsements.

The APC had earlier tipped Femi Gbajabiamila as the speaker of the House of Representatives and Ahmed Lawan as the president of the Senate.

Saraki, however, clinched the Senate president position after he shunned a caucus meeting called

by President Muhammadu Buhari to resolve the dispute in the party.

Saraki was made Senate president after garnering the block support of the PDP and some APC senators who broke ranks with their party.

In a similar vein, PDP members of the House of Representatives threw their block votes behind Yakubu Dogara, selecting him as speaker over the APC-endorsed Gbajabiamila.

To avoid the repeat of history, APC National Working Committee (NWC) Monday met with the party’s caucus in the House of Representatives at the Yar’Adua Centre, Abuja, where it was resolved that all

Continues on page 38

PenCom to admit 69m workers into micro pension …As Buhari launches plan Thursday JOHN OSADOLOR

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s part of the initiatives to bring all working Nigerians into the financial inclusion net, President Muhammadu Buhari will on Thursday launch the Micro Pension Plan (MPP) in Abuja.

The MPP which is an initiative of the National Pension Commission (PenCom) is aimed at the provision of pension services to self-employed persons in the informal sector and employees of organisations with less than three staff.

The informal sector constitutes an estimated 69 million workforce in the country and represents an estimated 88 percent of Nigerian workers that lack pensions and safety nets for their old age. The goal of the Commission is to achieve coverage of 30 million people in the informal sector by 2024.

The formal launch is the official flag-off of the plan and attests to the objective of the current administration to provide ample opportunities for financial inclusion and economic stability for more Nigerians in the informal sector.

This initiative gives the self-employed professionals, entertainers, lawyers, doctors, entrepreneurs, artisans, casual workers, among others opportunity to save for pension, according to a statement from Pen-

Com signed by its general manager, corporate communications.

The launch signifies the commencement of activities that will culminate in the full implementation of the MPP. Accordingly, the National Pension Commission and the pension operators will continue the education and sensitisation of the public through robust campaigns across traditional, social and digital media while registration of contributors will follow in subsequent months.

The statement said PenCom remained committed to good corporate governance and high ethical standards that will ensure the success of the Micro Pension Plan.

Contributors to the plan must be above 18 years old with defined sources of income, resident in Nigeria, self-employed persons that belong to a trade, profession, cooperative or business association, according to PenCom guidelines seen

by BusinessDay. Others who are eligible as contributors are self-employed persons with a business registration as a company, partnership or enterprise, employees operating in the informal sector who work with or without formal written employment contracts, and other self-employed individuals.

•Continues online at www.businessday.ng

L-R: Kalyana Sundaram, CEO, Transcorp Power Limited; Helen Iwuchukwu, group company secretary, Transcorp plc; Oscar Onyema, CEO, Nigerian Stock Exchange (NSE); Valentine Ozigbo, president/CEO, Transcorp plc; Owen Omogiafo, MD/CEO, Transcorp Hotels plc, and Chris Ezeafulukwe, executive director, Transcorp plc, at the closing gong ceremony by the management of Transcorp plc, as part of their fact behind the figure presentation at the NSE in Lagos, yesterday.

Pic by Olawale Amoo

First-time governors’ biggest challenge: fixing states’ finances MICHEAL ANI

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t may turn out that winning the March 9 election was just the easy part for governors-elect in many of Nigeria’s states who will be sworn in for the first time on May 29 this year. The bigger task will be fixing the finances of their states which are currently in a precarious state.

Amid declining allocations from the Federation Account as well as meagre Internally Generated Revenue in many of the states, the newlyelected governors will need financial ingenuity to match revenue shortfall against ballooning debts incurred by their predecessors.

The task may have just got more

herculean with the National Assembly’s approval of N30,000 as the new national minimum wage, a 67 percent hike from the current N18,000. Many of Nigeria’s states have been unable to pay the N18,000 wage promptly.

From the election results declared by the Independent National Electoral Commission (INEC), BusinessDay can confirm that a total of 11 current governors will be handing over to new governors come May 29. These include the governors of Lagos, Borno, Gombe, Imo, Kwara, Nasarawa, Ogun, Oyo, Yobe, Zamfara and Bauchi.

Of these states, only Yobe State recorded total debt-to-revenue ratio of less than 100 percent despite turn-

ing out the least IGR (N2.9 billion) as of nine-months 2018, according to data obtained from the National Bureau of Statistics (NBS).

A debt-to-revenue ratio of less than 100 percent means that a state can conveniently offset its debts from its current income stream. This means Yobe State during the period under review was able to contain its debt profile below its revenue.

The remaining states have their debt-to-revenue ratios well above 100 percent. Consequently, analysts say the incoming governors in these states have to look inward and deploy other means to grow their revenue base while cutting down on their

Continues on page 38

Gas emerges world’s favourite fuel, but Nigeria plays catch-up ISAAC ANYAOGU

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atural gas emerged as the world’s fuel of choice, posting the biggest gains and accounting for 45 percent of the rise in energy consumption in 2018, according to a new report by Paris-based energy think tank, International Energy Association (IEA), but poor policy and weak market rules constrain growth in Nigeria.

The IEA in its latest assessment of global energy consumption and energy-related CO2 emissions for 2018, which provides a high-level and up-to-date view of energy markets, including latest available data for oil, natural gas, coal, wind, solar, nuclear power, electricity, and energy efficiency, the organisation said global energy demand rose 2.3 percent with gas accounting for most of the growth.

“We have seen an extraordinary increase in global energy demand in 2018, growing at its fastest pace this decade,” Fatih Birol, IEA’s executive director, said.

“Last year can also be considered another golden year for gas, which

accounted for almost half the growth in global energy demand,” Birol said.

Led by United States and China, global gas demand expanded at its fastest rate since 2010, with year-onyear growth of 4.6 percent, the second consecutive year of strong growth, driven by higher demand and substitution from coal, the IEA said.

Electricity demand grew by 4 percent with renewables responsible for half of it; oil demand grew 1.3 percent; coal consumption rose 0.7 percent, and nuclear energy rose by 3.3 percent in 2018.

Though Nigeria has the world’s ninth-largest volume of proven gas reservesof187TrillionCubicFeet(TCF) and also ranked fourth among LiquefiedNaturalGas(LNG)exportingcountries, according to the International Gas Union (IGU), supply to the local market hovers around 1.3BSCFD, one of the lowest among its OPEC peers.

Yet, the country has a huge need for gas to drive industrialisation and deliver energy to over 80 million Nigerians without access to power.

Absence of legally binding, bankable long-term gas supply agreements, inadequate gas transpor-

tation infrastructure, absence of guarantees, credit enhancement for gas payments and absence of commercial pricing are key constraints in the Nigerian gas market, analysts say.

The roadmap for the gas sector created under the Nigerian Gas Policy has not delivered on expectations, operators say. The National Gas Policy created by the Petroleum Ministry is yet to have an impact as it has not been operationalised, limiting investment into the sector.

However, a rash of new gas deals – including $500 million Greenville LNG project in Rumuji, Rivers State, the final investment decision on Assah North/Ohaji South gas project, and the newly commissioned Egbaoma gas processing plant in Delta State – suggests Nigeria is turning the corner from treating gas as irritant in the search for fuel.

“To some extent, Nigeria, which is a gas province with a drop of oil, is slowly beginning to realise the potential of natural gas,” said Olufola Wusu, energy lawyer at Megathos Law Practice.

•Continues online at www.businessday.ng

Wednesday 27 March 2019

BUSINESS DAY

3

4 BUSINESS DAY NEWS FAAC disbursement to FG, states, LGs grew 1.7% in February 2019 www.businessday.ng

ISRAEL ODUBOLA

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he Federal Account Allocation Committee’s (FAAC) disbursement to Federal, State and Local Governments in February 2019 appreciated by 1.72 percent to N660.37 billion compared with N649.19 billion shared in the previous month, according to National Bureau of Statistics (NBS).

Funds disbursed in February were N11.18 billion higher than N649.19 billion shared among the three tiers of government in January.

Revenue generated from the statutory account dipped 9.2 percent to N497.12 billion in the review period compared with N547.46 billion in January.

Also, revenue from value added tax notched higher by 3.7 percent to N104.46 billion, while exchange gain difference pared 32.76 percent to N654.7 billion in February. Meanwhile, N8.12 billion was recovered from excess charges.

The Federal Government

received N275.33 billion from the funds disbursed. State and local governments got N182.17 billion and N136.88 billion, respectively, and eight oil-producing states shared N48.49 billion as 13 percent derivation fund.

The N275.33 billion share of the Federal Government, which is 1.9 percent higher compared with N270.17 billion received last month, comprised N232.78 billon from statutory account, N15 billion from VAT, N4.28 billion excess charges recovered and N306.5 million from exchange gain difference.

A further breakdown of Federal Government revenue allocation showed that N221.33 billion was disbursed to the consolidated revenue account, N4.94 billion to derivation and economy, N2.47 billion to stabilisation fund, N5.9 billion to the Federal Capital Territory (FCT), and N8.3 billion for natural resource development.

The composition of N182.17 billion to 36 states government revealed that N91 billion came from statutory account, N35 billion

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from VAT, N1.67 billion and N119.8 million from excess bank charges recovery and exchange gain difference, respectively.

Delta State retained its spot to record the largest net recipient of N18.67 billion in February followed

by Akwa-Ibom (N14.51bn), Rivers (N13.05bn), Bayelsa (N11.61bn), while Osun received the least net allocation of N1.83 billion in February.

For the 774 local governments, N91.02 billion was realised from statutory account, N119.85 million from exchange gain difference, N35.01 billion from VAT and N1.6 billion from excess charges recovered.

Out of the N48.49 billion set aside as 13 percent derivation fund, N41.19 billion was realised from the statutory account and N72.89 million from exchange gain difference.

Delta State (N13.05bn) got the largest allocation from the 13 percent derivation fund, followed by Akwa-Ibom (N9.42bn) and Bayelsa (N8.03bn), and Abia (N539.2m) had the least share from the fund.

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Wednesday 27 March 2019

Mapel Travel partners WCEP, Chetcuti Cauchi Advocates to provide dual citizenship opportunity SEGUN ADAMS

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apel Travel Limited, a major provider of travel services to various individuals and corporate clients in Nigeria says it has diversified its service offering to provide opportunities for obtaining dual citizenship and enjoy the benefit of accessing many countries in the world. ‘’A second citizenship means more opportunities, as one will be able to access more than 170 countries worldwide visa-free and conduct business and investments more efficiently’’ Mapel Travel stated in a press release sent to BusinessDay Media.

In achieving this, Maple Travel has entered into a strategic partnership with key experts in the industry in order to ensure that the process is smooth and hassle-free for applicants.

One of its key partners of the travel services company is the World Citizen Equity Partners (WCEP), a leading company specialising in the field of citizenship by investment.

The firm provides various opportunities and assistance to individuals during the process of the investment programme.

WCEP has efficiently provided dual citizenship to over hundreds of clients from over thirty-three countries all over the Middle East, Asia, Africa & Europe and holds offices in Switzerland, Canada, London, Malta, South Africa, Ghana, Nigeria, Cyprus, Angola and Dubai.

“World Citizen Equity Partners can help you obtain your second citizenship through the fastest path possible,’’ Mapel Travel said.

Chetcuti Cauchi Advocates, another partner on the project, is a full-service firm with offices in Malta, Cyprus, London, Zurich and Hong Kong.

The law firm offers highquality legal services and advice. It also provides legal representation in all aspects of corporate law, intellectual property, trusts, international tax, immigration law and property law.

In addition, the firm provides residency and citizenship by investment programmes with a holistic approach to various interna-

tional clients seeking better opportunities.

As the world is becoming increasingly globalized, dual citizenship provides valuable opportunities to live and work in any countries of one’s choice.

One of the main benefits of dual citizenship is that, by obtaining a second passport, one is also attaining visa-free travel globally.

Moreover, a second passport signifies a better future to all the family and especially better educational institutions and work opportunities for the children. Dual citizenship will also provide access to better healthcare services and offer financial security.

Maple Travel Limited is one of the leading travel companies based in Lagos, Nigeria. The company provides travel services to various individuals and corporate clients.

The company has included value-added services to high net worth individuals by offering citizenship by investment programmes, in addition to its various services some of which includes travels and tour, meet and greet services, visa consultation, airport transportation and security, and car services.

Wednesday 27 March 2019

BUSINESS DAY

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6 BUSINESS DAY NEWS

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Policy reforms, liberalisation top AIHN 4-point agenda for capital market … holds business lunch interaction tomorrow HOPE MOSES-ASHIKE

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he Association of Issuing Houses of Nigeria (AIHN) Tuesday disclosed its four-point agenda for the country’s capital market, some of which include policy reforms and liberalisation of oil and gas sector.

Some of the other agenda include power sector reforms and private sectorled infrastructure development, which will be discussed at its business lunch interaction scheduled for tomorrow.

Speaking at a press conference in Lagos to announce the event, Chuka Eseka, president, AIHN, said across various aspects of the economy, the government must be committed to promoting market-based ideologies as indispensable tools to liberate the economy from the shackles of inefficiency.

Eseka noted that most industrialised and leading economies and capital markets around the world operate on sound market prin-

ciples, adding that Nigeria must not be different if the capital market would help raise the necessary finance needed for growth and development.

On liberalisation of the oil and gas sector, he said, “A low hanging fruit to enhancing capital market growth is liberalising upstream and downstream operations of the oil and gas sector. When the economics is right, the capital market can easily provide the funding needed to grow the sector. In addition, the capital market can serve as the avenue to attract both local and foreign capital essential for driving private sector-led growth and development.”

The power sector is in dire need of funding that the sector cannot attract in its current state, he said, stressing that critical market reforms, most especially in the areas of tariffs, are needed to re-focus the sector and drive it to reach its full potentials.

“For instance, if the entire value chain including transmission is decentral-

ised and opened up to the market, GENCOs and DISCOs can get listed to raise capital by way of IPO. This sector is crucial in our capital market agenda setting in the next four years,” he said.

Through PPP arrangements, the private sector can help expand the country’s infrastructure stock levels, which has been estimated to require up to $50 billion annually over the next 60 years, he assured.

“This is a capex level that the government’s revenue and borrowing capacities cannot shoulder. Therefore, if infrastructure gap must be bridged, the capital market must be central to the strategies deployed.”

Also speaking at the occasion, Babatunde Obaniyi, director, publicity and marketing, AIHN, said the business lunch interaction would emphasise on the importance of the capital markets to the development of the Nigerian economy in continuation of the ongoing national narrative on the growth/prospects of the Nigerian economy.

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Wednesday 27 March 2019

Wednesday 27 March 2019

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7 NEWS

BUSINESS DAY

US applauds Edo’s economic reforms, fight against human trafficking ...as Obaseki congratulates Otaigbe on Jefferson Science Fellowship award

T L-R: Bukola Oluyadi, head, enterprise transformation; Ebun Alozie, MD/CEO, Care Organisation Public Enlightenment, COPE, Cancer-focussed NGO; Kehinde Gbelee, VP, COPE; Bola Adesanoye, head, sustainability, COPE, and Tutu Aliu, head, corporate banking (Oil & Gas), at the presentation of Prosthetic breast, bras and books to cancer survivors by Polaris Bank in Lagos.

FG’s $406.7m suit against Shell to resume June 6 … as Bayelsa community urges court to halt renewal of OML 29 lease DIPO OLADEHINDE

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n an alleged deprivation in crude oil shipment brought by the Federal Government against Shell Western Supply & Trading Limited, a Federal High Court, Lagos, will on June 6 resume trial in the suit before Justice Mojisola Olatoregun.

According to report, the trial was stalled on Tuesday following absence of the judge said to be on another official assignment.

Shell Petroleum Development Company and its subsidiary, Shell Western Supply & Trading, are defendants in the suit the Federal Government is claiming $406.7 million, said to be for crude oil lifted by the defendants in 2013 and 2014 as shortfall of money paid by them into government account.

The government said the Anglo-Dutch company did not publicly or under-declared crude oil shipments

during the period while also stating that forensic analysis of bills of laden and shipping documents showed that Shell cheated Nigeria with regard to the revenue.

According to the government, professionals tracked global movement of Nigeria’s hydro-carbons, including crude oil and gas, and identified the companies engaged in practices that led to missing revenues from crude oil sales and gas export to different parts of the world.

The Federal Government said the tracking also revealed discrepancies in the export records from Nigeria with the import records at US ports. It averred that the undeclared shipments from January 2013 to December 2014 brought the total value of the entire shortfall to $406.75 million.

Federal Government also alleged that the defendants failed to respond to its letter seeking clarification as regards the alleged discrepan-

cies. In another court related case, people of Nembe-Bassambiri in Bayelsa State on Tuesday urged the Federal High Court, Yenagoa, to halt the renewal of lease for OML 29 to Aiteo pending the outcome of a substantive suit before the court.

The development is sequel to plans by the Minister of Petroleum Resources to renew the lease of OML 29 oil bloc to Aiteo for $82 million without regard to the position of the community in Suit No. FHC/ YNG/CS/62/2015.

In an 18-paragraph motion on notice, the plaintiffs who are representing OML 29 host communities in their application sought an order restraining the Minister of Petroleum Resources from granting any application for the renewal of OML 29 “beyond the subsisting 30-year term. “The lease on OML 29 will expire on June 30, 2019, and the Nembe communities want the pending hearing and determination of

the substantive suit before the lease is renewed.

“They also averred that without allowing the court to decide on the interlocutory injunction, the 5th Defendant went ahead to make payments to the 2nd Defendant through the Department of Petroleum Resources.

“The $82 million payment was made in five tranches of $18,455,000, $9,277,500, $9,277,500, $6,866,468.23, $20 million and $18,230,000.

“The payments were made on 22nd January, 2018, 22nd January 2018, 6th November, 2018, 14th November, 2018, 18th December, 2018 and 22nd January, 2019, respectively. “The conduct of the 5th Defendant/Respondent in ignoring the suit to make payments for the renewal of the OML 29 is capable of generating unprecedented violence in our Kingdom within the OML 29 acreage,” the representatives of the community said.

Access, Stanbic, UBA, Zenith grow assets by N2.28trn IFEANYI JOHN

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he big money lenders have released financial statements detailing 2018 performance and the asset base of four of five top lenders, who all posted significant growth in profits, have increased by a total of N2.28 trillion.

Access Bank and United Bank for Africa grew total assets by an average of 20.22 percent while Zenith Bank and Stanbic IBTC grew total assets by a combined N637.7 billion leading to a combined asset base of N17.44 trillion for the four banks in 2018 from N15.15 trillion in 2017.

Guaranty Trust Bank was the only bank in view that saw its assets shrink by N63.8 bil-

lion among its peers but still managed to grow profits by 10 percent.

BusinessDay analysis of top tier bank financials show that the rapid growth in total assets was driven by two of the five top lenders in question. Access Bank and United Bank for Africa grew total assets the fastest, as a combined N1.65 trillion was added to their books during the 2018 financial year. This was buoyed by an average 37.65 percent increase in financial assets and 35.6 percent more cash or its equivalent on their balance sheet.

The two banks also grew their loan book by an average of 3.55 percent, bringing the total loans and advancements of the two banks to N3.86 trillion at the end of the

2018 financial calendar from N3.73 trillion in 2017.

As the race to N6 trillion in assets is up to Zenith Bank for the taking, the victory might be short-lived when the Access-Diamond merger is complete. With Access Bank’s growth trajectory in terms of total assets, the new entity that will be birthed from the merger could easily see a N6 trillion asset base even after all bad loans from Diamond Bank are written off.

Analysts from EUA Intelligence are of the opinion that the total asset base of the combined entity, from the legally complete marriage of Access and Diamond, will be in the tune of N6.3 trillion.

This estimate had taken into account the write off of all non-performing loans of Dia-

mond and an additional N180 billion provision in order to be compliant with IFRS 9.

These assets can only show the true financial position of a business when we juxtapose them with returns generated from said assets.

Thus, the return on average assets (RoAA), which is a metric that shows how well these companies sweat their assets over a period of time, is required. On this scale, GTBank far outshines its peers as it generates N5.6 of profit on every N100 worth of assets in their balance sheet.

The closest to this performance is Stanbic IBTC with 4.9 percent RoAA followed by Zenith Bank (3.33%), Access Bank (2.10%) and UBA ends the list by making N1.7 profit on every N100 worth of asset.

he Charge d’ Affairs and Deputy Chief of Missions United States (US) Embassy in Abuja, David Young, has applauded the Edo State government’s well-articulated efforts in creating jobs for youths as well as initiatives to curb human trafficking and illegal migration.

Young, who made the submission during a courtesy visit to the Government House in Benin City, Edo State, commended the state government’s efforts, noting, “We are here to talk about your plans to revitalise the economy and create jobs and opportunities for young people.”

The US diplomat said the state government through the Edo State Taskforce Against Human Trafficking (ETAHT) was working tirelessly to combat trafficking in persons, applauding “the excellent effort and steps taken in Edo by the inter-agency taskforce to arrest the menace.

“It is commendable that the state government signed the anti-human trafficking law and set up the Edo State Taskforce Against Human Trafficking. We salute the Taskforce. We also commend the anti-trafficking law which moves to codify prosecution for those involved in trafficking in persons.”

The delegation is in the

state to explore areas in which it can provide support to the government to prevent young people from falling victims of human traffickers.

He also praised the collaboration between the state government and the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), stating, “We commend the information sharing and coordination on prosecution with NAPTIP in the fight against trafficking in persons which are in line with the three P’s strategy of Prevention, Protection and Prosecution, to move against trafficking, a horrific crime with adverse effect on young people.”

On his part, the acting governor, Philip Shaibu, noted that the state government realised that “the only way to move the state forward is to keep the youth engaged.”

Shaibu blamed human trafficking on bad governance in the past, which caused the people to lose hope in the country, noting that the state government was changing the narrative with its economic reforms and skills development programmes, such as EdoJobs, agricultural activities, and also in the Public Works Volunteers (PUWOV) scheme to help in intelligence gathering for security agencies in the state.

Government hopeful to revive Ajaokuta Steel Company JOSEPH MAURICE OGU

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he Federal Government says it is currently shopping for investors with both financial and technical strength to take over Ajaokuta Steel Mill.

Ime Ekrikpo, director, steel, Ministry of Mines and Steel Development, made this known in an exclusive interview with BusinessDay. According to Ekrikpo, the government has decided not to further put in extra money into the plant, as it would amount to wasting national resources. “The efforts we are making is to say that as a matter of policy, government does not have money to sink into Ajaokuta anymore,” Ekripko reiterated.

Ajaokuta, which has been described as a national tragedy, has not produced steel since its inception 40 years ago. The director, however, expressed optimism of finding capable and qualified investors to take over the plant to perform the purpose the Federal Government intended it

to perform when it was set up in 1979. “There are people or group or consortia who have money and technical capacity to take over Ajaokuta plant and run it exactly to achieve the objective at which government set it up,” he said.

In shopping for the capable company to take over the plant, Ekripko said the government was committed to transparency and openness in its approach and selection process, saying everyone would be given fair chance but without compromising competency.

“We are now taking steps to see how we can select through due process such competent companies that can take over that plant and run it,” he said.

When operational, Ajaokuta Steel has the capacity to create jobs for Nigerians, train Nigerians as well as contribute meaningfully to the nation’s Gross Domestic Product (GDP). “Ajaokuta project will generate work for Nigerians, transfer skills, develop Nigerian skills and contribute to our national GDP,” he said.

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Wednesday 27 March 2019

Enforcement of building regulations IFC, Africa Re sign partnership deal to will stem collapse - stakeholders deepen agric insurance in Nigeria JOSHUA BASSEY

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takeholders in the construction industry say an effective enforcement of building regulations and involvement of professionals in construction will stem cases of building collapse in Nigeria.

They spoke against the backdrop of the recent collapse of a three-storey building on Massey Street, Ita-Faaji, Lagos Island, which claimed the lives of 20 people, including pupils of Ohen Nursery/Primary School that occupied one of the floors of the building.

The stakeholders drawn from registered professional bodies, gathered at a oneday public hearing on the Massey Street building collapse, organised by Lagos State government, to brainstorm on ways of ending incessant building collapse in the state. The state government had last week inaugurated a five-man investigative panel headed by Wsiu Olokunola, and empowered it to dig into the causes of the

Ita-Faaji disaster.

The professional bodies include Nigerian Institute of Architects (NIA); Nigerian Institute of Building (NIOB); Nigerian Society of Engineers (NSE); Nigerian Institute of Town Planners (NITP); Nigerian Institution of Estate Surveyors and Valuers (NIESV); Nigerian Institute of Quantity Surveyors (NIQS) and Nigerian Institute of Surveyors (NIS).

The representative of Building Collapse Prevention Build (BCPG), George Akinola, who spoke at the public hearing, identified among others, lack of comprehensive subsoil investigation before designs are done; non-adherence to designs and professional advice during construction as the cause of building failures. ‘’Lack of effectiveness of government agencies charged with the monitoring of the building procurement and production process, quackery at both pre- and post-contract stages, use of substandard materials, poor workmanship, professional incompetence, lack of maintenance, greed by

developers and contractors are major reasons for building collapse,” he said.

He also listed unrealistic construction timelines, unrealistic desires of clients, nocturnal concrete work, improper, illegal or unprocessed and unapproved change in use, lack of proper supervision during construction by relevant qualified professionals, lack of coordinated phased inspection by relevant government agencies and non-compliance to building codes as well as corruption by government officials.

Proffering solution the BCPG boss called for the involvement of architects, civil, structural, and mechanical and electrical engineers, quantity surveyors, builders and land surveyors in all building construction work in the state.

Tiammiyu Adeshina, the general manager of Lagos State Emergency Management Agency (LASEMA), said the government would begin to take in displaced persons from collapsed and marked buildings to its resettlement centre at Igando.

MODESTUS ANAESORONYE

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major effort that would boost agric insurance contribution towards food sufficiency in Nigeria has been recorded with signing of a partnership deal between IFC, a member of the World Bank Group, and Africa Re, a pan-African reinsurance company headquartered in Nigeria.

The partnership will help thousands of smallholder Nigerian farmers to easily access insurance to protect their crops and livelihoods, having benefited 75,000 farmers with $6.7 million financing in one year of operation.

Under the agreement, Africa Re and IFC’s Global Index Insurance Facility will help Nigerian insurance companies licensed

by Nigeria’s insurance regulator, NAICOM, develop agricultural insurance products, and deepen their index insurance business lines. These index insurance products will help protect farmers against environmental risks such

… target 150,000 farmers in 2 years

as drought, floods, erratic rainfall, and other natural hazards.

Index-based agricultural insurance, which pays out based on transparent parameters like rainfall and does not require costly field visits to verify losses, is an innovative and efficient way for farmers to protect themselves against losses.

Ken Aghoghovbia, Africa Re’s deputy managing director/chief operating officer, said, “We are excited to be partnering with IFC in assisting Nigerian insurers develop appropriate insurance products for small holder farmers. This initiative will certainly help move Nigeria towards its goal of food security and it is in line with Africa Re’s mission to support African economic development.”

Eme Essien, IFC country manager for Nigeria, said, “IFC’s support for affordable and accessible agricultural insurance will help Nigeria’s farmers mitigate the effects of climate-related shocks, protecting them against catastrophic losses

and unlocking access to finance. Developing a sustainable agricultural insurance industry also requires a strong commitment from regulators, such as NAICOM, who embrace innovation to help farmers manage their risks.”

Farmers with crop insurance are also more likely to access other financial products, including credit, and to invest in higher quality production inputs.

However, the traditional insurance market has largely failed to meet smallholder Nigerian farmers’ demand for affordable insurance with its high premiums and transaction costs.

IFC’s and Africa Re’s specific support to insurance companies will include helping them design specialized insurance products and develop digital platforms, so that farmers can easily view and compare index insurance offerings from various providers. IFC and Africa Re aim to provide thousands of farmers with access to insurance by the end of 2020.

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The distinctive mark of an entrepreneur according to an entrepreneur Small Business handbook

Emeka Osuji

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ntrepreneurs take risks and spread prosperity”.

These were the words of one of Nigeria’s leading entrepreneurs, Leo Stan Eke, at the weekend. I was in the group of people who had the privilege of listening to this entrepreneur; indeed a serial entrepreneur, who addressed a gathering of a mixed audience in Lagos.

It is always good to listen to those who have done what one is trying to do, or what one did sometime in the past, even if one was not quite successful in it. A second, missionary journey, even a third one, is like a second chance in life, and if anyone has to take it, he had better be more prepared than he was on the first journey. And so when people get a chance to listen to those who made it in their careers or business or trade, they do so with rapt attention.

That was exactly the atmosphere when Leo Stan spoke to this group last weekend. He had no written speech. He had no notes. He spoke off the cuff but his words resonated with the audience and came with force that can only be borne out of the confidence of a man in the know of what he is saying.

Most people may not know Leo

Stan by name but they know some of the enterprises he founded. He is a pioneer in the Nigerian Information Communication Technology (ICT) space in which he has founded many institutions that became giants in their own rights. Zinox Technologies, which is probably Africa’s leading integrated information communication technology company, is one of the groups that now include technology distribution, task systems, Yudala and many others.

So who is an entrepreneur and what distinctive qualities do we find in him?

According to Leo Stan, “entrepreneurs are called to spread prosperity”. They are a gift to their society, because the result of their enterprise is for the entire society and not themselves alone.

He tried to explain the real import of the word “called” by stating that entrepreneurs are doing a duty, which the Almighty God has called them to do. In other words, the prosperity of the entrepreneur is not meant to prosper him and his family alone. An entrepreneur is not successful on his own accord. He is on a mandate from the Creator. That mandate is to bear a burden; create something new; something for humanity. This, according to him, means that the entrepreneur must be ready to take risk the consequences of which he faces alone, but the benefit of which he must share with the rest of humanity. This presupposes some sacrifices to be made by him, and sacrifices entail pain and are resentful. The successful entrepreneur must be patient, confident in his ability and have a lot of faith in God. The fruit of the labour of the entrepreneur is for the benefit of humanity.

Leo Stan was not an invited guest speaker nor was he on a motivational speaking engagement. However, what

he said extempore resonated much more than the contents of many commissioned speeches. Nigerians have become very aware of the need to innovate and invent in order to create the Blue Oceans of their own. There has been an explosion of programmes of enterprise development and skill improvement. What has not been well articulated is the system of handholding and mentorship. The apprenticeship system, which some Nigerians, especially the Igbos, have used to survive the many misfortunes of a citizen Nigeria has paid off considerably but now needs to be more scientifically articulated, expanded and implemented on a national scale to support the fight against unemployment and quackery, especially in the artisanry space. A successful apprenticeship system should be united with our technical education system and implemented in such a way that it support or technical manpower needs.

It was a very powerful short speech by a successful innovator to a group of equally very successful people, who were brought together by circumstances and a good cause. Driving his point home, Leostan said that the basic requirements for success are courage and a giving spirit. Indeed, one needs a giving spirit to be willing to take so much risk for rewards that are for all to share. Surely, our elders are right in saying that the best way to learn a road is to ask those who travelled it recently.

Those who succeed as entrepreneurs must be courageous because the road is never smooth. There are all kinds of challenges and trials that line the road, and only those who fall and rise and dare to try again,get to the crown. Being bold is part of courage. Those who think small or, dwell in the routine calls

‘

Entrepreneurs interrogate every element of their calling.

They seek knowledge.

More importantly, entrepreneurs spread prosperity

of the day, do not break new grounds.

Entrepreneurs do not just think outside the box; they make new boxes and break traditional lines of thinking to do something differently. They are always asking questions and interrogating everything around them. They have a restless spirit that rests only when new challenges are engaged.

Successful entrepreneurs also seek knowledge. In other words, they do not fly blind. They go out to get knowledge in the fields of their interest and perfect their training wherever training is required. They are thorough and do not leave anything to chances.

“Entrepreneurs interrogate every element of their calling. They seek knowledge. More importantly, entrepreneurs spread prosperity”. Giving to good causes is also part of the nature of successful entrepreneurs, according to Leostan. They set out to conquer, not only for themselves but for humanity. Those of them that belong to organizations that require them to make financial contributions, such as in the Christian tithes, pay them with religious regularity.

Some people say that the views of successful people are easily accepted without questions. They may be right.

Would anyone question a neurosurgeon’s story of how he performed a successful operation to which they are living witnesses? I doubt it.However we view it, the fact is that successful 21st century Entrepreneurs add great impetus to a thriving economy and that technological knowledge is the tonic we need to sustain wealth, live healthier and longer.

Dr Emeka Osuji is head of the department of Economics at Pan Atlantic University Lagos. eosuji@pau.edu.ng @Emyosuji

The scourge of death: From Claude Ake to Pius Adesanmi

Tunji Olaopa

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eath makes mockery of life, and of all achievements. Death is always a tragedy since it puts a finality to existence, and ceases all possibilities.

The death of a terminal patient, a loved one, is not bearable. This is even more so when death raids the intelligentsia and takes those on whom we have hung our collective conscience.

Recently, we heard about the terrible mishap to the Boeing 737 Max 8 airplane. We started grieving because the death of 157 passengers and crew is not something we can just shrug our shoulders on and move on. Until we learnt that our dear Professor Pius Adesanmi was also on that flight, on his way to one of his many panAfricanist responsibilities across the continent.

When intellectuals and activists and especially intellectual-activists die, it is like a searing tear on the conscience of the nation. This is the way I saw the death of Professor Claude Ake in 1996.

He was also killed in a plane crash involving the death of 142 people in Nigeria.

Death leaves us so helpless and impotent.

I am certain there are so many close to Pius Adesanmi who would have wondered how they could have stopped him from taking that fatal flight. What the beloved wife and kids would be going through at this time can only be imagined.

And the deep agony of what could have been and what could have been done differently that would have been significant in altering

this terrible consequence. Imagine what those close to Ake thought when they heard about his death. Imagine the agony of those who were the last to see them before they died. Imagine the very possibility of being able to have done something that would have redirect them from that tragic path that led to their eventual demise. All this cannot be compared with the final moment of death, especially tragic ones like plane crashes—the intense awareness that life was at an end. What do you think about at the point of such sudden death? How do you console yourself? Does one even have time for consolation? How does one battle the instinct of self-preservation battling with the longing to see one’s loved ones again? These are all terrible thoughts, but they are fundamental thoughts called forth when death strikes again and again.

I once lamented the death of KunleAmuwo, one of my political science teachers and friends at the University of Ibadan. I lamented the death of Claude Ake as an intellectual-hero that confronted Nigeria’s ideological poverty in the face of the intellectual imperialism of Europe and North America. Now, it is time to lament the demise of Pius Adesanmi, Nigeria’s public intellectual par excellence.

Claude Ake’s death resonates with me on a very deep level. With him, I commenced my reflection on the significance of heroes and heroism in national affairs. And that was because his own reflection on Nigerian heroes resonates with me. In A Prophet is with Honour, a book I wrote in honour of my late mentor, Ojetunji Aboyade, Claude Ake’s short Foreword to that book left a reflective point on my intellect. Ake’s opening statement is deep: “A people without heroes cannot be civilized because it has no standards and for all practical purposes no morality.” In fact, for him, what distinguishes a nation is the national yardstick that determines what and who a nation values.

According to him, the paradox of Nigeria is that it “yearns for heroes, acknowledges none and it

devalues and derails those who could be.” With that prophetic statement, it was as if Claude Ake was already outlining the dynamics by which his own death would be defined. He would never know that he would be a victim of one of the indices of Nigeria’s governance failure and possibly leadership vindictiveness. There are so many who believed that the ADC Airline plane that crashed had the leprous hand of the power that be. We should not forget that Ake had a hand in the Ogoni insurrection, because he was a sturdy mentor to Ken Saro-Wiwa whom the Abacha military junta eliminated.

Pius Adesanmi was a social force in our collective face. He rode on the enabling wings of the social media to become our beloved gadfly, the irritating sting of which worried the Nigerian leadership to no end. And we all loved him. His acerbic pen, or precisely keyboard, did not spew forth highfalutin grammarthat fly over the head of all of us. On the contrary, he wrote many words that resonates with our perceptions and perspectives. He understood us and understood our pains and worries and frustrations. He understood our language too. When we read his many pieces on Facebook, Twitter and Instagram, we feel as if we are the one speaking truth to power.

We implicitly understand what he is saying. He was in Canada. He had lived there for a long time, but you know implicitly that he is your neighbor.

He understood the face-me-I-slap-you dynamics. He understood the angst of living in Nigeria.

He was a Nigerian to the hilt.

Now both of these intellectuals are gone.

We have been decapitated. Our nakedness as a nation is revealed by half. Every death of an intellectual avatar in Nigeria must provoke unrestrained agony in us all. One reason for this is that once a person dies, such a person can never be replaced. Everything that makes that person unique has been swallowed up by eternity. No other Claude Ake or Pius Adesanmi will ever stride on the Nigerian soil again. These two scholars and all those others who have gone—

from Tai Solarin to Chinua Achebe—represent specific configurations of boldness, perspicacity, perspectives and dynamism. So, while we can have some other scholars who would be willing to step into their shoes, these departed ones are gone forever. And so our postcolonial strugglefor freedom from our internal colonizers keeps getting tougher and tougher.

The Yoruba speaks about the role of the dream space as a meeting place for the living and the death. This is a consolation for those living. It opens up the possibility that those we have lost can still have interactional relationship with us. This is a significant point even in those studies that have investigated out-ofbody experience. The 1975 bestselling book by Raymond Moody, Life After Life, attempted to excavate the experience of hundreds of men and women who have encountered “clinical deaths” and have been revived. Several insights from his investigation allows us to come to terms with those we love but who are gone forever.

One is that after the emotional distress of being separated from their physical bodies, those who have died eventually understood what has happened, especially when they encountered what is called ‘a being of light” as well as the spiritual incarnations of friends and relatives who have gone before. When the dead person finally gets to the threshold between earthly life and the next life, he or she is forced to make a decision to either keep going or to return to earth. For Moody, most who are later revived refused to make the return journey because of the feeling of joy and peace that overwhelmed them.

Note: The rest of this article continues in the online edition of Business Day @https://businessdayonline. com

Prof. Tunji Olaopa is the Executive Vice-Chairman, Ibadan School of Government & Public Policy – ISGPP, Ibadan tolaopa2003@gmail.com, tolaopa@isgpp.com.ng

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Dapo Akande

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e shouldn’t limit our concerns about life merely to whether our compatriot still has breath in him or her or not. Life goes way beyond that.

The psychological wellbeing of a man will to a large extent determine the quality of life he’ll enjoy. Let me give you an illustration. A man given to kleptomania because very obvious signs of sticky fingers as a child were not sufficiently checked, may never truly enjoy a good quality of life, no matter how many trappings of wealth he surrounds himself with. Does this sound vaguely familiar? Have you never wondered why some of our people, especially those in public office continue to steal so voraciously, even when several generations of offspring cannot possibly exhaust the heaps of cash they’ve misappropriated? In whose book is this normal? With all the mansions scattered across the globe, harem of wives and concubines, they remain avaricious. Contentment just continues to elude them. The mind has without doubt been abused somewhere along the line. Satisfaction and contentment remain a pipe dream as they will always want more, especially when they see others with more. Contentment cannot come from what you own but from the state of the mind.

That’s why those who were sexually abused as children are far more likely to abuse other children when they grow up. Boys who witnessed their father using their mother as a daily punching bag are far more likely to

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Nigerian lives matter too...Part 2 Character Matters with Daps

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batter their wives when they grow up.

Their mind has been abused so their normal is far from normal.

Returning to the matter of the deformed who roam our streets begging for alms, Oyibo will not allow it. Not because they don’t care but on the contrary, to preserve their deserved dignity.

Secondly, to protect the psychological wellbeing of all their citizens. This is because oyibo is fully aware of the possible trauma beholding such a sight can cause. And of course, just as adults are confronted with this daily, so are children. Can this really have an adverse effect on our individual and collective psyche over time? I believe the answer is yes. To me it’s a form of psychological abuse which may lead to a diminishing capacity to feel or be sensitive, which in many ways further affirms my observation that Nigerians are so proud of their toughness. We don’t complain about such things but just take it in our stride, not realizing it actually leaves it mark on us. I liken it to a soldier who sees it all at war. Quite predictably, this will harden him somewhat. Coming back home he may find it difficult to fully relate to the distress bloody civilians feel. Being tough is not always a good thing. Where you discover soft and flexible can absorb a surprising amount of force and is not fragile after all, hard and brittle simply shatters.

Some of you may be able to relate to this. One Oga who you desperately need to see for one favour or the other tells you to see him at his office. Apparently conscious of the fact that you may have several other appointments on that day, he gives you a specific time to come, so not to keep you waiting unnecessarily.

As the one in need of assistance you arrive a few minutes early so to avoid any story that “Oga just stepped out”.

So you wait in the reception area in anticipation you’ll be called in at any time. And you wait. You continue to wait. And you wait some more. Others come way after you, see Oga and leave long before. At intervals, you ask the secretary to remind Oga you’re still

around as he may well have forgotten and with as much empathy as she can muster, she assures you Oga’s aware and will see you soon. As Oga waltzes out of his office several hours later, he sights you, offers an apology of sorts and asks you to come the next day as he’s off to an important meeting. Oga sees little wrong in having wasted the better part of your day. It’s normal.

After all, similar treatment was meted out to him while he gradually moved his way up the ladder so what’s the big deal? Truth be told, bigger Ogas than himself still do the same to him till this day. This therefore means, whatever respect I may or may not have for your time depends on who you are, your level, your status. As heinous as physical abuse often is, the damaging effects of psychological abuse are usually longer lasting as it doesn’t terminate with the direct victim only but exponentially piles up victims from one generation to the next, as unsuspecting victim after victim continues to pass it down on. A mind aware of an anomaly, if so inclined, can make a conscious effort to make sure it ends with him. A mind that is not aware will most likely do the same.

So why have we become so impervious to the pain of others? I don’t believe our leaders drive around blindfolded so they must see the suffering of the people. Neither do I believe they perform surgical operations to ensure they hear nothing for the period they spend in office. Which means they must hear about how people die on our pot hole infested roads every day.

They must also hear about the unnecessary deaths government hospitals record every day due to lack of drugs, lack of equipment, overworked doctors and nurses etc. Surely, they must hear about the increasing number of university graduates that give potential employers migraines from just trying to understand what applicants are trying to say in their job application letters.

So why does this not impel them to urgently do something about it? Their hearts appear to have been calcified.

‘

A mind conditioned by repeated abuse is highly likely to mete same out and the cycle continues

Subtle abuse of the mind from childhood, whether by parents or teachers as they hurl insults and rain curses, or even by society itself, ably supported by the neglect of successive governments, has deformed our mindset to the point where we’ve collectively accepted that if it doesn’t directly kill you then it’s okay. Sadly though, it does kill us. If it doesn’t take our lives, it gradually takes away our God endowed ability to empathise and our sense of humanity, just as it also takes away our dignity and even any expectation to be treated with such. Nigerian lives do matter too.

When a global survey adjudged Nigerians as the happiest people in the world some years ago, I for one didn’t regard it as complimentary at all. If anything, I perceived it as poking fun at “these black people” because it implies we continue to smile and adapt, much to our detriment, even in the face of naked tyranny, dehumanization and oppression, instead of doing something about it. Forgive me but I don’t see how this can be celebrated.

It’s a typical oyibo insult cleverly sugar coated as a compliment. If you’re not discerning enough you may well end up laughing with them as they laugh at you( rather than with you).

The insidious nature of most forms of abuse, whether it be physical, sexual or psychological, means it comes in barely noticeable drips and drops as supposed to a deluge, often leaving the victim none the wiser of his or her sorry state. Sadly, unaware of his abused state, he inflicts this abnormality on others too. A mind conditioned by repeated abuse is highly likely to mete same out and the cycle continues. We should all endeavour to remember one thing though, Nigerian lives matter too.

Changing the nation...one mind at a time.

Akande is a 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

UkwaNgwa’s unfettered covenant with Ochendo Godwin Adindu

“If you are incapable of gratitude, you are incapable of noble sentiments. Even animals are grateful,” --- By Sir George Bernard Shaw. n that famous romantic Comedy, Arms and the Man, Sir George Bernard Shaw, the English dramatist and playwright observed that ‘If any man (by extension a community, society, country or even group) is incapable of gratitude, the man must also be incapable of noble sentiments.” Sir Bernard Shaw added: “Even animals are grateful.”

Since the Sunday, March 9, 2019 re-election of Governor Okezie Ikpeazu, it has been celebration galore in the entire Ukwa-Ngwa land. The people are celebrating what they see as a long walk to freedom. They are celebrating a triumph of their capacity. They are celebrating a victory from old stereotypes and stigma.

They are celebrating a victory that will give them a new dignity and a new status in the political equation of Abia State. They are cel-

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ebrating a re-discovery of themselves – their strength and their power. They are celebrating their final emancipation.

Indeed, in this season of celebration, it is easy to forget. The UkwaNgwa must continue to celebrate Ochendo, Papa Ukwu, the man who agreed that what is good for the geese is also good for the gander. The UkwaNgwa have a covenant with Ochendo which must remain unfettered. Paraphrasing Shakespeare, we must honour the “base degrees upon which we did ascend’ Why must the UkwaNgwa celebrate Ochendo? We must do so because of our peculiar history and our existential reality.

Remember that right from the First Republic when the Aba Division in the Old Eastern Region was shortchanged and their position given to an Efik woman, Margaret Ekpo, who represented them in the old Eastern Region House of Assembly, successive regimes have always short-changed the UkwaNgwa and reneged on whatever promise or agreement entered into with the people. Thus, the struggle for the emancipation of the UkwaNgwa became a long-drawn battle that spanned over six decades, climaxing with the OTUONU Mass Movement led by Senator Enyinnaya Abaribe. The movement raised the momen-

tum of the UkwaNgwa agenda and brought many issues about the people to the front burner of national discourse.

From the Old Imo State, it appeared as if the UkwaNgwa was consigned to the position of Deputy Governor, only good to play the second fiddle. From Isaac Uzoigwe, Enyinnaya Abaribe, Chima Nwafor, Acho Nwankanma to Col. Ananaba, the tradition endured. At different times and on different scenarios, many UkwaNgwa men of repute led heated struggles to break the jinx but to no avail. The iron hand of oligarchy continued to strangulate them.

But, significantly, the reality of the fate that confronted the UkwaNgwa came in 2001, at the hallowed ground of Okpuala Ngwa, the ancestral cradle of the people, when the former Governor, Orji Uzor Kalu, looked at them eye-ball to eye-ball and announced that his daughter (who was three years then) will grow up to govern them if they did not give him support for his second term bid. The UkwaNgwa took it as the height of insult against the collective sensibilities of a people.

Based on the rotational principle in the Abia Charter of Equity, power was to rotate between the Old Bende and the Old Aba Zone.

Kalu, from inception, promised to adhere to this ordinance. But, out of his deep-seated

hatred for the UkwaNgwa, he reneged at last and handed over power to his fellow old Bende man from Abia Central in 2007.

In the twilight of his administration in 2015, Ochendo came under intense pressure by his people of old Bende to shortchange the UkwaNgwa again. Thus, the UkwaNgwa must at all times recognise that, except for the firm and unwavering decision of Ochendo who, against all pressure and odds, stood his ground on power rotation and kept his word as his bond on handing over to an UkwaNgwa, the people could not have attained the current milestone.

Thus, the UkwaNgwa must continue to show gratitude to Ochendo for setting this standard of equity. They must continue to celebrate him for being the only leader who demonstrated that balance of power is critical and crucial for our common existence as one common humanity.

Thus, as we celebrate our final political triumph as a people, we must not forget where we are coming from and the man who mounted the ladder on which we ascended through the base degrees to the topmost height.

Adindu is the President-general of the Abia Renaissance Movement (ARM)

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Exclusive Nigerian indicators for Ease of Doing Business?

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hat merit attends the call for Nigerian exceptionalism in the World Bank’s Ease of Doing Business Rankings? What research or science informs the call? How does one grapple with it? Or is it merely asking for lower standards for Nigeria from the rest of the world?

The call by the Lagos Chamber of Commerce and Industry (LCCI) for country-specific indicators in the global Ease of Doing Business Rankings of the World Bank compels a review of the rankings and the Nigerian situation. It raises many more questions including the rubrics of the envisaged Nigeriaspecific rankings.

LCCI Director-General Muda Yusuf on January 21, according to reports quoting the News Agency of Nigeria, called for indicators that reflect the Nigerian condition in the global Ease of Doing Business Rankings. Yusuf stated, “Some of the indicators in the Ease of Doing Business composition do not properly capture the critical variables in our environment. Issues of power, transportation, security and our regulatory environment are not captured. We need to address these other variables that are not on the list of the ease of doing business parameters.”

The LCCI boss added: “If you look at the present indicators, it is about construction permits, ease of starting business, credit, reforms,

trading across borders, amongst others. In many of those countries that you roll out these parameters, security is not an issue, power and transportation are taken for granted, whereas in our environment, these are very big issues.”

The World Bank gathers data and publishes the annual Ease of Doing Business Rankings. There is also a subnational report focused on individual countries. The Nigerian subnational ranking is now in its fourth year.

The Ease of Doing Business Index emanated from research led by Simeon Diankov at the World Bank.

Academic research conducted with professors Oliver Hart and Andrei Shleifer was the basis. It looks at ten indicators and assigns values to them to show the complexity or simplicity of regulations and how they enable or disenable business performance.

“Higher rankings (a low numerical value indicates better, usually simpler, regulations for businesses and stronger protections of property rights”.

The Ease of Doing Business project commenced in November 2011.

The ten sub-indices for ranking nations (and states in the subnational) include the following: 1. Starting a business – Procedures, time, cost and minimum capital to open a new business; 2. Dealing with construction permits – Procedures, time and cost to build a warehouse; 3. Getting electricity – procedures, time and cost required for a business to obtain a permanent electricity

connection for a newly constructed warehouse 4. Registering property – Procedures, time and cost to register commercial real estate 5. Getting credit – Strength of legal rights index, depth of credit information index 6. Protecting investors – Indices on the extent of disclosure, the extent of director liability and ease of shareholder suits 7. Paying taxes – Number of taxes paid, hours per year spent preparing tax returns and total tax payable as a share of gross profit 8. Trading across borders – Number of documents, cost and time necessary to export and import 9. Enforcing contracts – Procedures, time and cost to enforce a debt contract 10. Resolving insolvency – The time, cost and recovery rate (%) under a bankruptcy proceeding According to the World Bank, the Doing Business project also offers information on following datasets: a) Distance to frontier – Shows the distance of each economy to the “frontier,” which represents the highest performance observed on each of the indicators across all economies included since each indicator featured in Doing Business; b) Entrepreneurship – Measures entrepreneurial activity.Includes data directly from 130 company registrars on the number of newly registered firms over the past seven years; c) Good practices – Provide insights into how governments have improved the

regulatory environment in the past in the areas measured by Doing Business; d) Transparency in business regulation – Data on the accessibility of regulatory information measures how easy it is to access fee schedules for 4 regulatory processes in the largest business city of an economy.

In 2018, Nigeria scored 145 out of 190 points in the rankings. The Doing Business in Nigeria 2018 ranking compared business regulations in our 6 states and FCT. It measured progress since 2014 in four areas of starting a business, dealing with construction permits, registering property and enforcing contracts. It found that 29 states implemented 43 reforms across the four areas, making it easier for local entrepreneurs to start and operate a business. Kaduna, Enugu, Abia, Lagos and Anambra showed the largest advance toward the global good practice frontier.

Covered in the indices are matters such as electricity that the LCCI mentions. Some of the issues are now subject of regulatory review in ongoing work on the Companies and Allied Matters Act in the National Assembly.

The indices have a global application because of the commonality of the issues across countries and regions.

It would be interesting to receive a more detailed case for Nigerian exceptionalism from our foremost chamber of commerce based on its research. It should include implementation modalities for carrying out the research. It would be a major contribution by LCCI to developing the business environment in Nigeria.

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COMPANIES & MARKETS NSE major indices closed in red as Nigerian stocks mirror global peers

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EGX, AfDB meet on initiative to unify securities trading in Africa

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

OLUWASEGUN OLAKOYENIKAN & SEGUN ADAMS

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quities listed on the Nigerian Stock Exchange (NSE) were not left out of the bearish performance that characterised global stock markets on Monday as the local bourse dipped 0.31 per cent.

The NSE key performance index, the All Share Index (ASI), which opened at 31,139.35 points closed at 31,042.33, worsening the market’s return since the start of the year to 1.2 per cent.

Sentiment for global equities turned sour over wavering concerns on global economic growth and after the yield on United States’ 3-month Treasury bills rose above that of 10-year Treasuries for the first time since 2007.

This spurred concern about a U.S. recession and triggered sell-offs on equities across the globe. ‘’History has it that the inversion of the U.S. yield curve always leads to an economic recession in the country,’’ said Gbolahan Ologunro, an equity analyst at CSL Stockbro-

kers.

Equities were sold off across the Asia Pacific as Japan’s Nikkei shed 3.01 per cent, Shanghai Stock Exchange (SSE) fell 1.97 per cent, Mumbai’s Sensex dropped 0.93 per cent, while Hong Kong’s Hang Seng lost 2.03 per cent.

In the U.S, the Nasdaq Composite Index was down by 0.59 per cent, S&P 500 Index dipped 0.39 per cent, while Dow Jones Industrial Average closed 0.34 lower as Wall Street jittered.

Major indices of the NSE closed in red after the close of trading with NSE industrial goods index getting the worst hit of 1.64 per cent loss.

At the sound of the closing gong at the Lagos bourse, the NSE Banking Index fell 0.78 per cent; Insurance, 0.97 per cent; Oil & Gas, 0.74 per cent; while NSE Consumer Goods slumped 0.20 per cent.

Similarly, the broad index tracking the 30 most-capitalized and liquid stocks on the NSE also lost 0.19 per cent in value.

The Ghana Stock Exchange shrugged off the negative performance

Pg. 14

L:R: Tobi Bakre, media personality ; Ngozi Nkwoji , portfolio manager, non-alcoholic brands, Nigerian Breweries Plc; , Enyinna Nwigwe , Nigerian actor ; Ugo Ahukannah, senior brand manager Amstel Malta & Hi-Malt, and Emmanuel Oriakhi , marketing director Nigerian Breweries Plc, at the Amstel Malta celebrity meet and greet dinner in Lagos.

Pic by Pius Okeosisi

after gaining marginally by 0.30 per cent, even as South African, Egyptian and Kenyan stocks plunged 1.95 per cent, 1.15 per cent and 0.58 per cent, respectively.

Earlier in the month, the Organisation for Economic Cooperation and Development (OECD) revised downwards its global growth forecast as it warned that major economies in the Eurozone, Asia and United States would see economic activities slow

down.

The OECD also warned that the global financial market might be weighed down as signs of weakness in the economy would affect investors’ confidence, especially in the equities market.

“Recession in the U.S would definitely affect the global economy and financial markets as investors might want to be careful in terms of their exposure to financial markets across the globe,’’ Ologunro said, ex-

plaining that some of the investors might want to rebalance their portfolios into fixed income assets.

The risks of waning economic growth in the bond market would likely see yields on sovereigns soar which might clog the credit pipeline, heightening costs of capital and discouraging investment activities of firms, a development that could result to lower output and worsened unemployment rate.

Although gloom and

doom permeate the media, major central bankers have adopted a dovish stance to drive the economy and Wall Street is said to believe that the Federal Reserve which is currently holding off rate hikes might be inclined to cut rate at year-end.

Meanwhile, bullish sentiment remains strong in the Nigerian bonds market as average T-Bills yield rose to 13.02 per cent, according to a report by Meristem Securities to clients on Monday.

Transcorp Power plans massive investment in Nigeria’s power assets OLUFIKAYO OWOEYE

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hairman, Transnational Corporation of Nigeria Plc, Tony Elumelu, has disclosed plans to invest $2.5 billion in power projects across the country.

According to Elumelu, it will make the investments through a subsidiary, Transcorp Power

Ltd. Elumelu disclosed this during an interview in Abuja noted that Transcorp Power has so far injected about $1 billion in projects with a combined capacity of 700 megawatts.

Transcorp Power is one of the five firms that submitted financial and technical bids to pur-

chase a 51 per cent stake in the Afam Power Plc and Yola Electricity Distribution Company.

“We’ve expressed interest in the acquisition of Afam power plant, which we’re going to spend a lot of money and it will give us 1,400 megawatts and we can do more,” he said.

Transnational Corporation recorded

30.5percent increase in revenue from its Power segment-subsidiary engaged in the generation of electric power, from N66.44billion in full year ended 31 December 2017 as compared to 86.73 billion same periods in 2018 the highest from its revenue segments. The company’s revenue also ballooned 29.75percent

to N104.16 billion in the full year 2018 compared to N80.28billion recorded in the same period in 2017.

Nigeria’s power sector is riddled by debt and Transcorp Power is owed about $250 million.

“If they are owing you that kind of money, it affects your ability to do more and more impor-

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: David Ogar

tantly, slows your enthusiasm,” he added.

Transcorp Group is principally engaged in the power, agro-allied, oil & gas and hospitality industry. Its shares traded at N1.26 at the close of trading on Monday on the floor of the Nigerian Stock Exchange with its one year return down by 0.79percent.

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EGX, AfDB meet on initiative to unify securities trading in Africa ISRAEL ODUBOLA

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ust a month after joining the African Exchanges Linkage Project (AELP), the Egyptian Exchange (EGX) received a mission from the African Development Bank (AfDB) to foster greater integration of securities trading in Africa.

The ALEP project, a co-initiative of African Securities Exchanges Association (ASEA) and AfDB, was designed to facilitate cross-border trading and settlement of securities across all stock exchanges in Africa.

EGX along with Nairobi Securities Exchange, Nigerian Stock Exchange, Johannesburg Stock Exchange, Stock Exchange of Mauritius, Casablanca Stock Exchange and Bourse Regionale des Valeurs Mobilieres (for the West African Union) are the participating bourses that will be linked in

the first phase of the project.

The seven bourses represent 90 percent of Africa’s stock market capitalization.

Speaking with delegates from AfDB, EGX Executive Chairman, Mohammed Saleh, noted that requirements for the launch of an electronic platform to link all brokerage firms in securities across the continent has been completed.

Saleh disclosed that the bourse has informed brokerage firms about the initiative and enlightened them on how to participate to maximize benefits and create a value chain for the securities industry.

“Meeting with the Bank mission in Cairo was crucial to speed up the process of preparing a comprehensive study on key determinants of activating the initiative and starting the discussion between stock exchanges and brokerage firms.” said the EGX’s

chief, Saleh.

He averred that the project will elevate the number of securities offered for investment and provide a variety of investment options for all investment in African stock exchanges.

Emmanuel Diarra, Manager of Capital Market Development Division at AfDB, said the integration of African financial system is germane to the Bank’s Regional Integration Strategy.

Diarra stated that the Bank supports African bourses by providing a platform for broader collaborative engagements among stakeholders in the financial sector.

During the two-day mission, the Bank delegation also met other key stakeholders including the Central Bank of Egypt, the Egyptian Capital Market Association, Egyptian Investment Managers Association and Egyptian Society of Technical Analysts.

APPOINTMENT

Access Bank announces first appointment post-merger as Chizoma Okoli joins Board SEGUN ADAMS

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ccess Bank, tier-1 lender said it has appointed Chizoma Okoli as Executive Director of its Business Banking Division a week after completing its merger with Diamond Bank.

T h e a p p o i nt m e nt w a s brought to the knowledge of the investing public in a statement signed by the Company Secretary of Access bank and filed on Monday.

Commenting on Okoli’s appointment, Herbert Wigwe the Group Managing Director of Access Bank said the new addition would deepen the quality of the board as well as propel the bank to loftier heights. ‘’Her appointment will no doubt improve the skill set and diversity of our board and support our quest to become the world’s most respected African Bank and Africa’s gateway to

the world,’’ Wigwe’s comment read in part.

Until her new appointment, Okoli was Executive Director, Business Development at Diamond Bank for about three years.

She had her first degree in law from the University of Benin in 1989 and holds an MBA from Warwick Business School, Coventry.

Okoli commenced her banking career as an executive trainee in the operations unit of Diamond bank in April 1992 and served in various capacities in the Bank until her appointment as Executive Director in September of 2016.

She has undergone training in several world-class institutions and is an honorary member of the chartered institute of bankers of Nigeria.

Last week, Access Bank and Diamond formally completed the merger deal after obtaining

a court sanction of the deal and approval from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), with shares of Diamond Bank placed on full suspension by the local bourse.

Okoli’s appointment is the first announced by the tier-1 lender since the formal completion of the merger.

According to the statement, the appointment of Chindima Okoli has been approved by the Central Bank of Nigeria.

At the close of trading on Monday, Access Bank closed 6.57 percent lower to N6.40 as the stock market resumed the week on a bearish note.

In the 2018 financial year, Access Bank grew gross earnings by 15 percent to N528.75 billion from N459.08 billion garnered in 2017, while after-tax profit rose 58 percent to N94.98 billion from N60.09 billion posted in the previous year.

HEALTHCARE

Synlab Nigeria opens in calabar SEGUN ADAMS

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YNLAB Nigeria (Formerly Pathcare Laboratories), the leading pathology laboratory services provider with over 5,000 tests available on its platform, has formally opened a new facility in Calabar, Cross River State.

The new facility will provide the people of Calabar and its environs quality laboratory tests, support doctors with accurate test results and improve the quality of health care in the state.

Speaking at the opening ceremony, Marcus Inyama expatiated on the “Role of the Pathologist in Clinical Practice’, he emphasised the need for a reliable pathology laboratory such as SYNLAB Nigeria.

Tolulope Adewole, Executive Director (Operations) SYNLAB Nigeria also at the event explained

that as a company, SYNLAB is “committed to making investments that will deliver first-world healthcare services to Nigerians.’’

He furthered stated that with more than 5,000 tests on offer, SYNLAB Nigeria has the most comprehensive test offering in Africa.

“We are here to support doctors in ways not previously possible. Together, we are building a stronger healthcare system and you are part of the process,” Adewole said.

Located inside the premises of the renowned Calabar Women and Children Hospital, the SYNLAB facility aims at delivering top quality, state-of-the-art medical diagnostics services for health professionals and residents of Calabar which SYNLAB Nigeria customers have enjoyed over

the years.

The new facility fits into SYNLAB’s strategic footprint coverage in south-south Nigeria. Earlier in the year, the company commissioned an ultra-modern laboratory in Gwarinpa, Abuja, to expand its reach to meet the needs in the northern zone of the country.

Management has announced that a special package awaits the first five customers, every day for the next one week, at the new facility in Calabar.

The facility was declared opened by Imaobong Ekanem, professor of histopathology. The Host of the Event, Chief Mrs Onari Duke, Former First Lady of Cross River, Calabar was present to receive the stakeholders and esteemed guests.

In attendance was the Commissioner for Health ably represented

by Udeme Asibong CMD.

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Nigeria’s agric sector investment rises 82% in 2018 Josephine Okojie

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i g e r i a’s c a p i t a l importation into the agricultural sector is gaining momentum as foreign investments into the sector rose by 82 percent from $159 million (N57 billion) in 2017 to $289 million (N104 billion) in 2018, data from the National Bureau of Statistics (NBS) shows.

But on a quarter on quarter basis, foreign investments into the sector decreased by 52 percent from $62.5million in q4 2017 to $30.3million in q4 2018.

According to stakeholders in the sector, the sustained rise in investment is on account of the commitment of government at all levels to the sector which has made it attractive to both local and foreign investors.

“Foreign investors that are coming in have seen the potential in the country’s population size.

Investors are investing to improve the value chain and reduce the cost of production”, Emmanuel Ijewere, vice president of the Nigerian Agribusiness Group (NABG) said last year, in a telephone interview.

“The government’s focus on diversifying from oil to non-oil, starting with agriculture, is really getting the attention of foreign investors,” Ijewere said.

Since the collapse of global oil prices at the international market

L-R: Oluwarotimi Akeredolu,executive Governor of Ondo State; Walter Akpani, managing director, Providus Bank; Paul Obanua, group managing director Greenfield Assets Limited and Barr Ken Omoyebagbe during a facility tour by the Central Bank of Nigeria and Providus Bank of Greenfield Powdered Egg Project Emureile, Ondo State, recently.

w h i ch p l u ng e d t h e Nig e r ia n economy into a 25 year low in 2016, there has been a renewed focus on the agricultural sector, as the country attempts to diversify its economy away from oil.

Agriculture which was once neglected became an option

for diversification due to its vast potentials that can drive a more sustainable economic growth in Africa’s most populous nation, in terms of job creation and revenue diversification.

Since then, the country has devoted a lot of energy to deepening

Climate change: ActionAid urges FG to recognise ‘agro-ecology’ Victoria Nnakiaike, Lokoja

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s Nigeria joins the rest of Africa to mark this year’s African Climate week, ActionaAid Nigeria has urged the Federal Government to adopt the agroecology approach to future proof Nigeria’s food systems against global warming.

Ene Obi, countr y director, ActionAid Nigeria, made the call during a programme on the African Climate Week holding in Accra Ghana recently.

“We have all noticed that the climate is changing and that the seasons have been disrupted as a result of global warming,” Obi said.

Obi also disclosed that in recent years Nigeria has experienced more frequent extreme weather c o n d i t i o n s, a d d i n g t h a t t h e government should recognise the value of agroecology and start promoting it as a real and futureoriented solution to help food systems cope with the impact of climate change.

“Sometimes seeing droughts one year and floods the next. Rainy seasons arrive early, or late, or are far shorter than usual,” she further said.

“Rural communities who depend on farming for food and income are especially vulnerable to climate

change. Farmers who depend on predictable rainfall patterns are harvesting lower yields or even struggling to grow food.

“Soils are drying up quickly due to higher temperatures. New invasions of pests are marching through fields. Fodder and pasture for livestock is becoming harder to find. With hot seasons lasting longer, many communities now find that their sources of water are drying up,” she added.

She noted that amid this new terrifying reality, a major scientific report released last year by the Intergovernmental Panel on Climate Change (IPCC) showed that there is very little doubt that the whole planet is steadily warming and that Africa is on the front line of climate change.

Obi however said that the good news is that there are clever strategies available that can help to lessen the harm that extreme weather can wreak on food production and communities.

“These innovative strategies include training farmers, particularly women, who grow some 70percent of Nigeria’s food, and encouraging them to use climate-friendly agroecology farming techniques which sadly are often dismissed by the agribusiness industry as less productive or modern than the

industrial agrochemicals and hybrid seeds that the industry wants to sell to farmers.

“Nigeria needs a nationallevel mobilisation to ensure that our agriculture, our water, our infrastructure, our safety and all aspects of our lives are climateproofed against the further disruptions that we know are coming. One of the most important actions our government could take now would be to develop a National Adaptation Plan (NAP).

“We need the government to take swift action to bring together the right stakeholders and to develop an effective plan that can protect our country, our citizens and our food systems from climate change.

“A s r e p r e s e n t a t i v e s o f governments from Africa line up to speak and make announcements at the high-level summit in Accra this week, what will the government of Nigeria commit to do? Africa C l i mat e We e k i s t h e p e r f e c t moment to announce that Nigeria will be promoting agroecology as a farming adaptation strategy for farming, and that the government will urgently take forward the NAPs process.

“We will be listening for the opportunity to protect Nigerians from the dangers of climate change is too important to miss.”

agriculture with initiatives such as the Anchor Borrowers Programme (ABP), placing a ban on the importation of some agro commodities and setting goals for the attainment of self-sufficiency in major crop production.

“There is a lot of interest in going

into the sector which is sparking foreign investments due to the government attention to the sector.

There is likely going to be more investments this year, due to the demand for agricultural products from other countries which will earn more foreign exchange for the sector because some African countries like Kenya are experiencing some form of drought”, Aboidun Olorundenro, operations manager, Aquashoots Nigeria said.

Furthermore, local sourcing of agro commodities has increased tremendously and this has further spurred investments in the sector, as a lot of businesses are now into backward integration.

“A lot of investments are now coming into sorghum farming because the brewery industry is buying more from us now than before,” Adamu Bature, secretary, Sorghum, Millet Farmers Association of Nigeria, told BusinessDay in a telephone response to questions. “ B re w e r s m a k e u s e o f 7 0 percent sorghum as by-product for brewing beer and malt. Nigeria Breweries Fayrouz brand is 100 percent sorghum. This shows the huge industrial potentials of the crop. Also, it serves as raw material for biscuit and noodles production,” Bature said.

The fishing industry which is one of the sub-sectors of the agricultural industry also attracted $53 million investment within the same period.

Expert tasks Kwara governor on farming support SIKIRAT SHEHU, Ilorin

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bdulmumeen Mohammed Jawondo, a chartered accountant and revenue consultants in Kwara State has charged the Kwara state government to provide support to farmers in form of inputs to boost agric productivity in the state and spur economic growth.

Jawondo also urged the state to train farmers on modern farming techniques to increase their production and improve their livelihood.

The revenue consultant made this known at a recent media parley, organised by the state NUJ to bridge the information gap between policy makers and the public.

Jawondo, who spoke on the topic, ‘Economic and Internally Generated Revenue (IGR) Potentials of Kwara State’, noted that the economic potentials embedded in Kwara State are numerous and yet to be fully explore due to lack of focus of the past and current administration.

He noted that the inability of the government to provide an enabling environment has deterred investments in the sector.

According to him, agriculture remains the sector that creates most jobs if well explored and managed.

“Some States in Nigeria such as Kebbi, Lagos and Borno have explored this opportunity and this has impacted positively on the wellbeing of their citizens as well as on their socioeconomic indices,” Jawodo said.

He therefore recommended that the state government to fully explore the opportunities in agriculture through identification of areas of comparative advantages in various region.

“Each senatorial district in the state is blessed with various agricultural potential which can be explored. Research group should be consulted for this and be given time line to come up with ways to tap these opportunities.

“This should be inclusive of cash crop which can be sold locally and internationally,” he said.

Speaking further, Jawondo stressed the need to create an effective marketing board to help farmers maintain good pricing for their products and also a source for readymade market.

He added that strategic partnership with other states governments, multilateral institutions such as the African Development Bank and others would boost the production and market for agricultural produce.

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Innovation in agric sector imperative in modern practice’ – experts say Josephine Okojie

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xperts in the agricultural sector say that innovation a n d i m p rov e d technology are vital to boost farmers’ productivity and attain food sufficiency.

The experts have identified low technology and innovation as the biggest challenges limiting farmers’ productivity in the country.

They noted that the low use of technology and lack of innovation in the sector have continued to affects farmers’ cultivation areas and their ability to perform timely operations.

“We must be innovative in our design, implementation and execution of agricultural programs, projects and activities in agriculture now because it is technology that drives today’s agric,” AfricanFarmer Mogaji, chief executive officer, X-Ray Farms said.

“If we must feed ourselves and drive economic growth, then it is time the government

L-R: Rashidat Adebisi, divisional head retail, Axa Mansard; Tolu Doherty, CEO, Wow Nails; Funke Bucknor, CEO, Zapphaire Events; Tara Fela Durotoye, CEO, House of Tara and Seyitan Atigarin (host) at the SME100AFRICA International Women’s day conference 2019 held in Lagos recently.

takes the issue of technology and innovation serious in the agric sector,” Mogaji said.

Globally, innovation and technology are positively impacting on crop production as farmers deploy farm machines, tractors and drones to aid farming, as well as Artificial Intelligence.

But Nigeria is grossly lacking in the adoption of mechanisation and tractors.

Nigeria is listed among the countries in the world with the least mechanised farming. The rate of the use of agricultural machinery is still below that which is considered necessary to meet the rising demand for food, as stipulated by the Food and Agriculture Organisation (FAO).

Available statistics show that Nigeria is one of the least mechanised farming

Devote more funds for ADP projects – expert tells South-West governors Akinremi Feyisipo, Ibadan

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lukemi Lawal, south-west zonal c o o r d i n a t o r, Research Extension Farmers Input Linkage System (REFILS) has urged governors in the region to re-examine and devote more funds for Agricultural Development Programmes(ADP) in their respective states, so as to perform their statutory roles.

Lawal, who maintained that the success of agriculture in the 70s was due to dynamic and vibrant extension services, however, charged the state governors to do more to fund the ADP projects in their respective states.

“I wish to plead that our state governors should reexamine and devote more funds to ADPs-REFILS activities so that ADPs can perform their statutory function better and in turn significantly improve the economic well-being of the resource poor farmers,” she said.

In her welcome address during the opening of the 32nd Annual South West REFILS Workshop with the theme ‘Promoting Agribusiness and

strengthening stakeholders linkages in adapting to climate change’, held at the Institute of Agricultural Research and Training (IAR&T), Ibadan, she noted that funding of ADP is germane to achieving sustainable development and economic diversification in Nigeria.

According to her, the theme was carefully chosen to meet the current issues in agribusiness such as credit facilitation marketing and climate change.

Lawal stated that farmers’ productivity has also become a major agricultural challenge because of the effects of climate change. “The erratic supply of rainfall, flooding and extreme temperatures call for adaptation to reduce the effects of climate change.”

“There is a need to strengthen linkages among agricultural stakeholders if we want farmers to remain in business and produce for both local and international markets. REFILS activities in most ADPs are encouraging while some need improvement in their activities.

“We have as high as 6,000 farm families to one extension agent in most states of the

South West. There can never be meaningful agricultural development without the government strengthening ADPs in the zone,” she added.

James Adediran, executive d i r e c t o r, I A R & T i n h i s address urged governors in the zone to set priorities in policy formulation and implementation.

“Agricultural policies of the government in South West Nigeria are comprehensive and strategic. The governors are doing their best to implement these policies. However, there is the need to be more dynamic in setting priorities in policy formulation and implementation,” Adediran who is also a professor said.

“I am particularly concerned on the level of performance and achievement of most ADPs which are below average due to insufficient funding by their state governments” At the event were re p re s e n t a t i v e s o f s t a t e governors in the region, Oba Adewunmi Fasiku Aladesekole 1, the Elekole of Ikole Ekiti, , ADP team leaders in the region and Adeduro Adegeye,a professor who served as the keynote speaker.

countries in the world with the country’s tractor density put at 0.27 hp/ hectare which is far below the Food and Agriculture Organisation ( FA O ) ’s 1 . 5 h p / h e c t a re recommended tractor density for Africa and other developing countries.

W h e n m e a s u re d o n mechanisation scale in 2003, Nigeria had only 30,000 tractors and currently adding

1,000 new ones each year, which is still not considered sufficient in replacing the ones that are aging, broken down and worn out.

Abiodun Olorundero, m a n a g i n g d i r e c t o r, AquaShoots Limited, said what may mitigate further progress made so far in the agriculture sector is lack of technology.

“Lack of technology and innovation remains one of the reasons why we still have a shortfall in production.

Technology is very crucial if Nigeria really wants to boost agric productivity.

Government must key into agriculture, using technology t o a t t r a c t t h e y o u t h ,” Olorundero said.

Similarly, farmers have continued to record scanty yields, as opposed to their counterparts in developed countries who make use of advanced farming machines.

The use of hoes, cutlasses, and in some cases- toolmounting animals is responsible for poor agric output in the country, thus making agriculture laborious and giving farmers scanty

yields and poverty.

“Currently, more than 70 percent of farm labour is provided by human power; over 20 percent is provided with draft animal power and less than 10 percent by mechanical power,” Elesa Yakubu, national president, Tractor Owners and Operators Association of Niger ia (TOOAN), told BusinessDay. Yakubu called on the government to create an environment that is conducive for farm machinery manufacturers, to establish assembly plants and also provide special funds to agricultural institutions to undertake research and d e v e l o p m e nt f o r l o ca l manufacture of agricultural machinery and implements.

“Government must in the interim, partner with at least two reputable tractor manufacturers to establish Complete Knocked Down (CKD) assembly plants, but in the long-term encourage the design and manufacture of indigenous products, tractors; implement the use of local tractors and other equipment,” Yakubu said.

Oyo inaugurates 33 excavators to boost agric productivity Akinremi Feyisipo, Ibadan

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he Oyo State G ove r n m e nt ha s inaugurated 33 excavators to boost agricultural production, safety and rescue operations, as well as urban renewal across the Local Government Areas and Local Council Development Areas.

Speaking at the ceremony, Governor Abiola Ajimobi said the purchase of the equipment was to further reinforce his earlier stance that he would sustain the administration’s developmental strides until May 28 when his tenure comes to an end.

The governor explained that it was one of the excavators that was deployed for rescue operations during the recent building collapse in Molete Area of Ibadan, making it possible to bring out all those trapped in the rubble alive.

The 33 excavators are fresh additions to the first batch of earth-moving equipment procured by the Ajimobi administration, with 320 tractors and 30 mini trucks distributed to 20 agrarian Local Government Areas in

2012.

Ajimobi described his administration’s investment in agriculture, including the purchase of the excavators as another unprecedented feat in the history of the state.

“I make bold to say that this is the first administration in the history of this state that will invest so heavily in the agricultural sector.

The 33 excavators we are inaugurating today is another unprecedented feat,” the governor said. “ Th e e xcavato rs w i l l be used by the 33 Local Governments and the 35 Local Council Development Areas (LCDAs) in the state for agricultural purposes, urban renewal and other environmental intervention purposes.

He stated that history will remember his administration for repositioning the agricultural sector in the state.

“We are proud of our achievements, especially in the restoration of peace and security, urban renewal, massive construction of quality roads across the state, among others. I want to say it unequivocally that we will work hard until May 28 when

our tenure will end.

“This is why I want to urge all of you that have been part of our success story to walk tall anywhere you go. That God made it possible for us to spend eight unprecedented years is not a mean feat.

You have no reason to be downcast because we lost election. Be of good cheer and be thankful to God.” The governor called on the civil servants and traditional rulers in the state to cooperate with and support the incoming administration in the same way they did for his administration, in the larger interest of the state.

Ajimobi said its only when everybody is on the same page that the developmental strides of his administration could be sustained by his successor, whom he said would also be held accountable to his electioneering promises.

In a remark, Alex Nwoko, public sector manager of Mantrac, the supplier of the excavators, said the state government had taken a bold step by procuring the largest number of excavators by any state government for the use of its LGAs.

20

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27 March 2019

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Why struggling airlines spend more on safety HENRICH R. GREVE AND VIBHA GABA

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very legitimate airline claims to value passenger safety above all else. But, realistically, airlines must balance the often-conflicting imperatives of safety and profitability. Inevitably, moments will arise where executives ask not “How safe can we possibly be?” but “How safe must we be?” or “How safe can we afford to be?”

These tough, troubling questions are an inescapable fact of doing business in an industry centered on potentially hazardous technology.

In our forthcoming article in Organization Science we describe our research into airlines’ management of these complex trade-offs and, in particular, how financial performance affects an airline’s focus on safety. When we began our research, our assumption was that the most successful airlines (those with secure profitability) would be leading the pack on the safety front — and this overall view is supported by previous research.

But in our work, we specifically examined when airlines decided to replace particular aircraft. In this particular context we found instead that airlines with lower profitability were more likely to choose to invest in new aircraft after a crash of a model in their fleet — like that of the Boeing 737 Max 8 recently — even if the flight was not being operated by that airline.

Altering the composition of the fleet — replacing older models of aircraft that have less-than-stellar accident records with models considered to be very safe — is one of the ways top-level airline management can improve safety.

As one might expect, these transactions usually involve selling at a discount and buying at a premium. This means the airline loses out financially

YE

AR

on the deal.

To track aircraft sales and purchases, we obtained fleet composition statistics via the website airfleets.net, which features full data on passenger aircraft across the entire industry. From the same website, we accessed accident records for all global airlines, which we narrowed down to incidents resulting in an airplane being deemed permanently unfit to fly. This category of mishap (termed “hull loss accidents”) includes tragic crashes, of course, but also serious electrical fires, water landings and any other event rendering repairs either futile or too costly. We also assessed the tenor of media coverage for each aircraft model in the sample, as we assumed that the publicity around the planes would affect fleet management decisions. A high-profile accident that was widely reported would have an outsize impact on airlines’ safety-based calculus.

Then we traced the connections between the changing composition of an airline’s fleet and its commercial fortunes (though before doing so we had to filter out of our

sample many smaller airlines in developing countries for which reliable financial performance data could not be obtained).

We found that airlines with above-average safety records responded to increased accident rates of models in their fleet by changing their fleet composition. But, interestingly, this effect was stronger for airlines with a lower level of profitability. Suppose that two airlines start with an equally high above-average safety rating but differing levels of profitability. If they both experience a same-size reduction in the safety rating, the low-profit airline would on average increase its aircraft sales by 55% as compared with the highprofit airline, which would only increase its aircraft sales by 29%. And among airlines with relatively high accident rates, financial performance played an even more decisive role: Underperforming carriers disposed of aircraft in a bid to improve safety, but the prosperous ones did not bother. For airlines equally far below the industry average safety record, an airline with low profitability is 50% more

likely to sell aircraft than the one with high profitability.

It shouldn’t come as a surprise, then, that Indonesia’s Lion Air is reportedly planning to drop a $22 billion order for 737 Max aircraft in favor of Airbus planes following both the recent Ethiopia Air crash and its own tragedy in October last year when one of its own Max jets crashed minutes after takeoff, killing all passengers and crew.

It might seem strange that financially struggling airlines are the most willing to spend more on safety, but we believe that it has to do with the way organizations think about survival: Airlines whose profits are riding high can survive a scandal, and their executives know it. Their less successful peers may already be bordering on failure and can ill afford the public outcry that a prominent accident would cause.

It’s also worth noting that the buying and selling of aircraft for safety’s sake was influenced mostly by accident rates, but media tenor was a significant factor too. Take the barrage of negative press coverage surrounding the Boeing 787 Dreamliner following a se-

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ries of battery fires in 2013 and 2014. Even though the worst initial fires happened while the planes were recharging on the runway without any passengers on board, a cloud of suspicion shadows the Dreamliner to this day. Correspondingly, we found that negative press exerted its own influence on aircraft sales and purchases, independent of actual hull loss rates. Public perception of the safety and actual safety records of aircraft appear to be two separate boxes that carriers feel compelled to check, especially in economically lean times.

So are industry-leading carriers less safe than the underdogs? Not quite. We know from the previous studies mentioned earlier that there is a direct correlation between airlines’ profitability and their safety record.

Safety is affected by more than just the makes and models of aircraft in the fleet; what employees do on the ground and in flight arguably matters more.

Putting safety first often comes down to questions like: Are best practices being scrupulously followed? Are flight crew given time to perform sufficiently thorough checks before takeoff? And when profits are down and pay raises scarce, the temptation to cut corners can be strong enough to neutralize the prudent plans of the C-suite.

No matter how many suspect planes an airline puts out of commission, if managers do not tackle these issues, safety will still be a problem.

Our findings show that, their impact notwithstanding, the choices managers make in navigating tough trade-offs like safety versus profitability will change based on context. When the stakes — in both financial and human terms — are high, decision-makers choose pricey survival over low-cost risk.

Henrich R. Greve is a professor of entrepreneurship at INSEAD. Vibha Gaba is an associate professor of entrepreneurship there.

Wednesday 27 March 2019

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ManagementDigest

Strategy needs creativity ADAM BRANDENBURGER

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usiness school students often feel frustrated when they’re taught strategy. Professors typically teach about strategy by introducing them to rigorous analytical tools — assessing the five forces, drawing a value net, plotting competitive positions. The students know that the tools are essential, but they also realize that the tools are better suited to understanding an existing business context than to dreaming up ways to reshape it.

They’re right to feel this way.

We’ll always need analytical tools, but if we want to teach students and executives how to generate groundbreaking strategies, we must give them tools explicitly designed to foster creativity.

In this article I explore four approaches to building a breakthrough strategy: contrast, combination, constraint and context.

While these approaches aren’t exhaustive, they can help people explore a wide range of possibilities.

CONTRAST To create a strategy built on contrast, identify and challenge the assumptions implicit in existing strategies. Elon Musk seems to have a knack for this approach.

He and the other creators of PayPal took a widely held assumption about banking — that transferring money online was feasible and safe between institutions but not between individuals — and disproved it. With SpaceX Musk is attempting to overturn major assumptions about space travel: that it must occur on a fixed schedule, be paid for by the public and use onetime rockets. He may now be on track toward a privately funded, on-demand business that reuses rockets.

One approach to apply contrast to strategy is to consider shaking up the value chain, which is conventionally oriented in a particular way, with some players acting as suppliers and others as customers. In the charitable sector, for example, donors have been seen as suppliers of financial resources.

DonorsChoose.org treats them more like customers. The organization puts up a “storefront” of requests posted by schoolteachers around the United States who are looking for materials for their underresourced classrooms. Donors can choose which requests to respond to and receive photos of the schoolwork that their money has supported.

In some industries the status quo has dictated highly bundled, expensive products or services.

Unbundling them is another way to build a contrast strategy. Various segments of the market may

prefer to get differing subsets of the bundle at better prices. Challengers’ unbundling of the status quo has been facilitated by the internet in one industry after another: Music, television and education are leading examples.

COMBINATION Combination is a canonical creative approach in both the arts and the sciences. It was by combining two very different ideas — a ride in an elevator and a journey into space — that Albert Einstein found his way to the theory of general relativity. In business, too, creative and successful moves can result from combining things that have been separate. Products and payment systems, for example, have traditionally been separate nodes in value chains. But the Chinese social media platform WeChat now includes an integrated mobile payment platform called WeChat Pay that enables users to buy and sell products within their social networks.

Sometimes competitors can benefit from joining forces to grow the pie. For example, BMW and Daimler have announced plans to combine their mobility services — car sharing, ride hailing, car parking, electric vehicle charging and tickets for public transport. In other instances, companies from wholly separate industries have created new value for customers by combining offerings. Apple and Nike have done so since the 2006 introduction of the Nike+ iPod Sport Kit, which enabled Nike shoes to communicate with

an iPod for tracking steps.

CONSTRAINT Creative thinking can turn limitations into opportunities. Tesla hasn’t lacked financial resources in entering the car industry, but it doesn’t have a traditional dealership network through which to sell. Rather than get into the business of building one, Tesla has chosen to sell cars online and to build Apple-like stores staffed with salespeople on salary. This positions the company well relative to competitors, whose dealers may be conflicted about promoting electric vehicles over internalcombustion ones.

One way to approach strategy from constraint is to ask whether you might benefit from self-imposed constraints. The Copenhagen restaurant Noma adheres to the New Nordic Food manifesto, emphasizing purity, simplicity, beauty, seasonality, local tradition and innovation. A commitment to high environmental standards, fair labor practices and ethical supply-chain management can be powerful for organizations looking to lead change in their industries or sectors.

Self-imposed constraints can also spur innovation. Adam Morgan and Mark Barden, in their book “ A Beautiful Constraint,” describe the efforts of the Audi racing team in the early 2000s to win Le Mans under the assumption that its cars couldn’t go faster than the competition’s. Audi developed diesel-powered racers, which re-

quired fewer fuel stops than gasoline-powered cars, and won Le Mans three years in succession.

CONTEXT It’s a classic problem-solving technique: Start with a problem in one context, find another context in which an analogous problem has already been solved, and import the solution. Intel did that when it came up with its famous Intel Inside logo, in the early 1990s. The goal was to turn Intel microprocessors into a branded product to speed up consumers’ adoption of next-generation chips and, more broadly, to improve the company’s ability to drive the personal-computer industry forward.

Branded ingredients were wellestablished in certain consumer product sectors like Teflon and NutraSweet, but hadn’t been tried in the world of technology. Intel imported the approach to hightech with a novel advertising campaign, successfully branding what had previously been an invisible computer component.

Context switching can be done across industries, as in Intel’s case, or even across time. The development of the graphical user interface for computers was in a sense the result of a step backward: The developers moved from immersion in the text-based context in which programming had grown up to thinking about the highly visual hand-eye environment in which young children operate.

Similarly, some artificial intelligence researchers are currently looking at how children learn in

order to inform processes for machine learning.

At its core, strategy is about finding ways to create and claim value through differentiation.

That’s a complicated, difficult job.

To be sure, it requires tools that can help identify surprising, creative breaks from conventional thinking. But it also requires tools for analyzing the competitive landscape, the dynamics threatening that landscape and a company’s resources and competencies. We need to teach business school students and executives how to be creative and rigorous at the same time.

Adam Brandenburger is the J.P. Valles professor at the Stern School of Business, distinguished professor at the Tandon School of Engineering and faculty director of the Shanghai Program on Creativity + Innovation at New York University.

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Understanding Fowler’s comment on VAT increase …he did not call for 50% increase in VAT rate – FIRS Stories by Iheanyi Nwachukwu

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ast week’s interaction between Tunde Fowler, Executive Chairman, Federal Inland Revenue Service (FIRS) and members of the Senate Finance Committee at the 2019-2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) meeting became a subject of discussion thereafter.

Amongst Fowler’s several comments at the meeting, the one that attracted most reports and public comments thereafter relates to possible hike in Value Added Tax (VAT) rate.

According to FIRS, their boss “called for an increase in the number of Nigerians and companies paying VAT and not a 50 percent increase in VAT rate”.

“Though he indicated that there should be an increase in VAT rate by the end of the year, he never for once suggested a 50 percent hike of any percentage increase at all. Rather, he promised improved collection in Company Income Tax (CIT), Petroleum Profits Tax (PPT) and VAT in 2019 relative to the collection performance of the Service in 2018. In 2018, FIRS collected the sum of N1.1 trillion in VAT N1.42trillion in Companies Income Tax (CIT) and N2.4 trillion in Petroleum Profits Tax (PPT)”, FIRS noted in statement preceding the meeting.

The interaction Senator Yusuf Abubakar Yusuf, (Taraba) had asked Fowler to state his view the Companies Income Tax rate which has been at 30 percent over the years. “Should it be increased or lowered for so many years?”.

“My personal opinion is that the rate of CIT should remain at 30

percent, to make sure that we do not reduce the tax rate, without getting others who are not in the tax net into the tax net. But for small businesses, it is a discussion we are having with the Ministry of Finance for people who are having a certain turnover.

“I believe that that can be reduced to may be 20 per cent to promote the small-scale businesses. But in terms of immediate reduction, I think we should try and stabilize to ensure a 90 percent compliance of those in the tax net. I am sure that at the end of the year, we can consider reducing, our corporate income tax rate”, Fowler said.

Senator John Owan Enoh, (Cross River) Chairman Senate Committee on Finance had also at the meeting made some comments as well raised

questions alike for Fowler saying; “The target for 2018… and the fact that you were able to do 78.8 percent.

Now suddenly there is about 3 trillion added to that. How challenging will that be for the Service?

“Two, you recall when this committee confirmed you as Executive Chairman, there was this issue about the rate of VAT, the issue of VAT being the lowest and whether it should be raised to something higher. You said and we agreed with you that it wasn’t much about the rate but about compliance. Some years down the line, what do you think your impressions should be on that? Do you think you still stand by that? And how well has the service done in terms of improving on that.”

Fowler, while responding said,

“In terms of VAT, the Service has increased VAT collection over the last three years by over 25 percent.

In terms of whether there should be an increase. I believe there should be an increase.”

“One issue about taxation is that it should be fair to all. We have discovered after the VAIDS (Voluntary Assets and Income Declaration Scheme) that a high percentage of businesses are collecting VAT and not remitting. We have also tried to address this issue.

We have issued new VAT certificates.

We have appealed to the public that if they are charged VAT and they are not sure it had been remitted they should contact us. We even gave a small promotion that for every 25 names that they give to us, we give them a little gift either a power bank

or something to show appreciation,” the FIRS chairman said.

“But that aside, we are also on the streets. We have a team called Federal Engagement and Enlightenment Tax Teams (FEETT) going around to confirm that they (businesses) are registered for VAT. And I believe with the substitution of over 50,000 bank accounts that we just started this week I am sure that those businesses that have been collecting VAT and not remitting the same or not remitting any tax payment, are beginning to ensure that the level of tax compliance thus improves. And I believe that by the end of this year, government and Nigerian people should be ready for an increase in VAT”, Fowler added.

“A lot of Nigerians travel to Ghana and other West African countries and they can see that the VAT is much higher and they pay when they go for those trips. I am sure that as the economy improves and as we continue to let them know that there will be an increase in VAT and they should be ready for it. In terms of the challenge of N3trillion, it is very challenging. But I can certainly see an increase in VAT of at least 35 to 50 percent this year, based on the enforcement activities.

“There will certainly be an increase in CIT (Companies Income Tax and also on PPT (Petroleum Profits Tax). Like I said earlier on, we have received directives that we can now hook on to some government agencies to make sure that the taxes especially in the oil sector, and also the Legacy Debts... that we should come up with an agreement so that the debts are paid over a 10-year period. I am sure with the arrears and the current taxes, we will certainly give the N3 trillion the best of our abilities,” Fowler stated.

Tax reform, digitisation key to financing development

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frica countries must digitise their economies, broaden their tax base, prevent further deterioration of fiscal and debt positions, and aim for double-digit growth to achieve the UN 2030 global goals (SDGs), and the AU Agenda 2063 according to the 2019 Economic Report on Africa released over the weekend at the Conference of Ministers.

“Digital identification can broaden the tax base by making it easier to identify and track taxpayers and helping taxpayers meet their tax obligations. By improving tax assessments and administration, it enhances the government’s capacity to mobilize additional resources. Digital ID systems yield gains in efficiency and convenience that could result in savings to taxpayers and government of up to $50 billion a year by 2020.”

This year’s Economic Report on Africa, a flagship publication of the United Nations Economic Commission for Africa (ECA) focuses on fiscal policy. Government revenues

account for 21.4%, insufficient to meet countries’ development financing needs.

“The Report identifies several quick wins in Africa’s pursuit of additional fiscal space to finance its accelerated development,” Vera Songwe, the ECA’s Executive Secretary stated at the launch. “[It also] focuses on the

instrumental role of fiscal policy in crowding-in investment and creating adequate fiscal space for social policy, including supporting women and youth-led small and medium enterprises.”

But, a decade away from the SDG, she added that “African countries continue to search for policy mixes

to help accelerate the achievement of the SDGs. However, for many countries, financing remains the biggest bottleneck with implementing capacity a close second.”

While analysing and highlighting both challenges and opportunities, the Report also recommends comprehensive macroeconomic reforms aimed at building financial resilience, placing emphasis on the need for Africa to accelerate growth to double digits by 2030 and to boost investment from its current 25 per cent of GDP. While economic growth in Africa remained moderate at 3.2 per cent in 2018 –due to “solid global growth, a moderate increase in commodity prices and favourable domestic conditions”, the Report emphasises that Africa needs to to do more, and work towards achieving a fine balance between raising revenue and incentivizing investments, in order to boost growth.

In some of Africa’s largest economies—South Africa, Angola and

Nigeria – the Report reveals, growth trended upwards but remains vulnerable to shifts in commodity prices.

East Africa remains the fastest growing, at 6.1 per cent in 2017 and 6.2 per cent in 2018, while in West Africa, the economy expanded by 3.2 per cent in 2018, up from 2.4 per cent in 2017.

Central, North and Southern Africa’s economies grew at a slower pace in 2018 compared to 2017.

On the issue of Africa’s debt burden, the Report reveals that debt levels remained high as African countries increased their borrowing, to ease fiscal pressures most of which have been precipitated by the narrowing of revenue streams that has gone on since the commodity price shocks of 2014.

It argues that African countries can increase government revenue by 12–20 per cent of GDP by adopting a policy framework that strengthen revenue mobilisation, including through digitalising African economies stating that digitization could enhance revenue mobilization by up to 6 per cent.

Wednesday 27 March 2019

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Elfina report shows poor penetration of insurance is due to low awareness among consumers …say’s target of 40% still short 38% in 2018 Stories by Modestus Anaesoronye

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nhancing Financial Inclusion and Access (ELFINA) report results from the 2018 survey suggests a number of constraints to be addressed to increase the uptake of insurance products in Nigeria, and top amongst the reasons is the low awareness.

According to the result, 77.2 percent of the respondents say they are not aware of insurance, while 4.9 percent being the second reason said they haven’t thought about insurance yet.

In a report presented

by EFINA at the recently concluded Insurance CEO Retreat held in Ibadan, Oyo State, 4.3 percent of respondents said they have nothing to insure, while 3.9 percent said they do not believe in insurance.

Another 2.5 percent each, said they do not know where to go and get it, and they cannot afford to pay

L-R: Shola Tinubu, president of the Nigerian Council of Registered Insurance Brokers (NCRIB); Mohammed Kari, Commissioner for Insurance; Babajiding Olatunde-Agbeja, past president, NCRIB at a strategic meeting of NCRIB leadership and National Insurance Commissioner held in Abuja recently

for insurance respectively, whereas 2.3 percent said they do not know the benefits of having an insurance policy, while the last 2.5 percent gave no reason for not taking any form of insurance.

The report further stated that like many other

sectors, the insurance industry’s projected contribution to financial inclusion for 2020 has fallen below expectation, given that of the projected 40 percent target, only 2 percent was recorded at the end of 2018 leaving a 38 percent gap.

EFInA therefore considers microinsurance as an essential tool to advance financial inclusion, and notes that 31.2 million adults in Nigeria said they will be interested in using microinsurance.

In furtherance of this, EFInA inaugurated a Mi-

c ro i n s u ra n c e w o rk i n g group in May 2017 to engender an enabling environment for the expansion of Microinsurance in Nigeria; to build the capacity of regulators and operators; to develop useful Microinsurance products and discuss approaches to deepening the uptake and usage of these products to meet the needs of the low-income populationEnhancing Financial Innovation & Access (EFInA) is a financial sector development agency, funded by the UK’s Department for International Development (DFID) and the Bill & Melinda Gates Foundation.

Set up in late 2007, EFInA’s mission is to make Nigeria’s financial system work better, especially for the poor, by facilitating the emergence of an all-inclusive, growth-promoting financial system. EFInA’s holistic approach to expanding access to financial services for all, especially for low income households is based on the following four pillars:

Leadway Assurance ‘Family Benefit Plan Plus’ to help families meet funeral expenses

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eadway Assurance has announced that it has made new exciting additions to its bouquet of products by the introduction of the new Leadway Family Benefit Plan Plus (Leadway FBPP). The Leadway FBPP has been enhanced to create unmatched value for customers, who now stand to gain from the multi-life Policy.

The core offering of the product, called the Leadway FBPP, provides those covered under the policy with the benefit of having Leadway meet the heavy burden of specified funeral expenses for their loved ones covered under the policy.

Leadway pays the specified funeral expenses in the event of the demise of the Policy-holder or any of the additional assured Lives if their death proceeds that of the Policyholder ensuring concerned loved ones can meet the immediate needs of the family without the fear of falling into financial strain.

The Leadway Family Benefit Plan Plus allows a policyholder to access a

bouquet of benefits, which includes but is not limited to funeral expenses for the policyholder or their spouse, the parents, and/or parents in-law that are named in the policy.

As part of efforts to inform the public about the benefits of the new Leadway FBPP, Leadway Assurance kicked off a week long teaser tagged; “See-Finish” heralding the product launch.

The teaser mirrored the reality of young Nigerians who are left in financial distress when aged family members pass away, especially, parents and in-laws, to mention but a few. It is at this difficult time the grieving ones are often left at the mercy of sometimes merciless benefactors.

The campaign showcased a desperate character “Mr. John” reaching out

to Nigerian celebrities on social media, to beg for financial assistance to meet the funeral expenses of his deceased father inlaw.

Also, the campaign was taken to the streets of Lagos with “pseudo Johns” situated at strategic locations around Lagos carrying the campaign message, urging Nigerians to “avoid the shame of See Finish” and take up Leadway FBPP as a

L-R: Abiodun Adedeji, director of Cosmic Insurance Brokers Ltd; Babajide Sanwo – Olu, the Lagos State Governor-Elect and Teslim Sanusi, managing director of Cosmic Insurance Brokers Ltd presenting their congratulatory card to the Governor - Elect.

comfort to create wealth for their dependents.

According to Tinashe Muyambo, the general manager of Leadway’s Life Division, the new Leadway FBPP is now designed to provide more than just the funeral benefits upon the death of any of the assured lives. With some additional benefits built into it as compensation package for the surviving and grieving loved family members of the Policyholder.

Tinashe revealed that, the sum assured on the plan for the policyholder and spouse is unlimited and can be specified in accordance with their preferences, for parents and in-laws the sum assured up to maximum limit of N5 million.

According to him, “This Leadway FBPP plan has other unique benefits including; payment of a sizable amount for entertainment expense in the event of any of the assured life named in the policy and additional monthly payment for six months in form of family income in the event of death of the Policyholder only.

Munich Re expects €120mn Boeing/ Ethiopian Airlines loss

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unich Re is expecting to incur losses in the range of €100 million to €120 million as a result of the recent Ethiopian Airlines crash and subsequent grounding of Boeing’s 737 Max aircraft.

Speaking at a press conference, Munich Re’s CEO of Reinsurance, Torsten Jeworrek, said that the firm was anticipating claims from the loss of the Ethiopian Airlines plane itself, the loss of passenger life, and potential liability for the global suspension of Boeing’s 737 model.

All 157 passengers were killed when Ethiopian Airlines flight ET302 crashed shortly after take-off on March 10.

It was the second incident in just five months to involve a Boeing 737 Max 8 plane, following the fatal Lion Air crash in Indonesia last October.Munich Re has almost a 50 percent share of London-based aviation insurance pool Global Aerospace, which recently confirmed it was the lead insurer for Boeing, alongside broker Marsh.

Chubb and Willis Towers Watson have also been confirmed as the lead insurer and broker, respectively, for Ethiopian Airlines, while Swiss Re said that it was one of the minor insurance providers for Boeing, as well as for Ethiopian Airlines.

Hannover Re could also face exposure of more than €10 million, according to reports from Reuters, who spoke with Torsten Leue, CEO of the reinsurer’s parent company, Talanx AG. Jeworrek explained that Munich Re would incur losses from its participation in the Global Aerospace Pool and through risks it had underwritten directly, although its claims would be capped by an upper limit in the coverage. Boeing was pressured into grounding its entire fleet of 737 Max aircraft in the days following the Ethiopian Airlines crash due to concerns that an automated anti-stall system in the model could be responsible both for this incident and the earlier Lion Air crash.

Boeing’s shares fell by over 11% last week and it lost £26 billion of its market value, the biggest hit the company had taken in two decades.

The Chicago-headquartered manufacturer could also face more financial trouble, with airlines including Norwegian Airlines, Lion Air, VietJet, Saudi Arabian Airlines and Kenya Airways either seeking reparations for their grounded planes or cancelling 737 orders, according to Russel Group.

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Insurance as buffer to Refin Homes affordable housing for middle-class income earners Stories by Modestus Anaesoronye

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strong partnership with insurance companies to protect consumers in the area of repayment default, loss of employment and death will be a buffer to Refin Home’s quest to provide affordable housing to middle class income earners across the country.

Refin Homes Limited, a relatively new player in the real estate market has come with a unique model that target to provide affordable housing to everyone in such a flexible manner that will not only guarantee quality, but also provide opportunity irrespective of your income level. The company was established with the aim of bridging the housing gap in Nigeria.

“Our key focus is providing affordable housing for

middle-class income earners without compromising quality because we are the community builders, set to establish, develop, strengthen and increase economic activities within identified localities, promoters of the company said.

With over 41 years experience, drawn from across banking, mortgage and housing development, the key actors have seen the gap in the market and are committed to lifting the housing sector.

At a stakeholders interactive session with the theme ‘Creating the Future’ organised by Refin Homes held in Lagos, experts in the sector called for collaboration between government and private sector to bridge the country’s housing gap.

Olatunde Macaulay, managing director of the company said Refin Homes came into the real estate market to focus on providing alternative housing solutions that add value to

L-R: Olatunde Macaulay, managing director of Refin Homes, Kazeem Owolabi, deputy managing director; and Charles O ‘Tudor, principal consultant at ADSTRAT Branding Management Consortium, at the ‘Create The Future’ breakfast event in Lagos.

lives, especially the underserved middle to lower end spectrum.

He said, “For over 10 years, a 17 million housing deficit has been bandied

around. The government cannot handle this deficit alone. There has to be a public/private partnership and other private institutions such as ours, must

help the government in reducing this huge housing deficit as soon as possible” he added.

He said the theme, “Create The Future” is a strategic

platform that calls the attention of all Nigerians on the need to plan ahead today by putting in place modalities that ensure a solid roof over their heads. “The future is not somewhere distant, the future is now, and we want to sit with Nigerians to plan based on your desires and capacity to give you the home of your dreams” Macaulay added.

Kazeem Owolabi, the COO and co-founder of the firm also speaking at the event, advocated for efforts to be directed more at providing affordable housing for the middle and lower classes of the society.

He said it was unacceptable that Nigerians work so hard and yet, many of them cannot even think of owning their own homes.

Owolabi believes that in the long term, the Nigerian economy becomes the biggest beneficiary of a system that makes it easy for people to own quality and affordable homes.

Premium Pension appoints new independent director

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s part of strategy to provide excellent services and propel the company to greater heights, the Board of Premium Pension Limited, has appointed Nat Ofo, as an independent director. Ofo succeeds the former Independent Director, Mosun Belo-Olusoga, who retired from the board after completing her tenure.

Nat Ofo is a professor of Corporate Law and Governance at the Department of Business Law, College of Law, Igbinedion University, Okada, and Edo State.

He joined Igbinedion University, Okada, from Nigerian Breweries Plc (a subsidiary of Heineken N.V. of The Netherlands) where he occupied Middle Management and Senior Management positions in the legal, finance, supply chain, human resource and company secretarial functions during his 14year career at the company. While he was the Company Secretary/Legal Adviser of Nigerian Breweries Plc, he was also a Director of NB Registrars Limited (a then subsidiary

of Nigerian Breweries Plc).

He is a Fellow and the immediate past President of the Institute of Chartered Secretaries and Administrators of Nigeria and remains a member of its Governing Council; a member of the Board of the Institute of Internal Auditors (IIA); a Fellow of the Institute of Directors (IoD) Nigeria and a member of its Executive Committee (ExCo).

Ofo is a thoroughbred professional on corporate governance, which was the focus of his doctoral thesis. As a prolific writer, he has written numer-

Nat Ofo

ous articles on corporate governance and other lawrelated issues in several learned journals and business periodicals, locally and globally.

Furthermore, Nat Ofo was the vice chairman of the Steering Committee commissioned by the Federal Government of Nigeria in 2013 to harmonise the numerous corporate governance codes in Nigeria and develop a National Code of Corporate Governance for the country.

He was a member of the Technical Committee appointed by the Financial Reporting Council of Nigeria in 2018 to review the suspended National Code of Corporate Governance, which developed the Nigerian Code of Corporate Governance 2018.

The appointment of Ofo to the Board of Premium Pension Limited is expected to deepen the existing corporate governance culture of Premium Pension Limited, a licensed Pension Fund Administrator which started operations in 2005, with current Assets Under Management standing at N621 billion.

L-R: Asue Ighodalo, chairman, Sterling Bank; Adepoju Aderounmu, head, Banking Operations, Sovereign Trust Insurance Plc; Segun Bankole, head, Corporate Communications and Brand Management, Sovereign Trust Insurance Plc; and Babajide Olatunde-Agbeja, executive chairman, Boff & Co. Insurance Brokers at the cocktail of the 7th Sovereign Trust Insurance Plc Open Golf held in Ibadan.

Sanwoolu, incoming Lagos governor urged to give priority attention to insurance

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he Governor Elect of Lagos State, Babajide Sanwoolu has been told to pay premium attention to the use of insurance as a recipe for disaster management, as well as a risk management strategy.

Teslim Sanusi, managing director of Cosmic Insurance Brokers, made the call when he paid a congratulatory visit on the governor elect of Lagos State, Babjide Sanwoolu in Lagos, recently.

Sanusi who congratulated the Governor Elect, drew the attention of the

State Government under the in-coming administration to the need to encourage the Insurance of Public and Government property in reducing or eliminating the menace of collapsed buildings in the state.

Lamenting the increasing spate of collapsed buildings with the attendant pains foisted on the people of the state, Sanusi advised the state government to continually undertake surveys and risk audits of public buildings in the state, through recommendations from

professionals and ensure that insurance companies insist on such risk improvement reports before accepting such risks.

Sanusi, who was a former President of the Nigerian Council of Registered Insurance Brokers, also seized the opportunity of the visit to commiserate with the State Government over the loss of lives occasioned by the collapse of a public building in the state and appealed to the public to always embrace insurance in order to cushion losses to lives and property in the event of mishaps.

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In Association with

CPS: Pension in life, pension in death Modestus Anaesoronye

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he Nigeria Contributory Pension Scheme (CPS) introduced by the Pension Reform Act 2004 and revised in 2014 recognises the importance of the contributor, his contribution and what happens to him while in employment. This is both when there is life and in death. With this realisation that there is life and there is also death, the CPS has taken care of the contributor, directly or indirectly, should either of the two happen, as long as the person has made his contribution through his employer.

Section one part 3 of the Pension Reform Act 2014 states that where an employee dies, his entitlements under the life insurance policy maintained under section 4(5) of this Act shall be paid by an underwriter to the named beneficiary in line with section 57 of the insurance Act. That, upon receipt of a valid Will admitted to probate or a Letter of Administration, confirming the beneficiaries under the estate of the deceased employee, the Pension Fund Administrator (PFA) shall, with the approval of the Commission, release the amount standing in the retirement savings account of the decease to the personal representative of the deceased or to any other person as may be directed by a court of competent jurisdiction, in accordance with the terms of the Will or the personal law of the deceased employee, as the case may be.

In another case where an employee is declared missing and if is not found within a period of one year from the date he was declared missing, a board of inquiry is set up by the National Pension Commission (PenCom), which concludes that it is reasonable to presume that the person has died, and in this case, the provisions of this section shall apply.

While this law is there to enhance the welfare of the contributor, there are a number of challenges which beneficiaries would have to contend with if there was no prior effort to address them before death occurs. This is the issue of having not a Will and dying interstate.

One of the challenges which

families of the deceased pension contributor faces after the death of their loved one is the process of claiming his pension entitlements, making it important that a pension contributor should procure a ‘Will’ for management of his or her estate should the unexpected happen.

A will is the most practical first step in estate planning, and makes clear how you want your property to be distributed after you die. It is simply a written declaration or statement by a person (the “Testator”) naming one or more persons, human or entity, as beneficiaries of his/her property after death.

Another person or persons are also named in the Will as executors of the Estate with property to be distributed after the Testator’s death.

Writing a will can be as simple as typing out how you want your assets to be transferred to loved ones or charitable organisations after your death. If you don’t have a will when you die, your estate will be handled in probate, and your property could be distributed differently than what you would like.

It may help to get legal advice when writing a will, particularly

RC634453

Diamond Pension Fund Custodian Limited 1A, Tiamiyu Savage Street, Victoria Island, Lagos State.

Tel: 01-4613753, 2713680, 2713954 Fax: 01-2713955 Email: info@diamondpfc.com Website: www.diamondpfc.com

when it comes to understanding all the rules of the estate disposition process.

A will must be written in sound judgment and mental capacity to be valid; The document must clearly state that it is your will.

An executor of your will, who ensures your estate is distributed according to your wishes, must be named; It is not necessary to notarise or record your will but these can safeguard against any claims that your will is invalid and to be valid, you must sign a will in the presence of at least two witnesses.

What to do if there is no will If someone dies without making a will, they are said to have died ‘intestate’. If this happens, the law sets out who should deal with the deceased’s affairs and who should inherit their estate including property, personal possessions and money, as well as his pensions.

Getting help from a solicitor When someone dies without leaving a will, dealing with their estate can be complicated. It can also take a long time - months or even years in some very complex cases.

If matters are complex or you feel you need help, it’s a good

idea to consult a solicitor as soon as possible. It’s advisable to show them all the information and documentation you have about the deceased person’s property, belongings and financial affairs.

In the meantime, it may be a good idea to put small valuable items away for safekeeping. Usually a close relative like a spouse, child or parent will have the legal right to sort out the estate of the person who has died.

Letters of Administration In order to be able to administer someone’s estate you normally need to apply to the Probate Registry for a Letters of Administration. You can ask your solicitor to help you with applying for a grant or you can make a personal application.

On receipt of the grant you become the ‘administrator’ of the estate. The grant provides proof to banks, building societies and your pension fund administrator that you have authority to access and distribute funds that were held in the deceased’s name. The overall process is often referred to as ‘obtaining probate’, though technically this term applies where there was a will.

This section is created to increase awarness and deepen knowledge about the contributory pension scheme.

If you have enquiries or contributions, send to this e-mail: diamondpfcbusday@yahoo.com

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Maritime e-Commerce

Corporates’ profit margins shrink over high logistics cost in Apapa ports …As ACSC launches 2018 Nigerian Logistics and Supply Chain report amaka Anagor-Ewuzie

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rofit margins of corporate entities using the Apapa Port have gradually dwindled following the significant increase in logistics costs , the 2018 edition of the Nigerian Logistics and Supply Chain report reveals.

The report revealed that in the last quarter of 2018, haulage of a one by 40 foot container transported for N120,000 while one by 20ft container transported for N80,000 to warehouses within Lagos, increased by 400 percent to N600,000 and N550,000, respectively.

Also, the report, which was launched in Lagos last Wednesday, stated that transporting one 20ft container from Apapa or Tin-Can Island port, to Kaduna increased from N500,000 to N900,000 while it cost N1 million to transport a 40ft container from two ports in Lagos to Kano, which used to cost N600,000.

According to the report, transporting a 40ft container from Apapa or Tin-Can Island port to Kano or Yola now stands between N1.4 million and N1.5 million while the cost of transporting a 20ft container to Onitsha, the commercial nerve centre of the southeast, rose from N250,000

Source: 2018 Nigerian Logistics and Supply Chain report

to N550,000 and transporting a 20ft container increased to N750,000.

“A review of the financial statements of some publicly quoted firms gives credence this. Honeywell Flour Mills Plc, a major flour milling company in Nigeria, attributed the dip in its profitability in 2017 to the Apapa traffic gridlock, saying that the dilapidated road infrastructure and chaotic traffic situation in and around the nation’s premier port, made it inordinately difficult, and enormously

expensive to transport goods out of the factory in Tin-Can island. This challenge resulted in a transport cost increase of about 25 percent,” the report states.

“Flour Mills of Nigeria also stated in its nine months financial statement review in 2018 that the devastating effect of the traffic congestion in Apapa resulted in a 2 percent loss in revenue to N297 billion, compared to N304 billion in the corresponding period. Another firm hugely affected was Dangote Sugar

Refinery Plc for rise in haulage cost by 1,615 percent in 2018.

“Small scale businesses, especially those involved in the exportation of agricultural produce are not left out in the crisis. According to estimates by the Lagos Chamber of Commerce and Industry, Nigerian exporters lose $10 billion annually due to Apapa gridlock, as trucks bearing goods meant for export spend upwards of three weeks within the neighbourhood of the port before gaining access to the terminal,” the report added.

Due the protracted delays, the report noted that the quality of most of the goods depreciates before they get to their destinations, adding that it is one reason many Nigerian goods are usually rejected for failing to meet the required standards, as they are usually perishable goods with limited life spans.

Speaking at the launch in Lagos, Obiora Madu, directorgeneral of the African Centre for Supply Chain, who said that the report, which was produced to provide infor-

mation on Nigeria’s logistics sector, pointed that deficit in logistics infrastructure has serious impact on cost of doing business .

Madu disclosed that it is cheaper to bring a container from China than to take it out of the port to the importer’s warehouse. He added that the road infrastructure depleted as a result of the demise of rail infrastructure.

“To address the Apapa problem, we need to rebuild our road infrastructure. There has to be a way of isolating vehicles which have business in the port and those looking for business. If we have Radio Frequency Identification (RFID) tags on those trucks that have business, it will become easy to isolate them,” Madu said.

Delivering the keynote speech, Uma Obasi, said that without modern transportation systems and infrastructure, a country remains underdeveloped.

Obasi, who pointed to development of modern rail infrastructure as a way of resolving the problem of Nigeria’s logistics infrastructure deficit, said European development economists have argued that the existence of modern transportation networks- such as high-speed rail infrastructure constitutes a significant indicator of a country’s economic advancement.

Shippers Council, SON harp on integrity, ethics to fight substandard imports amaka Anagor-Ewuzie

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he Nigerian Shippers’ Council (NSC) and the Standards Organisation of Nigeria (SON) have identified the need for port industry players to adhere strictly to codes of ethics with utmost integrity, in order to facilitate trade and curtail the influx of substandard goods into the country.

Both agencies stated that about 80 percent of substandard cargoes that find their way into the nation are attributable to lack of integrity on the part of industry players.

They called on players in the maritime sector to always carry out their activities in line with global best practices.

At a joint sensitisation

workshop on ethics and integrity for maritime stakeholders held in Lagos by the SON and NSC, Osita Aboloma, director-general of SON, who was represented by the director, Compliance, Obiora Manafa said the partnership with NSC was in line with the Federal Government’s directive on synergy among its agencies to promote the ease of doing business and the fight corruption in Nigeria.

He pointed out that the workshop further exemplified the collaboration between SON and NSC, in ensuring effective service delivery to stakeholders.

Aboloma said adherence to code of ethics would ensure that customers and stakeholders receive services in a fair manner and provide necessary guidelines

for adjudging the integrity of services rendered.

He added that SON has been proactive in ensuring that requisite standards are available for most products in the Nigerian markets, stressing that it has set up a regulatory framework for compliance with these standards.

He said the SON website is regularly updated with information on its activities, procedures, charges, penalties and policies in conformity with the presidential executive order on the ease of doing business.

He noted that human capacity building is also being seriously pursued to ensure necessary manpower and provide excellent services beyond the expectation of its clients in the maritime industry and other sectors of

the economy.

Aboloma expressed concern over the unsavoury issues of false declarations, importation of substandard products or importation without undertaking the offshore conformity assessment (SONCAP) process that are still in practice, maintaining that SON has been battling tooth and nail to curtail these non-conformances.

“In line with our culture, we do hope that we shall find comfort in doing what is right at all times in order to save the nation from decadence and the dangers associated with the importation and distribution of substandard products in Nigeria,” he said.

Hassan Bello, executive secretary of NSC, said the seminar was aimed at ensuring that stakeholders adhere

to international best practices in the conduct of their export and import businesses.

This, he noted, would help to actualise the NSC’s drive for a new port order, reduce costs, improve efficiency and combat the influx of substandard products.

He commended SON’s unwavering efforts to rid the country of substandard products, adding that the council’s goal was to promote an efficient ports system that would encourage healthy competition, enthrone transparency, facilitate trade, reduce cost of doing business and ensure that all players are aware of their duties, obligations, responsibilities and liabilities.

Bello said high ethical practices within the ports system would help minimise vices such as impunity, pre-

sumptuous behaviours and ignorance, with respect to adherence to procedures, rules and regulations.

Making a presentation titled ‘Role of SON in Nigeria’s Maritime Industry,’ Manafa acknowledged that most importers have begun to conform to standards in response to SON’s continuous engagements and sensitisation programmes on the negative implications of illicit trade to the economy and welfare of Nigerians.

“Although some importers have refused to change and are still indulging in unwholesome activities such as false declaration and cloning of established brands, we will continue to fight to reduce this nefarious trade drastically and bring perpetrators to book” he said.

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Maritime e-Commerce

Kobo360 logistics plans expansion to Ghana, Kenya Stories by amaka Anagor-Ewuzie

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obo360, a technology logistics platform, has announced that it will expand operations into Accra, Ghana and Nairobi, Kenya.

Backed by international and African investors such as International Finance Corporation (IFC), Y Combinator and TLcom, the move is in line with Kobo360 plans to build a global logistic operating system (GLOS) that will power trade and commerce across Africa and other emerging markets.

Positioned as key trading and transport hubs on the African continent, the new territories have seen almost exclusively double-digit growth - Togo (12 percent), Kenya (10 percent) and Ghana (7.9 percent), and Kobo is now strategically positioned to grow with them.

In Nigeria, Kobo360 has stood at the forefront of logis-

Hadiza Bala Usman (r), managing director, Nigerian Ports Authority (NPA), and Onana Ndoh Lin Dieudonne (l), secretary general, the Port of Douala, Cameroon, during a courtesy call to NPA in Lagos recently.

tics, covering over 80 percent of the country and recording a 40 percent cost reduction in the supply chain. The company now plans to aggressively extend to other key markets and expects to be in nine African countries before the

end of 2019.

Speaking from the Africa CEO Forum in Kigali, Ife Oyedele, co-founder and CTO of Kobo360, said there is an estimation that Africa needs ten times the number of trucks to meet short-term commercial

NIMASA, India sign MoU to train Nigerian cadets

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etermined to ensure that Nigerian cadets under the Nigerian Seafarers Development Programme (NSDP) get complete training that will certify them as internationally recognised seafarers, the Nigerian Maritime Administration and Safety Agency (NIMASA) has signed Memorandum of Understanding with the Maritime Academy of India for on-board sea time training of some graduates of the programme.

Dakuku Peterside, director-general of NIMASA, who disclosed this in Lagos recently, said the MoU covers the training of 60 cadets in three batches of 20 each.

He congratulated the 20 trainees under the first batch of the scheme and tasked

them to be dedicated, disciplined, and committed to making the best use of the opportunity to develop themselves and aid national development.

“We are proud that you will be joining the global merchant fleets. Be sure to represent Nigeria positively. Under the current leadership of NIMASA, we are working very hard to provide sea-time for all that have gone through our NSDP,” he said.

Peterside said the agency is determined to explore and use appropriate avenues to ensure that Nigerian seafarers get the right exposure and training to excel in the global maritime space, to enable Nigeria become a supplier of qualified seafarers to the rest of the world.

According to him, NIMASA is negotiating with other academies with access to ocean going training vessels in countries, like Turkey and United Kingdom, among others, to secure sea time for Nigerians. He said the agency wants to replicate in Nigeria the progress recorded under similar partnerships in countries, like Philippines.

Neeraj Kumar, managing director, TMC Shipping Pvt. Limited, representative of Maritime Academy of India, who was at the MoU signing ceremony, appreciated NIMASA’s effort to develop seafarers.

NIMASA has trained about 2,000 Nigerians under the NSDP scheme, with many cadets at various stages of completion of the programme.

transport needs, since rail continues to underperform.

“Time, cost and quality are key drivers of success in logistics which is why we, at Kobo360, are building a global logistics operating system that will ensure fast

movement of goods at a lower cost for businesses across Africa,” Oyedele said.

According to him, Kenya is the hub of East Africa; it is the most innovative market in technology, meaning that winning Kenya will enable the company to win across the East African region.

“From here, we will expand to Uganda and Tanzania. By adding Ghana to our West African territories of Togo and Nigeria, we will link all the market to a Global Logistics System and this will help us to serve our customers across a seamlessly lined Pan-African market,” he added.

Oyedele said that “location is a critical factor in global logistics, and each African country we have chosen to expand into has its own value proposition”. He added that these markets are among the fastest growing economies and Kobo360 wants to grow with them by supporting the thousands of freight companies who require a safe, reliable and cost effec-

tive delivery of their goods to cargo recipients across the continent.

Kobo360 has partnered with global logistics brands including Dangote Group, DHL, Unilever and Lafarge and has moved over 297M KG of goods, serviced over 1,450 businesses and aggregated a fleet of over 10,000 drivers and trucks. Launched in 2016, with a vision to revolutionise the logistics value chain in Africa, currently estimated at $150 billion, Kobo360 efficiently connects end-to-end haulage operations to help cargo owners, truck owners and drivers, and cargo recipients to achieve an efficient supply chain framework.

K o b o 3 6 0 ’s o f f i c i a l l y launched in Togo in March, where the company announced its affiliation with the Ministry and Office of Postal Affairs and Digital Economy, as well as the Mediterranean Shipping Company. Kobo360 will officially launch in Ghana on 4 April, and in Kenya by May 2019.

No infighting among Customs chiefs in Lagos - Ologbese

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lusegun Ologbese, chairman, Ogbese Marine Services Limited, said there is no infighting among the top management of the Nigeria Customs Service (NCS) in Lagos, has said.

This was following claims that officers of NCS within Zone ‘A’ have been locked in supremacy contest in the discharge of their statutory responsibilities.

The battle was said to have led to a drastic reduction in the revenue generated by the Customs formations in the zone, just as anti-smuggling activities and trade facilitation have been relegated.

Speaking in Lagos, Ologbese said the surveillance team of Federal Operation Unit (FOU) of the NCS recently went

to Murtala Muhammed International Airport Command (MMIA) Lagos, on the directive of Aliyu Muhammed, Customs Area Controller (CAC), to arrest a donkey skin said to worth N7.2 billion.

According to him, FOU is an overall enforcement unity of the NCS which can strike anywhere in Nigeria.

He described Jane Shoboki, Area Controller of MMIA Command as a very experienced Customs officer, who knows these facts and would not have raised eyes brow on issues as being claimed in some quarters.

Commending Ali for the strides the NCS has recorded since his appointment, he said that more would be achieved in the months ahead especially in the area of revenue

generation, anti-smuggling and trade facilitation.

He claimed that the harmonious relationship among the various commands of the NCS in Zone ‘A’ and other stakeholders in the maritime industry, especially licensed customs agents and terminal operators, have helped to ensure that the service actualise its mandate as a para-military organisation.

“Sanity was brought to the operations of the NCS with the appointment of Ali. I want to encourage him not to relent as a lot still need to be done.

He must ensure that Customs formations across the country do the right thing at all times.

He should put his eyes on all his officers, particularly those handling very sensitive and strategic positions”, he suggested.

While calling for total compliance of port users, especially importers and licensed customs

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Over 70 countries delegates head to Africa Rail confab Pg 31

Hyundai upscale on Smartphone-based Digital Key MIKE OCHONMA mikeochonma@gmail.com

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yundai has announced plans to introduce new ‘digital key’ technology on future models, allowing drivers to unlock and start their car via a smartphone.

With this new thinking, selected new cars will start offering the technology during 2019, requiring users to download the digital key as an app, with each car allowing up to four authorized devices.

The system uses highly secure near field communication (NFC) technology, with antennas fitted in the front door handles and in a wireless charging pad inside the car.

Users unlock the car by bringing an authorized smartphone close to the door, and then start the car by placing it on the charging pad and pressing a start/stop button.

The vehicle will also recognize each user’s preferred settings, such as position of mirrors, seats and the steering wheel, as well as controls for the audio, video and navigation systems, and the head-up display.

Mike Song, Hyundai’s Head of Operations for the Middle East and Africa said, ‘’This is a practical application of Hyundai’s connected vehicle technology to create new, genuinely useful functions,”. “Not only will people be able to use their smartphone in place of a key, but they will also be able to authorize other

drivers simply by sharing the app, without having to keep track of multiple sets of car keys.”

When sharing the car, a Hyundai owner will be able to limit the functions available for each digital key. This could include placing a time-limit for when the key will expire or setting an alert to warn the owner if the car is being driven too fast or is outside a designated area.

As well as offering convenience for drivers, the new technology also recognizes the changing nature of mobility and car ownership, such as the growing popularity of car-sharing schemes.

Once car-sharing becomes more widespread, the digital key will be further programmed

to support hassle-free vehicle rental, so the owner and driver can share a key without needing to meet in person.

Conventional or card-type keys will still be provided for those times when sharing the digital key would be impractical, such as when leaving the car in a repair workshop or valet parking.

Near field communication (NFC) technology is a form of Radio Frequency Identification (RFI) with high levels of security, data transmission only taking place when the device and reader are no more than a few centimeters apart. It is the same technology used for contactless payments via a smartphone.

“The Digital Key will ben-

efit a very wide range of future Hyundai customers, as well as enabling innovative new schemes for vehicle sharing. We are studying other ways to harness this type of connected-car technology to greatly enhance the driving and ownership experience”. Said Ho Yoo, group leader of Hyundai Motor electronics development group.

Hyundai has also outlined plans to be the first car company to introduce smart fingerprint technology that allows drivers to unlock and start the car. Announced late in 2018, fingerprint technology will be introduced for selected markets on the New-generation Santa Fe to be launched during the first quarter of 2019.

Lagos autofair aimed at sectoral growth - BKG boss

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KG Limited, orgainsers of the annual Lagos Motorfair & Autoparts Expo Nigeria have disclosed that, the forthcoming edition of the exhibition is aimed at stimulating activities in the sector with the objective of showcasing the capacities and potentials of the sector to the economy.

Ifeanyi Agwu, managing director BKG Exhibitions Limited who also doubles as the chairman, Organizing Committee for the event, regretted that, the lull in the sector is taking a lot of shine out of the industry, thereby making it difficult for stakeholders to showcase the abundant opportunities and offers in the sector.

According to him, it is no longer news that the automotive sector in Nigeria is passing through rough and tough times; rather, what should be on every stakeholders’ mind should be how to unite to combat the scourge.

He said, it is in an effort to tackle the teething challenges confronting the industry that it has become necessary using the platform of the upcoming event to bring the sector into the front burner of economic discuss in the country.

Cheki Finance offers access to used, new cars purchases

Aliyu Jelani, DG, NADDC inside the Ford EcoSport when it was unveiled by Coscharis Motors at one of the Motorfairs organised by BKG Exhibitions.

Re-emphasizing the importance of the event, Agwu said that by using the campaign of “One Expo; Continental Spread” the event aims at showcasing the importance of the Nigerian market as the hub of automotive business in Sub-Sahara

Africa; and one that is highly rewarding for investments.

The organisers promised to add more pep to promoting the spare parts sub-sector inline with the determination of the organizers to champion the development and

thriving of autoparts sub-sector as leeway to fast-tracking the development of the auto industry.

“In this edition as we have been doing for sometimes now, we will champion the autoparts section to seeing to making Nigeria becomes the hub of the business in Africa. We want to make it a strong point of real taking off of a realizable auto policy”.

Agwu advised the Federal Government to focus more on spare parts manufacturing in place of assembling, arguing that automotive spare-part is where the real technology transfer takes place.

It involves precision and proper planning more than the coupling that takes place in assembling. This will give rise to establishing of more Original Equipment Manufacturers (OEMs) and increase employment.

There should be a review of the ongoing auto policy to make it achieve the desired ends. He said.

From May 7-12, 2019 at the Federal Palace Hotel, Victoria Island, Lagos, venue of the event; each of those days that the fair will last is loaded with activities and events that will make this edition remarkably rewarding to the exhibitors, visitors and other stakeholders, Agwu, revealed further.

heki, Nigeria’s leading cars online marketplace, recently announced the launch of Cheki Finance; a car loan service designed to effectively meet the financing needs of car buyers in the country.

Shedding light on Cheki Finance, the CEO, Cheki Nigeria, Gbenro Dara said, “The ultimate aim of Cheki Finance is to make car loan services available to every salary earning Nigerian. Getting a desirable car shouldn’t be a financially arduous affair.”

According to Cheki Nigeria, this car loan offering is unique because of three core attributes: Loan applicants can take possession of their cars within 3 days from the date of application, successful loan applicants pay 50 percent of car’s value

upfront and can spread the balance over a 12-month to 3-year period and monthly repayment is less than 40 percent of the applicant’s monthly salary.

Cheki is a digital marketplace for quality vehicles. The online platform provides private car sellers and car dealerships of all sizes with the most qualified leads while simultaneously providing car buyers with a wide variety of quality cars. Cheki offers a range of supplementary services that include car loans, insurance, and car buying concierge.

This service aims to provide car buyers with quick car loans for the purchase of Nigerian used cars, foreign used (Tokunbo) cars, or brand new cars that are available on Cheki’s website - cheki.com. ng. Cheki offers this car loan service in collaboration with top-rated financial institutions in Nigeria.

Car buyers can begin their loan application process by searching for their prefered cars on Cheki.com.ng and clicking ‘Apply’ on the Cheki Finance section. Alternatively, they can fill the form (online) on the Cheki Finance webpage or call 0813 985 9971.

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Chinese automakers renew drive to go global

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MM project embarks on a journey of Discovery MIKE OCHONMA mikeochonma@gmail.com

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and Rover has been engineering vehicles capable of tackling the toughest terrain around the world for more than 70 years.

Now it is working with the Mobile Malaria Project, winners of the 2018 Land Rover Bursary in partnership with the Royal Geographical Society (with IBG), as it heads to sub-Sahara Africa to embark on a unique eightweek journey of Discovery.

Made up of three Oxford University researchers, led by George Busby, the Mobile Malaria Project will travel more than 6,300km across Namibia, Zambia, Tanzania and Kenya.

Driving a specially-modified Land Rover Discovery, they will investigate the challenges facing those on the front line of malaria control in Africa where 90 per cent of the world’s cases occur.

Designed and developed by Land Rover Special Vehicle Operations, Discovery is equipped with a mobile genetic sequencing laboratory that makes full-use of the vehicle’s 1,137-litre load space.

Not only does it feature a fridge/ freezer unit to safely store scientific supplies, there is also a bespoke

load space configuration frame system with specially-designed storage equipment cases and an on-board expedition battery.

The exterior comes with bespoke additions too, including a purposebuilt dual sun awning, rescue equipment, a winch, sand/mud tracks, expedition roof rack and LED night driving lamps.

These modifications will allow the team to trial portable DNA sequencing technology, in collaboration with African research centres, to better understand how the technology can be used in different locations. This will provide important information about malaria parasite and mosquito populations, including drug and insecticide resistance.

George Busby, Mobile Malaria Project Expedition Leader, admitted that the group is humbled that Land Rover and the Royal Geographical Society (with IBG) have chosen the project as the 2018 bursary winner.

Although global malaria rates have halved over the past 20 years, progress more recently has stalled. ‘’By working with colleagues in Namibia, Zambia, Tanzania and Kenya, our journey will help us to understand the challenges facing malaria researchers in Africa in 2019’’.

He stated.

Steve Iley, chief medical officer

at Jaguar Land Rover (JLR) also disclosed that Malaria scourge is a global issue which impacts millions of people worldwide. At JLR, we are passionate about using our technology to empower talent and enable experts in their field to make a real difference in our world. ‘’Through the bespoke technology developed by our Special Vehicle Operations team, this project has the potential to deliver a real insight into malaria control globally and I am proud that Land Rover can be a part of that journey’’. The company official declared.

The expedition group has also teamed up with another of Land Rover’s global humanitarian partners, what3words, to accurately plan their route, navigate on the ground and document their findings in real-time.

With a 30-year track record of tackling the most difficult terrain and reaching threatened habitats and vulnerable people across the world, and equipped with the latest all-terrain capability technology, the vehicle will allow the team to travel with confidence no matter the conditions they face.

The Mobile Malaria Project will depart the United Kingdom on last Friday to begin its eight-week expedition.

Daimler to decide Smart future by year-end, report says

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aimler has restructured Smart into a full-electric brand. The Smart ForTwo Coupe electric drive is pictured. The German automaker will decide on the future of its money-losing Smart brand by the end of this year. Smart’s global sales fell 4.6 percent to 128,802 units last year.

Daimler, which sells the Mercedes-Benz and Smart brands, is losing patience with losses at its microcar brand, the paper said. Incoming CEO, Ola Kallenius, who succeeds Dieter Zetsche in May, has “no history with Smart” and “no scruples about killing the brand if necessary,” the paper quoted a company insider as saying.

Since its launch in 1998, Smart

hinese automakers’ exports to emerging markets have thinned to a trickle over the past decade, after key regions such as Russia, Brazil, North Africa and the Middle East encountered economic or social instability.

Now, equipped with better technology and a new generation of products, Chinese car brands are regrouping to expand overseas by targeting Europe and a select group of major emerging markets.

Leading the effort are Geely Automobile Holdings which is the largest domestic Chinese passenger vehicle maker and Great Wall Motor (GWM), China’s largest light-truck manufacturer.

The trade dispute between China and the United States has prompted Geely to suspend plans to build vehicles under its premium Lynk & CO brand at Volvo Car’s plant in South Carolina. But the company remains committed to launch the brand to Europe.

Lynk & CO, whose products share the platform as the Volvo XC40, will launch sales in Western Europe in the first half of 2020, Geely President An Conghui told journalists Tuesday in South China city of Zhuhai, where he kicked off sales of the first multipurpose vehicle for the Geely brand.

In addition to Lynk & CO’s products, the company plans to introduce Geely-badged vehicles, including the minivan, in Europe, An noted, though he stopped short of providing more details on the plan.

After acquiring a 49.9 percent

stake in Malaysian car brand Proton in 2017, Geely has made Southeast Asia one of its main export markets.

In December, it started shipping the right-hand-drive version of the Boyue, Geely’s top-selling compact crossover in China, to Malaysia.

The vehicle is now distributed there under the Proton brand.

Following the Boyue, Geely plans to market and sell more products, including the minivan, through Proton’s dealerships, An added. The vehicles will eventually be assembled at Proton’s plant and sold in Malaysia and other Southeast Asian countries, according to Geely’s plan.

In 2017, Geely opened an assembly plant in Borisov, Belarus. The factory, which builds the Boyue, will supply Russia and other countries in the former Soviet Union after capacity is boosted to add other products.

Like Geely, GWM also treats Russia and its neighboring countries such as Belarus and Kazakhstan as a key market.

Meanwhile, several EV startups have disclosed plans to enter Europe. Two of them are targeting sales in Europe before year end: Aiways expects to distribute an electric compact crossover while Byton plans to sell an electric crossover.

Donald Trump’s tariffs have slowed China’s automakers’ moves to establish sales in the United States, but there are no signs their renewed enthusiasm to venture into other markets has been affected.

Kia extends open-minded approach to Ceed ...Reveals first sketch of new crossover

F has racked up losses of billions of euros, financial analysts estimate.

Daimler does not break out the brand’s financial performance.

In the latest restructuring for the brand, Daimler is turning it into an electric urban-mobility marque selling only full-electric cars. But

such a move may be too costly.To cut development costs, Daimler coengineered Smart’s current lineup of two models, the ForTwo and ForFour, with the Renault Twingo minicar but Renault is considering pulling out of the partnership, reports have said.

rom the very beginning of Ceed development 15 years ago, Kia has taken an openminded approach to potential body styles. Many have been considered, and, in creating the new Ceed range, Kia’s European designers have been given the freedom to explore many different possibilities.

With the arrival of the new Ceed, Ceed Sportswagon and ProCeed, Kia’s best-selling model family hasn’t stopped growing, and the newest member will shake things up again.

The new Ceed crossover will be named and revealed later in 2019 and with one additional idea stand-

ing out above all others, Kia is set to welcome a new arrival to the Ceed model family.

Gregory Guillaume, vice president of Design for Kia Motors Europe, explains that there is another style, another type of vehicle that the automaker feel very strongly deserves to be a new member of the Ceed family. ‘’It will the play the role that is needed to make the Ceed range stronger and even more exciting, more appealing, to European consumers. The design will be nothing like you’ve seen in the Ceed family so far. This will be the next big surprise from Kia’’. He pointed out.

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31

Local and global rail news as it breaks

Kenya, France collaborate on new Nairobi railway line

A

Over 70 countries delegates head to Africa Rail confab ….Looks at role of railways ahead 20 years MIKE OCHONMA

mikeochonma@gmail.com

I

nternational attendees from over 70 countries are expected at Africa Rail as global events company Terrapinn gets set to host the 22nd annual Africa Rail exhibition and conference that is aimed at to contributing towards the development of the rail sector across Africa.

The event which will be held at the Sandton Convention Centre, in Gauteng, on June 19 and 20 according to sources from Terrapinn is expecting 7,500 attendees from more than 70 international countries, 850 VIP buyers and 250 exhibitors.

Giving more insight into the

forthcoming conference, Athena Maharaj of Terrapinn, said that, that there will be a big focus on “looking ahead” this year to the role of railways in the next 20 years and how to prepare Africa for a new era of mobility. The event aims to contribute to development of African rail.

“Africa is looking to integrate into a global economy; it is simple as Africa’s roads are overused.

“With the massive flow of goods out of African countries including Nigeria and the flow of people throughout Africa, there is a concerted push towards railway development’’. Athena Maharaj said.

Meanwhile, Africa Intermodal is a partner event to Africa Rail this year and will be co-located and running on the same dates

as Africa Rail. Maharaj notes that there will be exponential growth in intermodal transport, and improved connectivity across the transport sector is expected to change the dynamics of trade in the region.

Some of the topics that will be discussed include infrastructure development, operations and maintenance, innovation, digitalisation, intermodal transport and updates on African projects.

New to this year’s event is Women on Track, a platform that drives and influences the growth and development of women in the rail sector. Further, Maharaj notes that Terrapinn is proud to announce the Africa Rail Internship, whereby the company will

host an engineering student for a week to join the team and learn key corporate skills.

The engineering unit of Stateowned logistics group Transnet, Transnet Engineering and Passenger Rail Agency of South Africa, are the associate sponsors.

Transnet will be supported by local steel and iron products manufacturer and supplier Naledi Inhlanganiso, wireless communications solutions provider Teltronic and railway supplier IRZ Lokomotiv as gold sponsors.

Global electronics and electrical engineering products, systems and solutions provider Siemens will serve as bronze sponsor, while more than 100 speakers will attend the conference.

French consortium will build a new railway line linking Nairobi’s Jomo Kenyatta International Airport (JKIA) and the central business district within the next two years, according to a report on Tuesday.

The commuter rail, complemented by a Rapid Bus Transit System is expected to greatly reduce travel time between JKIA and the city centre.

According to Kenyan President Uhuru Kenyatta. “A properly functioning urban commuter rail system and Bus Rapid Transit System in our cities, and particularly here in Nairobi, will transform the lives of millions of urban dwellers as well as make Nairobi a wonderful experience for tourists and visitors”.

“Our target is to have 500,000 urban commuters moving freely daily within the next 12 months.

This number will grow to over a million commuters daily within the next five years.”

The deal followed a recent state visit by French President Emmanuel Macron to Kenya to attend the One Planet Summit recently.

Following the railway agreement, Macron said he was happy with the increasing partnership between the two countries and that he would ensure that the French consortium delivered the project as agreed.

The French president added that Paris would deepen its partnership with Nairobi in regards to security, health and education.

Deals worth $3.39-billion were signed between the two countries during Macron’s visit.

Plans underway for 760km Lome-Cinkasse main line

T

ogo has announced plans to evolve itself into a major logistics hub, including the development of a 760km Lomé – Cinkassé heavy-rail line spanning the length of the country.

The development of a logistics hub in the West African nation on the Gulf of Guinea is one of three main pillars of the National Development Plan (PND) released

by Togolese president Faure Gnassingbe early this month. The government is targeting a growth rate of 7.6% in GDP by 2022.

The line is expected to be developed through a public-private partnership (PPP) in line with the Togo government’s strategy of using private finance to fund 65% of the PND, which is estimated to cost more than Central African Francs 4.6 trillion ($7.9bn).

Germain Meba, president of the Chamber of Commerce and Industry of Togo (CCIT), said

the development of the Tema – Ouagadougou main line in neighbouring Ghana highlighted the need for Togo to keep abreast with developments in the region and stay competitive.

“We must also set up our network as soon as possible,” Meba said. “Without a railway junction, port traffic is likely

to be diverted to neighbouring countries, such as Ghana.”

Currently, Togo has a small network used to transport phosphate from production sites to port. However, no passenger and mainline freight services have operated in the country since the mid-1990s.

The government-owned Togo

Invest Holding (TI) has been charged with developing the line. TI says Togo’s deep-water port in Lomé has the potential to attract large vessels, and the development of the line would unlock economic benefits in the regions.

“The vision of the Togo Transport Corridor is centred on the construction of a new heavy rail line combined with improvements in road and telecommunication infrastructure that extends from the port of Lomé to the northern border crossing of Cinkasse,” TI says.

“The Transport Corridor project aims not only to support the development and growth of the Togolese economy, but also to stimulate cross-border trade and the growth of the hinterland economies; these goals will be achieved by developing strategic infrastructure and investing in large scale anchoring projects’’.

Tokyo light rail line to run on renewable energy

J

apan’s Tokyu Corporation announced on Monday that Setagaya Line in Tokyo will become the first urban rail line in Japan to run entirely on renewable energy.

The switch to hydroelectric and geothermal power supplied

by Tohoku Electric Power is forecast to reduce equivalent CO2 emissions by 1263 tonnes a year.

The 5km line from SangenJaya to Shimo-Takaido serves 10 stations in Setagaya west of Tokyo and carried an average of 57,541 passengers a day in the 2017 financial year. The 1372mm-gauge line is electrified at 600V dc and consumed 2.16 million kWh of electricity in 2018.

32 BUSINESS DAY Financial Inclusion www.businessday.ng

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& INNOVATION

Financial inclusion remains main investment sector in Africa - Partech …as Nigerian Tech start-ups attracted $306mln in 2018 Stories by Endurance Okafor

I

nvestors’ attractiveness for the financial inclusion sector is evident in the 2018 annual report on the financing of African startups published by Partech, an investment platform for tech and digital companies.

The report revealed that out of the total $1.163 billion in Venture capital (VC) funding raised by African tech start-ups in 2018, $582 million from over 64 transactions was channelled to the financial inclusion sector.

This represents half of the total fund raised in the year.

“Financial inclusion remains the main investment sector in the continent, attracting 50 percent of the total funding,” Partech said.

The breakdown of the sub-sectors under financial inclusion that got the fund include; Fintech, Off-Grid Tech, and InsurTech.

Analysis of the figures revealed that the Fintech

start-up got the highest share of funds with year-on-year (YoY) growth of 218 percent, from $119.18 million in 2017 to $379 million in 2018.

Fintech therefore accounted for 33 percent of

total funding from across 42 deals.

This was followed by OffGrid Tech, which attracted $194 million or 17 percent of the sector funding across 17 deals. It also reported a

growth by 62 percent, from $120 million funding in 2017 to $194million the year after.

InsurTech which attracted $8.9 million funding in 2018 reported a 36 percent decline in investment from the $13.91million it had reported the previous year.

This was despite attracting 0.8 percent of total funding across 5 deals in 2018.

According to Partech, the Business-to-Business (B2B) & Tech Adoption continues its phenomenal growth to account for 30.4 percent at $ 353 Million (+397% YoY), across 55 transactions.

“This spectacular trend, again last year, goes mainly to Enterprise Software startup,” the report said.

Out of this, enterprise attracted $333 million (+455% YoY), 29% of funding in 44 deals (+91% YoY) while connectivity & hardware and marketing Tech both attract-

ed $11.6 million and S$ 8.4 million in 2018, respectively.

A further analysis of the VC funding raised by African tech start-ups in 2018 revealed it was up 108 percent compared to the $560million in corresponding period of 2017. The yearly funding amount is accelerating exponentially, from a year-on-year growth rate of 33 percent in 2016, 53 percent in 2017 to 2018 figures which represents a 4.2 times growth multiple in the last 36 months.

“It’s quite simply astonishing. When we started our journey to create the Partech Africa Fund in 2015, we had anticipated the $1 billion mark to be broken by 2020.

We are now already 2 years ahead of our projections”, Cyril Collon, a general partner at Partech said.

The tech investments firm tracked a total of 164 rounds raised by 146 start-

ups compared to 128 rounds from 124 start-ups last year, a 28 percent growth yearon-year.

According to Partech, a numbers of Private Equity investors (TPG, Helios, Goldman Sachs, Carlyle, etc.) as well as major corporate players (Naspers, Paypal, Pernod Ricard, etc.) are now joining “the game earlier, investing early & growth stage tickets in African tech start-ups.”

On the country comparison that got funding in the review year, the data from the report revealed that Kenya took the lead in 2018, attracting $348 million (+136% YoY) in funding over 44 deals (+76% YoY).

Nigeria attracted the second-highest Tech startups funding of $306 million (+167% YoY), across over 26 deals (+53% YoY), followed by South Africa, which slowed down compared to Kenya and Nigeria, with $250 million (+49% YoY) in funding over 37 deals (-12% YoY).

Meanwhile, Nigeria with the highest population in Africa has one of the region’s highest financial exclusion rate at 36.8 percent at the end of 2018.

The Central Bank of Nigeria (CBN), however has a target to ensure only 20 percent of the country’s adult population is financially excluded.

To that effect, the apex bank plans to give license to Banking agents, Mobile Money Operators (MMOs), Retail chains (Supermarkets), Telecommunications companies (Telcos) to enable them render payment service to especially rural dwellers where access to financial services are mostly difficult

Fidelity Bank encourages saving as it splashes customers with N13m

I

n a bid to support the Central Banking of Nigeria (CBN) in achieving its 80 percent financial inclusion target, Fidelity bank encouraged its customers with N13million.

This was done through the commercial bank’s Get Alerts in Millions (GAIM) Season Three raffle draw.

The fifth draw which took place recently in Lagos is a promotion designed to enrich customers and encourage a savings culture, the bank said.

Represented by Chinwe Iloghalu, Regional Bank

Head, Nnamdi Okonkwo, the Managing Director, said the reason for the initiative was to drive financial inclusion, through which the bank could reach out to unbanked Nigerians.

Checks by BusinessDay revealed that 11 customers of Fidelity won one million naira each, while one customer won the star prize of two million naira.

According to the bank MD, the promo was designed to promote savings culture and to reward customers’ loyalty. He added that it was one of the ways

to “encourage the flow of money into the banking sector by getting people to bring their money into the bank and also appreciate the bank’s customers.”

Meanwhile, in 2018, the central bank gave a set stateby-state target for the 21 commercial banks and 942 Micro finance banks in the country to ensure that every Nigerian adult has access to financial services.

This was disclosed by Elizabeth Agu, the CBN Branch Controller, Federal Capital Territory, at the inauguration of the Financial In-

clusion State Steering Committee (FISSCO), who said the target for banks was set because the CBN planned to achieve 80 per cent financial inclusion by 2020.

Fi na n c i a l i n c l u s i o n means that individuals and businesses have access to useful and affordable financial products and services that meet their needs: transactions, payments, savings, credit and insurance- delivered in a responsible and sustainable way, according to the World Bank.

“Being able to have access to a transaction account

is a first step toward broader financial inclusion since a transaction account allows people to store money, and send and receive payments,” the Bank explains.

Fidelity bank MD, Okonkwo said the bank’s initiative was therefore in line with the CBN’s directives for financial inclusion.

He said that the bank would continue to attract more customers through various digital transformation channels, and called on customers to continue to save with the bank for their future endeavours.

“Savings will transform your life and people must learn to keep something for the rainy day,” Okonkwo said.

Also commenting, Janet Nnabuko, the Promo Manager, said the promo was for both old and new customers and consisted of monthly and bi-monthly draws.

“To be eligible to participate in the monthly draws, you should have an existing savings account and top it up with N10,000 every month and for the bi-monthly draws, you have to maintain a minimum of N50,000 every month to participate,” she explained.

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PRIVATEEQUITY & FUNDRAISING M&A deals in Nigeria flat at $2.7bn in 2018 yet investors show optimism ...See passage of consumer protection bill boosting M&A activities MICHAEL ANI & BUNMI BAILEY

N

igeria, Africa’s most populous country is not a market without its challenges, but investors continue to see it as an attractive destination for dealmaking thanks to its increasing population growth.

A total of $2.7 billion deals in Mergers& Acquisition (M&A) were recorded in 2018 same value that was recorded 12 months earlier yet investors are showing bullish sentiments of an increase over the next two years through 2020 if the Federal Competition and Consumer Protection Bill 2017 is passed into law, according to key findings from a survey by global consulting and auditing firm KPMG. The survey captured responses of 50 senior business executives who have completed

an acquisition or investment in Nigeria within the past four years, and currently, have operations in Nigeria.

Key findings from the survey showed that 80 per cent of the respondents expect deal activity to increase over the next year and more than three-quarters of respondents said they were more likely to invest in Nigeria as a result of their previous M&A experience in the country.

Furthermore, about 48 per cent of the surveyed sample said they are now significantly more likely to invest in Nigeria.

“Nigeria is turning out to be an investment haven,” says an EMEA-based director for a TMT corporation. “Investors see long-term opportunities in the country and these investors can start from the grassroots level moving vertically and growing fast.”

The year 2019 so far, appears to be a favourable year so far

for M&A deals in Africa’s most populous nation going by the green light into major deals that was recorded in the early start of the year, according to data compiled by BusinessDay. One of such was the $200million merger deal between Tier 1 lender, Access Bank and the Carlyle backed Diamond bank in January this year. Another was in the consumer goods space when Coca-Cola snapped a 100 per cent stake in fruit juice giants, Chivita Limited in a deal worth about $500 million, based on industry estimate.

In terms of sectors where investors see as being more attracting for investment, the consumer sector has continued dominating Nigerian M&A destination with more than 76 per cent of the respondents say the sector will be the country’s most attractive industry for M&A over the next two years.

Closely behind the consumer goods industry, the financial services sector has been tipped also to be a big driver of Nigerian M&A as 40 per cent chose the sector as their investment destination.

However, while there are reasons for optimism in the Nigerian M&A markets, challenges still await prospective bidders, according to responses from the investors surveyed.

One major concern identified by investors is the regulatory and legal obstacle in doing business in Nigeria together with the challenging compliance requirements.

To tackle these bottlenecks, 52 per cent of the investors said that doing business in Nigeria would become more attractive once the Federal Competition and Consumer Protection Bill 2017 is passed into law The Bill applies to all businesses and commercial ac-

tivities in Nigeria, with a series of fines to be levied for noncompliance, including a general penalty for offences of up to 10 per cent of the company’s annual turnover in the preceding business year.

Above all, the Bill aims to overhaul Nigeria’s complex competition laws, with the Federal Competition Commission to be handed supremacy over other government agencies.

Increased competition and the prevention of monopolistic behaviour should result in a pay-off for M&A activity.

“The Bill will maintain the competitive nature of the Nigerian market and attract foreign investment,” the report says.

“There is also the consumer protection [element of the] bill that could lead to a string of M&A transactions in the consumer sector as quality businesses will be promoted within the country now.”

PE-backed Themis, Kingline plan $600m natural gas plant in MICHAEL ANI

P

rivate Equity-backed Themis, an Africa-focussed power company that is based in Morocco, has partnered with Kingline Development Nigeria Limited (Kingline) to develop a 550MW natural gas-fired power plant in Ondo State, Nigeria.

At a project cost of approximately $600 million, the plant is set to become one of the world’s lowest cost natural gas-fired power plants, both firms said in a statement.

The project involves building a 550-MW combined cycle powerhouse, a substation, a desalination facility and related infrastructure at the Ondo State International

Industrial Park at Omotoso, 170 km northeast of Lagos.

The plant will source the required gas from a nearby gas field in the Ondo onshore/offshore basin and is expected to be commissioned by 2020 but operational in the second quarter of 2022.

“Kingline offers compelling advantages for the Federal Government of Nigeria given its extremely competitive pricing, availability of peripheral gas and transmission infrastructure, timing to the operation, and technical flexibility,” Tas Anvaripour, CEO of Neo Themis, said.

Nigeria currently has 4,000 MW of operational capacity, compared to 13,400 MW of installed capacity and 15,000 MW of demand.

State-run Nigerian Bulk Electricity Trading Company (NBET) will buy electricity from the Ondo plant for a period of 20 years on a take-orpay basis, officials said.

On completion, the Project is expected to provide approximately 4.5TWh of affordable energy via a highly competitive, cost-reflective tariff structure, which is expected to have a positive impact on the cost of electricity in Nigeria, delivering long-term value and affordability for energy consumers.

“Despite increased competition, the number of projects reaching closing is still largely below the needs of the continent, and this new venture is well positioned to fill the gap,” Anvaripour said.

Neo Themis was set up in 2018 under a partnership between Themis and Denham Capital, a global energy-focused private equity firm, acting through its International Power Fund, to launch the Africa Power Investment Platform.

The team was headquartered in Morocco through the incorporation of a new company, Neo Themis.

Denham Capital had then vowed to earmark $250 million for the development of energy projects in Africa.

Themis has been responsible for developing and financing some of Africa’s most significant infrastructure and power projects over the last decade, while Denham Capital is an investor and developer of natural gas-fired and renewable power gen-

eration assets across Africa.

The Themis team is actively developing circa 400 megawatts across the African continent, including the 44-megawatt Singrobo hydro project in Côte d’Ivoire, and is targeting the development of more than 1 gigawatt of gas-fired and renewable power generation projects in the medium term.

Sean Kim, CEO of Kingline, said the firm is excited to be working with Themis, who bring critical expertise and extensive power development experience, as well as proven access to financial markets. “The Project has strong technical and financial support and will deliver a powerful solution for Nigeria, cost-competitive within any international market.”

BusinessDay PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: OGAR DAVID ) Businessday’s Private Equity and Fundraising section is a weekly publication that provides in-depth analysis on private equity trends and tracks deal activity in Nigeria.

Email the PE & F team loladeakinmurele@gmail.com

Continues on page 34

34

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LegalPerspectives

With

@Businessdayng Wednesday 27 March

2019

Odunayo Oyasiji

Written by Adetola Adeleke

A consideration of the electronic commerce (provision of legal recognition) bill of 2008

F

or the most part, the Electronic Commerce (Provision of Legal Recognition) Bill of 2008 (Ecommerce Bill or Bill) is an adoption of provisions of the UNCITRAL Model on E-Commerce. However, the Bill makes provision for other items not covered by the UNCITRAL Model. For example, in respect of the formation of electronic contracts, the section 8 of the Bill seeks to provide legal recognition for seals and witnesses. Although, the provision for the recognition of witnesses to contracts seem superfluous since it can be adequately accommodated under the general provision for signatures.

Article 9 of the UNCITRAL Model on E-Commerce makes provision for the admissibility and evidential weight to be attached to data messages. This provision is conspicuously omitted in the E-commerce Bill, despite the fact that the Bill pre-dates the amendment to the Evidence Act in 2011, which makes computer generated evidence admissible in evidence. Given the peculiarity of E-commerce, the provisions of the Evidence Act, 2011 on computer generated evidence are grossly inadequate to meet the demands of E-commerce.

Under the Evidence Act, 2011, a computer generated evidence is admissibility if there is a certificate showing that: (i) the document containing the statement was produced by a computer was produced by a computer during a period over which the computer was used regularly to store or process information; (ii) during the period, information was regularly fed into the computer; (iii) during the period, the computer was operating properly and during the period of disuse, the problem was not such as to affect the accuracy of its content; and (iv) information was fed into the computer during the normal course of business.

Indeed, the nature of evidence to be relied on in Ecommerce transactions are not merely computer-generated but are internet-generated.

sion under its terms of use; but just like our Nigerian Jumia and Konga, they all have included the capacity to contract as a condition for transacting on the platform.

Necessarily, the threshold for internet generated evidence should be higher because of its tendency of manipulation. An internet-generated evidence ought to be subjected to further authentication tests, such as dates and url.

Unlike the UNCITRAL Model Law, no provisions were made on carriage of goods in the E-Commerce Bill. This omission is inexplicable given the desire to have an all-encompassing regulation on electronic commerce. It is recommended that the incidents carriage of goods be incorporated in the E-Commerce Bill.

‘

An internetgenerated evidence ought to be subjected to further authentication tests, such as dates and url

E-Commerce Models in Nigeria Jumia, Konga, Uber and Jiji are major examples of platforms in Nigeria currently operating the e-commerce model. A typical visit to any of the websites welcomes the visitor to varying advertisements of the sale of different brand of items classed under various categories which can be termed as invitation to treat or invitation to make an offer.

It is worthy of note that a typical e-commerce transaction involves four major stages; the customer search stage, the ordering stage by the customer, the online payment stage for the goods and services, and finally, the delivery stage. Some other stages such as inquiry, complaints, return of goods, etc may however come in at some point within or along the major stages of the e-commerce.

On the websites of Jumia and Konga, there is a terms and conditions column where the conditions of using the site are expressly spelt out for prospective customers. Jumia specifically attempts to situate the ingredients of contract in its terms of use in the following

wordings: “Both parties agree that browsing the website and gathering information regarding the services provided by the seller does not constitute an offer to sell, but merely an invitation to treat. The parties accept that an offer is only made once you have selected the item you intend to purchase, chosen your preferred payment, proceeded to the checkout and completed the checkout process.

Both parties agree that the acceptance of the offer is not made when the seller contacts you by phone or by email to confirm that the order has been placed online. Your offer is only accepted when we dispatch the product to you and inform you either by email or by phone of the dispatch of your ordered product.�

The above term on the Jumia website sums up the ingredients of a traditional contract as we all know it. It is arguable that the above term as to when the contracted is consummated may be an unfair term.

On the international scene, we have reviewed the website of American e-commerce giant Amazon, it has no such provi-

Conclusion Even though our existing contract laws are predicated upon the traditional paper-based contracts, it has been able to accommodate evolutions in communications and the way contracts are formed electronically. However, the urgent need for specific legislations on e-commerce has been strongly advocated in this paper. After all, e-commerce is the contemporary mode of doing business and our laws must be tailored to contemporize its needs.

The various international legal frameworks examined in this paper have provided a blue print on which e-commerce can be predicated. This therefore gives us the latitude to domesticate, albeit with reference to applicability to local needs, the various frameworks.

The potentials of e-commerce are enormous to national growth, especially in a country of over 170,000,000 people. If properly regulated, there will be certainty of the law and this will facilitate this contemporary means of transacting business. The charge of the Presidential Enabling Business Environment Committee is a step in the right direction. However, if e-commerce is not developed, it would be just another dance round the crux.

Finally, in making the laws and regulations for e-commerce, Nigeria has to take definitive steps to remove the obstacles to the facilitation of e- commerce. It is imperative that the various bills be revisited to include robust provisions to create an enabling environment for the growth of the digital market. This way, our legal system will be better equipped for the issues that will arise from the e-commerce business terrain.

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Live @ The Exchanges Market Statistics as at Tuesday 26 March 2019

Top Gainers/Losers as at Tuesday 26 March 2019 LOSERS

GAINERS Company

Closing

Change

N68

N64.5

-3.5

DEALS (Numbers)

NB

N69.5

N67

-2.5

0.95

ETI

N13.5

N13.05

-0.45

VOLUME (Numbers)

N39

0.5

PZ

N10.5

N10.2

-0.3

N11.45

0.35

UBN

N7.05

N6.9

-0.15

Closing

Change

N167

N170

3

DANGCEM

N188.5

N190

1.5

CADBURY

N9.9

N10.85

UNILEVER

N38.5

DANGFLOUR

N11.1

MOBIL

Company

ASI (Points)

Opening

Opening

PRESCO

VALUE (N billion) MARKET CAP (N Trn

31,038.86 3,457.00 143,708,411.00 1.682 11.671

Global market indicators FTSE 100 Index 7,202.74GBP +25.16+0.35% S&P 500 Index 2,819.23USD +20.87+0.75% Generic 1st ‘DM’ Future 25,703.00USD +126.00+0.49%

Deutsche Boerse AG German Stock Index DAX 11,422.61EUR +75.96+0.67% Nikkei 225 21,428.39JPY +451.28+2.15% Shanghai Stock Exchange Composite Index 2,997.10CNY -45.94-1.51%

Stock market dips marginally by 0.01% Stories by Iheanyi Nwachukwu

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ig e r i a’s equities m a r k e t declined marginally by 0.01percent on Tuesday March 26 as only eighteen (18) stocks recorded price increase as against 20 losers.

At the sound of closing

gong, the Nigerian Stock Exchange (NSE) All Share Index closed at 31,038.86points against the preceding day close of 31,042.32points while Market Capitalisation closed at N11.671 trillion as against preceding day close of N11.576 trillion. The Yearto-Date (ytd) return stood at -1.25percent.

Presco declined most from N68 to N64.5, losing

N 3 . 5 o r 5 . 1 5 p e rc e n t .

Nigerian Breweries plc followed after its share price dipped from N69.5 to N67, losing N2.5 or 3.60percent.

Mobil Oil Nigeria Plc rallied from N167 to N170, adding N3 or 1.80percent.

Dangote Cement Plc followed after its share price advanced from N188.5 to N190, up by N1.5 or 0.80percent. The volume of stocks traded decreased

by 14.83percent from 168.7 million to 143.7 million, while the total value of stocks traded decreased by 55.16percent, from N3.75billion to N1.68billion in 3,457deals.

The Financial Services sector led the activity chart with 103.28million shares exchanged for N861million; Consumer Goods followed with 18.43million shares traded for N266 million.

L-R: Ibukun Awosika (chairman, board of directors, First Bank of Nigeria Plc.); Zainab Shamsuna Ahmed, minister of finance; Dolapo Osinbajo, wife of the vice president; Oba Otudeko, chairman, First Bank Holdings Plc; Adesola Adeduntan, executive director FBN Plc; Babatunde Fashola, minister Power , Works and Housing, in a group photo at the First Bank of Nigeria Plc’s 125th anniversary lecture at the Eko Hotels & Suites, Lagos.

ACTN set to discuss Nigeria’s 2019 economic, business landscape

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he Association of Corporate Treasurers of Nigeria (ACTN) will tomorrow Thursday March 28, 2019 hold its breakfast meeting where participants will review and discuss the Nigerian economic and business outlook for 2019.

A renowned economist, Adnrew Nevin, the Chief Economist and Advisory partner of Pricewaterhouse Coopers (PWC) will be the keynote speaker at the breakfast meeting themed “2019 Economic and Business Outlook”.

The breakfast meeting holds at the Lagos Continental hotel Victoria Island by 8.30am.

It is a forum for the Corporate Treasurers of the buy side of the Nigeria economy to have an in-depth discourse on the possible impacts of the business environment within the year and ways of restoring confidence in the financial markets.

The 2019 general elections have come and gone, and it is expected that it is now time to put politics aside and let governance take the centre stage.

The re-election of President Muhammed Buhari for the second term obviously has some implications for business and the economy which the Corporate Treasurers would be considering at the forthcoming meeting.

The Association of Corporate Treasurers of Nigeria (ACTN) is an association established to foster the interests of Corporate Treasurers in the Nigerian financial markets by providing a platform for policy advocacy, discussions on issues of mutual

interest, education and standard development of the corporate treasury function.

As part of the efforts of the association towards the education and enlightenment of its members, the association regularly host breakfast meetings where issues on economic policies as well as policy directions and their impacts on the activities of the corporates are reviewed and discussed with regulators, economists and financial markets experts as lead speakers/discussants.

NBCC seeks to foster partnership with NAFDAC

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n furtherance of its commitment to securing strong partnerships whilst also addressing issues and challenges faced by its members, the President of the Nigerian-British Chamber of Commerce, Akin Olawore led a delegation from the chamber to pay a courtesy visit to the Director General of NAFDAC , Mojis ola Adeyeye at her office in Lagos.

The visit to NAFDAC follows a series of strategic engagements by the NBCC to key stakeholders within the Nigerian and British business community to form collaborations, strengthen partnerships whilst also extending the commitment and support from the Chamber.

Speaking during the visit, the President of the Nigerian-British Chamber of Commerce, Akin Olawore thanked the NAFDAC team led by its Director General, Mojisola Adeyeye for receiving the chamber at her office.

He stated that the visit would further foster the re l at i o n s h i p b e t w e e n both organizations by highlighting the continued importance of the role they play.

He used the medium to call for the continued support for NAFDAC in the fight against adulterated drugs in the Nigerian market which considering its effects, has a negative impact on competitiveness

and margins of legitimate businesses within the country.

Concluding his speech, O l aw o re p l e d g e d t h e Chamber’s support in the fight against adulteration.

Also speaking during the visit, the Director G e n e r a l o f NA F D A C , Mojisola Adeyeye stated t hat, i n e n su r i ng t h e medium and small-scale businesses thrive, the Agency has reduced the registration fees for micro businesses to encourage more registrations while also engaging in trainings for such businesses.

She also stated that, a support system has been set up on its online and offline platforms to engage more with prospective and operational businesses and ensuring for a greater understanding of NAFDAC procedures within the Nigerian Market.

Mojisola further stated that, the Agency is aware of the scourge of adulterated products w h i c h h a s i n f i l t ra t e d the Nigerian market and is currently working on strengthening regulations in the market by introducing nationwide monitoring systems to combat the problem.

She used the medium to call for the support of businesses in the affected industries to efficiently do this through its whistleblowing channels which is readily available to the public.

Wednesday 27 March 2019

BUSINESS DAY

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38 BUSINESS DAY NEWS

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CBN’s surprise rate cut raises questions over...

Continued from page 1

the likelihood of an imminent

VAT hike or fuel price deregulation, according to Khan.

“Both are pressing, much-needed reforms – but the CBN’s rate cut today appears to suggest that these reforms, which may both exert upward pressure on the price level in the short-term, may not necessarily be imminent. This would be disappointing, especially for investors hoping for stronger reform impetus post-election,” Khan said.

At a press briefing after the twoday Monetary Policy Committee (MPC) meeting, Godwin Emefiele, the CBN governor, said six members of the 11-man committee voted to reduce the benchmark rate.

“A new direction has become imperative,” Emefiele, whose tenure as the CBN governor ends in July, said.

“Given the relative stability in macroeconomic indicators, we needed to send a signal in the direction of supporting and accelerating growth.”

The move is the first rate cut since November 2015. The rate has been held at 14 percent since July 2016 to support the naira and curb inflation.

The regulator, however, retained asymmetric corridor around the MPR at +2 percent/-5 percent; Cash Reserve Requirement (CRR) at 22.5 percent, and Liquidity Ratio at 30 percent.

The move was a shock to many analysts who had expected a rate retention.

Some analysts argued that the CRR is a much more important determinant of the policy stance of the CBN and increased bank lending can

only happen if more cash is freed up in the banking sector.

“It’s a signalling move,” Bismarck Rewane, an economist and CEO of Lagos-based financial advisory firm, Financial Derivatives, said of the surprise rate cut.

“However, lending has become price elastic, so no matter where the rates are, if the appetite is not there, nothing changes,” Rewane added, implying that the rate cut may have little impact on the economy.

“The MPR rate has stopped being an anchor for a long time, so the impact on financial instruments will be muted,” Rewane said. “Equity prices may rise, however, as investors see this as a signal that monetary policy is becoming pro-cyclical, unlike in the past when it was counterproductive.”

Announcing the new policy, Emefiele said the decision was a signal that the monetary policy needed to begin to consolidate growth, even though it does not in any way indicate a commencement of a rate-cutting cycle.

Nigeria emerged from its first recession in 25 years in 2017 with 0.8 percent growth thanks to higher oil prices.

The economy soon followed that up with growth of 1.93 percent in 2018, according to state data agency, the National Bureau of Statistics (NBS).

Population growth of around 2.6 percent per annum means that GDP per capita has been negative since 2016.

The nation holds much more dollars in its external reserves today ($43 billion as at March) compared to 2016 when it fell to as low as $25 billion on the back of lower oil prices and production disruptions from

militant attacks.

Inflation has collapsed from as high as 18 percent to remain sticky at 11 percent this year, printing at 11.31 percent in February. The foreign exchange market, though with its challenges of multiple exchange rates, has also enjoyed better stability. The market rate has largely hovered around N360-363 per US dollar since late 2017 while the CBN rate mod N306/$ has not budged. The stability in the fx market owes much to the CBN’s interventions.

Analysts say the fact that Nigeria’s fixed-income market has attracted billions of dollars in the past month, thanks to an improved appetite for emerging-marketsassets,gavetheCBN the confidence it needed to ease policy.

“We will continue to do what we have done in the past, by keeping inflation and exchange rate stable,” Emefiele said Tuesday.

According to Standard Chartered’s Khan, with the CRR – a much more important determinant of the policy stance of the CBN – still unchanged, it is not clear that a modest policy rate cut on its own will do very much to boost bank lending.

“Much more detail will be required on both fiscal and monetary policy intentions in the months ahead. It is not clear how much a 50 bps MPR cut really delivers in terms of growth,” Khan added.

Emefiele said Nigeria should be able to push growth to between 2.7 and 3 percent, up from 1.9 percent last year, if monetary policy complements expansionary fiscal policies.

“It is time to press a reset button for monetary and fiscal policies and devise a new set of policies if we must grow the economy above 2 percent,” said Tilewa Adebajo, CEO of CFG Advisory.

Cracks in APC as fight for positions in 9th...

Continued from page 2

members must back only candidates endorsed by the party leadership.

APC senator-elect Lawan has been endorsed by the party for the position of president of the Ninth Senate, along with Femi Gbajabiamila as speaker of the incoming House of Representatives. President Buhari was said to have given his nod on the matter.

However, Ndume submitted that the decision was taken without consultations with APC senators-elect.

Election of principal officers in the National Assembly will be held in June this year upon issuance of a proclamation by President Buhari.

“What took place at the presidential dinner in Aso Rock on Monday night where Oshiomhole as party chairman announced Senator Ahmed Lawan and Hon Femi Gbajabiamila as president of the 9th Senate and speaker of the House of Representatives, respectively, was very shocking to me and many of my colleagues,” Ndume said on the matter.

“Oshiomhole in making the announcement or endorsement did not even allow myself or Senators Danjuma Goje (Gombe Central) and Abdullahi Adamu (Nasarawa West), widely known to be in the race for the position, to say anything. More disturbing was the fact that even Senator Ahmed Lawan endorsed for the position was not allowed to make any comment in form of acceptance speech or soliciting for supports from other interested senators,” he said.

Making reference to the 2015 ex-

MTN suit challenging legality of AGF tax...

Continued from page 1

commenced the suit in clear dis-

regard to section 2 of the Public Officers Protection Act, which provides that any action commenced against a public officer must be made within three months from the commencement of a cause of action.

The AGF argued further that the plaintiff’s failure to commence the suit within three months as stipulated by law robs the court of jurisdiction to entertain same.

But MTN argued that it commenced the suit within three months of a demand notice from the AGF. In its writ of summons, the telco giant is seeking declaratory reliefs on the following grounds: That the purported “revenue assets investigation” allegedly carried

out by the Federal Government on MTN, for the period of 2007 to 2017, and its decision conveyed through the office of the AGF by a letter dated Aug. 20, violates the provisions of section 36 of the constitution.

A declaration that the AGF acted in excess of its powers, by purporting to direct through its letter of May 10, a “self-assessment exercise” which usurps the powers of the Nigerian Customs Service to demand payment of import duties on the importation of physical goods.

A declaration that the AGF acted illegally, by usurping the powers of the Federal Inland Revenue Service, to audit and demand remittance of withholding tax and value-added tax.

A declaration that the purported “self-assessment” exercise instituted

by the AGF via its letter of May 10 is unknown to the law, null and void and of no effect whatsoever.

In addition, the plaintiff wants a court order vacating the AGF’s demand letterdatedAug.20forthesumsofN242 billion and $1.2 billion from MTN NigeriaCommunicationsLtd.Besides,MTN is claiming a total sum of N3 billion in damages against the defendant, which covers general damages, exemplary damages, and legal costs.

After listening to respective submissions of counsel, Justice Chukwujekwu Aneke reserved ruling on the preliminary objection until May 7.

MTN plans to list its Nigerian unit, which has 58 million mobile-phone subscribers, once the tax issue is resolved. The listing will make it the most capitalised company on the bourse by revenue, having made sales of N1 trillion ($3 billion) last year.

perience where APC lawmakers endorsed by the party failed to emerge as presiding officers, Ndume, who traced the history of the leadership crisis in the Senate to imposition of presiding officers, expressed regret that the party was yet to learn from its past mistakes.

“Under PDP, it happened with the imposition of Evans Enwerem and Adolphus Wabara as Senate President at different times and also with Patricia Etteh as Speaker of the House of Representatives in 2007 before the party eventually got it right in the 6th and 7th National Assembly, particularly in the Senate when Senator David Mark served twice as president of the Senate through support in form of votes given to him by fellow senators and not endorsement by party chairman,” he said.

“For the sake of cohesion and stability among party members as regards aspirations for such positions, what was expected from the party leadership was to just zone the positions and allow contenders within each of the zones to sort it out either through consensus or shadow election. The 109 elected senators and 360 House of Representatives members are the constitutional kingmakers as far as emergence of presiding officers of both chambers are concerned and not national chairman of a ruling party or even the president,” he added.

He, however, declared that his loyalty to the party, and in particular President Buhari, has not been affected by the unilateral decision of Oshiomhole on Monday night.

First-time governors’ biggest challenge...

Continued from page 2

L-R: Uzoamaka Oshogwe, chief executive director, Afriland Properties plc; Emmanuel Nnorom, chairman; Funmilayo Suleiman, company secretary; Olayinka Ogunsulire, non-executive director, and Agatha Obiekwugo, nonexecutive director, at the 6th annual general meeting of the company in Lagos, yesterday. Pic by Olawale Amoo

Wednesday 27 March 2019

huge borrowing appetite.

“The problem of low revenue at the state government level has been a perennial problem and that is due to their over-reliance on monthly allocations from the Federal Government in running the states,” said Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers “With the new governors that have been elected, they would be confronted with the challenge of how they can fashion out innovative ways of generating revenues to not just meet expenditures required to run the states but to also service what can be regarded as a legacy debt from their predecessors,” he said.

Lagos State’s total debt stood at N1.04 trillion as at half year 2018, according to NBS data. This excludes the N50 billion five-year bond due 2022 the state guaranteed waste management firm, Visionscape.

With a total revenue standing at N373.5 billion as at end of September 2018, Lagos State would need twice as much as it earns as revenue to settle its huge debt, despite accounting for about 34 percent or (N283.5bn) of total IGR collected in the review period.

Similar scenario stares the two south-western states of Ogun and Oyo. Latest NBS data put the total debt owed by the states at N142.9 billion and N126 billion, respectively, far exceeding their respective revenues at N92.2 billion and N61.7 billion.

Another state whose pile of debt gives cause for worry is Imo, the Eastern Heartland. The state has a total debt of N107.5 billion waiting to be passed on to the incoming governor.

This figure is more than twice the N50.8 billion generated by the state through IGR and FAAC allocation for the nine-months to September 2018.

For the north-eastern states of Borno, Gombe and Yobe, whose citizens are bracing up to welcome a new governor, the task before the incoming governors is no less daunting. The debt profile of the states stood at N85.6 billion, N55.8 billion and N37.6 billion, respectively, while their revenue as at the review period stood at N51 billion, N35.6 billion and N41.8 billion.

In Bauchi State, while Bala Mohammed, the governor-elect, may still be basking in the euphoria of his hard-won victory, a much bigger responsibility to fix a state enmeshed in huge debts awaits him. Latest data puts the state’s debt at N126 billion as at half year 2018, an excess of N80 billion compared with the N42 billion that was generated by the state in the nine-months to September 2018.

Among the four north-eastern states, only Yobe can beat its chest that it can offset its accumulated debts.

The north-central states of Nasarawa and Kogi and the north-western state of Zamfara also face revenue shortfalls amid debt profiles that stand at N95.5 billion, N58.5 billion and N82.3 billion, respectively.

“The first conclusion to draw is that these state governments depended on one-off inflows rather than stable revenue streams from taxes and levies collected on a regular basis,” said analysts at FBN Quest.

“This also goes to tell us that a state government may identify taxable revenue within its territory but still has to create the infrastructure to collect it,” the analysts said.

Wednesay 27 March 2019

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IFEOMA OKEKE

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Finance minister says Nigeria ready to attract more capital IHEANYI NWACHUKWU & HOPE MOSES-ASHIKE

… as FG mulls taxing technology

igeria has restated its readiness to provide enough incentives and implement the policies that will attract capital into the country.

Zainab Shamsuna Ahmed, minister of finance, who represented President Muhammadu Buhari at the First Bank of Nigeria plc’s 125th anniversary lecture in Lagos on Tuesday, said when investors choose to come to Nigeria, it is because they are comfortable enough that their investment will grow and flourish, that they can bring in their money and take it out.

“We must learn from the mistakes we made in the past. We must make sure in the present reality we live in, that we accelerate fiscal purpose, that we invest and we also make sure that invest-

ment is done on a consistency basis,” Ahmed said.

Ahmed was part of a panel session, which included Daron Acemoglu, professor of Economics at MIT, USA, and author of ‘Why Nations Fail’, and Eme Essien, country managing director, International Finance Corporation (IFC). The panel discussion focused on ‘Global interdependency as catalyst for Africa’s ascendancy’, the theme of the anniversary lecture.

“The global interdependencies as catalyst for Africa’s ascendancy are both an opportunity and a threat for us in Africa. There are a lot of risks; some of them are within our control, while others are not,” Ahmed said.

“We must as a government ensure that we are able to build fiscal purpose, and also that we are providing enough policy incentive that will attract capital both

locally and internationally, and we are not worried about Foreign Direct Investment (FDI) coming, but we will prefer to have real investments coming into the country,” she said.

Ahmed said the government would do whatever it needs to do in terms of policy as “the infrastructural deficit is too large for this government or any government to tackle alone.

“So, we must partner with the private sector and allow private capital to come in and use it to develop our economy. We must do more than we are doing now in terms of enabling the business environment and improving security, both physical security and security of capital,” she said.

The finance minister further said that in Africa and Nigeria, “we have a unique opportunity that will help a good financial system that is

a huge opportunity for us in Nigeria”, adding that Federal Government wants to look at how it can tax technology, as “there are so many transactions that happen now, including in our country that we are not getting any benefit from”.

“The local banking industry has been champions in Africa. We are proud of banks such as First Bank that are representing us well across several countries.

We need to use technology and automation to enhance financial inclusivity in the country. Government on its own part needs to work with the financial system,” Ahmed said.

Also speaking, Acemoglu noted that high quality growth is only visible with inclusive institutions, adding that democracy gives people a voice, which, he noted, is vital for inclusive institutions.

CSJ seeks clarification on ‘ambiguous’ provision in agric, transport, others in 2019 budget estimates HARRISON EDEH & CYNTHIA EGBOBOH

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he Centre for Social Justice (CSJ) is seeking clarification on some ‘ambiguous’ provisions in the 2019 budget estimates with particular reference to the agricultural, transports, housing, mining as well as science and technology sectors.

Eze Onyekpere, lead director, CSJ, speaking at a press briefing in Abuja on Tuesday, said budgetary provisions of some ministries lacked details and deliverables, exposing duplication of projects.

Giving insight into some ambiguities in the budgetary provisions of some agencies of government, Eze said, “We have statutory transfer which contain a lump sum provision without details for National Assembly, Human

39 NEWS

BUSINESS DAY

NCAA, NCC fault new Consumer Protection Act 2019

L-R: Williams Uzomba, media consultant; Emeka Okafor, MD/ founder, Connect Nigeria; Ejieke Maduka Ezeadiugwu, assistant general manager, marketing and communications, RackCentre, and Joyce Akpata, DG, Nigerian American Chamber of Commerce, at the Connect Nigeria prebusiness fair press conference in Lagos.

Pic by Pius Okeosisi

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Rights Commission, Public Complaints Commission, Universal Basic Education Commission, Niger Delta Development Commission, and National Judicial Council.”

He noted emphatically that no one was permitted in a constitutional democracy to spend public funds in a way and manner not known to the citizens who were the ultimate sovereigns.

The lead director stressed that budget preparation templates for MDAs should be designed and take into consideration the special and strategic needs and core mandate of each agencies of government, adding that ongoing projects should include the amount budgeted in the previous year and what had been released up till the budget preparation date.

Speaking further, he noted that the agriculture sector allocated huge sums from unexplained value chain as well as many research institutes and centres with weak extension services, which according to him, do not benefit or take research finding to farmers.

He stated further that institutes get repeated sum year after year, which he expressed concern had not improved the challenges faced by a Nigerian farmer.

The National Assembly should insist on the Executive providing details of the humongous votes for agriculture value chains, he said further.

He further noted that the transportation sector should reorganise the railway development to ensure that it is no longer a federal monopoly which would en-

able it to bring in private sector investment to enable the railways run on a cost recovery and improved profit basis.

Raising further concern on NigerDelta budget, he pointed out that the allocation and investment in the region should be streamlined to address holistic needs of the people.

“NDDC has a vote of N95.188 billion; Ministry of Niger Delta gets N41.60 billion while the Amnesty programme has a vote of N65 billion which sum up to N201.789 billion. The Niger delta master plan should be the basis of budgeting instead of the current uncoordinated approach,” he said.

“The government should remove subsidy and under recovery in the petroleum sector and save not less than N1 trillion annually”.

igerian Civil Aviation Authority (NCAA) and the Nigerian Communications Commission (NCC) have faulted the new Federal Competition and Consumers Protection Act (FCCPA) 2019, describing it as excessively dominant on regulatory bodies.

While they were unanimous on the need to protect Nigerian consumers, they frowned at the Act’s creation of a “super-regulator” and “extra-territorial applications” of its provisions to industries with specific regulations.

Meeting at the Stark Illuminate 1.0 forum in Lagos Tuesday, the parastatals thanked the organiser, Starklegal Law firm, for bringing the Act to their notice, but called for a review to avert major crises in industries and closure of businesses in Nigeria.

The FCCPA establishes a Consumer Protection Tribunal to hear cases, and the Federal Competition and Consumer Protection Commission (FCCPC) to promote and maintain competitive markets in the Nigerian economy and ensure welfare of consumers by providing consumers with product choices at competitive prices, among other functions that are ancillary and incidental to consumer protection and competition.

Emmanuel Chukwuma, legal adviser/head of Compliance and Enforcement at the NCAA, observed that the new Act was a “legislative

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stamp” on the activities of the CPC, but portended serious danger for the aviation industry.

Chukwuma explained that the NCAA was established by the Act of Parliament in 2006, with Part 19 of Nigerian Civil Aviation Regulations 2015 providing for consumer protection.

He added that the consumer protection conflict between NCAA and the CPC dated back to 2013 in a case involving Aero Contractor’s cancelled flight, where CPC intervened and charged the airlines to pay penalties in excess of N24 million in total.

“It showed their understanding of the industry but at that pace, no airline will survive in Nigeria. The new law is a legislative stamp on the activities of CPC. The President has signed it and it our law, but the implications are going to be very huge,” Chukwuma said.

Chukwuma further said the extra-territorial application of the FCCPA, even to operations outside Nigeria, contravened Article 6 of the Chicago Convention and a Section of the BASA agreement that made the relevant law as that applicable in the territory of operation.

He said though the Act recognised other government agencies, but gave the FCCPC precedence over and above other government agencies.

“In the light of these concerns, we intend to make our points known and seek serious review of the Act. NCC has reached us to partner with them.

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SystemSpecs becomes Nigeria’s most efficient third party processor … as EFINA, others set agenda for Africa Fintech, Digital Identity OSA VICTOR OBAYAGBONA

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rovider of Remita, the integrated FinTech payment infrastructure and application, SystemSpecs, has emerged the Most Efficient Third Party Payment Processor in Nigeria.

This was disclosed at the 2019 edition of the Central Bank of Nigeria (CBN) Electronic Payment Incentive Scheme (EPIS) Efficiency Awards, in Lagos, weekend.

The award, according to the organisers, is in recognition of SystemSpecs’ “outstanding performance in achieving the highest level of service uptime in the processing of card transactions across all channels in 2018.”

Now in its fourth year, the CBN EPIS Efficiency Awards celebrates financial institutions, payment processors, fintechs, merchants and other stakeholders at the

forefront of driving electronic payment in Nigeria. The awards, regarded as Nigeria’s most qualitative digital financial recognitions, are based on objective analysis of all ePayments data collated by the Nigeria Inter-Bank Settlement System (NIBSS) over a full calendar year.

Commenting on the award, John Obaro, SystemSpecs’ managing director, said: “We are glad to again be recognised for our commitment to providing robust and reliable payment processing services to customers and stakeholders within the Nigerian FinTech and Financial ecosystem.

“Our emergence as the Most Efficient Thirty Party Processor serves as a reinforcement of our role and impact in driving efficient payments across various sectors of the economy. It also strengthens our resolve to ensure the consistent satisfaction of our customers, ir-

respective of who, when, how or where they choose to use our services.”

At the 2018 edition of the Awards, SystemSpecs was recognised as the Financial Technology Partner of the Year. Meanwhile, SystemSpecs and Enhancing Financial Innovation and Access (EFINA) and other fintech firms have met at the 52nd Session of the Economic Commission for Africa (ECA) in Palmeraie Room, Palmeraie Golf Palace, Marrakech, Morocco, to set agenda for Africa’s financial inclusion through fintech and digital identity.

SystemSpecs’ head of strategy, Seun Adesanya, who featured at the event, said the meeting resolved that Africa must adopt its own homegrown technology across Africa for economic growth and development.

According to Adesanya, the meeting also recommended partnership among stakeholders in the digital

identity and fintech sectors to optimise the emerging opportunities while also canvassing for the facilitation of funding facilities for more technology development.

“The two mutually reinforcing development frameworks that guide development efforts in Africa are the 2030 Agenda for Sustainable Development and Agenda 2063. In both agendas, the central role of technology and finance is emphasised as a means of implementation.

“In the 2030 Agenda, financial inclusion is not one of the 17 Sustainable Development Goals (SDGs) and is not included in the targets.

While, recognising the importance of financial inclusion as an essential engine for growth with equity, African governments and their development partners are formulating strategies and policies aimed at creating an inclusive financial sector,” he pointed out.

L-R: Adekunle Yusuf, head, mobile financial services; Abidemi Asunmo, group head, transaction banking both of Sterling Bank plc; Aishah Ahmad, deputy governor, Central Bank of Nigeria, and Adebisi Shonubi, MD, Nigeria Inter-Bank Settlement System (NIBSS), at the 2019 Electronic Payment Incentive Scheme (EPIS) Efficiency Awards, where Sterling Bank bagged Innovative Bank of the year award in Lagos.

FG needs $5bn annually for water supply, sanitation - Adamu IDRIS UMAR MOMOH, Benin

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he Federal Government says it needs about $5 billion annually to meet water supply/sanitation component of Sustainable Development Goals (SDGs).

Suleiman Hussein Adamu, minister for water resources, disclosed this at the 3rd Founder’s Day Ceremony of Edo University Iyamho, Edo State, with the theme, “Water Sanitation and Hygiene for Sustainable Development,” said the current level of investment was less than half of a billion dollar.

Adamu said Nigeria was unable to attain the Millennium Development Goals (MDGs) targets for access to

water supply and sanitation due to poor investments, low capacity and other challenges in the sub-sector.

“The national access to potable water and adequate sanitation, as at 2015, was 69 percent and 29 percent, respectively. However, national access to pipe-borne water supply is only at 7 percent,” he said.

Adamu, represented by Ahmed Saliu, managing director, Benin-Owena River Basin Development Authority, said as of 2015, more than 2 billion people globally were at the risk of reduced access to fresh water, about 2.4 billion people also lacked access to adequate sanitation while almost a billion people practiced

open defecation.

The minister said the Buhari-led government inherited 116 abandoned projects in 2015, out of which 41 were water supply projects while 11 had been commissioned.

He said the Federal Government in 2016 undertook a technical audit and prioritised all the uncompleted and abandoned projects, saying the ministry was deploying most of its resources towards completing and commissioning all the high and medium priority projects from 2016-2020.

Earlier, Governor Godwin Obaseki said plans had been put in place to partner world-class universities in its quest to be one of the best institutions in the world.

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WAEC invests in learning Stakeholders to set infrastructure to improve agenda for digital access to education transformation, cybersecurity in Nigeria KELECHI EWUZIE FRANK ELEANYA

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s digital transformation and cybersecurity become a primary preoccupation of many businesses and governments, stakeholders in Nigeria are coming together on Thursday, March 28, 2019, to set a new trajectory that will help organisations navigate new trends and protect their enterprises while in the cyber space.

The CIO Breakfast Meeting being organised by management consulting firm, Phillips Consulting, is a cross-industry event that brings together digital and business leaders seeking to identify and exploit opportunities to drive organisational performance.

In a statement to BusinessDay, the firm says a central focus for participants will be on emerging trends and opportunities at the intersection of digital transformation and cybersecurity.

Jason Ikegwu, associate partner in the Digital Technology & Consulting practice at Phillips Consulting, says staying ahead of the trend has become important as organisations are reinventing themselves through digital transformation driven by robotics, artificial intelligence, data analytics, wireless technology, internet of things (IoT) and cloud computing.

The transformation provides the platform through which organisations drive performance and pursue completely novel ways of solving traditional challenges.

“This pace of change has been hugely significant with organisations having to dramatically adapt their digital capabilities to keep up,” Ikegwu said.

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est African Examination Council (WAEC) says its intervention in learning infrastructure for 21 selected public schools across Nigeria is part of effort towards improving access to education.

Olu Adenipekun, head of National Office, WAEC Nigeria, said the donation of 1,050 branded student chairs and tables to the schools was in accordance with its corporate social responsibility (CSR) project.

Adenipekun, while speaking at the launch of the CSR project in WAEC headquarters in Lagos, said the selected schools were among the WAEC marking centres across Nigeria.

According to Adenipekun, “These schools serve as venues for the Coordination of Examiners and Marking of Candidates’ Script for the West African Senior School Certificate Examination (WASSCE) for school and private candidates in Nigeria.”

He said the schools were selected from 10 states of the Federation in the first phase of the project, adding that they were located in Sokoto, Oyo, Abia, Kwara, Bayelsa, Plateau, Edo, Kogi, Nasarawa, and Delta.

“Four of the schools are located in Oyo State and three each are in Delta State, Kwara State and Edo State.

Abia and Sokoto each have two centres while the remaining states each have a centre targeted,” he said.

Each school will receive 50 pieces of the branded student chairs, adding that aside these branded student chairs and tables going to the 21 schools, five sets of the WAEC branded chairs and tables will also go to the teachers in the selected schools, he said.

African ICT Foundation targets tech policy, infrastructure in digital development plan JUMOKE AKIYODE-LAWANSON

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n its bid to boost the development of digital inclusion in Africa, the African ICT Foundation (AFICTF) has unveiled a two-year plan for the continent, which targets policy and infrastructure issues surrounding Internet of Things (IoTs), Artificial Intelligence and Big Data.

The development plan was unveiled at the inauguration of the new Board of Trustees (BOT) chaired by Tony Ojobo, former director of public Affairs of the Nigerian Communications Commission (NCC).

The non-governmental organisation established in 2009 decided to draw up a plan to urgently address criti-

cal issues that bothers on Africa’s digital inclusion.

According to Ojobo, in the next two years, the Foundation will consciously be making efforts towards holistic involvement in research and educational activities that involve setting the policy agenda on technological innovations, information and communication technology, trade and globalisation and clean energy.

The Foundation will be getting Africa’s private sector support on critical industry issues that affect the growth of Africa’s economy while also working with policymakers to develop and promote policies and ideas, capitalising on the tremendous economic and social benefits ICT provides for Africans, he said.

AFICTF is encouraging

adherence to high standard of research, empowerment and integrity with an internal code of ethics grounded in analytical rigor, policy pragmatism, and independence from external direction or bias, he said.

“A key aspect of the development of digital inclusion in Africa will be to promote skills sustainable for the development of African nationhood, reduce the level of illiteracy and poverty in the society as well as engage African youths on IT exchange programs,” he said.

Ojobo, who doubles as the chairman of the BOT and president of the Foundation in his inaugural speech, also declared a state of emergency on internet penetration, stating that Africa needed a declaration of emergency in

BUSINESS DAY

Wednesday 27 March 2019

41

CITYFile Ekiti to construct ring roads to ease congestion

AKINREMI FEYISIPO kiti government is soon to commence the construction of ring roads to ease traffic congestion and complement the planned rail project of the Federal Government The road project which is to be carried out in three phases would cover areas such as lworoko, Aare, Afao, Ago Aduloju, lkere and lgbara Odo-Ekiti. Other areas to be covered include llawe, lgede, Esure, Eyio, Ifaki-Ekiti.

The special adviser on works, infrastructure and transportation to the governor of Ekiti State, Sunday Adunmo made this known in Ado Ekiti, just as he attributed the poor conditions of roads in the state to bad maintenance culture.

According to Adunmo, construction equipment purchased by the state government which had not been put into use in the last five years would be deployed to rehabilitate roads across the state.

“We have a palliative measure for potholes across the state. The current governor bought some construction equipment such as asphalt plant, pavers, rollers, amongst others during his first term in office, but unfortunately, none of these equipment was put to use by the immediate past administration. We shall put these plants to use.”

The government, he said, would provide basic amenities at farm settlements and villages across the state, as a measure to check rural-urban migration and boost agriculture in the rural areas.

Adunmo also assured that work would soon commence on the Federal Government’s rail project as well as the construction of lkere-Akure dual carriage way.

“We should know that Ekiti belongs to us all. So, we should learn to continue from where any administration stops. The cost of roofing the abandoned civic centre project has now become double of what would have been used if the successive administration continued and completed the project. All these are detrimental to the progress of our state.”

He assured that construction work on New Iyin-Ekiti Road would kick-start an infrastructural revolution that would become a reference point in Ekiti.

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R-L: General Sec., Lumumba Okugbawa; Francis Johnson, President; Frank Osanubi, Deputy President, and Victor Ononopkono, National Treasurer, during the national executive council meeting of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Lagos.

LASUTH, NGOs to offer free surgery for sufferers of heart disease JOSHUA BASSEY ufferers of heart diseases stand the chance of accessing medical treatment, as the Lagos State University Teaching Hospital (LASUTH) is collaborating with the Kanu Heart Foundation and EMERGENCY, a nongovernmental organisation (NGO) to provide free surgery for cardiology patients in Lagos.

Chief Medical Director (CMD) of LASUTH, Adetokunbo Fabamwo, made this known while receiving the representatives of the Kanu Foundation and management EMERGENCY.

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Fabamwo, who commended the efforts of the team, called for a better working relationship among all the parties involved and said the collaboration would yield transfer of skills to doctors at LASUTH. Nwankwo Kanu, founder of the foundation, said that the vision was to attract expertise in cardiac-related surgeries to Nigeria.

According to him, this is to save patients from the rigour of traveling abroad to receive cardiology treatment.

“This collaboration will yield positive results so that our patients can be taken care of locally,” Kanu said.

Luca Rolla, the regional programme

Defence corps impounds trucks with 66, 000 litres of refined product

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do State command of the Nigeria Security and Civil Defence Corps (NSCDC) said it apprehended two trucks loaded with 66,000 0f litres suspected to be illegal refined petroleum products from January till date.

Makinde Ayinla, state commander of the corps, said in Benin on Monday, that the two trucks, laden with 33,000 litres each, were intercepted by men of the antivandal unit of the command.

He also said that the crisis management department of the command, within the period under review, monitored the movement and usage of explosives, indiscriminate waste disposal as well as dilapidated structures.

Ayinla said the department also assisted in the fire-fighting operations and rescued lives and property, during fire

outbreaks within the state and prevented hoodlums from taking advantage of the situation.

He further disclosed that the anti-fraud unit within the period under review also recovered N1.5 million from fraudsters and fraud related cases. In addition, the counter-terrorist unit of the command arrested 30 suspects for various crimes within the period.

The commander explained that the crimes for which the suspects were arrested ranged from attempted kidnapping to robbery, rape and instigation of civil unrest in communities in within the state.

Ayinla also said that six cars were recovered from hoodlums, while the peace and conflict resolution unit of the command resolved 15 cases during the period.

coordinator of EMERGENCY, said that his team was excited to follow up on cases that had been handled by the Kanu Heart Foundation.

Rolla said the organisation’s commitment was to continue to provide humanitarian services to the indigent patients at the hospital (LASUTH).

The programme coordinator said, “We will be glad to collaborate with you in the training of indigenous doctors from LASUTH, both here in Nigeria and outside the country.”

Emergency is an international healthbased NGO that provides free medical and surgical treatment to victims of war, landmines and poverty.

Agency raids motel, arrests suspects in Abuja

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peratives of the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) have raided Davis Hotel, Lugbe, Abuja, and arrested some suspects.

Josiah Emerole, NAPTIP’s director of investigation, said that the operatives rescued three girls and arrested 20 suspects over alleged forced prostitution.

According to him, the hotel, located in Tundun Wada area of Lugbe, was identified as a notorious spot where underage girls were kept for prostitution.

Some of the girls, however, pleaded innocence, while explaining that they were arrested while running errands.

“Part of our job is to rescue under aged persons who are being exploited and arrest suspects.

“Davis Hotel has been in our radar

for sometime and we have rescued some underage girls from the facility in the past. NAPTIP Act frowns at facilities where young girls are harboured and exploited,” Emerole said.

He explained that all the persons arrested in the raid would be profiled, during which the victims will be separated from the suspects.

“When we profiled them, we will keep those we identify as victims in our facility for rehabilitation, while the suspects would be handed over to our legal department for prosecution,” he said.

He advised parents and guardians to take interest in movement and activities of their children and wards and protect them from being exploited in any way.

The raid which lasted till and 12 midnight on Sunday was jointly executed by officials of NAPTIP and men of the Nigeria Police Force. NAN

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In Association with

In refunding 100% of CRR to banks, CBN targets credit expansion to real sector Stories by Hope Moses-Ashike

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t its July 2018 Monetary Policy Committee (MPC) meeting, the Central Bank of Nigeria pledged to refund Cash Reserve Ratio (CRR) to banks under certain conditions.

Part of such conditions is banks’ lending to Small and Medium Enterprises (SMEs).

The move is to spur bank lending to high-impact sectors of the economy.

“Banks that bring proposals for funding of new projects or expansion of existing ones in agriculture and manufacturing sectors will, accordingly, qualify for CRR refund of up to 100 percent”, Godwin Emefiele, governor of the CBN said at a BusinessDay conference in Lagos last week.

Total value of credit allocated by the banks to the private sector stood at N15.13 trillion as at the fourth quarter (Q4) of 2018, according to the National Bureau of Statistics (NBS).

The NBS report showed that the oil and gas and manufacturing sectors got credit allocation of N3.55 trillion and N2.23 trillion to record the highest credit allocation as at the period under review.

“It was our expectation that banks would use this opportunity to expand credit to the manufacturing sector”, Emefiele said.

Magnus Nnoka, national president, Risk Management Association of Nigeria (RIMAN) said lending by the banking sector should be seen from two perspectives.

He said most times people tend to see the lending activi-

ties of banks from what goes to the private sector only, and recently this has led to a perception of banks not doing enough lending. However, “when we consider the huge funding the public sector has raised in the last few years, the narration should change.

The argument rather, in some circles, is the negative impact of huge public sector bor-

rowing in terms of crowding out the private sector. Having said this, we should appreciate that banks are set up to facilitate financial intermediation, hence they need to lend in order to make returns to investors”, Nnoka said.

“I think the challenge most banks face in lending is signing on quality credit or borrower’s ability in meeting

65,000 bankers, others benefit from FITC training in 38 years …Newman for Thomas Gilbert Award in US

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he Financial Institutions Training Centre (FITC) has provided training, consulting and research services to 65,000 bankers, other players in the financial services sector and related industries in its 38 years of operation.

Lucy Newman, FITC managing director/Chief Executive Officer, who will next month, be honoured in the United States of America (USA) with the prestigious Thomas F. Gilbert Distinguished Professional Achievement Award, said 6,900 of the beneficiaries of the institute’s trainings are directors of banks and other financial institutions. Some of the trainings focused on corporate governance, board evaluation and other basic issues meant to bridge skills gap in the industry.

Banks’ board chairs, managing directors, non-executive

Lucy Newman

directors, executive directors, company secretaries, among others, have all benefited from the institute’s trainings. FITC training designs and delivers open, customised courses and workshops in collaboration with local and international experts in focused fields.

Newman was notified by the President of the Inter-

national Society for Performance Improvement (ISPI), Scott Casad over the award holding at an ISPI Annual Awards Luncheon in the US. The recognition of Newman comes few weeks to the end of her two terms of five years each at the FITC. She was selected for the 2019 Thomas F. Gilbert Distinguished Professional Achievement Award based on strong recommendations from the ISPI Awards Entries Review Committee and unanimous decision by the ISPI Global Board.

After receiving the award, she will respond to an audience of 2,000 to 2,500 Performance Improvement Practitioners across industry clusters, from over 50 countries and six continents.

The ISPI, a non-profit membership organisation believes in “Being Better Matters.” It helps people and organisations make a dif-

ference to their co-workers, clients, communities and world.

FITC is the apex management development institution in the Nigerian financial services sector which operates as a non-profit organisation limited by guarantee. Its membership is consisted of institutions within the Nigerian Banker’s Committee.

The agency’s continental footprints show its services are being patronised by operators and regulators within the financial services sector especially, banking industry in Togo, Ghana, Liberia, Sierra Lone, Uganda, Tanzania, Cote d’ Ivoire, Mozambique, Zambia and Ethiopia.

FITC has under Newman, continued to provide premium quality training, consulting and research services to the players in the financial sector and related industries within Nigeria and across Africa.

the risk acceptance criteria for accessing loans. This is not also to rule out the challenges borrowers face in meeting certain lending conditions and of course relative cost of financing which can still be considered high particularly when you look at some economic sectors”.

“I therefore think that some of the measures to enhance lending will require improving quality of obligors”, he added.

Among issues to be addressed he said, are encouraging strong corporate governance, transparent financial reporting on the part of borrowers, as well as strengthening regulatory and judicial system for loan disputes settlement.

A culture of credit discipline, information asymmetry and self-disclosure are critical elements of any

environment that seek to enhance credit creation activities.

Emefiele stressed that in order to ensure sustainable growth, efforts must be made to address factors that constrained the growth of businesses in Nigeria.

He explained that the CBN and Presidential Enabling Business Committee worked together to improve access to credit for underserved Nigerians, through the set-up of a National Collateral Registry and the passage of the Credit Bureau Act. Under this initiative, small and medium scale business will be able to provide movable assets such as cars, equipment’s and livestock as collateral in order to access capital from financial institutions relative to previous collateral requirements, which placed an emphasis on fixed assets.

Fidelity Bank enhances customers’ living standard with N13m

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idelity Bank plc has through its savings scheme tagged Get Alert in Millions (GAIM) Season 3 Promo, enhanced the standard of living of its customers as it gave out a total of N13 million to the winners.

Additionally, the bank gave out 18 consolation prizes to 30 customers, comprising of generators, refrigerators and television sets in the fifth draw of the GAIM. The promo is part of the banks effort at encouraging savings culture and supporting the Central Bank of Nigeria’s financial inclusion strategy.

During the computerised draw conducted under the watchful eyes of the National Lottery Regulatory Commission (NLRC), and Consumer Protection Council (CPC), 12 customers won N1 million each, while a grand prize winner who emerged from

Lagos, won N2 million.

Some of the winners in N1 million category include Dauda Olaide from Ibadan branch, Emmanuel Igwe from Ile Ife branch, Juliet Ezema, CBD branch, Paul Rosemary, Lafia branch, Oronne Roberts, SouthEast, Chukwudi Obi, Obosi branch, and Chinyere Esther Chima, Computer Village, Lagos. Chiedozie Ifeanyi Luke from Lagos, was the 13th winner who won N2 million.

Nnamdi Okonkwo, managing director said promo was a way of giving back value to the customers. Represented by Chinwe Iloghalu, regional bank head, Victoria Island, he said, “we have given out N13 million today and other consolations prizes and we are set to have more draws. What we are trying to do is to build customer loyalty and encourage savings culture among Nigerians.”

Wednesday 27 March 2019

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GTBank dominates CBN e-payments awards HOPE MOSES-ASHIKE

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uaranty Trust Bank plc continued its dominance of Nigeria’s most qualitative digital financial service awards for the fourth year in a row, winning eight of the twelve honours available to banks in the 2019 edition of the Central Bank of Nigeria (CBN) Electronic Payment Incentive Scheme (EPIS) Efficiency Awards.

The foremost African financial institution, renowned for its innovative products and services, won awards for efficiency and excellent service delivery in virtually every E-payment channel.

The CBN EPIS Efficiency Awards is organised to celebrate financial institutions, merchants and other stakeholders at the forefront of driving electronic payment in Nigeria. Now in its fourth year, the awards are based on objective analysis of all e-payments data collated

by the Nigeria Inter-Bank Settlement System (NIBSS) over a full calendar year.

With eight awards, GTBank took home two more honours than the six awards the bank won the previous year and the highest number of awards presented to financial institutions, Fin-techs, merchants and other stakeholders in the Electronic Payment Incentive Scheme.

The eight awards won by GTBank include: Best Customer Experience Award: for having the highest level of overall customer satisfaction rating in the delivery of electronic payment services to customers in 2018.

Real-Time Payments Transaction Efficiency: for achieving the lowest failure rate in the processing of Instant Payments transactions in 2018.

Cashless Driver, USSD Channel Champion: for achieving the highest number of Instant Payments transactions via the USSD channel in 2018.

Cashless Driver, Point of Sale (POS) Transactions: for achieving the highest trans-

Segun Agbaje, managing director/chief executive officer, Guaranty Trust Bank plc

action count on Point of Sale (POS) Terminals in 2018.

Cashless Driver, Card Usage on Point of Sales (POS) Terminals: for authorising the highest card transaction count on the Point of Sale (POS) Central Termi-

nal Management System in 2018.

Direct Debit Driver Award: for processing the highest volume of successful debit mandates across all Payment Service Provider platforms in 2018.

Stanbic IBTC Bank reiterates support for a savings culture

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he desire by Nigerians to get better returns on their savings received a boost with the promotion

by Stanbic IBTC Bank of its Max Yield Savings Account (MYSA). The bank, a member of Stanbic IBTC Holdings PLC, said MYSA is a high interest paying account that pays interest at fixed deposit rate (currently up to 6.2% per annum) on savings balances of N100,000 and above.

This increases the interest returns enjoyed on the account in excess of the regular savings account rate.

The product is one of the bank’s bouquet of products aimed at providing medium savers who may not have the large amount required to open fixed deposit accounts the benefit of both fixed and savings accounts in one account.

The Stanbic MYSA ac-

count is well suited for people who desire to save towards a target purchase or investment, like property purchase, school fees payment, vehicle purchase, vacation, annual rent, etc. The high interest yield helps them achieve their target savings faster while also allowing easy access to the fund through the bank’s multiple transaction channels.

Nkolika Okoli, head, personal banking, Stanbic IBTC Bank, said the product was introduced to help customers achieve their savings and investment objectives. According to her, in line with the retail banking drive of the Stanbic IBTC Group and the financial inclusion policy of the Central Bank of Nigeria, the bank will continuously explore ways to develop financial solutions that are relevant to the financial and economic aspirations of Nigerians.

“Max Yield was developed to ensure customers get better returns on their savings, which we believe will help them achieve their savings and investment objectives in a disciplined and profitable way. Although one of the set objectives of Max Yield is maximizing returns on savings/investments, funds invested or saved in this account are left readily available and accessible to the account holders,” Okoli said. “With the rich experi-

ence and expertise the bank has as a member of the Stanbic IBTC Group, we are determined to churn out innovative products and services that are not only relevant to the economic aspirations of Nigerians but also that will help them achieve those aspirations much faster,” she added.

Max Yield is an investment account that enables customers to save in a regular and disciplined way for future need or for specific purposes and projects. The product is targeted at individuals across all segments, including students, artisans, salary account holders and self-employed individuals, among others. Some key features of the product are third party withdrawal using cheques, internet and mobile banking access, free withdrawal access, among other benefits.

justments, registration for the examination initially planned to close on Monday March 18, 2019 has been extended till Monday April 1, 2019.

The postponement was occasioned by the shift in the dates of the General Elections which in turn necessitated the reschedul-

ing of the Unified Tertiary Matriculation Examination (UTME) by Joint Admission & Matriculation Board (JAMB). Unfortunately, the new dates fixed by JAMB clashed with the period earlier scheduled for the CIBN examination, therefore making the CBT centres unavailable for use.

CIBN changes examination dates

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he Chartered Institute of Bankers of Nigeria (CIBN) has notified participants in the April 2019 Diet of the Banking Professional and Certification Examinations about a change in date of the examination.

Consequently, the exam earlier scheduled for April 9

– 11, 2019 has been rescheduled for Wednesday April 24 - Friday April 26, 2019. The timing of the examination has also been slightly adjusted. While the morning sessions will hold from 9:00am – 12:00 noon, the afternoon sessions have been adjusted to 3:00pm- 6:00pm.

As a result of these ad-

E-Reference Operations Efficiency: for the Bank’s outstanding performance in the processing of customers references received from other Banks for account opening purposes on the industry E-reference Platform in 2018.

ID Services Driver: for achieving the highest volume in the use of the BVN, e-Passport and NIN customer verification platforms in 2018.

Commenting on the Bank’s EPIS awards, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Segun Agbaje, said; “We are proud to be recognised by the CBN EPIS Efficiency Awards for our efforts in driving excellence in electronic payments and providing customers with a superior banking experience across all digital touch points. These awards serve as extra motivation for us and we continue to find new and exciting ways to reduce our customers’ pain points and offer them benefits beyond banking.

He further stated that; “At GTBank we are passionate about building the bank of the future that connects our customers directly to all the everyday things that matter to them. That is why we are constantly leveraging the best of technology to, not only make financial services cheaper, more personal and readily accessible, but also to create amazing digital experiences in a way that adds real value to our customers’ lives.”

Guaranty Trust Bank plc is a foremost African Financial Institution with Total Assets of ₦3.287 trillion and Shareholders’ Funds of ₦575.6 billion. With banking operations across 10 African countries and the United Kingdom, GTBank is regarded by industry watchers as one of the best run financial institutions in the countries in which it operates and serves as a role model in Africa’s financial service industry due to its bias for world class corporate governance standards, excellent service delivery and innovation.

CBN commends Ecobank’s sustainability efforts

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he Central Bank of Nigeria (CBN) has recognized and awarded Ecobank Nigeria on its sustainability and Corporate Social Responsibility (CSR) initiatives.

The CBN at its 2018 annual awards for sustainability in Lagos, recognized Ecobank’s activities in four categories which include Sustainability Bank of the Year; Sustainability Bank of the Year -oil and gas; Sustainability Bank of the Year -power sector and the Women Empowerment category – the bank was first runners up in all four categories. These recognitions are an acknowledgement not only of the bank’s efforts at supporting industrial sector development but also in the development of efficient sustainability programmes for the good of the citizenry.

The CBN Sustainability Awards – a part of the Nigerian Sustainable Banking Principle, NSBP, initiated in 2012, is an award that appreciates the efforts of financial service providers who have been able to successfully integrate social and environmental considerations into their operations, spanning across their processes and strategies.

Patrick Akinwuntan,

managing director, Ecobank Nigeria, said: “it is a deliberate policy of Ecobank Nigeria to embark on sustainable projects that impact people and the environment. Last year we focused on removing plastic waste and other non-biodegradable elements from our streets, and this recorded huge success. We engaged young people to gather and bring to us at least one million plastic and glass bottles from homes, offices and drainages; these we bought from them for proper disposure by the authorities. This was done over a week period tagged the ‘Ecobank sustainability week’ during which we also organized symposia for secondary schools students to create awareness on tackling plastic wastes.

On the CSR front, in 2018 we constructed boreholes for schools across the country and also embarked on many other CSR activities.”

Further he said, Ecobank is proud of its contributions to the development of the nation’s economy through its support for the oil and gas and power sectors. “I dedicate the awards to staff and customers of the bank who worked relentlessly towards maintaining high sustainable standards that has earned us the CBN awards.

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NASS leadership: Buhari, APC leaders move to assume control Tony Ailemen, Abuja

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n a bid to avoid the crises of the 8th National Assembly and ensure full control of the National Assembly leadership, President Muhammadu Buhari and leadership of the All Progressives Congress (APC), have stepped in to ensure the emergence of consensus leadership.

This was the fulcrum of the late night meeting held at the Presidential Villa on Monday night, between the Party leaders and Senators elected on the party platform.

The party Chairman, Adams Oshiomhole, speaking with the State House Correspondents after the meeting which held behind closed doors, confirmed that the ruling party met to strategize for the emergence of a consensus leadership for the ninth Senate.

“Of course, we are aware that the opposition is expecting that the APC senators are going to fight themselves, the House of Reps are going to fight themselves and then they will take advantage and pick who they will support. They will be disappointed because our senators are seasoned senators, we have a cream of ranking senators that are in their own right capable of providing leadership of the senate. So, what we have to do

Muhammadu Buhari

is to weave all these together and arrive at a consensus of who leads and everybody follows. So that we will have this time, a more cohesive National Assembly and I think it went extremely well.”

Oshiomhole however, cautioned the lawmakers to avoid a repeat of the mistakes of the past where NASS leadership was hijacked by the main opposition Peoples Democratic Party, PDP. The party wants to avoid the

2019 Polls: Election tribunal receives four petitions in Ondo YOMI AYELESO, Akure

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he Election Petition Tribunal has revealed that it has received four petitions emanating from the 2019 National and state assembly elections in Ondo state.

The Secretary of the Tribunal, Livinus Ugwu who spoke with journalists in Akure, the Ondo state capital on Tuesday said the tribunal received petition from Donald Ojogo of the All Progressives Congress(APC) challenging the declaration of Kolade Akinjo of the Peoples Democratic Party(PDP) as the winner of the Ilaje/Ese-odo Federal Constituency in the February 23rd General elections.

Counsel to the petitioner, Isaacs Kekemeke hinged the petition on the ground that the declaration violated 2019 regulations and guidelines for the conduct of elections and asked the court to declare the election inconclusive and called for supplementary election in the constituency.

In another petition , Albert Akintoye of the APC challenged the declaration of Ikengbolu Gboluga of the PDP as member representing Okitipupa/Irele Federal Constituency on ground that he gathered the majority of the lawful votes cast in the election but was manipulated

by INEC in favour of the PDP. Counsel to the petitioner, Yinka Orokoto in his prayers sought an order setting aside the certificate of return issued by INEC to Gboluga and declare Akintoye as memberelect for the constituency.

Also in another petition, Abayomi Akinfemiwa of the PDP challenged the declaration of Mayowa Akinfolarin of the APC as member-elect for Ileoluji/Okeigbo/Odigbo Federal Constituency.

The petitioner through his counsel, Olumide Ogunja submitted that election in some of the wards such as Odigbo, Ore, oniparaga and Koseru were characterized by irregularities against the 2010 electoral law as amended.

Ogunja explained that Akinfemiwa having scored highest number of lawful votes ought to have been returned as member-elect representing the Constituency.

In the fourth petition, the Mega Party of Nigeria(MPN) is challenging the declaration of Senator Ajayi Boroffice as Senator-elect for the Ondo North Senatorial district in the National Assembly election.

Counsel to the MPN, Remi Olatubora, submitted that INEC erred by unlawfully excluded the Mega Party of Nigeria from the ballot and called for the nullification of the election and order for fresh election in the district.

“horse trading” and absence of consensus which led to the emergence of Bukola Saraki as Senate President of the eighth Senate in alliance with People’s Democratic Party (PDP)’s Senators which later produced Ike Ekweremadu as his deputy.

Already, four Senators, are said to have openly indicated interests in contesting for the position of the Senate President.

These include the incumbent

Senate Leader, Ahmed Lawan, former governor of Gombe state, Sen. Danjuma Goje, Senator Ali Ndume and former Abia state governor, Orji Uzor Kalu.

Oshiomhole however called on the lawmakers to work out a consensus approach since the APC senators are in the majority so as not to give room to the PDP members to hijack the Senate leadership.

He is also seeking the President’s direct interventions as the head of the APC political family, to avoid the repeat of 2015 power struggle that resulted in the opposition taking over strategic committees in the Senate.

The party controls 65 out of a total of 109 Senators in the National Assembly and over 230 House of Representatives members, placing the ruling party in a comfortable position to form the leadership Oshiomhole stressed that it is imperative for the party to get the leadership of the National Assembly right for there to be seamless working relationship between the legislature and the Executive arm of government.

“The system talks about the separation of powers between the executive and legislature and the two must handshake for things to happen. And when you have a president that is determined

to drive changes, fundamental changes that will affect our habits, our life style, review the economy, deal with the security situation, fight corruption as fiercely as he is trying to do, he will need a very supportive legislative arm of government” he said Also speaking on the issue, Zamfara Governor, Abdulaziz Yari, said the Party was out to the mistakes of 2015 and reviewed what happened in the Senate and House of Representatives.

“Now, we want to go as one APC family notwithstanding our brothers from the other party.

We are now talking about Nigeria first. The President requested that we all work for the betterment of Nigeria. As regards the leadership, the president requested that we work hand in hand to ensure that we come out as one family, so that what belongs to majority goes to majority and what belongs to minority goes to minority.

The same poison was echoed by Simon Lalong who was recently reelected Governor of Plateau state.

According to him, “What the president has done today, I think is the right step in the right direction. The last time we did not have the opportunity of this politics but today, Mr. President invited us.

Because, we are governors and we also dialogue with our senators.

Lagos INEC shifts presentation of certificate of return to Sanwo-Olu, others Iniobong Iwok

T

he Independent National Electoral Commission (INEC) in Lagos State has shifted the presentation of certificate of return for the Governor-elect in the state, Babajide Sanwo-Olu, and his Deputy, Babafemi Hamzat, to March 29.

Sam Olumekun the state Resident Electoral Commissioner (REC), stated this in a statement, Monday, stating the event will no more hold in the earlier announced date of March 27.

Olumekun stated that presenta-

tion of certificate of return for the forty elected lawmakers of the state House of Assembly in the March 9 election have been cancelled, while a new date will be announced later for the ceremony.

The commission further stated that the ceremony would begin by 11a.m, while guests are advised to be seated by 10:30 a.m.

“The Independent National Electoral Commission Lagos State has shifted the date of presentation of Certificate of Return to the Governor - elect and his Deputy from Wednesday 27th March 2019 to Friday March 29th 2019.

“The event will take place at the

INEC Lagos office, 6 BIRELL, Avenue Sabo Yaba at 11 a. m., while a new date will be announced later for the presentation of Certificate of Return to the forty elected members of Lagos State House of Assembly,” the statement read in part.

INEC announced Sanwo-Olu candidate of the ruling All Progressives Congress (APC) as the winner of the gubernatorial election after polling 739,445 votes to defeat his closest rival, Jimi Agbaje, candidate of the People’s Democratic Party (PDP), who polled 206,141 votes.

About twenty other candidates participated in the gubernatorial election.

APM’s Akinlade wants repeat of Osun ruling in Ogun, hires Adeleke’s lead counsel RAZAQ AYINLA, Abeokuta

I

n the quest for a repetition of the ruling which declared Ademola Adeleke as duly elected governor of Osun State by the Election Petitions Tribunal, Adekunle Akinlade, governorship candidate of the Allied People’s Movement (APM) has engaged Onyechi Ikpeazu (SAN) to lead 15 other lawyers to challenge the victory of Dapo Abiodun, Ogun State governor-elect and the All Progressives Congress (APC) at the tribunal.

APM’s Akinlade hired Ikpeazu (SAN), three other senior advocates of

Nigeria, namely, Mamman Osuman, Sebastine T. Hon and Ahmed Raji as well as twelve other lawyers to argue his case before the tribunal, barely one week Ikpeazu and his legal team put up the arguments that metamorphosed into PDP’s Adeleke being declared winner of the September 2018 governorship poll in Osun State.

Akinlade and APM on Tuesday filed a motion for the Order of Interim, through their counsels at Governorship Election Petitions Tribunal seeking a mandate on the Independent National Electoral Commission (INEC) to grant them access to the electoral documents used for the con-

duct of March 9 election in the state.

In the petition marked EPT/06/ GOV/01/2019, the petitioners said the inspection became imperative to allow them institute a proper petition before the Tribunal, just as the petition joined the winner of the election and governorship candidate of the All Progressives Congress (APC), Dapo Abiodun and his party (APC) as second and third respondents in the application.

In the March 9 election, Abiodun polled 241,670 votes to defeat his closest contestant and candidate of APM, Adekunle Akinlade, who had 222,153 votes.

Wednesday 27 March 2019

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World Business Newspaper

Democrats issue deadline for Congress to receive Mueller’s report Move comes as Trump and Republicans urge inquiry into special counsel’s investigation DEMETRI SEVASTOPULO AND KADHIM SHUBBER

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op Democrats called on the US attorney-general to provide Congress with the full Mueller report into Russian meddling in the 2016 election, just hours after Donald Trump and his allies moved to exact reprisals against those who backed the probe.

The Democratic heads of six committees in the House of Representatives on Monday wrote to attorney-general William Barr to demand that he provide a copy of the report written by special counsel Robert Mueller by April 2. They also asked for the underlying documents that were used to compile the report on the 22-month investigation.

“Your four-page summary of the special counsel’s review is not sufficient for Congress, as a coequal branch of government, to perform [its] critical work,” said the six House Democrats.

The letter was signed by six Democrats, including Jerrold Nadler, head of the judiciary committee, Adam Schiff, head of the intelligence committee, Maxine Waters, chair of the financial services committee, and Richard Neal, head of the ways and means panel.

The demand came hours after Mitch McConnell, the Republican Senate majority leader, blocked an effort by Democrats to pass a resolution calling on the justice department to release the Mueller report.

The House this month voted 420-0 to pass the measure.

Mr McConnell refused to bring the measure to a vote in the Senate because he said the justice department should be given more time to review the Mueller report.

Earlier on Monday, Mr Trump said Mr Mueller had been “honourable” in his handling of the investigation, which found that he had not colluded with Moscow during the 2016 race. But he said that “we can never let this happen to another president again” and signalled that some who testified against him should themselves be investigated.

“Hopefully . . . people who have done such harm to our country . . . will certainly be looked at,” Mr Trump said.

Mr Trump was joined by Lindsey Graham, the Republican chairman of the Senate judiciary committee, who said his panel would look into how the Mueller inquiry was launched. The South Carolina senator called on the justice department to investigate whether the Russia investigation was mishandled at the outset.

“We will begin to unpack the other side of the story,” Mr Graham said.

The remarks from the White House and Capitol Hill were part of a broader victory lap by Washington Republicans following the conclusion of Mr Mueller’s investigation, which has buoyed the president’s allies and produced discord among Democrats over whether to continue their own probes.

William Barr, US attorney-general, said Mr Mueller determined

Michelle Obama’s memoirs on track to be most successful ever Publisher Bertelsmann has sold more than 10m copies of former first lady’s book ‘Becoming’ TOBIAS BUCK

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ichelle Obama’s autobiography Becoming is on course to become the most successful memoir in publishing history, after selling more than 10m copies to date, the former first lady’s publisher said on Tuesday.

Thomas Rabe, chief executive of German media group Bertelsmann, hailed the book as “the most notable creative success” of the past year. He added: “We believe that these memoirs could well become the most successful memoir ever.”

Penguin Random House, the publisher owned by Bertelsmann, won an intense bidding war for the rights to Barack and Michelle Obama’s autobiographies in 2017, paying out a record $65m in a twobook deal with the couple. The former president’s memoir has yet to be published.

The news came as Bertelsmann announced a 3 per cent increase in group revenues to €17.7bn for 2018, after the Gütersloh-based group made progress in shifting its business towards digital. It said revenues from digital operations now made up 49 per cent of the group total, up from 46 per cent the previous year.

Net earnings declined from €1.2bn to €1.1bn in 2017, however,

reflecting restructuring costs and a goodwill impairment charge.

Bertelsmann’s RTL television group was again the main driver of revenue growth, after sales in the division increased 2 per cent to €6.5bn.

Like other parts of the parent group, RTL is trying to reduce its reliance on traditional media formats by building up a streaming and video-on-demand service. Last year, it achieved revenues from digital activities and video-on-demand services of €985m, up from €826m in 2017.

The global television market has been shaken up in recent years by the rise of streaming services such as Netflix and Amazon Prime, and is heading for further upheaval after this week’s long-awaited announcement from Apple that it will launch a TV streaming service of its own. Mr Rabe said Apple’s launch had not come as a “big surprise” to competitors, arguing that Bertelsmann’s own model was in any case different from that of the global streaming giants.

“Our strategy is not to try to imitate the global streaming platforms but to build local streaming platforms. Our clear objective is to become number one in local streaming in the key television markets in which we operate,” he said, pointing out that RTL already had 1m subscribers for its streaming service in Germany and the Netherlands.

Donald Trump signalled that some who testified against him should be investigated © Getty

there was no collusion between Mr Trump and Russian efforts to undermine his Democratic rival Hillary Clinton, but did not reach a conclusion on whether the president obstructed justice in his efforts to stymie the investigation.

Despite the mixed verdict, Republicans insisted Mr Mueller had vindicated the president, who had repeatedly denied that his campaign had colluded with the Kremlin.

“He has been absolved, vindicated, exonerated,” said Rudy Giuliani, the former New York mayor who

served as one of the lawyers representing Mr Trump in his dealings with Mr Mueller. “We have complete vindication.”

Sarah Sanders, White House press secretary, said Democrats and the “liberal media” owed Mr Trump an apology. “The media and Democrats have called the president an agent of a foreign government . . . That is an accusation equal to treason which is punishable by death in this country.”

Mr Trump will use the vindication as part of his campaign for re-election. His 2020 campaign

team on Monday sent a memo to US television networks asking them to consider whether they should allow Democrats — including Mr Schiff and Mr Nadler — who claimed there was collusion to appear on their shows.

“At a minimum, if these guests do reappear, you should replay the prior statements and challenge them to provide the evidence which prompted them to make the wild claims in the first place,” Tim Murtaugh, director of communications for Mr Trump’s 2020 campaign, wrote in a letter to the TV networks.

Wall Street braced for ‘earnings recession’ as margins fall US companies struggle to pass on rising labour, transportation and raw materials costs ANDREW EDGECLIFFE-JOHNSON

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S profit margins are on track to suffer their first fall since 2015, as companies increasingly struggle to pass on costs of rising labour, transportation and raw materials to customers.

A record 58 per cent of respondents to the latest National Association for Business Economics survey of business conditions reported rising wage costs, while only 19 per cent reported that they had increased the prices they charged customers.

Analysts’ consensus forecast is for net profit margins to contract by 40 basis points in 2019, to 10.9 per cent, according to Goldman Sachs. Some on Wall Street are now bracing for an “earnings recession”.

The retreat from the post-crisis peak margins reached in 2018 signals a turn in the profit cycle that has powered the US market’s bull run and undermines an important prop for equity valuations ahead of the upcoming firstquarter reporting season.

It also marks a reversal from the confidence many executives had expressed last year that customers would continue to absorb rising wage and freight costs in a tight labour market and the impact tariff battles have had on raw material prices.

“We definitely are declining on margins,” said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices, who said S&P 500 margins had not seen such a drop since the fourth quarter of 2015.

As a result, more companies may have to announce lower earnings guidance to “get ahead of the bad news” before the first-quarter earnings season peaks in April, he said, but “April is definitely going to be a test month”.

The “shadow” over corporate profit margins prompted Elga Bartsch, head of economic and markets research at the BlackRock Investment Institute, to warn last week of the risk of “a full-blown earnings recession in 2019”.

“US profit margins don’t look as strong as commonly thought once secular uptrends and favourable tax treatments are taken into account,” she wrote in a note to clients.

Margin estimates have been revised down for almost half of the companies in the S&P 500 since the start of the year, Lori Calvasina of RBC Capital Markets found, compared with upward revisions at just 18 per cent of the index’s members. The technology, materials and energy sectors saw the biggest downward revisions.

After those cuts to forecasts, and a larger than average number of companies lowering their earnings guidance, the constituents

of the S&P 500 index are now expected to report a 1.7 per cent decline in earnings for the first quarter, according to data from Refinitiv. That decline is expected despite estimated revenue growth of 5.1 per cent.

While Refinitiv’s analysts do not expect an earnings recession for S&P 500 stocks — defined as two consecutive quarters of year-over-year earnings declines — they are forecasting such a contraction for US mid- and small-cap stocks.

Rising margins have been a powerful support for corporate America’s bottom line, which has also been aided by a sharp increase in spending on share buybacks. Companies in the S&P 500 spent a record $806bn on their own shares in 2018, S&P reported on Monday, beating the figure for 2017 by almost 56 per cent and shattering the previous record of $589bn that was set in 2007. But S&P expects the growth in buyback spending to slow to a “modest single-digit increase” in 2019.

The apparent end to a cycle of rising profitability will have winners as well as losers, Goldman’s analysts observed. Growing margin pressures have already led stocks with high pricing power to outperform, they found, and should also benefit companies with low labour costs.

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FT Uber pays $3bn for Middle East rival Careem

Trump faces old New York foe in Mueller report battle US president and House judiciary chairman Nadler once clashed over Manhattan development

Ride-hailing group makes acquisition ahead of this year’s initial public offering

JOSHUA CHAFFIN

SHANNON BOND AND SIMEON

J

U

ber is buying Middle Eastern rival Careem for $3.1bn in a deal that marks a shift in the US ride-hailing company’s global strategy ahead of its long awaited blockbuster initial public offering.

Uber will pay $1.4bn in cash and $1.7bn in notes that convert to Uber equity at $55 a share, marking the company’s biggest acquisition to date. The transaction, which is subject to regulatory approval, is expected to close in the first quarter of 2020.

For lossmaking Uber, taking over its strongest competitor in the region cements a dominant position in a fast-growing international market in the run-up to its IPO. Uber is expected to publish its paperwork as soon as next month for a listing on the New York Stock Exchange that could value the company at more than $100bn.

The deal marks a reversal from Uber’s run of exits from costly markets such as China, south-east Asia and Russia in exchange for minority stakes in competitors Didi Chuxing, Grab and Yandex respectively.

Careem will be operated as a fully owned subsidiary of Uber and will continue to exist as a standalone brand and service alongside Uber’s app in markets where they both compete. Mudassir Sheikha, Careem’s chief executive and co-founder, will run the business and report to a board made up of three Uber representatives and two Careem representatives.

“After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each,” Dara Khosrowshahi, Uber chief executive, wrote in a memo to employees.

He added that the companies would integrate parts of their networks but did not provide details or discuss what cost savings they would pursue.

Uber and Careem compete in passenger transport and food delivery across the Middle East, north Africa and south Asia.

The company was founded in 2012 by Mr Sheikha and Magnus Olsson, who previously worked together at the consultancy McKinsey.

Careem was valued at about $2bn in a fundraising round last year.

Careem’s backers include Didi, Rakuten and Daimler. It also has a significant pool of Saudi investors, including Prince Alwaleed bin Talal’s Kingdom Holding Company, STC Ventures and Al Tayyar Group. Uber received a $3.5bn investment from the kingdom’s state-owned Public Investment Fund in 2016.

Dubai-based Careem, with 33m registered users and 1.2m drivers across 98 cities, was keen to maintain its brand through the transaction.

“Independence was conditional,” said one person close to the transaction. “People are engaged in the brand as a local champion.”

Uber has been spending heavily in markets including the Middle East to subsidise rides and win market share. Discounts and incentives to lure passengers and drivers have slowed revenue growth in recent quarters.

Wednesday 27 March 2019

Theresa May in the House of Commons on Monday © Jessica Taylor/UK Parliament

Jacob Rees-Mogg signals readiness to back Theresa May’s Brexit deal Leading Eurosceptic issues warning after MPs vote to take control of EU withdrawal process LAURA HUGHES AND NAOMI ROVNICK

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acob Rees-Mogg, a leading Conservative Eurosceptic MP, has signalled he is ready to back Prime Minister Theresa May’s Brexit deal, as pro-EU forces in parliament take control of the House of Commons timetable to test softer alternatives.

Mr Rees-Mogg, who heads the pro-Brexit European Research Group, a majority of whose members have twice contributed to the deal’s overwhelming defeats in parliament, acknowledged that unless MPs fell behind the agreement, Britain could remain in the EU. “The choice seems to be Mrs May’s deal or no Brexit,” Mr ReesMogg said on Twitter on Tuesday.

“Is this deal worse than not leaving?” he added in a podcast recorded for the ConservativeHome website. “No, definitely not. If we take this deal we are legally out of the EU . . . Being legally out is of great importance. It restores our independence.”

Mr Rees-Mogg has in the past attacked the deal for potentially reducing Britain to a “slave state” because of the so-called backstop, a measure that could indefinitely yoke the UK to a customs union with Brussels.

But in his comments on Tuesday, Mr Rees-Mogg argued that

his preferred option of leaving the EU without a deal was no longer an option.

“The prime minister does not want to leave without a deal, the cabinet doesn’t want to leave without a deal and the British parliament doesn’t want to leave without a deal,” he said. “It is therefore very difficult to see how you get to leaving without a deal.”

Mr Rees-Mogg’s backing could change the parliamentary arithmetic around Mrs May’s deal, which the prime minister is looking at taking back to the Commons this week.

But even if he brings over a dozen of the about 80 ERG’s MPs, the group is split and some still say they will still oppose it. At least 20 are unlikely to back down on the resistance. One member of the ERG said: “It’s still not looking as though she [Mrs May] will have the numbers.”

That means Mrs May would still have to win round the 10 MPs from Northern Ireland’s Democratic Unionist party who normally provide her minority government with a majority in parliament but have deep misgivings of their own about the backstop. She will also have to convert a significant number of Labour MPs. The EU has decided that if the deal does not pass the Commons this week, the UK will be due to leave the bloc on April 12, rather

than obtaining a longer extension of its membership until May 22.

A senior UK minister warned opponents of Mrs May’s deal to swing behind it because the alternatives “are all worse” after MPs backed a cross-party effort to develop a plan B. The predominantly pro-Remain parliament on Monday night voted by 329 to 302 to seize control of the Commons timetable and test support for alternatives to Mrs May’s withdrawal deal.

Matt Hancock, the health secretary, told LBC radio on Tuesday that the options of Eurosceptics were narrowing. “Clearly the Commons has shown last night that it has the determination to ensure that there is not a no-deal Brexit,” he said.

He said that while Mrs May would listen to the Commons, she could not “pre-commit” to supporting any favoured Brexit option that MPs vote for. “The Commons might vote for an idea that is completely impractical and it might vote for two ideas that are incompatible,” he warned.

The Conservative Eurosceptic MP Ben Bradley, who said last week that he may no longer support the deal after voting for it when it came to the Commons a second time, said he would now “back the deal because I honestly don’t see another way forward now that’s not a nightmare”.

EU leaders urge China to open up domestic market Chinese president Xi Jinping told that reciprocity was required to seal EU-China agreement VICTOR MALLET

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rance, Germany and the European Commission pushed Chinese president Xi Jinping to open his country’s protected domestic market to foreign business, with German Chancellor Angela Merkel insisting on “a certain amount of reciprocity” from Beijing to seal a future EU-China investment agreement.

French President Emmanuel Macron invited Ms Merkel and Jean-Claude Juncker, head of the European Commission, to join him at the end of a bilateral summit with Mr Xi in Paris, in an attempt to underscore EU unity and Europe’s role as a commercial

superpower on a par with the US and China.

Mr Macron said Europe’s openness had aided the spectacular transformation of the Chinese economy and helped lift 700m people out of poverty but also generated “deep tensions which lead to the need for legitimate protection” — an apparent reference to recent restrictions placed by some EU member states on Chinese acquisitions of high-tech companies.

Mr Macron and other EU states have complained in particular about the near-impossibility of foreign companies winning public procurement contracts in China, for example in railways or other

transport infrastructure.

In his public statement, Mr Xi made no specific commitments on reciprocity, but said China would “continue to push forward with reform and opening up because China has been pursuing reform and opening up for the past four decades” in its high-speed modernisation and industrialisation since the 1970s.

The Chinese leader also issued a warning against mutual distrust in the China-EU relationship.

“We cannot let natural suspicion get the better of us,” he said.

“We cannot always be guarded against each other and worry that they may do something behind our backs.”

errold Nadler’s pledge to call William Barr, the US attorneygeneral, to testify before Congress about the Mueller report sets the stage for what promises to be the next battle between House Democrats and the Trump administration.

Viewed from New York, though, the clash looks like something else: the resumption of decadesold hostilities between two of the city’s enduring archetypes — the neighbourhood activist and the brash developer.

Long before they squared up in Washington on the national stage, Mr Nadler and Mr Trump — sons of Brooklyn and Queens, respectively — waged an ill-tempered feud over a legacy-defining development on Manhattan’s upper west side that was to feature the world’s tallest building.

The embers of that conflict still glow today. While Mr Nadler is beloved in the neighbourhood, Mr Trump is not. In fact, residents petitioned to have his name chiselled from their buildings.

Their late 20th century New York brawl previewed two starkly contrasting figures, now on display in Washington.

The bombastic Mr Trump, then early in his career but already media-savvy, was still refining what has become a well-honed practice of deploying nicknames to demean opponents. At one point, he publicly blasted Mr Nadler as “fat Jerry”.

Mr Nadler — more a “svelte Jerry” these days after a dramatic weight loss — kept his emotions in check. He is not easily charmed or offended, say those who know him.

Instead, he tends to maintain a lawyerly mien and then allow his legal filings to do the talking. Last month, soon after being installed as the Democratic chairman of the House judiciary committee, Mr Nadler fired a volley of 81 subpoenas against Trump associates as part of a probe into possible obstruction of justice and corruption.

“That’s classic Jerry,” said Jason Haber, a New York realtor who has long worked in Democratic politics. “Jerry’s going to do the work and keep his head down. And then all of a sudden, he brings the hammer down.”

Still, beneath the rational exterior, Linda Rosenthal, who once worked for Mr Nadler and now holds his former seat in the New York state assembly, detected at least a trace of glee at the prospect of revenge after so many years.

“I do think he probably relishes the fact that this opposition has come full circle and now he’s in the driver’s seat,” she said, referring to the congressional hearings Mr Nadler plans to convene. “I’m sure there’s a sense of satisfaction that at the end of the day, he’s going to get the better of Trump.”

The upper west side fight involved a property that was particularly dear to both men. It was a former rail yard bordering the Hudson River that was then Manhattan’s last sizeable parcel of undeveloped land.

Wednesday 27 March 2019

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Apple looks to TV as part of its own digital ecosystem The tech company is offering more services but questions over pricing remain RICHARD WATERS , ANNA NICOLAOU AND TIM BRADSHAW

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s Tim Cook embraced Oscar winner Octavia Spencer in front of a phalanx of press photographers, the star power briefly banished a blustery, rain-flecked March day at Apple Park.

Moments before, Oprah Winfrey had brought an audience in the Steve Jobs Theater to its feet with a typically passionate outburst. She was there to talk about the documentaries on sexual harassment and mental health that were her first projects for Apple TV+ (the name of the company’s long-awaited TV streaming service and the centrepiece of Monday’s event).

It was the sort of display of uncompromising artistic commitment that the late Jobs was adept at using to burnish Apple’s brand. And as a Hollywood A-list that included filmmakers Steven Spielberg and JJ Abrams, as well as the actress Reese Witherspoon gathered at the company’s Silicon Valley headquarters, the comparisons with the company’s late co-founder were inevitable.

Even after eight years at the helm, Mr Cook still has many doubters, said Tuong Nguyen, an analyst at Gartner. If he manages to make Apple’s streaming video service a hit, he will finally have shown that he can “fill the enormous shoes that Jobs left”.

The circumstances are very different from the ones Jobs faced in 2003, when he waded into the entertainment industry with the launch of Apple’s iTunes music store. At the time, the major music labels were reeling from rampant internet piracy and had failed to come up with a

digital business model of their own, creating an opening for Apple.

As it ploughs deeper into TV, by contrast, the iPhone maker is years behind streaming leader Netflix and is entering an industry that is flush with confidence and has no shortage of digital channels to reach consumers.

On Monday, in the gleaming new headquarters that Jobs designed, it was Mr Cook’s show. This may have been one of Apple’s most important pushes into services, but Eddy Cue, the company’s services chief, was confined to a front-row seat as his boss took the stage — something that drew comment in both Hollywood and Silicon Valley.

Uber clinches deal before IPO Uber is buying Middle Eastern rival Careem for $3.1bn in a deal that marks a shift in the US ride-hailing company’s global strategy ahead of its long awaited blockbuster initial public offering.

Bitmain IPO shelved Bitmain Technologies’ application for a blockbuster initial public offering has lapsed, after the fall in the price of bitcoin spoiled the fortunes of the provider of equipment for cryptocurrency mining.

Ex-Uber chief’s new deal Travis Kalanick’s City Storage Systems quietly acquired London-based “dark kitchens” start-up FoodStars last year, regulatory filings show, as the former Uber chief expands his new global venture.

Nintendo plans to launch two new versions of its Switch gaming console as early as this summer, as the company seeks to sustain sales momentum for the product going into a crucial third year. (WSJ)

Wall Street bounces, Treasury rally pauses as global growth worries ease MAMTA BADKAR , MICHAEL HUNTER AND ALICE WOODHOUSE

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S stocks marched higher on Tuesday as the recent rally in Treasuries took a pause, following gains in European stocks as fears about global growth that stalked markets at the end of last week appeared to subside.

The S&P 500 climbed as much as 1.1 per cent before trimming those gains to trade 0.8 per cent higher. Every major sector on the benchmark index was up in a broad based rally, led by energy, which advanced 1.5 per cent alongside healthcare, which was up 1 per cent. The Dow Jones Industrial Average was up 0.6 per cent while the Nasdaq Composite gained 0.8 per cent.

Meanwhile, the drop in US Treasury yields appeared to stabilise. The yield on the US 10-year was up 1.7 basis points to 2.4354 per cent, having slid below 2.4 per cent for the first time in 15 months during the previous session. Concerns about global growth had prompted investors to seek out so-called safe haven assets.

But Treasuries had also received support from the Federal Reserve’s move to pause interest rate rises for the year.

The move on Wall Street also followed a 0.7 per cent rise in Frankfurt’s Xetra Dax 30, which had been at the epicentre of the recent selling.

The Europe-wide Stoxx 600 added 0.8 per cent, while London’s FTSE 100 tacked on 0.4 per cent.

Japan’s Topix stood out in Asia with a 2.6 per cent rise, recovering from the biggest drop in three months which came on Monday when ripples from weak eurozone data released on Friday reached the region.

Nonetheless, China’s CSI 300 fell as the wait for clear signs of a breakthrough in the country’s trade relations with the US kept the mood there wary.

Sterling gained 0.1 per cent to $1.3214 as investors tracked the UK’s fraught domestic Brexit politics, with a signal from leading Conservative Eurosceptics that they could support the government’s withdrawal deal. With pro-EU forces in parliament taking control of the House of Commons timetable to test softer Brexit alternatives, investors also moved out of the relative safety of UK government debt, sending gilt yields higher. The benchmark 10year debt yield rose 2.4 basis points to 1.528 per cent.

LME backs Mercuria-led blockchain consortium to track global metals System will enable buyers to track their metal and help traders secure their inventory HENRY SANDERSON

T

he London Metal E xchange has backed a consortium of metals traders and banks to build a blockchainbased system to track the trade of physical metal, according to people familiar with the effort.

The world’s largest metals trading venue has supported the group led by Swiss trader Mercuria, which would provide a better picture of the flow of metals around the world, the people said. Dubbed “Forcefield” it also includes banks such as Macquarie and ING. The effort would enable industrial consumers to better track the source of their metal and also give metals traders secure ownership of their inventory.

It comes as companies face growing pressure from investors

and NGOs to detail the environmental and social impacts of their supply chains.

While the LME closely tracks metal such as copper, zinc and aluminium that sits in its global network of warehouses, a far larger amount of metal is traded and stored outside of the exchange. In addition the LME has no approved warehouses in China, the world’s largest consumer of metals.

That makes it harder for traders and consumers to be certain about the supply of their metal and also to assess broader supply and demand conditions.

Matt Chamberlain, chief executive of the LME, would not comment on the Mercuria initiative but said the metals industry needed to agree on a tracking and storage system based on

blockchain, the technology behind bitcoin.

Blockchain’s distributed ledger technology would reduce the need to have one central owner of the database, who would have too much private information to make it viable.

In 2016, the LME launched an electronic tracking system known as LMEshield, but it has not received widespread adoption by the industry.

In a blockchain-based system “you know where your metal is, you have proof of your metal, but nobody can see what your metal is and where your metal is,” Mr Chamberlain said.

“That is a fantastic vision for this market and if we as an industry can come together and deliver that it will be a huge win for the metals trading community.”

Lenders risk derailing Nyrstar rescue deal NEIL HUME

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anks risk derailing a rescue deal for Europe’s largest zinc producer Nyrstar, threatening thousands of jobs in the process if the company is forced into liquidation.

Lenders to the Belgian-registered company are currently unwilling to take a loss on metalfor-loan deals as part of a restructuring deal that has been agreed

by Nyrstar bondholders and Trafigura, its largest shareholder, according to people familiar with the matter.

Nyrstar is in a race against time to head off a debt crisis that will come to head later this year when €350m of debt are due to mature. The company has already deferred paying coupons on some of its bonds.

If Nyrstar is forced into liquidation it would result in thou-

sands of job losses in Europe, Australia and North America. It would also cause big disruptions to supply chains and remove one of the only big non-Chinese zinc smelters from the market.

Zinc is used to rust proof steel and is used by big automotive companies and other manufacturers.

Under the deal, bondholders have agreed to swap their debt for perpetual securities, or notes, issued by Trafigura, a move that would hand control of the company to the world’s second biggest metals trader.

As perpetual securities, which Trafigura plans to issue, are treated as equity for accounting purposes they will not add to the company’s debt levels. Trafigura has already written off its 20 per cent-plus stake in Nyrstar.

But the plan is conditional on Nyrstar’s lenders agreeing to write down some of the €287m

they are owed under the metalfor-loan agreements, or prepayments. The banks will not suffer any losses on other loans they have made to the company, the people said.

It is unclear at this time whether a deal can be reached.

Trafigura declined to comment. Nyrstar could not be reached for comment.

Nyrstar operates a handful of mines in North America as well as several zinc and lead smelters in Europe, the US and Australia.

Those plants take zinc and lead concentrates and turn them into refined metal.

The company’s debt problems date back to an ill-timed expansion into mining. Starting in 2009, it bought a series of mines, with a previous management team arguing that digging rocks out of the ground was a structurally more profitable activity than smelting.

48

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Wednesday 27 March 2019

ANALYSIS

OxyContin maker to settle state’s opioid claims for $270m Purdue Pharma’s deal could be first of many to come in latest wave of litigation HANNAH KUCHLER

P DE Shaw: inside Manhattan’s ‘Silicon Valley’ hedge fund The secretive group mixes quant investing with common sense to manage $50bn, but it faces a fight to keep its edge ROBIN WIGGLESWORTH

I

n 1988, Revolution Books, a tatty Communist bookstore near New York’s Union Square, got some strange new upstairs neighbours: a bunch of geeky programmers trying to crack the code to financial markets.

In the early days, the embryonic hedge fund founded by David Shaw, a former computer science professor at Columbia University, was a ramshackle start-up. Exposed pipes and extension cords meant that tripping on a cable could take out its entire trading system. Yet today DE Shaw is one of the hedge fund industry’s biggest players, managing over $50bn of assets.

It has enjoyed some mainstream fame as the place where a young Jeff Bezos first worked on what would ultimately become Amazon. But most importantly for a wider investment industry desperately trying to reinvent itself for the 21st century, DE Shaw has evolved dramatically from the algorithmic, computerdriven “quantitative” trading it helped pioneer in the 1980s.

It is now a leader in combining quantitative investing with traditional “fundamental” strategies driven by humans, such as stockpicking. This symbiosis has been dubbed “quantamental” by asset managers now attempting to do the same. Many in the industry believe this is the future, and are rushing to hire computer scientists to help realise the benefits of big data and artificial intelligence in their strategies.

Eric Schmidt, the former Google chairman who owns a 20 per cent stake in DE Shaw, predicts that this approach will profoundly reshape the investment management industry. “People have gone insane about this, but in a good way,” Mr Schmidt says. “We are at the beginning of a new era in artificial intelligence. These technologies should benefit investing as well.”

There are plenty of pitfalls though, with experts warning that poor implementation can lead to disastrous results. Wall Street has seen several cycles of quant hype before, and many remain sceptical that traditional firms can retool their culture sufficiently to unlock the potential advantages of a more hybrid approach.

The combination of DE Shaw’s

performance and the secrecy around exactly what it does both vexes and fascinates rivals and counterparties. “They’re like a calibrated machine that can respond to nearly every market,” says the head of an investment bank’s hedge fund trading desk. In a series of interviews with senior DE Shaw executives, the Financial Times has had a rare glimpse of how the “machine” operates.

Little known outside investing’s arcane corners, DE Shaw is the fourth-highest grossing hedge fund group of all time, having made over $29bn for its investors since those early days near Union Square, according to LCH Investments.

Last year its flagship $14bn Composite Fund — which has been closed to new investors since 2013 — returned over 11 per cent to investors net of fees, despite the turmoil in financial markets. That was its seventh double-digit gain of the past decade, over which period it has not suffered a losing year.

Its $7.6bn “macro” fund, Oculus, returned 5.9 per cent in 2018, and the $7bn stocks-focused Valence made 8 per cent.

Even among peers on Wall Street, DE Shaw is still a largely unknown quantity. “They’re really smart, but I’ve never quite understood them,” says one quant hedge fund manager. “They are one of those places where you just don’t know exactly what [it is] they do, except that it is some mix of quantitative and discretionary investing.”

This hybrid approach is not new.

DE Shaw ventured out of its quantitative roots soon after its founding.

But it now manages a wide array of strategies, ranging from completely machine-driven and dizzyingly complex, to human and artisanal, such as “distressed debt” investing and activism. Roughly half of the $50bn it manages are in quant strategies, and the rest in discretionary or more hybrid funds.

“The world tends to view quantitative and fully discretionary investing as distinct and separate, but the opportunity set [to make money] is not as cleanly divided,” says Max Stone, one of the five members of DE Shaw’s executive committee, along with Eddie Fishman, Eric Wepsic, Julius Gaudio and Anne Dinning.

Some rivals question whether it has departed too far from its roots.

For instance, Two Sigma — a major quant hedge fund started by former senior DE Shaw executives — has eschewed their former colleagues’ hybrid methods.

DE Shaw executives stress that their one constant is to have a data-driven “quanty” approach across the board, whether it is in high-speed arbitrage or investing in renewable energy. “Our core strength is thinking scientifically about things, so it doesn’t feel like we are wandering away from our roots,” says Alexis Halaby, head of investor relations at the company.

It currently employs about 1,300 people, which includes over 80 PhDs and 25 International Math Olympiad medal holders. All interviewees at DE Shaw face a series of analytical questions to demonstrate their suitability to work there — something even former US Treasury secretary Larry Summers had to go through ahead of a stint at the fund in 2006.

That approach seeps through into the culture, say observers.

Mahmood Noorani, a former hedge fund manager who now leads Quant Insight, an analytics company, describes the people at DE Shaw as “less alpha male and more gentle scientists”.

This has helped the company survive the type of leadership transition that has felled some rivals.

Most hedge funds see their fortunes fade once their founder steps down, but DE Shaw has thrived since Mr Shaw, 67, semi-retired in the early 2000s to pursue research into “computational biochemistry”.

Fittingly for a company started above a bookstore selling Marxist treatises, the day-to-day running of the hedge fund is now handled by the central committee of five, rather than a single, imperial impresario typical of the industry. “You’d be hard-pressed to find a management textbook that says a committee is a good way of running a company,” says Mr Stone. “But it works for us.”

This was among the factors that attracted Mr Schmidt when he scooped up the 20 per cent stake in DE Shaw held by the bankrupt estate of Lehman Brothers in 2015. “It feels like Silicon Valley in Manhattan,” he says. “People get consumed by hierarchy, but the evidence shows that flat structures and diverse teams operating collectively have better outcomes.”

urdue Pharma and its owners, the Sackler family, have agreed to pay $270m to settle a major lawsuit with the state of Oklahoma, in the first settlement in a recent wave of lawsuits against opioid manufacturers.

The maker of OxyContin did not admit guilt in the civil settlement, which could be the first of many as Purdue tries to manage its legal liabilities stemming from the opioid crisis. The company has hired restructuring experts and said it is considering whether to file for bankruptcy.

Purdue will pay $102.5m for the establishment of a National Center for Addiction Studies and Treatment, at the University of Oklahoma, plus $20m in medicines to support treatment of addicts, and another payment of $72.5m, according to a person

lier this month that bankruptcy was one of the many possibilities that Purdue was exploring. “We need to be prepared for given what may come in the weeks and months ahead, as we are involved in significant litigation,” he said.

Other companies frequently mentioned in lawsuits include drug distributors and drugstore operators.

The Oklahoma trial, set to start in May, will continue against the other defendants, Johnson & Johnson and Teva Pharmaceuticals. The defendants earlier this week lost their attempt to push back the start of the trial by 100 days.

The Oklahoma lawsuit accused the companies of playing down the risk of addiction from their products while overstating the benefits. It sought more than $20bn in damages.

Mike Hunter, Oklahoma’s at-

The maker of OxyContin, Purdue Pharma, faces more than 1,000 lawsuits © AP

familiar with the matter.

Purdue will also cover up to $60m in legal costs. Anything left over will go to the centre, the person said.

The Sackler family, who were not named in the lawsuit, separately pledged $75m in support for the centre over five years.

The company faces more than 1,000 lawsuits over claims that it fuelled the opioid crisis. This latest wave of litigation comes a decade after it was sued over alleged deceptive marketing practices by the US justice department, which resulted in a fine of $634.5m.

The family behind the privately held company has come under increased pressure in the last year. The Massachusetts attorney-general has named several family members in its own lawsuit over opioids, and major art galleries have declared that they will no longer accept donations from the philanthropists.

Purdue faces suits from 35 other states, as well as cities and counties, and the company is a defendant in a multi-district case set to go to trial in October.

Dr Craig Landau, Purdue’s chief executive, told the FT ear-

torney-general, filed the lawsuit in 2017, claiming at the time that the companies had “deceived and manipulated Oklahomans into believing opioids were safe for use over an extended period”.

Drug overdose deaths in Oklahoma increased eightfold from 1999 to 2012, surpassing the number of people killed in car crashes, Mr Hunter said at the time.

According to the US Centers for Disease Control and Prevention, more than 183,000 Americans died from an overdose involving a prescription opioid between 1999 and 2015.

The number of annual fatalities has quadrupled over the same period.

Carl Tobias, a law professor at the University of Richmond, said it had been a “tough judgment call” for Oklahoma. “It did seek billions for costs to the state, but it did secure a rather large amount,” he said. The deal may encourage other companies named in the litigation to pursue similar resolutions, he added.

Mr Hunter will hold a press conference later on Tuesday. A spokesperson for Purdue Pharma declined to comment.

WEST AFRICA

ENERGY intelligence oil

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Wednesday 27 March 2019

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BUSINESS DAY

OIL

West Africa: Refined product flows into West Africa scheduled at 1.2m mt in March Page 50

GAS

Tony Attah, NLNG’s MD/CEO, and Simbi Wabote, executive secretary, NCDMB, sign-off the Nigerian Content Plan for NLNG’s TRAIN 7 Project. They are flanked

by Saidu Mohammed (NNPC) and Sadeeq Mai-Bornu, Deputy MD, NLNG

Debrief

Algeria: Exxon’s talks to tap Algeria shale gas falter due to unrest Page 51 Market Insight

FRANK UZUEGBUNAM

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Oil prices slide on concerns of sharp economic slowdown Page 55 OPEC weekly basket price DAY

Funds are flying around for renewables. Nigeria needs more than just a passing interest

PRICE

22/3/19

66.67

21/3/19

67.78

20/3/19

67.54

19/3/19

67.25

18/3/19

66.87 Source: OPEC

igeria is struggling to light up the country.

There is in inadequate electricity supply both for domestic and industrial uses. The Federal Government claims the country is generating 7,000MW but citizens are hardly convinced.

Systems failure sometimes reduce the power available to less than 1,000MW with average daily power supply estimated at 3 hours and sometimes several days go by without any power at all.

Gas thermal plants generate about 85 percent of Nigeria’s power while hydro-electricity supply the rest. Shortage of gas, sabotage and vandalism of pipelines at certain times cut supply to the country’s gas thermal power plants.

Nigeria urgently needs a diversification plan and focus on renewables. And there are funds flying around to enable financing for small-scale renewable energy projects which can help households in remote communities gain access to

clean electricity.

The World Bank Group through its Energy Sector Management Assistance Program (ESMAP), in partnership with International Finance Corporation (IFC), announced a new program to advance the adoption of offshore wind energy in developing countries and emerging markets. The $5 million program is being initiated to help low- and middleincome countries implement environmentally sustainable energy solutions.

The African Development Bank (AfDB) approved an equity investment of up to $25 million in ARCH Africa Renewable Power Fund (ARPF). Also approved is a $250 million private equity fund for renewable energy projects across Sub-Saharan Africa.

There is a new €142 million initiative for Gambia to harness solar power and supply clean energy across the country, backed by the European Investment Bank (EIB), World Bank and European Union. The project will also be supported by €35.7 million financing from the World Bank.

“Connecting one of the largest solar power plants in West

Africa to communities across Gambia will increase access to clean energy, create new economic opportunities and improve health and education for future generations.” said Andrew McDowell, European Investment Bank Vice President responsible for energy.

In 2018, the African Trade Insurance (ATI) and European Investment Bank (EIB) launched a $1 billion Renewable Energy Facility for subSaharan Africa. The facility is supported by the government of Germany and the EU as part of their commitment to backing the UN’s Sustainable Energy for All initiative.

Also, MIGA, a member of the World Bank Group, issued a guarantee of €128.1 million in support of the construction of the first wind farm in Senegal. The Parc Eolien Taiba N’diaye SA wind farm will be made up of 46 turbines, providing some 158.7MW to the national grid will come on line by 2020.

Top oil and gas companies are not left behind. Royal Dutch Shell, Total and BP have in recent years accelerated spending on wind and solar power.

Europe’s oil majors account for

around 70 percent of the sector’s renewable capacity.

Shell leads the pack with future plans to spend $1-2 billion per year on clean energy technologies out of a total budget of $25 to $30 billion. Norway’s Equinor plans to spend 15-20 percent of its budget on renewables by 2030. Since 2010, Total has spent the most on low-carbon energies, around 4.3 percent of its budget.

As a whole, the world’s top 24 publicly-listed companies spent 1.3 percent of total budgets of $260 billion on low carbon energy in 2018.

Nigeria may not be totally out of the scene but for a country of about 200 million people, the country needs more than just a passing interest.

Nigeria established its first green energy fund with the tripartite signing of a Memorandum of Understanding (MoU) between Vetiva Capital Management Limited Climate Finance Advisory Limited (CFAL) and the African Guarantee Fund West Africa (AGFWA) on the Green Energy Fund (GEF) Programme which will create green asset portfolio in excess of $100million over a period of 5 years.

50 BUSINESS DAY WEST AFRICA Outlook

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Wednesday 27 March 2019

oil

Brief Angola: Eni makes major oil find offshore Angola

I West Africa: Refined product flows into West Africa scheduled at 1.2m mt in March

R

efined oil product arrivals into West Africa this month were scheduled at 1.197 million mt as compared to 1.371 million mt for February, according to Platts cFlow.

Most of the volume was expected to be gasoline, with only 116,000 mt of gasoil expected for March, aside from VLCCs carrying gasoil currently anchored in the region.

The 299,999 dwt Ascona was carrying ultra-low sulfur diesel, while the 310,000 dwt Olympic Laurel was carrying higher sulfur gasoil and the 318,000 dwt Dijilah was carrying a mixture of the two grades.

“The WAF gasoil market is quiet. There is not much demand at the moment,” a trader said.

Arrivals for April have also started to stack up,

with three vessels already expected to arrive into the region at the beginning of the month adding up to a total of 127,000 mt of clean products.

Gasoline flows into West Africa have remained steady, following a slowdown during the recent election in Nigeria. Stocks have remained at adequate levels, as a buoyant gasoline price has left it difficult to bring product

into the region.

The majority of demand for Northwest European barrels is coming from the US, as growing summer demand has been evident.

This has led to much of the gasoline being blended into RBOB specification, reducing West African supply.

“The US arbitrage is wide open. There is a lot of demand for RBOB components” one source said.

talian oil major Eni said it has made a major discovery in Block 15/06, in the Agogo exploration prospect, in the deep waters offshore Angola.

The find is Angola’s largest offshore discovery in years. Eni said the discovery is estimated to contain between 450 and 650 million barrels of light oil with further upside.

The discovery was made in the Agogo-1 NFW well, located approximately 180 kilometers off the coast and about 20 kilometers west from the N’Goma floating production storage and offloading unit (FPSO).

The exploration well was drilled by the Poseidon drillship in a water depth of 1,636 meters and reached a total depth of 4,450 meters, the major said.

The exploration well proved a single oil column of about 203 meters with 120 meters of net pay of high quality oil (31° API) contained in a sub salt diapirs setting in Lower Miocene sandstones with excellent petrophysical properties, Eni said. The data acquired from the well indicates a production capacity of more than 20,000 barrels of oil per day, it added.

The mapping and the

drilling of the prospect has been made possible through the use of Eni’s advanced and sophisticated proprietary seismic imaging technologies, it said.

Eni said the discovery opens new opportunities for oil exploration below salt diapirs in the northwest part of Block 15/06.

The Block 15/06 Joint Venture, composed by Eni (operator, with a 36.8421 percent stake), Sonangol P&P (36.8421 percent) and SSI Fifteen Limited (26.3158 percent), will work to appraise the discovery and start the studies to fast track its development.

Agogo is the third discovery of commercial nature since the Block 15/06 Consortium decided to launch a new exploration campaign in 2018, leading to the discoveries of Kalimba and Afoxé.

In Angola, Eni currently produces about 155,000 barrels of oil equivalent per day.

Sudan: Sudan says Egyptian Red Sea oil, gas blocks are on its territory

S

udan considers oil and gas exploration blocks offered

by Egypt in the Red Sea’s Halayeb area as a direct intrusion into Sudanese territory, Saad al-Deen Hussein al-Bishri, minister of state at Khartoum’s oil ministry, said.

The Halayeb triangle, which is controlled by Egypt, has been claimed

by Sudan since the 1950s.

However, Cairo says it is Egyptian territory and it has long been a source of contention between the two neighbours.

“It is considered an illegal operation that carries legal consequences which will be borne by the entities carrying out this operation,” al-Bishri said.

Al-Bishri said that

offering four of those blocks and other unnamed ones “within Sudanese lands in the Halayeb area are considered a direct intrusion into the authorities of the Sudanese Oil and Gas Ministry in granting licenses for oil and gas exploration in that area”.

Meanwhile, Sudan’s Foreign Ministry said it has summoned Egypt’s ambassador to Khartoum, Hossam Issa, over Egypt offering oil and gas exploration blocks “in Red Sea areas subject to Sudanese sovereignty”. It also urged oil and gas exploration companies against submitting any bids.

Egypt’s South Valley Egyptian Petroleum Holding Co has offered 10 oil

and gas exploration blocks in the Red Sea for sale through a tender on March 10, with bids due to close on August 1.

Foreign Ministry Undersecretary Badreddin Abdullah expressed Sudan’s protest at the offer and called on Egypt “not

to proceed in this direction that contradicts the legal status of the Halayeb triangle”, the ministry said in a statement.

Saad al-Deen Hussein al-Bishri, minister of state at Khartoum’s Oil Ministry, said that offering four of the 10 blocks and other unnamed ones “within Sudanese lands in the Halayeb area are considered a direct intrusion into the authorities of the Sudanese Oil and Gas Ministry in granting licences for oil and gas exploration in that area”.

Sudan’s Foreign Ministry “warns companies operating in the field of oil and gas exploration against submitting any bids in the mentioned area”, it said in the statement.

It said Sudan “renews the invitation extended to brotherly Egypt to use peaceful means to end this border dispute”.

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gas Brief Nigeria: NLNG, NCDMB sign Nigerian Content Plan for Train 7

N

igeria LNG Limited (NLNG) and Nigerian Content Development Monitoring Board (NCDMB) has signed off the approved plan for Nigeria Content (NC) for NLNG’s Train 7 project which will ensure the delivery of value and benefits to the Nigerian economy.

Tony Attah, Managing Director and Chief Executive Officer of NLNG, and the Executive Secretary NCDMB, Simbi Kesiye

Wabote, signed the NC Plan in Abuja at an event witnessed by representatives of the Nigerian National Petroleum Corporation (NNPC), Shell Gas B.V, Total Gaz Electricite Holdings France and ENI International N.A. N. V. S.àr. l, shareholders of NLNG. “The NC Plan being signed today has made clear and robust provisions to deepen Nigerian Content in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, significantly higher than what was achieved in the previous NLNG projects.

In order to adapt this spirit of continuous improvement, NCDMB and NLNG are fully aligned to collaborate during the operationalisation of the plan. This synergy will ensure that value added opportunities for Nigeria are indeed maximised and the Train 7 project is delivered to meet international standards of quality and safety”, said Tony Attah.

He added that NLNG was underpinned by its vision of being ‘a global LNG company helping to build a better Nigeria’, stat-

ing that playing globally is about the business itself and helping to build a better Nigeria is consistent with NLNG’s partnership with NCDMB. He noted that the partnership has been very effective through a Business to Business Service Level Agreement (SLA) with NCDMB signed in June 2017, the first of its kind in the industry.

He remarked that the economic impact of increased LNG production will be significant, stating

that since the start of its operations 20 years ago, NLNG has generated more than $100 billion in revenue and has paid over $16 billion in dividend to the Federal Government of Nigeria through the Nigeria National Petroleum Corporation with 49 per cent shareholding in the company. In addition, NLNG has paid over $13 Billion to the Federal Government for feedgas purchases and $6.5 billion in taxes. He remarked the numbers will be greater with the envisaged 35% increase in NLNG’s production, which he said will boost the country’s GDP significantly.

Speaking further on the benefits of the project to the Nigerian economy, Attah stated that the project will create over 10, 000 jobs at construction stage and will stimulate capacity building of local industries along the LNG value chain. He stated that NLNG has a sterling track record of developing local capacity, citing the recent BGT Plus Project where a subsidiary of NLNG, Bonny Gas Transport (BGT), procured six new vessels to renew its fleet.

51 WEST AFRICA ENERGY intelligence

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BUSINESS DAY

Algeria: Exxon’s talks to tap Algeria shale gas falter due to unrest

T

alks between Exxon Mobil and Algeria to develop a natural gas field in the North African country have stalled because of unrest, industry sources said.

Exxon entered talks with Algeria’s national oil company Sonatrach several months ago to develop a field in the southwestern Ahnet basin, the sources said. The talks were part of a deepening of ties between the two companies that followed Sonatrach’s acquisition last May of Exxon’s Augusta refinery in Sicily, Italy.

Officials from the two sides held talks in Houston, Texas to hammer out details but Exxon opted to suspend the discussions, temporarily at least, due to the wave of protests in Algeria over President Abdelaziz Bouteflika’s 20year rule, sources said.

The refinery acquisition and increased cooperation between the two companies were seen as

key for Sonatrach’s efforts to modernise its business and reduce reliance on fuel imports under Chief Executive Abdelmoumen Ould Kaddour.

The collapse of the talks follows years of attempts by Sonatrach to attract foreign companies to develop its vast oil and natural gas resources.

Bouteflika had appointed Kaddour in

March 2017 to turn around a state company hit by fraud scandals, lethargy and red tape. He has since then managed to rebuild ties with oil majors, some of which had shunned Algeria previously due to tough terms and bureaucracy.

Sonatrach hopes to tap foreign experience in fracking, a drilling technique that led to the rapid

expansion of US oil and gas production, to develop its own shale reserves, estimated at 22 trillion cubic metres, the world’s third largest.

Algeria is a leading gas supplier to Europe but exports have suffered from delays to several projects and a steep rise in the use of subsidised gas at home as the population has grown.

Mozambique: Anadarko to seek to charter 16 tankers for Mozambique LNG project

A

nadarko said it would seek longterm charters for around 16 liquefied natural gas (LNG) tankers it would need to ship gas from a proposed project in Mozambique.

The independent US energy producer aims to take a final investment

decision on the $20 billion project in the coming months, having signed up long-term buyers for its LNG. Anadarko said all the contracts signed so far, for over 9.5 million tonnes a year (mtpa) out of a capacity of 12.88 mtpa, were on a delivered ex-ship (DES)

basis.

The company could have sold the LNG on a free on board (FOB) basis, as do many US LNG projects, which leaves the buyers to organise the shipping.

“The project needs approximately 16 LNG vessels to service the DES

contracts,” Helen Rhymes, an Anadarko spokeswoman, said.

“While the specifics of the tendering process are confidential, the project plans to enter into longterm time charters with selected ship owners rather than own the vessels.

An invitation to tender will be issued sometime after FID.” Anadarko will start work on the construction of the onshore terminal once it takes the final investment decision. Already several thousand workers are onsite clearing the ground for the facilities.

Anadarko has LNG supply deals with Japanese utilities Tokyo Gas and Tohoku Electric, European utilities Centrica and EDF, India’s Bharat Petroleum, China’s CNOOC, Indonesia’s Pertamina and Royal Dutch Shell.

52 BUSINESS DAY WEST AFRICA ENERGY intelligence www.businessday.ng

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Wednesday 27 March 2019

power Report: Electrification of vehicles is crucial to fuel economy

A

South Africa: South Africa to get extra 900 MW of power from Mozambique

S

outh Africa’s state power utility Eskom will get an additional 900 megawatts of power from Mozambique after power lines damaged by Cyclone Idai were restored, President Cyril Ramaphosa said.

Eskom supplies more than 90 percent of the power in South Africa

but has suffered repeated faults at its coal-fired power stations, including two new mega power stations which are underperforming.

The situation worsened after Eskom lost its electricity imports from the Cahora Bassa hydroelectric system in Mozambique, which contributes more than 1,000 MW to the South African

grid, after a powerful cyclone.

“The minister of public enterprises has reported that they were able to revive and restore the power line from Cahora Bassa. So we will have an additional 900 megawatts,” Ramaphosa said in a statement.

Cyclone Idai battered Mozambique’s Beira, a low-lying port city of

500,000 residents, with strong winds and torrential rains, before moving inland to neighbouring Zimbabwe, where it flattened homes and flooded communities, and Malawi.

The power shortages in South Africa have seen Eskom implement eight straight days of nationwide electricity cuts to prevent the national grid from collapsing.

new study has found that electrification of light-duty vehicles (LDVs) is going to be crucial to ensure that fuel economy can be effectively improved, especially if diesel shares keep falling.

The global average fuel consumption of newly registered LDVs reached 7.2 litres of gasoline-equivalent per 100 kilometres (Lge/100 km) in 2017 within an LDV market where sales have grown by around 10 percent between 2015 and 2017.

This is according to a report issued by the International Energy Agency (IEA), which builds on a series of Global Fuel Economy Initiative (GFEI) working papers investigating the fuel economy of newly registered LDVs across the world from 2005 to 2017.

The GFEI is a partnership of the IEA, United Nations Environment Programme, International Transport Forum of the OECD, International Council on Clean Transportation, Institute for Transportation Studies at University of California Davis, and the FIA Foun-

dation.

The results are tracked relative to established GFEI targets, which are an intermediate target of 30 percent improvement of new LDV fuel economy, weighted globally, by 2020, and 50 percent by 2030.

Electrified vehicles are already contributing positively to improve the country-weighted average fuel consumption by up to 3.5 percent.

Japan experienced the largest gains due having to the largest market share globally for hybrids, followed by the United States with a mix of electrified vehicle types (HEV, BEV, and PHEV).

Electrification in China was also very relevant to improve the average fuel economy, thanks to a fastgrowing market share for BEVs and PHEVs. Countries that currently have high average fuel consumption values (which typically go hand-in-hand with high shares of large and heavy vehicles) can benefit the most from electrification since electrified vehicle efficiency is less dependent on size and weight.

Cote d’Ivoire: Energy players call for renewable finance restructure

E

nergy industry stakeholders have called for a restructuring of the financing mechanisms enabling the development of off-grid and mini-grid connectivity in Africa.

“Meeting the universal electricity access objective within the next decade will require the roll-out of off-grid and mini-grid solutions at scale,” said Daniel Schroth, acting director of renewable energy & energy efficiency at the African Development Bank, at the recent

Energy Access Investment Forum, which took place in Abidjan, Cote d’Ivoire.

The event had support from the Alliance for Rural Electrification, GET. invest (formerly the Africa-EU Renewable Energy Cooperation Programme), the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEEE) and UNIDO. Despite Africa’s significant energy resources endowments, over 500 million people on the continent are still without access to electricity.

“This forum is certainly an opportunity for investors, project developers and other stakeholders to learn more about upcoming support schemes, innovative products and new business models to accelerate rural electrification and advance the market for decentralised renewable energies,” said Marcus Wiemann, executive director of ARE and the 2019 conference chair.

Meanwhile, Mahama Kappiah, executive director of ECREEE, said that lack of adequate project management in Africa’s

energy sector is a major drawback to private investments.

“The money is not the problem. The way projects in the energy sector are prepared for financing is the problem. We need to address the institutional and regulatory issues in the energy sector so that Africa can attract more private investments,” said Kappiah.

Joao Cunha, manager of the renewable energy initiatives division at the AfDB highlighted that the bank has been a strong supporter of Africa’s energy sector.

Wednesday 27 March 2019

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BUSINESS DAY

53

POLICY

WEST AFRICA

ENERGY intelligence

A tale of electricity supply in Africa’s two biggest economies STEPHEN ONYEKWELU

A

frica’s two biggest economies, Nigeria and South Africa, are having a tough time keeping the lights on in homes and the machines running in factories despite huge sums of money sunk into the electricity supply value chain in these countries.

Citing shortage of capacity, South Africa’s utility company, Eskom Holdings SOC Ltd. has shifted gears to stage four load shedding, implemented to protect the system and to prevent a total collapse or a national blackout.

South Africa is preparing to bail out Eskom, which might involve the banks and asset sale alongside, to the tune of R69 billion ($4.9 billion), over the next three years. But there are no easy options given the state of

South Africa’s uncertain public finances, stubborn unemployment and inequality.

The fact that Nigeria and South Africa’s residential and industrial sectors suffer electricity shortages means that both countries struggle to sustain gross domestic product growth. South Africa emerged from its first recession in almost a decade in the third quarter of 2018.

Lack of accountability, transparency and mismanagement has made returns on investment into these utility companies sub-optimal. In Nigeria, the electricity generation and distribution have been privatised (with 40 percent government equity holding) but transmission lines are still owned by the federal government. South Africa’s Eskom still awaits the legal separation of generation, transmission and distribution electricity through privatisa-

tion.

What these utility companies have in common is the fact that the homes are not lit up and factories gasp for power in both economies despite humongous interventions from government.

The Federal Government of Nigeria had as at June 2018 committed the sum of N1.023 trillion ($2.84 billion) in different kinds of bailout packages to Nigeria’s struggling power sector yet Nigerians remain in darkness with power generation at abysmal levels of less than 4,000MW daily. And electricity market still has shortfalls of about N1.3 trillion ($3.61 billion). This has been due to inefficient revenue collection and uncertain feedstock for power generating plants.

On 6 December 2018, at a briefing at Eskom’s Megawatt Park head office, interim results forecast a R11.20 billion ($800

million) loss for 2018, up from R2.30 billion ($164 million) in 2017.

Eskom suffers equally from poor revenue collection. Municipal debt to Eskom stood at R17 billion ($1 billion) as of November 2018, yet the power utility is asked by government not to pursue cut-offs or legal cases for debt collection.

A plan to resolve the power snarl-up at local level has been in the making since early 2018, but Cabinet has at least twice delayed decision on the integrated electricity reticulation plan.

To move ahead on development of the power sector, national governments need take the initiative in a number of areas. They could focus on ensuring the financial viability of the power sector.

Electricity tariffs should reflect the true cost of electricity, costs should be transparent,

the country should make the most of what it already has in the sector, and officials should pursue least cost options in investments.

A second imperative involves creating an environment that will attract a broad range of funding mechanisms.

Private-sector involvement is critical and central to effectively delivering new capacity.

To attract the private sector, it is necessary to provide clear, consistent regulations; allocate risks to the parties best suited to carry them; ensure that a credible buyer (off-taker) exists; and seek support from external institutions to guarantee the risks.

Last, it is important for governments to demonstrate political will, keep an eye on the long term, and focus on the regulations and capabilities needed for the sector to thrive, not just on the plants and associated infrastructure.

54

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ENERGY intelligence Brief Oil major Total CEO’s compensation drops 17 percent in 2018

T

he board of French oil and gas major Total has proposed total 2018 compensation for Chief Executive Patrick Pouyanne of $3.55 million, compared with 3.8 million in 2017, company documents showed.

The total pay includes 1.4 million euros in fixed compensation, the same as in 2017, and 1.72 million in annual variable compensation, compared with 2.4 million in 2017, and 69,000 in other benefits, the documents showed.

The company said in a statement that the decrease in variable compensation resulted from criteria based on the av-

erage three-year change in Total’s adjusted net income in comparison with those of its peers.

“The Board of Directors wants to emphasize that the decrease by 17 percent of Patrick Pouyanne’s cash remuneration due for the year 2018, resulting from the strict application of the rules does not reflect in any way its appreciation of the exceptional work accomplished in 2018 by (him),” it said.

Pouyanne has often quipped that he is the least paid among the bosses of the global oil majors. The company reported a 28 percent jump in full-year profit in 2018 to $13.6 billion.

In comparison, Shell’s CEO Ben van Beurden’s 2018 pay package more than doubled to 20.1 million euros and Chevron Corp has said its Chief Executive Officer Michael Wirth is eligible for $19 million in total pay this year.

Total’s shareholders will vote on Pouyanne’s proposed package during an annual meeting on May 29.

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Goldman Sachs says Eskom power cuts to hit South Africa GDP

S

evere planned power cuts at South African state-run utility Eskom are expected to shave 0.3 percentage points off first-quarter GDP growth, Goldman Sachs said.

The continent’s most industrialised economy has suffered from some of the worst power cuts in several years, presenting President Cyril Ramaphosa with a major challenge two months before an election at which he will try to reverse a decline in voter support for the African National Congress (ANC).

If the current intensity of the planned cuts, known as load-shedding, were to persist in 2019, it could subtract up to 0.9 percentage points from annual growth, Goldman analysts said in a note to clients.

In February South Africa’s national treasury estimated GDP growth of 1.7 percent in 2019.

Eskom supplies more than 90 percent of the power in South Africa but has suffered repeat-

ed faults at its coal-fired power stations, along with low water levels at hydroelectric plants and diesel shortages.

“Restoring a reliable supply of energy and ensuring that we have a sustainable model for affordable energy into the future is now one of our

most urgent priorities,” Ramaphosa told a gathering at the 25th commemoration of Human Rights Day in Johannesburg.

“We are already putting in place a number of measures and making sure that the energy loss that we have had from the cyclone in Mozambique should be

restored,” he continued, adding that the government is also addressing maintenance challenges at power stations.

Eskom continued to implement rolling blackouts on Thursday with 4,000 megawatts cut from the grid on a rotational basis.

PetroChina plans biggest capital expenditure in four years

P

etroChina, Asia’s largest oil and gas producer, plans to boost capital spending to $45 billion in 2019, up 17 percent from last year, a company filing to the Hong Kong Stock Exchange showed.

The surge in expenditure to a near-record level came as PetroChina pledged to ramp up oil and gas production and reserves to answer Beijing’s call for greater energy security.

The group expects crude oil output this year at 905.9 million barrels and gas output of 3,811.0 billion cubic feet, it said in its earnings statement, with the total oil and gas equivalent of 1,541.2 million barrels.

Its crude oil processing output will reach 1,170 million barrels up from 1,123 million barrels last

year. But growth in crude runs slowed, reflecting competition from upcoming refineries.

PetroChina’s fourth-

quarter net earnings fell 18 percent from the same period the previous year to 4.46 billion yuan, making it the worst quarterly

performance since the third quarter of 2016, Reuters calculations showed.

Over the fourth quarter, global benchmark Brent

crude futures lost nearly 35 percent.

The Chinese producer’s fourth-quarter revenue, meanwhile, rose

to 644 billion yuan, compared to 558 billion yuan a year earlier.

PetroChina also plans to buy high-end chemical products and technical equipment from the United States, in addition to liquefied natural gas (LNG) imports already underway, and increase collaboration on oil and gas investment, company president Hou Qijun said.

“The two countries can further improve the trade structure, and especially with the progress in SinoU.S. trade negotiations, we have full confidence in expanding cooperation,” Hou said.

For the whole of 2018, PetroChina’s net earnings more than doubled to 52.6 billion yuan, the best since 2014. Revenue expanded to 2.35 trillion yuan, up 17 percent from 2017.

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revised down materially across all major regions,” said US bank Morgan Stanley. ANZ bank said the darkening economic outlook “overshadowed the supply-side issues” the oil market was facing amid supply cuts led by producer club OPEC as well as the US sanctions on Venezuela and Iran.

The Organization of

the Petroleum Exporting Countries and non-affiliated allies such as Russia, together referred to as OPEC+, have pledged to withhold around 1.2 million barrels per day (bpd) of oil supply this year to prop up markets, with OPEC’s de-facto leader, Saudi Arabia, seen to be pushing for a crude price of over $70 per barrel.

Vitol extends oil demand growth peak estimate to 2034

V

itol reported higher traded volumes last year, cementing its position as the world’s largest oil trader, and said it expected oil demand growth to peak by around 2034.

The estimate for demand growth to begin falling is later than before, despite global efforts to reduce carbon emissions from using oil. Vitol’s chairman Ian Taylor said in late 2017 he saw oil demand growth peaking by 2028-2030.

“We anticipate that oil

demand will continue to grow for the next 15 years, even with a marked increase in the sales of electric vehicles, but that demand growth will begin to be impacted thereafter,” Vitol said in a statement, adding that it has been investing in greener, renewable energies.

Vitol, which is run out of London, also said its traded crude and products volumes rose to 7.4 million barrels per day (bpd) last year, up from 7.2 million bpd in 2017.

55

ENERGY intelligence

O

Bullish sentiment helped drive benchmarks to last week’s highs but may soon lead to a correction.

Adding to concerns of a widespread global downturn, manufacturing output data from Germany, Europe’s biggest economy, shrank for the third straight month.

“Estimates for growth and earnings have been

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WEST AFRICA

Oil prices slide on concerns of sharp economic slowdown il prices were steady with concerns of a sharp economic slowdown competing with support from tighter supply due to OPEC’s production cutbacks and US sanctions on Iran and Venezuela.

Brent crude oil futures were down 7 cents, or 0.1 percent, at $66.96 per barrel while US West Texas Intermediate (WTI) futures were unchanged at $59.04 per barrel. Both crude oil price benchmarks closed down on the week since briefly hitting their highest since November 2018.

Concerns about a potential US recession emerged after cautious remarks by the US Federal Reserve caused 10-year treasury yields to slip below the three-month rate for the first time since 2007.

“Oil prices are under pressure due to a combination of recession fears and gloomy market sentiment,” Commerzbank said.

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Total oil volume was 357 million tonnes, up slightly from 349 million tonnes the previous year, it said in a statement.

Crude continued to represent the bulk of those volumes, rising to 3.8 million bpd from 3.6 million in 2017. On the products side, gasoline volume rebounded by 30 percent to 44 million tonnes while fuel oil and naphtha declined.

Its traded liquefied natural gas volume rose to 7.8 million tonnes in 2018, up from 7.4 million.

OPEC Flakes OPEC+ affirms commitment to oil cuts, defers decision to extend

S

audi Arabia led fellow members of the OPEC+ coalition to reaffirm their commitment to output cuts, but conceded they should defer until June the decision on whether to extend the curbs.

A committee of the most influential members in the 24-nation alliance, which includes Russia, Iraq and the United Arab Emirates, agreed to go beyond their pledged supply curbs in the coming months. They also recommended canceling a planned April meeting, saying it would be too soon to determine whether the cuts should continue into the second half.

The change in timing, which still needs to be agreed by the wider coalition, reflects what the committee described as “critical uncertainties” in the oil market, with US sanctions threatening to remove significant supplies from Iran and Venezuela. It’s also the latest sign that Russia, not Saudi Arabia, is setting the

agenda for a group that controls more than half of global crude production.

OPEC has faced pressure from US President Donald Trump to “relax” its stance on curbing supply, as severe strains on output from Iran and Venezuela threaten to trigger a shortage.

Al-Falih said the crises have not changed his view on the need to continue output restraints, as losses in both those countries have not been severe enough to prevent a renewed accumulation of oil inventories. The oil market is getting tighter, but not enough to reverse the cuts, he said.

Azerbaijan’s Socar sees commercial benefits from OPEC/non-OPEC deal Turnover increased on the back of rising oil prices to $231 billion last year, up from $181 billion in 2017.

Vitol did not disclose its net profit.

Vitol expects a major upstream investment in Nigeria to close later this year. The firm is part of a consortium that agreed to buy Petrobras’ interests in two major blocks that produce around 370,000 bpd for $1.41 billion. Oil and gas production in its Ghana interest was ramping up to 85,000 bpd, Vitol said.

A

zerbaijan’s participation in the OPEC/nonOPEC production agreement will bear fruit beyond stabilizing oil prices, with state-owned producer Socar expecting further commercial cooperation with other members of the coalition, Elshad Nassirov, Socar’s vice president, marketing and investments, said adding that the agreement has benefited Azerbaijan’s state budget, which is heavily dependent on energy prices.

Socar has budgeted for an oil price of $60/b in 2019.

“Of course the biggest risk is the volatility of prices, but we are pretty sure that this year and next year the price will be stable, not going down below $60/b,” Nassirov said.

His comments followed meetings with energy ministers and company officials on the sidelines of the OPEC/ non-OPEC Joint Ministerial Monitoring Committee meeting held in Baku, the first time the Caspian country has hosted such an event.

Nassirov said Socar continues to support Azerbaijan’s participation in the agreement and does not expect the company to suffer any damage from holding back production.

The deal has increased contact between Azeri and OPEC officials, which Nassirov said may lead to

greater commercial cooperation. Saudi officials have taken part in several meetings to discuss expanding energy cooperation with Azerbaijan in recent weeks and last year Saudi Aramco opened an office in Baku.

“The fact that Saudi Aramco opened up a big office in Baku means that they are interested in Caspian Sea development and of course cooperation and possible investments of Saudi Aramco in the Caspian is not limited to the Azerbaijan sector only,” Nassirov said.

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talking points

A look at Angola’s new oil-licensing strategy 2019 – 2025 ADRIANO RIOJA CIPRIAN

I

n yet another landmark reform for its hydrocarbons sector, Angola released in February 2019 a new Presidential Decree detailing the country’s oil licensing strategy for the next six years.

Published in February 2019, Presidential Decree No. 52/19 is a continuation of the Lourenço administration’s efforts to incentivize investments into exploration and arrest declining output. Angola’s oil production has been decreasing since its peak of almost 1.9 million bopd in 2008 to reach 1.478 million bopd last year.

With the objective of “increasing the production of oil and gas” and “ensuring the substitution of reserves to replace the evident decline in production in recent years,” the new decree hence defines the country’s new general strategy for the attribution of its petroleum concessions up until 2025.

Under the terms of the decree, petroleum concessions are to be awarded under three different modalities: public bidding, limited public bidding and direct negotiation.

The public tender and bidding avenue follows the legally-established procedure for the award of oil concessions under a competitive auction, as detailed in Presidential Decree 86/18. Under such an auction, state-owned Sonangol is entitled to a 20 percent stake in research operations in the case where it is not operator of the block.

In 2019, Blocks 11, 12, 13, 27, 28, 29, 41, 42 and 43 in the Namibe Basin, and Block 10 in the Benguela Basin are to be awarded under public bidding. In 2020, blocks CON1, CON5 and CON6 in the Congo Basin (onshore) and blocks KON5, KON6, KON8, KON9, KON17 and KON20 of the Cuanza Basin (onshore) are proposed to be awarded. Finally, blocks CON2, CON3, CON7 and CON7 of the Congo Basin (onshore) and blocks KON1, KON3, KON7, KON10, KON13, KON14, KON15 and KON19 of the Cuanza Basin (onshore) are proposed to be subject to public bidding in 2023.

For reasons of national strategic interest, a second modality will be a limited public bidding, restricted to a number of previously-selected companies. The modality applies to the blocks and contract areas that have been returned to the State, and eligible bidders will be selected from companies that have demonstrated knowledge, expertise and both technical and technological competence operating in Angola. The procedure will follow the rules set out in Presidential Decree No. 86/18 and will apply in 2021 to maritime blocks 7, 8, 9, 16, 33 and 34, and to free area blocks 31 and 32, and in 2025 to blocks 22, 24, 25, 26, 35, 36, 37, 38, 39 and 40.

Finally, blocks 6, 30, 44, 45, 46 and 47 are open to direct negotiations, which must be concluded before the end of the first semester of 2019. Successful companies must enter into a Service-at-Risk Contract and demonstrate relevant proven experience,

expertise, technical and technological capabilities operating in Angola or other oil provinces.

The legislation is in line with Angolan President João Lourenço’s implementation of a bullish reformist agenda that is drastically transforming the governance of subSaharan Africa’s second largest producer since the 2017 elections.

In May 2018, Angola had already released three presidential decrees related to the governance and regulation of its oil & gas sector: Presidential Decree No. 5/18 establishing the framework for the exploration activities of the Development Areas; Presidential Decree No. 6/18 regulating the development of marginal

Snapshot

The clarity provided by the new oil licensing strategy, and its promulgation

by Presdiential Decree is expected to provide sufficient incentives to raise interest of African, independent and international majors in exploring Angolan acreages

fields and Presidential Decree No. 7/18 regulating the prospection, research, evaluation, development, production and sale of natural gas.

The clarity provided by the new oil licensing strategy, and its promulgation by Presdiential Decree is expected to provide sufficient incentives to raise interest of African, independent and international majors in exploring Angolan acreages. It will also be coupled with the country’s first Marginal Fields Bidding Round, set to be launched at the Angola Oil & Gas Conference in Luanda on June 4-6, 2019.

Adriano Rioja Ciprian, Associate Attorney, Centurion Law Group

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Live @ the Stock exchange Prices for Securities Traded as of Tuesday 26 March 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 186,585.42 6.45 0.78 266 16,340,831 UNITED BANK FOR AFRICA PLC 265,045.52 7.75 -0.64 277 11,750,577 681,303.92 21.70 0.93 311 6,332,116 ZENITH BANK PLC 854 34,423,524 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 296,136.17 8.25 0.61 283 29,655,762 283 29,655,762 1,137 64,079,286 BUILDING MATERIALS DANGOTE CEMENT PLC 3,237,696.41 190.00 0.80 76 1,996,992 208,595.95 12.95 -0.39 67 612,286 LAFARGE AFRICA PLC. 143 2,609,278 143 2,609,278 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 323,644.51 550.00 - 25 64,580 25 64,580 25 64,580 1,305 66,753,144 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 1 20,000 1 20,000 1 20,000

OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 3,312.39 103.20 - 0 0 VALUEALLIANCE VALUE FUND 0 0 0 0 1 20,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 75,358.89 79.00 - 11 123,292 PRESCO PLC 64,500.00 64.50 -5.15 39 932,710 50 1,056,002 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,890.00 0.63 5.00 8 147,968 8 147,968 58 1,203,970 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 820.66 0.31 - 0 0 202.36 0.52 - 6 20,876 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 0 0 49,184.07 1.21 -3.97 94 9,101,148 TRANSNATIONAL CORPORATION OF NIGERIA PLC 23,050.37 8.00 - 31 316,227 U A C N PLC. 131 9,438,251 131 9,438,251 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 36,300.00 27.50 - 19 31,320 ROADS NIG PLC. 165.00 6.60 - 0 0 19 31,320 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,313.34 1.66 -2.35 19 583,615 19 583,615 38 614,935 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 11,352.77 1.45 - 3 75,000 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 1 5,500 GUINNESS NIG PLC 140,184.50 64.00 - 28 66,402 INTERNATIONAL BREWERIES PLC. 223,492.41 26.00 - 4 4,450 NIGERIAN BREW. PLC. 535,792.44 67.00 -3.60 89 347,234 125 498,586 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 57,250.00 11.45 3.15 130 6,566,808 DANGOTE SUGAR REFINERY PLC 169,200.00 14.10 - 36 297,688 FLOUR MILLS NIG. PLC. 77,702.19 18.95 - 33 57,383 HONEYWELL FLOUR MILL PLC 9,516.24 1.20 -0.83 26 698,913 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 50,339.33 19.00 - 20 160,915 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 245 7,781,707 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 20,378.49 10.85 9.60 17 108,619 NESTLE NIGERIA PLC. 1,187,319.80 1,497.90 -0.01 42 37,823 59 146,442 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,940.83 3.95 -0.50 20 8,097,296 20 8,097,296 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 40,498.87 10.20 -2.86 32 350,199 UNILEVER NIGERIA PLC. 224,055.21 39.00 1.30 79 1,556,975 111 1,907,174 560 18,431,205 BANKING DIAMOND BANK PLC 56,048.14 2.42 - 0 0 ECOBANK TRANSNATIONAL INCORPORATED 239,461.64 13.05 -3.33 54 1,616,406 FIDELITY BANK PLC 66,062.54 2.28 1.33 153 7,718,998 GUARANTY TRUST BANK PLC. 1,100,726.10 37.40 -0.27 257 4,991,103 JAIZ BANK PLC 15,321.41 0.52 -1.89 13 746,380 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 69,097.00 2.40 - 29 2,197,388 UNION BANK NIG.PLC. 200,933.19 6.90 -2.13 61 2,297,338 UNITY BANK PLC 9,819.04 0.84 - 6 28,951 WEMA BANK PLC. 28,930.85 0.75 -6.25 33 1,490,734 606 21,087,298 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,197.65 0.75 -1.33 39 2,998,715 AXAMANSARD INSURANCE PLC 23,100.00 2.20 - 5 20,499 CONSOLIDATED HALLMARK INSURANCE PLC 2,357.70 0.29 7.41 5 418,350 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,093.20 0.21 - 2 209,156 GOLDLINK INSURANCE PLC 2,001.98 0.44 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,270.26 0.31 - 5 41,821 LAW UNION AND ROCK INS. PLC. 2,191.13 0.51 - 1 10,000 LINKAGE ASSURANCE PLC 4,400.00 0.55 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 1,920.00 0.24 - 0 0 NEM INSURANCE PLC 12,409.18 2.35 6.33 19 422,769 NIGER INSURANCE PLC 1,702.69 0.22 - 2 1,223 PRESTIGE ASSURANCE PLC 2,960.40 0.55 - 1 2,100 REGENCY ASSURANCE PLC 1,600.50 0.24 - 3 646,000 SOVEREIGN TRUST INSURANCE PLC 1,834.98 0.22 - 3 199,404 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 516.46 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 5,353.10 0.40 -4.76 37 1,030,860 122 6,000,897

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,384.22 1.48 -1.99 21 1,513,910 21 1,513,910 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 3,780.00 0.90 - 0 0 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,740.00 3.87 0.26 53 989,048 37,055.74 6.30 - 2 10,500 CUSTODIAN INVESTMENT PLC 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 38,417.26 1.94 -0.51 89 5,961,703 1,492.16 0.29 - 2 55,000 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 496,666.82 48.50 - 22 31,197 17,100.00 2.85 1.06 59 3,559,382 UNITED CAPITAL PLC 227 10,606,830 976 39,208,935

HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,065.94 0.30 3.45 3 315,600 3 315,600 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 1 10 1 10 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 7,425.00 4.95 - 5 49,168 FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. 12,915.47 10.80 - 9 50,047 4,226.83 2.45 2.08 9 278,390 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,177.48 0.62 - 5 39,975 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 0 0 PHARMA-DEKO PLC. 28 417,580 32 733,190 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 2 1,100 NCR (NIGERIA) PLC. 648.00 6.00 - 1 200 381.11 0.77 - 0 0 TRIPPLE GEE AND COMPANY PLC. 3 1,300 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 1 50,000 E-TRANZACT INTERNATIONAL PLC 11,088.00 2.64 - 0 0 1 50,000 4 51,300 BUILDING MATERIALS BERGER PAINTS PLC 2,391.04 8.25 - 15 24,274 CAP PLC 26,180.00 37.40 - 4 5,377 262,870.02 20.00 - 18 104,591 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 633.11 0.30 - 1 90,000 MEYER PLC. 313.43 0.59 - 0 0 1,999.41 2.52 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC PREMIER PAINTS PLC. 1,279.20 10.40 - 2 70 40 224,312 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,258.45 1.85 - 5 60,755 5 60,755 PACKAGING/CONTAINERS BETA GLASS PLC. 35,972.99 71.95 - 3 15 GREIF NIGERIA PLC 388.02 9.10 - 0 0 3 15 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 48 285,082 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 0 0 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 1 100 1 100 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 2 296,455 2 296,455 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 3 296,555 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 14 1,170,900 14 1,170,900 INTEGRATED OIL AND GAS SERVICES OANDO PLC 70,859.05 5.70 1.79 72 1,515,884 72 1,515,884 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 61,301.19 170.00 1.80 29 89,202 CONOIL PLC 15,960.90 23.00 - 25 72,512 ETERNA PLC. 6,129.48 4.70 -2.08 12 165,293 36,078.73 27.70 - 24 63,750 FORTE OIL PLC. MRS OIL NIGERIA PLC. 6,354.80 20.85 - 8 18,841 TOTAL NIGERIA PLC. 66,546.28 196.00 - 48 57,638 146 467,236 232 3,154,020 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 16,576.10 1.70 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 1 4,540 1 4,540 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 2 1,890 TRANS-NATIONWIDE EXPRESS PLC. 323.50 0.69 - 0 0 2 1,890 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,554.74 1.71 - 7 88,558 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 1 20 TRANSCORP HOTELS PLC 41,042.18 5.40 - 3 9,622 11 98,200 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 199.58 0.33 - 2 20,000 LEARN AFRICA PLC 1,026.03 1.33 1.53 5 312,000 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 819.68 1.90 -5.00 16 1,415,475 23 1,747,475

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Opinion

Success Adegor: Woman of the year!

Franklin Ngwu

U

ndeterred by poverty, a little unknown girl born in adversity 7 years ago has redefined and personified the meaning of determination, commitment, sense of responsibility and resilience. With her interesting life trajectories, I am beginning to believe that there is something in a name. Her name is Success and she is determined to succeed! And not only that she wants to succeed, she wants to succeed in a very forthright way. Listening to her story, Success comes across as an island of moral fortitude in an ocean of moral turpitude. Sent home for failure to pay N900.00 examination fee, Success was furious at the callousness of Okotie Eboh Primary School, Sapele, Delta state to send her home even when she preferred being flogged.

Moreover, Success was very willing to pay the fees but only requested for time to enable her parents or possibly herself raise the demanded fee. To Success, which I fully agree to and support, she was badly treated by the school and as the school is ‘stubborn’, the best way to handle them was to show that she is more tenacious. This she abundantly

demonstrated!

After clearly and convincingly stating her case in the short video, she took very bold and unyielding steps voicing her determination to fight on for her right to be educated. Based on the way Success handled the situation, she is really my woman of the year!

Of course I did not call her my girl of the year because she did not behave like one nor like a child. She behaved like a full grown up woman and a very independent one with little or no reliance on parents, husband or society.

The fight is hers and she is gallantly fighting it as such! I salute her courage and determination to survive! In her actions, I see a fight against everything wrong with our dear country and nation. She is fighting against poverty in plenty, failure of good governance and accountability, absence of empathy and fiduciary duty of care. Success is fighting for survival in a very challenging environment and it is a good fight that should be supported by all men and women of good will. She is fighting for freedom and development not for herself but for all and sundry who are not privileged to belong to the less than 1% fortunate ones.

In his most interesting 1999 book, Development as Freedom, Amartya Sen lucidly demonstrates that the provision of the basic necessities and opportunities which he describes as freedom is the fulcrum for the sustainable development of every society. As I grieve in Success’ adversity, Amartya Sen’s gospel that the provision of opportunities such as education and health care significantly contributes to the achievement of individual capabili-

‘

She is fighting against poverty in plenty, failure of good governance and accountability, absence of empathy and fiduciary duty of care

ties and when aggregated manifests as societal development became more apparent. Most remarkable in Sen’s counsel is his unquestionable and most convincing role of women in sustainable development. He cautions that while enhancing the well-being of women is important, what is even more imperative and impactful is the advancement and support of their societal roles. For instance, he most compellingly demonstrates that improving women’s literacy levels and employment opportunities expectedly results to improved fertility and lower child mortality.

Success Adegor is a 7 year old child from a major oil producing state, Delta, fighting for the opportunity to study in a school without proper roofing and preferring to be flogged than being sent home. While she might not have read Sen’s book, she is an epitome of the contents of the book. As the causes and solution to most of our social problems have been thankfully further exposed by both Success and Sen’s book, I think that the good fight which Success has started should not be treated with levity or allowed to die. Moreover, as Success’ situation is a classic case of serendipity or divine revelation with many more girls like her who might not be as successful and blessed as Success, I think that it is a good fight that must be fought to a logical and impactful end. On the part of Delta state government, it is a failure of leadership, governance, accountability and responsibility. While suspending the head teacher Mrs Vero Igbigwe for collecting illegal fees is proper, it is grossly inadequate and deceptive. Even if the

school was collecting illegal fees, is the head teacher also responsible for the disgraceful state of the school? With the state of infrastructure in the school which is similar to many other public schools in Delta in addition to the alleged collection of illegal fees, the Commissioner for Education should be suspended and possibly sacked with a good apology offered to Deltans and Nigerians by the Governor. If we want to move forward as a country, I think it is time for effective actions for inexcusable dereliction of duty.

Another major stake holder that should treat this case with more seriousness that it deserves are the various women organizations around the country especially Women in Management, Business and Public Service (WIMBIZ).

As a foremost platform for the advancement of women freedom and opportunities, I think that Success should be invited to major events such as International Women Day celebrations. For her determination to survive, she should be promoted as a role model of resilience and commitment for girls and women.

With advocacy for more women in leadership positions in both private and public sectors, a clear leader such as Success should be celebrated and supported to succeed. As she succeeds so will Nigeria succeed in reducing infant mortality, dependency challenges and above all better and more caring wives, mothers and society!

Dr. Ngwu is a Senior Lecturer in Strategy, Finance and Risk Management, Lagos Business School and a Member, Expert Network, World Economic Forum.

E-mail- fngwu@lbs.edu.ng

Nigeria’s 2019 election outcome: Class war or regional conflict? (1) Bongonomics

Bongo Adi

T

he voting patterns in Nigeria’s elections over time clearly depict the reality of regional coalitions in politics in a manner that could well be described as regional conflicts. Looking at the results maps over the last 6 presidential election cycles with the exception of 2007 for which there seems to be no record, the reality suggests regional voting patterns. In 1999, with the exception of the South West region that voted in block for Olu Falae, the Peoples Democratic Party, PDP, swept across the divide. But subsequent elections from 2003 to the most recent in 2019, more or less display and cast the regional and ideological divisions of the country in very clear relief.

Going back to the first and second republic, we observe this same reality: The North - South divide was preeminently evident and manifested in every national issue from elections to incentives. While acknowledging the essential reality of block voting patterns over time in Nigeria, we attempt to interrogate the data for other features.

We observe that the data on voting patterns also truly masks several other social and economic correlates.

The 2019 elections in which President Buhari is re-elected manifest the usual traits of regional and sectarian coalition. The venomous tribal sentiments that instigated the Civil War of 1967 to 1970 rose to a feverish pitch even more than in 2015, and the embers are still smoldering. There is no doubting the propensity for these ethnic antagonisms and the ongoing warnings of impending pogroms to materialize into full blown civil disturbances. Most notorious ethnic cleansing and genocidal wars, whether of the Jews prior to Hitler or Biafra or Rwanda or Yugoslavia almost all started with sectarian animosities projected in vitriolic speeches and writings in the media. In these times it appears the social media has given a renewed boost to these dangerous rants.

However, as we argued in an earlier piece, these outbursts are mere subterfuges for a social psyche hijacked by what we term the “witch-killing” syndrome — the scape-goating mechanism to externalize our anxieties to others and vilify them just so to exclude, marginalize, isolate and at the same time blame them for what is essentially a material struggle to control dwindling and scarce resources. You may call this the instrumentalization of scapegoating for political economic gains.

This becomes evident when we take

a different look at the voting patterns in the 2019 presidential elections in Nigeria. Our analysis does show that beyond the stylized depiction of regional conflicts, some other forces appear to be at play in the voting patterns exhibited across different regions in Nigeria.

In spite of the 91 political parties and 73 presidential candidates in the 2019 elections, it turned out to be essentially a two-horse race between the ruling All Progressives Congress (APC) and the People’s Democratic Party (PDP).

The two parties accounted for almost 91% of the votes, while the remaining 71 parties mopped up less than 5%.

Perhaps, it is about time we reviewed the wisdom in registering so many parties that contribute nothing other than increase the cost of elections. Several people wondered at the length of the ballot papers in the election which stretched very long to accommodate every party’s logo - both known and unknown. Going by the outcome in the past two decades of elections, the rational approach would be to restrict political parties to no more than a few dozen. Otherwise, political parties should be made to bear the cost of printing ballot papers instead of financing such waste from the public purse.

The election registered the lowest turnout since return to civilian rule in 1999 of 35.6% compared to 44% in 2015; 54% in 2011; 58% in 2007; and almost 70% in 2003. It is clear from this that voter participation has

‘

The venomous tribal sentiments that instigated the Civil War of 1967 to 1970 rose to a feverish pitch even more than in 2015, and the embers are still smoldering

been on a downward spiral since the onset of the third republic in 1999. A lot of reasons have been adduced for this - from unprecedented cancelation of the presidential election few hours to its commencement, to the upside down sequence of voting where presidential election which should ideally be the last is scheduled first, to the militarization of elections and large scale violence that culminated to wanton killings, physical assaults and destruction of property in many places. Such voter apathy could also be interpreted to mean a loss of confidence by the general electorate on both the electoral process and the government in general. Many Nigerians feel that elections are no more than cyclical rituals that have little or nothing to do with governance. Most have seen their standard of living dwindle rather than improve over the past 2 decades of elections and government transitioning. For example, the electricity situation has remained stagnant in Nigeria from 1999 to 2019 - barely moving from the average of 4,000 MW per day. Poverty situation has actually worsened as per capita disposable income has shrunk below pre-1999 levels. It can therefore be inferred that Nigerians exhibited their total discontentment with the system and its electioneering process.

Dr Adi, PhD is a faculty member of Lagos Business School

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