BusinessDay 27 Nov 2019

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news you can trust I **WEDNESDAY 27 NOVEMBER 2019 I vol. 19, no 444

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Nigeria’s LPG consumption to hit 2m MT in 2020 ISAAC ANYAOGU

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says pension funds must begin to fund development

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Liquidity glut won’t fuel speculative demand for FX - Emefiele overnor Central Bank of Nigeria (CBN), Godwin Emefiele, said on Tuesday that he does not anticipate that liquidity glut arising from recent open market operations (OMO) ban for non-bank investors and corporates would fuel speculative demand for dollars

3M 0.00 7.56

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L-R: Ernest Ndukwe, chairman, MTN Nigeria; Umar Danbata, executive vice chairman, Nigerian Communications Commission (NCC); Issa Pantami, minister of communications and digital economy; Olabiyi Durojaye, board chairman, NCC, and Ferdinand Moolman, CEO, MTN Nigeria, at the official demo of the 5th Generation of Cellular Network (5G), in Abuja.

Onyinye Nwachukwu, Abuja, Hope Moses-Ashike & Bunmi Bailey, Lagos

fgn bonds

Treasury bills

with adverse effect on the naira either in the near or medium term.

He said that the apex bank is rather noting a ramped-up FX demand for the importation of raw materials, plant and equipment, which indicates increased manufacturing output as also reflected in the 3rd quarter GDP numbers which ramped up to 2.28 percent from 1.94 percent in the 2nd quarter of 2019.

Emefiele was responding to

BusinessDay fears that the excess liquidity arising from the recent OMO ban could find outlet in the FX markets leading to a possible pressure on the dollar-naira exchange rate.

“To be honest, we have not seen that; if at all, I would say that what is happening is that as a result of banks increasing their lending, naturally some of these loans will go into importation of plants and equipment and some of the data

we have show that there was increased importation of plants and equipment which for us is positive,” Emefiele said, assuring again that the CBN would continue to meet genuine demand for FX. “That is what we rather see as the impact so far on the FX market – importation of raw materials and equipment needed to expand production,” he said.

This comes as the CBN took

Continues on page 38

igeria’s quest to replace dirty fuels with more use of Liquefied Petroleum Gas (LPG) is a success story having grown from a mere 70,000 metric tonnes within 10 years ago to nearly 900,000 metric tonnes by September, and on course to hit over 2 million metric tonnes next year, operators say.

The main drivers for this growth have been forward-looking regulatory policies including removal of 5 percent Value Added Tax on the product and 30 percent import duty waiver LPG equipment and appliances by the government. This has led to a 30 percent reduction in the cost of infrastructure development.

There have also been in-

Continues on page 38

Inside

$63bn debt: AGF asks international oil companies to pay up P. 2 How KOPETECH is helping start up entrepreneurs achieve their dreams P. 20

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news Govt determined to remove challenges impeding property investment – Sanwo-Olu CHUKA UROKO

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ing demand-supply gap in the state at 3 million, requiring about 200,000 housing units to be built yearly for the next 10 years to bridge.

The report says that about 80 percent of the state’s over 20 million residents are renters, meaning that the state’s housing sector offers huge investment opportunities waiting to be tapped.

Sanwo-Olu, who was represented at the summit

by Moruf Akinderu-Fatai, the state commissioner for housing, assured both existing and potential investors in the real estate sector of government’s commitment to address all their concerns with the deployment of cutting-edge technology, especially in the land management and administration system.

“We are also committed to ensuring transparency and accountability in the whole system of processing security documents within the shortest time possible,” the governor said.

In spite of the challenges in Lagos as a mega city, Sanwo-Olu said the real estate sector has continued

he Lagos State gove r n o r, Babaj i d e Sanwo-Olu, says the state government is determined, more than ever before, to address the critical challenges that have impeded the growth of investment in the property business in the state.

Some of these challenges, the governor said, are availability and security of land, the issue of land grabbers and the delay in processing and issuing necessary papers and permits such as certificate of occuL-R: Lola Cardoso, head, distribution and channels; Ogochukwu Ekezie-Ekaidem, head, corporate communications and marketing; pancy, building permit, etc.

Kemi Ogunleye, head, strategic communications, and Bunmi Olufeko, head, service assurance, all of Union Bank, at the SERAS A major concern of the awards where Union Bank received three awards. government is to create an enabling environment for investment to thrive in the real estate sector as a strategy to bridge the housing international companies “The 5 percent as a re- 162 of the Constitution of deficit and also fully harFelix Omohomhion, Abuja did not pay, the arrears of covery fee is a product of the Federal Republic of he Attorney-Gen- which were estimated at innovation introduced by Nigeria 1999 as amended, ness the inherent potential for job creation and wealth eral of the Federa- $62,190,679,709 as at 2018. the Federal Government the amount in question generation for the people, tion and Minister of The call is contained upon the assumption of is more than enough for the governor said at the onJustice, Abubakar in a statement issued by office of the President three years’ budget of the going West Africa Property Malami, has again asked In- Umar Jibrilu Gwandu, spe- Muhammadu Buhari as most populated African Investment (WAPI) Summit ternational Oil Companies to cial assistant on media against 30 percent and country, Federal Republic in Lagos. settle about $63 billion owed and public relation to the above which was the tra- of Nigeria, considering the Lagos has a very chalthe Federal Government.

AGF, and made available ditional fee by the pre- 2020 budget of N10.3 tril- lenging housing situation.

The minister said the to newsmen in Abuja on viou s administration,” lion,” he said.

A Pison Housing Company money represents unpaid Tuesday night.

Continues on page 38 Malami said.

Malami said it was not Report estimates the housarrears the companies Speaking on the media “ T h e c o m p a r a t i v e about the composition and have refused to remit to reports on the develop- ba si s i s n o t t h e L ag o s who the recovery agents the coffers of the Federal ment, the minister said budget as the consider- are, but the funds belongGovernment. the matter was not about able parameter, but the ing to the Nigerian masses He noted that since the percentage to be given to amount due for the recov- must be recovered for the signing of Deep Offshore the recovery agency, but of ery which in the circum- government to carry out and Inland Basin Production patriotic desire to get back stance is approximately more development projSharing Contracts Act CAP to the country the revenue $62,190,679,793.00 as at ects for the benefits of the ...urge FG to release funds to FERMA D3 Law of the Federation of it deserves. He noted that December 2018,” he said. teeming populace who for rehabilitation of federal roads Nigeria 2004 (as amended) the 5 percent proposed H e a r g u e d t h a t brought the government and include cash and non2019 for oil exploration in success contingent fee was “ w h e n y o u c o n v e r t into power and whose JAMES KWEN, Abuja cash items that flow through deep offshore and inland an unprecedented reduc- $62,190,679,793 into naira, interest the Federal Govhe House of Rep- formal channels such as basins, the Federal Govern- tion from what it used to it will give you an amount ernment stands firms to resentatives has electronic wire, or through ment was to get more shares be during the past admin- more than N20 trillion”. m a n d a t e d t h e informal channels, such of the oil revenue which the istration.

“By virtue of Section Committees on as money or goods carried Continues on page 38 Diaspora, Banking and Cur- across borders. rency, National Planning and He said the House also Economic Development to noted that the World Bank interface with the Nigerians estimated that global remitin the Diaspora Commission, tances grew by 10 percent the Central Bank of Nigeria, from $633 billion in 2017 to money transfer operators $689 billion in 2018, with and other stakeholders to in- developing countries retechnology guru, Ekeh’s story dated major investments in Muhammadu Buhari has apJumoke Akiyode-Lawanson proved the conferment of the real estate, banking, trans- is one of many firsts and a se- vestigate the actual amount ceiving 77 percent or $528 liko Dangote, presiNational Productivity Order of port, textiles, oil and gas. The ries of landmark achievements of remittances in the last billion of the total inflows. dent of Dangote Merit award on the shortlisted company employs more than in his chosen field of ICT. He three years and report back The House had earlier Group, and Tony recipients in recognition of 11,000 people and is the larg- holds the national honour within four weeks for further urged the Federal GovernElumelu, chairman, their high productivity, hard est industrial conglomerate in of Officer of the Order of the legislative action. ment to direct the Minister This resolution was of Finance and Office of the Federal Republic (OFR) and United Bank of Africa plc, West Africa. work and excellence. are among 25 Nigerian busiElumelu is one of the most was honoured as an Icon of made following the adop- Accountant General of the The nominees will be conness leaders nominated by ferred with the National Pro- recognised names in Corpo- Hope by former President tion of a motion on ‘Need Federation to release funds the Federal Government (FG) ductivity Order of Merit award rate Nigeria. The economist, Olusegun Obasanjo in 2001 to Ascertain Nigeria in Di- to the Federal Roads Mainfor the prestigious National at a high-profile ceremony entrepreneur and philanthro- for his sustained pioneering aspora Remittances and tenance Agency (FERMA) its Impact of the Nation’s to commence rehabilitation Productivity Order of Merit scheduled for Thursday, No- pist is also chairman of Heirs efforts in the area of ICT. Otudeko, apart from being Economy’ sponsored Tolu- of federal roads in the six (NPOM) award. vember 28 at the NAF Confer- Holdings, Transcorp, and Also nominated are Leo ence Centre and Suites, Kado, founder, The Tony Elumelu founder and chairman of the lope Akande-Sadipe (APC, geopolitical zones immediStan Ekeh, group chairman, Abuja. The event is expected Foundation. He holds the Honeywell Group, also serves Osun) during plenary on ately before December 2019 Zinox Technologies, and Oba to be chaired by President national honours of the Com- as chair of FBN Holdings and Tuesday. festive season.

Akande-Sadipe said the Otudeko, chairman of HoneyBuhari. The National Produc- mander of the Order of the founder of the Oba Otudeko The House also mandatHouse noted that remit- ed the Committees on FERwell Group. tivity Order of Merit Award is Niger (CON) and Member of Foundation.

Other Nigerians on the tances by Nigerians repre- MA and Legislative CompliChris Ngige, minister of an award of honour and dig- the Order of the Federal Reshortlist for include Olanre- sent household incomes ance to ensure compliance labour and employment, nity instituted by the Federal public (MFR). disclosed this in a letter he Ekeh, a serial digital entre- waju Adigun Fagbohun, vice and investments from for- and report back within two Government to recognise hard personally signed and comwork and excellence among preneur, has remained in the chancellor, Lagos State Uni- eign economies arising weeks for further legislative municated to all prospective forefront of the democratisa- versity (LASU), Ishaq Oloyede, mainly from the temporary action. deserving Nigerians. recipients.

Dangote, Africa’s richest tion of technology in Nigeria registrar, Joint Admission and or permanent movement of •Continues online at The letter dated November man, has built a business and beyond for the past three Matriculation Board, among people to those economies www.businessday.ng 18, 2019 noted that President empire that has accommo- decades. Described as Africa’s others.

$63bn debt: AGF asks international oil companies to pay up

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Reps to probe remittances by Diaspora Nigerians in the last 3 years

Dangote, Elumelu, Otudeko, 22 others shortlisted for National Productivity Merit award

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Eleemosynary economics hurts SMEs Small Business handbook

Emeka Osuji

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et’s look at the role which freebees could play in shaping the conduct of economic agents, especially those operating on the fringes of the economy. We have noted elsewhere in this column that on the average, SMEs in Nigeria do not invest significantly in capacity building.

And that is understandable. You cannot give what you do not have. They do not have the funding capacity to build capacity nor do they generally understand the essence, especially in a system that has no place for merit; where unregistered companies get jobs denied to registered ones. The need for a better appreciation of the importance of training and development in the sector should however continue to be canvassed.

Contrary to what appears to be the conventional wisdom, which projects finance as the leading handicap of the sector, there is evidence that the bulk of their problems come from the lack of technical capacity occasioned by lack of interest in learning and knowledge plus poor financial base (Capital). The importance of learning becomes amplified when we understand how innovation comes about and the role it plays in the transformation of economies. Nor shall we ignore how new product development and processes improvement fuel enterprise prosperity.

Clearly, our SMEs are getting spoilt by the freebees flowing from many public and private institutions. The Enterprise Development Centre of Pan Atlantic University is in the forefront of this together with some banks and even churches. I

am among many professionals and entrepreneurs speaking in one of such free seminars for SMEs, running for a whole week and sponsored by my church. Free.

Many entities now bend over backwards to encourage learning in the SME sector, which is good. While no effort should be spared in promoting a vibrant SME sector in Nigeria, we should begin to demand some form of accountability from operators. To whom much is given….

We have seen from recent activities of various private, public and even multilateral institutions that we practice what may be termed eleemosynary economics towards certain persons and institutions. The problem with eleemosynary or charity economics is that it tends to assume strongly that the charity activity would be a temporary phenomenon. Unfortunately, this is not what we find. Rather than be a shortterm activity, charity often becomes self-propelling, giving rise to further demand for charity. As a result, when we practice eleemosynary economics towards one entity, we tend to expect or even compel it to also extend such charity to others down the line. Thus, we find that though charity may begin at home but nobody seems to know where it will end.

The good thing about history is that it saves one the trouble of learning from one’s own experience, which may be very painful. That is why it is lack of wisdom to take history lightly. Our experience with eleemosynary economics is extensive and varied. However, it was put on full display during the days of the then National Electric Power Authority (NEPA). The acronym, NEPA, which was often freely and openly translated as Never Expect Power Always, was probably the most inefficient Social Overhead Capital investment Nigeria ever made. It became the precursor of the current weak electricity distribution companies (Discos) that have at best failed Nigerians and at worst extended their waiting time for stable power supply, thereby deferring development.

It is eleemosynary economics that has

kept us subsidizing all manner of inefficiencies and corruption. It has been encouraged by the seemingly inexhaustible and relatively disproportionate resources available to the federal government, which encourages it to dump money at problems, often without prior study or proper understanding of the challenges entailed. NEPA was a classic case of this practice gone overboard. It was therefore not surprising that NEPA also freely mediated this charity economics to consumers of electricity, such that when it fails to do so consumers, on their own, extended the charity to themselves by refusing to pay bills for energy consumed or consuming it illegally. The fact that charity mentality dies hard is evidenced by the current electricity distribution companies’ disregard for or aversion to effective revenue collection, epitomised by their reluctance to meter consumers.

This eleemosynary inheritance is behind the lingering inability of the Discos to deliver on the conditions or reason for their birth – stable power supply.

In relation to the SMEs, charity economics is very much at play. As recent as 2014, a study by Veselin Kuntchev, Rita Ramalho, Jorge Rodríguez-Meza and Judy Yang, of the World Bank and the International Bank for Reconstruction and Development, showed that labour productivity may hold the answer to the key question of which companies are likely to be bugged down by lack of access to finance. According to the study, high performance SMEs, measured by their labour productivity are less likely to be financially constrained than those with less productive labour forces. Additionally, it suggests that access to credit is positively related to labour productivity.

Need we say more about the importance of human capital in SMEs? Productivity improvement should be the new mantra for our development.

This is an important finding because it indicates that the enterprises that are likely to be more constrained by finance are those with low labour productivity challenges. It follows therefore that these institutions are the ones that will

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We must continue to find ways to improve the lot of our entrepreneurs who are already beleaguered by environmental challenges.

The part SMEs play as agents of the private sector in its role as the engine of growth is always to be appreciated

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

We all pay for it eventually (2)

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remember hearing a story of when my dad and mum, on invitation, visited the University of Ibadan around the time the NYSC scheme was introduced in the country.

My father, who was the permanent secretary at the federal cabinet office, heading those who pioneered the scheme, was carefully and with much pride in his achievement delivering his well-prepared speech. Suddenly, all hell broke loose as the students went on a rampage, in protest of the highly unpopular scheme. I can’t help but chuckle to myself every time the picture of my parents in their best regalia scampering for their dear life flashes past my mind. It makes me sound wicked abi? I know, sorry.

With the farce we called elections recently in Bayelsa and Kogi states, our political leaders continue to teach the average Nigerian that you must get what you desire at all cost. Force is the name of the game and the end justifies the means. I must confess that there are far too many reasons why I don’t feel particularly proud to call myself a Nigerian at this moment in time.

The thought that we now live in a country where a governor who has apparently failed to pay civil servant’s salaries for almost 39 months can be voted in to continue office for another 4 years, particularly grieves me. I just don’t get it.

This absurdity presents us with a classic case of culprits of bad behaviour, not facing any direct consequences for their failures but instead catalysing by their actions, a series of immeasurable dire consequences for the society they live in.

So, what do you expect? The ordinary man also resorts to doing the same in his own little way whenever he gets the chance. The sad thing is, in the end, we all pay for it. Trust is lost,

almost irreparably in both the rule of law and in those employed to protect its sanctity. The next thing I’m about to say is where the whole election saga becomes somewhat weird.

El Rufai, a highly cerebral gentleman, whose courage to speak the truth has always commanded my respect and admiration and who undoubtedly has proved himself to be one of the best performing among the current crop of governors, didn’t see the irony in allegedly going down on his knees to beg the good people of Kogi to vote for a governor who hasn’t paid his government workers for over 3 years? How do you explain that?

Students of Machiavelli will no doubt identify how his peculiar principles on power seem to be playing out before our very eyes, here in Nigeria. It was he who famously said, “it is necessary for a prince wishing to hold his own (power) to know how to do wrong.” This philosophical position advanced in his book, The Prince, has since continued to make Niccolo Machiavelli a reference point when it comes to the ruthless use of power. He was the first to outrightly divorce ethics from politics saying there was no place for ethical behaviour in the art of politics. This may explain to a great extent why a performing governor who sees the need for him to do that which makes the lives of the people of his state more meaningful would beg people badly governed by their own governor to still go ahead and vote for him.

The end game is for the party to retain political power at all cost as that’s all that matters.

Machiavelli too was known to be resolute in his position that the end justifies the means. However, something which escapes many who may know a little about his submission on power

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but which is actually very significant, is that he didn’t believe in tyranny serving the selfish interest of the ruler. Power, whether used or abused he insisted must ultimately benefit the people. And that’s where we see a clear departure between him and our political rulers. Our people have proved themselves time and time again to have far fewer noble intentions.

There is an ethical theory, propounded by Immanuel Kant, which says an act is morally right if it satisfies duty. In other words, what makes it right is that it’s a duty to man met and not whether the consequences are desirable or not. This he called the Categorical Imperative because it’s a must.

So, whether the consequences are immediately beneficial to the agent or not is immaterial.

It’s believed that if everyone does this, it would ultimately benefit all. To Kant, all humans must be seen as inherently worthy of respect and dignity which made him go further to say that it was morally wrong to treat any human being only as a means to an end. We must all be accorded the respect of an end ourselves. I make mention of this because there is a school of thought which believes the legal system emanated from moral theories and that Kant’s ethical theory that no one should ever be used only as a means to a selfish end actually forms the basis of what we now refer to as human rights.

We are all moral agents therefore we all have inherent dignity as human beings. A wider teaching of this in Nigeria certainly wouldn’t go amiss. Maybe, just maybe if our leaders, both political and otherwise, had inculcated this mindset as adolescents, things might have turned out very different for our nation. In politics, the electorate, and in the corporate world,

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seek and focus on finance as their main problem. Meanwhile, the problem is low productivity. In the same vein, throwing money into such enterprises may not change their fate, since that would be like applying the wrong medicine to an ailment. The funding institutions, like the Bank of Industry and Development Bank, should devise new ways of requiring productivity improvement strategies as part of their support requirements. We have to learn by doing. What you do not practice you cannot internalise.

The key issue therefore is to boost productivity, and there is a consensus that productivity is a function of many factors including training and the general work environment. Of these two, the easier to tackle is training, as the work environment may be a complex factor, which include infrastructure outside the domain of the operators. So, SME operators should get themselves trained for improved productivity and better access to finance. The market being awash with on-lending facilities has crowded out the efforts of SMEs at improving themselves.

While it is important to sustain support to the sector, we must be reminded that there is no free lunch, even in Freetown.

We must continue to find ways to improve the lot of our entrepreneurs who are already beleaguered by environmental challenges. The part SMEs play as agents of the private sector in its role as the engine of growth is always to be appreciated. However, we cannot allow them to get hooked on the deadly nectar of eleemosynary economics. If we do, we should expect the same result as we found in the power sector – failure to innovate and improve. Perhaps, some accountability criteria, especially in human capital development, as part of the financing and development strategy for the SME sector, may improve help.

Taken largely from my book, “Entrepreneurship and Small Business Development” just publicly presented.

Character Matters with Daps

Dapo Akande the subordinates, wouldn’t be treated purely as tools to serve the interest of the supposed leader. In place of utopian altruism which is seldom achieved, enlightened self-interest, which Kant incidentally didn’t frown upon would be allowed to take centre stage, leading to infinitely better economic, infrastructural and general societal progress. So, using others to achieve your objective as long as it benefits them too, according to Kant is morally acceptable.

Fact is, no one rich or poor, influential or seemingly insignificant, can ever be completely immune to the consequences of a barely functioning society. And a society where power for its own sake appears to be the focus and those who wield the power are rarely held accountable for poor performance or bad behaviour can never function well. At the end of the day, we all pay for it in one way or the other. Now, that’s the gospel truth.

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

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Nigerian policymakers are impoverishing Nigerians Olanrewaju Rufai

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t is often expected that public policies should be formulated in the best interest of a nation’s citizens as well as the sustained and sustainable growth of a nation; and not for the personal aggrandizement of policymakers nor as a conduit for corruption and waste of scarce resources. Sadly, this has hardly been the case in recent times in Nigeria.

Otherwise, how does one explain the myriad of policies whose effects on Nigerians and the Nigerian nation have been all but positive?

Take for instance, the recent closure of the nation’s land borders. When the Nigerian government announced the closure of the country’s land borders to all goods a few weeks ago, the decision was severely criticized by economic experts. Nevertheless, the Buhari administration justified the decision as a tactic to stem the influx of smuggled goods from neighbouring countries.

In reality however, the effects of the border closure have been damaging.

Since the announcement of the border closure, the nation’s inflation rate has been on an upward trajectory. Already, basic commodities including food,

transportation etc. have become more expensive, with the severest effects suffered by the nation’s poor. This does not bode well for a nation which was only recently adjudged the poverty capital of the world. Furthermore, the border closure has also had severe effects on local production as factories and traders have struggled to import key raw materials and have had to devise alternative routes for their exports.

That the closure of the nation’s land borders has not boded well for the Nigerian populace and economy is not in doubt, yet the nation’s policymakers have bizarrely doubled down on this policy.

Another inexplicable policy which has had far reaching consequences is the Central Bank of Nigeria (CBN)’s policy on the exchange rate of the Naira to other currencies. Following a slump in global oil prices in 2015 which depleted public finances and dried up the nation’s dollar supplies, there were wide expectations that the Naira would be devalued. A devaluation of the Naira in 2015 would have allowed the CBN design policies which could have laid the foundation for future sustainable growth. Nevertheless, the CBN and President Buhari resisted calls by experts to devalue the Naira but instead undertook numerous measures to maintain the impression of a strong exchange rate to the continued detriment of the nation’s economy.

Basically, by implementing a monetary policy geared towards maintaining an artificially strong Naira, the nation

has found itself in an unpalatable but totally preventable economic situation characterized by mass exodus of foreign direct investments, low GDP growth and high inflation. Given that the nation is also straining under the weight of its debt which currently stands at over N24 trillion, it is unconscionable that economic administrators are systemically rendering the nation insolvent by spending massive sums just to maintain a high value of the Naira. Such policy defies economic logic and is not rooted in any proven economic theory, and despite disastrous effects on the economy, the CBN has inexplicably failed to backtrack.

Another similar policy which has been of no significant value to Nigerians is the nation’s continuous subsidy of petroleum products. While this might be controversial, the reality is that fuel subsidy, which was initially introduced as a stop-gap measure to cushion rising international oil prices in the seventies, has mainly been a subsidy for middle-class and rich Nigerians and hardly for the poor, for whom they were designed.

In fact, rather than being a ‘dividend of democracy’, Nigeria’s fuel subsidy policy has been a constant source of multiple corruption scandals, while consuming a significant chunk of the nation’s resources. Moreover, the fuel subsidy policy has been a highly inefficient and expensive way of promoting equality and tackling poverty in Nigeria. For instance, Nigeria spent over N1.4 trillion on petroleum subsidies in

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Nigerian policymakers have over the years formulated policies which have had nothing but disastrous consequences for Nigerians and the Nigerian nation.

Nevertheless, not only do these policies remain in place, similar disastrous policies are formulated and implemented constantly

the past year, a figure more than double the proposed 2018 budgetary allocation to education. This is illogical in a nation with one of every five of the world’s outof-school children.

Overall, Nigerian policymakers have over the years formulated policies which have had nothing but disastrous consequences for Nigerians and the Nigerian nation. Nevertheless, not only do these policies remain in place, similar disastrous policies are formulated and implemented constantly.

Sadly, every policy has a cost – financial and otherwise, and these costs are borne by the Nigerian masses. For instance, the billions of Naira wasted on the subsidy of petroleum products could have been invested in the nation’s education of its youth or the provision of health care facilities. Also, rather than strive to maintain a high value of the Naira, the CBN could have focused its effort on sounder monetary policies which could have lifted the nation out of the economic quagmire it has found itself.

Policymakers ought to formulate policies in the best interest of public good and for the sustained growth of the nation. Unfortunately, this has not been the case in Nigeria, and perhaps explains why the nation has remained stuck in the hamster wheel of underdevelopment for decades.

Rufai holds a first class degree in Management and Masters degrees in Management and Finance. He is a finance and strategy analyst and can be found on Twitter @LanreRufai_.

The senate’s anti-social media bill is an act of inter-generational warfare

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enator Mohammed Sani Musa’s antisocial media bill now making its way through Nigeria’s upper legislative chamber in the Senate is worse than a throwback to the worst years of Nigeria’s experience of military rule. It is a hubristic act of inter-generational warfare that must be resisted and defeated. A Senate comprising essentially an analogue generation, whose average age exceeds Nigeria’s life expectancy by about 30 percent, seeks to liquidate the only means of expression left for a digital generation whose analogue rulers have afflicted with little choice and no hope.

A cross-party effort, this bill is evidence of how elite consensus in Nigeria, wherever it happens, is both self-serving and irresponsible. Rather than start a war that it cannot win, the Senate should be well advised to withdraw this bill and seek to influence digital content through good leadership and positive example.

It can still do so.

On 20 November 2019, in Nigeria’s upper legislative chamber, the Senate, the “Protection from Internet Falsehoods and Manipulation and Other Related Matters Bill”, successfully navigated second reading. The Senate has now committed the bill to its Committee on Judiciary, Human Rights and Legal Matters.

The sponsor of the Bill is Senator Mohammed Sani Musa, of the ruling All Progressives Congress (APC) representing Niger East in the north-central. In the debate on the Senate floor, Senator Sani Musa received ample support from Elisha Abbo, the woman-battering, young Senator of the opposition Peoples’ Democratic Party (PDP), representing Adamawa North in north-east Nigeria, and Abba Moro, also from the PDP representing Benue South in the north-central. In his last major public service role as Interior Minister, Moro presided over the culpable homicides involving the death of many young Nigerians in a phantom hire for jobs in the Immigration Service in March 2014,

for which he proved incapable of empathy or compassion. Also supporting the Bill is Gobir Ibrahim Abdullahi of the APC, representing Sokoto East in north-west Nigeria.

Senator Sani Musa’s bill is not the only one on the books of the Senate at the moment seeking to eviscerate social media and free expression in Nigeria. His colleague from the neighbouring Niger North Senatorial District, Aliyu Sai Abdullahi, Baraden Borgu, is also single-mindedly pushing “A Bill for an Act to Provide for the Prohibition of Hate Speeches (sic) and for Other Related Matters.” This latter bill proposes to create an “Independent National Commission for the Prohibition of Hate Speeches (sic)”. In its earlier incarnation, Senator Sabi’s bill also included a provision for death penalty for what he calls “hate speeches” (sic). That will be a subject for another day.

Senator Sani Musa’s anti-social media bill is the latest in various attempts by successive administrations in Nigeria to social media their exclusive mouthpiece or, if they fail, shut it down. Previous attempts in 2014 and 2017 failed.

Senator Sani Musa’s bill is an awful cut-andpaste job. In every essential respect, the bill is a bad copy of Singapore’s Protection from Online Falsehoods and Manipulation Act No. 18 of 2019, signed into law on 3 June, which entered into force on 2 October 2019. It comprises 36 sections, just a little over half of the 62 sections found in its Singaporean ancestor. Characteristic of Nigerian politicians, however, the author of the bill and his distinguished senatorial supporters are not interested in copying Singapore’s experience of decent and effective government.

Rather, they want to extinguish in Nigerians any capacity to complain about a pattern of misrule that ensures that we can never dream of the kinds of things that the people of Singapore take for granted.

But this Bill is worse than merely a bad import from Singapore in a season when Nigeria’s

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borders are closed. In essentially seeking to re-enact the Public Officers (Protection Against False Accusation) Decree, Number 4 of 1984, it clearly returns Nigeria to an era that is both forgettable and best forgotten.

Issued by the military in 1984, Decree No. 4 purported to punish any false report about the government, (then as now, headed by Muhammadu Buhari), which brought or was intended to bring officials of the military government into disrepute or ridicule. It substantially drew upon the Public Officers (Protection Against False Accusation) Decree No. 11 of 1976, which also purported to punish allegedly false reports linking the then military regime or any of its officers with corruption or malfeasance. Decree No. 11 of 1976 was designed to separate the military regime of Murtala Mohammed/Olusegun Obasanjo from the scandal-ridden last years of its predecessor, the regime of Yakubu Gowon, whom they overthrew in July 1979. In one essential respect, however, Decree No. 4 of 1984 was different from and harsher than Decree No. 11 of 1976 – the truth was no defence under Decree No. 4.

This is where Senator Sani Musa’s bill takes its inspiration from. Contrary to its title, the bill is far from solely or even substantially about Internet falsehoods and manipulation. The bill proposes two broad categories of offences.

First, there are offences for which truth may be a defence, such as an offence of doing an “act in or outside Nigeria in order to transmit in Nigeria a statement knowing or having reason to believe that it is a false statement of fact.” Against a charge for this offence, for instance, it may be a defence to plead that the statement in question was, in fact, true or reasonably believed to be true. The number of possible offences for which this defence may be available under the bill is, however, miniscule.

Second, and very importantly, for most of the offences under Senator Sani Musa’s bill, just as with Decree No. 4, truth is no defence.

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CHIDI ODINKALU Quite clearly, it is impossible to legislate against falsehood by sending truth into exile.

Like Decree No. 4, this bill creates nebulous crimes in open-ended, subjective language, such as statements “likely to be prejudicial to the security of Nigeria or any part thereof.”

The crime of making a statement “prejudicial to public health, public safety, public tranquillity or public finance” can be used, for instance, to jail any citizen for criticising a thieving politician.

The bill also proposes to criminalise statements that are likely to “influence the outcome of an election to any office”. This provision effectively would prohibit digital campaigns by opposition parties because all campaign statements made digitally are designed to influence election outcomes. It’s a charter for a singleparty state and an end to political pluralism.

The clincher is the provision that seeks to punish statements likely to “diminish public confidence in the performance of any duty or function of, or in the exercise of any power by the government.” Under this, anyone who calls out the government when it is not performing is liable to be jailed for a felony.

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

Chidi Odinkalu works with the Open Society Foundations and writes in his personal capacity.

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Wednesday 27 November 2019

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Avoid mono-product dead hole in push on agriculture

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ice. Rice. Rice.

Yet more rice.

Rice, again. Rice.

Rice. Rice.

If you believe the federal government, rice has become the most critical item on the agenda of Nigeria. It determines policies, influences the development finance role of the Central Bank of Nigeria, occupies 80 percent of the resources and time of the Nigeria Customs Service and is the centre point of our trade relations.

Rice. Rice. Rice and more rice.

A s Ni g e r i a p u s h e s t o strengthen its agriculture value chain in diversification efforts, official activities have focused on rice. The FG and the Central Bank of Nigeria have been at the centre of this overwhelming emphasis on rice.

It is a disturbing déjà vu.

We got here because Nigeria for more than 40 years focused only on petroleum

out of its abundance of minerals, agricultural and other resources. We are walking the same path now with agriculture. Rice is the preferred and only commodity in the lexicon of officialdom.

Nigeria has a vibrant bouquet of commodities in the agriculture value chain that deserve attention. We must go beyond rice. We must bring to fruition all the programmes and efforts at a holistic appreciation and boost of Nigerian agriculture.

Initiatives to promote agriculture include the Anchor Borrowers Program (ABP), the Presidential Fertilizer Initiative (PFI), the Youth Lab, the Presidential Economic Diversification Initiative (PEDI), and the Food Security Council.

Despite these, the statistics in exports remain poor. Agricultural exports account for less than two per cent of the country’s total exports. Yet agriculture contributes a significant 25 percent to total GDP.

In 2016, total agriculture exports stood at N60.7 billion or 0.7 percent of total exports for the period. In 2017, total agricultural exports grew by 180.7 percent over the previous year to close at N170.4 billion, and it accounted for 1.3 percent of total exports.

By 2018, agriculture exports increased by 77 percent over 2017 to close at N302.3 billion and accounted for 1.6 percent of total exports.

Sesame seeds, cashew nuts, fermented cocoa beans and superior quality raw cocoa beans – with a combined total export value of N210.2 billion accounted for 69.5 percent of total agriculture exports in 2018. Others are frozen shrimp and prawns, natural cocoa butter and soya beans.

There is palm oil. Nigeria has a comparative advantage in its production. Palm oil is one of the crops with an extensive value chain.

Many other crops exist for the country to promote to have

a balanced basket. They include wheat, maize, cotton, soybeans and cassava. Many of these crops, such as cassava or cotton, have significant industrial applications.

The obsession with rice is at variance with its contributions.

Rice has become a significant staple like bread. The emphasis on bread led the country into a wheat trap and issues with importation and dependence.

One of the primary goals of the emphasis on rice is said to be the need to conserve forex.

It would seem sensible to do more to promote the crops that earn forex for the country. Why not do so to earn more and thus serve as a substitute.

We invite the Federal Ministry of Agriculture, Trade and National Planning as well as the Central Bank of Nigeria to take a few steps back, assess and reflect, then draw up a more holistic road map for agriculture promotion. A single crop emphasis will not yield the results that we seek.

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Absence of originality: Fulcrum of our national crisis and underdevelopment

Franklin Ngwu

I

n one of the numerous cases he handled, Niki Tobi, one of our good legal minds and scholar, a former Justice of the Supreme Court of Nigeria stated as follows: “English is English; Nigerian is Nigerian. The English are English; so also, the Nigerians are Nigerians.

Theirs are theirs. Ours are ours. Theirs are not ours; ours are not theirs”. While I will return to this germane perception of our society, it is important to note that before Niki Tobi was appointed to the Supreme Court in 2002, he was Deputy Vice Chancellor and previously, Dean Faculty of Law, University of Maiduguri. Without doubt, he was a man of immense knowledge and experience.

Intrigued by Niki Tobi’s views and deeply troubled by our inherent national crisis and underdevelopment, I have over these years examined the root causes of our problems and all the findings point to one direction– absence of originality in every sphere of national and formal governance system (our inability to discern and learn from Niki Tobi). Almost every aspect of our life particularly governance and regulatory mechanisms are copied from somewhere without proper concern on the suitability and amenability to our contextual peculiarities.

While our formal legal system that

dictate almost all aspects of our life was adopted from United Kingdom, our presidential system of governance is from United States of America. It is the same challenge with our economic development plans such as visions 2010, 2020 and ERGP that are all heavily influenced from Malaysia and other countries. In our education sector, there seems to be an inherent confusion with most schools bragging that they run a British curriculum. It is even said that the Hate Speech bill like many other bills was copied from somewhere. If we are not begging China to build airports, we are either asking Russia to revive Ajaokuta and USA or Canada to help with our power sector. With such lack of originality, that sense of patriotic ownership and responsibility required to move the country forward will be lacking or limited.

Of all the adoptions that we have been doing, the ones with the highest negative impacts on our socioeconomic and political development are the formal legal system and the presidential governance approach.

While some people will argue that there is nothing wrong with our formal legal system or its adoption, the best way to check if it is working is from key governance indicators such as rule of law, regulatory quality and government effectiveness.

With the highest score that can be achieved being positive (+) 2.5 and the lowest negative (-) 2.5, Nigeria has since 1996 when the measurements started consistently achieved an average of negative (-) 1.2 for rule of law. It the same bad outcome for regulatory quality and government effectiveness. While we scored on average about negative (-)0.80 for regulatory quality, it is about negative (-) 1.20 for government effectiveness.

‘

Of all the adoptions that we have been doing, the ones with the highest negative impacts on our socio-economic and political development are the formal legal system and the presidential governance approach

To buttress our bad performance, it might be helpful to better understand the meaning of rule of law, regulatory quality and government effectiveness.

According to World Bank, while, Rule of law reflects perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence; Regulatory quality reflects perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development.

For government effectiveness, it reflects perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies. It the same poor outcomes for other indicators of good governance such as Voice and Accountability, Political Stability and Absence of Violence, and Control of Corruption.

If our poor outcomes have been consistent for over 23 years when the ranking started, there is no doubt that something is fundamentally wrong with our legal system which is central to all the indicators. It is also the reason why insurance and mortgage penetrations are less than 2 percent respectively, our capital market shallow and only about 34 million Nigerians using the formal banking sector in a country of about 200 million people.

As the effectiveness of a legal system can be ascertained from the extent to which the legal system is understood, accepted and internalized to engen-

der compliance, our performance in the above key governance variables clearly shows that our adopted formal legal system is fundamentally flawed and unsuitable for our context.

As we are projected to have exponential population growth reaching about 410million people by 2050, it is imperative that we rethink some fundamental factors if we are serious to contend the emerging economic and social crisis. Moving 100 million Nigerians out of extreme poverty as PMB promises to pursue will not be achieved if key fundamental reforms are not urgently pursued. First is the imperative to clearly define our national priorities and carefully map out home grown strategies that can be used to pursue and achieve them. It will include a detailed economic development plan thoroughly developed

by Nigerians and suitable for Nigeria.

Second is the need for urgent legal reforms that will ensure that the contents, structure and administration of our justice system is in line with our norms and values as Nigerians and not that of United Kingdom. Third is the unavoidable imperative for devolution of powers from the federal government to the sub-nationals (states and local governments). This will allow the sub-national to rethink the kind of society they want and craft their respective sub-national development agendas. Fourth is to carefully rethink our nursery to university educational systems and formulate Nigerian curriculums that are suitable for national and sub-national development aspirations.

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

That bill on sexual harassment in Nigerian tertiary institutions: A compelling perspective

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o topic has evoked so much passion and I dare say emotion in the last few weeks in the Nigerian media, whether of the social or the orthodox hue than the unveiled tape of an under-cover journalist from the BBC involving some lecturers in Nigeria and Ghana in compromised positions with their “preys”.

Before then, a similar incident had taken place in one of the universities in Nigeria but the leakage was done by the actual victim – a post graduate female student.

No sooner the video went viral than many Nigerians went hysterical as if that was the first time, they were hearing such. A lot of hypotheses were propounded on how to curb or indeed eliminate completely such incidents from our campuses. These range from outright dismissal and prosecution of the culprits to castration. While the maelstrom was on, senators in the eighth national assembly reminded Nigerians that they had indeed passed a bill on sexual harassment in Nigerian varsities but could not secure presidential assent for it to become law. They therefore called for a revisit of the bill. From the presidential corner, a statement was issued to the effect that a re-consideration would be done if a fresh bill is passed by the current national assembly, provided it conforms to standards.

While this article was under incubation, news broke out that a fresh bill has indeed been represented by the former sponsor, who is currently the deputy senate president. The former bill provided amongst others, a minimum of a five-year jail term for any lecturer found guilty but the current one has upped the

ante; prescribing fourteen years. As noble as the intentions may be, the questions that have been agitating the minds of some discerning Nigerians, not least this writer: will the bill once passed take care of sexual harassments in Nigeria? Why isolate a fraction of the society?

Obviously, the bill cannot be a panacea to sexual harassment in the wider society. To think otherwise will be playing the ostrich.

Let’s engage in a simple postulation here: assuming the bill when passed into law succeeds in eliminating completely the issue of sexual harassments in Nigerian varsities, what happens to the “protected potential victims” when they’re unleashed to the society after graduation? Where is the protection for them when they are searching for jobs? And when they get the jobs and are working? Or are we saying they’d be shielded from sexual harassments in work places forever?

It is a well-known fact that no field of human endeavour in Nigeria is today free of this epidemic of sexual harassment. Even the most unthinkable sector is afflicted. Who can ever suspect that the Judiciary known for its conservatism and a bastion of law and order in toto would ever be mentioned in the web?

But the shocker came to me and I suspect many Nigerians when a senior lawyer, Tunji Abayomi, regaled viewers in a national television (TVC) sometime in 2017 or thereabout of what some female lawyers including married ones seeking judiciary appointments as magistrates go through in the hands of some randy senior members of the bench. The sordid affair, according to him, doesn’t end with their appointments. It continues thereafter ad

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infinitum!

Or have we forgotten so soon the familiar tales in the banking sector? Can we count how many female bankers have been harassed internally by their superiors or unleashed outside to predators in the name of deposit drives?

What of the usual suspect – the Nollywood industry - where sex for roles has assumed common place that young female debutants have always been in tight corners explaining that their break-ins have been on merit devoid of any strings attached?

Is it in the hospitals? Tales of doctors/ nurses’ trysts and doctors’ inappropriate behaviours toward patients abound.

Even in the hallowed chambers of the National Assembly! Can the senators and rep members look the public in the eyes and vouch that no form of sexual harassments has been reported either between members themselves or between members and female staff working there?

To say that sexual harassment is pervasive in Nigeria is akin to sounding like a broken record. It is walking on all the fours! Is it in the oil and gas industry? Government ministries, departments and agencies at all tiers where uncountable petitions have been written against some senior officials sitting on the promotions of their subordinates on account of not succumbing to sexual overtures?

On the most ridiculous level, take a trip to any market in Nigeria and behold how some supposedly female customers are touched inappropriately by their male counterparts all in the guise of soliciting for their patronage.

Indeed, the list and examples are endless!

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Emeka Okolo The narrative so far has been on the male predator. However, cases abound where some females in superior positions have taken advantage of their male subordinates. Don’t such qualify as sexual harassments also?

The thrust of this piece, for avoidance of any doubt, is not that the bill is undesirable. Rather it is against its discriminatory stance. Sexual harassment is not worst in the universities if there is any description like that. It is WORST in all segments of the society. No sector can claim a higher moral ground than the other in this unfortunate vice sucking away at the moral fabric of the nation. It is therefore my humble submission that the bill be made all encompassing if there is any serious intention of tackling the scourge. Any reported and proven case of any sexual harassment anywhere will attract the same attention and punishment. To do otherwise will be tantamount to applying knee jerk solution to an issue that requires a holistic approach for the sanity of the nation.

Dr. Okolo is a chartered stockbroker and management consultant based in Lagos.

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Wednesday 27 November 2019

BUSINESS DAY

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Nigerian consumers squeezed as onion prices rises 171% Josephine Okojie

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rices of onions, one of the most commonly consumed vegetable in the country has surged by 171 perecent as scarcity hits markets across the country.

Seasonality and outbreak of diseases of the crop have reduced Nigeria’s stock level of dried onion bulbs which has forced prices to rise in November.

“A 50kg bag of onions which was sold at an average of N14,000 in September, now sells for N38,000, indicating a 171percent rise in price” Musa Idris a trader at Mile 12 market told BusinessDay. “Prices of onions are usually high during November through December because that is when farmers cultivate the crop,” Idris said.

He also attributed the further rise in prices to disease outbreak in some onion farms in Kebbi state – a top grower of the crop.

“We travelled to Kebbi to buy onions and we could not get enough volumes to buy.

Farmers told us that their farms were attacked by a disease they called Zazzalau and Raba,” he added.

According to the Food and

Agricultural Organisation (FAO), Nigeria cultivated 996,519 metric tons of dry onions and 248,072 of green onions in 2017.

Africa’s most populous country is not among the top 20 growers of the crop, the FAO 2017 data shows.

“We experienced glut in August through September before the prices suddenly

picked up,” Mohammed Sule a farmer in Kaduna said.

“We cannot even store our onions because of inadequate storage facilities and this makes us record huge post-harvest losses,” Sule said.

He added that onion f a r m e r s a re u na b l e t o improve their livelihoods owing to the huge postharvest

losses they record each year as billions of naira are lost in the process.

He called on the Federal Government to support farmers in the area of storage and processing of the crop to increase shelf life.

Nigeria records huge postharvest losses owing to inadequate store facilities and poor road network for

L-R: Per Christensen, Consul-General of Denmark in Lagos; Ayo Otuyalo, director, Prime Atlantic Limited; Michael Moller, area sales manager, FOSS; Jesper Kamp, Danish Ambassador to Nigeria; Bode Balogun, deputy managing director, Prime Atlantic Global Instruments and Paul Erikstrup, Minister Counsellor for food and agriculture, Denmark during the launch of a partnership between Prime Atlantic Global Instruments and FOSS as the exclusive distributor of FOSS products and provider of after-sales services in Nigeria and West Africa.

HOMEF calls for stiffer laws to regulate GMOs …Enugu creates database for farmers Regis Anukwuoji, Enugu

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e a l t h o f Mother Earth (HOMEF) a nongovernmental organisation has called for stiffer laws to regulate the products and use of genetically modified organisms (GMOs) in the country.

Nnimmo Bassey, director of HOMEF who stated this recently at a workshop organised for farmers with t h e t h e m e ‘ P ro m o t i n g Nigeria’s Biosafety, Dialogue with farmers on Food and farmers system’ explained that it was imperative to d i a l o gu e w i t h f a r m e r s on issues affecting food and farming systems in the country with a focus on GMOs and their implications.

“GMO is an organism created in a laboratory by taking genes from one species and forcing them into an entirely unrelated

vegetables which experts say is costing the country $9billion loss yearly.

Onions can be cultivated across the entire state but mainly grown in Kano, Kaduna, Jigawa, Kebbi, S o ko t o, Pl at e au , a n d Bauchi.

It takes an average of 3 months to crop any variety of onions. Nigeria grows the

species to achieve a new trait or characteristics which is not possible in nature,” said Bassey who was represented

by Joyce Ebebeinwe.

“The foreign genes may come from bacteria, viruses, insects, animals or even humans,” he said.

“S ome of the issues raised here and so far what we heard from the farmer was that they prefer that their indigenous verities are preserved, that more is done to ensure that food can be processed properly and our roads are good enough to link farms to market,” he added.

The introduction and acceptance of GMOs in Nigeria, he pointed out would bring a lot of negative effects on the rural farmers unknown to them and also to the consumers of such products.

“We have seen GMOs how they would affect the people how they would make farming a thing for just cooperation and big www.businessday.ng

companies and that would affect the livelihood of farmers a lot.”

According to the director, smallholder farmers can grow enough food to feed the country’s large population but most of it is wasted because of inadequate storage and processing facilities in the country.

“G M O s a r e n o t t h e solution to the problems, they are more like treating the symptoms of a problem instead of the causes of the problem,” he said.

He, therefore, called on the government of Nigeria to pay attention to the concerns and challenges that these products would pose to Nigeria as a country and Nigerians as a people.

“We call for a review o f Na t i o n a l B i o s a f e t y Management Agency act to ensure that it can protect the interest of the people and not the interest of the cooperation’s because of the health implications of these GMO products.

“A lot of researchers have linked GMOs with immune disorders, liver and kidney diseases among others.

Most GMOs are produced with chemicals and one of the chemicals is linked to cancer,” he added.

Also during the workshop, the Enugu state government says it will commence the creation of a database for farmers in the seventeen local government areas of the state to enable them get assistance directly through the state ministry of agriculture.

Mathew Idu, the state commissioner for agriculture, announced that the state government has paid N244 million counterpart funds to AgroProcessing, Productivity, Enhancement and Lively hood Support (APPEALS).

He said the government intended to assist farmers in the state who have identified their farm and not portfolio farmers to get some grants from APPEALS.

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two major types of onions – bulb and spring.

The bulb onion is much more popular in the country and has three major varieties, red, white and green, while the spring onion is mainly used for salads and fried rice.

It offers excellent health benefits and a lucrative venture for any aspiring farmer.

Regular consumption of onions helps to reduce the risk of cancers and lower blood sugar levels, as it contains allyl propyl disulfide that helps to reduce the glucose levels by increasing the amount of insulin as well as aid digestion.

Globally, Indian – largest grower of the crop has placed a ban on export of the crop as drought and heavy monsoon rains have reduced the country’s stock level, forcing prices up.

To keep prices in check, India announced that it will import over 100,000 metric tons of onions. Opportunity Nigerian growers would have leveraged.

Experts say this is because farmers do not cultivate the crop all year round and inadequate storage facility has made the country missout from the opportunity to export to India and Bangladesh.

NDE trains 50 youths on poultry, crop production VICTORIA NNAKAIKE, Lokoja

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he National Directorate of Employment (NDE) has commenced the training of another set of 50 unemployed youths under her Sustainable Agricultural Development Training Programme in Kogi state.

T h e t ra i n e e s u n d e r the three months skills acquisition program will undergo practical and theoretical training in poultry and crop production.

Mallam Zakari Abubakar, Kogi State coordinator of NDE, in his address at the opening ceremony reiterated the desire of NDE to create a job by impacting marketable skills in the youths.

He identified agriculture as one of those areas that @Businessdayng

have high potentials in job creation and urged the trainees to take their training with all the seriousness it deserved.

A l s o, Na si r L a d e n Argungo, directorgeneral of NDE, who was represented by Shade Uche in his keynote address hinted that the Federal Government is committed to reducing poverty through job creation, adding that various success recorded

by NDE since he assumed office is aimed at curbing the negative vices prevailing among the youths.

Abdulsalam Musa, who responded on behalf of the beneficiaries thanked NDE and the Federal Government for the opportunity given to them to learn skills that will improve their living conditions and promised to make judicious use of the opportunity.

Wednesday 27 November 2019

BUSINESS DAY

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Seek knowledge to leverage opportunities in agribusiness, expert tells youths Josephine Okojie

E

xperts in the agricultural sector have urged youths in the country to seek knowledgedriven information to enable them to identify and leverage opportunities in the agricultural sector.

The experts who spoke at the Lagos Business School/ Agrafair Agribusiness Youth Summit event held recently in Lagos said that Nigeria will only grow its agribusiness sector when youths begin to recognise that problems are opportunities to create wealth.

According to them, equipping youths with the needed knowledge to transform the sector will help boost government efforts at shifting the focus of youths from white-collar jobs to agribusiness as well as reduce rural-urban migration.

“It is ver y difficult for the youth currently to identify opportunities in the agricultural sector because they are not engaged in a knowledge-driven

information environment where they can pick a thing or two that will drive whatever they already have,” said Ike Ke l i ku m e, a g r i b u s i n e s s programme director, LBS. “Youths need to grab the knowledge and information

needed to address problems and close gaps because the gaps are the opportunities they need to leverage,” said Kelikume.

He noted that to sensitise youths and make the sector attractive to them, LBS runs a program to help people see

Osinowo Olowolabi, managing director of Kartlos Farms Limited 3(l); Temitope Oluwo of Nigerian Agribusiness Group 5(r) and Njideka Anyanwu, co-convener of Agribusiness Youth Summit 3(r) during the Lagos Business School/Agrafair Agribusiness Youth Summit event held in Lagos recently.

How to invest in moringa tea bag processing factory Olumakinde Oni

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oringa is a food, medicine, and forage crop. Mor inga cultivation is gaining popularity in Nigeria in recent times.

Many Nigerians are now establishing Moringa plantations and consuming a lot of the products.

The health benefits of moringa are limitless. Moringa has a strong antioxidant effective against prostate and skin cancers.

It is an anti-tumor and an anti-aging substance. It modulates anemia, high blood pressure, diabetes, high serum or blood cholesterol, thyroid, liver and kidney problems.

It also has strong antiinflammator y proper ties ameliorating rheumatism, joint pains, arthritis, edema, and lupus. It is effective against digestive disorders including colitis, diarrhea, flatulence (gas, ulcer or gastritis.

It is an anti-bacterial, anti-microbial and anti-viral agent, it is effective against urinary tract infection, typhoid, Syphilis, dental carries and toothaches, fungus, thrush, common cold, Epstein-Barr virus, Herpes – simplex , HIV AIDS, warts parasites,

challenges as opportunities.

“We run a program here which sensitises the mindset of youths to see that every challenge in the sector is an investment opportunity,” he further said.

“For youths to be able to

worms, schistosomes, and trypanosomes.

It is a detoxifying agent, it is effective against snake and scorpion bites. With all the health benefits of Moringa listed above, a Moringa tea produced in Nigeria, well packaged with aggressive marketing strategies will sell like hot cake.

A moringa-tea production factor y is nothing but a goldmine that will turn around the fortunes of the promoters.

Technical Information Mor inga plantations are springing up in Nigeria and it has been well established that Nigeria has the potentials to grow millions of hectares of Moringa, hence the raw materials supply can never pose any problem.

Not only this, the awareness of the usefulness of moringa is gaining ground every day.

Moringa leaves are plucked, washed, sterilized and well dried. The dried leaves are later milled into powdery form and now flavoured.

There are different flavours such as strawberry, vanilla, ginger, and others. The next step is to package in permeable tea bags.

Tea bags are now stuffed in small packs. Attractive and good packaging is a pre-requisite to www.businessday.ng

market acceptability. Seriousminded investors can be put through the technicality.

Financial Implication A sum of N8.75 million will be required to set up this project.

The breakdown is given below: • Pre-Investments - 250, 000 • Accommodation - N2, 500,000 • Plant and Machinery.

N3, 000,000 • Utilities - 2,000,000 • Take-off Working Capital 1,000,000 Total N8, 750,000

========== A well-packaged feasibility report/Business plan is a prerequisite to project take-off and finance sourcing. This can be provided for serious-minded investors.

Profitability The project has the potential to generate a turnover of N300 million on annual bases with a minimum pre-tax profit of N130 million already computed.

This is another income and job-generating opportunity that has far-reaching positive effects on the Nigerian Economy.

Serious-minded investors can be assisted in the establishment o f t h i s p ro j e c t. C o nt a c t author on 08023058045 or olumakindeoni2@yahoo.com and nucleusventuresnigltd@ yahoo.com

play in the space they must be able to seek knowledge, test and drive it,” he added.

He attributed youth restiveness in the country to the high rate of idle people, stressing that it will have a devastating effect on the economy if the country fails to address the issue.

He noted that agribusiness is the only sector currently doing well to grow the Nigerian economy, thus, making it imperative to sensitise people and push them into the space, he says.

Also speaking during the event, Osinowo Olowolabi, managing director of Kartlos Farms Limited said there are lots of opportunities in the sector that youths can tap from.

“There are lots of opportunities across the value change from processing, packaging through to logistics,” Olowolabi said.

“Currently, our agriculture is still involved in a lot of drudgery and this would make it unattractive to the youths. The average Nigerian youths want to be involved in a profession where they see others there

making it financially and that involves innovation,” he said.

He urged the government to provide the needed infrastructures that would help reduce production cost, thereby making agribusiness profitable to impact farmers’ livelihoods.

Similarly, Njideka Anyanwu, co-convener of Agribusiness Youth Summit said: “We are here basically to bridge the knowledge gaps so that youths can effectively engage themselves in agribusiness.”

“Most youths believe that agribusiness is the same thing as agriculture and it is basically for the poor and old people.

But we are changing all that now so that they can have a mind shift that opportunities abound in the sector they can leverage to create wealth,” she added.

She noted that the government has been doing a lot in ensuring that the sector becomes more attractive to the youths through various support programmes, stressing that the youth just needs the vital knowledge to leverage the opportunities.

Lagos to revive songhai agric youth empowerment scheme

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he Lagos state government has expressed its readiness and determination to complete all abandoned projects at the Songhai Model of the Agricultural Youth Empowerment Scheme (Agric Yes) in Badagry area of the State.

According to a statement, P r i n c e Gb o l a ha n L awa l , commissioner of Agriculture disclosed this when he led a delegation from the state to inspect the facility.

L aw a l n o t e d t hat t h e Songhai Model of the Youth Empowerment Scheme is one of the major empowerment programmes in the agricultural sector for youths being implemented by the state.

He noted upon assumption of office in July, he commissioned the development of a roadmap with the theme ‘A Sustainable Inclusive Growth Strategy with the Citizens at the Core’ adding that one of the outcomes of that roadmap is the need to empower no fewer than 15,000 youths and women within the next four years.

He recalled that the Songhai model was a product of a collaboration between Lagos and the Songhai Regional Centre, Porto Novo, Benin Republic adding that

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the programme is geared towards encouraging organic farming and using simple biological methods to enhance production outputs.

“The model is based on new approaches and farming systems that rely heavily on the combined inputs from local experiences, indigenous technology, business communities, and research institutions.

The result is a robust, zero waste, integrated agroallied model promoting rural growth through training, technology adaptation and strong business and commercialization strategy,” Lawal explained.

The commissioner pointed out that the objectives of the model include the need to train and create employment for youths, therefore, providing improved livelihood a n d re d u c e r u ra l - u r b a n migration as well as attain food sufficiency.

“Some of the objectives of the model are to reduce dependency on other states to supply the food and fiber to be consumed by Lagosians; to complement the productivity of the ageing farmers which could not sustain or move the state to a comfortable level of selfsufficiency in food production and to provide competitive @Businessdayng

inputs/raw materials for the Agro-Industry,” Lawal averred.

He listed other objectives as providing feedstock for renewable energy supply as it would be designed to become an energy source instead of an energy sink and to provide new environmental products and services- carbon sequestration, agroforestry, biodiversity, native seeds and germ plasma, medical plants among others.

He added that the entrepreneurial thinking associated with the Songhai project will help farmers to explore many of the state‘s under-developed and unders o l d a g r i c u l t u ra l s e c t o r products stressing that the Songhai project is in tandem with the themes Developmental Agenda of Making Lagos a 21st century economy as it is about reducing bio-waste and using renewable resources to generate power and using modern technologies to drive agricultural development and creating employment.

He said the Songha model will promote a responsible farming system that supports the transfer of new technologies and access to markets just as it will also encourage farmers to become fully self-sufficient in energy by using sustainable resources.

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Wednesday 27 November 2019

BUSINESS DAY

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Wednesday 27 November 2019

COMPANIES & MARKETS

BUSINESS DAY

17

Company news analysis insight

FIXED INCOME

Fixed-income market activity dips as investors stay off on low yields …stock market records the most transaction in 6 months OLUWASEGUN OLAKOYENIKAN

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nvestors were apathetic to participate in Nigeria’s fixed income market but showed renewed interest at the equities end following a decline in real yields on the country’s short-term debts below zero.

The number of trades carried out at the treasury bills segment of the market dropped to 369 last week compared to 591 transactions executed in the preceding week, reflecting a reduced activity of market participants.

“The slowdown in terms of volume witnessed at the Nigerian T-Bills market shows investors are no longer playing aggressively in the market,” Akintunde Sulaiman, an investment analyst at Lagos-based Greenwich Trust Limited, told BusinessDay. “This comes as no surprise as the government looks to lower borrowing cost to bridge its finances going into the full year.”

Similarly, the bond mar-

ket recorded a decline in market activity as 529 trades were recorded against 602 witnessed a week earlier, while the number of trades in the OMO market moderated to 1,213 from 2,119 recorded in the prior week after about one-quarter of the market players has been cut off.

Bu t w h i l e i nve st o r s showed reluctance in the fixed income space last week, transactions at the Nigerian Stock Exchange (NSE) bolstered as investors executed 21,849 trades.

This is the largest number of weekly deals recorded at the local bourse since May 2019.

Consequently, the Nigerian stocks sustained their gains for the third straight week by 0.52 percent to close at 26,991.42 points.

Nigeria’s central bank recently rolled out some unorthodox policies which impacted the country’s financial market. Notable among the policies is the restriction of the local nonbank players from participating in the OMO market, a move preceding a collapse

in the interest rates on NTBills to single digits for the time since 2016, and fuelling a hunt for lucrative opportunities outside the fixed income market.

Although the average yield on benchmark bills in the Nigerian T-Bills secondary market fell by 2.84 percentage points on a week-on-week basis to settle at 8.38 percent last week, performance at the other segments of the market was bearish.

In the OMO market where big investors such

as the pension fund managers and the insurance companies were barred, the average rate on benchmark bills trended higher by 0.04 percentage point to close at 12.68 percent. This is despite CBN’s efforts to provide liquidity support at the secondary end of the market.

A similar bearish sentiment was also witnessed at the local bond market, as the average yield on benchmark bonds increased by 0.02 percentage point during the week to 12.40 percent.

Meanwhile, the CBN is expected to conduct a primary market NT-Bills auction Wednesday, November 27 to rollover N150.60 billion of maturing bills, while a rollover auction worth N352.70 billion will be floated at the OMO market on Thursday, November 28.

“We anticipate the CBN will further depress rates in the auction albeit in a softer tide as a result of lingering liquidity with little investible securities for market players to place their funds,” according to Sulaiman.

TECHNOLOGY

Uber stripped of license in London, its biggest European market …as shares shed 1.22 percent OLUFIKAYO OWOEYE

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ransport regulatory authority in London, Transpor t for London (TfL), has stripped ride-hailing platform, Uber of its license in London, its biggest European market, after authorities found that more than 14,000 trips were taken with

drivers who had faked their identity on the firm’s app.

TfL is a local government body responsible for the transport system in London.

The city transport regulator cited a “pattern of failures” that “placed passenger safety and security at risk.”

Uber has said it would appeal and would continue to operate pending the outcome, provided it launched

official proceedings within 21 days.

This sanction is a huge blow to the ride-sharing firm, which has worked to improve its reputation as a friend rather than foe to regulators under current CEO Dara Khosrowshah. The company posted a $1.16 billion loss in the latest quarter with Khosrowshahi forecast this month it wouldn’t make

L-R: Albert Iloh, sales consultant, Union Systems Limited; Chris Uwaje, Africa chair for IEEE-World Forum on Internet of Things (IoTs), co-founder and former president of ISPON, Chuks Onyebuchi, CEO, Union Systems Limited, recipient of the ISPON Best Software Entrepreneur of the year Award and Ngozi Ilondu, head marketing, Union Systems Limited at the Annual National IT Merit Award (NITMA) organized by the Nigeria Computer Society held in Lagos.

a profit until 2021.

Tfl had first suspended Uber’s license in 2017, citing concerns with the company’s approach to safety.

Following that initial move, Uber had twice been granted a temporary license to continue operating in the city.

In Nigeria, issue of safety has been a major concern for riders who often complain on the attitude of their

drivers. Uber says a range of new safety features have been introduced to its app in the past two years.

Earlier this month, it launched a system which automatically checks on the well-being of drivers and passengers when a journey is interrupted by a long stop.

It also unveiled a discrimination reporting button on its app, and col-

laborated with the AA to produce a safety video to educate drivers on topics such as reading the road, speed, space management and how to drop off and pick up passengers safely.

There are around 45,000 Uber drivers in London.

Shares of Uber were down 1.22percent at $29.22 in early morning trading on Monday.

L-R: Cole Doyle, acting chief executive officer; Ayoshila Kuforiji-Kehinde, company secretary, and Osahon Idemudia, nonexecutive director, representing the chairman, all of Global Spectrum Energy Services Plc, at the company’s annual general meeting in Lagos, yesterday. Pic by Pius Okeosisi

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BUSINESS DAY

COMPANIES&MARKETS

Business Event

TECHNOLOGY

LeadWey launches first ever pro-tech lab for real estate stakeholders IFEOMA OKEKE

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s forward-thinking innovators and disruptors constantly seeking to re-define the narrative in the real estate industry in Nigeria, LandWey launches the 1st ever Pro-Tech Lab for all real estate stakeholders.

This Prop-Tech Lab will provide the most vibrant, innovative tools, resources, think-tank and technical know-how that will prove to be indispensable for every real estate player in the 21st century.

Speaking on the closed door briefing of LandWey’s Pro-Tech lab, Olawale Ayila-

ra, Founder/CEO of Landwey stated: “Tech and all of its accompanying mechanisms is here to stay. We cannot be seen to be working against its ideals and entrance, neither can we afford to be caught in the quagmire of obsoleteness.

“We move along with the changing times; hence the birth of Prop-Tech Lab Nigeria, we realize that tech is showing its hands in virtually every sector, including real estate. There has never been a better time to jump on tech-driven methodologies and operations, especially now as tech begins to gain ground in our sector, we have to move along its fine

lines of development.

“Prop-tech Lab will prove to be the opium of 21st century real estate business, in scope, in processes, as storehouse of information, knowhow, industry innovation and market stats, study, projections, forecasts, basically everything a real estate player needs to do business smartly and tech-like in the times in which we live.”

The Prop-Tech Lab Nigeria, opening January 10, 2020, will most assuredly provide the much-needed boost in terms of practical information, innovative platforms and tools direly needed in the real estate sector in Nigeria.

L-R: Bunmi Oke, CEO, Ladybird Communications Limited; Lampe Omoyele, CEO, Nitro 121; Ifeoma Okoye, sustainability and community affairs manager, Nigerian Bottling Company (NBC) Limited, and Olatomiwa Akande, corporate communications manager, NBC Limited, at the presentation of Best Company in Education Award to Nigerian Bottling Company, at the 13th edition of social enterprise report awards (SERAS) CSR award ceremony in Lagos.

Over 30 companies to compete for the prestigious REDA awards IFEOMA OKEKE

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ver 30 companies are to compete for the 2019 Prestigious Real Estate Developers Award organised by the Publishers of the Real World Magazine-Giant Edge Global Business Limited.

The event was successfully premiered in December 2018 at the Four Point by Sheraton and the 2nd Edition will be held at 4pm on Sunday 8th December 2019 at the Civic Center, Ozumba mbadiwe, Victoria Island.

Companies nominated for this year’s event in-

cludes: Red Bricks- Amen Estate, Orangeline, Megamound Investment, Haven Homes, Pazino ECC, First Homes, Mixta, Sujimoto, Nedcomoaks, Adron, Revolutionplus, including other allied companies in supporting the industry like, DM Meyer, CAP, Berger, BUA Cement, Dangote Cement, CMDesign, Midas Touch Interiors, among others.

The award nominees have been carefully and thoroughly selected by the expert award panel.

The awards will recognize ingenuity, resourcefulness and self-reliance. It

will also highlight people and orgsnisations that have made a difference in the industry by emphasizing innovative business practices and sharing successful initiative to foster further advancement locally and internationally.

Special Guest of Honor is Kadri Obafemi Hamzat, the Lagos State Deputy Governor.

A Keynote address will be delivered by Babatunde Gbadamosi, the Chairman Redbrick Homes of Amen Estate, on the theme The Sustainability of the Real Estate Industry in the competitive Market.

L-R: Wasiu Ola Abiola, head of media, digital and sponsorship, NB Plc; Sarah Agha, portfolio manager, national premium brands, NB Plc; Idowu Adeshina, regional business manager, NB Plc Abeokuta; Onyebuchi Nwangwu, brand manager, Star Lager, and Omotude Adenusi, portfolio manager, mainstream brands, NB Plc, at the launch of the new STAR Lager label.

L-R: Adebola Williams, co-founder, RED | For Africa; Bogolo Kenewendo, minister of trade and investment, Botswana; Debo Ogundoyin, speaker of the Oyo State House of Assembly; Bukonla Adebakin, team lead, The Future Project; Owen Omogiafo, MD, Transcorp Hotels, at The Future Awards Africa 2019

Nicky Okoye (m), founder/chief strategist, Nicky Okoye Organisation (NOO), flanked by Vice Sampson (l), and Mike Goldstein (r), representing Institutions in strategic partnership with NOO on its global capital strategy road show in Washington DC, United States

L-R: Niyi Anifowoshe, head of sales, North West, Globacom; Hassan Ahmed, representative of Galadima of Fagge; Ummukhairi Badamasi, winner of tricycle in the ongoing ‘Recharge and Win Big’ promo by Globacom; Tijani Dan Wawu, Mai Unguwa of Fagge; Sani Danja, Kannywood star, and Yakubu Baba, Globacom’s regional manager, North West 1, after the delivery of the star prize to the tricycle winner at her home in Fagge, Kano City.

Wednesday 27 November 2019

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cityfile R-L: Hargovind Daliyet, head of retail operations, SPAR Nigeria; Ayorinde Bayode, customer; Toheeb Owoyemi, floor supervisor, SPAR Iluepju outlet; Chioma Egwuasi, cashier, SPAR Ilupeju outlet, and Suresh Babu, store manager, SPAR Ilupeju outlet, at the opening of the 2019 Black Friday Sales in Lagos

NPDC donates 150 tricycles to host communities IDRIS UMAR MOMOH, Benin

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Makinde declares emergency on waste management in Oyo REMI FEYISIPO, Ibadan

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overnor Seyi Makinde has declared a state of emergency on waste management in Oyo State.

The governor, who spoke at an extraordinary meeting at the Government House, Ibadan, Monday, said that waste management has become a matter of emergency and every person, including political appointees, permanent secretaries and the workforce must key into.

A statement from Taiwo Adisa, the chief press secretary to Makinde, quoted the governor as saying that poor waste management could have wider implications on the state of health of individuals in the state, adding that if care was not taken, the health situation of the people may worsen.

He said: “I am sure that most of you must have gone through our state and have noticed that as far as our solid waste management is concerned, we are all living in the midst of filth basically. I have listened to the commissioner for environment and chairman of the Solid Waste Management Authority and I am not satisfied with what I have got.

“Apart from the waste being an eyesore, it also has wider implications as far as health is concerned, because when you have a filthy environment, all kinds of health challenges will come in. So, what has to be done is, we need to declare an emergency on our solid waste management. So, it is a big issue for all of us and we have to take the bull by the horn. We have to take leadership.

“What I have asked to be done is to, first of all, mo-

bilise all resources possible and we will all be out to do the clean-up and supervise it. We have trucks and have mobilised workers and we will take off.”

He warned that no one should misconstrue the exercise for showmanship, adding that a serious issue like waste disposal has to be taken with all seriousness. Makinde also stated that some elements within the state have specialised in littering the streets with refuse, adding that the state government would stop at nothing to overwhelm their antics.

“This is not for showmanship but a serious challenge that we have. If we don’t do it, I can bet that a few weeks down the line, we will see the impact at our hospitals. Though it’s a short term thing, we just have to do it. I have also heard that there are sabo-

teurs who neatly arrange thrash on the median. Well, I wish them luck because we now have security personnel involved and anyone caught importing waste to Oyo State will be dealt with according to our environmental laws.

“I believe, from our projection, that within the next three to four weeks, we should have a permanent solution in place, a model that will be sustainable and that will also be full-proof for the saboteurs. Seriously, I honestly don’t understand why somebody will want to do this kind of thing to his or her own state.

“Some people said they have set some traps. Why are they setting traps? We are going to spend money, we will spend resources and spend a serious level of time to do all of these to move the state forward.

A’Ibom assures monarchs of partnership for sustainable peace ANIEFIOK UDONQUAK, Uyo

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kwa Ibom government has assured traditional rulers of continuous partnership towards sustaining the peace and accelerating development in the state.

The state governor, Udom Emmanuel gave the assurance during the coronation of the clan head of Oniong in Onna local government area, Etebom Samuel Efik who had earlier been issued with a certificate of recognition by the government.

Emmanuel, who was

represented by his commissioner of works, Ephraim Inyangeyen said the government was committed to strengthening the partnership as part of efforts to enthrone peace in communities across the state.

“We hold the traditional rulers in high esteem; with their support and contributions, we believe that peace will continue to reign in the local government areas of the state,’’ he said.

The governor, who described the new clan head as an accomplished professional, called on the people to rally around him.

Speaking also, Onofiok www.businessday.ng

Luke, a member of the House of Representatives and former speaker, Akwa Ibom State House of Assembly, said the coronation of the clan head was a testament to his courage, dedication and values that define the industrious nature of the Oniong people.

Luke, who was one of the dignitaries honoured with a chieftaincy title during the ceremony, urged the new clan head to pursue peace and prosperity in the area.

The clan head, Efik, a lawyer said the administration of Emmanuel has brought about positive changes in the state.

“The time has come when the elite of Akwa Ibom State must complement the efforts of government by stepping up the ‘Dakkada’ (stand up) campaign among our people,’’ he said. He called on the people to move away from archaic beliefs and practices, “some of which we have held unto as tradition and customs under the delusion that we have been doing the bidding of the gods or our ancestors.’’

He thanked the governor for finding him worthy to be recognised as the clan of Oniong and promised to offer himself for the service of his people.

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s part of efforts to economically empower the locals, the management of the Nigerian Petroleum Development Company (NPDC) has donated 150 tricycles to OML 40 host communities in Delta State.

The subsidiary of Nigerian National Petroleum Corporation (NNPC) had also recently donated educational materials to some communities in Edo State.

The latest donation to the Delta communities, according to NPDC, is in partnership with Elcrest joint venture.

Mansur Sambo, managing director of the company, represented by Noble Imabibo, acting manager, community relations, NPDC Warri field office, said the initiative was geared towards ameliorating the hardship faced by the people of the communities.

Sambo assured that the company would continue to leverage on the prevailing peaceful atmosphere in

the area to further improve its corporate social responsibility (CSR) and bring development to the host communities.

“This gesture is also geared towards curbing youth restiveness. NPDC is a friend to the communities where it operates, we are partners in progress and we share common bond towards sustaining the existing mutual relationship,” he said.

Sambo, however, urged the beneficiaries to utilise the empowerment judiciously and to the best of their ability to better their lots and that of their families.

He also advised them to eschew all forms of violence, radicalism and actions capable of creating unrest. He assured that the tricycles would be shared equitably among the communities.

The manager, community relations and security, Elcrest JV, Frances Omanruaye commended the community for maintaining the peace.

Ebonyi denies setting up group to fight IPOB except the Neighborhood Watch. He described the bonyi State gov- information as strange ernment has de- and urged the people to n i e d s e t t i n g a disregard it. v ig i la nte g rou p “This is a strange story known as Bakassi Boys to as far as the state is condestabilise the activities of cerned. There is no secuthe proscribed Indigenous rity outfit that can be esPeople of Biafra (IPOB) in tablished in this state withthe state. out the knowledge of the There have been ru- state government. There is mours that allegedly spear- nothing like Bakassi Boys headed by a group, The or ISAKABA, IPOB, MASBiafra Restoration Voice SOB or whatever you call (TBRV ), that Governor them. People may stay in David Umahi of Ebonyi their homes based on their State commissioned the agitations and say they are said security group to de- IPOB or MASSOB or they stabilise IPOB. are this or that but they are According to TBRV on not known in Ebonyi State its facebook,” Governor because their activities are David Umahi has just com- against the law of the land. missioned this group of “What we have which is men called “Bakassi Boys” constitutionally approved in Ebonyi, their job and by our House of Assembly mission is to attack IPOB is the state Neighbourhood members and so on”.

Wa t c h a n d e v e r y b o d y The group alleged that knows their activities. It is the inauguration of the recognised worldwide and Bakassi Boys came after security agencies in the a purported meeting with state know their activities the state government and and that is the only thing a former governor of the we know in the state and state at the Government we have as a security outfit.

House in Abakaliki Their conducts have limiBut dispersing the ru- tations; there are certain m ou r o n Mo n d ay , t h e extents they don’t go. They commissioner for inter- give tips to police, their nal security and boarder activities do not cross this peace, Stanley Emegha level and they are purely said the state has no other to checkmate pocket of internal security outfit crimes,” said Emegha.

NKECHINYERE OGINYI, Abakaliki

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@Businessdayng

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Wednesday 27 November 2019

BUSINESS DAY

Wednesday 27 November 2019

BUSINESS DAY

21

Feature

How KOPETECH is helping start up entrepreneurs achieve their dreams IFEOMA OKEKE

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ithout any iota of doubt, unemployment is among the biggest challenges facing Nigeria as a nation. Most Nigerians after spending four to seven years at higher institution still roam the streets searching and seeking for jobs just to put food on the table and they still end up disappointed.

In order to bridge this gap, the Chairman and Chief Executive Officer of NedcomOaks Group established the Kennedy Okonkwo Programme for Tech Entrepreneurs (KOPETECH), a platform designed to empower Entrepreneurs with skills and means to grow their startups into vibrant businesses.

Five start up entrepreneurs including blind Umezinwa Maryjane were part of the beneficiaries of just concluded Kennedy Okonkwo Programme for Tech Entrepreneurs (KOPETECH).

Nigerians especially the residents of Awka, the capital of Anambra State, will not forget in a hurry the just concluded Kennedy Okonkwo Programme for Tech Entrepreneurs (KOPETECH) that took place at Oma Hall. The event kick started with a wonderful violin concert by young Yvonne, a law student from Nnamdi Azikiwe University (NAU).

The programme provides beneficiaries with financial, infrastructural and institutional support to start and grow their businesses into successful ventures. NedcomOaks is the parent company of one of the Nigeria’s most successful Real Estate companies.

Participants at the KOPETECH Anambra were 18, Blessing Ijoma (Hour Spent), Umezinwa Maryjane (Emjay Bar Soap), Onuigbo John (Artec Hubs Nigeria), Eze Victor (Blood Zone), Campus Hub, Alawale Seyi (Seal Richards), Isaac Emeti ( Ice Integrated), Abukubu Destiny (Rapport Technologies), Philipa Joseph, Osohon David (Ark Dealer), Chinedu Anyanwu (St Charles Medic-Diagnostics), Nwabueze Henry (Techsol Integrated Solutions Limited), Maduka Samuel and among other companies.

Speaking during the event, Kennedy Okonkwo, the founder of KOPTECH and the MD/CEO of Nedcom Group, disclosed that the ultimate measure of a person is the way he bears up under misfortune.

“There is this general conception that it is fortune that leads to success, and that to make it in life, we need a little bit of luck here and there. That may well be true for some people somewhere else, but it wasn’t the case for me, and I can tell you for free that it isn’t the case for most genuinely successful Nigerians. It will also not be the case for you. I’ll explain.”

According to Okonkwo, “By the virtue of the fact that you were born in this society, where hardly anything works, nothing is handed to you and everything seems programmed to put you down; you are born into misfortune. If you were actually lucky in life, you would have had

a Swiss father and an American mother who would have given birth to you in a fancy New York hospital sent you to an exclusive preparatory school in Washington and paid for you to attend Harvard or MIT. And after school, you would have become a top shot in Google or Microsoft or running a big Private Equity firm that controls billions of dollars.”

Instead, Okonkwo said, you are in this problem-stuffed country, toiling day and night, battling for every single paycheck like your life depends on it, and owning almost nothing but your hard-earned skills and sun-baked ideas. Friends, I tell you from the bottom of my heart, it is not fortune that will lead you to success; it is how you face up to misfortunes and triumph. The road I passed through to get here today was littered with misfortune.

Sharing his sad life story with the KOPETECH participants, Okonkwo said: “I lost my father at 17. We had no house of our own. Money was hard to come by, and I had to scrape my way through the university. When I left school, I discovered that what I thought was hardship was just child’s play. Whether it was finding a job, building my own business and starting a family, every step of the way was filled with challenges. Whenever I struggled through one of these challenges, the next one was already there, ready to knock me down again.

“And they knocked me down really bad, but I learnt early that it is not about how often one gets knocked down, but how quickly he gets up again. So, losing my dad as a boy made me grow quickly into a man.

Not having a house of our own as a child inspired me to build homes for families. And the concrete jungles that I had to go through to build my business is the reason I’m passionate about helping young people, like the ones gathered here today, sprout their own successful enterprises.

“There is nothing like the liberating power of enterprise. When you build a successful business, you are not just freeing yourself from the clutches of poverty and basic wants, you are empowering others to achieve their own freedom. So, today is really about unleashing that creativity, innovation and talent that abounds in young entrepreneurs who are buzzing to build successful businesses, Okonkwo added.

He said success, for him, is found, not just in how we grow our own businesses and increase our personal wealth but in how passionately and effectively we uplift others and enrich lives and this is basically what our fathers meant when they spoke about the virtue of teaching the hungry how to fish.

He said these young people here are hungry, but not the type we go through every day, adding that they are hungry for success, to make a difference and to build something great, not just for themselves but for our society.

“I recognize their hunger because I was once where they are now. In fact, in many ways, I’m still as hungry as they are. The difference is that my hunger is to empower young people to succeed, and that is why we are creating KOPE. We

Participants at the event

Founder KOPETECH Dr Kennedy Okonkwo presenting $5,000 cheque to the winner Ijoma after the event

CEO Emjay Soap Mary Jane (blind) receiving her N1, 000,000 grants from KOPETECH Founder Dr Kennedy Okonkwo

want to help those who are hungry and determined about achieving great things succeed. Our aim is to expand the doors of opportunity, to break down the walls that inhibit access, and to ensure that the challenges we had to crawl through tentwenty years ago, our young people can race past at the snap of a finger.

“However, I must emphasize that there is a difference between righteous hunger for success and greed. Such hunger drives us to be the best versions of ourselves every day, to work hard to create value, to think smart and creatively to impact people’s lives, and to earn our living in a man-

ner that is right, honest, fair and doesn’t compromise the dignity and integrity our labour.

Greed drives us in the opposite direction. It corrupts our mind with get-rich-quick “Ego Mgbute” syndrome. Greed makes us want to cheat, to exploit, to steal, oftentimes from the very people trying to help us.

“Please do not go the way of greed; no truly successful person in life made it by being greedy, through fraud, or by following criminal shortcuts. Not Zucekerberg, not Gates, not Coscharis, and definitely, not myself. The route to longterm success is in hard work, innovation and wholehearted commitment to value creation. And I am to promise you that if

you follow this route, we will be by your side to guide you and help you succeed, better than we ever did,” he explained.

Okonkwo said that is why with KOPETECH, they are laying everything on the table – resources, expertise, experience and networks – because young Nigerian people are the best bet that we can ever make for the future. Of course, we are starting small.

This initial stage of the Programme will see shortlisted tech start-ups get grants of up to N1million, which comes together with a free fully-furnished office space equipped with high-speed internet, and constant power supply.

The successful Tech Start-ups also get free access to HR, legal and administrative services, as well as ample time to spend on one on one mentorship with me. The platform’s plan is to guide these budding entrepreneurs to grow organically, and as they begin to bloom, we will then begin to expand our scope.

According to him, KOPETECH is laying everything on the table, resources, expertise, experience, and networks, because our young people are the best bet that we can ever make for the future. The objective of KOPE is to champion the abundant potential of Nigerian youths, especially those playing in the tech startup space. “We strongly believe that KOPE will find, nurture and help Nigeria achieve its first unicorn in the tech space.

Five participants emerged winners out of the 18 persons that participate for KOPETECH Anambra 2019. Blessing Ijoma of Hour Spent who came first after the two event won 5,000 dollars, while Umezinwa Maryjane (Emjay Bar Soap), Onuigbo John (Artec Hubs Nigeria), Eze

L-R: KOPETECH Founder Dr Kennedy Okonkwo, Justice Nnamdi Dimgba and 2019 Big Brother Housemate Frodd

Victor (Blood Zone), Campus Hub, got N1,000,000 (one million naira each.

One of the surprises at the KOPETECH Anambra was Umezinwa Maryjane who was not born blind but later lost her sight in 2009 while in secondary. She accepted her faith and moved on with her life. Maryjane, who graduated from University of Nigeria (Nsukka) passion is providing solutions to problems.

After several complain from friends about body reaction after making use of their bathing soaps, she decided to attend a cosmetology school after her NYSC in 2016, and today, she has established her own compan Emjay Bar Soap.

Speaking after winning KOPETECH N1,000,000, she said condition has never discouraged her from pursuing her dream. “I believe in ability in disability

and more so, I never allowed my challenges to weigh me down.” Disclosing how she will spend the KOPETECH money, the N1,000,000 given to me will really help me in brand packaging which was also one of the challenge i have in Emjay soap company.

One of the vital challenges Emjay Company is facing is lack of electronic machines for mass production. Emjay Bar Soap Company is a small scale company that produces bar soap for washing, laundries, kitchen utensils etc. The company is created with the intention to help give solutions in the challenges, people have in soap usage, therefore giving satisfaction to the mass market.

When the 5,000 dollars winner, Blessing Ijoma of Hour Spent, who was a graduate of Computer Science from Michael

Okpara University, was asked how she would spend the KOPETECH money, she said, “we have this short-term goal 5,000 USD will help us execute this month. It’s urgent. The 5,000 USD won is our stepping stone in achieving our long-term goal. Hour spent is a community of elite skilled talents, built into high-performing teams and powered for a resilience future.

Think of Hourspent as the most convenient way to build your remote workforce.

“We need thousands of skilled talents for a project we are planning on. We are working on putting the resources together for this. At some point, things could go south but what matters is the lesson learned, the experience and the resilient spirit needed for a comeback.”

Another participant of the KOPETECH Anambra, a 200 level student of Human Physiology at Chukwuemeka Odumegwu Ojukwu University, Onuigbo John of ArtecHubs Nigeria said “KOPETECH has lit a candle in my hands which I must not allow to go dim. Thus, I have to work round the clock to make sure I multiply impact, make profit and create a generation leading change in the Nigerian tech industry through my company. To tell you but the truth I feel overjoyed and challenged because I understand the work has just begun.

According to him, ArtecHubs Nigeria is a company that prepares young persons between the ages of seven to 18 for the fourth industrial revolution and challenges them to be job creators rather than job seekers by equipping them with the necessary IT skills; coding, robotics, local technology etc and providing support systems for their growing start-ups by incubating their ideas, helping them access funding and launching them into the market space.

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Logistics

Maritime e-Commerce

Border closure: Here’s what shippers want from government to cushion effect amaka Anagor-Ewuzie

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ince the closure of the nation’s land borders to both legitimate and illegal businesses over the increased smuggling of contraband goods such as rice, vehicles and others, importers and exporters that depend on these entry points for their businesses, have been finding it difficult to survive.

As a result, many of these shippers have either shut down due to lack of business or are presently engulfed in debt after losing their investment to sudden closure of the border by the Nigeria Customs Service (NCS) on behalf of the Federal Government.

At a recent stakeholders meeting organised by the Nigerian Shippers Council (NSC) on border closure, Ogbonnaya Gordon, former coordinator of the National Council of Managing Directors of Customs Licensed Agents, (NCMDCLA) at Seme border, who said that the port industry supports government policy on border closure, said there should have been a notice to shippers doing legitimate business at the border.

According to him, families that do business around the border is presently going through difficult times as some of these businessmen are entangled in debt such as

L-R: Jibola Ponle, representative of the Governor of Lagos State and commissioner for Establishment, Training & Pension; Amina Oyagbola, founder, WISCAR, and Hadiza Bala Usman, managing director, NPA at the 2019 Women in Successful Careers (WISCAR) Annual Leadership and Mentoring Conference in Lagos at the weekend

bank loan.

“We want government to create a window that would enable importers and exporters, whose goods are trapped at the border to evacuate the goods even if is just for one or two months,” he said.

Nasiru Salami, a Benin Republic based businessman, said Customs needs to put structure in place to enable it collect information on Nigerian bound cargoes that leave neigbouring countries to Nigeria, adding that Nigeria should not expect other countries to build security data for them.

Citing example of Bukina

Faso Customs, he said that Customs Service in Burkina pay for tracking of inbound cargoes in order to maintain and protect their revenue.

“Government needs to put proper structure in place to benefit from trade between neigbouring West African countries because these countries are building the needed infrastructure to support port operations,” he added.

On his part, Nicodemus Odolo, a trustee member of the Shippers Association of Lagos, who stated that border closure begins and ends with shippers, also solicited for government support in

cushioning the effects on shippers.

He said that Nigerian ports are too costly and that is why Nigerian billed cargoes are diverted to other neigbouring West African ports where such goods are brought into the country through the land border.

“These ports have cheaper services and that is why shippers are going there. Our number one problem is corruption.

From Benin Republic to Mile 2, we have up to 15 checkpoints and at each checkpoint, the cargo owner pays money,” he said.

According to him, if care

is not taken within the next two months, congestion may set in Nigerian ports because goods that usually pass through the border are now being routed through the ports.

“Presently, to go into the port to pick cargo, trucks queue on the road for close to two weeks and this adds cost for the shipper that loses his or her Container Deposit Charges to shipping companies,” he said.

He called on Shippers Council to ensure that shipping companies and terminal operators are made to stop charging demurrage on containers that have paid Customs duties.

Jonathan Nicol, president Shippers Association of Lagos, who noted that government need to do more for Nigerians by reducing the cost of doing business to the barest minimum, said government can make more money when the volume of cargoes coming into the country increases.

Eugene Nweke, a former president of the National Association of Government Approved Freight Forwarders (NAGAFF) stated that nobody is against the idea that government has taken the bull by the horn to protect the economy.

According to him, government does not supposed to take people by surprise, adding that people need to take a trip to Cotonou to understand the number of

trucks with goods that are on the queue to have access into Nigeria.

“Government ought to give people notice before embarking on such policy that could impoverish people. In closing the border, Nigeria also needs to take into consideration, the economic impact of the policy on people who depend on the border to survive,” he suggested.

Nweke further advised the NSC to collaborate with Customs to collate data and make such information available to the public. He said there should be harmonisation of operations in the ports to have single administrative document.

Ti m o t hy Aw o g b e m i , a representative of the Council of the Regulation of Freight Forwarders (CRFFN), who faulted the idea of closing the border without notification to the shippers, said that government must address the reason people go to the port in the neigbouring countries to do business instead of using Nigerian ports.

“Nigeria needs security revolution because the interface between shippers and security personnel along the border route has become numerous. The government must regulate our tariff within the port and gradually change the imposition of high tariff on cargo owners who works based on budget,” he added.

Apapa: CIoTA calls for development of transport infrastructure, port expansion

...Plans national summit in Abuja next week amaka Anagor-Ewuzie

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orried by the persistent traffic gridlock in and out of the Apapa port city in Lagos, the Chartered Institute of Transport Administration of Nigeria (CIoTA) has identified development of transport infrastructure that would enable the utilisation of various modes of transportation in the movement of cargoes from the seaports to the hinterland, as a lasting solution.

To the Institute, Apapa gridlock has caused the entire Apapa community untold hardship, basically due

to the concentration of over 80 percent port activities in Lagos ports.

Speaking to newsmen in Lagos at the weekend to intimate the public on the activities of the Institute towards the realisation of a viable intermodal transport in Nigeria and to announce its forthcoming national summit, Bashir Jamoh, president of CIoTA said the Institute will be pushing for the use of other ports in the southsouth region in order to decongest Lagos ports.

“The major problem we are having is the leakage of the port with the rail line. On the other hand, most of the problems Nigerian governwww.businessday.ng

ment is facing in developing transport infrastructure is funding because Nigeria is a mono-economy that only depends on oil as source of funds for the government, and the price of oil is presently unstable,” Jamoh said.

According to him, CIoTA will at the upcoming Abuja summit, look at how government can develop policies that would introduce publicprivate partnership in the development of transport infrastructure like rail system.

Citing Lekki Deep Seaport as example, Jamoh said that if Nigeria can have a rail line from the deep seaport to the hinterland or an air base because it was assumed that

a brand new airport would be built at the Lekki axis, to enable the movement of cargoes.

“In dealing with the huge cost of developing transport infrastructure, the institute would look at bringing investors that can invest and cushion the effect of the difficulty of financing transport infrastructural projects. This would help to bring relief for port users,” he said.

The CIoTA president also pointed out the need for the expansion of the ports, especially Apapa and Tin-Can Island ports to accommodate more containers, due to high volume of trade.

“Our ports, especially

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those in Lagos, are congested and there is need for expansion so that it can contain more goods. Trade is only complete when the goods reach the final destination efficiently. At the summit, we will be discussing and addressing how best we can get the needed value in the transport sector supply chain,” Jamoh said.

He further disclosed that CIoTA Nigeria is organising the 2019 National Transport Summit/Annual General Meeting with the theme, “Unlocking the Potential of Transportation for Sustainable Development,” and is scheduled to hold at the Shehu Musa Yar’Adua Cen@Businessdayng

tre, Abuja, from December 3 – 5, 2019.

“The aim of this summit is to push for policies that will enable seamless integration of the different modes of transportation in the country.

It will have an array of renowned experts, led by Doyin Salami, chairman, Presidential Economic Council, who will be making presentations on various aspects of the Nigerian transportation system and seek ways for improving it, for the good of the economy,” he said.

He further stated the need to integrate road, rail, water and air transport as none can stand on its own without the other.

Wednesday 27 November 2019

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Maritime e-Commerce

With focus on shipping devt, NISA merges factional groups amaka Anagor-Ewuzie

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etermined to build a strong force that would aid the participation of more Nigerian ship owners in the nation’s shipping business, the Nigerian Shipowners Association (NISA) has merge its two factional groups into one.

The association has also appointed a 3-man steering committee to pilot its affairs for the next six months, thereby bringing to an end, the tenure of the presidents of the two factional groups led by Niyi Labinjo and Aminu Umar, after leading their various groups for four years each.

The committee, which comprises of Paul Jegede, Tunji Brown and Taiwo Akinpelumi, were tasked with the responsibility of stabilising the association and conducting a general

election in the first quarter of 2020.

Speaking to newsmen in Lagos last week, the NISA steering committee said at an emergency meeting held on September 5, 2019, that members of the association from the two fractional

groups have resolved to reconcile and work together.

According to the committee, the executive members of the association elected in November 2014 before the division, have ceased to represent the association.

“It was unanimously

agreed by members present at the meeting that the executive committee should surrender the management of the association to the newly appointed steering committee. The steering committee has the sole responsibility to represent

L-R: Bashir Jamoh, president, Charted Institute of Transport Administration (CIoTA), with Isichei Osamgbi, chairman, Media/Publicity Sub Committee, at a Presss Conference in Lagos at the weekend, on the forthcoming National Transport Summit.

the association in all official matters until new executive members are elected,” the committee said.

According to them, NISA will continue to make progress on its aims and objectives, focused on earning industry confidence, creating jobs and ensuring that ship owners take their rightful position as major drivers and critical stakeholders in the maritime sector.

Paul Jegede, a member of the committee told newsmen that NISA members have suffered neglect as a result of the division within the association. He said that the decision to reunite will help members speak with one voice.

Jegede, who doubles as chairman of Japaul Group, said members have actually lost a lot because of the 4-year dispute, which made them not to speak with one voice.

“We would have gotten what we wanted. For in-

stance, the Cabotage Vessel Financing Fund (CVFF) has not been managed very well by the government. Although it was contributed by the shipowners but because we are not together, we are missing the opportunity to benefiting from the fund,” he said.

Jegede said that NISA is now coming together to be able to advice government better and that things will change within the next six months.

NISA formerly known as the Indigenous Shipowners Association (ISAN) later changed its name and was engulfed in internal crisis after its maiden election held on October 24, 2014.

The crisis led to the splitting of the association into two groups headed by Labinjo and Umar respectively while some members also pulled out to form a new association named Shipowners Association of Nigeria (SOAN).

Bala-Usman canvasses maximisation of opportunities in maritime sector amaka Anagor-Ewuzie

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adiza Bala Usman, managing director of the Nigerian Ports Authority (NPA), has called for sustainable efforts in maximising the opportunities inherent in the nation’s

maritime sector.

Speaking at the second edition of the Nigeria and Entrepreneurship Summit and Honors (NESH) Maritime Roundtable held in Lagos with the theme “Harnessing the Opportunities for Entrepreneurs in the Nigerian Sub Sector,” Usman said the nation’s

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maritime sector can help in poverty reduction, wealth creation, skill promotion and acquisition as well as encouragement of entrepreneurship spirit.

According to her, maritime has the potential to contribute at least 10 percent to the GDP in no distant future because Nigeria

has the biggest market in Africa.

Usman however pointed out the need to strengthen requisite skills for greater professionalism through funding and capacity building that would drive the development of maritime resources in the country.

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She stated that the NPA in collaboration with the Nigerian Railway Corporation is seeking to increase railway’s market share in cargo evacuation from the ports, adding that the NPA is also collaborating with Inland Container Depots like Kaduna to achieve swift cargo evacuation

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to the hinterlands in the north.

She called for the effective management of the nation’s Greenfield which is expected to attract Foreign Direct Investments (FDIs) and generate more revenue while enshrining the tenets of Private Public Partnership (PPP).

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Wednesday 27 November 2019

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Wednesday 27 November 2019

BUSINESS DAY

PENSION today

25

In Association With

Having a ‘will’ makes access to your pension, insurance benefits seamless –UTL boss Olufunke Aiyepola, MD/CE of UTL Trust Management Services, a trust services company, is a lawyer with passion for the work she does. With about 9 years in leadership of the company, Olufunke has redefined trustee’s management service in Nigeria with a lot of credits. In this interview, she shares her thoughts on how people can have successful estate planning. Excerpt: Give us an insight into UTL and the services you offer an institution?

TL offers corporate, public and private trust services. In the corporate trust segment, we are trustees to multiple arrangement lending facilities or syndications and our role is to create and hold the security on behalf of the Lenders or Financiers until the facilities are repaid; we are also trustees to several Employee Welfare Benefits such as Share Trusts, Profit Sharing /Bonus Schemes and Superannuation Schemes for expatriates.

For public trusts, we are trustees to several Corporate and Sub-sovereign Bonds. It is a statutory requirement to appoint trustees to public debt offers. In the public trusts space, we are also trustees to several Foundations and Endowments- our services in this instance include selecting and managing beneficiaries to scholarships from secondary to tertiary education.

For Private Trusts, we are trustees and executors to quite a number of big-ticket trust arrangements and estates in Nigeria and the Diaspora. Our private trust services include Living Trusts, Testamentary Trusts, Education Trusts, Family Welfare Trusts as well as other purpose Specific Trusts. We have also been appointed by several courts in different States in Nigeria to administer disputed estates. Our workforce consists of many Trusts and Estate Planning certified personnel. Having observed that for the middle class, the need for estate planning though urgent was often ignored given the general disposition towards death, we conceptualized and launched our triple award winning will writing platform-Willpower.

Typically, people in that class would stop at the financial planning phase and not consider the thereafter. So, we realized the need to provide a solution that would address their challenges and ensure that they completed that cycle by securing not only their assets but also the future of their dependents. We identified the main challenges as costs/ process and provided Willpower as an affordable and simplified platform for estate planning.

With Willpower, will writing is seamless and can be done from the comfort and privacy of homes and offices, virtually anywhere. In five steps, a will can be written, thereafter printed and signed in the presence of two witnesses, delivered to UTL for review via a courier service and within 48 hours, it is duly registered and filed at the Probate Registry.

Okay. How do you link these services to the pension reform act?

The Pension Reform Act provides for death-

U

Olufunke Aiyepola

in-service benefits, that is; the retirement savings account, the proceeds of the group life insurance and other similar benefits can only be accessed via a valid will or letters of administration. So, it is important to write a will, and in furtherance of that requirement, our RSA WILL will facilitate seamless access to a deceased employee’s assets. Thus, there is actually a link between the Reform Act and death-in-service benefits.

Quite a number of people do not see the need for wills. What do you see as the reason and how are you handling the challenge?

The apathy to will writing is a function of the cultural dispositions and myths that surround estate planning, especially in Nigeria. The reality is that death is inevitable. To encourage the adoption of Will writing in Nigeria, we have embarked on a nationwide campaign via radio jingles, short movies in English, pidgin, Yoruba and Igbo which have gone viral on YouTube, Twitter, Instagram and Facebook, newspaper adverts and general advocacy aside from several other activations. The campaign is aimed at effecting a change of perspective with regards to estate planning.

At what point should anybody start thinking about writing a will?

Ordinarily, any adult who is employed or engaged in a business should write a will. Also, there are some young adults who are privileged to inherit or be gifted with sizeable investments.

It is pertinent that this category of persons also plan their estates. Employers should step up their welfare packages by including estate planning in their onboarding-cum-welfare processes. As soon as a person is employed, the process should commence, given the combined value of the contributory pension and life insurance proceeds.

We have observed that a lot of people consider the joint contributions of Employer and staff into the RSA as meagre. However, they need to realize that the group life insurance covers a minimum of three times the total annual emolument of an employee. For instance, if a person’s annual total emolument is about 10 million naira, the person’s portion of the group life insurance proceeds in the year that the person dies in service will be a minimum sum of 30 million naira. This is in addition to the balance of the retirement savings account that

had been contributed by that individual and the employer. When gratuity and other benefits are added, it amounts to a considerable sum. A lot of people are not aware of the insurance proceeds that are added to the retirement savings account balance, so it is important that they begin to take cognizance of this. Estate planning also applies to our brothers and sisters that are trading in hundreds of millions and with profits in double digits millions that are yet to plan their estates, which includes the continuity of their businesses. They often do not appreciate that in the event of death, people who have not contributed to their efforts would be the beneficiaries of the assets that they have acquired.

So, if you have a house, a plot/plots of land, insurance benefits, stocks and holdings, interests in partnerships, business interests and even monies lent to others, all of these form part of your estate and should be properly planned for.

We encourage all adults employed or engaged in business to write a will. It is important because death can come knocking on anybody’s door at any time.

In the course of our discussion, you mentioned how WillPower has made your services accessible and the innovation even got you BAFI Awards. Tell us, what does the award mean to you and why you?

I must begin by saying a big thank you to BusinessDay for recognizing the efforts we put into conceiving and launching Willpower.

Like I said, WillPower was conceived to meet a need and we were much elated when it was nominated as the Best non-banking Financial Product or Service of the Year. Prior to the BAFI award, UTL had as a result of Willpower, also won two awards at the 5th Nigeria Financial Innovation Awards- the Most Innovative Trustee Company of the Year and the Trustees CEO of the Year. So, the BAFI award really crowned it for us. We are humbled and quite appreciative of being the recipient of the award. The awards and the response from the public have encouraged us to forge ahead and very soon we will be introducing other innovative digital services.

You are doing quite a lot to make your services simpler and more accessible. Tell us why customers should remain with you. What makes you unique?

UTL’s unique selling points are numerous.

First among these is our fifty-three year history of protecting the future for our diverse clients.

We understand the nuances of creating and protecting trusts. We understand what it takes to manage multiple interests. As a leading independent corporate trustee’ company, void of bias, we give independent and fair opinions and render fair dealings to all beneficiaries.

IS NOW RC634453

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

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

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This section is created to increase awareness and deepen knowledge about the Contributory Pension Scheme.

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

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insurance today

E-mail: insurancetoday@businessdayonline.com

Insurance recapitalisation looking good as funds flow into industry …mergers, acquisitions last minute options Modestus Anaesoronye

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he initial apprehension that enveloped the insurance industry when the ongoing recapitalization exercise was pronounced on 20th May 2019 is gradually settling down, with a number of the companies becoming clearer with funding sources.

While the foreign insurers have almost cleared their tables on the funding sources, the mid to large size local insurers were tidying up plans with strategic investors and well as funds from assets restructuring.

Business Day investigations also show that the top size insurers may recapitalise and also take up small companies, which analysts say will bring a lot of stability in the market without many casualties from the exercise.

An industry sources said the exercise may end up not seeing causalities in terms of license seizure as almost every company is doing something to raise reasonable funds, even if there will be mergers at the end of the day.

One important point here is that a lot of investors are showing interest in insurance industry based on the perceived potential for growth given the low level of insurance penetration in the country.

Insurance penetration to the GDP in Nigeria is put at 0.4 percent in a population of over 190 million people, underscoring the untapped opportunities open to investment in the sector.

With an estimated N200 billion expected into the Nigerian insurance industry after the ongoing recapitalisation by underwriters, the sector is hopeful to emerge stronger, contribute reasonably to the economy and also able to offer good returns to investors.

Industry experts believe that the sector post consolidation will have enough resources to attract quality manpower, acquire necessary skills to underwrite big ticket risks, increase retention in the local market, and be able to take advantage of untapped potentials to create shareholder value.

The National Insurance Commission (NAICOM) had in a circular issued on Monday May 20, 2019 announced increase in the paid-up share capital of life companies from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance companies from N10 billion to N20 billion.

According to the Commission, the minimum paid-up share capital requirement shall take effect from the commencement date of the circular (May 20, 2019) for new applications, while existing insurance and reinsurance companies shall be required to fully comply not later than 30th June 2020.

Industry operators say there is still much to hope for in investing in insur-

L-R: Eddie Efekoha, managing director/CEO, Consolidated Hallmark Insurance Plc; Idris Abubakar, independent director; Sunny Nwosu, president emeritus, Independent Shareholders’ Association of Nigeria, and Obinna Ekezie, chairman, Board of Directors, Consolidated Hallmark Insurance Plc during the company’s Extra-Ordinary General Meeting in Lagos

ance as the industry holds a lot of untapped potentials in the long term for savvy investors.

Daniel Braie, managing director/CEO, Linkage Assurance Plc said firstly, the Nigerian investment climate is still one of the most attractive in the world in terms of investment returns, so that in itself is an impetus for new investors.

Speaking specifically about the insurance industry, Braie said the full potential of the industry is yet to be realized when you consider that the insurance penetration ratio is still below one percent.

“Look at it from the point of our population demographics, the insurance industry is a huge market waiting to be unlocked. This should be an attraction for any investor to put in money. In addition, the compulsory insurances if adequately enforced will also offer opportunities for the insurance industry to grow and contribute to the overall growth of the economy.”

According to him, the lack of local capacity for certain classes of risks is still a challenge therefore with increase in capital base of insurers, it is expected that it will make the insurance companies stronger to be able to retain more of the businesses and reduce businesses placed abroad.

“The future of the insurance industry in Nigeria is very bright given the growth opportunities highlighted earlier especially in the retail space. Because of these potentials companies like Prudential www.businessday.ng

of Britain and Allianz of Germany have recently partnered with local companies in addition to those already operating in the country.”

Braie also said “as stated earlier, the investment climate is still one of the most attractive in the world and the insurance industry is not an exception. “So both local and foreign investors should be rest assured that returns on their investment will be very favourable.”

Mayowa Adeduro, managing director/ CEO, Law Union and Rock Insurance Plc said the attractions to any informed investor to put money into insurance business is first the potential of the industry.

“The population of Nigeria is over 200 million people with over 70 percent below 50 years age. The industry is about N400 billion GPI in 2018 but has the potential to double that in 5 years. The infrastructure deficit means there will be increasing spending in capital projects that attracts insurance.”

According to Adeduro, increasing awareness of risk and insurance means more premiums to the industry. Better regulatory and governance environment creates opportunity for growth.”

Corroborating Braie, Adeduro also noted that the existing six compulsory insurance products have potential to generate N1 trillion gross premium. “The local content law, the carbotage law, the pension reform Act and other state enactments like the Lagos State Safety Control Law will all creates opportunity

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for insurance to thrive.”

“As an operator, I foresee improvement in returns on investment after the recapitalization exercise because companies will likely acquire efficient distribution of products model leveraging on technology. Management cost and other /overhead cost will go down significantly including Reinsurance expense as the companies would have acquired higher underwriting and retention capacity.”

“Post recapitalization, there will be lower participants and higher entry barrier, so i expect more collaboration and cooperation among remaining underwriters. I see an industry collaborating with banks for facilities, project financing, and investment returns will dramatically improve, Adeduro stated.

Tola Adegbayi, executive director, General Business at Leadway Assurance Company Limited has this to say, “I would think that the potential for insurance is great for our country. The general banter is about population size and the bulk of this relates to the lower income groups where we have the most vulnerable part of our population, thus speaking to the potential for micro insurance.”

According to Adegbayi, the core for insurance is then the middle income persons, SME business owners who desire financial freedom and security. “Insurance provides that freedom to aspire and the needed security should anything happen; meaning that any investor needs to look at the market potential of this group.”

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Lloyd’s new campaign captures Nigerian market’s concern on women inclusiveness Modestus Anaesoronye

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he specialist Lloyd’s of London insurance and reinsurance marketplace recently launched new campaign designed to encourage people to speak out against unacceptable behaviour captures a recent Nigerian market discuss at ‘Dive In the Festival for Diversity and Inclusion in Insurance’ forum held in Lagos.

T h e p ro g ra m d rove c o n ve r s a t i o n s a ro u n d women inclusiveness and increased presence in leadership positions pointing at the need for legislation as well as mentorship.

The forum also emphasized pushing legislation like what is obtainable in the banking industry that will make it mandatory to have a certain number of women in the board of insurance companies. All of these it said will give women a voice and opportunity to speak out when they are that there women in leadership position that can stand in for them.

Dominic Christian,

L-R: Teslimi Sanusi, past president, Nigerian Council of Registered Insurance Brokers (NCRIB); Bola Onigbogi, president, NCRIB; Sunday Thomas, acting commissioner for Insurance/CEO, National Insurance Commission (NAICOM); Laide Osijo, past president NCRIB; Feyisay Soyewo, past president of NCRIB; and Tunde Oyetade, vice president of NCRIB during a courtesy visit by the NCRIB to the Acting Commissioner of Insurance’s office in Abuja

chairman of Inclusion Lloyd’s, and also global chair of Aon Benfield who was the guest speaker at the forum said that Dive In festival was launched five years ago in London with the message that diversity and inclusion are good for business.

He said that the event

has continued to offer opportunity to open conversations around topics such as gender equality, social mobility and cultural differences, physical and mental health and wellbeing.

The Lloyd’s campaign, # S p e a k Up, h a s b e e n launched by Lloyd’s in or-

FBNInsurance settles N5.4bn claims in 9 months Modestus Anaesoronye

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BNInsurance Limited, one of the leading life insurance companies in Nigeria, has paid out N5.4 billion claims settlements to its clients at the end of the third quarter of 2019.

Making the disclosure in Lagos, Val Ojumah, managing director/ CEO of FBNInsurance Limited, said that the focus of the company is to maintain the indisputable leadership position in the life insurance sub-sector by paying claims promptly and at the same time protect the interest of its various corporate and individual clients.

According to Ojumah, “Ours is a business of trust and as part of our efforts geared towards maintaining irrefutable leadership in the life insurance sub-sector, we have built a solid foundation

where our clients can insure their trust by promptly paying their claims. We have also deepened our footprints across Nigeria in our quest to serving our customers and shareholders even better than we have done in previous years”.

He further reiterated that “Customer satisfaction is the fulcrum of insurance business and this inevitably builds customer loyalty

Val Ojumah, managing director/ CEO of FBNInsurance Limited www.businessday.ng

and we will not fail to ensure this. We believe once FBNInsurance is able to pay customers’ claims as they arise, numerous customers and the general public will have faith to take up more life policies because they are convinced that should a claim/loss arise, FBNInsurance will be able to meet its financial obligations to them”.

You will recall that FBNInsurance paid N4.8 billion claims in 2018, despite the unpredictable economic situation in the country occasioned by the preparation for the general election at that time.

FBNInsurance is an FBNHoldings company associated with the Sanlam Group SA and was incorporated in 2010 to transact life insurance business in Nigeria and currently operates out of over 40 sales outlets and two branches nationwide.

der to underline the importance of speaking up and to provide clear guidance on how people can take action if they either see or experience unacceptable behaviour in the market.

It forms part of a prog r a m m e o f m e a s u re s recently introduced by Lloyd’s to address the find-

ings of its Annual Cultural Survey and accelerate progress towards a culture of integrity, respect, and inclusion across Lloyd’s.

The Lloyd’s Annual Cultural Survey found that 38 percent of respondents did not know who to alert when they had a concern, while less than half (45 per-

cent) of respondents said that they felt comfortable enough to raise a concern.

John Neal, chief executive officer (CEO) of Lloyd’s said: “At Lloyd’s, we expect all market participants to act with integrity, be respectful and always speak up. I hope this campaign encourages more people to do so. You will be heard, you will be supported, and we will act, because no matter what form it takes, harassment is never acceptable.

“The ambition here is to make a positive difference in many people’s lives, by empowering individuals to act and intervene when they witness unacceptable behaviour. I think everyone has a role to play. Lloyd’s leadership is fully committed to transforming the culture at Lloyd’s with shared values that will shape the behaviors, choices and actions of everyone in the marketplace.”

The survey followed reports of sexual harassment in the Lloyd’s market, and forms part of a plan to create a more inclusive and innovative culture, and to ensure the market can attract and retain more talent.

Guinea Insurance increases authorized capital to N12 billion Modestus Anaesoronye

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o comply with the ongoing recapitalisation exercise in the insurance industry, Guinea Insurance Plc has increased its authorized share capital from N4 billion to N12 billion in line with its plan.

Guinea got its shareholders approval to this effect at the Company’s 61st Annual General Meeting held in Uyo, Akwa Ibom State.

Underwriting companies in the country was give June 30th, 2020 deadline by National Insurance Commission (NAICOM) to comply with new capital regime.

With the approval, the underwriting firm hopes to increase its Authorised

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Share Capital from N4,000, 000,000 to N12,000,000,000 by the addition of the sum of N8,000,000,000 divided into 16,000,000,000 ordinary shares of 50 kobo each ranking in all respect with the existing shares of the Company.

Godson Ugochukwu, chairman board of directors said at the meeting that “the approval, as given by our respective shareholders, brings to the table penetrating insights and sustainable action plans that will bolster our get-upand-go capital structure reorganisation actions.

According to him, options available to us are either to: approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into @Businessdayng

the Company or consider the possibility of a merger with another company operating in the general insurance business portfolio.

“In any case, the Board had engaged the services of professional parties and advisors to provide matterof-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.”

Meanwhile, Ademola Abidogun’s appointment as managing director/CEO of Guinea Insurance was unanimously ratified by shareholders of the Company while also acknowledging his numerous years’ experience in providing strategic and operational leadership in uniquely challenging situations in the insurance industry.

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Wednesday 27 November 2019

BUSINESS DAY

Harvard Business Review

ManagementDigest

Sizing up your cyberrisks Thomas J. Parenty and Jack J. Domet

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ver the past decade the costs and consequences of cyberbreaches have grown alarmingly.

The total financial and economic losses from the 2017 WannaCry attack, for instance, were estimated to reach $8 billion. Hackers seem to keep getting more effective. But in our experience as consultants, we’ve found another reason that companies are so susceptible to threats from hacking: They don’t know or understand their critical cyberrisks, because they’re too focused on their technological vulnerabilities.

When cybersecurity efforts address only technology, the result is company leaders who are poorly informed and organizations that are poorly protected.

Discussions of cyberthreats end up being filled with specialized tech jargon, and senior executives can’t participate meaningfully in them. The responsibility for addressing risks then gets relegated entirely to cybersecurity and information technology staff, whose attention falls mainly on corporate computer systems.

The outcome tends to be a long, ill-prioritized list of mitigation tasks. Since no company has the resources to fix every cybersecurity problem, important threats can go unaddressed.

A more fruitful approach is to adopt the view that cybersecurity should focus more on threats’ potential impact on a business’s activities. Say you’re an executive at a chemical company. Instead of asking what cyberattacks might be possible on your computer systems, ask, How could a cyberattack disrupt your supply chain? Or cause a threat to humanity? When leaders start with crucial activities, they can better prioritize the development of cyberdefenses.

DEVELOPING CYBERTHREAT NARRATIVES Identifying and fixing cyberrisks is a social process. To accurately assess where the most important ones lie, you must consider the viewpoints of a wide range of employees. By involving a broad group, you’ll build a common understanding of the critical facts and details early on, which will enable you to reach consensus when you subsequently need to manage the risks.

To help companies organize and share the relevant information with a wide audience, we’ve developed a tool we call a “cyberthreat narrative.” It addresses the four parts of the story of a potential cyberattack: a key business

activity and the risks to it; the systems that support that activity; the potential types of attacks and possible consequences; and the adversaries most likely to carry attacks out. Outlining details about all four will help companies recognize and prioritize their risks and prepare remedial actions.

The people in your cybersecurity group should take charge of developing cybernarratives, but they should solicit contributions from: — LEADERSHIP: The CEO, the executive team and other senior executives.

— OPERATIONS: Personnel involved day to day in the central business activities.

— IT SYSTEMS: People responsible for the administration of the computing systems supporting the activities.

— RELEVANT SPECIALISTS: Staffers with expertise related to the type and consequences of the particular kind of threat you’re outlining, such as legal, public relations, human resources and physical security employees.

Let’s look now at each element of a cyberthreat narrative, how to develop it and who should be involved.

CRITICAL BUSINESS ACTIVITIES AND RISKS To identify these, the cybersecurity team should interview the company’s leaders; examine its written statements of risk tolerance; and consider company objectives, such as growth in new markets. For example, entering a new country might be essential to increasing the customer base.

Critical activities can be outside the organization, relate to internal operations or involve the company’s strategic future.

How important an activity is www.businessday.ng

and the number of critical business activities a company has, and therefore the number of cyberthreat narratives it should develop, will vary from company to company.

To size up your organization’s risks, think about how each key activity could fail in a way that damages your company. In the case of the chemical maker, a disruption to its plant operations could prevent it from producing resins, which could reduce its revenue. Also examine the risk of collateral damage to your customers or other stakeholders — a release of poisonous chemicals into the environment, for example.

SUPPORTING SYSTEMS Your company can’t mount an effective cyberdefense if it doesn’t know what it needs to protect. So you have to catalog your computer systems and the services and functionality they provide for each activity in question. This process should be kick-started by the operational employees involved in the activity, because they know what software they use and what the consequences will be if those programs malfunction. The inventory should note the physical locations of the systems so that cyberincidentresponse staffers know where to go to fix things in the event of an attack.

CYBERATTACK TYPES AND CONSEQUENCES Next the team should outline all the types of attacks that could disrupt each critical activity, describing what would be required for attacks to succeed and what the potential consequences might be.

At the most basic level, cyberattacks exploit vulnerabilities in

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computer systems. Malware attacks, for instance, use malicious software to take advantage of programming mistakes in applications. Your cybersecurity staff can and should identify the kinds of techniques that could target vulnerabilities in your crucial computer systems.

It’s important to note that a cyberattack can be executed in countless ways, and it isn’t useful to enumerate them all. If you identify basic types of attack, such as an external hack that installs malware or an employee who misuses computer privileges, that’s enough.

— ATTACK REQUIREMENTS: Understanding what an adversary needs to pull off a cyberattack is vital to building your defenses. Your cybersecurity group and the operational staff involved in the critical activities can identify the specific requirements, but most fall into one of these three types: 1. KNOWLEDGE: Information the adversary needs to have — for example, how to program malicious software.

2. TOOLS AND EQUIPMENT: What devices an adversary needs — for example, hacking aids like password crackers and network analyzers, and hardware such as laptops and radio transmitters.

3. POSITION: Where an adversary needs to be — for example, does he need to be physically next to a building?

— ATTACK CONSEQUENCES: Executive leadership and senior management are well positioned to identify the fallout from disruptions to the key business activities and should guide your cybersecurity group on this task.

Operations and systems staff can point out additional consequences; specialists from other departments can spot potential collat@Businessdayng

eral damage.

CYBERADVERSARIES Identifying potential perpetrators, as well as their motivations and capabilities, will help you assess the likelihood of an attack and develop the controls needed to thwart it. Your adversaries could be countries, criminal organizations, competitors, disgruntled employees, terrorists or advocacy groups.

Company leaders and the operations staffers involved in critical business activities are best at identifying possible adversaries, because they’re most familiar with what might motivate attackers and what they could gain. A good place to start is to ask what your company has that could be of value to someone else. For example, a competitor could be interested in your trade secrets.

Identifying cyberrisks is an ongoing process: As your business evolves, it will face new vulnerabilities. To spot these, your company must have well-defined checkpoints within its changemanagement processes at which it evaluates cyberrisk.

Thomas J. Parenty is an international cybersecurity expert who has worked at the National Security Agency and advised other organizations across the globe.

He is a co-founder of the cybersecurity firm Archefact Group and a co-author of “A Leader’s Guide to Cybersecurity.” Jack J. Domet is a management expert who focuses on helping multinational corporations adapt to shifts in technology, globalization and consumerism. He is a co-founder of the cybersecurity firm Archefact Group and a co-author of “A Leader’s Guide to Cybersecurity.”

Wednesday 27 November 2019

Harvard Business Review

BUSINESS DAY

ManagementDigest

Getting the most out of 360-Degree reviews John Behr

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CONNECTING nline and interviewbased 360-degree reviews — tools that enable a group of co-workers to provide feedback about a fellow employee’s performance — can be extremely valuable for any company. They bring together insights from a range of people, often illuminate an executive’s blind spots and give colleagues a way to weigh in on and support an individual’s development.

But these tools are effective only if the feedback is kept confidential, respondents are encouraged to be candid and everyone is transparent about the purpose behind the review. Whether you use an online survey or in-depth interviews conducted by an outside coach, the following areas require special attention: — CONFIDENTIALITY: Coworkers can be more honest and direct knowing that their comments won’t be attributable to them. With online surveys, choosing a credible vendor can reassure the subjects of the review and the respondents that information will not be accessible to anyone internally. Human resources leaders need to make clear how confidentiality is ensured and guarded. When 360 reviews are done through in-depth interviews, the coach needs to assure respondents that what they say will not be relayed to the subject.

— CANDOR: With online surveys, HR must convey how

Beth Schinoff Blake E. Ashforth and Kevin Corley WORK VS. LIFE esearch has shown that when employees have friends at work they are better performers, more engaged and happier with their jobs. But as remote and flexible work arrangements become more popular, how of the Midwest division of a global technology corporation. We interviewed 64 people who worked remotely at least 50% of the time, with many working remotely 75% to 100% of the time. We also spent more than 75 hours observing how employees interacted with each other when they happened to be together.

We found that remote workers often experienced virtuality as a barrier to forming friendships with their colleagues. To overcome this barrier, they had to establish what we termed cadence — an understanding of who our interlocutor is and an

When directors have hidden ties to rival companies, firms profit

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important it is for respondents to be candid and that the feedback collection process is not aimed at wounding the subjects’ selfesteem. With interview-based 360 reviews, coaches should also emphasize the need for candor. In my interviews, I assure respondents that I convey feedback to subjects in a way that helps them understand and digest it without feeling attacked or devalued.

— TRANSPARENCY: When rolling out a review, HR and managers should be transparent with everyone involved about its purpose. Is there a specific performance issue that’s of concern? Is the subject’s job at stake? Hiding the objectives can be counterproductive. And if coaches doing the interviewing don’t know what’s at stake,

they may not be able to zero in on crucial performance areas or push subjects to understand the severity of their situation.

When conducting online 360 reviews, there are two additional issues to consider: — CUSTOMIZATION: Many online 360 review tools can be customized. The main reason to do so is to reflect the company’s language and its mission.

Special circumstances may also require customized surveys — for example, if the organization has merged with another company, there may be questions concerning how the executive relates to executives within the new entity.

— FOLLOWING UP: Some online survey programs simply produce a summary report, but the results should never be de-

livered in a vacuum.

Without context and support, the subject may not be able to make use of the feedback. Further, if respondents don’t see anything change as a result of their participation in the survey, they might start regarding the surveys as a waste of time. At a minimum, the subject should have a conversation with someone who is skilled in the interpretation of the results and can help them develop an action plan.

No assessment process is perfect, but when 360 reviews are thoughtfully implemented, they provide valuable insights and a reliable baseline for leadership development, delivering feedback to executives that’s

John Behr is an executive coach.

How remote workers make work friends

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ability to predict how that person will interact with us. When we don’t have cadence with our coworkers, we might find it difficult to get in contact or interact with them.

How did the people in our study develop a cadence that ultimately became a friendship?

First, they began with specific assessments of whether and how they might develop a work-related cadence, such as: — Does my colleague respond in an expected time frame?

— Does he have relevant skills that I might rely on to do my own work?

— Do I like working with and communicating with him?

If the answer was “no” to any of the above, people would limit their interactions to work-related reasons. If the answer was “yes,” they would take steps to build a richer relationship, such as looking the colleague up on LinkedIn to learn more about them.

For some people, the groundwww.businessday.ng

work laid by that work-related cadence naturally progressed to a friendship-related cadence.

Many people in our study made a separate set of friendship-related assessments, such as: — Do we “click”?

— Does my co-worker have time to be friends?

— Does being friends with my co-worker hurt my work in any way?

If people felt they could establish a friendship-related cadence with their colleague, they would take the risk of initiating a friendship. They would do things that would help them connect for reasons other than just work, like becoming Facebook friends or swapping stories of weekend plans.

If you’re looking to make friends when working virtually, it will require taking chances.

You can help foster it by being a reliable work partner and responding punctually to remote co-workers. Then reach out to the

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co-worker to share something a little more personal or a funny story.

If you’re a manager, set the stage for your employees to get to know each other. Create opportunities for them to meet in person.

When people travel to various sites, have them reach out to the people they work with.

While building cadence may seem like a lot of work, it is essential. Virtual workers are more likely to feel isolated from their organization and each other; cadence can help foster relationships that will make them feel more connected.

Beth Schinoff is an assistant professor of management and organization at the Carroll School of Management at Boston College.

Blake E. Ashforth and Kevin Corley are professors of management and entrepreneurship at the W.P. Carey School of Business at Arizona State University. @Businessdayng

irect ties among the members of rival companies’ boards have long been prohibited, owing to their potential to reduce competition and confer unfair advantage. But a new study finds that ties of a less obvious nature endure and significantly affect company fortunes. The researchers surveyed directors at 509 medium-size and large U.S. companies from 2007 to 2013 and subsequently interviewed more than two dozen of them.

They also gathered demographic and board membership information on the directors from publicly available databases and analyzed the firms’ financial returns. They learned that boards have, on average, 2.2 members who are friends with a competing company’s CEO, and that this happens in large part because headhunters solicit board candidates from the chief executives of competing firms.

Survey results indicated that such ties help firms manage competitive uncertainty by giving them inside information about rivals and facilitating interfirm cooperation, whether actively (by tacitly cooperating on price or coordinating responses to mutual competitors, for instance) or passively (by avoiding actions that would hurt the other firm). And indeed, the financial data shows that an increase of one boardfriendship tie is associated with an average annual increase in return on assets of 1.6%, or $134 million. “In revealing how firms circumvent regulation by creating board ties to the friends of rivals’ CEOs, our study uncovers a widely used type of board tie that calls for attention from antitrust regulators,” the researchers write.

ABOUT THE RESEARCH: “Under the Radar: How Firms Manage Competitive Uncertainty by Appointing Friends of Other CEOs to Their Boards,” by James D. Westphal and David H. Zhu (Strategic Management Journal, 2019)

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Wednesday 27 November 2019

BUSINESS DAY

TRANSPORTation Motoring

RailBusiness

ModernTravel

Roads

Chinese Changan models tackles segment rivals …As Alsvin sedan, CS55, CS95 SUVs is launched

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chief financial officer said that, the launch of the new models from Changan adds to the range and shows the company’s commitment towards bringing feature packed best in class quality in affordable range to the Nigerian customers.

The company has sales and service outlets in seven locations across Nigeria, two in Lagos and one each in Abuja, Ibadan, Kano, Enugu and Port Harcourt.

Stallion has invested in a stateof-the-art central auto parts and service center at Orile Lagos to support the distribution of genuine parts across the nation for the upkeep of these vehicles.

The service facilities offer preventive maintenance, mechanical and electrical repair to body shop and paint booth and are periodically trained by Changan to ensure best service delivery.

Corporation, Japan is renowned for the production of top quality and reliable vehicles which are widely trusted for durability and competitive prices.

“As is traditional with CFAO, we have already trained technicians with the support of the manufacturer and we have made provision for sufficient genuine spare parts at the right price”.

Amongst the guests in attendance were Gbenga Oyebode; chairman CFAO Nigeria; CFAO Nigeria; Koichi Suzuki, executive director International Marketing, Suzuki Motor.

CFAO is a pioneer in automotive distribution and has been in Nigeria for 117 years. CFAO Motors is the distributor of the Suzuki brand in 26 African countries with dedicated sales and aftersales support.

The conglomerate has a direct

presence in 36 African countries and provides a gateway to 49 of the 54 countries that make up the African continent and also active in seven French overseas territories and in Asia with over 15,000 employees.

It is a subsidiary of the Toyota Tsusho Group (Japan) with a representative office in South Africa in 1964 and incorporated subsidiary Toyota Tsusho Africa in 1999. This entity was added to the CFAO Group in 2017.

Apart from being a key player in specialized distribution in Africa and the French overseas territories and a partner of choice for major international brands, CFAO is a market leader in automotive and pharmaceutical distribution and continues to grow in consumer goods, new technology, and energy solutions.

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It is a brand new, dynamic, and family friendly sedan offering customers excellent value for money, safety, stylish exterior and interior design with ample space.

The CS 55 is designed and developed by Changan’s European Design team, and its shape draws inspiration from Obsidian (Vulcanic Glass). It is equipped with 1.5 liter Petrol engine with 6 speed automatic transmission.

It is a work of art that integrates a simple design into extraordinary functions. It is equipped with the Blue Core 2-liter turbo GDI direct injection supercharged engine - which is the best in class. It’s joined with the globally advanced Aisin 6-speed automatic transmission and the latest BorgWarner NexTrac intelligent all-wheel drive system.

Present at the gathering were

dignitaries from Stanbic IBTC, Guardian Group, Norland Nigeria, who spoke at the occasion and were strong advocates of Changan. They shared their positive experience with the brand, service and long-lasting relation over 5 years.

The testimony and the continued trust by the customers encourage the brand to add more products to the portfolio and offer innovative and comprehensive solution the Nigerian customers.

The exclusive national partnership with Changan in Nigeria is driven through Stallion group organisation, Zahav Automobile Co. to bring the best in class products and service to the Nigerian consumer. Some of the vehicles are assembled locally and are best engineered for the road severity in Nigeria.

Samar Sapre, Stallion group’s

MIKE OCHONMA he exclusive representative of Rolls-Royce cars in Nigeria that is Coscharis Motors Plc gave members and friends of the Lakowe Lakes Golf Resort a memorable experience of the luxury brand during the recently held annual anniversary tournament in Lagos.

During the event, Abiona Babarinde, general manager in charge of marketing & corporate communications, Coscharis Group said that, “the affinity partnership was to jointly excite the competing golfers beyond the game of golf and further deliver an experience that resonates with their luxury lifestyle having the unique Black Badge Ghost available on display for their interest while they unwind with their favourite game of golf ’’.

The rationale behind the partnership he said is to offer this exclusive opportunity for this priority audience to experience the Rolls-Royce Black Badge Ghost with opportunities for test drives amongst others.

On his part, Campbell Elliot, the director of Golf at the Club, equally expressed his excitement and satisfaction at this collaboration between the super luxury automotive brand and this year’ edition of their annual golf tournament which is the flagship of the club’s numerous activities.

In his words, ‘’Rolls-Royce Motor Cars being a globally respected luxury brand associating with the club’s golf tournament no doubt raised the profile of this year’s tournament to the delight of all the club’s stakeholders and we look forward to more of such collaborations in the future to deliver extra value for our common clientele’’.

MIKE OCHONMA Transport Editor

lobal auto major; the Changan automotive group of China along with Stallion Motors, its exclusive national partner in Nigeria recently launched a fresh market offensive for it new models of Alsvin sedan, CS55 and the CS95 sport utility vehicles.

Present at the evening of exchange of pleasantries and throwing of banters were Lucas Xiang, Changan automotive group head of Middle East and Africa business. He said that Nigeria is a very important market for Changan’s global business.

According to him, ‘’The new range of vehicles like the Alsvin -sedan and CS 55 and CS 95, mid and high-end SUV are equipped with new-generation platform, contemporary design and will offer best-in-class efficiency, performance and comfort. These vehicles will further augment the brand ethos of “Lasting Safety”.

Changan is one of the top Chinese auto brands that is gaining immense popularity worldwide and is known for its value offering across automotive segments.

Changan automobile boasts an industrial history stretching back 157 years.

With 32 years of experience in building and selling passenger vehicles, Changan is an early leader in the auto industry. Each day, more than 8,500 consumers buy a new Changan worldwide and its increasing becoming one of the trustworthy brands in the West African market.

Changan Alsvin V3 is the entry level sedan equipped with a 1.5L Engine, automatic transmission.

Luxury life-style resonates at Coscharis Rolls-Royce Cars Golf competition

CFAO Motors brings Suzuki hospitality back to Nigeria …Offers financing package, free petrol and service to customers MIKE OCHONMA

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utomotive enthusiasts of the Suzuki brand in the country that have missed the opportunity of acquiring the brand in the past years are now assured of its availability following the official opening of its dealership showroom and formal unveiling of the Japanese model range into the Nigerian market by CFAO Motors.

Among the Suzuki models available at the new CFAO dealer outlet located on Akin Adesola Street, Victoria Island, Lagos are city cars like the completely revamped Alto, the model additions such as the Baleno, Dzire, Ertiga, Ciaz and Ertiga including the Swift. The off-road within the Suzuki family are the Jimny and Vitara Sports Utility Vehicles (SUVs).

One of the highlights of the event which attracted high profile

dignitaries like the Kikuta Yutaka, Japanese ambassador to Nigeria was the announcement of the new Suzuki offer of financing scheme starting from just N85,000 per month with an option to trade-in old cars subject to terms and conwww.businessday.ng

ditions. In addition during the first year, the customer does not pay for petrol or service.

Speaking at the event, Thomas Pelletier, Thomas Pelletier, managing director/ country delegate said: “Our partner, Suzuki Motor

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@Businessdayng

Wednesday 27 November 2019

BUSINESS DAY

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TRANSPORTation Motoring

RailBusiness

ModernTravel

Roads

‘Equipment pilfering hindering Iju-Apapa rail project’ …Getting to Apapa seaport a priority, says Amaechi

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MIKE OCHONMA Transport Editor

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igeria’s transportation minister, Rotimi Amaechi has expressed conceren over the reported cases of pilfering of the equipments belong to the contractors on some of the project sites along the construction corridor within Lagos axis of the Lagos-Ibadan standard gauge rail corridor handled by the Chinese Civil Engineering & Construction Corporation (CCECC).

The minister made this known at the end of the inspection tour of the LagosIbadan standard gauge rail project. He said that initially, the federal government did not get the needed support from the people, adding some people are still in court over this, but they forgot that when lands are taken away from them by the government, it could be on the reasons of over-riding public interest. ‘’ Presently, we are confronting the challenges of stealing. We are beginning to hear about stealing. It wasn’t there at all for those who live in Lagos and Ibadan but now we are beginning to hear

about pilfering that people are still our equipment’’. The minister lamented.

He said that some of these challenges are some of the delays in the smooth execution of the project. According to the minister, ‘’We are dealing with urban renewal, we are building new flyovers, overhead bridges, underpasses, pipes, sewage and we pray that we don’t meet it in Ibadan to Kano.

Amaechi said that he hope such will not be the case heading towards Kano

and that if at all such hiccups are met, it won’t be in the magnitude of Lagos because it was a total chaos in Lagos, even as such support received received from Lagos residents presently was lacking initially. ‘’The fact is that they can get to Ebute-Metta soon but getting there without getting to Apapa port complex will not achieve much because we need to clear the gridlock and the easiest way to do it is to get the track to seaport, that way, cargoes will be loaded to

wagons and taken to Ibadan and thank God we have gotten contract for Ibadan-Kano, as soon as we get the money, we will start work and the gridlock will be cleared’’. The minister stated.

We will be out of this place latest by April 2020. We are no longer giving ourselves the time; the contractors are the ones giving us the time.

The initial contract was from Ebute-Metta but because we wanted it to end at the seaports, we extended it and that is where the challenges are.

Elizade tackles Germaine team in Toyota Chairman’s cup finals MIKE OCHONMA

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way from corporate boardroom meetings and decision making startegies to meet corporate bottomline, two accredited dealers of Toyota Nigeria Limited will this weekend at the Meadow Hall School football pitch, by Ikate round-about in Lekki, Lagos meet in the finals of this year’s Toyota Chairman’s Cup Football Competition (TCC FC).

For this Saturday finals, Elizade Nigeria Limited football team will be playing against Germaine Auto Center football club, while Kojo Motors team will tackle Mandilas Motors team in the third place play-off in 2019 TCC FC sponsored by Zenith Bank plc in what source said the 5-aside football competition provides an avenue for the Toyota dealers to meet and network with each other in a very relaxed atmosphere.

Michael Ade.Ojo, chairman, Toyota Nigeria Limited presenting the Cup to the captain of Team Germaine Autos, (current defending champions) and winners of the Toyota Chairman’s Cup Football Competition TCC FC in 2018.

Speaking exclusively to our reporter ahead of this weekend’s football clash, Sunday Okeowo, dealer liaison manager, marketing at Toyota Nigeria Limited and co-ordinator of TCC FC said that, the rationale behind the annual football competition is for the purposes of bonding among the Toyota www.businessday.ng

Nigeria dealerships.

According to him, ‘’Beyond the confines of what we do which is sales and marketing and aftersales service offerings to our numerous Toyota fleet and individual clienteles, we want create an environment that will foster working relationship among the dealers, have that fun,

How to sell that your car for profit (2)- Cheki.com

relaxation and have that one family spirit even though, we are all have target to meet.

According to the event co-ordinator, ‘’The Mike Ade. Ojo TCC FC started in 2014, but could not be held in 2015 and 2016 when the fledgeing automotive policy affected the market. During that period, we were all unsettled, but we started again in 2017 and 2018.

RT Briscoe plc won the maiden edition in 2014, while Globe Motors won 2017 Globe and Germaine won in 2018. While he did not mention the star prizes, he said the first tree teams will be rewarded; that is the winners, the first and second runners-up will be rewarded.

Last year, we rewarded all the eight teams beyond the first three but this year, only the winner will be rewardwd. The referees and other officials of the football competition are drawn from Eti-Osa local government area of the state.

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et the car serviced and carry out repairs If you are not completely sure whether your car is in good condition or not, ask a trusted mechanic to inspect it, Iyagin recommends. This is the point where you want to ensure you check the oil level, and top it up if there is a need for that because informed buyers will check for burnt oil.

Make it a priority to fix anything that has the potential to negatively impact the perceived quality and value of the car. Does the car remote work? Have a look at it. If you need to replace the battery, go ahead and do so before the buyer comes for a physical inspection.

“The battery of the car’s remote control might cost as little as to replace, but the buyer does not know that. When the potential buyer runs a mental recollection of cars he/she has looked at, a non-functional car remote is something that will stick out in a bad way,” Iyagin explained.

You should make it a priority to fix the things that are likely to stick out in the buyer’s mind. The repairs should not be restricted to certain parts

tested and trusted by car experts in Nigeria. The Cheki True Price tool is designed to provide car buyers/seller with accurate information on the prices of cars in Nigeria.

It’s important to know what your car is worth before you hang a price on it. You might add some money to your base price to account for buyers who are inclined to haggle with you.

Don’t limit your exposure In addition to telling your friends and colleagues about your plans to sell a car, you need to list your car for sale.

When you list your car on a cars-only website like Cheki, you expose your car to thousands of potential car buyers.

It is also vital to keep your listing detailed and honest.

Don’t leave any feature or detail out, Iyagin advises. Don’t try to conceal the mileage or unpleasant details about the car. The last thing you want is advertising a car that looks unblemished; only for the buyer to find out that you concealed certain details during a physical inspection.

You should never assume that a potential buyer already knows everything there is to know about the car you have listed for sale. Did you know

of the car. Take a wholesome look at everything that requires fixing and prioritise the repairs if you have a long list.

If the brakes are bad or squeal, they should be replaced. If there is a huge dent on the car that will cost you to fix, go on and fix it because it will fetch you a few more hundreds of thousands when it’s time to sell.

You don’t need to spend a fortune servicing or revamping a car you want to sell, unless it’s a critical damage that would affect the driving performance of the car. In this case, even after repairs, you should let the buyer know about the previous damage.

Gather your records The best way to convince a buyer that the car you are selling is one that is not problematic and will give them peace for the mind is to show the buyer the car’s maintenance records.

“Even if you don’t have all your maintenance records, you should have them documented (even if you have to write them down) one way or the other.

This will buttress your claims that the car is not riddled with problems,” Iyagin explained.

Keep your price realistic Instead of going through the stress of speaking to several car dealers to find a realistic selling price for your car, use reliable tools that have been

that a potential buyer might not even be searching for your car but might stumble on it because of a specific feature that you have included?

Use high-quality pictures Never forget that the first thing that a potential buyer sees about your car will most likely be the photos of the car. You need to take as many beautiful pictures as you possibly can.

Iyagin recommends providing at least 10 images of your car; captured from multiple angles. To get good pictures, you need to use a decent camera (at least 8MP), and you should pay attention to lighting, glare and reflections. Before you capture the pictures, put yourself in the position of the buyer and ensure the car looks well-maintained.

Only sell to a dealer as a last resort Selling your car to a dealer is easy in terms of finding a buyer as quickly as possible.

However, dealers are unemotional about trade-ins as they are more interested in making the most profit from the resale of the car.

If you are looking to make the most money from selling your car, don’t sell to a dealer.

The typical dealer is not swayed by the appearance of your car or the effort you have put into detailing the vehicle, Iyagin warns.

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BANKING Collaborating to tame fraud in banking sector … Access Bank takes the lead Stories by HOPE MOSES-ASHIKE

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he payment system globally has become largely digitalized with its attendant security threats, and Nigeria as a nation that houses the banks and other financial institutions, is not left out.

Banks are primarily the custodians of money and other valuables including gold. This makes the banking sector vulnerable to fraud.

Determined to fight fraud and fraudsters in every way possible, Deposit Money Banks (DMBs) have continued to collaborate with the Central Bank of Nigeria (CBN) and FinTechs in the area of awareness and engagement with clients.

The collaboration becomes more rewarding in promoting the implementation of digital payments in a safe and secure manner.

Leading in this collaboration is Access Bank Plc, which last week organised annual anti-fraud awareness workshop. The workshop is in line with the International Fraud Awareness Week which offi-

cially started on Sunday, November 17, 2019.

Herbert Wigwe, group managing director/CEO said the workshop is the bank’s avenue of reaching out to members of its community on issues around fraud risk and cyber security through close engagement and collaboration of various stakeholders in the industry.

In Nigeria, he said customers are culturally not attuned to security issues around digital transactions, even well-educated people run the risk of falling victim to social engineering and identity theft traps.

“We must go beyond educating customers on the protection of crucial information to actual data protection and integrity amongst operators and stakeholders,” Wigwe said.

“I am a great believer in collaboration to solve problems. Our collaborative efforts in data protection and customer education are required in countering security threats in Digital payments,” he said further.

Wigwe said the failure of creating customers on digital payment channels which are useful but not needed by

Herbert Wigwe, group managing director/CEO, Access Bank

the customer due to lack of customer profiling is a major security threat to Digital payments in Nigeria.

Selling of digital products should be done according to needs. Evolving payment technologies like Blockchain and cryptocurrency, should also be well regulated and come under the radar of security checks by regulators, he said.

According to Sam Oko-

jere, director, payments system management department, CBN, digital banking has made life easier and has brought a lot of opportunities for financial and social inclusion. Yet, it has made it easier and faster for larger amounts of funds to be lost in the event of a breach. Digital banking has made “banking” even more vulnerable. But we should not be distracted, regulation is there to reduce the

First Bank shows strong commitment to women empowerment

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irst Bank of Nigeria is strongly committed to women empowerment through FirstGem, the bank’s cherished first female-focused product, which is already in its third year.

Three years ago, specifically on 28 October 2016 the bank launched this women-centric account, designed specifically to meet the financial needs of both corporate and entrepreneurial women.

The product, apart from being an account dedicated solely to women, is lifestyleenhancing as it provides a total lifestyle support for discerning women to enable them meet their economic needs and aspirations.

“With FirstGem therefore our long-term focus is on national economic development. I believe that with the indices we have so far FirstGem is on the right performance track,” Adesola Adeduntan, managing director/CEO said at the ’FirstGem’, 3rd anniversary conference in Lagos.

According to him, FirstGem promotes the savings culture, financial literacy, loan management, wealth creation and healthy lifestyle for women. It has a wide array of

advisory, health and current awareness services for the discerning woman.

He reiterated that FirstBank is committed to the empowerment of women. “We understand their story and recognise their invaluable contributions to the economy of our nation in particular and the global economy in general”.

Having identified the gaps in their lives, both in corporate Nigeria and in the entrepreneurial space, the bank is committed to bridging those gaps effectively by providing the tools required for women’s empowerment.

Through FirstGem, the bank has organised and participated in several women empowerment programmes, international conferences, seminars and workshops as well as road shows across different cities and states of Nigeria and offshore.

One month after the launch of FirstGem, in 2016, the bank participated in the Benue State Women Empowerment Programme which held in Makurdi and was hosted by the First Lady of Benue State, educating women on building personal wealth and financial independence. www.businessday.ng

In the first quarter of 2017, FirstGem was launched in Oyo State, in collaboration with the First Lady of Oyo State. During the launch, women of Oyo State were availed various opportunities in trade and commerce, savings and investments, food and agriculture, fashion, tourism, education and lots of other economic empowerment initiatives.

“We were also at the Southern States Governors Wives’ Forum hosted by the First Lady of Abia State in March 2017. The Forum which attracted women from all the 17 Southern States was aimed at creating awareness and consciousness in women as

economy change agents assume their rightful place in the global scheme of development,” Adeduntan said.

“At FirstBank, our purpose is to put our customers and stakeholders at the heart of our business; and throughout our 125-year existence, we have focussed on the continuous improvement of our products to meet the bespoke financial needs of our numerous stakeholders”.

In his presentation at the event, Senior Lecturer, IESE Business School, University of Navarra, Professor Kendarp Mehtap, spoke on why it’s important for women to learn negotiation skills.

Adesola Adeduntan, managing director/CEO, FirstBank https://www.facebook.com/businessdayng

vulnerability, he said.

The CBN said it has been embedding fraud risk mitigating measures in its guidelines and periodic circulars to ensure that adequate measures are being implemented at all levels of digital product development and its operations. The circular for implementation of two factor authentication for internal banking processes of 2015 mandated banks to institute maker-checker controls and implement two factor authentication at login points for applications driving transfers, withdrawal, deposit, standing order, account maintenance and their system maintenance processes.

In addition, the circular also mandated all payment processing gateways and third party processors to implement fraud-monitoring tools to check transfers from an account to multiple bank accounts. All these directives were mitigation steps responding to early indicators of risk in the industry, Okojere said.

In 2018, 38,000 fraud count with over N9 billion attempted fraud value

was recorded, while an estimated N2.0 billion was completely lost in the same year. This represents a 25.7 percent increase when compared to the N1.6 Billion lost in 2017.

“While we are not happy with the increase in value of lost fraud, there are indicators that our controls are working,” CBN director said.

This is demonstrated by the fact that the percentage of actual losses compared to attempts, have reduced from 40.46 percent in 2017 to 23 percent in 2018. More succinctly, in 2017 the industry lost 40 kobo for every N1 attempted, while in 2018 the losses abated to 23 kobo on every N1 attempted.

In another attempt to ensure customer funds are secure, the regulatory framework for the Use of Unstructured Supplementary Service Data (USSD) for financial services in Nigeria was issued partly to ameliorate the rising fraud emanating from SIM swap schemes.

The Framework prescribed the need for effective second factor authenticator for some amounts beyond a certain threshold transacted via the USSD channel.

Heritage Bank empowers 2000 female entrepreneurs

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aking into consideration the importance of Micro, Small and Medium Enterprises (MSMEs) to the economy, Heritage Bank Plc has not relented in its efforts to structure financial inclusivity initiatives in empowering over 2000 female entrepreneurs towards economic enablement and self-realization.

This move is in line with the people-oriented policies of the Central Bank of Nigeria (CBN), Heritage Bank is partnering with a Non-Governmental Organization, Prime Women Builders Foundation of Nigeria (PWOBFON) in providing skills training to the female entrepreneurs.

At the graduation ceremony/ certificate award ceremony held at Ikeja Local Government headquarters over the weekend, Ifie Sekibo, managing director/ CEO of Heritage Bank said the bank is keen in cultivating real partnerships with Micro, Small and Medium Enterprises (MSMEs).

Sekibo, who was represented by head, brand management and sustainability @Businessdayng

Ozena Uturu explained that the lender is interested in initiatives that encourage people to start their own businesses and gradually grow them into conglomerates.

According to him, the partnership with PWOBFON is vital in many ways particularly in the area of job creation, economic empowerment and financial inclusion. “apart from skills training, the women have been told the importance of record keeping in business, savings culture and the benefits of having bank accounts as a gateway to accessing other financial services,” he said.

He said Heritage Bank has been a leading Nigerian bank with an excellent service culture hinged on working with each customer to create a name, wealth and heritage.

Also speaking, Kemi Olofinkua, president/convener Prime women Builders Foundation of Nigeria, applauded the bank for its support, and urged other corporate organizations to take a cue from the lender in supporting grassroots women empowerment.

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PrivateEquity &fundraising Private Equity investors snub Nigeria as investment falls 63% in one year Stories by MICHAEL ANI

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ong term foreign investors, investing into other companies by way of Private Equity, made a U-turn in the third quarter of w2019, in a way and manner never seen going by available data.

Equity investments which account for over 98 per cent of the “sticky money” or foreign direct inflows into the country, tanked 62.99 per cent in one year, to $196.38 million in Q3 from $530.63 million the year before, based on latest data released by the National Bureau of Statistics (NBS).

On a quarterly comparison, equity investments slowed 11.89 per cent from $222.89 million in Q2, as investor’s lung for economic reforms that will boost their confidence.

“The investment landscape in the country is looking all gloomy as investors are shelving plans of investing in an economy that is not only growing below its population, but its government lacks the technical know-how or the political will to take up far-reaching policies,” a fund manager tells BusinessDay. Total investment into the country by way of portfolio investments, direct investments and other investment, stood at $5.37 billion, an 87 per cent increase and a decrease of 7.78 per cent from the value of $2.86 billion and $5.82 billion reported in Q3 2018 and Q3 2019 respectively.

As usual, “hot money” or foreign portfolio investors, though declined 30.1 per cent, accounted for the larger share of the total investments into the country, occupying about 55.9 per cent of the investments.

Source: NBS

Portfolio investment fell to $2.99 billion in the said period from $4.29 billion in the second quarter of the year.

The decline was driven by a fall in the equities market space by 9 per cent on an annual basis. Investments into the bond and money market increased year on year by 144.42 per cent and 97 per cent respectively.

This is followed by other Investment, accounting for 40.39 per cent of the total capital importation, attracting about $2.17 billion in the quarter. This is an increase sporadic increase by 260.41

per cent and 66.20 per cent from the $601 million and $1.30 billion reported in Q3 2018 and Q2 2019, respectively.

Foreign Direct Investment FDI, which accounted for 3.73 per cent of the total investment, stood at $200.08 million of total capital imported in Q3 2019.

By sector, capital importation by banking dominated Q3 2019 reaching $1,756.83 million of the total capital importation in Q3 2019.

The United Kingdom emerged as the top source of capital investment in Nigeria in Q3 2019 with $2,011.14 million.

This accounted for 37.47 per cent of the total capital inflow in Q3 2019.

By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q3 2019 with $4,976.40 million. This accounted for 92.71 per cent of the total capital inflow in Q3 2019.

By Bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q3 2019 with $1,630.91 million. This accounted for 30.38 per cent of the total capital inflow in Q3 2019

Buhari’s administration sets to boost capital market competitiveness—Trade minister

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resident Muhammadu Buhari, plans on setting up a national savings committee, that would help in boosting competitiveness in the Nigerian capital market.

The savings committee would be saddled with the responsibility of making recommendations to the government on the best ways to mobilize savings that would lead to economic growth, the minister of trade and investment, Otunba Adebayo, said.

Adebayo stated this in his speech, during the 23rd annual conference of the Chartered Institute for Stockbrokers, in Lagos, Nigeria’s commercial city, with the theme; boosting capital market competitiveness in a challenging macro environment.

According to him, the government is poised to set the capital market as one of the main drivers of its economic agenda by encouraging both foreign and domestic companies to participate in the domestic stock market.

“The government is all out to provide

an enabling environment for competitiveness among our domestic investors to grow and remain. Foreign portfolio investors come in and when anything happens, they take their money and leave but the direct investors will always be here with us, so we will ensure we provide an enabling environment for competitiveness,” he said.

Adebayo noted the importance of an inclusive engagement with the investing public as well as those Nigerians that are far away from the capital market to ensure they are brought on-board He urged the Chartered Institute of Stockbrokers (CIS) to come up with policy proposals that would support and address Nigeria’s infrastructure challenges like roads, railways, and housing while government incentivize and provide the enabling environment to support this objective. This will be another way to boost the competitiveness of the capital market, he said.

“The best way to improve competitiveness is through a mixture of poli-

cies designed to help, improve capital market competitiveness and long term investment. All these measures will also improve both price and non-price competitiveness,” he said He buttressed that CIS over the years had recorded significant progress in the area of providing, pieces of training, in stockbroking, securities, investment, and asset management and provide market research and financial news to provide best returns.

All these he said, are aimed at regulating the profession and providing stability in the financial sector for the growth and transformation of the Nigerian economy.

He noted that the improvements have been seen in moving the needle by 15th place, on the World Bank 2020 doing business. Nigeria was ranked 131 by the World Bank from a previous position of 146th.

Chairman, capital market and institution committee, Babangida Ibrahim said that a major challenge in the stock market is the task of building investor’s confidence. Most investors have lost

confidence in the market due to inability of getting returns, he said.

“Whoever invests his money is waiting for returns of investment and that is what would boost his confidence in investing.

It is investing and reinvesting that grows the stock market. Hence, when there is no investment, the market will not grow,” Ibrahim said.

He further revealed that a committee was set up to handle these issues, specifically unclaimed dividends, yet unclaimed dividends keep rising.

“To this end, by the 1st or 2nd quarter of next year, we will hold a national conference with major key players and we will talk to ourselves honestly to check what the problem is. Is it operational, policy, or legislative? If it is policy then we will call the attention of the government.

He tasked the committee to be an unofficial adviser to the government nothing they are professionals and will do well in monitoring what the government is doing as regards the policy that affects the market.

BusinessDay PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: SAMUEL IDUH ) 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

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BUSINESS DAY

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Live @ The Exchanges Market Statistics as at Tuesday 26 November 2019

Top Gainers/Losers as at Tuesday 26 November 2019 LOSERS

GAINERS Company

Opening

Closing

Change

N13.8

N14.6

0.8

MTNN UNILEVER

DANGSUGAR NB FLOURMILL FIDSON GUARANTY

Company

ASI (Points)

Opening

Closing

Change

N120

N118

-2

N17.45

N16.3

-1.15

N9.8

N9.3

-0.5

VOLUME (Numbers)

26,883.33

DEALS (Numbers)

N50.5

N50.9

0.4

N17.85

N18.2

0.35

ACCESS

N3.5

N3.75

0.25

DANGCEM

N144.4

N144

-0.4

VALUE (N billion)

N29.6

N29.8

0.2

UBA

N7.35

N7.05

-0.3

MARKET CAP (N Trn)

4,081.00 209,974,659.00 3.103 12.975

Stocks shed N74bn as profit taking continues Stories by Iheanyi Nwachukwu

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igeria’s listed stocks lost N74billion on Tuesday November 26 as some investors continued their profit taking activities at the Bourse.

As a result, the Nigerian Stock Exchange (NSE) All Share Index (ASI) decreased by 0.56 percent while the year-to-date (ytd) negative return stood at -14.47percent.

MTN Nigeria Plc recorded the highest loss after its share price moved from N120 to N118, down

by N2 or 1.67percent, Unilever Nigeria Plc also dipped from N17.45 to N16.3 losing N1.15 or 6.59percent. Dangote Sugar Refinery stock price advanced from N13.8 to N14.6, adding 80kobo or 5.80percent; while Nigerian Breweries Plc moved up from N50.5 to N50.9, after adding 40kobo or 0.79percent. While 17 stocks gained, 17 also lost.

The All Share Index closed

at 26,883.33 points against the preceding day close of 27,035.78 points while the stock market capitalisation closed at N12.975 trillion against preceding day close of N13.049 trillion.

The volume of stocks traded decreased by 8.97percent from 230.65million to

209.97million, while the total value of stocks traded decreased by 3.24percent from N3.207 billion to N3.103 billion in 4,081 deals.

The Financial Services sector led the activity chart with 143.50 million shares exchanged for N1.397 billion; followed by Consumer Goods

with 26.03million shares traded for N666million.

Though the possibility of continued sell-offs still exist, analysts expect a rebound in Wednesday’s session as investors are expected to bargain-hunt for stocks that have lost part of their value in the last two sessions.

L – R: Nandini Sukumar, chief executive officer, World Federation of Exchanges (WFE); Oscar N. Onyema, OON, chief executive officer, The Nigerian Stock Exchange (NSE); Stefan Nalletamy, director, financial sector Development Bank; Sunil Benimadhu, chief executive officer, Stock Exchange of Mauritius and Kemi Owonubi, senior transactor, corporate finance, Rand Merchant Bank Nigeria (RMBN) Limited (moderator) take a stand after speaking on a panel themed “A Global and African Perspective - How The Role of Exchanges is Evolving?” at the 2019 ASEA Conference in Botswana.

Asharami Energy targets 100,000bpd production, canvasses investment in new technology

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ontinuing investment in technology and how smartly it is deployed will be crucial to optimising opportunities in oil and gas exploration in Africa, Olajumoke Ajayi, Managing Director, Asharami Energy, has told Energy Editors at the recently concluded 37th annual international conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

Ajayi said Asharami Energy, a Sahara Group Upstream Company, had since reviewed its processes and operations to facilitate “seamless integration of emerging technology to

boost the organisation’s exploration activities across Nigeria, Ghana and Cote d’ Ivoire as Asharami is working towards hitting 100,000 bpd production milestone over the next five years.” This feat will make Asharami Energy one of the foremost oil production companies in Africa.

She said Asharami Energy’s decision to support the NAPE conference as major sponsors was in keeping with the company’s commitment to driving thought leadership, good governance and sustainability in the sector. “Asharami’s affiliation with Sahara Group, an energy conglomerate with operations and investments www.businessday.ng

in the upstream, midstream, downstream, power and infrastructure sectors continue to propel us to provide leadership in the sector. At Asharami Energy, we are transforming our operations with cutting edge technology that supp or ts remotely operated oil and gas facilities as well as new data acquisition and processing methodologies driven by supercomputers,” she stated.

Ajayi urged stakeholders in the oil and gas sector to invest in new technology to enhance productivity and the ability of operators to exploit opportunities in a sustainable manner. “Asharami

is committed to deploying emerging technologies that will enable us protect the environment and improve the wellbeing of the people in the host communities where we operate, while ensuring that our productivity is secure to match our future projections.”

While participating as a panelist at the pre-conference workshop themed; “Emerging Technologies and the Nigerian Oil and Gas Sector,” Asharami Energy’s Exploration Manager, O l a b o d e Ma t t h e w s a i d embracing new technology in upstream business had become inevitable given the volatile nature of investments in the sector.

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Global market indicators FTSE 100 Index 7,403.14GBP +6.85+0.09%

Nikkei 225 23,373.32JPY +80.51+0.35%

Generic 1st ‘DM’ Future 28,079.00USD +40.00+0.14%

Deutsche Boerse AG German Stock Index DAX 13,236.42EUR -10.03-0.08%

S&P 500 Index 3,139.23USD +5.59+0.18%

Shanghai Stock Exchange Composite Index 2,907.06CNY +0.89+0.03%

Global Spectrum grow profit by 396%, pays interim dividend

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lobal Spectrum Energy Services Plc (GSES) recorded strong improvement in its profit with investors reaping 5kobo interim dividend.

The company’s profit after tax grew by a significant 396percent to N548 million for the operational year ended December 31, 2018, as against a profit of N110.5 million accounted for in the previous period of 2017.

The company maintained the growth trend in all performance indicators with revenue growing by 72percent to close at N1.87 billion for the period under review, compared to N1.09 billion achieved in the previous year.

Profit before tax appreciated by 192percent to N596 million in the 2018 period, while the 2017 pre-tax figure closed at N204 million.

The 5kobo interim dividend is however appropriate from the third quarter operations of the company ended September 30, 2019. The nine months’ result shows gross profit for the period stood at N253.7 million, while revenue is at N1.05 billion.

The shareholders at the annual general meeting (AGM) held Monday in Lagos expressed great satisfaction at the performance of the Company, describing it as quite remarkable given the very harsh and uncertain economic condition under which businesses operate in Nigeria.

They also commended the company for the payment of an interim dividend barely 12 months after being listed on the Nigerian Stock Exchange (NSE).

According to the shareholders, the performance of the company shows that Board and management are quite focused and understands the operational dynamics of their industry of business. According to Yemi Adebayo, a shareholder, the profit growth of the company for the period being considered is quite commendable. This is more so, he said, as most organisations @Businessdayng

within the sector that GSES operates are still trying to find their feet in the very uncertain business environment. He urged the board and management to remain focused to ensure that the performance is sustained.

Also speaking, Nona Awo, in his very insightful comments commended the company for the 2018 financial performance, but cautioned that the company should manage their dividend policy very in the face capital challenges that companies currently face. He said the board should adopt a dividend policy that will enable the company build up strong reserve for future capital investment and growth.

Speaking earlier, Colm Doyle, the Acting Chief Executive Officer (ACEO) of the company said, the performance of the company was as a result of the competencies the company has demonstrated in its area of business.

He said the GSES operates in a niche but very competitive sector of the oil and gas industry; but has maintained good performance ostensibly due its policy of bringing on board the best skilled manpower.

Colm further noted that GSES operational policies are derived strictly from the needs base of the clients, which is the reason the company remains a preferred partner with the IOCs. Global Spectrum Energy Services Plc is a marine security and logistics company, with added operational competencies in energy and engineering services in the oil and gas sector. The company was incorporated in on March 14, 2006 and converted to a public limited company in 2013 in continued pursuit towards the achievement of its strategic growth objectives. The company was listed on the main board of the Nigerian Stock Exchange in 2017 and its shares are actively traded on the floor of the Exchange. It currently has over 500 shareholders in its register of members.

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BUSINESS DAY

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news Nigeria’s LPG consumption to hit 2m...

Continued from page 1

creased advocacy by stakeholders, including g ov e r n m e n t a g e n c i e s, and perceived value in the sector by investors leading to bigger push for adoption has seen many Nigerians substitute kerosene for LPG. The Nigeria LPG Summit 2019 in Lagos provided stakeholders including government officials an opportunity to reflect on structural adjustments required to further deepen adoption of LPG so that the country can dent its Paris Climate Accord goals of cutting carbon emissions by 65 percent through replacing dirty fuels.

“The current developments in Nigeria’s LPG space are paving the way for private investment capital flow into the sector and we have already witnessed the commissioning of landmark projects across the value chain, signalling strong and balanced growth,” said Nuhu Yakubu, president, Nigeria Liquefied Petroleum Gas Association (NLPGA), in his address at the event.

Some of these investments include in cylinder manufacturing by Techoil, discharge of domestic gas by the NLNG into the Niger Delta regions and the construction of new terminals.

Operators say at least terminals are in construction and new skids are being constructed across Nigeria to receive gas trucked from Lagos.

Yet, it is not all rosy for the sector. Operators say one of the biggest challenges they have is moving gas from Lagos where it is received to other parts of the country due to Nigeria’s patchwork of sketchy roads.

Billy Okoye, managing director, NNPC Retail Ltd, said that some challenges facing the sector also include

maritime security issues and incidences of insufficient or low draft of marine vessels bringing in product. This has led to overreliance on Lagos ports consequently militating against deeper adoption of the product.

There is currently a scarcity in LPG delivery in major cities in Nigeria and this could be due to competition for occupancy at jetties during product discharge. The government prioritises the delivery of petrol over LPG and vessels bearing petrol have priority access.

Okoye also said that not only is there paucity of incountry transportation infrastructure including rail, road and pipelines, there is also a lack of storage facilities and uneven spread of existing facilities across the country.

He also said that a lack of clear-cut government policy/subsidies on autogas and high cost of autogas conversion equipment are a challenge to the wider adoption of LPG in Nigeria.

A panel session discussing these challenges highlighted how the government’s decision to keep subsidy on petrol has stymied the growth of LPG. Unlike petrol, the price of LPG is not regulated and this makes LPG costlier, removing incentives for growing the autogas sector.

Global LPG production expected to rise from 250 million MT in 2010 to more than 380 million MT by 2030 and key incremental production will be from the US, a result of further exploitation of shale crude. The Asian countries account for the largest buyers of LPG in the world, operators say.

Nigeria’s LPG market has great potential for growth and development as only 5 percent of Nigerian households use LPG for their cooking needs, according to data from the NNPC.

L-R: Dapo Adekoje, president, Chartered Institute of Stockbrokers (CIS); Ibikunle Amosun, chairman, Senate Capital Market Committee; Mary Uduk, acting director-general, Securities and Exchange Commission (SEC); Babangida Ibrahim, chairman, House of Reps Capital Market Committee, and Tola Mobolurin, chairman, Capital Bancorp plc, at 23rd annual conference of stockbrokers in Lagos.

Liquidity glut won’t fuel speculative...

Govt determined to remove ...

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to increase in importance in terms of returns on investment and contribution to the economy.

He highlighted noticeable increase in investors’ interest in real estate sector. This interest, he said, is driven by increased urbanisation which has led to significant rise in demand for properties for both residential and business purposes.

The governor cited another driver of this interest as prospect of the real sector investment resulting from the projection indicating rapid population growth rate. It has been projected that by 2050, Nigeria’s population would have increased by 100 percent.

“For Lagos State, about 12 million people will be added

to the current population estimated at 22 million by 2050,” the governor said.

The implication of this expected growth is the need to develop strategic plan that will take care of the basic needs of the huge population, including shelter, food, health and education facilities.

“For us in Lagos, there is a peculiar challenge of land size. While Lagos accounts for over 20 percent of the national population, it occupies only 0.4 percent the total national geographical area,” Sanwo-Olu stated.

“This situation is even complicated by the fact that about 20 percent of the land area is made up of lagoon and oceans. With this statistics, Lagos will continue to be a major hub for real estate business,” he said. www.businessday.ng

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a decision on Tuesday to leave all benchmark rates unchanged, including the Monetary Policy Rate (MPR) at 13.5 percent; Cash Reserve Ratio (CRR) at 22.5 percent, Liquidity Ratio (LR) as well as the Asymmetric corridor around the MPR at +200/--500 basis points.

Emefiele said the CBN is confident of the outcomes of its monetary policies so far and therefore does not see any immediate compelling reasons to adjust rates.

Such policies, he said, include current policy on loanto-deposit ratio, which has resulted in loans and advances rising by over N1.1 trillion between June and October 2019 and helped in boosting credit to the agricultural and manufacturing sectors, hence the positive outcome on the GDP. “We are going to appeal to the banks to continue to work harder and grant loans to the private sector, particularly the agriculture and manufacturing sectors,” the governor said.

He also expressed the MPC’s hope that the loanto-deposit ratio (LDR) initiative is sustained as interest rates being paid by borrowers have so far dropped by up to 400 basis points between June and October 2019.

These have happened with corresponding decline in non-performing loans (NPLs) to 6.5 percent at end-October 2019.

Addressing the press on the outcomes of the twoday MPC meeting in Abuja, Emefiele raised concerns on rising inflation, which he attributed to soaring food prices, but was confident that recent policies were good enough to quell the trend in near term.

Headline inflation (yearon-year) saw an uptick from 11.24 in September to 11.61 percent in October 2019.

Emefiele said this was

anticipated as part of the seasonal end-of-the-year uptick in prices, though was further accentuated by the border closure, an expected temporary food supply shock which he was confident would adjust over the medium-tolong term as the economy increases investments in food production.

“The CBN’s continued intervention in the agricultural sector is expected to improve medium-term food supply,” he assured.

But analysts are sceptical about the direction of the foreign exchange and external reserves.

“G i v e n r e c e n t p r e s sure on inflation, it was always something of a forgone conclusion that the MPC would hold the MPR steady,” Razia Khan, managing director, chief economist, Africa and Middle East Global Research, said. “ The real question is around whether investors will be appeased by the messages on the FX rate. Is there tolerance for FX reserves going down as well as up, and will investors ‘buy’ the CBN’s message around the ongoing commitment to FX stability?

We think, for now, these messages are received clearly by all stakeholders,” Khan said.

The Nigerian land borders were closed to address the incidence of increased crossborder banditry, smuggling and dumping, insurgency and the illegal trade practices of neighbouring countries whose economies had become dependent on Nigeria through smuggling through the borders. He said MPC members who unanimously voted to keep the rates were conscious that, while tightening may encourage capital inflows, it also has the downside consequence of constraining the already nascent recovery in output growth.

The committee also noted

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that a reduction in the policy rate will improve growth prospects, but in view of the uptick in inflationary pressures, it decided that the balance of risks was in favour of protecting price stability.

“Considering the recovery, decline in market interest rates, growth in domestic credit amongst other positive developments, the Committee felt that there would be more gains in the short to medium term in holding policy at its current position,” he explained.

Emefiele said MPC members believe that sustaining the MPR at its current level is crucial for better understanding of the unfolding impetus of growth before deciding on any probable variations.

“They also think that holding current policy position offers pathways for appraising the effect of the heterodox policies to encourage lending by the banking industry without varying the policy rate as the downside risk to growth and caution on inflation looks stable,” he said.

“The MPC is also of the view that the improvements in the macroeconomic indicators such as the GDP, NPLs, capital adequacy ratios (CAR), and the LDR suggest that current monetary policy stance is yielding results. It, therefore, feels that maintaining the current stance would be necessary in order to sustain the improvements,” he further said.

Emefiele also reiterated the committee’s call on government to urge the Pensions Commission to improve the prudential requirements for the over N9 trillion pension funds to refocus their investment portfolio away from their traditional choice of government securities in favour of other viable long-term investments in real estate, manufacturing, agriculture, and infrastructure.

But he raised the need for strong visibility of fiscal and structural policies to improve infrastructure and investment conditions in the economy. @Businessdayng

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protect.

“Above all, volume of the fees payable to the recovery agents which in all cases is contingent upon recovery has never been a subject of executive contention in this matter. It does not accord with reason and logic for the Federal Government of Nigeria to overlook, forgo and condone loss of $64bn on account of meagre 5 percent fee payable upon recovery,” the minister said.

It would be recalled that three oil producing states of Bayelsa, Rivers and Cross River filed an action in the Supreme Court on 27th April, 2019 praying, among other things, for immediate recovery and payment of “all outstanding statutory allocations due and payable to the plaintiffs”.

On 19th January, 2018, Trobell International (Nig) Ltd forwarded proposal to the Office of the AttorneyGeneral of the Federation requesting to be engaged as an agent to recover diverted proceeds of the governments of Nigeria due from the share of profit oil under the various Production Sharing Contracts made pursuant to Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act CAP D3 Law of the Federation of Nigeria 2004.

Following the approval for Trobell International (Nig) Ltd to undertake the task on April 12th 2018, the company engaged the services of lawyers, engineers, financial experts and petroleum experts nominated by the three state governments.

Wednesday 27 November 2019

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NEITI on course to ensuring corporate data management, disclosure ENDURANCE OKAFOR

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or public interest companies and sectors such as Nigeria’s oil, gas and mining sector, etc., data disclosure, standard implementation, among other issues, can present great opportunities as well as significant challenges.

Concerning regulatory oversight, data management and regulation could encounter difficult decisions.

Finding the right balance between the ‘duties to disclose’ against ‘pressure to disclose’ dilemma is not easy. If done right, such milestones are a great way to raise visibility within the investment communities. If done wrong, the consequences may be severe.

It is in forging the paths for streamlining the above factor and every other regulatory compliance concerns that Mark Robinson, Head of International Secretariat of Extractive Industries Transparency Initiative (EITI) based in Oslo, Norway, is in Nigeria.

In a meeting in Abuja with Zainab Shamsuna Ahmed, minister of finance, Budget and National Planning, Robinson said he was in Nigeria to meet with stakeholders in the extractive industries and Civil Society Organisations (CSOs), to relay some priorities on how NEITI

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in Nigeria has worked with data and systemic disclosure, and how the ministry is using NEITI data for inclusiveness. “I am here to meet with NEITI and to see how it works, how both NEITI and EITI can work together with right information, and how capacity building can be shared,” he said.

Robinson, who is in Nigeria to access the level and impacts of EITI implementation in the country, is also here to review progress so far made by Nigeria in the implementation of EITI standards as part of the overall on-going reforms agenda in Nigeria’s oil, gas and mining sector.

Talking about NEITI in Nigeria and the need to ensure revised standard on systematic disclosures, he said by 2020 all information about business in the sectors must be disclosed and transparent.

Responding Ahmed said NEITI has been working to ensure more data update so that the government can use such data for development purposes. Expressing her happiness for the visit, she said she was also happy with EITI’s effort to empower more sectors. She said that due to environmental differences, Nigeria has realised that just following international protocol would not be enough.

NCAA cautions pilots, operators on harmattan haze IFEOMA OKEKE

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n its resolve to ensure safe flight operations in Nigeria airspace, the Nigerian Civil Aviation Authority (NCAA) has issued Advisory Circular to intimate pilots, operators and other stakeholders about dust haze (harmattan) and safety approach to adopt.

This Advisory Circular AC: NCAA-AEROMET-28 dated November 12, 2019, is intended to alert pilots to the hazards associated with dust haze, which is a dry and dusty wind that blows south from the Sahara across Nigeria. This situation is expected to persist till March, 2019.

As issued by the Nigerian Meteorological Agency in its Seasonal Rainfall Prediction Bulletin-2019, the cessation of the rainy season is predicted from mid-October (in the Northern part) to early December, 2019 (in the Southern part).

With the issuance of this circular, Advisory Circular AC: NCAA – AEROMET 27 dated March 26, 2019, is accordingly cancelled.

In a statement issued by NCAA, it stated that pilots and operators are therefore directed to note the following hazards and operational problems forthwith:

“Air-to-ground visibility may be considerably reduced due to dust haze; aerodrome visibility may fall below the prescribed operating minima and in severe conditions, dust haze can blot out runways, markers and airfield lightings over wide areas making visual navigation extremely difficult or impossible; and lights are bound to be delayed, diverted or cancelled where terminal visibility falls below the prescribed aerodrome operating minima.”

On the other hand, the authority enumerated series of responsibilities for Pilots, Operators and Air Traffic Controllers: “Pilots shall exercise maximum restraint when severe weather condition is observed or forecast

by Nimet; flight crews/operators and air traffic controllers (ATC) shall ensure adherence to aerodrome weather minima; all Pilots shall obtain adequate departure, en-route, destination and alternate aerodromes weather information and briefing from the aerodrome meteorological office prior to flight operations; and operators shall ensure that necessary measures are put in place to cushion the effects of flight delays or cancellations on their passengers.

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FG signs MoU with Sasakawa Africa to curb post-harvest losses Cynthia Egboboh, Abuja

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he Federal Government on Tuesday signed a memorandum of understanding (MoU) with Sasakawa Africa Association (SAASG2000) to curb the current menace of post-harvest loss as well address other concerns in the Nigerian agricultural sector.

Sabo Nanono, minister of agriculture and rural development, in a statement signed by Theodore Ogasiechi, director of information in the ministry, said the collaboration with Sasakawa would focus on transfer of appropriately tested and acceptable knowledgeable know-how and technological package on selected agricultural commodity value chain.

“This collaboration would benefit commercially oriented smallholder farmers, particularly women and youths, while ultimately improving the country’s agricultural productivity and production, food security and nutrition among others,” he said.

The minister pledged the federal government’s support for Sasaakwa initiatives in Nigeria, which he said were in line with President Muhammad Buhari’s Next Level Agenda of

achieving food security and economic growth in Nigeria.

Ichiro Kabasawa, executive director, NIPPON Foundation, said the organisation would lead in influencing inclusive transformation of Agriculture in Africa.

“NIPPON Foundation is Japan’s largest private philanthropic organisation and major financing institution backing Sasakawa. The effort will help in empowering smallholder-farmers and sustaining increased productivity and income in response to market demand”.

Kabasawa speaking further said that Nigeria should increase its investments in nutrition to secure the health and well-being of mothers and children for a better economic growth in the country.

“In December 2018, the programme promoted demand-driven and value chainoriented curriculum in 26 institutions, including 24 universities and two agricultural colleges across nine African countries,” he said.

“In 2019, the organisation made a strategic shift that allowed it to make interventions more effective and efficient with better synergy and coordination.”

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CORRECTION OF NAME

My name was Wrongly written as Umaru Hammed on my Bank Account instead of Hamman Umar. Now wish to be known and address as Hamman Umar. All former documents remain valid. Banks & General public should take note. www.businessday.ng

L - R : S a d e M o r g a n , c o r p o r a t e a ff a i r s d i r e c t o r, N i g e r i a n B r e w e r i e s p l c ; J o r d i B o r r u t B e l , chief executive, Nigerian Breweries; Babajide Sanwo Olu, governor, Lagos State; Obafemi Hamzat, deputy governor, Lagos State, and Folasade Jaji, secretary to the state government, Lagos State, at a courtesy visit by Nigerian Breweries management team to the Governor’s Office in Alausa, Ikeja, Lagos.

Hate speech bill to suffer setback in House of Reps James Kwen, Abuja he proposed ‘Hate Speech Bill’ currently before the Senate which, among others, stipulates death penalty for offenders, will suffer a setback in the House of Representatives when transmitted for concurrence.

Dachung Bagos, member representing Jos South-Jos East Federal Constituency of Plateau State, gave thisindications while briefing journalists after submitting a letter of a protest titled: ‘Rejection of the proposed legislation on hate speech

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protection from Internet falsehood and manipulation,’ from his constituents to the Senate.

Bagos, who lamented that the bill sought to breach the fundamental rights of Nigerians as guaranteed by the 1999 Constitution (as amended), said the bill would be dead on arrival in the House.

While stressing that half of pressmen would be in jail when the bill is passed into law as envisaged by its promoters, he said, “Nigeria does not require such a draconian and tyrannical

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law in the 21st Century, as there are existing laws that address such issue raised in the proposed bill.

“I humbly write in view of the above subject matter, having received series of complaints and objections via text messages, calls, emails, WhatsApp messages and direct contact with some of my Constituents who are aggrieved and had to express their concerns over the Hate Speech and Protection from Internet Falsehood and Manipulation Bills, currently undergoing passage into law by the Senate, the Federal Republic of Nigeria. @Businessdayng

“The views expressed by my Constituents, many Nigerian citizens and even foreign nationals who have reached me, all voiced out against the passage of the two Bills.

“The views so expressed align with my thoughts and position as the Honourable Member, Representing Jos South/Jos East Federal Constituency, Plateau State.

More so that there are extant laws in our Jurisprudence and under the Law of Tort like the Defamation of Character, Libel and Slander, that address the concerns raised by the two Bills.

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Wednesday 27 November 2019

BUSINESS DAY

Railway project: Lagos closes Ilupeju bypass, others JOSHUA BASSEY ofacilitateongoingmodernisation of the Lagos-Ibadan railway project, which extends to Apapa, the Lagos State government will be shutting the temporal level crossing at Post Office, Agege, by midnight of November 27, 2019.

Recallthatatemporalroadwas created to ease traffic congestion on the corridor during Ashade levelcrossing,whichhasnowbeen opened to traffic.

Based on this development, motorists are advised to revert to Ashade level crossing road to ensure free flow of traffic.

Similarly, the state government is commencing works on the Ilupeju bypass road by midnight of Tuesday, November 26, 2019, and will reopen the road for use on Friday, November 29, 2019.

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As a result, alternative routes have been created for road users driving from Oshodi to Ilupeju.

They would be expected to go through Oshodi Interchange Terminal 1, or through Oworonshoki ExpresswaytoconnectTownPlanning Way. In the same vein, motorists driving from Mushin to Ilupeju are to make use of Vono/Olohunshogo axis to link Majolate

by Ogunmokun Toll gate area/ KayodeStreet,tolinkOyewoleand Tinubu Road. Also, any one moving to Mushin would utilise the same route but use Ogunmokun Street to access Oloosa or Olateju Street through Vono to Agege Motor Road.

The government has therefore appealed to the public to cooperate, as he was taking steps to create properroadinfrastructurethatwill ultimatelyimprovethetrafficsituation of the state.

Maduka nominated for Nigeria Entrepreneurs Award IFEOMA OKEKE

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n December 1, 2019, Godwin Maduka will be among the personalities that would be decorated by the Nigeria Entrepreneurs Award.

Maduka,whowasnominated for the award following his vital contribution to the growth of the Nigerian economy, is the CEO/medical director of Las Vegas Pain Institute and Medical Centre, the largest pain treatment centre in Nevada, US. Others to be honoured at the Ball Room of the Oriental, Lagos, are the Governor of Sokoto State, VIP Express Tourism, Bosak Microfinance Bank, Odibola Properties, Ecobank Nigeria, EchoStone Nigeria, Elizabeth Jack-Rich, Sen Annie Okonkwo, Covenant University, Farm Konnect, DPKay Homes & Property, AGL Consulting, Greenville, Richway MFB, Ebele Iyiegbu, Ogechukwu, Alexis Obah, CCC International

Engineering, Seahorse Lubricant, among others.

This year’s edition of the Award, which is the sixth in the awardseries,holdswiththetheme: Building a Prosperous Nation; MSME as an Economic Force promises to be a world class event that will leave all those who attend withalastingimpressionandbusiness relationships that will change their businesses for the best.

Godwin Maduka is a man who has touched countless numbers of lives through his direct intervention and investments made in building a functional society, silently, outside the glare of the media.

Despite his celebrated success and global exposure, has attributes nothing to his abilities but credits God for all that he has become and all that he is doing.

Maduka is a renowned authority in the field of medicine, with triple doctorate degrees in Anesthesiology, Pain Management and Surgery.

SPAR delights shoppers with discounts this Black Friday

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igerians from all walks of life stormed SPAR Nigeria retail stores as the 2019 Black Friday sales kicked off at all its outlets across Nigeria. Customers were delighted making purchases with great discounts from a wide range of quality products, which include food, grocery, meats, wine and spirits, electronics, home appliances, laptops, mobile phones, watches, clothes, perfume and many other essentials for individual and family use.

A customer, Ayorinde Bayode, said, “The Black Friday of SPAR makes a lot of difference for customers because of the discount. As a regular customer of SPAR, I have always been enthralled by the quality products available and the excellent Customer Service that is given.

SPAR is a great place to shop and I decided to wait till today because I will be able to shop more at great discounts.”

Another customer, Funmi Olawuyi appreciated SPAR for Black Friday, saying, “I will want to appreciate SPAR for coming up with this laudable initiative in Nigeria. Black Friday is a

good period for shopping; we get products at good rates. In fact, it would be a great value addition if we have Black Friday every month.”

In her comment also, Oluwatoyin Ladipo, a grandmother, excited to be a part of the shopping spree, said, “We cannot thank SPAR enough for making life easy for Nigerians at Black Friday. The shopping ambience, the quality of products that are available coupled with the discount makes SPAR a worthy place to shop always.”

The 2019 SPAR Black Friday Sales will continue until the 30th of November 2019 across all the brand stores located in Lagos, Abuja, Enugu, Calabar and Port Harcourt. The brand provides the biggest save as their prices are always competitive.

SPAR is renowned for supporting noble Nigerian projects that have built the capacity of Nigerian through various laudable initiatives. The brand with the maxim, “My Nigeria, My SPAR” has enhanced the quality of lives of Nigerians through all her touch points, while demonstrating her ethos for the country. www.businessday.ng

PEBEC honours young public servants at Future Awards Africa 2019

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s part of its promise to remove all regulatory obstacles and ensure that Nigerian businesses thrive, the Presidential Enabling Business Environment Council (PEBEC) endowed the Prize for Public Service at the 14th edition of The Future Awards Africa held Sunday, November 24, in Lagos.

This category, which was won by Adetola Onayemi, is given to a technocrat who has made an outstanding contribution in the public service sector within the year in view (excluding in politics).

Adetola designed the firstever Trade Remedies Infrastructure for protecting the Nigerian economy from injurious and unfair trading practices from foreign countries and companies.

In recognition of the commitment required to transforming public service delivery in the country, the head of the Enabling Business Environment Secretariat (EBES) and special adviser to the President on Ease of Doing Business, Jumoke Oduwole, lauded all the nominees, while also emphasising the mandate of the Council

to make “business work by changing the face of governance in Nigeria.”

She also highlighted the importance of the Presidential Enabling Business Environment Council’s reportgov. ng app, which aims to help citizens resolve complaints against regulatory bodies and public officials within 72 hours by using the web and mobile applications available for download on all mobile devices.

Described by the World Bank as the ‘Nobel Prize for Young Africans,’ The Future Awards Africa celebrates inspiring, young Nigerians changing the African narratives and making impact through their initiative, skill and creativity, thereby raising responsible citizens with the desire to achieve and create better communities.

Since its establishment in 2016, the PEBEC has successfully implemented over 140 reforms that continue to make doing business easy across the country by removing bureaucratic obstacles, and reducing the time, cost, and procedures required to start and run businesses in Nigeria.

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Sanwo-Olu leads walk against domestic violence JOSHUA BASSEY

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overnor of Lagos State, Babajide Sanwo-Olu, on Tuesday led the walk to condemn the growing incidence of domestic and sexual violence, promising to wield “the big stick” on perpetrators in the state.

Governor Sanwo-Olu added that his administration would support the police and the judiciary to ensure the crime was brought to the barest minimum.

Sanwo-Olu, who addressed journalists after the “walk to commit and act” rally organised by Domestic and Sexual Violence Response Team (DSVRT) of the Ministry of Justice, said the government was also commemorating the day in line with United Nations’ declaration against gender-based violence.

According to Sanwo-Olu, the state is collaborating with the police and all relevant agencies to bring the crime to zero point.

He warned that no offender would go unpunished, adding that rape, domestic violence and child abuse were crimes and must be treated as such.

“Lagos state government

through the ministry of justice and other arms of the government, deem it fit that we need to have this walk to further confirm and to indicate our full support for advocacy around the talk of child abuse, the advocacy around rape, against women and girl, the talk around domestic violence, sexual violence and all other vices that are around abuse of children.

“Our government by this walk confirms that we are totally against it, we stand against everything about this issue and we are going to ensure that we have zero tolerance against it,” he said.

“We are using this advocacy to warn and to tell people to desist because the full arm of law will be brought to bear on anybody or institution found wanting in any form,” he said.

He encouraged victims of these crimes to open up to the relevant authorities to enable the government take up such issues.

According to Sanwo-Olu, “It is about time we lived in a civil society and we need to end and ensure that people end the silence. Come forth if anything happens, speak up, and you can be rest assured that you’ll be protected and the government will take up your issue.

L-R: Olumide Akpata, managing partner, Templars; Ebele Ikpeoyi, executive associate, Bloomfield Law Practice; Ayuli Jemide, managing partner, Detail; Christine Sijuade, partner, Udo Udoma and Belo Osagie; Fola Akande, company secretary/chief council, West Africa, Cadbury; Seni Adio, managing partner, Copley Partners; Theodora Kio-Lawson, manager, legal business, BusinessDay Media Limited; Osaro Eghobamien, managing partner, Perchstone and Graeys; Olubunmi Fayokun, partner, Aluko and Oyebode; Asue Ighodalo, founding partner, Banwo and Ighodalo; Kubi Udofia, managing associate, Babalakin and Co., and Frank Aigbogun, publisher/CEO, BusinessDay Media Limited, at the BusinessDay legal business advisory board inaugural meeting in Lagos. Pic by Olawale Amoo

Providing right care, at the right time, in right place curbs death of premature babies - experts MICHAEL ANI

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roviding the right medical services, at the right time and in the right places could help in solving the high prevalence of death of premature babies in Nigeria, medical experts say.

The experts, who spoke at a conference organised by the Neonatal Unit of Paediatrics Department in conjunction with the Paediatric Nurses of the Lagos University Teaching Hospital (LUTH), to commemorate World Premature Day celebration recently, said saving premature babies was very possible, if the right things were done.

Emphasising on the theme of the 2019 World Paediatric Day (WPD), “Born Too Soon: Providing the right care, at the right time, in the right place,” they explained that despite

… as Nigeria ranks 3rd largest on pre-term births the advancement in medical care, prematurity remained the leading cause of death in children under five years, hence the need to carry out intensive sensitisation on the issue.

“Statistics have shown that more than 60 percent of delivery that occurs in Nigeria happens either at home or traditional centres, not at a health facility, hence when they deliver in such places, and it’s a preterm baby, they lose hope thinking these babies won’t survive,” said Beatrice Ezenwa, consultant neonatologist/paediatrician at LUTH and a senior lecturer at the College of Medicine at the University of Lagos.

“Even when they decide to bring them in, they bring them in conditions that might not favour their survival,” she said.

Ezenwa explained that ad-

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ministering the right care medical facility at the right time and in the right place helps in curbing the death of babies born prematurely.

With 15 million babies born prematurely on an annual basis across the globe, Nigeria took the 3rd spot among countries having the highest number of premature births, with about over 800,000 of such births, according to 2014 data by the World Health Organisation (WHO).

Nigeria was also ranked third among countries of the world as having the greatest number of neonatal deaths per year with about 240,110 deaths per annum, accounting for about 9 per cent of global neonatal deaths. Of the leading causes of neonatal death in Nigeria, prematurity accounts for @Businessdayng

the largest chunk at 33 percent.

However, cases of premature deaths are not peculiar to Nigeria alone as data show that countries such as India, China, and even advanced nations such as the United States, are faced with similar issues.

Funmilayo Yusuf, a senior registrar at LUTH, explained that at times, the exact cause of a premature birth is unknown. She, however, identified four main factors that may cause premature labour, which are: being pregnant with more than one baby; bleeding or other problems with the uterus, stress, and lastly infection in the uterus or elsewhere in the body.

According to Yusuf, the degree of prematurity, in most cases, directly correlates with the extent and severity of acute medical conditions.

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Uber’s ban in London holds lessons for e-hailing industry regulation in Nigeria ENDURANCE OKAFOR

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ber, an American multinational ride-sharing company, will not be granted a new licence to operate in London after repeated safety failures, Transport for London(TfL) said onMonday.

The firm now faces a permanent ban from the capital over a “pattern of failures,” including putting passengers’ safety at risk.

The regulator said the taxi app was not “fit and proper” as a licence holder, despite having made some positive changes to its operations.

Uber initially lost its licence in 2017 but was granted two years extensions, the most recent of which expired on Monday.

Helen Chapman, director of licensingatTransportforLondon, said: “Safety is our absolute top priority. While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured.”

According to Nigerians in the diaspora, the ban on the e-hailing company in a more civilised city like London should be an eyeopener for Africa’s most populous nation in reviewing the industry regulation to ensure the safety of

its citizens.

“If Nigeria value lives, especially that of its women, it should look into regulating that industry because I can tell you for free that here in the UK people have had ugly experience using the taxes,” Demola Akindele, a Nigerian businessman based in London, told BusinessDay on Tuesday.

With its entrance into the African market and unavoidably Nigeria, e-hailing companies like Uber and Bolt (formerly Taxify) haveenjoyedgoodwill,fast-paced growth and adoption. Factors such as the gradual accessibility and affordability of data services and mobile devices contributed to this growth.

However, issues of security and safety just like it is in other parts of the world have remained a key challenge and even worse in Africa’s largest economy where the young industry is not much regulated like in the UK. “The problem we have in the country is that there is no policy to regulate some of these e-hailing companies, that is why all of them are operating with their foreign laws in Nigeria, robbing us of our Constitution,”Ayoade Ibrahim, the nationalpresident,NationalUnion for Professional E-hailing Drivers and Partners (NUPEDP), said.

NUPEDP is an association

formed recently by drivers and partners, who are the major supplier of logistics in the e-hailing industry in Nigeria. The association recently focused on issues around price war of the e-hailing companies, which they said was at the expense of drivers, saying it left the drivers with ridiculous low earnings.

NUPEDP represents the over 14,000 drivers all over the country, affiliated to the Trade Union Congress (TUC) and registered under the Ministry of Labour and Productivity.

Earlier this year, the Lagos State Ministry of Transportation threatened to shut down the activities of ride-hailing company Uber in the state.

Ladi Lawanson, commissioner for transportation, noted while speaking at a stakeholders’ forum organised by the Ministry recently that the company risked its operations being grounded should they fail to comply with regulations.

“They have been in operating in Nigeria for quite some time now, they have not registered to do business in the country and are yet to pay one kobo of tax in Nigeria. As regards Lagos State, they have refused to be regulated and have also not paid any tax,” Lawanson said.

David O Fakeye receives Anglican Communion Award

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t was a serene and spiritfilled worship, a combination of classical and contemporary music, prayer, love, sharing and evangelism, when David Olugbade Fakeye, a professor of English Language and Literature Education in the Faculty of Education, Arts and Social Sciences, University of Ibadan, on Sunday bagged a distinguished award.

The award came as a result of his love for service to humanity, education, sharing the good news of Jesus Christ and striving for spiritual, intellectual and physical wellbeing of individuals and wholesomeness of communities, courtesy of the Diocese of Ibadan South (Anglican Communion) –

Adeyinka Adegbite Memorial Anglican Church (AAMAC) Oluyole Estate Ibadan, Nigeria, at their 2019 10th Year Adult Harvest Anniversary thanksgiving.

The vicar/archdeacon of AAMAC, Isaac Adeyemi Jesulola, noted that the harvest anniversary and award presentation is to adore God’s faithfulness in our lives, honour Him faithfully with the resources He has blessed us with, and serve Him diligently all the days of our lives, as our God is ever faithful (Heb 6:10) The awardee, Fakeye, said the award is dedicated to God and humanity, also added that service to humanity is essential to give to others and

consider their welfare as much as your own, also God expects us to serve Him through humanity, our Christian life is a life of service and sacrifices – There is reward for whatever we do here on earth for the sake of Christ, - Heavenly reward does not depend only on our salvation but also on our good deeds – No one should be neglected when it comes to doing good works – Little is much when God is in it, also, quoted Psalm 100:5 – “For the lord is good, His mercy is everlasting and His truth endures to all greatness” Fakeye is presently the president, Young Men’s Christian Association of Nigeria, Ibadan.

Platform to check crimes among domestic staff to be launched Modestus Anaesoronye

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n online community policing platform, CheckMyPeople Limited, has identified one of the greatest risks households in Nigeria face today as dependence on unknown and unverified persons for domestic services.

A representative of CheckMyPeople, Chudi Obiofuma, notes that Nigerian households employ domestic staff to help with many tasks, and can afford to have on average two to three domestic staff working for them in one capacity or other. Job responsibilities include; Drivers, Cooks, Maids, Nannies, Security Men, Gate Keepers, Child Minders, Lesson coaches, etc.

According to Obiofuma, the way employers recruit people

is usually by word of mouth, and not based on any data or documentation. People are usually employed through an informal process of referrals, where a family will request the services of a person or agency to search then present candidates for screening and employment, often for a significant finder’s fee plus expenses.

These families, he maintained, rely on the words of these middlemen and women and have no way of independently verifying the information provided to them. Consequently, most families have been disappointed with the quality of services provided by their domestic staff, and some have been subjected to theft, job abandonment, poor services, incompetence, and in extreme cases, physical harm to their families like poisoning,

kidnapping and even murder.

He also noted that we as employers do not communicate with others, this “wall of silence” is the reason these criminal elements posing as domestic staff can move from home to home, committing crimes, as there are no records of such crimes available to prospective employers.

Thus, someone is able to commit a crime in one home, gets fired and quickly get a job in another home under a new name. With no knowledge of their past, the unsuspecting family bring them in and they are able to commit even more serious crimes. As currently practiced he maintained, employers have no way of determining who these people are, where they have worked, what they have done in the past and if they have a criminal past.

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Wednesday 27 November 2019

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news

Bankers’ Committee celebrates World Savings Day HOPE MOSES ASHIKE

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he Central Bank of Nigeria (CBN) and the Bankers’ Committee of Nigeria, on Thursday, October 31, 2019, joined the rest of the world to commemorate the World Savings Day. Themed “Savings Give Life a Lift”, the engagement events across 565 local governments, reached over 80,809 students in 642 schools to increase public awareness and empower them with information on the importance of building a good savings culture, both for their financial future, as well as encouraging a sense of discipline and planning.

This initiative also encompasses the CBN AND the Bankers’ Committee’s drive to bridge financial literacy and inclusion, particularly for children in Nigeria. As part of activities marking the 2019 World Savings Day, Bank CEOs and their employees visited schools across the country to tutor and mentor students and youths on the transformative power of imbibing a good savings culture.

Speaking on the initiative, Emeka Emuwa, chairman, Financial Literacy and Public Enlightenment Sub-Committee

(FLPE), said, “The importance of educating young Nigerians on the benefits of a good savings culture cannot be overemphasised. We are proud to see the financial institutions in Nigeria take up the task of mentoring, educating, and empowering young Nigerians with critical information on building a savings culture, and increasing awareness on the importance of earning, managing and saving money in order to have a secure future. Many of these students are our future Bankers and as such we will continue to develop programmes and activities that will further empower them.”

Financial inclusion is a constituent pillar of the Bankers’ Committee mandate, making initiatives like this critical to the goal of increasing the number of financially included citizens in the country. The World Savings Day is observed annually across the globe to raise awareness on the importance of building a good savings culture, aimed squarely at ensuring the next generation is empowered with important financial awareness and literacy, needed to enhance economic prosperity and continue to improve poverty reduction.

Nigeria to save $1.2bn on dairy MoU with Netherlands Tony Ailemen, Abuja

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igeria will be saving about $1.2 billion annually from milk importation from a memorandum of understanding (MoU) it signed Tuesday with the Netherlands on dairy chain development.

The agreement was signed betweenRoyalFrieslandCampina WAMCO and the government of Niger State.

GovernorAbubakarSaniBello of Niger State signed on behalf of the Nigerian government, while Ben Langat, managing director, FrieslandCampina WAMCO plc, signed on behalf of the Netherlands President Muhammadu Buhari and Prime Minister Mark Rutte had earlier met behind closed doors at the Presidential Villa, Abuja, to discuss bilateral relations and agreed that Nigeria

and the Netherlands would continue to work together to improve bilateral trade volumes as well as private sector investments.

A communiqué issued at the end of the meeting said the two leaders reviewed the progress that has been made with implementing the Memorandum of Understanding on deepening the bilateral relations between the two nations concluded and signed by the respective Foreign Ministers in The Hague in July 2018. ‘‘We welcome the steps that have been made to increase bilateraleconomiccooperationand are happy to see higher levels of bilateral trade volumes as well as private sector investments, ’’ the communiqué signed by Nigeria’s Ambassador to the Kingdom of Netherlands, Oji Ngofa and the Deputy Head of Mission, Netherlands Embassy in Abuja, Ewout-Jan de Wit said.

NSACC to hold November 2019 breakfast forum

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he Nigeria-South Africa Chamber of Commerce (NSACC) will hold its November 2019 Breakfast Forum scheduled for Thursday, November 28, at the Fantasia Hall, Eko Hotel and Suites, Victoria Island, Lagos, by 7.30am prompt. Guest speaker for this month’s edition is Godwin Adama, the Consul General of Nigeria to South Africa.

He will share insights on the topical issue: “Nigeria–South Africa What Next? in our ever evolving Society.

The executive secretary, Iyke Ejimofor, states that the event is primarily for captain of industries, business owners and top level executives as well as other interested parties.Headdsthatthechairman of the Chamber, Foluso Phillips and other executive directors are expected to attend the forum. He

further notes that as in previous times, this edition will be educative and also insightful.

Ejimofor, on behalf of the Chamber, encourages everyone whowantstogrowandstrengthen his or her business or gain insights on how to thrive globally should make effort to attend. He expresses that the meeting is a “great door opener and participants will benefit in many ways, including: finding personal contacts for future follow up and initiate new vendor relationships, and so on.

Since the inauguration of the Nigeria-South Africa Chamber of Commerce in the year 2000, the bilateral relation between both countries has grown tremendously. The Chamber has been a veritable economic tool responsible for the increment in trade betweenNigeriaandSouthAfrica. www.businessday.ng

TotalPrenuers graduates 60 young Nigerians in Osun OLUSOLA BELLO

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o fewer than 60 young Nigerians were Tuesday graduated from TotalPrenuers programme in agriculture and vocational skills in Osun State, sponsored by Total Upstream Companies in Nigeria.

The youths, selected across the nation, were the fourth batch of the Total upstream graduating students trained in agriculture and vocation skills.

The 60 young Nigerians were trained under a programme tagged “TOTAL premiere at OFFERcentre Institute of Agriculture, Oluponna, in Iwo Local Government Area of Osun State, which 30 students were trained in agriculture, 30 on vocational skills.

Speaking at the graduation ceremony, Mike Sangster, managing director, Total Upstream Companies in Nigeria, said the youths were drawn from all the six geo-political zones in the country for the training.

Sangster, who was represented by Vincent Nnadi, executive general manager, CSR and Medical Services, said under the agric programme, 30 youths were trained in fish farming, animal husbandry, pottery, crop production, among others.

He said the remaining 30 were trained in catering and

hotel management, event management, photography, arts and crafts, among others, saying the youths also received training in Entrepreneurship, Business Management, Computer Appreciation, Accounting and Marketing.

The Total boss said the company had trained over 240 youths at the Institute with more than N100 million invested in the training.

According to Sangster, Total came to OFFERcentre in 2016 and since then Total had invested over N100 million in partnership with OFFERcentre, “And by this, we have transformed 240 young men and women from being applicants and job seekers to entrepreneurs and employers of labour,” He said the training of the youths was in furtherance of Total CSR, as part of the company’s Deep Water Operations, noting that Total would monitor the youths, as the successful ones among them would receive further support to help grow their businesses.

In his remarks, Macarius Olatunji, the Rector of the Institute, said the youths were the fourth set graduating from the centre since 2016, saying the 60 graduating youths brought the total number of trained youths to 240 since inception.

FG calls for private-sector input for success of finance bill David Ibidapo

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he Federal Government of Nigeria through the ministry of Finance, Budget and National Planning on Tuesday called for private inputs and collaboration to ensure the success of the Finance Bill recently approved by the Senate, while promising that it would be an annual exercise going forward.

This was brought to the noticed of the public through Zainab Ahmed, the minister of finance, who spoke at the PwC executive session on finance bill and tax strategy held on Tuesday.

According to her, making the finance bill an annual exercise would create a platform for sustainable tax practice that would be beneficial to all stakeholders involved and will also put a stop to static laws governing the tax and finance system of the country.

“Finance bill will henceforth be an annual exercise with a window to consider feedback from on-going dialogue with key stakeholders, including the private sector.

“I encourage everyone to engage in the dialogue process to provide construc-

tive feedback that will enable us to build a tax regime that stabilizes the economy, promotes equity, drives economic growth and protects our vulnerable citizens and businesses,” she said.

The finance bill which was submitted along with the 2020 budget proposals and 2020 appropriation bill midOctober aims to achieve five major objectives: to improve the business environment, increase revenue and create a sustainable path to a growing economy.

The bill seeks to promote Fiscal Equity by mitigating instances of regressive taxation, reforming domestic tax laws to align with global best practices, introducing tax incentives for investments in infrastructure and capital markets, supporting micro, small & medium-sized businesses (MSMES) in line with the ease of doing business reforms and raising revenues for government to fund the 2020 budget.

Speaking on the economy and revenue generation, she said the Nigerian economy is bedevilled by structural challenges which limit its ability to sustain economic growth, create more jobs and achieve significant poverty reduction.

L-R: Wole Falana, EY alumni; Michael Ayo Oni, EY alumni; Henry Egbiki, EY regional managing partner (West Africa); Abimbola Lasebikan, EY alumni, and Dave Uduanu, EY alumni, at the EY Nigeria Alumni Reunion Dinner in Lagos.

Africa is poor because its leaders chose that path - Lumumba MICHAEL ANI

…as Moghalu calls for change of mindset in selecting leaders

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largely on grants and aids from the advanced countries of the world.

According to Lumumba, these grants and aids can never solve Africa’s problem rather it would continue to make its citizens poorer, and unless it unites and speaks with one voice, it will continue to play a second fiddle among other continents.

“The problem of Africa is the problem of leaders,” he said. “However, instead of it to liberate itself from poverty by electing the right leaders, it continues to vote in men and women who do not understand good governance”.

The Kenyan professor, who is also a staunch panAfricanist, explained that

frica, world’s second largest and second most populous continent, is home to a large number of people who do not have access to clean water, food and quality education.

But that is because its leaders have decided to choose the path of poverty, said Professor PLO Lumumba, a former director of Kenyan anti-corruption commission and former director at the Kenyan School of Laws.

Lumumba, who addressed both private and public stakeholders at the sixth Goddy Jidenma Foundation public lecture, said the high poverty mindset of the African race was what had subjected it to relying

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only good governance could translate into economic development for any nation.

He noted that the time had come for the African nation to define its own democracy and governance that is suitable for its economies and not those that was defined for it by the Western economies of the world.

“The architecture laid by the international economies of the world does not take care of the Africa, making the continent an orphan in international affairs,” he said.

Lumumba, while speaking on the topic: “Governance, insecurity, poverty and economic development: Wither Africa,” said Africans @Businessdayng

had some of the best brains but the search for greener pastures had made its youthful population preferred contributing to the development of other countries instead of their home land.

To him, the world is talking about the fourth industrial revolution, with the advancement of technology, Artificial Intelligence (AI), robotics, among others, but Africa is nowhere in the scheme of things.

Africa lost in the first, second and in the third industrial revolution and from all indications, it is losing out in the fourth industrial revolution, Lumumba said at the event.

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Wednesday 27 November 2019

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POLITICS & POLICY Appeal Court verdict: Afenifere warns against anarchy in Oyo

…condemns third term agenda REMI FEYISIPO, Ibadan

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he Pan-Yor uba S o c i o - Po l i t i ca l Organisation, Afenifere, on Tuesday warned against any situation that could foist anarchy on Oyo State in respect of the ruling of the Court of Appeal on the Governorship election in Oyo State.

Afenifere, in a communiqué made public after its meeting in Akure, Ondo state, condemned what it called “jurisprudential anarchy” daily unfolding in the country.

The communiqué, signed

by A f e n i f e re’s Nat i o na l Publicity Secretary, Yinka Odumakin indicated that Afenifere at its meeting reviewed the ruling of the Court of Appeal on the Governorship election in Oyo state and resolved to warn against anarchy in a state that has history behind it.

The communiqué read: “Meeting reviewed the recent ruling of the Appeal Court on Oyo Gubernatorial Polls and was at a loss as to the jurisprudential anarchy daily unfolding in our judicial system.

“That one decision of court confused even the media for the next 48 hours is a challenge to our judiciary to always try and make itself clear to the ordinary people.

“It is our hope that the Supreme Court to which the parties have now headed will resolve the matter in the

interest of justice and the integrity of the justice system.

“We do not want any upheaval in the city that has history behind it.”

The Afenifere also saluted the oldest privately-owned newspaper in Nigeria, Tribune newspapers for clocking 70 years on the newsstands.

Afenifere said: “That the newspaper has survived 70 years in a country whose graveyard has a section for failed publications is a testimony to its foundation of truth and integrity.

“We pray for continued survival of the paper without departure from the dreams of

R-L: Atiku Abubakar, former Vice President of Nigeria and Presidential candidate of People’s Democratic Party in the 2019 election, and Peter Obi, former Governor of Anambra State and his Vice Presidential candidate in that election, at a condolence visit to Atiku over the death of the former Vice President’s longstanding aide, Umar Njidda Pariya, in his Abuja residence.

Dickson’s actions targeted to discredit incoming government - Group Samuel Ese, Yenagoa

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he Bayelsa Rainbow Coalition for G ood G overnance, a body of civil society groups has raised the alarm over the actions of Governor Henry Seriake Dickson in the past few days, saying they were targeted to discredit the incoming government of David Lyon.

Addressing a press conference in Yenagoa on Tuesday, chairman of the group, Francis Wainwei said the appointment of 35 permanent secretaries and ongoing back door employments were aimed at creating bottlenecks for the incoming administration.

Wainwei urged the incoming government to be careful with some of the decisions and actions of the Dickson administration saying, “Most especially, we have discovered that the outgoing government just appointed 35 permanent secretaries, which has never been done at once before by any government in the state.”

Last Friday, Dickson appointed 35 new permanent secretaries, which the coalition said was contrary to civil service rules and they urged the incoming administration to set up a panel to investigate the action for the betterment of the state.

He said the coalition discovered that “among the permanent secretaries appointed, 11 of them are from Sagbama, the outgoing governor’s local government. We have discovered that this action is questionable, and therefore, we are calling on the incoming government to set up a panel to investigate the appointment of these 35 persons whether the appointment is in consonance with the rules and regulations of the civil service. If they are not in consonance with the rules and regulations of the civil service, then the incoming government should take the appropriate action.”

According to Wainwei, some of the new appointees are on grade levels 9, 11, 12 and 13 contrary to the civil service rules that prescribes grade level 14 in order to www.businessday.ng

meet geographical spread including a vice principal of a secondary school in Yenagoa.

The coalition warned that the outgoing government wants to create problems for the incoming government to deny Bayelsans the dividends of democracy, stressing that they want Lyon to assume office on a very clean slate.

Wainwei also revealed that government officials were given out letters of employment in exchange for monetary compensation thereby, creating a bloated workforce, which Dickson addressed in his civil service reforms and wondered why he is now resorting to what he condemned.

Also speaking, the secretary of the coalition, Goodluck Igbudu said the Dickson administration sacked civil servants as part of civil service reforms, but as he is about to exit office, there is a proliferation of employments.

While highlighting some of the illegal appointments of the Dickson government, Igbudu disclosed that a non-

civil servant was appointed as permanent secretary in one of the ministries since 2012 and though the state chapter of the Association of Senior Civil Servants took the matter to court, judgment is yet to be delivered.

Throwing further light on irregularities in employments so far, he stated that during the regularisation of casual staff in the state, an initial number of 603 rose to over 900 and more pointing out that since they are political appointees, they would constitute a huge burden for the incoming government.

Igbudu therefore, urged the incoming government to “see how to address it with a human face”, lamenting that someone who came to sanitise the public service has ended up trying to rubbish it.

A representative of Civil Society Advance Forum for SDGs 2030, Clifford Joseph Wilson pointed out that the appointment of permanent secretaries was not done according to tradition and that the government was creating problems with which to later attack the incoming government.

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its founder.”

Afenifere also condemned what it called the third term agenda brewing in Abuja, the nation’s capital, adding that the idea should be perished immediately.

It said: “Meeting took serious note of the rumoured plans to subvert the Constitution of Nigeria to allow President Buhari to have a third term in office which started with a an APC Senatorial Candidate in Bauchi last year during ac bye-election declaring that he was coming to the Senate to work for a third term for Buhari.

This was followed by the President who has a maximum of possible 8 years in office telling the country he was going to lift 100million Nigerians out of poverty in TEN years.

To douse the tension the rumoured plot is generating the President made a denial a few days ago which we took with a pinch of salt because it is not the first time politicians would pursue what they are denying in Nigeria swearing with Allah/God. We have not forgotten that General Buhari told this country in 2011 that he would do only one term if he became

President. He is now on a second term. He also promised Nigerians in 2015 that he would not have the office of the first Lady as President.

He was mute when the wife issued an order that she must be addressed as First Lady and he has gone ahead to appoint 6 aides for the office.

Meeting also observed that the reason given for the President for not thinking of a third is the Constitutional limit of two terms without talking about what he would do if that hindrance was removed.

With the National Assembly in the pocket, the only hurdle left to change that provision would be two-thirds of Houses of Assembly and we have seen the President holding a meeting of 36 Speakers.

And shortly after this meeting, an APC member in Eboyi State has approached a Federal High Court to compel the National Assembly to remove the constitutional impediments against third term for President and Governors.

“We have seen this fire before for this smoke not to be strange to us. Afenifere therefore, calls on Nigerians to be vigilant and thwart any attempt to take the country for a ride once again.”

Bayelsa/Kogi polls: INEC blames politicians for violence, manipulation Iniobong Iwok

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he Independent National Electoral Commission (INEC) has said that politicians constituted most of the problems that the commission encountered in the recently concluded gubernatorial polls in Kogi and Bayelsa states.

The elections in the two states, which had attracted wild condemnation, were rocked with violence and ballot snatching, among others, with Kogi State being mostly affected during the exercise.

Rotimi Oyekanmi, spokesperson to INEC chairman, Mahmood Yakubu, said this in Lagos at the Public Presentation/Media Stakeholders’ Round table with the theme: ‘Trend in Reportage of last 2019 election issues (Scorecard for July-September 2019),’ organised by the International Press Centre (IPC).

According to him, “The politicians, who he did not name, were the ones that caused the problems identi@Businessdayng

fied during the exercises in the two states despite the fact that the commission engaged them before the elections at stakeholders’ meetings, reached agreement with them on fair and peaceful elections and shook hands with them.”

He said notwithstanding, the politicians still went back and did something else, adding: “If politicians were not the ones, we wouldn’t be having the problems we had in Kogi and Bayelsa states.

“They were the ones that were responsible for the violence and ballot snatching we had in Bayelsa and Kogi states,” he said, declaring that the experience witnessed in those two states had no doubt thrown a new challenge.

The spokesperson to INEC chairman, while speaking further, said the commission had been more transparent and open in its work, made itself available and provided up-to-date information about its activities to the world, but quickly admitted that there was still a long way to go in terms of information dissemination.

Wednesday 27 November 2019

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Wednesday 27 November 2019

BUSINESS DAY

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Wednesday 27 November 2019

FT

BUSINESS DAY

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FINANCIAL TIMES

World Business Newspaper Jennifer Ablan

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ill Gross, the famed investor who built Pimco into a $2tn asset manager, has warned that US stock and bond markets are set for a tougher time in 2020 as fiscal and monetary stimulus loses its “oomph”.

Both classes of assets have raced higher this year, as US corporate profit margins have largely held on to gains they made after the 2017 tax cut, and as the US Federal Reserve’s renewed commitment to monetary easing gave a big lift to fixed-income markets, flattening yields to record lows.

But Mr Gross, 75, told the Financial Times that gains next year would be much harder to come by, noting that central banks around the world have grown cautious about the effects of persistently low interest rates on personal and institutional savings. Fed chair Jay Powell has cut rates three times since July but has struck more hawkish notes in recent weeks, repeatedly batting down the idea that the Fed would use negative rates as a tool to combat future economic weakness.

Stocks in the US would be “flat to down 10 per cent” in 2020, Mr Gross said, while the yield on the benchmark 10-year Treasury note would end the year at 1.75 per cent, slightly higher than it closed last week.

Bill Gross predicts sluggish year ahead as stimulus loses ‘oomph’

One-time ‘bond king’ says gains in stocks and bonds in 2020 will be harder to come by

Bill Gross: US presidential election should produce ‘volatile opportunities’ in the healthcare sector © Reuters

Mr Gross noted that the stimulative effects of the corporate tax reform had fully worked their way through the system over the past two years. “To retain the 1 per cent boost that it provided to the economy . . . the deficit needs to expand by another $1tn or else

Chinese group raises more than $11bn in world’s biggest share offering this year

Concerns grow that president is politicising defence department after Navy Seal case

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hen Mark Esper, US defence secretary, fired the head of the navy on Sunday, it marked the latest chapter in the turbulent relationship between Pentagon leaders and Donald Trump.

Over the past three years, the commander-in-chief has blindsided his generals with impromptu decisions to withdraw troops from Syria, slammed allies from Germany to Japan, abruptly cancelled military exercises to please Kim Jong Un, and irked the Pentagon by demanding a military parade.

But the latest controversy — over the case of a Navy Seal convicted of a war crime in Iraq that culminated in the firing of Richard Spencer, the Navy secretary — has created a bigger headache for the top brass because it played out publicly in real time.

Chief Petty Officer Eddie Gallagher was acquitted in July of several war crimes but was convicted of posing for a photo beside the corpse of an Isis detainee he had killed. He was demoted as a result but Mr Trump restored his rank in a controversial decision this month.

Mr Trump angered the Pentagon with the announcement, which also included a pre-emptive pardon for a soldier facing trial over a death in Afghanistan. Mr

Esper and General Mark Milley, chairman of the joint chiefs, urged him to let the military justice system play out but were ignored.

“This feels like an inflection point,” said one retired senior officer, who warned that Mr Trump had already politicised other government agencies, such as the homeland security and state departments.

“Trump has been chipping away at the apolitical, non-partisan nature of the defence department but this feels different. He is trying to complete the trifecta by politicising the Pentagon.”

The Pentagon was forced to accept the Gallagher decision but the Navy planned to convene a panel to determine if he could retire as a Seal — a move that angered Mr Trump. Mr Spencer, the Navy secretary, then tried to cut a deal with the White House that would create a veneer of maintaining order by letting Chief Gallagher retain his Seal status if Mr Trump agreed not to intervene in his case.

Mr Trump on Monday said he had been thinking for a “long time” about firing Mr Spencer, an ally of Jim Mattis, who resigned as defence secretary in December over disagreements with the president.

But military justice experts said the president’s involvement in the case had raised more serious concerns. www.businessday.ng

of billions of dollars in assets. His tenure at Pimco ended abruptly and acrimoniously in September 2014, when he was ousted.

Mr Gross then endured a rocky few years of performance at Janus Henderson Group, which he joined in October 2014. He retired

Alibaba’s stock jumps on Hong Kong trading debut

Trump’s rising interference in military irks Pentagon Demetri Sevastopulo

the economy expands by 1 per cent less,” he said.

Mr Gross, who turned to investing after serving as a US naval officer, co-founded Pacific Investment Management Co in 1971, attaining cult-like status in investing circles as he attracted hundreds

earlier this year, but is still widely followed for his views on the global economy and world financial markets. He has a net worth of $1.5bn, according to Forbes.

Last month he posted online his first investment outlook since his March retirement, saying that investors should home in on stocks that promise secure dividend payouts, given the tougher economic backdrop.

He expanded on that theme to the FT, saying that his favourite sector for 2020 was natural gas stocks such as Energy Transfer, a Dallas-based pipeline operator, and MPLX, a vehicle formed by Marathon Petroleum. “They have yields of 10-15 per cent and defensive prices, due to 20-30 per cent losses this year,” he said.

He added that the US presidential election should produce “volatile opportunities” in the healthcare sector.

The political environment is “mercurial,” he said, as President Donald Trump “continues [his] schizophrenic day-to-day” routines and the “Democrats waver between centrist and ultra-liberal candidates”.

Hudson Lockett and George Hammond

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hares in Alibaba jumped more than 6 per cent in their Hong Kong trading debut, after the technology group raised more than $11bn against a backdrop of simmering anti-government unrest in the Asian financial hub.

At Hong Kong’s stock exchange, where riot police stood guard outside, Alibaba chief executive Daniel Zhang told an audience minutes before the market opened that Alibaba has “returned home to Hong Kong” to a large round of applause.

The mammoth listing also follows increasing Sino-US trade tensions. Five years ago Alibaba raised $25bn in New York in what was the world’s biggest initial public offering. The secondary listing will make it easier for investors in China and elsewhere in Asia to trade the shares.

“After five years of travelling afar, [Alibaba has] decided to come home,” said Charles Li, chief executive of Hong Kong’s stock exchange operator, at the event. “Despite the difficulties and challenges in Hong Kong.”

Mr Li added that the offering by the ecommerce and online payments group would bring other Chinese companies listed overseas back to Hong Kong. “Ultimately

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they will come home. And we will be here, ready for them,” Mr Li said.

For Mr Li, the offering marks a personal turnround after his unsolicited bid for the London Stock Exchange was rejected outright earlier this year. Alibaba’s listing means HKEX is set to retain its listings crown for the second year running, fending off a challenge from New York.

Alibaba’s shares opened 6.25 per cent higher at HK$187 ($23.90), with the group raising HK$88bn ($11.3bn). The city’s benchmark Hang Seng index gained 0.4 per cent. The stock closed 6.7 per cent higher at HK$187.60.

Dickie Wong, head of research at broker Kingston Securities, said Alibaba’s Hong Kong debut was “slightly better than expected” and that the shares were a shoo-in for quick inclusion in stock connect programmes that would allow investors in mainland China to trade them.

“This is definitely a must-have stock for the portfolio of a local investor,” he said.

The listing is seen as a vote of confidence by Beijing in Hong Kong’s future as a financial centre in spite of a deepening political crisis in Hong Kong. After six months of increasingly violent demonstrations, pro-democracy campaigners won a decisive victory in local elections on Monday.

Analysts had not expected a @Businessdayng

sharp rise in Alibaba’s stock, partly because they were marketed at a small discount to the company’s New York Stock Exchange-listed American depositary receipts. Still, the shares were heavily oversubscribed on both the institutional and retail tranches.

Alibaba’s New York-listed ADRs closed 2 per cent higher on Monday at $190.45.

The company had initially aimed to raise as much as $20bn when it filed for the listing in June but the plans stalled and were scaled back partly as a result of the political crisis in Hong Kong.

Alibaba pushed ahead with the listing this month following record sales turnover of $38bn on Singles’ Day, its annual online shopping extravaganza. Sales in the third quarter were also up 40 per cent from a year earlier.

The $11.3bn equity raising is easily the biggest offering of the year, coming in far above the $8bn raised by ride-hailing company Uber in New York in May. If Alibaba’s investment bankers choose to trigger an overallotment option within one month of the listing, it would increase the number of shares offered to investors by a further 15 per cent and bring total fundraising to $12.9bn.

Credit Suisse and Chinese stateowned investment bank CICC co-sponsored Alibaba’s share sale.

52

Wednesday 27 November 2019

BUSINESS DAY

FT

NATIONAL NEWS

Thirteen French troops killed in Sahel war against Islamists Two helicopters crash in Mali in worst death toll in three decades for French military Victor Mallet

T

hirteen French military personnel died in a crash between two helicopters while combating Islamist militants in Mali, in the deadliest incident for French troops in more than three decades.

The crash brings the death toll to a total of 41 since former president François Hollande sent forces to free the Malian city of Timbuktu from Islamist extremists in January 2013.

It is the largest number of casualties suffered by the French military in a single day since 19 died in an air-crash in Djibouti in 1986. A suicide bomb attack in Beirut in 1983 killed 58.

President Emmanuel Macron on Tuesday expressed his “deep sadness” about the deaths during “their difficult struggle against terrorism in the Sahel”.

France’s Operation Barkhane, in which 4,500 troops are fighting insurgencies in the southern reaches of the Sahara in west Africa, has struggled lately to contain the Islamist threat. In two earlier incidents this month, 37 people died in an insurgent attack on buses carrying workers to a gold mine in Burkina Faso, and Isis killed more than 50 at a Malian military base.

Mr Macron has portrayed the Sahel operation as essential for the security of Europe because it is seeking to prevent the desert area from becoming a refuge for Isis militants and other insurgent groups.

Defence minister Florence Parly last week urged EU allies to help more, saying the French-led operation was facing the “very difficult challenge” of asymmetric war in Mali and its neighbours in the Sahel.

The French have received support from US intelligence and logistical and military contributions from the UK, Spain, Estonia and Denmark.

François Heisbourg, special adviser at the Fondation pour la Récherche Stratégique, a thinktank, said the French people were generally supportive of the war in the Sahel given the domestic terror threat in France, but like Ms Parly they were likely to demand more contributions from EU neighbours.

“This is quite a nasty theatre of war,” he said. “I suspect that this incident will not actually create much of a political problem for the government in terms of the mission against jihadis. But it will sharpen the debate here about what the rest of the Europeans are doing.”

The two helicopters, a Tiger and a Cougar, were flying on a moonless night on Monday in support of Barkhane troops fighting “terrorist armed groups” in the Liptako region of southern Mali, according to the French defence ministry.

“Engaged on the ground for several days, the commandos were tracking a group of terrorists found a few hours earlier, who were using pick-ups and motorcycles,” when the two helicopters collided, the ministry said on Tuesday. There were no survivors among the crew or soldiers on board.

Google fires four workers who breached its data security policies Terminations could escalate conflict with tech company’s corporate ethics activists Richard Waters

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oogle has fired four workers it accused of abusing its culture of radical openness, escalating a fight with activists on its staff who have campaigned against some of its work for the US government.

The dismissals followed an internal investigation that had found that the former employees had tapped into work or personal calendars of other Google workers.

“This is not how Google’s open culture works or was ever intended to work,” the company said in an internal email to staff, which was first reported by Bloomberg.

Google has been in a fight with activists on its staff who have objected to work that they believe contravenes the company’s basic ethical values.

This includes work for US Customs and Border Protection. Last year, Google decided not to renew Project Maven, an image recognition assignment involving US military drones, after protests from workers.

The company said the workers had been involved in “clear and repeated violations of our data security policies”, even after being warned.

It did not release the names of the workers who were fired, but Rebecca Rivers, who had objected to Google’s work for US Customs and was suspended recently, said

on Twitter that she had been told that she was “being terminated”.

Last week, a number of Google workers in San Francisco held a rally for Ms Rivers and Laurence Bernard, another worker who was suspended, to protest against what they claimed was a crackdown on internal dissent.

Google said the four workers who were dismissed had been involved in “systematic searches for other employees’ material and work”, and that some of the information they collected had later been distributed outside the company.

Google has always prided itself on having an open internal culture that encourages workers to speak their minds and gives open access to information across the company, even if it has no relation to a particular employee’s own job.

In a sign of how the tensions with workers are forcing a change in its culture, Google has urged staff to be more careful with internal information. It said the workers who were sacked had tapped into information “outside the scope of their jobs” — something that has not been a limit on workers in the past.

In one example of the type of information that had been abused, Google said one of the dismissed workers had accessed other employees’ calendars and set up automated notifications “detailing the work and whereabouts of those employees, including personal matters.” www.businessday.ng

Lev Parnas and his wife Svetlana Parnas leave federal court in New York following his arraignment hearing last month © Getty

Giuliani associate emerges as wild card in Trump inquiry Lev Parnas has signalled he is willing to co-operate with impeachment proceedings Joshua Chaffin and Roman Olearchyk

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s Democrats plot the next chapter in impeachment proceedings against Donald Trump, a debt-ridden Florida businessman who the US president’s personal lawyer Rudy Giuliani used as a go-between to conduct affairs in Ukraine, has emerged as a focal point — and a wild card.

Lev Parnas worked closely with Mr Giuliani in his efforts to pursue investigations in Ukraine against Mr Trump’s political rival, former vice-president Joe Biden. Mr Parnas also has close links to a Ukrainian oligarch, Dmitry Firtash, who is attracting fresh scrutiny for possible involvement in Mr Giuliani’s campaign.

After initially closing ranks with his patrons, Mr Parnas earlier this month apparently had a change of heart and signalled his willingness to co-operate with the impeachment proceedings.

Democrats on the House intelligence committee are discussing whether or not to invite Mr Parnas to testify, according to a person familiar with the matter, but are unlikely to reach a decision until after the Thanksgiving holiday.

Mr Parnas has unique standing as a central figure in the drama — both in Ukraine and Washington. Yet he may make a less than ideal witness: he is currently under house arrest and awaiting criminal trial after he and an associate, Igor Fruman, were indicted in October on charges of violating campaign finance laws.

According to prosecutors, the men created a shell company to mask the true source of hundreds of thousands of dollars in foreign donations they made last year to political groups aligned with Mr Trump — contributions that brought them from relative anonymity to rubbing shoulders with the president and Mr Giuliani.

The degree to which Mr Parnas has shifted alliances has been dra-

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matic. His lawyer, David Bondy, tweeted on Sunday: “He’s not afraid of #POTUS or polonium, hopes to testify under oath — unlike #RudyGiuliani — and to be subjected to cross-examination under penalties of perjury. #LetLevSpeak.”

Meanwhile, Mr Parnas has also created difficulties for Devin Nunes, the Republican chair of the House intelligence committee. He has sought to implicate the Californian congressman in the campaign against Mr Biden by claiming that Mr Nunes travelled to Europe last year to meet a disgraced former Ukrainian prosecutor who has blamed the former vice-president for his sacking.

Throughout the impeachment hearings, Mr Nunes has led the defence of Mr Trump, often repeating the president’s claims — including that Ukraine, as opposed to Moscow, may have been to blame for meddling in the 2016 US election.

Speaking to Fox News on Sunday, Mr Nunes was dismissive of Mr Parnas’ claim without directly denying it. “Everybody’s going to know all the facts, but I think you can understand, I can’t compete by trying to debate this out with the public media when 90 per cent of the media are totally corrupt,” he said.

During two weeks of hearings, a succession of witnesses — many of them longtime foreign service officers — laid out a scheme in which Mr Giuliani and his allies forced out the sitting US ambassador in Kyiv so they could pursue a back channel to a newly elected Ukrainian president.

Their goal, according to Democrats, was to convince the new administration in Kyiv to announce an investigation of Mr Biden — Mr Trump’s political rival — and his son, Hunter, who sat on the board of a local energy company. The Trump administration pressured the Ukrainians by withholding desperately needed military aid.

Mr Giuliani has denied there was any “quid pro quo” for the resumption of the military aid, and that the administration was merely @Businessdayng

interested in cracking down on corruption in Ukraine.

Like the president he serves, the former New York City mayor may also be coming under legal pressure for his conduct in Ukraine: several US media outlets, led by the Wall Street Journal, reported on Monday that his consulting business was the subject of subpoenas from federal prosecutors in Manhattan.

One issue prosecutors are examining, according to the reports, was whether Mr Giuliani registered as a foreign agent. He did not return a call for comment. A spokesman for the US attorney in Manhattan declined to comment.

In addition to Mr Giuliani, Mr Parnas also has links to Mr Firtash, who grew wealthy as a middleman handling Russian gas shipments to Ukraine, and has been fighting extradition to the US on foreign bribery charges.

In July, Mr Firtash made a change to his US legal team, hiring Joseph diGenova and Victoria Toensing, a husband-and-wife duo are regular pro-Trump talking heads on Fox News. Mr Parnas helped bring Mr Firtash to his new lawyers, and then acted as his translator and consultant.

That has aroused suspicions Mr Firtash may have been hoping to avoid extradition by helping Mr Giuliani and Mr Parnas with their campaign against Mr Biden.

“There is growing interest in Mr Firtash and what role he played,” Democratic congressman Jamie Raskin, a member of one of the committees leading the Trump impeachment inquiry, told journalists recently.

Mark Corallo, a spokesperson for Mr diGenova and Ms Toensing, insisted that they had only taken the case because they believed in Mr Firtash’s innocence, and were not involved in any scheme to help dig up dirt on Mr Biden.

Of Mr Parnas, he said: “He was someone who spoke the language and also someone who understood the political situation on the ground in Ukraine.”

BUSINESS DAY

Wednesday 27 November 2019

53

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

BT nationalisation: pension deficit is the easy bit

Citi given record fine by UK regulator for reporting failures

The group could make a one-off contribution after selling Openreach to the government

PRA says US bank’s British operation did not ‘deliver accurate returns’ Caroline Binham

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he Bank of England has slapped Citigroup with a record £44m fine for “serious” reporting failures that left UK regulators with an incomplete picture of the financial health of one of the world’s biggest banks.

Citi’s UK operations lacked a proper framework for reporting its capital and liquidity position for more than four years, according to the Prudential Regulation Authority, the arm of the central bank that imposed the penalty on Tuesday.

The failings from Citi, which stretched between June 2014 and the end of 2018, led to “significant errors” on six substantive matters that “had a material or potentially material impact on the returns”, the PRA said in a statement on Tuesday.

The fine is the largest yet from the PRA, which was established six years ago and supervises lenders and insurers in the UK. It is also the first enforcement action against a systematically important financial institution.

“Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank,” said Sam Woods, PRA chief executive.

It added that the US bank’s UK operations remained in surplus to its capital and liquidity requirements throughout the period.

The penalty for Citi comes just weeks after the PRA put bank bosses on notice of the need to ensure accurate and timely regulatory returns. Like other regulators, the PRA uses submissions from banks to monitor their financial health.

An investigation from the PRA found that Citi did not dedicate enough staff to ensure returns on its liquidity position were accurate, while its approach to the technical interpretations of what it was required to report was “insufficiently robust.”

Citi co-operated with the PRA and settled at the earliest opportunity, cutting the size of the penalty from £63m, the regulator said. The fine was levied at three of its UK units: Citigroup Global Markets, Citibank NA London branch, and Citibank Europe Plc UK branch.

In a statement, Citi said that it “places a high priority on meeting its regulatory reporting requirements, and has devoted significant resources to UK financial reporting before, during and after the period to which the PRA’s notice relates.”

The bank added that it had resolved all of the failings highlighted by the PRA.

FCA bans marketing of unregulated mini bonds to retail investors Year-long ban on promoting products at centre of London Capital & Finance scandal described as ‘nuclear option’ Caroline Binham

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he UK’s financial regulator is using emergency powers to ban the marketing to retail investors of unregulated mini bonds, which lay behind a scandal that left 11,600 customers at risk of losing their savings.

In what has been described as “the nuclear option”, the Financial Conduct Authority said on Tuesday that it would temporarily ban promotion of the products for a year from January. The move follows an explosion in the mass marketing of high-risk mini bonds, as well as scams.

The FCA has been criticised by politicians for not responding sooner to the £236m collapse of London Capital & Finance, which sold mini bonds to 11,600 pensioners and first-time investors.

The fiasco has sparked regulatory and criminal probes, as well as a statutory investigation into any mis-steps taken by the regulator itself.

While mini bonds are unregulated and not typically covered by the UK’s Financial Services Compensation Scheme, their promotion by authorised companies is overseen by the FCA. The watchdog has recently seen more than 200 other cases where authorised financial promotions did not appear to be in line with its rules. Another 80 cases may be outright frauds, where existing

powers can be brought to bear, the FCA said. The watchdog estimates a further 11,000 customers have invested an average of £25,000 in mini bonds.

“The FCA have taken on board the lessons of the LCF scandal and felt it time to take what, in regulatory terms, is the nuclear option,” said Matt Hopkins, a director at BDO, a consultancy. “It is very rare for the FCA to put a retail investor ban on a whole product class, particularly without going through a lengthy consultation period.”

The FCA has only used such special powers twice before, and Tuesday’s ban came while the regulator is in self-imposed purdah ahead of December’s general election. Andrew Bailey, the FCA’s chief executive, said the decision to take such “robust” action came because of savers looking to bolster their ISAs before the end of the financial year.

The LCF scandal underscored confusing consumer-protection rules and what is and is not overseen by the watchdog. LCF claimed the mini bonds — some offering returns of as high as 8 per cent — were fixed-rate ISAs. The group was authorised by the Treasury as an ISA manager.

The government has recently rebuffed calls from the Treasury select committee — backed by the FCA — for the regulator to be able to recommend additional areas that it should oversee when new issues arise. www.businessday.ng

John Ralfe

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he UK opposition Labour party’s bombshell announcement it would nationalise BT’s Openreach network and provide free full-fibre broadband to every home and business in the country took everyone by surprise.

Much has been written about the political and competition problems of nationalising Openreach, but what about BT’s huge pension scheme? Could pensions be an expensive stumbling block to Labour’s ambitions?

BT has the UK’s largest company pension scheme with £63bn of liabilities — three times the company’s £20bn market capitalisation — and a £5.5bn deficit, at September 30. It was closed to employee members in 2018, and now has almost 300,000 members in three sections.

However much BT wants to reinvent itself as a 21st century company, it has a very 20th century pension problem round its neck.

And despite the risk posed to BT by the sheer size of pensions, it continues to run a major asset and liability mismatch. Of the scheme’s £57.5bn assets, about £20bn remain in equities, infrastructure, and property, the same value as its market capitalisation.

Adding to the size and complexity, a Crown guarantee was issued at privatisation in 1984.

If BT ever goes bust, the government would meet its pension obligations.

Nevertheless, compared with all the other issues, pensions are the easy bit in any nationalisation.

How so?

Openreach Ltd — run at armslength from BT following pres-

sure from the telecoms regulator Ofcom — would be sold to the government in exchange for cash or gilts. The pension scheme would stay with BT, which would pay all future deficit contributions, and the Crown guarantee would remain in place for all members.

To compensate for the loss of Openreach, which is a major part of overall profit and cash flows, BT would make a one-off pension contribution from the sale proceeds. There are many examples of this — including Pearson selling the Financial Times to Nikkei in 2015, and Invensys, the engineering group, selling its rail division in 2013.

How much of the sale proceeds BT would pay is governed by a legal agreement with the pension trustees from 2008, renewed every three years. Under this agreement, disclosed in its annual report, BT commits to pay into the pension scheme a third of any “net cash proceeds” from disposals over £1bn in any year.

A recent note from independent boutique New Street Research put Openreach’s economic

value at £16.5bn, so the pension contribution would be about £5bn — higher or lower proceeds meaning a higher or lower pension contribution.

As well as making the pension contribution, and keeping a war chest for investment or acquisitions, BT would almost certainly want to pay a big chunk back to shareholders as a special dividend.

Although BT has agreed to “consult” the pension trustees over any special dividend, they have no legal powers to stop it. But to compensate for the increased credit risk, and as a matter of realpolitik, the pension trustees would expect a further deficit contribution over and above the £5bn.

“Corporate events”, including a special dividend, do not have to be agreed with the Pensions Regulator, but it has a voluntary “clearance” mechanism, and will agree not to use its “anti-avoidance” powers in the future — de facto approval. After agreeing the size of the further contribution with the trustees, BT would want to get clearance to copper-bottom a special dividend.

Stories of have-a-go forex trading heroes belie a quiet market Sleepy conditions are good for corporate treasurers but painful for intermediaries Katie Martin

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abloid tales of currencytrading whizz-kids are back.

You know the sort of thing: young men (they are always men) in their early 20s or even late teens.

They manage to secure full-page treatment, telling the world how they turned a modest lump of cash, perhaps their first pay cheque, into serious money through their mastery of forex. Cue pictures of fast cars and designer trainers.

The genre — a guilty pleasure of many a financial-markets professional — took something of a knock in the UK in 2015 when Alex Hope, a self-proclaimed FX whizz who once splashed £204,000 ($262,000) on a bar bill, was sent to prison for fraud.

But the inspirational stories live on. A new flurry has brought a college dropout telling The Sun last month how he “became a millionaire after learning to trade forex on YouTube”. Last week a 20-year-old medical student posed for The Daily Mail with a gold-wrapped Maserati. His advice, which other professional currency traders and investors

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might be interested to read, is that “once you know how to do it, it’s not that hard”.

One has to wonder, really wonder, how they manage it. Because over at the wholesale end of things, the talk of the town is just how dead the market is — hardly a breeding ground for lucrative trading opportunities. The market is, in Commerzbank’s words, “structurally boring”.

How have currencies managed to elicit such a label from a German bank that is not exactly predisposed to excitement?

Chief analyst Ulrich Leuchtmann noted earlier this month that his currency volatility index “has returned to the low levels which I referred to as ‘unsustainable’ in spring. Well that was wrong.

‘Nothing happening’ seems to be the ‘new normal’.”

This is an interesting point.

Yes, we have been here before, as recently as March. Then, the three-month rolling trading range of the euro against the dollar was at its narrowest ever point, even taking into account old Deutschmark rates going back more than 35 years. At the time, this was seen as a blip, a reflection of the US Fed@Businessdayng

eral Reserve’s then-recent decision to put interest-rate rises on pause.

Analysts also noted the market paralysis induced by the trade war between the US and China.

Now, implied volatility in the euro-dollar exchange rate — a measure of how likely market participants believe a shake-up to be — is at a new record low. “It can’t get more dead than that,” Commerzbank said on Tuesday.

It can get more dead, though.

Bilal Hafeez, formerly a senior currencies analyst at Deutsche Bank and Nomura, who now runs analysis hub Macro Hive, points out that while expected volatility in the euro against the dollar is at an all-time low, actual volatility has been lower before, in the late 1970s.

For him, this means it would be unwise to expect a burst of excitement. Previous notable pick-ups in volatility have been driven by moments when major central banks embarked on different paths.

“Today, most central banks are on hold at low rates,” said Mr Hafeez. Watch them for reasons to pounce, he said, but in the meantime, the experience of the 1970s shows that deeply sleepy market conditions can last for years.

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Wednesday 27 November 2019

BUSINESS DAY

FT

ANALYSIS

Repo: How the financial markets’ plumbing got blocked When short-term borrowing costs spiked in September, it marked the culmination of long-term stresses that the Federal Reserve is now working to tame Cale Tilford, Joe Rennison, Laura Noonan, Colby Smith and Brendan Greeley

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he repo blow-up of 2019 set markets on edge and prompted the Fed to pump billions of dollars of emergency funding into the financial system. Here, we break down what went wrong, what happens next, and whether markets can avoid another cash crunch.

The overnight repo rate spiked in September The overnight “repo” market, where banks lend cash to other institutions in exchange for collateral like US government debt, has been calmer since, but the test of the central bank’s intervention will come at year end, when money is typically in short supply. As well as daily cash injections, the Fed is expanding its balance sheet again.

Some banks used the scare to argue post-crisis rules had hurt liquidity, prompting a rebuke from Senator Elizabeth Warren and other supporters of tough regulation. The Fed has focused on a series of technical factors that built up over years and drove demand for cash in the repo market to exceed supply. The driving forces described below are informed by dozens of conversations with bankers, analysts, investors and policymakers.

Rising demand for cash is represented by the pink bar showing overnight repo trading volume. Scroll through the charts below to see how events extending back more than two years crimped the supply of cash and helped push the repo market to breaking point.

Demand for cash The Fed begins unwinding its balance sheet The Federal Reserve bought trillions of dollars of US government debt to prop up the economy after the financial crisis. It began unwinding that intervention two years ago, taking one of the biggest buyers of Treasuries out of the market.

New buyers had to step in to replace the Fed. These were often banks using their own cash or other investors withdrawing cash from banks to fund the purchases. In both cases, the result was to reduce the cash reserves banks held and therefore to reduce the amount available for overnight lending.

Some buyers used the repo market to fund their purchases, increasing demand just as supply was coming down.

Line chart showing the Fed balance sheet and bank excess reserves between 2001 and 2019 January 2018 Tax reform increases pressure The Trump administration lowered the corporate tax rate, which meant lower tax income for the US government and a bigger budget deficit. The US Treasury funded that by selling more debt, which the banks and other investors bought.

Once again, since cash was going to buy government bonds, there was less available to lend in overnight markets.

The tax reform also gave US corporations a one-off opportunity to cheaply bring back cash held overseas. Before this, multinationals like Microsoft and Google kept foreign earnings offshore, often invested in US government debt. Companies brought $777bn home in 2018 and so stopped buying as many Treasur-

ies, again increasing the amount that needed to be bought by other investors.

Pair of column charts showing the US budget balance and outstanding treasury securities between 2008 and 2019 June 2018 Short-dated borrowing costs drift higher as reserves fall The first signs of pressure began to emerge in another short-term lending market. The fed funds rate — which reflects unsecured borrowing between banks, unlike repo where borrowing is secured using collateral — was drifting towards the top of the range set by the Federal Reserve. That worried central bankers, since fed funds is the rate they target to guide the US economy. They could not afford to lose control of it.

The Fed responded by cutting the interest it pays banks on excess reserves, in the hope banks would lend more to each other instead.

As bank reserves fell, the fed funds rate bust through what markets thought was a cap 1, 4001, 6001, 8002, 0002, 2002, 400 Reserves outstanding ($bn) -15-10-505101520 Difference between fed funds rate andinterest on excess reserves (basis points)Sep 27 2019 December 2018 Hedging costs rise and foreign investors sell Treasuries The Fed raised rates for the fourth time that year, despite fears of slowing global growth. Some foreign investors hedge their Treasury purchases by converting the dollar investment back into their local currency but the cost of doing that goes up when a hawkish Fed is pushing up short-term rates. After the rate hike foreign buying of Treasuries quickly dropped off, yet again forcing domestic banks and investors to step in and further draining the cash available for repo lending.

Line chart and bar chart showing how hedging costs have risen this year and foreign investors have retreated from the market as a result March 2019 The US yield curve inverts An escalating trade war compounded concerns over global growth. The yield on the benchmark 10-year Treasury fell below the yield on shorter-dated government debt , in what many investors viewed as a signal of impending recession. This discouraged some investors from buying longer-dated Treasuries, pushing banks to step in instead and further reducing their reserves.

However, some analysts contend it also encouraged investors to put their cash into short-term lending markets, cancelling out any effect on repo.

How the yield curve inverted Daily US Treasury yields with 3 month and 10 year yields highlighted (%) Cash held by the US Treasury begins to increase Congress agreed to lift a ceiling on the US national debt for two years and the US Treasury was able to borrow more, issuing additional Treasuries whose purchases again used up cash previously available for repo. The Treasury very quickly rebuilt its depleted cash balance, as the fresh cash from new debt sales came alongside the regular surge in corporate tax payments in September. www.businessday.ng

Why the Gulf states are betting on sport Saudi Arabia is following Qatar and the UAE in spending big on sporting events. But the investments have increased scrutiny over human rights Andrew England and Murad Ahmed

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ddie Hearn was feeling emotional. Flanked by boxers Anthony Joshua, a former heavyweight champion, and Andy Ruiz Jnr, a Mexican-American fighter who shocked the sport by winning their bout in June, the British sports promoter was in Diriyah, a historical site in the conservative heartland of Saudi Arabia, talking up the next championship bout.

In comparison to the usual prefight press conference, it was a polite affair. The fighters avoided trading insults and praised their hosts. Interviews were conducted after prayers.

“Sometimes our sport is very narrow minded,” said Mr Hearn, the mud-brick remains of the ruling al-Saud family’s ancestral home providing the backdrop to the setting.

“There’s Las Vegas, there’s New York, there’s London. [But] there’s a whole world out there and now there’s Saudi Arabia for boxing.”

He acknowledged that some people think Saudi Arabia is a “strange destination” for a global sports event.

But he boldly predicted that the December 7 title rematch, dubbed the “Clash on the Dunes”, would go down in the sport’s history alongside Muhammad Ali’s “Rumble in the Jungle” with George Foreman in Zaire and the “Thrilla in Manila” against Joe Frazier.

Saudi officials will hope he is right. Riyadh has spent about $50m to secure the rights to host the fight as sport becomes the latest platform through which Crown Prince Mohammed bin Salman looks to deploy the kingdom’s financial muscle to project the country on to the global stage, reshape perceptions about the desert state and shake-up the nation’s conservative society — all part of his Vision 2030 programme of economic reform.

In doing so, Riyadh is following in the footsteps of neighbouring Qatar and the United Arab Emirates, which have invested billions of dollars to make their mark on the international sports arena.

It is a trend that is rippling through the sporting world as the region’s absolute monarchies splash the petrodollars to lure superstars and top events.

Its impact has been most notable in football, from the decision to award Qatar the 2022 World Cup to the hundreds of millions of dollars Abu Dhabi and Doha have spent transforming Manchester City and Paris Saint-Germain football clubs, inflating wages and transfer fees in the English and French leagues respectively. But it is also having repercussions across motor racing, athletics, tennis, golf and, now, boxing.

Some grumble that Gulf states’

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financial clout is distorting markets, while campaigners accuse autocratic regimes of using sports brands to deflect attention from poor human rights records. The Joshua-Ruiz bout comes as Saudi Arabia is desperate to repair its tarnished image a year on from the brutal murder of journalist Jamal Khashoggi.

Simon Chadwick, a professor of enterprise at the UK’s Salford Business School, says the phenomenon is changing the global sports industry “tangibly and intangibly”.

“It has changed the face of world sport,” he says. “There’s an expectation that the region is going to be a source of revenue . . . [and] it increases expectations about what it takes to bid for and organise an event.”

The entry of Saudi Arabia, which boasts the Middle East’s biggest economy and largest population, into the sports bidding market could have the most impact yet.

“The sky is the limit for us because it is the mandate within the 2030 Vision to host the best competitions, to promote Saudi in terms of tourism and to use sports, culture and entertainment as a tool,” says Prince Abdulaziz bin Turki al-Faisal, chairman of the kingdom’s General Sports Authority. “Literally, [Prince Mohammed] says: ‘Abdulaziz, you are doing this for your country. If it’s in the benefit of Saudi Arabia, go out and do it and we don’t have any limits.’”

Days after Joshua and Ruiz exchange blows in a 20,000-capacity open-air stadium, with front-row seats selling for $13,000, Diriyah will host a $3m tennis tournament that promises to feature “eight of the finest men’s players on the planet”. In January, Saudi Arabia will stage the Paris-Dakar rally, an annual motor racing event, for the first time.

The same month, Spain’s top four football teams, including Barcelona and Real Madrid, will compete in the Spanish Super Cup in Jeddah. The new version of the tournament will earn the Spanish football federation between €35m-€40m a year over three years, according to a Spanish newspaper report, and it is going ahead despite criticism from within Spain. Rumours have also persisted that Prince Mohammed wants to buy Manchester United.

The kingdom is also hosting Formula E motor racing, the Italian football Super Cup and a round of the European golf tour, all for the second year, as well as its first cycling tour event. In February, the inaugural Saudi Cup will be run, which, with prize money of $20m, will be the world’s richest horse race.

“The idea is to host all kinds of sports . . . to have the kingdom as the hub of sports within the region,” says Prince Abdulaziz.

Officials in the deep-pocketed Gulf states say the investment is @Businessdayng

part of the broader effort to diversify oil-dependent economies and help boost tourism, brand awareness and standards in their hospitality industries.

Qatar is spending more than $200bn on infrastructure associated with the World Cup; Abu Dhabi’s Formula 1 track is the centrepiece of the $40bn development of Yas Island.

As Saudi Arabia plays catch up, it plans to pour billions of dollars into its Qiddiya sports and entertainment project, which will have a motorsports complex and an “Olympicstyle” city near Riyadh.

The development of sports industries is also viewed as important in the creation of more entertainment options for youthful populations, and boosting participation in sport partly to address some of the world’s highest obesity levels. More than two-thirds of the population in Saudi Arabia is aged under 24.

But experts say there are other motives at play, from the projection of soft power to what campaigners have described as attempts to “sportswash” the country’s poor human rights record. Similar complaints have been made against the UAE and Bahrain, which both host Formula 1 Grand Prix races.

Despite the social reforms, Saudi activists say the kingdom has become increasingly autocratic under Prince Mohammed’s watch, pointing to Khashoggi’s killing and crackdowns that have targeted academics, bloggers, businessmen, clerics and female activists.

ALQST, a UK-based group that monitors abuses in the kingdom, says: “They are trying to cover up their abuses by holding high-profile sporting events and spectacles supported by businesspeople, politicians and sporting figures around the world, who are not taking account of the deteriorating state of human rights in Saudi Arabia.”

Mr Chadwick says that after the Khashoggi murder some people in the sports industry stepped “back from association with Saudi Arabia”.But the lure of money is again trumping reputational concerns, he adds: “What I sense is people are starting to step back into the Saudi Arabian arena.”

For some Gulf states, becoming involved in sport has brought more scrutiny than they might have liked.

Qatar has been dogged by allegations, which it denies, that it corruptly secured the rights to host the World Cup. It has also drawn criticism for its treatment of foreign labourers and its stance on LGBT rights. And the sight of rows of empty seats when Doha recently hosted the World Athletics Championship also pointed to the challenges of putting on successful events in Qatar. A person close to its World Cup organising committee said the images — broadcast worldwide — were a “disaster”.

Wednesday 27 November 2019

BUSINESS DAY

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Wednesday 27 November 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Tuesday 26 November 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. 330,570.60 9.30 -5.10 288 12,000,428 UNITED BANK FOR AFRICA PLC 241,105.92 7.05 -4.08 286 11,495,698 ZENITH BANK PLC 576,125.66 18.35 -1.34 480 24,110,994 1,054 47,607,120 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 249,472.28 6.95 0.72 306 14,554,774 306 14,554,774 1,360 62,161,894 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,401,832.54 118.00 -1.67 96 4,360,893 96 4,360,893 96 4,360,893 BUILDING MATERIALS DANGOTE CEMENT PLC 2,453,833.07 144.00 -0.28 111 2,755,077 LAFARGE AFRICA PLC. 225,509.14 14.00 - 90 2,037,959 201 4,793,036 201 4,793,036 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 323,467.98 549.70 - 6 17,207 6 17,207 6 17,207 1,663 71,333,030 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 11,873.80 4.45 - 3 12,738 3 12,738 3 12,738 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 3 12,738 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 47,361.63 49.65 - 22 21,187 PRESCO PLC 37,850.00 37.85 - 17 27,707 39 48,894 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,500.00 0.50 - 3 1,102 3 1,102 42 49,996 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 794.19 0.30 - 1 1,000 JOHN HOLT PLC. 217.92 0.56 - 3 29,058 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 41,460.95 1.02 -6.42 64 10,779,991 U A C N PLC. 21,321.59 7.40 1.37 77 3,022,235 145 13,832,284 145 13,832,284 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 25,080.00 19.00 - 19 182,868 ROADS NIG PLC. 165.00 6.60 - 0 0 19 182,868 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,598.40 1.00 - 8 43,154 8 43,154 27 226,022 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 7,986.09 1.02 - 7 60,800 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 67,901.87 31.00 - 43 83,637 INTERNATIONAL BREWERIES PLC. 80,801.10 9.40 - 10 118,430 NIGERIAN BREW. PLC. 407,042.31 50.90 0.79 38 647,896 98 910,763 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 175,200.00 14.60 5.80 273 18,886,672 FLOUR MILLS NIG. PLC. 74,626.91 18.20 1.96 72 3,617,696 HONEYWELL FLOUR MILL PLC 8,168.10 1.03 0.98 26 1,667,337 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 37,092.14 14.00 - 5 50,703 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 376 24,222,408 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,406.38 9.80 - 35 132,346 NESTLE NIGERIA PLC. 1,030,373.86 1,299.90 -0.01 71 216,225 106 348,571 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,803.24 3.84 - 7 47,730 7 47,730 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 20,845.00 5.25 - 34 155,287 UNILEVER NIGERIA PLC. 93,643.59 16.30 -6.59 66 352,983 100 508,270 687 26,037,742 BANKING ECOBANK TRANSNATIONAL INCORPORATED 128,446.86 7.00 - 43 76,144 FIDELITY BANK PLC 57,949.59 2.00 -1.48 114 12,453,608 GUARANTY TRUST BANK PLC. 877,049.14 29.80 0.68 247 17,806,874 JAIZ BANK PLC 22,098.19 0.75 8.70 52 4,873,829 STERLING BANK PLC. 57,580.84 2.00 -2.00 15 1,315,580 UNION BANK NIG.PLC. 205,301.31 7.05 -0.70 19 130,018 UNITY BANK PLC 7,598.07 0.65 -4.41 21 685,987 WEMA BANK PLC. 28,159.36 0.73 -1.37 35 1,314,341 546 38,656,381 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,851.14 0.70 -9.09 32 1,329,508 AXAMANSARD INSURANCE PLC 17,745.00 1.69 - 8 43,200 CONSOLIDATED HALLMARK INSURANCE PLC 3,252.00 0.40 - 1 11 CONTINENTAL REINSURANCE PLC 22,820.04 2.20 - 4 46,080 CORNERSTONE INSURANCE PLC 11,047.13 0.75 -3.85 12 1,289,000 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 1 1,000 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,977.33 0.27 8.00 34 3,695,270 LAW UNION AND ROCK INS. PLC. 2,835.58 0.66 - 4 15,113 LINKAGE ASSURANCE PLC 4,080.00 0.51 - 3 41,200 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 6 1,103,600 NEM INSURANCE PLC 10,561.01 2.00 -4.76 7 209,897 NIGER INSURANCE PLC 1,547.90 0.20 - 1 97,297 PRESTIGE ASSURANCE PLC 2,745.10 0.51 - 0 0 REGENCY ASSURANCE PLC 1,467.13 0.22 10.00 24 2,255,336 SOVEREIGN TRUST INSURANCE PLC 1,834.98 0.22 10.00 2 119,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 3 868,500 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 4,683.96 0.35 2.86 34 1,166,408 176 12,280,420 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,743.97 1.20 - 3 10,900 3 10,900

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,200.00 1.00 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,380.00 4.19 -1.64 37 642,506 CUSTODIAN INVESTMENT PLC 35,291.19 6.00 - 8 160,030 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 39,803.45 2.01 -0.50 88 3,935,417 FCMB GROUP PLC. ROYAL EXCHANGE PLC. 1,080.53 0.21 5.00 6 503,504 STANBIC IBTC HOLDINGS PLC 419,985.42 40.10 - 25 345,618 UNITED CAPITAL PLC 14,340.00 2.39 1.70 94 24,807,374 258 30,394,449 983 81,342,150 HEALTHCARE PROVIDERS EKOCORP PLC. 2,029.31 4.07 - 0 0 852.75 0.24 - 1 1,000 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1 1,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 7,823.85 3.75 7.14 39 2,686,200 FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. 7,534.02 6.30 - 31 735,483 MAY & BAKER NIGERIA PLC. 3,381.46 1.96 - 18 301,188 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,272.44 0.67 9.84 35 1,341,419 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 0 0 PHARMA-DEKO PLC. 123 5,064,290 124 5,065,290 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 852.48 0.24 4.35 10 2,859,920 10 2,859,920 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 486.00 4.50 - 0 0 TRIPPLE GEE AND COMPANY PLC. 316.77 0.64 - 2 5,584 2 5,584 PROCESSING SYSTEMS CHAMS PLC 1,972.35 0.42 7.69 18 1,067,864 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 0 0 18 1,067,864 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,122,935.67 298.80 - 5 36 5 36 35 3,933,404 BUILDING MATERIALS BERGER PAINTS PLC 2,173.68 7.50 - 12 32,868 CAP PLC 16,940.00 24.20 - 22 231,514 CEMENT CO. OF NORTH.NIG. PLC 249,726.52 19.00 - 21 147,200 MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 1 50,000 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 56 461,582 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,342.56 1.33 1.50 31 3,074,386 31 3,074,386 PACKAGING/CONTAINERS BETA GLASS PLC. 26,898.49 53.80 - 3 14,697 GREIF NIGERIA PLC 388.02 9.10 - 0 0 3 14,697 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 90 3,550,665 CHEMICALS B.O.C. GASES PLC. 2,547.42 6.12 - 4 27,852 4 27,852 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 2 6,000 2 6,000 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 83.60 0.38 - 0 0 0 0 6 33,852 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,377.79 0.22 4.76 33 2,457,309 33 2,457,309 INTEGRATED OIL AND GAS SERVICES OANDO PLC 47,860.94 3.85 - 63 863,881 63 863,881 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 53,332.04 147.90 - 16 38,791 CONOIL PLC 12,838.11 18.50 - 17 98,300 ETERNA PLC. 3,651.61 2.80 - 7 59,000 FORTE OIL PLC. 23,574.91 18.10 - 45 274,297 MRS OIL NIGERIA PLC. 4,663.23 15.30 - 10 4,010 TOTAL NIGERIA PLC. 37,652.97 110.90 - 18 6,844 113 481,242 209 3,802,432 ADVERTISING AFROMEDIA PLC 1,598.06 0.36 -2.70 2 111,000 2 111,000 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 270.56 0.23 - 15 129,714 15 129,714 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,623.26 4.45 - 8 2,915 TRANS-NATIONWIDE EXPRESS PLC. 398.52 0.85 - 2 36,200 10 39,115 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 0 0 IKEJA HOTEL PLC 2,598.50 1.25 - 1 25,440 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 1 180 TRANSCORP HOTELS PLC 41,042.18 5.40 - 1 500 3 26,120 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 0 0 LEARN AFRICA PLC 972.03 1.26 - 3 50,000 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 629.86 1.46 - 0 0 3 50,000 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 679.66 0.41 - 4 25,000 4 25,000 SPECIALTY INTERLINKED TECHNOLOGIES PLC 757.44 3.20 - 0 0 SECURE ELECTRONIC TECHNOLOGY PLC 1,126.31 0.20 - 0 0

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Wednesday 27 November 2019

BUSINESS DAY

57

FINANCIAL INCLUSION

& INNOVATION

Technology takes centre stage in financial transaction as Mobile App tops Nigerians’ choice …Agusto & Co assigns ‘4 star’ ratings to Zenith Bank for highest transaction success rates Stories by Endurance Okafor

M

obile & App Ba n k i ng i s the most preferred online digital platform for making financial transactions among Nigerians, the 2019 Consumer Digital Banking Satisfaction report by Agusto & Co., a foremost Pan-African credit rating agency has shown.

The advent of smartphones, which are typically internet-enabled and allows customers to easily execute banking transactions, explains why a larger percentage of respondents from the report use Mobile & App banking as the primary platform.

An analysis of the report revealed that internet banking platform requires more security details of customers when carrying out transactions, and as a result, the Mobile & App banking is mostly “preferred by customers executing out larger value transactions.”

The report by Agusto & Co., focused on the eight largest commercial banks out of Nigeria’s 18 deposit money banks operating in the country. The banks were selected based on their asset sizes as of December 31, 2018.

“Respondents were drawn from four out of the six geopolitical zones in Nigeria. Respondents from the Federal capital territory represented the North-Central geopolitical zone, the North-West region was represented by respondents from Kano state

while respondents in Rivers and Lagos states represent the South-South and South-West geopolitical zones respectively,” the report stated.

According to the Lagosbased credit rating agency, the objective of the survey was to create an independent appraisal of the ease of using digital banking platforms by the Nigerian populace following an increased competition by banks on digital platforms as well as the growing quest for financial inclusion using digital means.

From the survey, a crosssection of bank customers in Nigeria revealed that Mobile & App banking is the platform of choice, 60 percent of respondents use the platform as their primary digital platform.

USSD is the primary platform for 19.2 percent of the respondents while 19.6percent of the respondents use internet banking as their primary digital platform.

“USSD banking which supports the financial inclu-

sion objective of the CBN is the second most used platform by respondents as customers are able to carry out banking transactions without access to internet facilities,” Agusto & Co said in a mail response to BusinessDay on Monday.

Through the National Financial Inclusion Strategy (NFIS), the Central Bank of Nigeria plans to ensure 80percent of the country’s population is included in the financial net by 2020. It also targets a 95 percent financial inclusion rate by 2024.

The Central Bank adopted the NFIS in 2012 to reduce the percentage of adult Nigerians who do not have access to financial services from 46.3 percent in 2010 to 20 percent in 2020.

However, most recent data by EFInA put Nigeria’s financial inclusion rate at 63.2 percent, meaning that as much as 36.8 percent of adults still lack access to financial services.

Commenting on how to deepen financial inclusion in a country like Nigeria where millions live on less than $2 a day, Patrick Akinwuntan, the Managing Director of Ecobank Nigeria said: “one of the most important gadgets that can be used to spur inclusive financial inclusion is mobile phone and so if there are charges attached to the use, it will affect inclusion.”

According to Oghogho Osula, financial expert and former MD/CEO of Coronation Trustees Limited, Nigeria has a large mobile market, and the huge number provides an opportunity to use it in deploying easy-to-use technology that can improve access to financial services.

“Ease of navigation remains a major factor that attracts and retains customers on the digital banking platforms,” Agusto & Co. said.

Further analysis of the Consumer Digital Banking Satisfaction report by Agusto & Co. revealed that the Mo-

bile & App banking platform that offers relatively easy and convenient access to banking services is the most popular digital banking platform among respondents as 82.6percent are aware of the platform.

About 57.2percent of the respondents are aware of the internet banking platform while 45percent are aware of the Unstructured Supplementary Service Data (USSD) platform. An average of 61.6percent of respondents is aware of the three major banking platforms.

“Chatbot programs such as (Ecobank’s Rafiki and Leo

by UBA) that uses artificial intelligence to enable customers to execute transactions and address inquiries were also identified by the respondents, albeit marginal,” the report said.

From the findings by Agusto & Co when it asked respondents to rate how secure they felt when initiating transactions on their respective Bank’s platforms, it recommended that: “Banks should increase investment in technology to ensure the protection of customers’ data.

Banks should also educate the customers on the importance of protecting the security details on various digital platforms.”

A new public opinion poll conducted by NOIPolls shows that 61 percent of the country’s population is now using the internet.This translates to about 120 million Nigerians who are now using the internet, thanks to the affordable and fairly used phones that have found their way into the

country.

“With a very well-developed mobile market, and many tech-savvy consumers, there are exciting opportunities for mobile-based digital identity solutions in Nigeria,” Calum Handforth, Senior Consultant at GSMA said.

The Consumer Digital Banking Satisfaction Index report by Agusto & Co.in its second year assigned a ‘4 Star’ rating to Zenith Bank Plc as it scored the highest in terms of digital banking satisfaction to customers, emerging the ‘Best Digital Bank in Nigeria’.

According to the rating agency, the report which took into account a number of factors like ease of navigation, range of services available on the platforms, range of platforms known by customers, perceived security strength and transaction success rates was designed to gain insight into the behavioural patterns of the respondents, these respondents were selected from both the formal and the informal sector. “The output of the Index is based on information provided by respondents on the top eight banks in Nigeria by total assets as of 31 December 2018.”

“The ‘4 Star’ rating assigned to Zenith Bank Plc reflects transaction success rates, ease of use, perceived security and good troubleshooting & IT resolution on its different digital platforms.

The Index revealed that Zenith Bank Plc has the highest transaction success rates on the bank’s digital banking platforms,” it said.

PalmPay targets 36m unbanked Nigerians with launch of a new app …obtains mobile money licence

P

almPay, an Africafocused fintech firm announced that it has launched an app that will not only reward its users for making payments but will give Nigeria’s excluded population access to secure and easy to use financial services.

The mobile wallet will offer customers a platform to top up funds electronically or via offline access points, with the ability to make and accept individual and merchant payments, the company has said.

According to Greg Reeve, Global PalmPay CEO, consumers can access a range of digital services via the PalmPay mobile app, including P2P transfers, airtime and bill payment. The company is seeking

to carve out market share by positioning itself as “the payment app that rewards you.”

“Our USP of offering cashback and discounts to users has caught on in the pricesensitive Nigerian and Ghanaian markets. ” Reeve said.

In Nigeria, PalmPay is offering 10% cashback on airtime purchases and bank transfer rates of N10 with free deposits and withdrawals to its mobile wallet. Over a million transactions have been made on the platform within its first two months of pilot operations and the company is now eyeing rapid expansion.

Recent data by EFInA put Nigeria’s financial inclusion rate at 63.2 percent, meaning that as much as 36.6 million adults still lack access to fi-

nancial services. Therefore, PalmPay’s strategy to achieve nationwide reach is to offer a platform where both banked and unbanked consumers can access financial services.

To do this, the company has obtained an Approvalin-Principle to operate as a Mobile Money Operator (MMO) from the Central Bank of Nigeria. This will allow it to build an agent network to facilitate in-person cash in and cash out to its mobile wallet.

PalmPay’s announcement included a $40m USD seed round that was led by smartphone brand TECNO mobile, which it plans to invest to build out its payment infrastructure in Nigeria and other African countries. The device brand is also supporting PalmPay

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with an exclusive pre-install deal, which will see at least 20 million phones come with the app out of the box from next year. Additionally, PalmPay will be able to leverage TECNO’s offline distribution network of thousands of retail shops and sign them up to its mobile money agent network.

“Tecno has helped expand access to smartphones among the Nigerian population. We are now looking to leverage this infrastructure to further improve people’s lives.” said Stephen Ha, General Manager of TECNO Mobile. “We see a huge growth opportunity in mobile payments and financial services on the continent and are looking forward to working together with the PalmPay team to help shape

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the future of payments in Africa.”

PalmPay also plans to leverage the network of 100,000 merchants belonging to Visa, which the company counts as strategic partners. In April 2019, PalmPay announced that it would work together with VISA to roll out innovations in the African digital payments space. As a result of the collaboration, Visa cardholders are able to initiate payments within the app and make online and mobile payments by attaching their card details to their PalmPay profile. Non-card carriers will be able to generate a virtual Visa card upon registration.

The PalmPay app will provide access to a variety of other financial products offered @Businessdayng

by third parties. According to Reeve, this ecosystem approach by the Africa Fintech firm is key to help it achieve its goal of becoming the continent’s largest payments platform.

“We want to provide the best choice and value in the market to consumers so that PalmPay becomes a one-stop financial hub, online and offline,” said Reeve.

Through its partnerships with TECNO mobile and Visa, PalmPay is building out a very reliable payment network that will soon reach millions of users. “We also welcome other companies to join forces with us so we can work together to deliver the best choice and value for consumers”

Thebigread

BUSINESS DAY Wednesday 27 November 2019 www.businessday.ng

Impeachment: The facts pile up against Donald Trump ...witnesses claim the president pressured Ukraine to investigate his opponents, but there is no sign Republicans will abandon him Demetri Sevastopulo

W

hen Gordon Sondland appeared on Capitol Hill this week before the impeachment inquiry, Republicans were hoping that the US ambassador to the EU and Trump donor would spring to the defence of the US president.

But before the wealthy hotelier had taken his seat, he made clear he would not take the fall for Donald Trump.

The president denies pressuring Kyiv to open probes into his domestic political opponents, insisting there was “no quid pro quo” in his treatment of Ukraine.

But the man who donated $1m to the Trump inauguration in return for “a VVIP ticket” said otherwise.

“Was there a quid pro? . . . The answer is yes,” Mr Sondland said in explosive opening testimony.

He then implicated other officials, including Mike Pompeo, secretary of state, Mick Mulvaney, White House chief of staff, and John Bolton, then national security adviser. “Everyone was in the loop. It was no secret.”

Mr Sondland’s salvo sparked comparisons to John Dean, the White House aide to Richard Nixon whose devastating testimony to the Watergate inquiry in 1973 about a “cancer growing on the presidency” paved the way to the resignation of the 37th American president.

Commentating on the hearing from a CNN studio, Mr Dean said Mr Sondland had “caught the Republicans off guard” and that it was “a big day . . . because the truth has come out”.

However, there is one big difference to the Watergate era. The first two weeks of the impeachment hearings have been damaging for Republicans as a number of witnesses have meticulously laid out evidence that the Trump administration pressured Ukraine to investigate Joe Biden, the former vice-president and one of the leading candidates for the Democratic nomination.

Yet in an era where politics is polarised and party identities rigid, there has so far been no indication of Republican politicians turning against the president — as they eventually did with Nixon.

John Barrasso, the number three Senate Republican, told the Financial Times that Mr Sondland “did not move the needle” for his party’s peers, who will serve as jurors if the Senate holds an impeachment trial.

“You need 67 votes to remove a president . . . 47 Democrats and 20 Republicans,” he says. “I see no sign at all of Republicans abandoning the president. The case is very flimsy. The most I hear from some is that his behaviour was

inappropriate but not impeachable.”

Indeed, no event has captured better the split-screen nature of American politics, with one group of voters watching the hearings through the prism of CNN, MSNBC and the main networks, while another section sees only the version told by Fox News, which often presents a completely different set of facts.

Mr Sondland managed to ignite panic inside the White House. In the middle of what ended up being roughly six hours of testimony, Mr Trump emerged from the White House with handwritten notes in big capital letters on an Air Force One notepad.

“I want no quid pro quo,” Mr Trump read from his notes, repeating comments that he reportedly made to Mr Sondland in September after learning that a whistleblower had questioned his dealings with Ukraine — the development that eventually sparked the impeachment process. Mr Sondland was one of nine current or former Trump administration officials who this week painted a collective picture of a White House that piled the pressure on Kyiv.

One of the most devastating witnesses was Fiona Hill, a naturalised American citizen who grew up in an English coalmining family and who was the senior National Security Council official for Russia and Europe.

Aided by crisp and direct responses, Ms Hill’s testimony was particularly powerful because she accused Republican members of Congress of helping to create an alternative reality about the Trump administration and the 2016 election that clashed with

the facts.

She compared the attacks against the Jewish billionaire George Soros, which some Republican politicians have helped to publicise, to “The Protocols of the Elders of Zion”, an infamous anti-Semitic text from the early 20th century. Ms Hill also rebuked Republicans for propagating a “fictional narrative” that Ukraine interfered in the 2016 election — a conspiracy theory that she said had been pushed by Russian intelligence.

As if to illustrate her point, President Vladimir Putin said this week: “Thank God no one is accusing us any more of interfering in elections in the United States.

Now they are blaming Ukraine.”

But it was Mr Sondland who was the key witness, as he was one of the few officials who had direct contact with Mr Trump about Ukraine. He had also been implicated by others who recounted him saying that Mr Trump wanted the Biden investigations as a condition for a call and meeting with Volodymyr Zelensky, who took over as president in May. Aides at the NSC were frustrated at the large role Mr Sondland played in Ukraine policy, given that this was not part of his EU portfolio. Tim Morrison, who succeeded Ms Hill at the NSC, said he was known as the “Gordon problem”.

“That’s what my wife calls me,” Mr Sondland joked.

Ms Hill recounted having disputes with Mr Sondland, but said she now realised that he had been given a separate mission — one at odds with the administration’s foreign policy team, which was trying to ensure that Ukraine had political

and military support to stand up to Moscow. “He was being involved in a domestic political errand, and we were being involved in national security foreign policy. And those two things had just diverged.”

That “domestic political errand” is at the heart of the impeachment inquiry examining claims — supported by Mr Trump’s comments on the July 25 call with Mr Zelensky — that the president wanted Ukraine to announce that it would open a probe into Mr Biden and his son Hunter who was on the board of Burisma, a Ukrainian gas company.

Mr Sondland said Mr Trump had ordered him to work with Rudy Giuliani, the president’s personal lawyer, who was at the heart of the dealings with Mr Zelensky. He said he did not realise that the calls to investigate Burisma were an effort to find dirt on Hunter Biden. That prompted scepticism from Democrats, who quipped that Mr Morrison had worked out the connection via Google in just 30 seconds.

“I’ll let the American people judge the credibility of that answer,” said Adam Schiff, the Democrat leading the inquiry.

David Holmes, a US diplomat based in Ukraine, described how Mr Sondland had called Mr Trump from a Kyiv restaurant the day after the president spoke to Mr Zelensky.

When Mr Trump asked about the investigations, Mr Sondland replied that “Zelensky loves your ass” and would do anything for the president.

After the call, Mr Sondland told Mr Holmes that the president “did not give a shit” about Ukraine

and only cared about “big stuff” like the “Biden investigation”. Mr Sondland said he did not recall mentioning the Bidens, but did not dispute the overall description of the conversation.

“It sounds like something I would say. That’s how President Trump and I communicate, a lot of four-letter words, in this case three letters,” Mr Sondland quipped, adding that the phrase “loves your ass” was his way of conveying the situation in “Trump-speak”.

The impeachment inquiry is also investigating whether the White House decision to withhold $391m in congressionally approved military aid for Ukraine — which was blocked for two months on the orders of Mr Trump — was part of the pressure applied on Kyiv.

Mr Sondland said he learnt about the aid decision in July, but did not realise until later it was part of the pressure campaign.

Asked by Democrats if this realisation was a case of “two plus two equals four”, he replied: “Pretty much.”

Republicans then scored points by forcing him to concede that no one — including Mr Trump — had explicitly made the connection between withholding aid and investigating Burisma.

“In mathematics . . . two plus two does equal four,” said Brad Wenstrup, an Ohio Republican. “[But] two presumptions plus two presumptions does not equal even one fact.”

Jonathan Turley, a George Washington University law professor, says Mr Sondland had used a strategy of “mutually assured destruction”.

“He set out to implicate as wide a circle as possible, but he helped the Republicans in critical ways,” says Mr Turley. “He helped the Democrats in acknowledging his view of the quid pro quo, but he seriously undermined their narrative [by saying] he never heard the president state a quid pro quo”.

In wrapping up this week’s hearings, Mr Schiff said what the inquiry had learned was “far more serious than a third-rate burglary” — in a reference to Watergate. “This is beyond anything Nixon did,” he said, adding: “Where is Howard Baker?” He was referring to the Republican senator who asked during Watergate, “What did the president know and when did he know it?” While Mr Baker had defended Nixon, he changed his mind over time, helping to alter the party’s view of the president.

But for Republicans, Mr Sondland was just the latest in a string of witnesses called by Democrats to help oust Mr Trump, both to avenge 2016 and prevent him from winning re-election.

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