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entral Bank of Nigeria (CBN) is to review the sanction it imposed on Standard Cha r te re d Ba n k, Citi Bank, Stanbic-IBTC and Diamond Bank over their alleged Ifeanyi Okowa (m), governor, Delta State; Sheriff Oborevwori (r), speaker, Delta State House of Assembly; Lyna Ocholor (2nd r), Clerk of the House; Peter Mrakpo (l - standing), attorneygeneral and commissioner for justice, and Ovie Agas, secretary to state government, during the signing of Delta State Appropriation Bill 2019, in Government House, Asaba.

involvement in the irregular issuance of certificates of capital importation (CCIs) on behalf of MTN. This was the basis of the order on the telecoms firm to repatriate over $8 billion it exported out of Nigeria. In August, the CBN had im-

posed a total fine of N5.87 billion on the four banks citing flagrant violations of Nigeria’s foreign exchange Monitoring and Miscellaneous Act of 1995 and the 2006 Foreign Exchange Manual when the banks acted for MTN in the repatriation from Nigeria of a total of $8.134 billion at various

-0.06 13.43

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MTN matter: CBN to review N5.8bn sanction on 4 banks C LOLADE AKINMURELE

FGN BONDS

TREASURY BILLS

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times between 2007 and 2015. However, on December 24, the CBN virtually reversed its order when it said that on the basis of fresh facts submitted by MTN, the telecoms firm was being let off with a “notional” reversal of Continues on page 39

ANALYSIS

Iran’s 2019 budget points way for Nigeria on reducing oil dependence ... Budget least tied to oil among OPEC member states

ISAAC ANYAOGU aced with US sanctions which has cut nearly 1million barrels per day (bpd) from its daily production of over 2.7million bpd, Iran has drawn up a micro policy hinged on

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Inside One Lagos fiesta kicks off with Star Lager P. 37

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N1.03trn alleged corrupt enrichment: PDP tasks Buhari to come clean ... as Presidency berates Atiku over 2019 budget criticisms

OWEDE AGBAJILEKE & TONY AILEMEN Abuja

he PDP Presidential Campaign Organization has called on President Muhammadu Buhari to come out clean on the allegation that his family members corruptly acquired part ownership of Etisalat Nigeria and Keystone Bank PLC with the sum of N1.03 trillion. The campaign organisation believes the APC Presidential candidate no longer has the moral standing to seek re-election until he directly answers its Presidential candidate, Atiku Abubakar, on the revelation that the President has soiled his hands in the alleged corrupt acquisition of the two firms. Addressing a press conference in Abuja on Thursday, Kola Ologbondiyan, Director, Media and Publicity, PDP Presidential Campaign Organization, threatened to release details of the transactions if the President denies the allegations. He accused the president’s aides of not addressing the allegations raised against him, stressing that Buhari himself should come out personally to address the matter. According to Ologbondiyan, “Nigerians are not interested in mere rhetoric or attempts by the Buhari Presidency to divert public attention from the issue at hand, but demand that President Buhari, who hitherto prides himself as Mr. Integrity, squarely addresses these grave issues in person. “This is not an issue for President Buhari’s aides to howl about in the media, it touches directly on his person, particularly his perception as a symbol of the Talakawas. He must therefore address them on this issue. “It is a norm that he who comes to equity must come with clean hands. President Buhari and his family members have entangled themselves in corruption. Mr. President’s hands can no longer be said to be clean, until he proves otherwise. “The PPCO wants Nigerians and the whole world to note that President Buhari’s refusal to personally address this matter means consent. “We, therefore, dare President Buhari to put forth a denial on this disclosure by our candidate and we

will spare no thoughts in furnishing the public with details of his corrupt activities within and outside Nigeria. “Our party has full details of how persons related to President Buhari, by consanguinity and affinity, have paved the way for trillions of naira to be looted from government agencies for corrupt acquisition of shares in major companies, purchase of expensive property within and outside Nigeria, as well as to finance their very luxury lifestyles, under the President’s cover”. He alleged that no Nigerian has made more money in the last three and halfyearsthanrelationsofthePresident. The campaign director further alleged that relations of the President have been hounding government agencies, major business concerns and intending foreign investors over kickbacks as well as strangulating companies that refuse to accede to their demands. “President Buhari should therefore not continue to dress himself in borrowed garb of integrity until he cleans himself of the stinking corruption of his acolytes, family and friends under his cover,” he added. Meanwhile the Presidency has berated the presidential candidate of the Peoples’ Democratic Party (PDP), Atiku Abubakar, over his views on the 2019 budget, saying they are “ high on rhetoric and low on real solutions.” Atiku had last weekend, issued a statement in which he described President Buhari’s 2019 budget proposal as fundamentally flawed and failing to address current realities. According to the Special Adviser to the President on Media and Publicity, Femi Adesina, “ Atiku describes the underlying assumptions of the budget as generous, wild and untenable but does not propose alternative assumptions that would have been more appropriate.” The Presidency while rejecting Atiku’s position that the economy was still in recession, explained that when an economy experiences two consecutive quarters of negative GDP growth, it is said to be in recession and whenever it returns to positive GDP growth of whatever rate, it is said to have exited recession, adding that “ it is doubtful if he understands the simple meaning of recession.”

Vision 20:2020: With just a full year left, how achievable is it? ISRAEL ODUBOLA AND SEGUN ADAMS

ith just one year until year 2020, Nigerian government seems to have jettisoned its vision 20:2020, the goal to be among the 20 largest economies in the world by that time. For now, there is no sign that this target is still on the front burner. According to International Monetary Fund’s (IMF) latest nominal GDP ranking for 2017, Nigeria took the 31st spot with a GDP figure of $376 billion, behind Austria (28th), Norway (29th) and United Arab Emirate (30th). Vision 20:2020 was enunciated in 2009 during the Late Yar’Adua administration. The mandate is to ensure that the economy of Nigeria is among the largest twenty economies in the world in terms of

GDP size by the year 2020 “The reality of the matter is that current and preceding governments have abandoned the vision 2020 project. A vision doesn’t materialise on its own, there must be milestones to measure progress and ensure continuity of plan,” Johnson Chukwu, CEO, Cowry Asset Management Limited, said. Considering that the economy’s recovery from recession has been sluggish, Nigeria has lost its place among the fastest growing economies in Africa, let alone the world. After the economy exited from recession in the second quarter of 2017, GDP growth rates recorded have been positive, but staggering. For instance, GDP growth rate fell from 2.11 percent in Q4 2017

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L-R: Bode Ojeniyi, executive director, Wapic Insurance plc; Adeyinka Adekoya, managing director, Wapic Insurance plc; Bankole Bernard, national president, National Association of Nigeria Travel Agencies; Aina Akintonde, group head, customer experience, service and fulfilment, Wapic Insurance plc, and Ayodeji Bankole-Olusina, managing director designate, Wapic Assurance Limited, at the launch of Wapic Travel Insurance in Lagos, recently. Pic by Olawale Amoo

Nigerian cement makers poised to take advantage of increased infrastructure spend BALA AUGIE

ement makers in Africa’s largest economy are poised to take advantage of increased infrastructure spend by the federal government and private sector as they are implementing strategic plans with a view to increasing their share of the market. Analysts say Nigeria’s infrastructure gap is a sustainable

demand point for cement demand as the debt office estimates the country’s annual infrastructure need at $3 trillion over the next 30 years. This is on top of the rising population that crave for accommodation and a housing deficit of 17 million units. President Muhammadu Buhari has presented to a record budget of N8.83 trillion for 2019 to the National Assembly, of which N2.83 trillion has been earmarked for

capital expenditure. Cement makers are strengthening strategies that will give them the leeway to taking advantage of the above fiscal policy opportunities. For instance, Cement Company of Northern Nigeria (CCNN), owners of the 500,000 metric tonnes per annum Sokoto Cement Plant, merged with Kalambaina Cement Company Limited Plant-

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Nigeria’s Labour productivity up 7.54% in Q3, 2018 SEGUN ADAMS

usinessDay analysis shows that the productivity of the Nigerian labour force went up by 7.54 percent in Q3 2018. The analysis which was based on a weekly work rate of 35 hours show that the average labour produced N810.61 or $2.22 (N365/$) per hour in the quarter from N753.79 in Q2 2018. The National Bureau of Statistics (NBS) Productivity Report (2016) showed that the annual productivity rate rose continuously from N471.94 in 2011 to N718.14 in 2015, before falling to N684.43 in 2016. According to BusinessDay findings, the figure was N792.62 in 2017 Q4 and fell to N709.23 in 2018 Q1. Labour productivity also referred to as workforce productivity measures how much of the GDP is produced at an hourly rate and it is a good indicator of labour efficiency. Globally, it is a measure of output per unit of input and how much labour effort is needed to produce a unit of output. To compute, the Gross Domestic Product for a given year is divided by the Labour input in the same year. More specifically, the national Bureau of Statistics measures it as the ratio of GDP at current prices (N) to the Total Hours Worked per Year. Addressing issues affecting

labour productivity in Nigeria, Bongo Adi a senior lecturer at Lagos Business School explains that labour and capital complement each other in the creation of output and both are affected by the level of technology available in the economy. “When you talk about the determinants of labour productivity, you are looking at competence level of individuals; you’re looking at human capital. The most important thing is the technology available, so what capital endowment does the average worker have access to in Nigeria?” he said. Speaking further, he lamented the state of infrastructure which he says handicaps labour. “When you put that (the aforementioned) together, you need to consider also the state of infrastructure, which is also an indirect input in production. Labour cannot work alone, it works in consonance with capital and both work together with infrastructure… as long as infrastructure is poor and capital endowment is very low, we definitely would end up with low level of productivity.” Proffering solutions to the current situation Adi said there is a need for Firms have to acquire the skills that would make them more efficient. “To build labour productivity is a long term process. There is a supply side which requires people

to acquire the right skill. On the demand side there needs to be demand for high level of skills which would encourage people to acquire high level skills. The amount of skills people will have is a direct consequence of the demand by industries. ” He further advised this would be the necessary measure and although it might create unemployment in the short run, the long term benefits would be an improvement in the quality of output Nigerians produced. “It is not a matter of numbers, it is matter of quality. Take for instance, if you have a million people farming on a million of acres of land, they are not going to produce much but if you have an advanced system then you have just few tractors, they would produce a billion times over what low skilled Nigerians would. Few (skilled) people driving the tractor therefore would be more productive than few low skilled farming without,” Adi said. Analysts say there is much that needs to be done by both by the Government and Private sector to improve the level of productivity of labour in Nigeria. While it behoves on the government to provide infrastructural facilities and invest in the education of the populace, the private sector has to encourage labour to acquire the skills that ensure they add more value in production, they said.

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Curiousity is the ultimate art of intelligence Eizu Uwaoma

Uwaoma is a start-up, corporate restructuring and strategy consultant, and wrote via contacteizu@gmail.com

’ve been thinking, do blind people feel love at first sight? Why is the word “abbreviation”, so long? Why is the meaning of life hard, when you have a dictionary. Well, my little niece once asked me, “Uncle Eizu, are oranges named orange because the colour is orange, or is the colour orange, orange because it’s same colour as the fruit orange?” Someone asked me, “why is the third hand of a clock called a seconds”. I think these are brilliant questions. Be curious. Ask questions. In the word of Henry Ford, “Anyone who stops learning is old. Whether at twenty or eighty. Anyone who keeps learning stays young.

The greatest thing in life is to keep your mind young”. “The important thing is not to stop questioning.” – Albert Einstein Question can be start of a great quest. Be curious. Curiosity killed the cat. But that’s a very honourable way to die. Ask questions. A brand built on curiosity to help your curiosity, (Google) is today, the richest in the world. It hit the trillion dollar mark dollars this year. With its net income between the first and second quarter of the year between most African countries GDP combined. Kids grow from asking question without thinking through it, even if it’s silly and that’s how they learn. I volunteered at a teenage boot camp sometimes ago, and while teaching business and financial intelligence, one of the kids asked me, “how can a man who invests money be called a “broker”..lol.. I love kids. When I grow up, I’ll like to be like them. Having lost our childish but awesome gift to ask silly questions, we need to nurture the curiosity of their young minds to find solutions to our world. We need to structure

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Curiosity took the first men to space, and the reward became satellites and today’s internet. Out of sheer curiosity, men once dug the ground to find what was underneath, and guess what they found today’s clean water!

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out curiosity. Be curious. Dig for knowledge and you will be shocked with the other discoveries you will make. Curiosity took the first men to space, and the reward became satellites and today’s internet. Out of sheer curiosity, men once dug the ground to find what was underneath, and guess what they found today’s clean water! But out of satisfaction, they

stopped digging. It took millenniums later for a new set of curious men to carry on that curiosity, and guess what they found after water.. Crude oil!… now what’s next, gas, Uranium, a new planet was found last month, it’s the closest and best thing to earth, it is most likely going to be the next home for the next generation. Life is deep, there are things the forces of the universe does not want us to know. So when you become too curious, it distracts you, by giving you something else, with vague and material success. So curiosity at less, is our trick to succeed. Outsmart the universe. My dear, Keep digging! A little knowledge is a dangerous thing. If you must drink from its fountain, drink a lot or drink not at all, for a little intoxicates the mind, but the much makes us deep and sober, wisdom. Knowledge is the new gold. But it’s important to know when, where and what to explore and what to exploit, knowing when to explore mainly and the others times to exploit. It’s about finding that delicate balance like YingYangs do.

Exploitation is that leveraging phase of what you already know or have. Exploration, on the other hand, is those times you need to just stop already because you need to apply something else, you need to learn something new. The challenge is that a lot of people don’t know when to explore a new idea, concept, trend or opportunity, when to keep exploring then suddenly stop; to stop digging for gold to start exploiting it because you already have acres of it. And as you exploit, you keep at it till the point to not get too comfortable with exploitation. At that point you move on to exploring. If we were to draw it in a quadratic graph, that point of sudden turn just before redundancy sets in, and marginal growth becomes zero, innovation will be born through exploitation. Life is all about exploration and exploitation, same as business. Stay on a delicate balance between both. If you knew better, you’ll do better. Before you make up your mind, open it.

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With weaker climate consensus, expect elevated climate change

Dan Steinbock Dan Steinbock is the founder of Difference Group and has served as research director of international business at the India, China and America Institute (US) and a visiting fellow at the Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup. net/

s representatives from more than 100 countries debated climate change in the COP24 - the 24th UN climate change conference – held in Katowice, Poland, the outcome could only be divisive. In the past, collective consensus by major economic powers - U.S., the EU, Japan and China - fueled success. Now the planned withdrawal of the U.S. from the Paris Accord resulted in a hollow consensus, supported by big-oil opposition. Like the recent G20 Summit, which welcomed trade but did not reject protectionism that undermines trade, Katowice agreed on a “compromise,” which welcomed the alarming climate UN (IPCC) report, but not its actual findings. The price could be the virtual extinction of small island states as seas rise, followed by soaring costs of climate change in emerging and developing economies. Katowice’s “administrative” compromise virtually ensures that the extreme urgency required by the “rule book,” which would allow countries to implement the Paris Agreement,

will be ignored. The planned Trump exit from Paris Accord Risks have escalated since June 1 2017, when President Trump announced his decision to withdraw the U.S. from the Paris Climate Agreement - an international pact intended to reduce the effects of climate change by maintaining global temperatures “well below 2°C above pre-industrial levels.” The Accord was negotiated by almost 200 parties and adopted by consensus in December 2015. Based on the UN convention on climate change, it focuses on greenhouse gas emissions mitigation, adaptation and finance starting in 2020. However, Trump calls the pact a “bad deal” for the U.S. and sees the withdrawal as a key piece of the “America First” stance. The White House began to pave the exit path in March 2017, when Trump signed an executive order to start the formal process of repealing President Obama’s climate agenda. The withdrawal split the White House, the Congress, and the nation. A few powerful lobbying groups, energy giants and billionaires effectively hijacked the fight against climate-change, which most Americans and U.S. cities support. More recently, the White House ignored a new government report, which concluded that, in the absence of significant steps to subdue global warming, U.S. economy will take severe hits and cause the death of thousands of Americans by 2100. It is within the U.S. president’s constitutional authority to withdraw from the Paris deal without first receiving congressional or senatorial

approval. But legal questions linger as to how the Trump White House can execute the withdrawal and what role the U.S. can play in future international climate meetings. The role of China, emerging and developing economies Since the early 2010s, it has often been said that China is the “world’s greatest polluter.” That’s true but only in aggregate terms. By default, big nations pollute more than small ones. Moreover, emerging economies that are still industrializing generate relatively more pollution than advanced nations, which industrialized over a century ago. The simple fact remains that, on per capita basis, the U.S. and major European economies remain the greatest polluters by far, however. According to research, China contributes barely 10-12% of human influence on climate change. That figure has remained fairly steady over the industrial period. It is lower than might be expected for the world’s largest aggregate emitter. As the major advanced economies, including the U.S. and Europe, have been emitting far longer, their net contribution on climate change remains relatively far higher. Climate change is not just cumulative but accumulative. If the U.S. exit will materialize, global climate risks will intensify dramatically, particularly in emerging and developing economies. The 10 countries most affected by climate risk Between 1998 and 2017, Puerto Rico, Honduras and Myanmar ranked highest among the countries that have been most affected by climate change. Less developed countries are generally more affected than industrialized

countries. Yet, even, high income countries feel climate impacts more clearly than ever before. Regarding future climate change, the new Global Climate Risk Index can serve as a red flag for already existing vulnerability that may further increase in regions where extreme events will become more frequent or more severe due to climate change. The 10 countries most affected in the past two decades feature mainly poorer economies in Asia (Myanmar, Philippines, Bangladesh, Pakistan, Vietnam and Thailand) and Americas (Honduras, Haiti, Nicaragua and Guatemala). The Index measures long-term global risk as a function of death toll, deaths per 100,000 inhabitants, absolute losses in US$ millions, losses per unit GDP in percentage and total number of climate events from 1998 to 2017. In this regard, there are differences among the most affected countries. In the case of Puerto Rico, the top rank was driven by a very high death toll and costly economic losses, but the number of events was low relative to other countries. In Myanmar, the high death toll explains the score. In Dominica, Puerto Rico and Haiti, the losses per unit GDP drove high rankings. In international comparison, the Philippines death toll has been relatively high in the past two decades, while its economic losses were among the highest. But it is the number of total events in the Philippines (over 300) that was the highest among the top-10 countries. Only Vietnam and Bangladesh come close, but even they had just two-thirds of the climate events in the

Philippines. And in the top-ranking Puerto Rico and Honduras, total events were less than a 10th and 5th of those in the Philippines. Toward accelerated climate change Since the 1980s typhoons that strike East and Southeast Asia have intensified by 12–15%, with the proportion of storms of categories 4 and 5 having doubled, even tripled. Under increasing greenhouse gas forcing, the projected ocean surface warming pattern suggests that typhoons striking Asia will intensify further. Ironically, global climate change will penalize particularly those economies where living standards remain low and that are most vulnerable to collateral damage. The more poor economies will lose lives, the more that will bespeak about the effective indifference of advanced nations toward real human rights. Timing matters. Under the agreement, the earliest date of the U.S. withdrawal is November 2020 - the last month of the Trump presidency, in the absence of a prior impeachment. That’s when Americans have to decide whether they really prefer energy profits, at the expense of future generations in the U.S. and elsewhere. Furthermore, time is running out. According to estimates, current climate policies virtually ensure that the increase in global temperatures is on pace for somewhere around 3.3 degrees Celsius. That does not bode well for the future.

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comment Positive Growth with Babs

Babs Olugbemi Olugbemi FCCA, the Chief Responsibility Officer at Mentoras Limited and Founder, the Positive Growth Africa. He can be reach on babs@babsolugbemi.org or 08025489396.

he share price of Manchester United (Man U) football club steadily increased to £14.51 from £13.65 on the NYSE at the close of trading on 18th December 2018 following the sack of Jose Mourinho by the club. What marked the exit of Mourinho was the 3-1 loss to the Liverpool FC, the bitter rival of Man U, the club’s sixth position on the Premiership log and nineteen points behind Liverpool FC, the league leader. During the turbulence period, Man U share price fluctuates in reaction to the news of internal rancour between the players and the manager and the obvious poor run of results. No doubt leaders are engaged to produce results for their organisations. Jose Mourinho is an exceptional football coach with massive results and with a record second to none. He had won both domestic and continental trophies in the big clubs starting from Porto FC, Chelsea FC, Internationale FC, Real Madrid and Man U. Jose’ technical competence has been tested and proven. He is a top-grade manager among managers, a technocrat with a good sense of humour but with a snag in the way he manages his tools leading to his shameful exit last week. I am not sure he did want to quit his job at Man U if things have been under control. The fact that Jose has had a problem with players at all the club he had

Dr Adams Adeiza, Dangote Business School, Bayero University, Kano. successfuladams@gmail.com Tweet @A11Adams

he problem of paucity of funds for the Nigerian security agencies is not hidden. What is not so obvious is the underbelly, the main causes of inadequate funding for the sector. So, it was an honor to have been trusted by a collaboration of UKaid/ DFID-funded Nigerian Policing Program and Aminu Kano Center for Democratic Studies (Mambayya House), Bayero University Kano, to present a position paper and lead discussions on finding answers to the above question. Let me spare you the stress of pouring through the entire thesis of my paper, but here are my conclusion and key policy recommendations. If there is one country that needs to improve security situation in her domain in order to project an image of a secured, attractive and welcoming country to the world, it is Nigeria. This is because the current levels of unemployment and poverty in the country necessitates that invest-

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The result-oriented leadership coached show a deficient level one leadership skill despite being a level four leader. The level one leadership stage is about personal leadership which is purely the ability to give oneself instruction and adhere to it, the ability to respect others, manage situations with decorum and comply with the culture, ethics and minimum standard of behaviour in the society. The level four leadership skill is about achieving the result through the team for the organisation’s stakeholders. With the exception of bringing Mario Balotelli who Mourinho discovered and promoted into the senior team at Internationale FC, Mourinho has created rancour in his dressing rooms and among his players than any known football tactician. He is an example of a leader that kills the goose that is raising the golden eggs for him and at the same time expects more eggs from the goose. In the book ‘who says elephants can’t dance’ the author, Louis V. Gerstner, Jr. emphasised the importance of personal leadership in any institutional transformation. Level one leadership is, therefore, crucial in achieving results, working with teams, influencing others, creating the culture of excellence and most importantly is the sustainability of the results for the organisation. I admire the results of Jose Mourinho but his lack of the level one leadership skill cannot be hidden if you place him side by side with Pep Guardiola, the coach of the Man city and other coaches who equally achieved results with many clubs and in more than one country but without the atmosphere for strive, and rancour created by Jose at Man U and Real Madrid. Thus, the leadership characteristic and personality of Jose are not in line with the brand integrity and known culture of Man U. The sack of Jose Mourinho is, therefore, a marriage of convenience for the parties involved. For business leaders and managers to achieve results without creating

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the Mourinho effects, they must be knowledgeable and be conscious of the balancing act of the result which recognises the four stakeholders whose interest must be managed. These stakeholders are the customers, employees, investors and organisations. A result-oriented leader will ensure the result of today’s effort is sustainable and will not put any of the stakeholder groups in a position of lesser value both financially and mentally in the future. I have seen organisations, where leaders are praised for achieving results even with negative impacts on the customers, employees and more pathetically on the organisation whose interest should be protected. Any result that does not respect and create a mutual balance for the stakeholders is not sustainable and will bring the organisation back to its knees. The abilities of the boardroom leaders to appraise the effects of the employees or business managers who are achieving results in manners detrimental to the sustainability of the organisations’ brand images, perceptions and market value are essential to the survival of any strategy. Being a board leader or member is, therefore, a calling not a job. A calling to entrench a culture where all the stakeholders’ interests are taken care of and the less influential of the stakeholders is at least kept satisfied to the minimal level. In the business environment, customers as stakeholders are given preferential treatment given to the sensitivity of their actions on the patronage and the results for the business. However, from experience, the employees are the most vulnerable stakeholder given the shoddy treatments of workers under the disguise of achieving results which often are not sustainable. The effects of allowing employees to be threatened or abused both psychologically and mentally are the results of the divergence in the vision and value the organisation places on its employees. Where exceptional customer service is emphasised, and superior employee treatment is a slogan, the

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For business leaders and managers to achieve results without creating the Mourinho effects, they must be knowledgeable and be conscious of the balancing act of the result which recognises the four stakeholders whose interest must be managed. These stakeholders are the customers, employees, investors and organisations

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results will be a mirage with the attendant by-products of low employee engagements, high attrition rate and ex-employees being competitors rather than being the ambassadors of the company. These effects are the failure of the leadership in most cases and attest to the fact that the dominant personalities in the boardroom affect and shape the company’s culture and its brand perception in the long run. As it is in the Man U and Mourinho’s case, the emphasis on performance without commensurate value being placed on the process, culture, relationship and behaviour for achieving results, especially the human aspect of the business capital will affect the brand, the market value of the company as well as the personality of the leader. I am sure other tops clubs will have similar concern Man U had when Mourinho was to be employed

as the departure cast doubt on his ability to manage people and align the culture of excellence in Man U despite a fair result within his two and half years at the club. For a business that wants to align performance with respect for its brand, the modern human resources department has a huge role to play. I use the word modern to connote an HR independent and professional enough to do its work without being the stooge of the management. The requirement for this is an empowerment of the board for the HR to enforce the vision of the company, and the avoid the erosion of the value it places on the employees as an important stakeholder group. Where there is a vision to be the best place to work or to be an environment that attracts top talents and the value of respect for diversity of opinion and personality is lacking, the vision becomes a mere slogan. The modern HR as a department goes beyond enforcing policies to managing behaviours and externalities of leadership decisions as it relates to the employees. The HR is not to judge but to be an advocate, the coach, the initiator and custodian of peopleoriented policies due to the changing nature of people in the workplace. And for the ‘Mourinhos’ in the corporate world who are enjoying the results achieved with the emotional sledgehammer on the goose, the results are but an illusion and will put the business in a more precarious state. The boardroom members who are less concern about the goose should be mindful that no business can achieve a sustainable result and develop a competitive edge in the marketplace without a resounding win in the workplace. Jose Mourinho lost his vision and value in the workplace before losing his position and coaching roles in one of the world’s best clubs.

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Why isn’t there enough funds for the Nigerian security agencies? able capital is attracted, especially from around the world, to help the industrial base and the general economy of the country. Sadly, the achievement of this developmental milestone continues to slip through our fingers as heightening insecurity in the country wards off investors. To improve security and position the country as a secured destination for both local and foreign investments, a significant amount of money is required. But as my study shows, three main factors have constituted an albatross around the basket of funding for security agencies in Nigeria. These are: bureaucratic nature (impelling significant running costs) of the agencies, shortfall in the revenue of the major source of funding, and endemic official corruption in the system. Based on the above submissions, I offer the following recommendations to address issues around funding for security agencies in Nigeria. i. To address inefficiencies in the bureaucratic structure of the agencies, there is a need to set up an Efficiency Unit, tasked with the responsibility of optimizing all

spending and expenses in each of the agencies. Detailed review of all layers of commands, departments and units needs to be undertaken and based on the review, these units should be rationalized, removed or merged. Overhead costs should also be thought-through and closely monitored. ii. There is an urgent need to diversify source of funding for our security agencies. The current onesource funding is not sustainable. Ultimately, a kind of restructuring that makes local authorities responsible – become true chief security officials, and are therefore compelled to make deliberate budgets for security, will be the way to go. iii. Security and welfare of the people are the primary responsibilities of government and any government that cannot guarantee these has lost legitimacy. Therefore, the primary assignment of government at all levels is to work round the clock to improve its capacity to meet these fundamental responsibilities. Ambitious targets supported with actionable implementation strategies need to be set for exploring and exploiting

new sources of revenues, for the state in general and for security agencies in particular. iv. The Inspector General of Police, Mr. Ibrahim Idris recently said that the Force requires about N1.3t annually to operate effectively. But sadly, only a paltry 25% (N332b) of this was approved for the Force in the 2018 appropriation. Meanwhile, it is doubtful if this total has actually been released to the Force. So, in order to address the problem of irregular and sub-optimal capital releases to security agencies, its high time Nigeria made security a firstline charge. This is where the passage into law of the Nigerian Police Force Reform Trust Funds (NPFRTF) bill will help greatly. The Bill not only seeks to achieve the objective of regular funding for the Police but to also expand its income base. Similarly, there is no more urgent time for the passage of the National Security Trust Fund bill into law. These two bills, when passed, will complement each other and give the much-needed legal backing for the attraction of private funding into a pool that could be deployed to equip

and resuscitate the agencies. v. Lastly, ‘you can’t talk about security in Nigeria without talking about corruption’. With shortfall in oil revenue, security contract is now the new diesel for corrupt politicians. According to recent Transparency International investigations, a criminal gang of politicians, defense chiefs and contractors stole more than N3.1trillion security budgets through shady procurement between 2008 and 2017. In addition, more than N241billion is alleged to have been stolen annually by politicians, especially state governors through the ‘state-sanctioned corruption’ called ‘security votes’. That money is more than the 2018 budget of the Nigerian Army (N155billion), more than the budget of the country’s Navy and Air Force combined (N202.6billion) and represents about 70% of the approved budget of the Nigerian Police Force (N332billion).

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Editorial Publisher/CEO

Frank Aigbogun editor Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

Private sector is the future of Nigeria

t has been estimated, and even the government affirmed it in its Economic Recovery and Growth Plan (ERGP) that for Nigeria to close its infrastructure gap and bring itself up to the international benchmark for infrastructure stock, it needs to spend as much as $3 trillion in the next 30 years and majority of this money is expected to come from the private sector. As in many other growth and development indices, Nigeria lags behind many countries of the world in its infrastructure stock. The international benchmark for infrastructure stock as a percentage of GDP is 70 percent, but Nigeria currently stands at below 30 percent. This realisation that both the government and the private sector must contribute their quota towards building Nigeria’s infrastructure is now mainstream and all progressive governments are designing policies to ensure a robust public-private partnership where the private sector can invest massively in infrastructure. But not so with the Nigerian government. This is a country where

the president came out to say matters-of-factly that he does not trust individuals in the private sector. In his words: “We are averse to an economic team with private sector members” because such persons “frequently steer government policy to suit their narrow interests rather than the overall national interest”. Buttressing the president’s position further, the media adviser to the vice president, Laolu Akande further explained that the presidency considers economic management as purely “a government affairs”. The position of the presidency is not surprising. In a way, it reflects the president’s ideological position which is yet to change since 1985 when he was removed from power. The president is a staunch believer in a state-controlled economy and a closed statecentric policy process. His aversion for the private sector is classic and he considers private sector players as greedy, selfish, and inherently incapable of working with the government towards the development of the state. We recall that since 2003 when Buhari began his quest for public office, he has always voiced his opposition to the surrendering of the “commanding heights

of the economy” to the private sector and specifically, the privatisation of the largely inefficient and wasteful State Owned Enterprises that became established conduits for the siphoning of public revenues. This can be seen in how the president talks about the privatised SOEs in very nostalgic tones and never fails to excoriate past administrations for mortgaging Nigeria’s common patrimony to private and selfish individuals. That explains the president’s push, on coming to power, to claw back the economy from the private sector, re-establish state dominance and control over the economy and position the state as the largest player in the Nigerian economy. Despite the huge cost of subsidising imported petrol – about $3.9 yearly – and despite the fact that government is facing a severe revenue crisis and cash crunch, it has still refused to deregulate the downstream sector of the oil industry and allow market forces to determine the price of the product. This thinking by the president is deleterious to the Nigerian economy and will set the country back several decades if nothing is done to convince the president to abandon his

outdated socialist ideology and allow the private sector to dictate the pace of the economy, albeit with government providing solid regulation to prevent the manipulation and abuse of the market by greedy forces. The reality now is that government alone does not have the resources to provide the scale of infrastructure required by a 21st century society. But rather than develop a comprehensive PPP model to ensure the smooth participation of the private sector, the government, rather prefers to go borrowing, at exorbitant interest rates, to provide some infrastructure. But no amount of borrowing can plug the infrastructure hole in the country. There is just no running away from the reality that the government must partner the private sector to provide modern and world class infrastructure. We urge the president and his minders to rethink its strategy. Private capital has alternative uses and many countries are competing for them. The sooner we cosy up to the private sector, develop an attractive PPP model to convince willing investors to want to invest in the country, the better for us.

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MoneyInsight

Unprepared, yet ripe for Private Equity windfalls CALEB OJEWALE

hat agriculture in Nigeria has been abandoned for decades in favour of oil dollars may already be sounding like a ‘rather stale story’, but the reality remains felt in everyday life. Even when considered conservative, Nigeria’s food import bill is estimated between 5 and 7 billion US dollars, based on variations in different data sources including the Federal Ministry of Agriculture, National Bureau of Statistics, and the World Bank. Nigeria, which prides itself as the most populous black nation on earth, is largely unable to adequately feed the growing population, despite an abundance of agricultural resources yet to be fully harnessed. Millions of smallholder farmers grapple to survive, and even agribusinesses lack access to funds and support to improve food production. Government funding initiatives have become traditional announcements; bank funds are a no-go area with crippling interest rates, while private capital has been elusive. It has become an anthem for many people in the agric sector to recite the challenge of funding when asked of the problems confronting them; coming ahead of infrastructure and market inefficiencies. However, it is not an anthem they recite joyfully, rather, the reality they live as agribusiness owners. “I cannot approach banks for loan at 30 percent interest rate. The Agric intervention funds at single-digit interest rate are not accessible, they are mere political statements,” said Bode Adetoyi, chairman, Poultry Association of Nigeria (PAN), in an earlier phone interview, also lamenting that the “poultry industry and feed business is already collapsing and farms, feed mills are closing every day,” Ada Osakwe, CEO, Agrolay Ventures, also put the financial logjam in perspective, explaining that in Nigeria’s agriculture sector, securing capital through commercial banks is typically hard to access and expensive. In spite of the large financing needs of agricultural actors, the public and private sector have not devoted sufficient financial resources for impact. The situation appears hopeless all round, yet, a ray of hope may exist in an emerging concept of ‘patient capital’, one in which private equity may solve the country’s food security challenge if the right compromises are achieved. Private equity in its pure form, as interactions with several sources showed, may not be suitable for agriculture in Nigeria as it is today. “Patient Capital”: An impasse in finding the right mix for PE At the risk of appearing to want an easy way out, funding agriculture

through private equity does not appear to be straightforward in Nigeria. The rules that apply in structured markets are considered unrealistic in Nigeria, thereby discouraging potential investors, as many local businesses find change hard to accomplish in meeting required standards. An impasse it seems. Rotimi Williams, an agripreneur in his 30s, owns the 45,000-hectare Kereksuk Rice farm, described as the second largest commercial rice farm in Nigeria. According to him, “there is a need to have funds that are dedicated to the development of Nigeria and Africa, and understand the challenges in developing countries, so that their criteria are better tailored to those issues. Not coming with generic funds from Kenya or South Africa where the agricultural sector is already relatively developed, and expecting that model will be adaptable here. It is not going to happen. “They need to create funds that speak to the issues in developing countries like Nigeria,” Williams said. Agrolay’s Osakwe, who also opined that what agriculture in Nigeria needs is “patient capital”, shares the view by Williams. However, whether or not potential investors will share these views, remains to be seen. Williams described conditions by PE investors as tough, saying they often “request two year audited financials, and want the company to be setup in a certain way.” “We are talking about farms, and they are not going to get that. So, limitations are already within the criteria, and also the fact that they are coming into an industry where agriculture itself has been neglected and suddenly you are looking more at Brownfield than Greenfield operations,” Williams explained. Ade Adefeko, vice president, Corporate and Government Rela-

tions at Olam Nigeria, described agriculture as a very risky sector particularly in the area of crop production, emphasising the need for the sector to be de-risked. According to him, investors need to deploy patient capital and have a long-term view. In addition, they need to understand the economics and cycles. “I often tell investors they need to understand the economics of every sector; Aviation economics, Telecoms economics, and Agricultural economics is no different,” said Adefeko. The limitations in business structures, as a number of analysts have identified, may perpetually deny the Nigerian agric sector of adequate private sector funding, regardless of its excuses in terms of neglect over the years. Taking private equity & venture capital beyond hopes From 2012 to 2017, the African Private Equity and Venture Capital Association (AVCA) puts the total value of African PE Fundraising at $17.3 billion. In the 2017 Annual African Private Equity report, the sectors identified to have attracted these funds are Consumer Staples, Consumer Discretionary, Financials, Industrials, Information Technology, Health Care, Utilities, Materials, Real Estate, Energy, and Telecommunication Services. Across Africa, agriculture does not feature in any way in the major sectors from 2012 to 2017, even though the World Bank has estimated the continent has an annual food import bill of $35 billion that is bound to grow, considering the expanding population. Getting bank loans for the agric sector is a challenge, one that limits expansions and improvement of productivity. At the same time, it appears Nigeria is also faltering in adequately tapping from private equity investments in Africa. Adefeko, Olam’s VP, remarked, “It is becoming increasingly difficult for individuals and even

government to fund agricultural ventures particularly processing and production plants. Therefore, Private Equity/Venture Capital firms put in equity after proper evaluation and sell after a while or hold on depending on their risk appetite.” Even though the possibilities for PE/VC firms to invest in Nigerian agriculture are considered to be improving, the prevailing reality now is that Nigeria’s agricultural sector is yet to attract as much private equity investments, which would be significant enough to match the country’s potentials and national aspirations. For a market as big as Nigeria, we have not had as much Private equity activity as we should,” said Kazim Yusuf, CEO, Kord capital, an investment advisory firm in Lagos. As Yusuf observed, inadequate private equity activity is a problem with Nigeria generally, but moving into a sector like agriculture, it becomes even more problematic. This, he explains is because even people with experience investing in the Nigerian economy have challenges with agriculture, much less foreigners who are expected to deploy PE funds. As noted by Osakwe, Agrolay’s CEO who also says as a Senior Advisor in government, she participated in designing the Fund for Agricultural Financing in Nigeria (FAFIN), “Agric is perceived to be unviable, as many agricultural enterprises are not considered ‘investable’ or mature enough for PE capital. “Instead, like the commercial banks, most PE fund managers focus on the, telecoms, extractive and consumer sectors, which collectively received about 60 percent of Africa PE financing in 2016,” she said. Osakwe offered more perspective, explaining that unfortunately, with FAFIN and other PE funds, their agriculture investments are still limited by the need to invest in

deals with a minimum legitimate operating history. Most Nigerian agriculture enterprises have been unstructured, or are really only in their early-stages, and so do not meet this requirement. Furthermore, many PE funds have minimum investment sizes from between $10 million and $50 million, numbers that are far above what the majority of Nigerian agribusinesses can absorb. As a result, PE activity is further constrained in deploying capital because they are unable to find the agribusiness transactions that fit their investment strategy. Yet, PE can help agribusinesses that meet the structural requirements in scaling their operations exponentially. Mezuo Nwuneli, managing partner, Sahel Capital Agribusiness Managers Ltd, whose company closed $65.9 million funding for agriculture in Nigeria, emphasised the potentials for PE in Nigeria, saying “it has the ability to provide growth capital to selected highperforming companies, to enable them rapidly scale-up. Even more important than the funding is the technical and operational support that private equity firms can provide companies.” Nigeria’s huge food and industrial needs represent potentials for revenue if local solutions are supported, particularly since the country has over 80 million hectares of arable land with less than half of it under cultivation. The potential for growth and steady flow of revenue in a consumer driven nation of 190 million people, with broad influence over the rest of the sub-region has been underutilised. The country still holds very good prospects for investments given its large untapped resources, growth potential and substantial infrastructure requirements. What is left is for agribusinesses and private equity managers, to reach a compromise on how to leverage on available opportunities.

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BUSINESS DAY

CITYFile Edo: NDLEA impounds 506kg of cannabis

Lagos State governor, Akinwunmi Ambode (3rd l); Director, Bethesda Home for the Blind, Chioma Ohakwe (2nd r); Chairman/CEO, Frajend International Limited Frank Enendu (2nd l); students of Bethesda, Samuel Ifeanyi (l); Faith Ihediwa (3rd r), and Rebecca Ijeh (r), during the Bethesda Home for the Blind Christmas Carol at Surulere, on Sunday.

Excitement in IDPs camps as Customs distributes seized rice ... plans distribution to orphanages nationwide

KEHINDE AKINTOLA, Abuja

t was excitement in many of the Internally Displaced Persons (IDPs) camps in Borno, Yobe, Adamawa and Edo States, as the Nigeria Customs Service (NCS) distributed 424,391 bags of rice worth N4 billion to celebrate the yuletide. Joseph Attah, spokesperson the service, said on Wednesday that the distribution was line with the directive of President Muhamnadu Buhari that seized items including rice be distributed to the

IDPs in the troubled North East to ameliorate their sufferings. According to Attah, apart from rice, other seized perishable items were also distributed to IDPs in the crisis ridden areas. He said with relative peace in the North-East, many IDPs are now returning to their ancestral homes and engaging in farming. He disclosed that the Comptroller General of Customs, Hameed Ali, has obtained the presidential approval to extend the distribution of the relief items to other

IDP camps and registered orphanages across the country. In line with this, he said the list of IDPs and orphanages across the country was being compiled with a view to kickstarting the nation-wide distribution. Attah said the distribution would provide relief and succour to fellow Nigerians going through tough times in the IDP camps and orphanages. Attah also disclosed that a total number of 238,094 (50kg) bags of rice were seized across the country by the Customs between January and November this year.

Yuletide: Dealers in Nigerian attires make brisk business in Enugu

ealers in ready-made local attires are making brisk business in Enugu this yuletide. Checks in some clothing shops in Enugu metropolis on Wednesday showed most of the dealers were enjoying high patronage. Some dealers explained that the increase in patronage was because of assorted designs being churned out and affordable prices. Ozioma Ani, a dealer in ready-made Nigerian local designs at Kenyatta shopping mall, pointed out that the new styles and designs in her shop had attracted many buyers. Ani said that most of the attires were mainly sewn in Lagos and Aba, as few designers could be found in Enugu.

“These attires are now trending in most African countries, not only the Senegalese attires, but now the made-in-Nigeria attires, which are designed with Ankara, Adire, Aso-oke, among others. “I make huge profit, especially this yuletide season. Since the season, I have made up to N120, 000, as their prices stand between N15,000 and N25,000, depending on designs and the quality of the Nigerian fabrics used in making the attires,” she said. Josephine Okeke, a dealer in Nigeria attires at Mayo shopping mall, said that made-in-Nigerian attires were meant for everyone. She added that this season had made parents to begin to buy them for their children, as one could get beautiful design for

children at affordable prices. “Following the unique styles made with Nigerian fabrics and their affordable cost, many parents now go for Ankara, which they make for themselves and children for occasions,” she said. A buyer at the clothing shops in Garki, Ifechukwu Nebo, said there were a variety of designs, which could also be combined with lace, silk, plain cotton, chiffon and embroidered with stones. She said ready-made Nigerian attires were mostly fashionable native wears for occasions, stressing that she hardly used English attires because of the varieties and unique styles of the local designs. The Nigerian attires look gorgeous, fine and different from other attires,” she said.

do command of the National Drug Law Enforcement Agency (NDLEA) says it has impounded 506 kg of a dried substance suspected to be Cannabis Sativa otherwise known as `Indian Hemp’. The commander of the agency in the state, Buba Wakawa, disclosed this in Benin while speaking with newsmen. He said the substance was intercepted during a special assignment code-named “Operation Narco X’’ on Wednesday. Wakawa, therefore, appealed to the Edo government to assist the agency with operational vehicles, to enable it to effectively counter the activities of drug criminals in the state, particularly the movement of narcotics during the festive season. The NDLEA commander said that a notorious drug trafficker had just been arrested and was helping the command in its investigations. “We have intelligence that drug traffickers are targeting to move narcotics this festive season. “All we did was to identify and cordon off the major entry and exit points in the state. “Interestingly, we intercepted two vehicles conveying dried weeds suspected to be cannabis sativa. “The first seizure was a mini-truck that took off from Uzebba in Owan-West local government area with 556 blocks of compressed cannabis, weighing 443kg, destined for Kaduna state. “The second vehicle was a Toyota saloon car with 63kg of cannabis coming from Ondo state en route Anambra. The suspect with the Toyota car was apprehended, while the one with the mini-truck is currently on the run,’’ he said. Wakawa said that whereas the drugs were cleverly hidden in the mini- truck, the boot of the Toyota saloon was simply filled with sacks of cannabis. The commander explained that it took the experience of the officers to detect the drugs intelligently concealed in a false compartment of the mini-truck. “This is very encouraging as we discovered 506 kg of illicit drugs in just two seizures.’’ He said that the command was working to sustain the mobile operation through the festive season. Wakawa noted that the operation was highly demanding and, therefore, appealed to Governor Godwin Obaseki to assist the command with operational vehicles.

Ilorin community appeals for social amenities

felodun community in Egbejila, Ilorin West local government area of Kwara has appealed to the state government to provide them with social amenities. Head of the community, Usman Gatta made the appeal at a meeting of the community with concerned stakeholders in Egbejila. Gatta noted that the new settlement lacked steady power supply, potable water and access road. According to him, the only source of water to the people is a well, and the cost of drilling a hand-pump or motorised borehole is far above the locals. The community head also sought for an establishment of a police post in the community to check new insecurity of children abduction, rituals, burglary and theft. He said the area being a developing site was always disturbed by street urchins who used to intimidate, harass and exploit their visitors. He also lamented the activities of grabbers, which he said constituted a threat to peace in the community. Gatta sought a clarification from the official of the Ibadan Electricity Distribution Company (IBEDC) on N10, 000 charges by a group of people on every household before being allowed to connect to the national grid. However, Bashir Abayomi, the IBEDC official in-charge of the community, said that the company was not aware of the N10, 000 charges. According to him, the only charge known to the company is the loss of revenue which is for opening an account for billing with the company.

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DAY

Notore pares losses with 77 percent surge in income

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

MARKETS

GTB, Flour Mills, NB top stock picks for 2019 IFEANYI JOHN

he year 2018 has been an ugly year for investors as bearish sentiments in the stock market led to losses in trillions from a peak earlier this year. As the year draws to an end, some investors are already looking for investments which can help them bounce back in the New Year. For investors seeking guidance, Financial Derivatives Company has a few stock recommendations for 2019, they include: GT Bank, Flour Mills, and Nigerian Breweries. These companies were regarded as the best bets in the market as stated in the firms’ 2019 outlook for the stock market during the monthly LBS Executive Breakfast titled “A year of Trepidation and Growing Uncertainty.” An overview of the most likely stock market trend in 2019 reveals a possible market recovery of 16 percent at the end of the fourth quarter in the coming year, overturning the losses of 2018. The first quarter of 2019 is to be reflective of the current trend. “The bearish market trend

will persist as political fracas intensifies and FPI outflow will push the NSE ASI south” the document revealed. The equities market will then dip to its lowest point in the second quarter but pick up on the back of a violence free handover. The gradual restoration of investor confidence, increasing market activities, FPI inflows and earnings season is to drive up the third quarter. Then the completion of MTN’s listing, positive market performance driven by increasing demand in Q4 will drive the Lagos bourse back to index point levels of 35,000. Guaranty Trust Bank was recommended as a top stock to own in 2019 based on its “healthy financials, strong fundamentals, consumer-centric strategy, strong management and considerable upside due to increase in NII”. The Nigerian banking giant made the list of 12 global companies to watch in developing markets by The Economist Intelligence Unit earlier in the third quarter of this year. Flour Mills of Nigeria came in second with the prospective profits of backward integration, import substitution and product diversification of its business model while Nigerian

Breweries, the market leader of the Nigerian beer market, was the third top stock to own for 2019. Market dominance of Nigerian Breweries, strong financials, and attractive fundamentals coupled with the company’s cost saving approach to business execution put the company among the top three. Fidson Nigeria made the list with its acquired capacity to double profitability, its World Health Organization (WHO) approved ultra-modern plant, a new product line and inherently strong fundamentals. Stanbic IBTC completed

the top 5 on its strong growth strategy and improving operating efficiency. MTN was recommended as another company to own after the completion of the listing process on the Nigerian Stock Exchange. The predatory instinct of the company was highlighted as a driver of future success given that the company is the dominant player in the market with solid financials. The recommendation of the top picks was followed by the 3 least favourite stocks to own in 2019 which were Lafarge, Med view and Conoil.

“GTB has a digital banking service that matches global standards and it is arguably the most innovative bank in the country. They also provide good customer service and that makes for a good company. The financials are good, cost efficiency is the best in the country and there is the financial exclusion rate that foretells opportunities in the banking space” said Tochukwu Okafor, Lecturer in Banking and Finance department at Covenant University. The last earnings result showed positive performance across all financial indices, reaffirming the Bank’s position

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Market expects CBN to review N5.8bn sanction on 4 banks in MTN matter LOLADE AKINMURELE

he central bank of Nigeria (CBN) is to review the sanction it imposed on Standard Chartered Bank, Citi Bank, Stanbic-IBTC and Diamond bank over their alleged involvement in the irregular issuance of certificates of capital importation, CCIs on behalf of MTN which was the basis of the order on the telecoms giant to repatriate over eight billion dollars it exported out of Nigeria. In August the CBN had imposed a total fine of N5.87bn on the four banks citing flagrant violations of Nigeria’s foreign exchange monitoring and miscellaneous act of 1995 and the 2006 foreign exchange manual when the banks acted for MTN in the repatriation from Nigeria of a total of $8.134bn at various times between 2007 and 2015. However, on December

24, the CBN virtually reversed its order when it said that on the basis of fresh facts submitted by MTN, the telecommunications giant was being let off with a “notional” reversal of the repatriation involving the private placement that will compel it to pay a difference in value of about N30 per dollar and amounting to $53m. This simply means MTN is to pay the exchange rate differential between the time the CCIs were issued (N120 per dollar) and the rate of N150 per dollar at the time the case was first flagged. This after the apex bank said it established a technical error involved in the issuance by banks of the CCIs relating to the repatriation of proceeds of a private placement conducted by MTN in 2008 and which allowed its original shareholders to sell about 10 percent of the

Continues on page 18 Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

as one of the most profitable and well managed financial institutions in Nigeria. Gross earnings for the period grew by 8.8% to 337.3billion from 309.9billion reported in September 2017. The Bank’s Loan Book dipped by 12.3% from 1.449trillion recorded as at December 2017 to 1.270trillion in September 2018, while customers’ deposit grew by 8.6% to 2.239trillion from 2.062trillion in December 2017. Total assets and Shareholders’ Funds closed at 3.433trillion and 534.3Billion respectively, a 2.4% growth from Total

Continues on page 18

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COMPANIES & MARKETS TECHNOLOGY

Huawei to spend $2 bn over 5yrs in cyber security push JONATHAN ADEROJU & DAVID IBIDAPO

uawei Technologies has said it would spend $2 billion over the next 5 years on cyber security by adding more people and upgrading lab facilities, as it battles global concerns about risks associated with its network gear. Huawei has been in the news these past weeks for the arrest of its chief financial officer Meng Wanzhou and also the daughter of its billionaire founder Ren Zhengfei in Canada at the request of the United States. This has exacerbated the woes of the Chinese firm, which has already been virtually locked out of the U.S. market and has been prohibited by Australia and New Zealand from building 5G networks amid concerns its gear could facilitate Chinese spying. “Locking out competi-

tors from a playing field cannot make you better. We think any concerns or allegations on security at Huawei should be based on factual evidence,” its rotating chairman Ken Hu said. “Without factual evidence we don’t accept and we oppose those allegations.” Huawei has been communicating with governments worldwide regarding the independence of its operation, he said. He added that Japan and France had not formally banned its telecom equipment. Recent media reports have indicated moves by these governments to shun the company’s equipment. Other media reported that the country’s three top operators planned not to use current equipment and upcoming 5G gear from Huawei, and that France was considering adding items to its “high-alert” list that tacitly targets Huawei. Huawei has repeatedly said Beijing has no influence over it. At the tour of Huawei’s Shenzhen headquarters

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Market expects CBN to review... Continued from page 17 shares of the company to Nigerian investors. BusinessDay has now learnt that not all the four banks sanctioned by the CBN in August were involved in the private placement transaction or the issuance of CCIs which resulted from the deal. When he spoke to BusinessDay as the story of the settlement broke on Monday, CBN Governor Godwin Emefiele admitted to the matter with MTN having been amicably resolved but also added that the matter involving the banks was still being discussed as at the time but he offered no details. “If MTN was sanctioned only on the basis of the private placement, then it makes sense that if there are banks which did not play any role in the repatriation of proceeds from this private placement that they be granted a reprieve by the central bank,” one banking analyst told our reporter last night. When the matter first

came up in August, MTN shares collapsed by about a third on the Johannesburg stock exchange, wiping out almost half the value of the pensions of teachers in South Africa but the shares rose about 10 per cent Thursday on reports the matter has been settled by MTN accepting to pay $53m to Nigeria and without the telecoms giant having to admit to any wrong doing. Leading economist Bismarck Rewane of Financial Derivatives Company called the resolution positive for Nigeria which is struggling to attract foreign direct investment to act as catalyst to grow its economy which remains in troubled waters despite having emerged from a devastating recession. Analysts say with this resolution, MTN is now expected to focus on its planned IPO in Africa’s largest economy which promises to be the biggest offer for a Nigerian bourse desperate for depth.

R-L: Mukhtar Sirajo, president/chairman of council, Nigerian Institute of Public Relations, (NIPR), presenting an award of Public Relations Practitioner of the Year to Israel Jaiye Opayemi, managing director/chief strategist, Chain Reactions Nigeria; Olusegun McMedal, chairman of Lagos State Chapter of the Nigerian Institute of Public Relations, and Adewale Adeniyi, vice president, Nigeria Institute of Public Relations, at the 2018 Lagos Public Relations Industry Gala and Award (LaPRIGA) in Lagos.

on Tuesday, journalists glimpsed some of Huawei’s most advanced R&D labs housed in a three-storey building with a white facade and four columns, referred to by insiders as the “White House”.

Wu said Huawei had secured more than 25 commercial contracts for 5G, slightly above the 22 the Chinese technology giant had announced in November. Huawei has deployed its

products and services in more than 170 countries, and as of 2011 it served 45 ofthe50largest telecom operators. Huawei overtook Ericsson in 2012 as the largest telecommunications equipment manu-

facturer in the world, and overtook Apple in 2018 as the second-largest manufacturer of smartphones in the world, behind Samsung Electronics. It ranks 72nd on the Fortune Global 500 list.

MARKETS

HOTELS

GTB, Flour Mills, NB top stock...

Wells Carlton creates thousands of new jobs in hospitality industry

Continued from page 17 Asset Position of 3.351trillion as at December 2017. Capital Adequacy Ratio (CAR) dipped to 22% which was largely due to IFRS 9 implementation. In terms of Assets quality, NPL ratio improved to 5.6% in September 2018 from 7.8% in December 2017. A Return on Equity (ROE) of 32.7%, PostTax Return on Assets (ROA) of 5.6%, Cost to Income ratio of 38.3% and PBT margin of 48.7%. Flour Mills of Nigeria was next on the watch list of FDC on the premise of “strong fundamentals, product diversification, import substitution, backward integration, and improving economies of scale”. Aggressive wheat importation by Flour Millers Association of Nigeria would increase wheat imports by four percent from 4.2 million tons to 5.4 million tons valued at $2.26 billion in the coming year and FMN is in position to take advantage of the markets. At the beginning of the month FMN issued 2 bonds

amounting to N20.1 billion. The proceeds of both issuance were used entirely to refinance existing debt obligations of the company and streamline its maturity profile. Paul Gbededo, the Group Managing Director, stated that; “the transaction will help the Company achieve its strategic objective of sustaining its market leadership position with our foods and ago-allied businesses, whilst fostering our vision of Feeding the Nation.” FMN increased its market share in some product categories, in a somewhat challenging environment with lower consumer spending. Revenues were N269.74 billion, compared to N298.44 billion of the same period last year, with an increase in the Group’s share of the market. The Group recorded a 49% increase in selling and distribution expenses of N4.13 billion, compared to N2.77 billion of the same period last year, as it increased its marketing drive.

FRANK ELEANYA

he launch of Wells Carlton Hotel and Apartments has seen the addition of 300 direct employment and thousands of indirect jobs in Nigeria’s hospitality industry. Speaking at the launch of the five-star hotel in the heart of the Federal Capital Territory, Abuja, recently, Hosa Okunbo the chairman disclosed that 300 people are directly working with the hotel. Among this are foreigners, “In addition to thousands of other indirect jobs that we have created,” he said, “There is no doubt that the numbers will go up as soon as possible.” The Wells Carlton took nine years to complete and furnish “because it could not have been ready sooner; but nine years, because for me, only the word ‘Perfect’ will do,”

Okunbo explained. The hotel which shares neighbourhood with Aso Rock and the city centre boast of 55 rooms and 12 lush apartments all with spacious living rooms, three fully fitted en-suite bathrooms, guest toilets, premium furnished kitchens fitted with state-of-the-art washers, dryers, dishwashers, ample storage facilities, with in-room climate control to ensure occupants are very comfortable no matter the weather. There are ample spaces for events including a conference centre suitable for private meetings and corporate events, a rooftop terrace that offers a transcendent view of the FCT, giving guests an elevated experience and a secluded ambience of serenity. The Wells Carlton Hotel also houses two avant-garde bars and four

Continues on page 19

Friday 28 December 2018

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BUSINESS

DAY

AGRICULTURE

Notore pares losses with 77 percent surge in income DAVID IBIDAPO

otore chemical industry Ltd, an agroallied chemical company in the industrial goods sector, has shown an improvement in its loss position despite still being in the red. According to a report released on Thursday on t h e N i g e r i a n S t o c k E xchange Market (NSE), loss after tax of Notore declined significantly by 77 percent from an earlier recorded loss of N8.65 billion in 2017 to N2.01 billion as at the year ended September 2018. The reduction in loss after tax of the company can be largely attributed to the surge recorded in other income and finance income during the period under consideration. Other income increased by about 248 percent to N4.36 billion from N1.25

b i l l i o n re c o rd e d i n t h e previous year ended hence increasing operating profit marginally by 5 percent. The surge in other income was contributed to mainly by proceeds generated from Notore’s fair value adjustment on investment property. During the period, Notore realised a sum of N4.01 billion compared to N564.2 million realised in the previous year. This represented an increase by 610.9 percent. Also, interest income on short term bank deposit boosted finance income a s i n c o m e i n c rea s e d by N3.8 million from N393 thousand received in the previous year to N4.23 million. BusinessDay analysis of financial position of Notore chemical industry revealed that total liability increased by 9 percent as total equity declined marginally by 4 percent. Total equity and liability amounted to N152.8 billion in 2018 from N147.2 billion in 2017. S h a re s o f No t o re re -

mained at N62.50 in the last 5 years, with a market capitalisation of N100.75 billion and a share outstanding of 1.61 billion. Notore in August 2018 listed its entire paid up share capital on the Nigerian Stock Exchange (NSE), opening up the agro-allied company to the general investing public 13 years after it was privatised by the Federal Government. A c c o rd i n g t o G e n e ral Yakubu G ow on (r td), Chairman Notore Chemical Industries (Notore) Plc, “the listing of the company on the Exchange was a step in the right direction as this will make the company to be stronger”. “ The listing will provide an avenue for growth and provide liquidity for the business. We can now continue to improve and expand upon our current activities, seek out other areas for growth and continue to impact the lives of the average farmer and farming family,” Yakubu added.

L-R: Wasiu Abiola, head of media, digital, PR and sponsorships, Nigerian Breweries Plc; Onyebuchi Nwangwu, brand manager, Star Lager Beer; Dele Balogun, head of barbeach location, One Lagos Fiesta; Emmanuel Oriakhi, marketing director Nigerian Breweries Plc; Sarah Agha, portfolio manager, national premium brands, Nigerian Breweries Plc, and Oludare Olateju, senior brand manager, Star Lager Beer, at the One Lagos Fiesta Officially Kicks Off With Star Lager in Lagos.

L-R: Suleman Ibrahim, team member, sustainability, Access Bank Plc; Omobolanle Victor-Laniyan, head, sustainability; Victor Etuokwu, executive director, personal banking; Esther Sunday, team member, media relations, and Mofifoluwa Olawumi, team member, sustainability, at the 2018 edition of SERAS CSR awards held in Lagos.

OIL & GAS

Nigeria to have highest CAPEX on crude projects in sub-Saharan Africa by 2025, GlobalData says DIPO OLADEHINDE

lobalData, a UnitedKingdom based Data and Analytics Company has projected that in the next seven years, Nigeria will account for more than 34 percent of proposed Capital Expenditure (CAPEX) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018 to 2025. In its H2 2018 Production and Expenditure Outlook for Key planned upstream projects in Sub- Saharan Africa, the data analytical firm forecasted that Nigeria will lead in sub-Saharan Africa projects with a CAPEX of $59 billion on 28 planned and announced projects during the 2018 to 2025 forecast period. “Nigeria is investing heavily in new oil and gas projects to further boost its oil and gas production. Majority of production from these projects is

for exports, generating significant revenues for the country,” Soorya Tejomoortula, Oil and Gas Analyst at GlobalData said. According to GlobalData, 67 crude and natural gas projects are expected to start operations in the sub-Saharan Africa during the forecast period. Among these, 16 are planned projects with identified development plans, and 51 are early-stage announced projects that are undergoing conceptual studies and that are expected to get approval for development. GlobalData identifies Angola as the second highest country in the sub-Saharan Africa with five upcoming projects, which are expected to come online by 2025. Among operators, Shell Petroleum Development Company of Nigeria Ltd leads with the highest operatorship of four upcoming projects in the subSaharan Africa during the forecast period—three announced and one planned—all being

conventional gas projects. Sonangol P&P occupies second place with operatorship of three upcoming oil projects. Key projects in the subSaharan Africa are expected to contribute about 1.1 million barrels of oil equivalent per day and around 9.4 billion cubic feet per day of global gas production in 2025. The region is expected to spend proposed CAPEX of $20.3 billion to bring the planned projects online and $154.6 billion on key announced projects during the forecast period. Royal Dutch Shell Plc, Exxon Mobil, Nigerian National Petroleum Corporation, Eni SpA, and Sonangol EP are the key players in terms of highest CAPEX spending on the major planned and announced projects in sub-Saharan Africa. These companies are expected to collectively spend about $64 billion on planned and announced projects during the outlook period.

L-R: Chukwudi Apugo, member, Abia House of Assembly, representing Umuahia East Contituency, receiving a sourvenir from Onyekwere Ohabuiro, former chairman, Lodu Ndume Development Union; Joshua C. Ogbonnaya, Elderstatesman; Samson Okezie, and Ugochukwu Akwada, Lodu Ndume Development Union, at reception in honour of Hon Apugo held in Umuahia North L.G.A. Abia State

HOTELS

Wells Carlton creates thousands of new jobs in... Continued from page 18 stately restaurants that serve continental and local cuisines. Guests can also be treated to both ancient and contemporary beauty therapies at the Hotel Spa called Tirta Ayu.

Yemi Osinbajo, Nigeria’s Vice President who led the ribbon-cutting ceremony described the hotel as a significant transformation in hotel services in Nigeria, particularly in promoting the Nigerian brand.

Yakubu Dogara, speaker of the House of Representatives, said the Wells Carlton Hotel and Apartments would boost the tourism segment in Nigeria as well as contribute significantly to the country’s economy.

L-R: Lilian Ama-Aluko, executive director, Rejevenee and main sponsors of the event; Aderonke Ademiluyi, ambassador, Queen Moremi Ajasoso and House of Oduduwa, and Olubukola Bolarinde, CEO, YellowDot Limited, at the stage production of Moremi the Musical, at Terra Kulture, Lagos.

BUSINESS DAY

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Friday 28 December 2018

Live @ The Exchanges Top Gainers/Losers as at Thursday 27 December 2018 GAINERS Company

LOSERS Opening

Closing

Change

N31.25

N34.35

N21

N23.1

N82.1

ETERNA AIRSERVICE

FO CONOIL NB

Market Statistics as at Thursday 27 December 2018

Company

Opening

Closing

Change

3.1

DANGCEM

N194

N187.7

-6.3

2.1

TOTAL

N200

N196

-4

N82.5

0.4

UACN

N12

N10.8

-1.2

N4.6

0.4

FLOURMILL

N21.55

N21.1

-0.45

N6.9

N7.25

0.35

N8.6

N8.2

-0.4

FBNH

ASI (Points)

31,692.63

DEALS (Numbers)

3,520.00

VOLUME (Numbers) VALUE (N billion)

2.608

MARKET CAP (N Trn

Continental Reinsurance explains scheme of arrangement …We are not delisting, says CEO Stories by Iheanyi Nwachukwu

emi Oyetuniji, Managing Director /Chief Executive Officer of Continental Reinsurance Plc has cleared the air on the company’s capital restructuring exercise, saying it will not lead to delisting the company from the Nigerian Stock Exchange (NSE). Recall that the company last week had its court ordered meeting during which shareholders voted in favour of the scheme of arrangement as proposed in the document. This was amidst speculations among shareholders that the company may be heading towards been delisted from the Nigeria Stock Exchange. After an electronic voting at the court ordered meeting, 92.66percent of the shareholders voted in favour of all resolutions in the scheme of arrangement. Oyetunji explained that, “We desire to have an A rating because the base of our business is rating. That is the global

Femi Oyetuniji, managing director /chief executive officer, Continental Reinsurance Plc

practice. Presently, we are rated B+ and that is limiting us in terms of the kind of businesses we can underwrite. For instance, we are only able to underwrite oil and gas despite not been an A rated reinsurance company because of the special considerations from the Nigerian Insurance Commission (NAICOM). So, what we are presently doing is capital restructuring.”

He further stated that “over the last ten years, the Company has consistently recorded business growth and increased its footprint across the entire African continent. Under the present corporate structure, CRe Nigeria has subsidiaries in Kenya, Botswana and Cameroun with regional offices in Cote D’Ivoire and Tunisia. However, in order to consolidate our gains and reposition the Company for enhanced com-

petitiveness, it has become imperative to restructure the Company with the aim of enhancing capacity, which will drive significant business growth and profitability for the group. Today, the key driver of competitiveness is financial strength underscored by ratings and capital. Ratings and capital increasingly determine business quality and volume and confer preferred status by ceding companies, thereby creating access to profitable big ticket business”. Regarding the fear of the company eventually delisting from the NSE, Oyetunji said “from the ongoing, we have no interest in delisting from the Nigeria Stock Exchange… We are presently expanding our business in Nigeria. We are also building new corporate office here in Lagos. All this are indications of our intention to continue doing business in Nigeria. This scheme of arrangement will not affect any of our staff because no one is losing his or her job”. CRe is a leading reinsurance business in Nigeria. The Company continues to leverage on

its strong business fundamentals, including the supply and demand for its services. CRe Nigeria’s business continues to be bullish, despite the dampening effect of the state of the economy. The Scheme Consideration was revised upwards from N2.04 to N2.10 per share. The revised Scheme Consideration represents a 51.08percent premium on the share price of CRe Nigeria as at the close of trading on October 5, 2018 which is 1.39; being the last business day prior to the date on which the proposal was received from CRe African Investments Limited. An application has been submitted for the Final Approval of the Securities & Exchange Commission, subsequent to which an application will be submitted to the Federal High Court for the sanction of the Scheme. The Effective Date of the Scheme is the date on which the Court Sanction is filed at the Corporate Affairs Commission (CAC); which, as stated in the Scheme Document, is scheduled to occur on January 4, 2019.

sist them in meeting their investment goals”. The CEO posited, “Our team of internationally trained investment professionals will continue to manage the Fund conservatively, whilst creating more value for unitholders, in line with the Fund’s Trust deed”. In December 2017, Legacy Debt Fund received a risk rating upgrade of two notches, from BBB+(f) to A(f), by Agusto & Co. Legacy Debt Fund seeks to preserve capital and generate consistent income for unit holders. The Fund pursues its investment objective by investing in high quality, Naira-denominated Money Market Instruments and short maturity bonds rated by a Securities and Exchange Commission (SEC), registered credit rating agency. The current

fund size is N1.96 billion. FCAM which also manages two of Nigeria’s leading mutual funds - Legacy Equity Fund and Legacy USD Bond Fund, and has also opened the offer for its Legacy Money Market Fund, provides services that cut-across collective investment schemes such as mutual funds, which are predominantly for retail investors, as well as specialised discretionary portfolio management, for ultra-high and high-networth individuals as well as institutional investors. The company has consistently focused on delivering international standard wealth and investment management services, aimed at meeting investors’ desire for safety of investments, diversification and good returns.

FCAM’s Legacy Debt Fund credit rated A+

egacy Debt Fund, a mutual fund managed by First City Asset Management Limited (FCAM), has had its credit quality risk rating upgraded by one notch, from A(f)) to A+(f), by Agusto & Co, the foremost pan-African rating agency. The Fund which is registered with the Securities and Exchange Commission (SEC) was also assigned a fund volatility (FV) rating of FV3. The higher ratings indicate low to moderate exposure to downside risk (impairment to the net asset value) in the medium term. FCAM is a subsidiary of FCMB Group Plc. The ratings assigned to Legacy Debt Fund are based on Fund Credit Quality Rating which is an

evaluation of the degree of protection an investor has against losses arising from credit risk, and Fund Volatility Rating, which assesses the Fund’s exposure to downside risk arising from changes in market conditions. The “A+(f)” credit quality rating reflects the Fund’s minimal exposure to downside risk arising from credit defaults, while the “FV3” volatility rating indicates the Fund’s moderate sensitivity to changing market conditions. According to Agusto & Co, “the upgrade in the credit quality rating of Legacy Debt Fund is based on the Fund’s consistent practice of allocating more than 75percent of the net assets in FGN securities.” Other reasons given by Agusto & Co for the Fund’s

new ratings are investment in good quality assets, low exposure to liquidity risk, and moderate exposure to interest rate risk. The rest include no currency risk exposure, robust investment processes, and an investment team with adequate expertise, with its portfolio manager possessing over 19 years of experience. Commenting on the upgrade, James Ilori, Chief Executive Officer of FCAM said “Legacy Debt Fund has been upgraded by three notches, in the last one year. We thank the rating agency, Agusto & Co, for recognising our consistency, professionalism and hardwork, in the management of Legacy Debt Fund. In addition, we thank investors in the Fund, for trusting us to as-

452,260,727.00

11.576

SEC urges shareholders to monitor their investments

he Securities and Exchange Commission (SEC) has advised shareholders to monitor their investments in the capital market, assuring that the Apex Regulator will live up to its responsibilities on investor protection. Mary Uduk, Acting Director General of the SEC stated this in an interview in Abuja last Wednesday. She said the Commission has put in place a number of initiatives to protect investors as well as boost their confidence including the e-dividend mandate Management System, Direct Cash Settlement, setting up a committee on identity management in the Nigerian Capital Market Regularization of Multiple Subscription, Complaints Management Framework among others, but however enjoined investors to take ownership of their investments. According to her “They have to be able to monitor their investments, attend Annual General Meetings as well as read the annual reports sent out to them. On our part, we protect them through the National Investors Protection Fund (NIPF) Risk Based supervision that enables us to supervise the operators to ensure that they do not do what they are not supposed to do. And again the Complaints Management Framework enables investors to know where to complain to and how long it takes for such complaints to be resolved. “We advise investors to get their financial advisers to advise them properly on where to invest. In this area, we advise retail investors to invest in Collective Investment Schemes and Mutual Funds because those are managed independently by professionals and they are diversified thereby reducing risks. We are committed to protecting investors in the work we do.

Friday 28 December 2018

Harvard Business Review

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ManagementDigest

How western multinationals are responding to the escalating U.S.-China trade war Paul Maidment

he furious reaction from China to the arrest of Huawei’s chief financial officer, Meng Wanzhou, in Canada at Washington’s request immediately raises the prospect of retaliation in kind against executives from North American companies, a fear reinforced by the arrests of a former Canadian diplomat-turned-NGOresearcher and a Canadian businessman. Western business people are ensnared in low-level court proceedings in China far more regularly than is reported in the West, and the risk remains low of a retaliatory move against a Western executive of a similar status to Meng. It would undercut the high ground that Beijing has occupied as self-appointed defender of the rules-based international order. However, there are other ways for Chinese authorities to take their reprisals against Western multinationals operating in China should they so choose. Day-to-day business operations can readily be interrupted through inspections, audits, and other tourniquets of red tape, and by the selective application of the letter of Chinese civil, administrative and criminal law. There’s also the possibility of travel bans on executives (including on those under unresolved court proceedings), and good, old-fashioned intimidation. Add to this the current trade tensions between the United States and China and Western multinationals, such as the big U.S. technology companies, that use China as a source of assembly, semi-manufacture or to provide components have an additional vulnerability: their value chain. For every such company, especially those critically reliant on Chinese subcontractors, their value chain is now actively at increased political risk. Local suppliers and their subcontractors are susceptible to pressure to behave “patriotically” when authorities convey the message, however tacitly, that lack of cooperation with foreign multinationals is in the national interest. Something similar has occurred when Chinese consumers have on earlier occasions read the signals for

when they were meant to boycott Japanese and South Korean products. There are many ways to apply informal pressure along the value chain, from delaying delivery to the easing of quality standards. Suppliers and subcontractors could find themselves suffering sudden and unexpected shortages of inputs, and disruptions from labor. Companies need to take urgent steps to measure their potential exposure. Doubling up value chains, including alternatives outside China, would mitigate the risk of political and regulatory disruption. (It would also have the added benefit of providing insurance against evermore-frequent natural disasters.) In our analysis and consulting work, we have come across some forwardlooking companies that have started to reconfigure their value chains where possible, particularly those who are vulnerable to U.S. national security concerns because they incorporate Chinese technology into their end products. Doing so is neither necessarily easy nor cheap. China has accumulated a vast manufacturing ecosystem servicing foreign companies, encompassing everything from hard infrastructure to soft skills. Its growth has accelerated in recent years as China has embraced automation as way to offset rising wages that could make it less competitive

as an offshoring center. For that reason, building up a parallel value chain is not simply about shifting to another low-wage country. Both the quality and quantity of China’s manufacturing skills, particularly in the areas of automation and robotics, deter companies from relocating from China to elsewhere in South or Southeast Asia. Lower-wage countries like Vietnam and Cambodia have little spare production or skilled human capacity left, even in relatively low-skilled sectors like textiles and garments, let alone the advanced precision tooling, materials handling and process engineering and development skills that a U.S. technology company needs. Nor do those countries have the resources to develop them rapidly. Regardless of these impediments, and even before the heightened trade tensions between China and the U.S., there was business logic to the case for value-chain diversification — and a parallel process of value-chain reconfiguration already underway in some sectors with a regional focus. Production of end-products and components — ranging from bicycle parts to computer hard drives — has started to relocate, with low-tech production shifting from China to Indonesia, Cambodia, Bangladesh, and India, and higher-tech ones moving to South Korea, Taiwan, Singapore,

and Malaysia. Vietnam straddles the two. Burgeoning middle-classes in South and Southeast Asia provide a growing market for China’s consumer and industrial goods, especially for non-luxury goods that do not need the cache of a U.S. or European brand. Countries such as India, Indonesia, Malaysia, the Philippines and Thailand are all forecast to be among the 20 to 25 largest economies during the second quarter of this century. Moving production nearer to those markets makes sense. At the same time, for other Asian nations, China is starting to look like the “market of last resort” for selling what they manufacture. The U.S. has been that market been since the Second World War. But the Trump administration’s “America First” policy, with its emphasis on domestically produced goods, seems to put that in doubt. Chinese companies, too, will be compelled to seek alternatives to the U.S. in response to Trump’s tariffs, especially those that have become U.S.-reliant, further accelerating the changes to regional trade and the value chains that support it. The overall effect will be that more value chains will begin and end in China rather than beginning in China and ending in the U.S. There will be fewer global value chains and more regional ones.

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

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The Trump administration’s trade policies will provide new impetus to the developing patterns of multiple, shorter regional value chains, but the transformation will not happen overnight. Value chains cannot be reconfigured any more quickly than a manufacturing plant can be rapidly rebuilt. Companies will hesitate to jump into new developing markets where investment laws can be unclear or nascent — like Myanmar, Cambodia, or Vietnam — and where labor and environmental standards lax. Nor will it be easy to replicate established relationships with factories, suppliers, and governments. Complicated electronics value chains, in particular, are so entrenched in China, it is unlikely that all business will shift away from the country as a result of the new tariffs alone. For its part, China itself is still dependent on specific imported technologies such as chipsets and sensors. This constraint will ease as China develops, with some urgency, local capacities in these technologies, not least because the U.S. is set on preventing the export of crucial U.S. technologies and blocking Chinese companies from gaining access to them through inward foreign direct investment. One scenario is that the current U.S. counter to China’s “strategic competition” — tariffs and technology export and investment controls — will further fracture value chains as it will lead to a dual global technology world with one part running U.S. technology on U.S. technical standards and another running Chinese technology on Chinese standards. There would be no certainty that the hardware, software, and services of these two worlds would be interoperable, and, once a market is locked into one or other of the systems, it would be difficult for users to switch. This would add complexity to value chains, making it more likely they would default to specializing regionally.

Paul Maidment is the director of analysis & managing editor at Oxford Analytica, an independent geopolitical analysis and consulting firm.

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How NHIS crisis stunted Health Insurance coverage …limiting remittance to hospitals …investigative panel’s report to help rejig sector

ANTHONIA OBOKOH

ealth service delivery in Nigeria has endured one of its biggest squeezes due to the silence over unresolved allegations of corruption in the sector. As the crisis rocking the National Health Insurance Scheme (NHIS) lingers, many Nigerians have been struggling to access healthcare services. NHIS was set up to, among other things monitor the Health Management Organisations (HMOs) in the discharge of their functions in the envisaged new health delivery structure. But with its current state, it has been unable to carry out this role. However, it is hoped that the submission on Monday 24th December of the investigate report from the Presidential Independent FactFinding Panel on NHIS Executive Secretary will help resuscitate the health insurance scheme before it collapses. “It is our belief and aspiration that our recommendations will reposition the scheme and proffer solutions to the challenges that have hindered the scheme in achieving its laudable objectives,’’ the Chairman of the Panel, Bukar Hassan, said while submitting the report to the Secretary to the Government of the Federation. The biggest fallout of the crisis has been that the hospitals, which actually provide the services, are now in the red. BusinessDay investigations revealed that because of the crisis, the HMOs have not been making payments to the hospitals or healthcare providers for services rendered many months ago. The hospitals in turn have been complaining about the delays, which, according to them has slowed down healthcare services provision to affected patients. “The crisis at the NHIS is affecting the whole healthcare insurance business,” Umar Sanda, president of Healthcare Provider’s Association of Nigerian (HCPAN), said in a telephone interview. “There is lack of payment disbursements from the HMOs and payment has been delayed,” he explained, adding: “The enthusiasm to do the work has reduced.” A medical practitioner based in Lagos, who pleaded anonymity, lamented that the crisis at NHIS

could truncate the health insurance scheme in the country. “The bills are piling up and they have not been paying, if this crisis is not properly managed effectively, the beneficiaries from the HMOs may not receive treatment and will be expected to pay out of their pockets,” he said. These trends in the sector are already scaring away some clients, a development that calls for a speedy response to restore sanity in the industry. “The last time I used the services of HMO was in 2014, the service was supposed to cover myself and my wife but when my wife goes to the hospital from time to time they usually ask her or me to contact the HMO” said Adedeji Muftai, a civil servant. “When we even reach the HMO, it takes a long time for them to resolve the challenge. Even at that they might not give you any drugs, they will tell you that the drugs are not available or that it will be available next week before you can get them” Muftai explained. The on-going crisis may also have contributed to the slow pace in health insurance coverage in the country, according to health analysts. As at now, the NHIS has managed to enrol just about 4 per cent of Nigerians, which is roughly 7.9 million of the 198 million populations, according to the latest estimate by the Nigerian Bureau of Statistics (NBS). Sanda, for instance, believes that the current events in the industry pose a threat to Nigeria’s aim of attaining complete health coverage. “The whole health sector is still at a standstill as regards insurance and it puts the country more at losing its

strength in the target of the universal health coverage,” he said. Some of the subscribers to the health insurance scheme, including Muftai, already feel that it is not working for them. “Assuming someone is dying, will the family wait for one week before the person can get drugs?” he asked. “At the end of the day you find out that what you do is to pay for the service out of your own pocket. We pay for our drug, so the HMO is not working for me.” Solutions to the challenges Baring whatever recommendations the investigative panel may have come up with, industry watchers say Nigeria can introduce quality at the core of universal health coverage, through a number of measures. These include increasing the National Health Insurance coverage, implementation all the national policies that have to do with the health sector, improving health infrastructure, and good administrative processes. Sanda also believes that part of the solution to the problems in the sector lies with a review of the NHIS Act, especially with regards to the slow progress in expanding care provision under the Scheme “Reviewing of the NHIS Act had become necessary in view of the poor coverage and so far the National Assembly has not passed the new NHIS Act. The new Act must make NHIS compulsory for us to move forward.” He argues that healthcare services have been dull because the state governments that are supposed to key into NHIS have failed to respond, which has affected healthcare provisions generally, according to him.

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Friday 28 December 2018

NCDC offers five important tips to prevent cerebrospinal meningitis he Nigeria Centre for Disease Control (NCDC) is issuing this public health advisory note to members of the public to be aware of the risk and take appropriate precautions. Cerebrospinal Meningitis (CSM) is an acute inflammation of the membranes covering the brain and the spinal cord. It is a very serious infection that can lead to death if left untreated. CSM remains a major public health challenge, affecting countries in the African meningitis belt, including 25 States and the Federal Capital Territory (FCT) in Nigeria. During the dry season, high temperatures and low humidity increase the likelihood of transmission of organisms causing Cerebrospinal

vember through May). The disease is contagious and can be transmitted through tiny droplets of respiratory secretions from an infected person, during close contact such as coughing or sneezing. The disease is more common among persons aged less than 15 years and deaths are higher among untreated cases. Signs and symptoms include sudden high fever, severe headache, stiff neck, sensitivity to light, difficulty concentrating, and convulsions. The major risk factors for infection include overcrowding and poor ventilation. During outbreaks, reactive vaccination campaigns can be used to prevent the spread of the disease. To prevent the spread of CSM, NCDC offers five important tips to members of the public: Avoid overcrowding and ensure adequate ventilation in the home Cover your nose and mouth with

Meningitis (CSM) in Nigeria. According to the press statement made available to BusinessDay, it states that over the last one month, there has been an increase in the reporting of suspected cases of CSM in Katsina, Zamfara, Jigawa, Yobe, Ebonyi, Bauchi, Sokoto, Kano, Bayelsa and Ondo with confirmed cases of Neisseria Meningitis Type C (Nmc) reported in Zamfara and Jigawa States. However, the Nigeria Centre for Disease Control (NCDC) and partners have commenced preparedness activities, through the national CSM Technical Working Group (TWG). The TWG has completed a risk assessment exercise for prioritisation, and issued letters of alert to states to ensure adequate preparedness this season. Large outbreaks of CSM usually occur during the dry season (i.e. No-

a disposable tissue or by blowing into the elbow when sneezing or coughing. Wash your hands frequently especially after coughing or sneezing. Visit a health facility if you have sudden high fever or neck stiffness for diagnosis and treatment All health workers are advised to practice universal care precautions at all times: i.e. wearing gloves while handling patients or providing care to an ill relative It is very important to report to the nearest health facility immediately, if you experience any of the signs or symptoms listed above. If you notice any member(s) of your family or neighbourhood with any of the listed signs or symptoms, kindly encourage them to report to the nearest health facility. Early presentation to a health facility and treatment increases chances of survival.

ANTHONIA OBOKOH

Ondo govt trains 100 doctors on life saving skills YOMI AYELESO, Akure

owards reducing Maternal and Child Morbidity and Mortality in Ondo State, the state government has trained nothing less than 100 doctors in secondary health facilities on Basic Life Saving Skills. Wahab Adegbenro, State Commissioner for Health, who reiterated government determination to improve the quality of health of citizens of the state, noted that most maternal and neonatal deaths result from com-

plications which can be averted through existing lifesaving medical and surgical interventions that are relatively inexpensive and should be readily available. Adegbenro noted that in a recent UNICEF report(2018), Nigeria has been ranked the 11th highest in the death of neonates and that most of these deaths, could have been prevented with the availability of well-trained health workers that can offer lifesaving support needed for the survival of the newborn. While stressing the need

for doctors to know the steps of a quality Cardiopulmonary Resuscitation (CPR) and also lead its team, the commissioner stated that the role of physician in emergency care is not only evolving but also expanding. He commended the sponsor, Ondo Saving One Million Lives Programme for Results (SOML), for its support in increasing utilisation and quality of high impact reproductive, children health and nutrition interventions in the state. He charged participants to

avail themselves the opportunity to be equipped with the necessary skills needed to improve the health sector and added that they should be ready to become change agents in their different facilities so as to prevent untimely deaths. Speaking earlier, Niran Ikuomola Permanent Secretary, Ondo State Hospitals’ Management Board (HMB), explained that the topic was chosen based on the board’s observation from its statutory monitoring exercises.

He hinted that the exercise would go a long way in bridging the gap and also improve the quality of health services. In his goodwill message, Executive Secretary, Ondo State Primary HealthCare Development Board, Francis Akanbiemu who stated that there is a mismatch between the mortality rate and the calibre of health workers in the state, commended HMB and SOML for organising the training exercise stressed the need for constant training for effective performance.

Friday 28 December 2018

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NAFDAC extols interagency support in nabbing unregistered, illicit pharmaceutical products CALEB OJEWALE

he recent successes in apprehension of shipments containing unregistered and illicit pharmaceutical products from permeating the Nigerian market has been attributed to the return of the National Agency for Food and Drug Administration and Control (NAFDAC) to the ports and borders, and support received from other agencies. In May, after seven years of absence the agency was authorized to return to the ports after what Mojisola Adeyeye, NAFDAC’s DG, described as a period of “heightened readiness and alertness of the Agency’s Ports Inspection Directorate in the control of importation of drugs, food, chemicals, detergents, cosmetics, and packaged water.” “When a country has no control of narcotics for about seven years, you can imagine the wrong that has taken place,” Adeyeye told BusinessDay in a previous interview. Adeyeye in a statement sent to BusinessDay, noted that, while acting on intelligence reports and in collaboration with the Nigeria Customs Service, NAFDAC monitored and intercepted 30 containers (between September and November) of unregistered pharmaceutical products that were destined for Nigeria. Prior to this time, 53 containers (in Lagos Ports) and 9 (in Onne, Rivers State) of unregistered pharmaceuticals were intercepted with the support of the Nigeria Customs Service. Of these latter containers, some have been examined while some are still waiting for examination. “The release of these containers into the country would have wrecked more havoc to our society and the youth in particular. Subsequently, the Nigeria Customs Service called for a joint inspection/ examination of the intercepted and blocked containers. “Upon examinations, the de-

tained containers were found to contain tramadol of high strengths and other unregistered medicines. Keeping to its mandate, NAFDAC thereafter seized the containers at the ports for possible evacuation and destruction. It is worth mentioning that one of the containers destined for Nigeria was later diverted to a West African country. However, with the support of the Security Agencies, the container was intercepted and detained,” Adeyeye said. Adeyeye, on behalf of the Council and Management of NAFDAC, expressed gratitude to the Nigeria Customs Service under the leadership of Hammed Ibrahim Ali, the Customs Comptroller General, for renewed and consistent support and collaboration the Agency continues to receive from the Service. The NAFDAC DG noted that upon receipt of her letter on the intelligence report about these containers, the CG gave directives that led to the interception of those containers and prevention of release from the ports. The statement further noted that the Agency’s support from the Office of National Security Adviser, engagement with the Nigeria Customs Service (NCS), support from the Comptroller General and officers of the NCS, plus change in paradigm of the Agency to ‘Customer-focused and Agency-minded’, have also positively influenced the control at the ports and borders. Adeyeye reiterated that the return of NAFDAC to the ports and the collaboration with the Nigeria Customs Service have paid off with several interceptions. A joint destruction exercise with the NCS will take place in the near future. Further, the collaborations have led to the formation of a Joint Committee of the NCS and NAFDAC. This is to further strengthen the existing collaboration with the aim of ensuring that Nigeria is no longer considered a harbor for substandard and falsified medicines and substances of abuse and illicit drugs.

UNIOSUN Recommences Bachelor of Medicine, Surgery Jonathan Aderoju

sun State University (UNIOSUN) has recommenced its Bachelor of Medicine and Surgery (MBBS) programme. According to the Vice Chancellor, Professor Labode Popoola, he said the move will enable the institution to demonstrate its relevance and play its role in the training of medical doctors for the state and the nation in general. Popoola said the MBBS programme, which was introduced at the inception of UNIOSUN in 2007 with full accreditation by the National Universities Commission (NUC) in May, 2012, was suspended partly due to inability of the university to meet the Medical and Dental Council of Nigeria (MDCN) accreditation requirements of providing a teaching hospital for student’s clinical training. He expressed delight that with the commencement of construction of UNIOSUN’s Teaching Hospital, the Senate and Governing Council of the university have approved the process of re-accreditation of the programme.

HBL Team

Popoola said considering the importance of the programme, the university authority deemed it a challenge to proceed with the process of getting the programme back on track. He said the foundation laying ceremony of the 250-bed Teaching Hospital of Osun State University, which was donated by the chancellor of the university, Folorunsho Alakija and her husband Modupe Alakija, indicated hope on the horizon for medical students of the university. Speaking on the development, Alakija said the idea for the hospital was borne out of her love for children, mothers and humanity in general and for the advancement of medical education. She noted that since the university has been given approval to recommence its medical school, she decided to donate a full-fledged ultra-modern teaching hospital as her contribution. She commended the people of Osogbo for donating a 30-acre piece of land for Osun State University Teaching Hospital.

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Strong link found between back pain and mortality

prospective analysis of back pain and rates of disability may help explain the association between back pain and

mortality. Back pain is very common, affecting millions of people worldwide. It is also a major cause of disability and missed work days. Risk factors such as posture, sedentary lifestyle, weight gain, obesity, and age can all contribute to the development of this condition. The National Institute of Neurological Disorders and Stroke suggest that around 80 percent of adults experience back pain at least once in their life. A United States telephone survey showed that the prevalence of chronic back pain more than doubled in the 14-year interval between 1992 and 2006, and that it was greater in women. Back pain can be acute or chronic. Acute back pain can last for a few days to a couple of weeks, and it usually resolves on its own. Approximately 20 percent of people with acute low back pain develop chronic low back pain. Chronic back pain lasts for 3 months or longer. Chronic back pain may be due to underlying conditions such as osteoporosis and cancer. Measuring the effects of back pain Researchers from Boston Medical Center in Massachusetts were interested in knowing more about the effects of back pain in women, given the higher prevalence of this condition among women aged 40–80 years, compared with men. The study, published in The Journal of General Internal Medicine, followed 8,000 older women for an average of 14 years. “To our knowledge, our study is the first to measure disability after measurement of back pain. This allowed for a prospective analysis of back pain that persisted over time and later rates of disability, which

may help explain the association between back pain and mortality,” says lead study author Eric Roseen. The scientists took baseline measurements of back pain and followed up 2 years later. They asked the participants about or observed everyday activities, and many of them had difficulties performing tasks such as walking, meal preparation, and repetitive movements. Activities such as walking short distances and meal preparation explained almost 50 percent of the impact of chronic back pain on mortality. Observed walking speed and repetitive standing up from a chair explained about one-quarter of this association (27 percent and 24 percent, respectively). Over 50 percent of participants died during the follow-up period. Around 65 percent of women with frequent persistent back pain died during this time, compared with 54 percent of those without back pain. Higher mortality risk The results of the new study show that there may be a strong link between back pain and mortality. Though the reasons behind this association remain unclear, researchers believe that other factors connected to back pain may contribute

to an earlier death. “Back pain may directly impair daily activities, but older adults could inappropriately avoid them due to fear of re-injury or worsening of symptoms. Being unable to perform, or avoiding, daily activities could lead to weight gain, development or progression of other chronic health conditions, and ultimately earlier death,” says Roseen. The older population is increasing worldwide. Around 8 percent of people are aged 65 and over, and estimates suggest that this number will grow to nearly 17 percent by 2050. In light of these statistics, optimizing physical health to extend life for older adults is becoming a priority for public health institutions and research. “Our findings raise the question of whether better management of back pain across the lifespan could prevent disability, improve quality of life, and ultimately extend life,” concludes Roseen. More research is needed to assess the long-term effects of back pain, but these findings pave the way for future studies that aim to find better treatments, guidelines, and strategies to address this condition. Culled from Medical News Today

Taraba state ranks 2nd on HIV/AIDS infection in Nigeria jonathan Aderoju

he Director-General of the Taraba AIDS Control Agency (TACA), Abba Sale Ibrahim, says a recently released statistics has shown that the state currently ranks second in the prevalence of HIV/AIDS infection in the country. Speaking at a joint press conference in Jalingo, marking the World AIDS Day, he said the agency focused attention on the urban areas for free HIV and AIDS testing and counselling. He said it was imperative to reach out to the remote areas where the level of awareness was very low and most people had no access to medical centers for test. Focus its attention in rural areas with a view to render its services to rural communities. “The aim is to ensure that we do not only sensitize the people

on preventive measures but we also provide free counselling and testing so that they will know their status and take the appropriate measures”, Ibrahim said. Nigeria has the second largest HIV epidemic in the world.1

Although HIV prevalence among adults is much less (2.8 percent) than other sub-Saharan African countries such as South Africa (18.8 percent) and Zambia (11.5 percent), the size of Nigeria’s population means 3.1 million people were living with HIV in 2017. It is estimated that around two-thirds of new HIV infections in West and Central Africa in 2017 occurred in Nigeria. Together with South Africa and Uganda, the country accounts for around half of all new HIV infections in sub-Saharan Africa every year. This is despite achieving a 5 percent reduction in new infections between 2010 and 2017. Unprotected heterosexual sex accounts for 80percent of new HIV infections in Nigeria, with the majority of remaining HIV infections occurring in key affected populations such as sex workers.

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

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FinTech News

Products Review

Technology Review

Personality Review

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Friday 28 December 2018

Company Review

Eight prominent views on Nigeria’s Fintech space in 2019 FRANK ELEANYA

018 was a mixed year for startups in the Nigerian fintech space. For a handful of them, it was spectacular year as far as funding goes. Cellulant, Paga, Paystack, Lydia, Branch, Piggybank all brought in significant investments secured from mostly foreign partners. It was also the year traditional financial institutions not only increased collaboration with fintechs but even dominated the fintech space with new products. For instance, about five banks launched their version of WhatsApp banking in 2018. Interestingly, Nigerian banks’ increased participation in fintech was one of the predictions we received for 2018. For 2019, we asked eight people comprising of investors, founders, experts and professionals to give us their predictions. Their views: “We are now at a point that fintech is no longer a new concept to Nigerians. It is becoming more common for people to transact on digital financial platforms, and this will grow even more in 2019. Incumbents in every financial services sector will join the fintech bandwagon and try to offer more digital products, from insurance to pensions, to trading,” says Babatunde Babs Ogundeyi, founder and CEO of Kudi Capital Management Limited. The fintech company is behind the Kudimoney initiative which provides personal loans online. Kudimoney made the top 50 in global digital banks’ list in 2017. “Insurtech will witness the most activity in terms of new

entrants. Expect to see more activity in the online lending space with the emergence of new players with significant capital threshold from the Central Bank of Nigeria. “Those taking deposits and those in the payment sector will struggle to innovate independently without the required license due to lack of capital. This will lead to more collaboration with incumbents where the fintechs provide the technology. However, fintechs that are able to operate with greater autonomy will be more successful as they will be truly liberated from bureaucracy of larger corporate. “With regards to funding, expect to see more foreign inflows particularly at seed stage as more investors take bets on smart and ambitious founders.” Ahmed Razaq, the co-

founder and CEO of CowryWise which recently made the list of top 50 World-Changing Startups to Watch, says 2019 will see more regulatory framework for fintech taking hold and adoption of fintech will increase as firms pursue growth to justify the investment flow into that space. “Payment will continue to create attention as the growth trajectory is quite steep,” Razaq told BusinessDay, “Also, financial services built on payment infrastructure such as credit, savings and investment will lead the pack.” Collins Onuegbum executive vice chairman, Signal Alliance and director at Lagos Angels Network (LAN) also expect regulation being a major driver of change in fintech landscape. “Watch out for the effect of telcos entering as pay-

ment service providers into the sector. What I see will be acquisitions; the large new entrants acquiring smaller companies to get a headstart or international operators eyeing the Nigerian market buying up smaller local players and helping them scale,” he said. Rahmon Ojukotola, founder of StartCredits, a company that offers online loans and help users save money by comparing loan providers, says regulation will boost collaboration among fintech players. “Assuming the cost of data declines significantly, (it will lead to) a substantial increase in online payment transactions.” Like Onuegbu, Ojukotola sees potential acquisitions by depositions money banks of fintechs that align with their strategic interests.

Ndubuisi Ekekwe, founder and chairman of Fasmicro and a tech expert also see the fintech space continue on it growth trajectory. However, he does not think mergers and acquisitions are likely in 2019. “We have about 5 credible companies in the space,” he said, “Most just raised money. I do think there is no need for any to sell. There is still room to fight before they can give up. The industry is still at infancy for us to be talking of M&A. “The only black swan will be if CBN changes regulations making it harder for them. But if things stand the way they are now, no issue. Zamfara has about 4% BVN penetration – average in the borth is about 7%. This thing is just starting.” Eromosele Omomhenlem, principal technology strategist, Digital Transformation

Maturity & Blockchain at Microsoft, says he sees blockchain going mainstream as blockchain related projects shift from cryptocurrency initiatives to actual value derivation from the platform. Within the enterprise space, businesses will no longer seek to explore the importance of blockchain. The focus will be pilot projects for suspected areas of value – harnessing the value of the platform. This will also take the form of partnerships with technology innovation hubs across the continent as well as competency development of in-house teams. “Startups and tech companies will embrace more of hybrid pilots to explore integration of blockchain into enterprise businesses together with mobile capabilities, artificial intelligence, robotic process automation and machine learning.” Olaoluwa Samuel-Biyi a director at SureGroup, the fintech company that secured $7 million in funding from an initial coin offering (ICO) believes that 2019 is the year of cryptocurrencies. “I think it will be the year of cryptocurrencies. Mobile money and bank transfers are already quite mature, but they still don’t fully serve the needs of the market. Cryptocurrencies will fill that gap, especially for cross border transactions.” Sheriff Olujide, CEO of CryptoBrokerage, a cryptocurrency aggregation platform supported by artificial intelligence, says the beginning of 2019 will be tougher for cryptocurrencies compared to 2018. “However, towards the end of the first quarter of 2019, the bull would return.”

Friday 28 December 2018

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God Calling, a new narrative in storytelling OBINNA EMELIKE

ome of the most difficult films to make are those t hat a re f a i t h based, particularly in Nigeria where most people are passionate about religion. Most writer/directors struggle with the story line in order not to offend people’s faith. Even producers scout endlessly for funds because faith-based movie production is a risky venture, which often leave investors worried about return on their investments. Despite all these seeming challenges, BB Sasore, an ace filmmaker, trailed the ‘narrow path’ and came out with something entirely different in the history of the Nigerian movie industry. BB Sasore took movie lovers on a journey with a unique storyline that has changed the movie production narrative. Riding on the success of the series Before 30, and his awardwining movie Banana Island Ghost, he enthralled the audience with God Calling, his recently premiered faithbased movie. The movie is a story of redemption that looks at the life of Sade, her family and her faith through the lens of an unconventional encounter with God in this modern age. On what stands the movie out, BB Sasore says, “I think people are drawn into the performances that are delivered by the actors. You are going to see RMD, Nkem Owoh, Onyeka Onwenu in ways you have not seen them before; and of course, the new actors: Zainab Balogun, Karibi Fubara, and the little child actress Diana Egwuatu”. He believes that God Calling could be the next big thing because it draws people to see Nollywood

quality in ways they have not seen it before. “We are able to create many things that would have been difficult without visual effects. Yet, the entire cast and crew are all Nigerians and everything was shot and made in Nigeria. Also, the story is relatable and identifiable though it is a faith-based film. It is something we can all see in ourselves and it makes you sit back, reflect and think for a second about what your purpose is on earth. The film makes you have some internal dialogue, even if it is for a moment”, BB Sasore continues. In line with BB Sasore’s views, Zainab Balogun, the lead actress, says, “This is a different scope in terms of movie making in Nollywood. It is not a movie just for the purpose of entertainment, it engages viewers with it relatable storyline”. “I remember putting the trailer on my social media and I received hundreds of comments from people giving testimonies from just watching the trailer. These were people who felt that this has touched something in them, particularly things they had gone through, and it opened the door for them to have some sort of dialogue with God or a ‘higher power’. It ran on themes they weren’t used to seeing in the cinema”, Zainab explains. She thinks that God Calling is going to bring a lot of people to the cinema because of the message, as well as the quality of the production. “When you look at any of BB Sasore’s projects: Before 30, or Banana Island Ghost, there is a way in which they all try to push themselves forward - be it through special effects or relatable story, because BB is a great story teller. This shows again in God Calling. The movie was done by Nigerians, he did not have to send the project to America

or South Africa to have it edited or special effects done”. Richard Mofe Damijo, who is popularly called RMD, says he is among the cast because the movie has relatable story and is professionally done. “The director is one with an eye for detail. I love his dedication to the unusual which comes with all the special effects done so elegantly”, RMD says. For the veteran actor, the redemptive value of the movie is good and it will make great waves in the box office. “This movie will rock the box office. Apart from the special effects which have wowed everyone, word of mouth will sell it even more. Everyone that called me after they saw it at the premiere told me they cried”. RMD hopes to work with BB Sasore on other projects because, “I love the young man and his keen eye for detail, and what he brings to the table. He will go far”. Furthering the reasons the movie is a must-watch, Zainab says, “It is not just a movie for Christians and

church-goers, it is a movie for people who have been through a number of things and who are in search of some form of an anchor. This project was delivered by a combination of people who are Christians, Muslims and those who don’t even believe in God, but they believed in the message of the story, which was about family, love redemption and believing in something higher”. Explaining the secret of the high quality production, BB Sasore says, “That is something that is a testament to the quality of the entire crew. There is no part of filmmaking that is not collaborative. I am proud of the talent we at Nemsia Films have been able to assemble in over the last two productions that we have done”. “I can comfortably say that we have some of the best hands in each of our departments. The cinematography and visual effects are the very best. Everybody had that attention to detail in their own departments;

production, editing, design, sound, cinematography and everything. Yes, I wrote and directed the movie, but it is not something I can take credit for. It is a true testimony to the quality in Nollywood, and the Nigerian talent who made the production possible”. Funding was less of a challenge for BB Sasore because of his creative ingenuity, and successful projects in Nollywood so far. It turned out raising money for two of his previous projects was more challenging than for God Calling. “We might assume that because it is a faith-based film and people are passionate about God and religion that it will be easy to find money, but it was a risky venture because people were worried, and asked if we were sure we could make a faith-based film on this scale that people will want to see across the country. “For me one of our biggest hurdles was when Ibukun Awosika, one of our executive producers, signed up to the project. It was the

quickest and most important five-minutes meeting I have had in my life. I went to her and told her I wanted to do a faith-based film and we had a concept of a woman who gets a phone call from God. She said ‘let me pray about it’, and later said ‘I am in’. That was it. She wanted to make sure the script was right and the project was in sound hands, so once she came on board she started making calls for us and we starting raising funds”. For him, the challenges were less financial, and more of the responsibility of telling a faith-based story on this scale considering that people are very passionate about God in Nigeria and one would not want to do it in a way that would be disrespectful to people’s faith. “That was the pressure I put upon myself to ensure that the film was properly done, and with God’s grace here we are today”, he says. He also commended the veterans for bringing their best, the new actors for proving themselves, especially Zainab who he says “prepared herself so well for the audition, she came ready to become the lead actress and the moment we saw her, we knew she was going to be Sade”. In addition to Ibukun Awosika, BB Sasore appreciates other executive producers who funded the movies including Derin Adeyokunnu, Yomi Jemibewon, Patricia Jemibewon, Uzo Nwagwu, Chijioke Uwaegbute, Karibi Fubara, ZeeZee Ihe-Okuneye, Olalekan Olude, Opeyemi Awoyemi, Dolapo Awosika, Enyi Omeruah, Chioma ‘Chigul’ Omeruah, Rahul Keswani, Sahil Keswani, Chukuka Chukuma and Ekeinde Ohiwerei. God Calling premiered in cinemas across the country on December 21, 2018.

Tiger beer ‘uncaged’ art and fashion expressions at born in Africa festival SEYI JOHN SALAU

iger Beer partnered with Livespot at the just concluded inaugural edition of the Born in Africa Festival (BAFEST) to thrill fans to some moment of fun. The event which held at Eko Atlantic, on December 16, 2018, featured some of the biggest

entertainers in the country including Burna Boy, Kizz Daniel, DBanj and Tiwa Savage, as well as continental stars Awilo Logomba and Sho Madjozi. Tiger Beer was announced as sponsors of the festival, days before the main event, and the beer brand provided a unique ambience to the concert. Speaking on Tiger’s involvement at the festival,

Chinwe Greg-Egu, the brand manager, International brands, Nigerian Breweries Plc, said, “Tiger beer celebrates the passion and daring nature of young Nigerians. The brand highlights their courage as they dare to be different and stand out. BAFEST gives us the opportunity to engage with our core consumers as they come together to celebrate the best things about being African.

We are happy to be part of this event and we are glad we’ve been able to immerse the brand in the African and Nigerian culture through the Born In Africa Festival,” said Greg-Egu. Tiger beer was launched into the Nigerian market in April 2017 and has since made giant strides in the Nigerian beer market, positioning itself as the go-to brand for the young, adventurous,

Nigerian beer lover. Emmanuel Oriakhi, the marketing director, Nigerian Breweries Plc, said the brand wanted to be close to its consumers. “BAFEST presented us with this opportunity, allowing us introduce Tiger to young, edgy, progressive and passionate Nigerians. We intend to continue on this path and we believe this is only the beginning of what will be a long relationship between

the premium beer brand and Nigerian millennials,” said Oriakhi stating that 2018 has been a landmark year for Tiger Beer. A Tiger corner was set up at the festival, which featured a graffiti photo area complete with a graffiti wall and car for photo opportunities. Guests were also treated to 360-degree videos and photos upon entrance into the Tiger corner.

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Friday 28 December 2018

Business Etiquette

Movie Review – CHIEF DADDY Linda Ochugbua

F you are looking for a good laugh, then you might want to see this new Nollywood movie – CHIEF DADDY - by Ebony life productions, the producers of “Wedding party” 1 & 2. It seems they have developed a trend of releasing new movies every Christmas season, to make sure everyone is fully entertained during the festive period. There have being mixed feeling with this new movie, although some people love it because of the drama, comedy and A-list Actors, people like me feel it was just okay. It had no substantial storyline, which I always insist is crucial in order to be rated a good movie. It looked like the movie contained only 4 scenes technically, but I will go into details later. This new addition to the Ebony life production group was produced by Temidayo Abudu, Queen Martins and directed by Niyi Akinmolayan. It was a very hilarious movie with a few scenes but loads of acts, although this movie was very funny, I could technically divide this movie into like 5 major serious scenes, and that isn’t too good for a movie. There were a few things good about this movie - the perfect cast who played their roles well, the impeccable production and crew. But I think for critics like myself, our expectations for Ebony life movies are way higher, hence the need for them to do much more. Joke Silva played the lead role as chief Beecroft’s main and only wife, so she thought; she loved her husband and served him well. The first scene which started with chief Beecroft eating and asking everyone to fill their list and drop off on his table for Christmas, little did he know that, he was on a narrow exit out of this world. In the process of

eating he had a heart failure and passed on; this was when the movie kicked off to a whole new level. The funny side to this movie was at every point when each wife or child was called, they worried more about they had requested for than the crying about their dad, which was quite weird. His will had to be read, but before that he gave his lawyer some instructions for his family on what they were to do - plan his burial with no quarrel or hitch, before the main will be read finally. Some highlights from the movie were the burial scene of Chief Beecroft and during the reading of the will by the lawyer. The burial scene was very funny as each of the wives’ wanted to be noticed as the main wife, they brought their friends to usher them in, this didn’t go well as the most of the wives ended up fighting, they were lucky that didn’t affect the reading of the will the next day. This was another funny scene, as they rejoiced about the numerous funds and properties, the lawyer invited the Chief Daddy’s investors to tell them how to go about it and what they found out wasn’t in anyway pleasant. Verdict: This movie deserves a 7/ 10. Although there were some good scenes, the movie still had some loop holes and didn’t surpass my expectations. I enjoyed its good production, cast and crew, costumes and the locations. The major issue for me about this movie was the storyline which wasn’t so good enough. Comedy and drama movie lovers will most likely love this one. Movie Credit: Cast: Beverly Naya, Beverly Osu, Chioma Chigul Omeruah, Funke Akindele, Falz, Dakore EgbusonAkande, Ini Edo, Joke Silv, Kate Henshaw, Nkem Owoh, Patience Osokwor, Rachel Oniga, Zainab Balogun, Richard Mofe Damijo. Duration: 1hr 38min Genre: Comedy & Drama Ratings: 15 Feel free to review any movie of your choice in not more than 200 words and send via mail to linda@ businessdayonline.com and stand a chance to win a free movie ticket. Linda OchugbuaTwitter & Instagram: @lindaochugbua

with Janet Adetu

Declutter now Merry Christmas to all our esteemed readers!

time to be grateful for everything in spite of what we see happening around us. A time to remember all our loved ones and reach out to them too. Through it all we hope and pray for the best in the future to come. Yes indeed the New Year is knocking around the corner, so it is time to take stock reminisce and look ahead for good times to come. This for me is the perfect time to prepare for the New Year, New Things, New Projects, New Perspective and New Beginnings. Especially if things did not go the way you expected or even the way you wanted in the last year this is the perfect time to re-strategize, by placing all your cards on the table reorganizing your life goals, business career opportunities and much more in a better way than before. It is that time that you recognize all those things that presumably did not count as important back then but mean something now. You will need to dot all you I’s and cross all the T’s to make it work this time. I was reflecting on the past year myself, I decided to go the whole nine yards and take complete stock of what went very well, what could have been done much better and what did not go well in my opinion. My mindset took a totally new turn, I am now so excited about the new ideas I have and am motivated to look at anything to inspire me to excel. With this in mind my drive to lead and carry my team along has escalated to newer and greater heights. I feel that it is the way to enter the New Year with better perspective, ideas, innovation and strategies that will challenge you to go the extra mile. No doubt you may not feel that way if things seem to be going on pretty well and you feel you are great in the space you are now. Things may be working just fine, however the future as they say is so unpredictable, also as we can see times are constantly changing. This calls for one to be alert, on point and on the go, time waits for no one; our task today is to keep up with time. In order for you to evolve

in the New Year there is an important exercise that beckons for us all to do. You may feel you are sorted as you left the office for the festive break just before Christmas but you will be surprised at what you left behind. This is the season to declutter, yes you need to declutter everything and now. Declutter Strategies Let me give you my strategies to kick start your declutter exercise; however you know best all those areas you need to declutter in your life, just take a leaf from my ideas. Declutter your Goals In life at the beginning of

Declutter your Office Space Your desk in the office is part of your office space, you may have accumulated a lot of unwanted papers all over hiding in drawers in file trays and on the table. Double check if they are still useful or simply discard and declutter your space. It is always refreshing to walk into a clean space in the New Year. Psychologically you prepare your mind for new things, new ideas and you are motivated to kick start the new season on a good note. What was from the past keep it in the past

sociate from relationships that are not adding value to your life. At times this may be hard core as it requires elements of exercising the art of forgiveness, kindness, consideration, discipline, calm and forward thinking. Declutter yourself from any relationship that is toxic and harmful to your state of mind. Declutter yourself from relationships that add no progress to your core values. In the process of decluttering it is a good idea to build relationships that will add valued progress to you, your calling, your career and

the year, it is expected that you sit back and set good life goals for yourself, that will set the tone for how you will maneuver work life balance, feel happy and accomplished. It is when your goals are too many, when they appear unachievable and unrealistic that procrastination first sets in and the goals become endless and never achieved. You may start by pruning down all your goals; start with dividing your goals into quarterly goals and limit to one or two major goals per quarter. It is those quarterly goals that are realistic and appear very achievable that can be dissected into smaller goals for ease and simplicity. Take out all those goals that are good, but long term dreams for now and keep them in a safe place for the future.

and lay the foundation for a new beginning. Take away all files and store them in your cupboard or drawers create space for the old files and make way for the new stationaries, you will see that you feel much more prepared to take on new challenges in your new role. Declutter Relationships As open ended as this may sound there will be relationships that you have acquired that have been great, existing relationships that are still going on very well, acquaintances that have good potential and intimate relationships that are for a lifetime. You must not overlook the fact that some relationships did not go well, some friendships have taken a bad turn while others have become toxic. There is no harm identifying where you need to disas-

your progress. Declutter your Home Finally in the entire exercise of decluttering you cannot forget to declutter your place of abode that is your home. Declutter rooms that you have wanted to tidy up for a while. Declutter your bedroom space by giving it a new face lift. This includes your litchen, living areas, guest rooms. It may involve areas you can rearrange with no added cost involved. Look for areas that could do with renovation. You may add pictures, flowers, ornaments and other finishing touches to give that new sense of life. Endeavor to do something different, something new this season, look forward to 2019. Share your experience with me and follow me @ janetadetu

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Onne Ports count 2018 achievements, but challenges persist

…promises to galvanise chamber to resourcefulness

EFEGADIRIM MADU, in Port Harcourt

nne Ports complex, which is also home to the Oil and Gas Free Zone (OGFZ), has reeled out achievements it was able to post in 2018, although huge challenges still persist, with pretty low vessel traffic the biggest. This has brought about low maritime business. Alhassan Abubakar, port manager of the port told journalists during a recent stock-taking media briefing at the complex in Onne, near Port Harcourt that they received and installed quay fenders, which have been installed at the Brawal Oil Services quays area at the Federal Lighter Terminal (FLT). He further stated that the improvement recorded in Onne ports was in line with the Federal Government’s Economic Recovery and Growth Plan (ERGP) of creating a global competitive economy. “The introduction of ease of doing business by the Federal Government has added impetus to our desire to improve ports operations. As a result, critical infrastructure like lighting in the port had all

EFEGADIRIM MADU, Port Harcourt

N been reactivated in Onne ports,” Abubakar said. In the year under review, the Ports, with one of the biggest cranes in Africa, got a new electricity injection station to provide power supply to the facility. Its water plant, which has been down for 16 years, was reactivated. It also got six Hilux vans and an ambulance to aid port operations. Onne Ports comprise the Federal Lighter Term i na l ( F LT ) , Fe d e ra l Ocean Terminal (FOT) and WACT. The facilities occupy 2,538 hectares of land and a channel, with low ship and vessels traffic, has also began moves to evacuate wrecks from the channel, as part of clearing the port for expected vessel traffic. The port manager informed

that two wrecks have been successfully evacuated in outgoing 2018. Abu b a k a r s a i d t h e port has 12 deep berths of 12-metres each (1-6 at FLT, 7-9 used by West African Container Terminal – WACT and 10-12 used by Integrated Logistics Services – Intels), has also witnessed export increase with two vessels. But despite this, the port is still pretty low on maritime activities. He added that plans are underway to increase the berths to 19. Abubakar also informed that they have also been operating two vessels for RORO [roll on, roll off ]; vessels for fertilizer exports by Indorama Eleme Fertilizer & Chemicals limited (IEFCL) and another for

urea importation from Morocco for use in the blending plants across the country. The port manager said they have provided ‘safe anchorage area’ to take away seized and abandoned vessels on the waterways. He stated that Onne ports have the biggest cranes in Africa, with the capacity of lifting over 230 tons of cargo as well as a dedicated container terminal. Meanwhile, Abubakar, who specialized in ports and cargo handling with over 29 years’ experience and an alumnus of Cardiff University, UK, said the Onne Port has no issues with Terminal Operators, and that their operations have ran so far unhindered by either party.

LEAD introduces on-demand car services in Owerri SABY ELEMBA, Owerri

n innovation in road transport business, which would eliminate time, fuel wastages and remove inconveniences, as well as curtail the disappearance of drivers with cars when conveying passengers, has been introduced in Owerri, the Imo State capital by LEAD Car Services. However, the innovation in the transportation sector is designed not to phase out those who are already in the taxi service business, but to complement them with its new services. According to Obinna Ejikeme, the managing director/ chief executive officer (MD/CEO) of LEAD Car Services limited, the unique selling point of their car hire service include insurance cover for

New Port Harcourt Chamber of Commerce executive inaugurated

the drivers, which entitles a driver registered with the firm who suffers a permanent disability or a perpetual injury to an indemnity of N3 million and a N120,000 for treatment of the injury while in the hospital. An intending commuter would easily hire a taxi by pressing or touch a button on his mobile telephone. This, he explained to select journalists how the technology works and how the services are accessed; adding that all an intending commuter would do, is to download the LEAD app from the Google play store, and register with the LEAD Car Services Ltd. Upon registration, the intending commuter would “hail” a taxi using the mobile application and fill in the vehicle specification, location and destination; and that would help the

company arrange immediately for a cab driver that is closer to the intending commuter’s location. The online car services eliminate time and fuel wastages by drivers who comb the roads and streets in search of passengers; even as it links drivers and clients with ease, Ejikeme said. The innovation in the transport business is safer, although it was not introduced to displace those already in the business. The data about the driver, the car and the commuter are in the system; while the journey is also being monitored from the office to ensure that the client or commuter gets the best of the services he or she deserves, he stated. Another unique thing about the LEAD car hire service is that it enhances

and boosts the finances of drivers working with the firm or car owners who would join the system to earn extra income different from their normal businesses, by operating at periods convenient to them, like evening hours after the close of their regular work, or on weekends, the managing director said. Okechukwu Nwabueze, brand strategist of Walks and Gates Limited, while attesting to the new transport system, said that joining the LEAD Car Services quickens return on investments (ROI); and besides being profitable, the service has helped to create job opportunities for the people. Nwabueze, whose company is a consultant to LEAD Car Services, said the system has been a huge success in Lagos, Delta, Anambra and Enugu states.

ewly elected executive and council members of Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) led by Nabil Ahmed Saleh have been inaugurated with a firm promise to galvanise the chamber for resourcefulness. The new PHCCIMA executive and council members take over from the immediate past leadership led by former president, Emi Membere-Otaji, who served out his tenure this year. Saleh, speaking on behalf of the new executive and council, was until his election the first deputy president of PHCCIMA. He emerged during the 61st annual general meeting (AGM) of the chamber of commerce which held in November at the banquet hall of the Hotel Presidential in Port Harcourt, Rivers State. PHCCIMA was founded in 1957, and lays claim to being Nigeria’s second largest city chamber by membership after the Lagos Chamber of Commerce and Industry (LCCI). Nabil Saleh, who is the managing director of M-Saleh & Company Limited, an energy/ agricultural company dealing in the sales and servicing of generators, transformers, tractors, concrete mixers, waste bins, and other heavy-duty equipment, said their executive and council would engage in membership update of the chamber; register new members, recall old members who lost interest in

the chamber, as well as create a help desk, research/advisory desk for members. He said the new PHCCIMA leadership under his watch would engage in workshop and seminars at least quarterly to update members on new business trends. Originally born in Saida, Lebanon, Saleh is a naturalized Nigerian citizen. He said they would undertake networking with other corporate organizations and government institutions, as well as create corporate relationship with the Rivers State government, which is a major supporter of the chamber of commerce. Recall that recently, the state government under Governor Nyesom Wike donated a parcel of land for building a permanent trade fair centre for the chamber of commerce, which has operated on rented sites for 61 years now. Saleh informed the PHCCIMA members who were present at the inauguration dinner at L’A’ Kings events centre, Port Harcourt that, his leadership would undertake the building of a trade fair ground and cluster park. The structure, he said would be better equipped and planned out to maximize revenue generation for the chamber. He said they would also lay foundation stone for a new PHCCIMA complex. The new executive and council informed that they would also promote the interest of members of the chamber, as well as develop the chamber’s MSMEs and Entrepreneurship groups.

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Friday 28 December 2018

Hotels Amani Spa, an escape at Radisson Blu Ikeja

Top BusinessDay Partner Hotels

OBINNA EMELIKE

f you have visited Radisson Blu Hotel Ikeja on business purpose, there is a need to repeat to explore its leisure offerings, especially this festive season. There is no better time to kick back in one of the 94 stylish rooms and suites than this festive season. Aside retreating to the spacious and contemporary hotel rooms, guests can also squeeze in a workout at the well-equipped fitness center, recharge their mind and body at the hotel’s sparkling outdoor pool, which boasts a three-story-tall water feature, grab a drink at the poolside bar or enjoy sumptuous meals at the restaurants. Of course, there are lots of exciting nightlife activities this season, just ask the concierge for advice on where to go or use the hotel’s free Wi-Fi to check local reviews. However, there is a premium package that offers five-star leisure experience to guests at the hotel. The Amani Spa is a reason to visit the hotel, especially this festive season to indulge in a premium leisure offering from the stable of Amani, an indigenous Africa spa brand. The brand is a leading spa brand and creator of awardwinning and exceptional spa experiences in exciting sought-after destinations of incredible beauty across the continent. “Amani” means peace in Swahili and encapsulates the spirit of Amani’s mission to evoke a sense of “inner peace”, to enable people to reconnect with themselves and improve their quality of life through physical, emotional and spiritual wellness. At the spa, which is located on the first floor of Radisson Blu Hotel Ikeja, the experience is same as in other Amani Spa destinations in Africa. Beyond glowing the skin with natural ingredients, on a visit, a guest wakes up to

Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734

Transcorp Hilton Abuja 1 Aguiyi Ironsi Street Maitama, Abuja Tel: +234-708-060-3000

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja. Tel: +234 9 4603900, +234 805 7522500

goodness and stays healthy afterwards. Your experience starts with the warmth at the spa concierge, genuine smiles that welcomes you and proper documentations that help the staff to offer you packages that fit you. Jade Phillips, a spa specialist, leads a team of trained staff, who are equally passionate about their work, to deliver memorable experiences to guests. Aside the leisure purpose, visiting the spa, according to Jade Phillips, offers visitors opportunity to rejuvenate their spirit, regain balance and restore the skin after the havoc wreaked on it by stress in the passing year. While there are many treatments and offerings, top among them include: The Royal Journey, the spa treatment, which lasts for 90 minutes regenerates and lifts the body after a process of purifying, detoxifying and healing the body through a holistic mineral mud experience. As well, the 24 Carat Cleopatra, which lasts for 90 minutes is an extraordinary signature treatment, which combines the power and science of 24 carat gold for

a flawless skin tone. For a holistic head to toe experience, the Pearlescence is recommended. But the ultimate indulgence lies with the Amani Signature Journeys, a 90-minute Kurhula body ritual, a unique and luxurious full body massage using Amani’s signature coconut massage balm, flows into a revitalising mini facial bringing balance to the body, mind and soul. As well, you need to experience the Jewel of Africa Massage. The 90 minutes experience offers restorative and energising quality of warm salt crystals, rich coconut balm and flowing movements, which work in unison to rapidly reduce tension in the body. Yet, Hydro Harmony indulges one in a 90-minu te e x h i la rat i ng Ra su l session with the self-application of a body peel and mask. Followed by a floatation pool session imitating the Dead Sea, this results in deep relaxation and relief of joint and muscular tension. But the African Rungu is another package to experience at the spa. It is a 60-minute unique African

massage, which uses an ancient African warrior stick to deliver long deep pressure strokes that facilitates deep tissue manipulation promoting pain reduction and improved blood and lymph circulation. Other offerings include hot stone massage, Swedish, couple, Aromatherapy, pedicure and manicure, deep tissue, body wrap, body polish, flotation, Amani romance, royals, bride-to-be, corporate packages, among others. However, the spa manager noted that the spa experiences are world class with best natural ingredients and well-trained Africans in-charge. On a further reason to visit the hotel for the spa experience, she explained that, “The experiences we deliver are consistent and professional. Each of our spas promise peace and tranquility, where you can indulge in our premier spa packages, signature spa rituals, holistic skin beauty and body treatments and hydrotherapy treatments”. Well, if you have not visited yet, there is still time to book for a new year spa treat. Jade Phillips and her team await your visit!

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

Radisson Blu Hotel Ikeja #38/40 Isaac John St, Ikeja GRA100271, Ikeja Tel: +234-908-780 5555

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ Island

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

Radisson Blu Anchorage Hotel 1A,Ozumba Mbadiwe,Victoria Island.

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How undergrid minigrids can help communities cut power cost Stories by ISAAC ANYAOGU

any rural communities in Nigeria living where power supply from the grid is limited can save an average of ₦54 ($0.15) per kWh while accessing additional benefits of reliable electricity service, a joint study by the Rocky Mountain Institute (RMI) and Energy Market and Rates Consultants (EMRC) have found. With the electricity grid covering about 50 percent of the country and many communities without power for long periods of time, these communities described as under grids abound in Nigeria and can benefit by augmenting grid supply from mini grids. This is also true in many parts of sub-Saharan Africa where hundreds of millions of people live “under the grid.” Such communities are within Distribution Company (DisCo) territory, but receive unreliable, inconsistent, and/or low-quality power that does not meet their needs—or they receive no power at all. These communities are thus undergrid yet also underserved. There are about as many undergrid customers as off-

grid customers in the world, with roughly 200 million households in each category. They face many of the same electrification challenges, especially around accessing the development benefits of electricity. However, governments and development partners tend not to focus on undergrid customers because, in theory, they already have at least nominal electricity access. But in a report titled ‘Under the Grid, improving the economics and reliability of rural electricity with undergrid minigrids’, the researchers found that undergrid minigrids have the potential to serve thousands of rural communities that are underserved and pay high costs for kerosene and diesel generation to supplement unreliable or unavailable grid power. “In a typical community, residential customers would save an average of ₦54 ($0.15) per kWh while accessing additional benefits of reliable electricity service. Across Nigeria, transitioning residential undergrid customers to minigrid service could yield₦60 billion ($170 million) in annual savings,” the report said. These communities also may prefer to be served by a minigrid since it can provide more reliable and higher-

quality service than the grid and can be less expensive and cleaner than alternatives. Winning model The report provides an indepth analysis of the various electricity service options available in Nigeria and their comparative advantages. In Nigeria, grid connection, petrol or diesel gensets, solar home systems, and minigrids are all in use and provide a range of available service levels. These can be differentiated by upfront cost, ongoing cost (experienced as a per-kWh tariff or daily fee), and reliability or availability; and customers can match their electricity needs with

the best suited option. For instance, solar home systems can be an effective resource where only a low level of service is required or there is low density of use. But while they offer a more affordable upfront cost, solar home systems are relatively expensive on a per-kWh basis and generally lack the capacity to power the productive-use machinery that drives local economies. Commercial customers require power that is predictable and stable and allows them to run equipment like welding or milling machines. Today, many of these customers rely on expensive energy alternatives such as

diesel generators to supplement their average two hours per day of grid power paying a blended average cost of electricity of approximately ₦185 ($0.53) per kWh.30 Consumers with petrol generators likely experience similar costs, and average community-wide costs are around ₦205 ($0.58) per kWh when alternatives including kerosene are accounted for. Conversely, in many underserved parts of Nigeria, minigrids can provide a costeffective, reliable alternative to today’s sources of power. The cost savings enabled through distribution sharing and economically active communities puts undergrid minigrid tariffs for least-cost

solar-diesel-battery systems at₦150 ($0.45) per kWh.xviii This is clearly within both Nigerian households’ and commercial customers’ ability to pay, since the average tariff of operational commercial minigrids, a t₦200 ($0.57) per kWh, has already proven to be competitive in communities throughout the country, the study finds. The report also find that customers in undergrid communities tend to have greater electricity demand than their counterparts in off-grid communities due to proximity to urban centres and high commercial productive use. “Minigrid implementation will generate savings for these commercial users, which can drive local economic growth and development. For example, the availability of reliable and affordable electricity has been shown to drive rural Nigerian entrepreneurs to invest in equipment, such as mills, that increase their economic productivity. “Job creation through entrepreneurial growth or with the minigrid company offers opportunities for local youth. Further, lower costs paired with local development and increased economic activity will reinforce the ability of customers to purchase power,” the report said.

Market

Greenlight Planet says it now powers over 2m Nigerian homes

reenlight Planet, a solar home energy products company, says it has successfully delivered clean energy access to more than two million individuals in Nigeria. The company in a release, said it was on a mission to power the lives of the underserved, Greenlight Planet began distributing Sun King[TM] products in the country in 2011 and has focused on rapid innovation in its product offerings and distribution strategy ever since. “Over the last 7 years, we have sold more than 500,000 life-changing Sun King[TM] solar solutions in Nigeria through strategic distribution partnerships and our own pay-as-you-go distribution channel” says Dhaval Radia,

Global Business Leader, Sun King. Radia further said, “Customers have been quick to

recognize that an investment in a Sun King[TM] product more than pays for itself over time, with several

customers experiencing dramatic improvements in household savings, increased productivity for

Analyst: Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378,

their small businesses and additional study-time for their children. The quality and reliability of Sun King[TM] solar home systems has helped us build a loyal customer base over time. While we are humbled by the warm acceptance of our products so far, for us this is just the beginning to reaching the 101 million individuals still living without basic access to electricity in Nigeria. To ensure that our products are made affordable to even the most cashconstrained households, we launched our pay-as-yougo distribution channel in early 2017.” Sun King products enabled with pay-as-you-go technology allow potential users with limited access to financing to pay for their product in small instalments

over time. With twenty-four flagship Sun King stores across twenty-three active states, and a large network of nearly 1,200 local sales agents including door-todoor sales channel is accelerating Greenlight Planet’s growth in Nigeria while also boosting employment opportunities within local communities, the company said. “Our vision is to establish a world-class distribution and energy financing ecosystem for the vast off-grid populations of rural Nigeria. With our rigorous efforts and continued innovation, our goal is to power 30 million lives by 2030 in Nigeria. As a company, we envision a world where access to clean, affordable energy allows every individual to truly achieve their human potential,” said Radia.

Graphics: Fifen Famous

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Friday 28 December 2018

INTERVIEW ‘Self-sufficiency in Nigeria’s food production starts by enabling farmers’ Jean Marc Ricca, is the managing director of BASF, West Africa. BASF one of the world’s leading chemical companies, brought together stakeholders in the food value chain in a workshop aimed at enhancing cooperation to address challenges in the food value chain. In this interview with Ifeoma Okeke, he speaks on how best to achieve sufficiency in food production in Nigeria. Food insecurity is a key challenge for Africa and for Nigeria and you have been able to penetrate the African market and gradually you’re entering into the Nigerian market. What are the opportunities for investments that you have seen in this market? e have a large number of touch points with the food value chain so to speak, almost from cargo to cargo all the way from seeds and the challenge of improving productivity upstream on crops. Then you have to check how you can reduce the amount of post-harvest losses. Take tomato as a prime example, 46% is wasted during transportation. This is the theme for today; we are trying to bring all those guys together on one single approach to food security. This is typically what an event like this one is all about. Here you have construction chemical people, insulation, packaging and laundry. They all get together because this is not something that we would solve, nobody can actually solve the problem. We need to team up, bring together all those stakeholders whether they be regulators, entrepreneurs, NGO’s or everybody who can have a valuable contribution to solving these problems. Does it translate into business opportunities for us? Of course it does, because we need to make money as a group so that the solution is sustainable. It’s not about using money to try to solve it; that would not bring us anywhere because the day there’s no money, nothing happens so we need to create models and value at a very local level.

try to fully achieve self-sufficiency in food production in Nigeria? I think we need to bring together all those stakeholders, private sectors, regulators, government. My experience shows that going micro on small pilot projects, teaming up with one community, one crop is the right thing to do because I don’t see food security as a kind of one size fits all solution. It starts really by enabling the farmers.

Can you give an insight on the focus of the Food Innovation Cluster Workshop? The event brings together multiple stakeholders so that they don’t take connectivity for granted. Having the National Agency for Food and Drug Administration and Control (NAFDAC) talking to us and the operators as well as brainstorming together could actually add great impact. I would expect concrete measures or proposal in the cold chain space particularly for Lagos State because we have big needs here. I would look at the area of food fortification, gladly NAFDAC is here and questions to ask will include how do we work together to ensure compliance? How do we raise the standards in terms of harmonizing the quality of the products out there? The beauty is that it brings together all our businesses, we have people from all over the place.

Jean Marc Ricca

How can you explain food fortification, food innovation cluster and the social case? First of all, we measure our successes in total value to the society. When we put forward a business case which is a project and we would assess the project to see if it is worth the money that we are going to spend driving it. We also measure what our contribution to society is. Here in Nigeria, it is very straight forward; it is about how many jobs you create. It is not necessarily the job that I create but the job that I could create upstream. It the recycling space, you can create a large number of jobs. You may think that they are low tech jobs but yes, they are jobs in some communities that are really helpful. Or you can create jobs downstream by enabling your customers to run his own business. To make it also specific, when we sell one to one of our customers, the customer usually sells 10. It’s a kind of a multiplying impact and food fortification is a prime example. Without vitamin A, you have no food fortification, so we enable this and after that, there is a subsequent impact that you measure in terms of money, in terms of impact on society and the least impact on environment as possible. What about the social case and the innovation cluster? I don’t have the numbers so I don’t want to speculate but how many

lives do we improve because we enable people to put vitamins in oil, in sugar and in flour. How many young kids feed better because there are vitamins in their staple food? There must be a number on how many lives you save. I think there is a direct impact on society in that particular case. What has been the key driver for you in business that has helped you deepen market penetration in Nigeria? In an environment like this, you need to have the best people in the industry. You need to find them, grow them and keep them. That again is not lip service, it is real. Yes, we are driving our local production forward but we still as a country heavily rely on import and moving products across border is an absolute nightmare. I am not blaming anyone because we are all part of the problem but going to Lagos port is a real challenge and there is a lot more that we could do if we didn’t have to spend so much time, energy and money in just crossing what is in many countries a no brainer. It is not ease for doing business; it’s really all the infrastructure on business which should be improved. It takes everyone, we always put the blame on government, government may help a lot but everyone has to do this; private sectors, regulators, customs, everyone has to start pushing in the right direction.

How do you contribute to the UN SDGs in terms of food sustainability? This is driven in group level, direct contribution and when we talk about total value to the society, if you go on our website there is an index where we mention everything from an environmental, social and economic standpoint. The SDGs in a project like this one you create jobs and many impacts on SDGs that you have. We try to consider that it’s not to look from a total company standpoint; we track all the projects according to the certain structures. Nigeria’s population is expected to trigger by the year 2030, what’s the way out of food insecurity? There are several ways, one we need to grow the agricultural sector and we need to ensure that farmers have the right tools, technologies and products to maximize their yields. There is a massive improvement that we can do upstream. I have seen the postharvest losses, it is a key area where we are already very involved but it is a multi-stakeholder project. We need to build cold room capacities. We are talking about millions of cubic meters which has to be put on the ground so that from the transportation storage upstream the farmers have access directly to cool storage. The food processing area also needs to be developed, retail is not yet developed. What other measures do you advise that we can tap into as a coun-

What kind of partnerships are you creating with the local farmers to improve food sufficiency and what’s your assessment of Nigeria’s agricultural sector? We are highly collaborative and we know that success will come on the condition that everyone having something to bring to the party should team up. Today is a prime example, so we are very active in bringing people together on agriculture alliance and this type of initiatives. One of the particularities which is not unique to Nigeria, same in many countries in Africa and Asia is that we are dealing with a large number of small farmers. So they don’t have the scale, the financial ability to buy proper products to support them, they don’t even have the knowledge on how to use whatever product they would buy. We are training thousands of famers everyday just to step up safety and maximizing the use of the product. The other area where I see there is a massive gap is coaching. Today farmers can produce a large number of tomatoes but if they don’t reach the consumers then what’s the point? I think there is a huge effort for every one of us starting from retail to company, like us who make insulation foams who can be helping in building your cold room to operators to farmers upstream getting all together. I am a very strong believer that we need to do that at local level as the problem of the farmer in Zaria is different from the one in Gombe. This is the second workshop you are holding, going forward would it be a monthly, quarterly or a yearly event? It is every day, look at it as a kick off meeting the way the day is structured, after the first session they should and they will come up with actions, concepts, projects and it is the responsibility of the local organisation here to bring that to life. Then there is the monthly or quarterly follow up for selecting what could be the low ending fruit and if there is space for doing a project with multi stakeholders.

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Revamping work environment for creativity, engagement, value creation For most companies today, beyond the objective of staying profitable, the office space is now being seen as a significant factor in recruiting, maintaining and maximizing talents. KELECHI EWUZIE examines how Renmoney’s new corporate headquarters is not only a fantastic place to work, but also enhances employees’ well-being, creativity and engagement.

well-designed office environment, no doubt, can either make or mar a team’s productivity, as studies have shown that great offices can actually improve overall productivity. This explains the current trend of making office spaces look ‘cool’ as seen among Nigerian tech companies. These tech companies champion the cause of converting partitioned offices and cubicles into workspaces to catch the attention of visitors and also give employees the needed aesthetically-appealing work environments. Renmoney, a Nigerian consumer lending financial technology company, has recently joined the league of tech companies that have reshaped their workplaces to give both employees and customers the desired creative and appealing look. Its new corporate headquarters is now lit with bright colours and creative designs aimed at making the work environment more fun and exciting for employees. Renmoney used to occupy a 4-storey building in Ikoyi but the former office presented its own challenges, said Tobi Boshoro, the company’s Chief Executive Officer. Part of the challenges, she said, was that many employees could work for long periods of time without meeting other employees, thereby hindering collaboration, which is what the new office is aimed at addressing. The new office, located at the Ikoyi business district has two floors, and this time around, the tech company adopted the widely acceptable open workspace environment which

is aimed at stimulating collaboration among workers. It was built without cubicles and departments can easily interface with each other. This has made it difficult, if not impossible, for employees to go long periods of time without seeing one another. One of the important features of the new Renmoney office is that it has different meeting rooms that have been named according to the values that matter to the company namely: Integrity, Innovation, Service and Excellence. Interestingly, another fascinating sight to behold is the presence of a train inside the office. Tobi, who described this as a real train that

was salvaged, said: “The train is an area where our employees can take a break from work activities in order to relax. It is also a place where formal and informal meetings can take place. The coaches can also serve as temporary work areas for our staff who want to leave their desks and work on the train for a while.” An inscription on the train reads ‘we are on the move’, which Tobi says represents the company’s penchant for innovation and transformation, geared towards maximum customer and employee satisfaction. She added that every design in the new office was carefully crafted to reflect the Renmoney vibe and what the company stands for.

Reiterating that customer convenience was at the core of the company’s operations, Tobi said customer comfort remains paramount when taking decisions on designs and processes. “We want our customers to be comfortable should they visit our office for transactions; or engage with us through our online platforms. We are against the notion of making our customers feel like we are doing them a favour. They are the reason we are in business so we place a high value on their satisfaction. On Renmoney’s prioritisation of customer satisfaction, Tobi stated: “We commissioned a research this year to find out what people consider the most when they taking a loan. Close to 80 per cent of the respondents opted to patronize Renmoney due to speed, convenience and ease of access. So, knowing that our customers’ desire comfort and promptness in service delivery resulted in the design of an innovative and cozy workspace.” Renmoney’s penchant for pursuing customer satisfaction is reflected in the hall, dedicated to attending to customers’ needs. The office design departs from the conventional sterile working environments of a typical financial institution, resulting in a unique ambience for employees and clients alike. The customer booths are designed to protect the customer’s privacy as they are being attended to by the company’s staff. Tobi however said the aim was to reduce customer interface to the barest minimum. She said: “We leverage data and technology to simplify our processes and improve efficiency. We are con-

stantly building simple solutions to drive financial inclusion and this is what being a financial technology (fintech) company is about. We have a great customer feedback mechanism. We engage our customers and we use their responses and feedback to improve on our processes and services. Our main driver is offering convenience to our customers.” On what distinguishes the new Renmoney workplace, Tobi said: “Everything we do is geared towards fostering collaboration and innovation. We want to make getting a loan simple and stress free for our customers. And we understand that to deliver the best of services to our customers, we need to invest in our people so that they can perform optimally. We are deliberate about investing in our employees to get them to be the best versions of themselves. We have a great team who are technologically savvy. The employees are also highly motivated. Let me also mention that we have a unique office culture that fosters interactivity and stimulates employees to perform optimally.” The welfare of employees and visitors are not taken for granted, which is evident in the health, safety and environmental policies and procedures instituted by the company’s management. For instance, employees are not allowed to work if they exhibit the slightest symptoms of any form of ailment. Safety processes are also written around the office to intimate employees and visitors on safety measures. Fire marshals are also present in the building and they carry out periodic fire drills. The financial technology company has also instituted security measures for the safety of the occupants of the building – both visitors and employees alike The new Renmoney office was designed by Spacefinish, an innovative interior designs company. Spacefinish is known for its ground-breaking designs for some companies in Nigeria’s technology ecosystem. Its roll call of office designs includes: Andela, Google Nigeria and the Venture Garden Group. Perhaps, in the coming year, the company’s figures will reflect the extent to which its new office has impacted positively on both its employees and customers. There is however no doubt that this technology company designed its new office to bear semblance to a home away from home for its employees. In the coming years, the office may transform into a location where people work and actually enjoy doing so.

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Where banks dread to thread At the mention of agriculture, the big, confident commercial banks become deflated, as though they are being asked to bet on a venture doomed to fail. Despite the enormous potentials and requirements for food production in Nigeria, millions of smallholder farmers continue to struggle for funds, which banks are not willing to provide. Now, technology start-ups run by young individuals are gradually giving thousands of farmers a new lease of life, one project at a time. In a matter of time, they may get to actually teach the banks ‘how to make money and impact in one breath’, writes CALEB OJEWALE.

unji Olanipekun has been a farmer all his life. Now 56 years old, he is four years from clocking the average age of most Nigerian farmers who are now getting too old for the tedious, manual way of farming in Nigeria. The rigour of farming is not what really bothers Tunji, and left to him he would “continue farming for another 50 years if it was worth it, and has the strength.” His biggest worry, and perhaps, life-long regret is as he says “having little or nothing to show for over 40 years of farming,” having taken up the profession after his primary education. Like millions of other smallholder farmers across Africa, Tunji has remained a largely subsistent farmer, only able to cultivate about 5 hectares of land. Even though this is a progress of 4 and half hectares from what he inherited from his father, he still essentially has to live from hand to mouth, especially with a large family. He would not disclose how many children he has saying in his place, it is “a taboo to count how many children one has”. What is obvious however is that, like millions of farmers across Nigeria (like the rest of Africa), Tunji is trapped in an unending cycle of poverty. In Nigeria, more than 80 percent of farmers are smallholders, accounting for 90 percent of local food production. Improving their productivity in terms of land under cultivation, mechanisation, and even input supplies has been a challenge yet to get a solution. Governments have found it an easy campaign pledge, but not much has been achieved, and the

banks to avoid lending to primary producers. Not just smallholder farmers, but even those with sizeable land holdings have difficulty getting finance from the banks. For the commercial banks, it would appear financing agriculture is simply not worth their time, yet, Nigeria has a $5 billion food import bill, which shows enormous potentials for revenue i f l o c a l p ro d u c t i o n i s supported.

banks really do not want to touch it, not even with the longest pole. “When a farmer for instance wants to borrow N200,000, the amount of effort I put in as a banker, is probably the same as putting effort in a N10 million facility. Now, with a farmer borrowing N200,000, the interest I get from that loan, might not even be able to cover the monetary cost for going to look at their project,” said Kudzai Gumunyu, divisional head, Agricultural Business Finance at FCMB when asked why banks are not doing much in agricultural finance. Even though his statement may sound cynical to some people, his bank, FCMB, is even reputed to support agricultural finance more than many of its peers. For others like G u a ra n t y T r u s t B a n k , Nigeria’s biggest bank by market capitalisation, big, multinational players like TGI, Olam, Flour Mills of Niger ia, are ‘better customers’ the bank is comfortable dealing with. This is at least, according to views expressed by George

Uwakwe, chief risk officer of GTB. Data from the National Bureau of Statistics (NBS) on Banking Sector credit to the private sector shows that between 2015 and 2017, Agriculture got an average of 3.36 percent of total credit. Agriculture got 3.54 percent of bank credit in 2015, and in 2016, decreased when it got 3.26 percent. However, in 2017 lending to agriculture increased marginally to an average of 3.29 percent for

the year. Still, these facilities mostly go to the ‘big corporate entities’ while the millions of smallholder farmers are left grappling for funds to survive. Ironically, the big companies that get the bank finance have to rely on importation of raw materials for their operations to run, because of acute shortages in local production. The argument that agriculture is risky has been the reason given by

A radical fix in the horizon The problem of access to finance in agriculture, at least for smallholder farmers now appears to be getting a radical fix through a new breed of mostly technology startups that are revolutionising agricultural finance; helping farmers remain productive, and in many cases, scaling up their production. The platforms have so far offered Nigerians with disposable income and considerable appetite for risk, with an alternative investment vehicle, in this

case agriculture, which many people are interested in, but often unable to venture into directly. Aggregating response from at least three of the platforms, over 30,000 smallholder farmers have been reached in the last two years, a figure doubtful any Nigerian bank can claim it has matched directly. The best part, perhaps, is that when annualised, investors on these platforms get much higher returns than current Fixed Deposit and Fixed Income rates. T h e s e p l at f o r m s o f f e r returns varying from six percent in four months, to as high as 35 percent in 7 months. The returns vary by platform, with some offering better returns than others, which is also a function of the particular farm type being put up for sponsorship. There are currently five known platforms offering these services, with varying levels of confidence and trustworthiness; Farmcrowdy, Thrive Agric, Growsel, Agropartneships, and Porkmoney. All were contacted with questions, but only Far mcrow dy, Thrive Agric, and Growsel could respond in validating their operations. Fa r m c r o w d y i n a n emailed response, exclusively revealed it has so far raised and disbursed about $6million (N2.1 billion) into a combined 8,500 acres of farm cultivation across 10 states in Nigeria, raising over 1.2 million chickens, and reaching 8,000 small-scale farmers. The company said this has been achieved through funding for Rice (Two cycles); Maize (Two cycles); Continues on page 33

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Where banks dread... Continued from page 32

Soya beans (One cycle); Cassava (Two cycles); and Poultry/Broilers (13 cycles). Thrive Agric on its part, said since inception, it has launched six farm cycles, reaching over 10,000 farmers who have received funding of ab out $2.5 million (N900 million). Growsel did not indicate a cumulative sum, but stated it has been able to raise funds ranging from $500 to $1,200 (N180,000 to N432,000) per farm in five different farm cycles covering; rice, soybean, maize, tomato and cassava. “We are working with over 12,000 smallholder farmers, with about 1 . 2 m i l l i o n re g i s t e re d smallholder farmers undergoing screening and verification across different locations,” read a portion of Growsel’s response. These platforms work by identifying farm projects in different lo calities, estimating what the production process will cost, from land preparation, inputs, and up to harvesting. This way, smallholder farmers are able to run through a production cycle with all costs covered, and all farmers have to do is focus on being productive. Farms identified for a particular crop production cycle are grouped as a single project, then put up on the website of any of the crowd funding platforms, where members of the public can finance the production cycle. For instance, a maize farm project could be put up on any of these platforms at a sponsorship cost of N70,000 per unit, with 1,000 units of such available. This will often be 1,000 hectares of land and equivalent to at least 1,000 farmers, but usually more. The sum per unit will cover the cost of the entire production cycle up to harvest. Harvesting and sale is handled by the platform, which had put the farms up for sponsorship, and profit sharing is done. Most of the platforms claim this is done in 40:40:20 ratios, where the farmers get 40 percent, farm sponsors (i.e. investors) also get 40 percent, and the remaining 20 percent goes to the platform. While the final payouts cannot be ascertained, as a function of this ratio, what is clear is that; for any given farm, it is indicated upfront what will be paid back to farm sponsors as interest after a stipulated period of time. In this maize cycle for instance, it may have been

indicated upfront to return 15 percent of whatever an individual invests. What is not clear is whether this actually translates to 40 percent of profit. In August, a trip to Lade, a community in Patigi Local Government area of Kwara state, was an opportunity to meet some of 800 farmers cultivating 2,000 acres of rice. The four-hour drive from Ilorin on a bumpy ro a d t o L a d e, w a s a n opportunity to meet farmers who for the first time in many years, were getting an opportunity to increase their productivity. These farmers, were beneficiaries of a fund raising round where each unit cost N90,000 and 2,500 units were sold out in about one month. In essence, N225 million was raised to support the rice production in Lade. This particular project was promoted by Farmcrowdy, and without such a platform, the farmers never would have been able to raise an equal amount of money to scale their production to its current state. The motivation for farm sponsors Felicia Ojo, a female banker in Lagos tried to start a farm some years ago in Iwo, Osun state. The locals as she said, frustrated her efforts and she ran back to Lagos. Years later, she found another importunity to invest in agriculture, this time, through crowd funding platforms. The bank where she works may find it difficult lending to farmers, but she has found a way of committing some of her own idle funds into agricultural investments. “I was looking for an

investment opportunity as a retired professional, and I found digital farming investment offered good returns over the secured Fixed Deposits and Treasury Bills,” said Amechi Ebeledike, a retiree in Lagos, who has invested with Farmcrowdy and Thrive Agric. Ebeledike further said he “had fears and worries because of obvious reasons. Gradually confidence began to grow, but I still have reservations about activities of some outfits (especially those outside Lagos), hence not being able to invest freely but with extreme care and caution. No doubt I had and still have my fears about sustained success, hence I do close monitoring and continuous due diligence.” Findings revealed farmers are not necessarily handed cash. Instead, these platforms procure farm inputs such as seeds and fertilisers required for any specific farm project, finance the cost of whatever machinery requirements such as land clearing, and the only cash provided is for labour and other small costs that are a small fraction of the overall sum. This, it was gathered, is done to prevent farmers from using what should have been capital for their farm, to finance other non-agribusiness related activities. Eugene Nwachukwu, who describes himself as an IT professional with a Bank in Lagos, is also an investor with both Farmcrowdy and Thrive Agric. He said his decision to invest in agriculture through these platforms was borne out of belief in the people behind them, and “an investment opportunity that surpasses

the returns on Treasury bill.” With personal interests in agriculture, Nwachukwu also described it as an opportunity to learn the process of farming successfully. “You can learn only if you have made some commitment,” he said Even though these platforms appear to be making considerable impact in agric finance, some reservations have been made on the possible need for regulation. Nwachukwu expressed the view that while they are truly offering an alternative for investors, there is lack of regulation. “At least I am not aware of the form of regulation the y are subjected to,” he said. T h e v i e w re s o nat e s concerns of some people, who are wary of committing their funds to these companies. A contrar y school of thought however suggests any attempt at regulation could go “the N i g e r i a n w a y ”, w h i c h would stifle them out of operations, which has so far been successful. Farmcrowdy and Thrive A g r i c h av e e s p e c i a l l y received a boost in public confidence after Yemi Osinbajo, Nigeria’s Vice President visited both businesses at different times, and reported to have made some investments with at least one of the platforms. It was also gathered that most of the platforms secure insurance for their farm projects, but in unforeseen events, this only covers the principal. Either of Leadway Assurance and the Nigerian Agricultural Insurance Corporation are listed on different platforms as the entity

offering insurance. Also, there are options for farm visits for those who want to ascertain the reality of investments made. “Up till this moment, I could not care less if any farm existed or not as long as my money is returned. But now, I know it is actually real,” said a female banker with one of Nigeria’s old generations banks after going on a farm tour organised by Farmcrowdy. A viable alternative for the future of agric finance On another trip to Lade, this reporter met Ibrahim Zhistu, who says he was one of 800 farmers who benefited from a funding round for their rice production. Asked what his experience was, his face beamed into a big smile as he said in Pidgin English, ‘those people really tried for us.’ Personally, he says he got N500,000 after the production cycle, a sum he never would have imagined in the past, even after toiling to get his own funds to push through the farm cycle. Zhistu who said he is known by the nickname ‘One Way’ in the community, like millions of farmers, earnestly yearn for such opportunities not to come ‘once in a lifetime’, but made a regular activity they can count on in order to expand productivity. Also, if farmers like Tunji had access to such crowdfunding opportunities, perhaps, after 40 years of farming, he would not only be living comfortably with his family, but also could have significantly increased his land cultivation. Since banks

do not have the confidence to lend millions of farmers like him the much-needed capital to finance farm cycles (and possible expansions), crowd funding could liberate him and other farmers like him from poverty. The Central Bank of Nigeria estimates exposure to the oil and gas sector by commercial banks is about 40 percent of loan portfolio. The Financial Times on its part, reported that if the “entire upstream, midstream and downstream operations and supply chain were added together, analysts estimate oil and gas lending would make up as much as half of banks’ loan books.” Ironically, while the Non-Performing Loans (NPLs) in Oil and Gas, a favourite of Nigerian commercial banks, has soiled the books of many of such banks, the dirtassociated agriculture has even by the confession of a number of bank executives, maintained one of the lowest rates in default. The CBN monetary policy committee had in a communiqué, said it was “concerned with the rising level of NPLs in the banking system, traced mainly to the oil sector”. Yet, agriculture, which continues to be described as ‘the future’, is continually stifled to death, while Crude Oil that should ‘be the past’, at least going by government economic diversification rhetoric, continues to enjoy more bank patronage. Commercial bank loans not only come at very high interest rates that are not feasible for most agribusinesses (and especially farmers), but even getting the loans at all, comes with great efforts. It is no small feat getting these costly loans, even when by some stroke of luck it is successful. While banks hold back and describe agriculture as too risky, crowdfunding platforms with the use of technology are finally providing a new lease of life to millions of farmers across Nigeria, and w ith consistenc y, the cycle of poverty may finally be brought to an e n d . S i m i l a r (c r o w d funding) models exist in some African countries, and with concerted efforts, it can become a tool to solve the problem of access to finance confronting millions of farmers across the continent.

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Friday 28 December 2018

Sports

Modric beats Djokovic to win athlete of the year award Stories by Anthony Nlebem

roatia captain Luka Modric was named Balkan Athlete of the Year, becoming the second soccer player to scoop the prize after Bulgaria’s former European Footballer of the Year Hristo Stoichkov in 1994. Ballon d’Or winner Modric won the Champions League and the FIFA Club World Cup with his Spanish club Real Madrid as well as being instrumental in helping Croatia reach the FIFA World Cup final in Russia. He was awarded the tournament’s Golden Ball Award. The 33-year-old, who received 75 points in the 46th poll, organised by Bulgarian News Agency (BTA), beat Serbia’s world number one tennis player Novak Djokovic, who topped the annual poll five times in a row between 2011 and 2015. Another tennis player, Romania’s Simona Halep, who finished the year as women’s world number one for the second consecutive season, came third in the poll, which is conducted by the state-run news agencies in nine Balkan countries.

Serena wins fifth AP female athlete of the year award

reatness is always expected of Serena Williams, one of this generation’s greatest athletes. In 2018, she had moments of greatness with two appearances in Grand Slam finals, although neither came with a championship. Still, it was one of Williams’

most remarkable years of her remarkable career because of what she overcame. Coming off the birth of her first child, Alexis Olympia Ohanian Jr., Williams returned to near-peak form incredibly quickly. For overcoming such adversity, Williams was named The Associ-

ated Press Female Athlete of the Year for the fifth time on Wednesday. Having previously won in 2002, 2009, 2013 and 2015, Williams only trails Babe Didrikson Zaharias for most titles (six). Williams received 93 votes from editors and news directors around the U.S., edging out gymnast Simone Biles (68). The rest of the top five included Notre Dame basketball player Arike Ogunbowale, snowboarder Chloe Kim and 2017 winner and swimmer Katie Ledecky. The Male Athlete of the Year will be announced Thursday. After giving birth to her daughter in September 2017, Williams developed blood clots, which required four surgeries. She returned to the World Tennis Association in March and played in a two events before the French Open. At the start of the tournament, Williams wore a form-fitting black catsuit, which she said she wore for health reasons. The suit would later be banned from the tournament, and Williams eventually had to withdraw because of a right pectoral injury. Williams returned in time for the Wimbledon, where she finished runner-up to Angelique Kerber. Williams once again finished in second to close the year, this time losing to Naomi Osaka at the U.S. Open. With 23 career Grand Slam titles, she remains just one shy of Margaret Court’s record of 24.

Federer eyes successful 2019 F1 season

wenty-time Grand Slam winner Roger Federer says that his ‘intense’ off season has prepared him ideally for a successful 2019, beginning with the defense of his Australian Open title in January. The 37-year-old Swiss, considered by many as one of the greatest players in the sport’s history, will be hoping to earn his third straight singles title at the event after winning his 20th Grand Slam in Melbourne in early 2018. Federer is currently ranked as the third best player in the world but is aware that his advancing years will make competing against the new generation of tennis stars increasingly difficult. “I think with my age people know that if I did something extraordinary that would be amazing,” Federer said. “If that didn’t happen, maybe it’s logical you can’t produce that tennis every year. You also maybe need a bit of luck, and the draw to fall your way. “A lot of things need to happen to win any slam. I hope that again it will be the start of a great season for me because the last two seasons have been crazy good for me.” A defeat to Alexander Zverev in the ATP semi-finals has left Federer still chasing his 100th career title but he maintains that the work he has put in in training in recent weeks and months have left him ideally placed to make a seismic impact

next year. “I’ve been very happy with how the off-season went,” he said. “The last three or four weeks have been very intense. I’m very excited and motivated for this next season.” Another source of motivation cited by Federer is the upcoming mixed doubles match opposite 23time Grand Slam winner Serena Williams in the Hopman Cup. “We’ll probably play it down a little bit and say it’s not that big of a deal for us, it’s just another tennis match, but it really isn’t because it’s probably going to happen once and never again,” he added. “That’s why I hope we’re both going to be injury free when that day comes around.”

Serena welcomes rule changes to protect mothers

erena Williams has hailed the change to the ‘Special Ranking’ rule for the 2019 season by the WTA which will allow players to take a break from the sport in case of pregnancy and earn special seedings in tournaments. Former World No. 1 called the decision “great” and reckons the move will encourage more players to take a break from the tour to have children and then resume resume their careers. As per new rules, returning mothers who have a special ranking would get a seeded position and can be drawn as an ‘additional seed’ at tournaments, meaning they would not have to face a seed in the opening round of a tournament. The change also means no seed will get bumped as a result of a returning mother given a protected seeding. Williams and other mothers on the tour such as former world number one Victoria Azarenka, had been pushing for such rule changes that would ease the transition back for women following birth of their children. “I think it’s great,” Williams said of the new rule changes during a press conference in Abu Dhabi ahead of an exhibition match against sister Venus on Thursday. “Women that are younger can go out there and have kids and not have to worry about it and not have to wait ’til the twilight of their years to have children and I think it’s a really great rule.” Serena, 37, became mother to daughter Alexis Olympia in September 2017 and returned to the circuit last March at Indian Wells. “I think

having gone through the experience myself really opened my eyes up to me and, ‘Would have I done it sooner had there been different rule changes?’ I don’t know. But now that there is an opportunity, people don’t have to ask that question anymore,” added Williams, who is now ranked 16 in the world. “I think it’s a great rule change. I think it is a lot. But I feel like it’s just something that’s always going to be there and be special and ‘?m happy that they did it.” The exhibition tournament in Abu Dhabi will be Williams’ first on-court appearance since she lost the US Open final to Naomi Osaka in September in controversial manner. In the final, Serena had an outburst aimed at chair umpire Carlos Ramos, whom she accused of sexism. “I’m feeling good. I’ve been training for a couple of months now and I’m getting ready for the new year,” the 23-time Grand Slam champion said in the UAE capital.

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NEWS

Cholera, cerebrospinal meningitis outbreak records ANTHONIA OBOKOH

igeria Centre for Disease Control (NCDC) has confirmed in its recent weekly epidemiology report that cholera, cerebrospinal meningitis outbreak records highest death among others in 2018. The report, released yesterday, shows that cholera outbreak between week 1 and 49 (2018) confirmed 1,135 deaths (CFR, 2.3%) and 50,500 suspected cases with 934 laboratory confirmed from 244 local government areas in 30 states were reported compared with 3,695 suspected cases and 84 deaths (CFR, 2.3%) from 73 LGAs in 19 states during the same period in 2017. The report states that cerebrospinal meningitis (CSM) confirmed that between weeks 1 and 49 (2018), 4,464 suspected meningitis cases with 318 laboratory confirmed and 360 deaths (CFR, 8.1%) from 299 LGAs (35 states) were reported compared with 9,939 suspected cases and 607 deaths (CFR,

6.1%) from 326 LGAs in 34 states during the same period in 2017. Other outbreaks including Lassa fever, measles, and yellow fever were also reported. The continued spread of these outbreaks across the country is due to suboptimal vaccination coverage in many Nigerian states of all cases reported with known vaccination status. However, vaccination coverage is still too low in some states in the country to reach elimination, with the latest available figures on coverage, especially the cholera outbreak. “Nigeria is currently the most impacted country with some 90 percent of cholera cases, says the United Nations Children’s Fund (UNICEF). Cholera is a serious bacterial infection that causes severe watery diarrhoea and stomach cramps that can lead to dehydration and even death. Chikwe Ihekweazu, CEO, NCDC, said, “Cholera cases are being treated at designated treatment centres in affected States. “We have ramped up our risk communications campaign

so that people are better aware of the risk factors and ways to prevent cholera outbreaks. “We are also strengthening the disease surveillance and laboratory systems so that cases are reported early, detected in time and response measures initiated.” Recently, Zambia, Uganda, Malawi, South Sudan and Nigeria benefited from Africa’s largest cholera vaccination drive in history with more than two million people across the continent set to receive oral cholera vaccines (OCV) funded by Gavi, the Vaccine Alliance. However, public health experts have harped on the need to check and invest heavily in tackling disease outbreaks, stressing that Nigeria must do more to improve the country’s infrastructure, logistics, commodities, technology, human resource and communication. Muntaqa Umar-Sadiq, CEO, Private Sector Health Alliance of Nigeria (PHN), said Nigeria’s epidemic preparedness and response capacity highlight six priority gaps required to enhance detection, prevention and management of an outbreak.

Experts seek immediate disbursement of over $100m CVFF fund to grow GDP … worry over poor contribution of maritime sector to GDP AMAKA ANAGOR-EWUZIE

orried by noncapturing of the maritime sector in the nation’s Gross Domestic Product (GDP), experts in the nation’s shipping business have called on the Federal Government to urgently disburse the millions of dollars accumulated in the Cabotage Vessel Finance Fund (CVFF) for the development of the maritime sector. According to them, the country can only harness her huge maritime potential if government administers the CVFF funds for ship acquisition in order to address issues around shipping development in Nigeria. Frank Ojadi, a lecturer at Lagos Business School (LBS), said at a dinner/annual Nigerian Maritime Award (ANMA) organised by the Shipping Correspondents Association of Nigeria (SCAN) held in Lagos, recently, that the Nigerian maritime sector was weak and might not be able to compete favourably with its contemporaries around the world. “It is difficult to pin down what the Nigerian Maritime industry contributes to the

Nigerian GDP and this is because 80 to 90 percent of vessels that come into the country are foreign vessels,” Ojadi said. Continuing, he said: “The foreign vessels owners’ repatriate the profit accrued from the shipping business in Nigeria to their various countries thereby making it difficult for Nigeria to retain the money in the economy.” He stated further that the Maritime University Okerenkoko should be pursued and actualised for training and building of capacity in the maritime industry. “Training vessels should be provided for the training of seafarers. In his view, Greg Ogbeifun, president of the Ship Owners Association of Nigeria (SOAN), who estimated that about $2 billion was believed to have accumulated in CVFF since 2004, added that the disbursement of the fund will enable the country to tap into the capacity of shipping to grow the GDP. He said that proper management of the maritime industry would assist the Federal Government to encourage diversification from oil to non-oil revenue. Ogbeifun pointed that the essence of CVFF, which

was generated from two percent freight earnings of ship owners engaged in coastal shipping services, was to enable local ship owners have access to funds at a single digit interest rate. Ogbeifun said there was need for acquisition of more tankers and dry cargo vessels through the CVFF to create more jobs for youths and enable indigenous shipping operators to charter vessels in Nigeria rather than from London. “We ship owners must ensure that we are eligible to access the fund. We need to look at our processes and system to ensure they meet the requirements. Nigerian ship owners must focus on owning ships now,’’ he said.

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Friday 28 December 2018

Prices for Securities Traded as of Thursday 27 December 2017 Company

Market cap(nm)

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Volume

Company

Market cap(nm)

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PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 202,495.80 7.00 -2.78 300 30,414,804 UNITED BANK FOR AFRICA PLC 273,595.37 8.00 -0.62 103 6,729,861 ZENITH BANK PLC 731,538.31 23.30 1.30 274 27,934,160 677 65,078,825 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 294,341.40 8.20 -4.65 174 10,301,991 174 10,301,991 851 75,380,816 BUILDING MATERIALS DANGOTE CEMENT PLC 3,198,503.24 187.70 -3.25 64 379,271 LAFARGE AFRICA PLC. 108,417.85 12.50 - 71 390,202 135 769,473 135 769,473 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 378,311.01 642.90 - 3 5,008 3 5,008 3 5,008 989 76,155,297 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 17,610.58 6.60 - 1 1,000 1 1,000 1 1,000 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 1 1,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 1 7,500 OKOMU OIL PALM PLC. 72,687.94 76.20 - 5 30,000 PRESCO PLC 62,150.00 62.15 - 6 7,543 12 45,043 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,560.00 0.52 - 8 73,075 8 73,075 20 118,118 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 714.77 0.27 - 1 3,000 JOHN HOLT PLC. 171.23 0.44 - 4 4,818 S C O A NIG. PLC. 1,903.99 2.93 - 1 308 TRANSNATIONAL CORPORATION OF NIGERIA PLC 54,468.31 1.34 9.84 182 37,501,136 U A C N PLC. 31,118.00 10.80 -10.00 34 984,096 222 38,493,358 222 38,493,358 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION 26,532.00 20.10 - 4 14,063 JULIUS BERGER NIG. PLC. 165.00 6.60 - 0 0 ROADS NIG PLC. 4 14,063 REAL ESTATE DEVELOPMENT 4,521.21 1.74 - 4 42,034 UACN PROPERTY DEVELOPMENT COMPANY PLC 4 42,034 8 56,097 954.53 0.20 - 0 0 AUTOMOBILES/AUTO PARTS 0 0 DN TYRE & RUBBER PLC 12,918.67 1.65 - 7 138,943 BEVERAGES--BREWERS/DISTILLERS 242.22 0.89 - 0 0 CHAMPION BREW. PLC. 157,707.56 72.00 - 18 27,548 GOLDEN GUINEA BREW. PLC. 262,173.79 30.50 - 10 75,039 GUINNESS NIG PLC 659,744.42 82.50 0.49 162 2,595,332 INTERNATIONAL BREWERIES PLC. 197 2,836,862 NIGERIAN BREW. PLC. 34,500.00 6.90 -0.72 40 741,802 FOOD PRODUCTS 184,200.00 15.35 -0.32 45 1,622,724 DANGOTE FLOUR MILLS PLC 86,518.01 21.10 -2.09 59 2,928,511 DANGOTE SUGAR REFINERY PLC 10,547.16 1.33 0.76 75 3,696,694 FLOUR MILLS NIG. PLC. 1,340.10 0.36 - 0 0 HONEYWELL FLOUR MILL PLC 855.36 4.80 - 0 0 MULTI-TREX INTEGRATED FOODS PLC 47,689.89 18.00 1.41 16 227,688 N NIG. FLOUR MILLS PLC. 3,676.41 13.45 - 0 0 NASCON ALLIED INDUSTRIES PLC 235 9,217,419 UNION DICON SALT PLC. 18,782.02 10.00 - 16 86,415 FOOD PRODUCTS--DIVERSIFIED 1,281,804.43 1,617.10 - 21 5,739 CADBURY NIGERIA PLC. 37 92,154 NESTLE NIGERIA PLC. 1,680.31 22.10 - 0 0 HOUSEHOLD DURABLES 4,169.48 4.00 - 13 29,801 NIGERIAN ENAMELWARE PLC. 13 29,801 VITAFOAM NIG PLC. 43,675.25 11.00 - 13 72,303 PERSONAL/HOUSEHOLD PRODUCTS 212,565.20 37.00 - 18 147,820 P Z CUSSONS NIGERIA PLC. 31 220,123 UNILEVER NIGERIA PLC. 513 12,396,359 41,920.30 1.81 9.70 12 724,474 BANKING 256,893.72 14.00 -1.75 45 1,053,241 DIAMOND BANK PLC 59,108.59 2.04 4.62 171 30,716,433 ECOBANK TRANSNATIONAL INCORPORATED 1,012,432.57 34.40 0.29 161 10,049,878 FIDELITY BANK PLC 15,321.41 0.52 4.00 16 1,825,904 GUARANTY TRUST BANK PLC. 10,687.83 0.77 - 0 0 JAIZ BANK PLC 52,398.56 1.82 - 10 181,348 SKYE BANK PLC 163,076.22 5.60 - 19 169,129 STERLING BANK PLC. 12,624.48 1.08 2.86 11 285,813 UNION BANK NIG.PLC. 21,601.70 0.56 -8.20 122 14,966,374 UNITY BANK PLC 567 59,972,594 WEMA BANK PLC. 4,117.00 0.20 - 0 0 INSURANCE CARRIERS, BROKERS AND SERVICES 4,573.93 0.66 1.54 24 1,282,745 AFRICAN ALLIANCE INSURANCE PLC 21,000.00 2.00 - 3 50,312 AIICO INSURANCE PLC. 2,660.00 0.38 - 2 8,550 AXAMANSARD INSURANCE PLC 19,189.58 1.85 - 15 224,317 CONSOLIDATED HALLMARK INSURANCE PLC 2,945.90 0.20 - 3 173,500 CONTINENTAL REINSURANCE PLC 2,411.47 0.53 - 0 0 CORNERSTONE INSURANCE PLC 1,913.74 0.50 - 0 0 GOLDLINK INSURANCE PLC 1,412.20 0.23 - 2 30,000 GREAT NIGERIAN INSURANCE PLC 487.95 0.38 - 0 0 GUINEA INSURANCE PLC. 2,197.03 0.30 - 5 1,005,892 INTERNATIONAL ENERGY INSURANCE PLC 2,577.80 0.60 9.09 44 2,540,337 LASACO ASSURANCE PLC. 5,280.00 0.66 8.20 10 731,900 LAW UNION AND ROCK INS. PLC. 1,760.00 0.22 10.00 12 1,595,000 LINKAGE ASSURANCE PLC 14,151.75 2.68 -9.15 12 45,990,553 MUTUAL BENEFITS ASSURANCE PLC. 1,702.69 0.22 -8.33 3 187,724 NEM INSURANCE PLC 2,745.10 0.51 8.51 13 299,573 NIGER INSURANCE PLC 1,400.44 0.21 5.00 9 832,478 PRESTIGE ASSURANCE PLC 1,668.16 0.20 5.00 9 953,266 REGENCY ASSURANCE PLC 4,483.72 0.48 - 0 0 SOVEREIGN TRUST INSURANCE PLC 2,582.21 0.20 - 0 0 STACO INSURANCE PLC 2,800.00 0.20 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 516.46 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 3,200.00 0.20 - 1 3,000,000 UNIC DIVERSIFIED HOLDINGS PLC. 3,189.33 0.23 -4.17 2 205,000 UNIVERSAL INSURANCE PLC 5,486.92 0.41 -2.38 13 441,836 VERITAS KAPITAL ASSURANCE PLC 182 59,552,983 WAPIC INSURANCE PLC

11,799.67 2.58 - 0 0 MICRO-FINANCE BANKS 3,772.95 1.65 10.00 16 1,088,905 FORTIS MICROFINANCE BANK PLC 16 1,088,905 NPF MICROFINANCE BANK PLC 4,116.00 0.98 - 0 0 MORTGAGE CARRIERS, BROKERS AND SERVICES 7,370.87 0.50 - 0 0 ABBEY MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 ASO SAVINGS AND LOANS PLC 5,664.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 2,949.22 3.02 - 0 0 RESORT SAVINGS & LOANS PLC 0 0 UNION HOMES SAVINGS AND LOANS PLC. 7,940.00 3.97 6.72 52 2,536,643 OTHER FINANCIAL INSTITUTIONS 30,879.79 5.25 - 4 26,205 AFRICA PRUDENTIAL PLC 660.00 0.44 - 0 0 CUSTODIAN INVESTMENT PLC 37,427.12 1.89 8.62 212 29,005,312 DEAP CAPITAL MANAGEMENT & TRUST PLC 1,029.07 0.20 - 0 0 FCMB GROUP PLC. 518,171.98 50.60 - 7 21,417 ROYAL EXCHANGE PLC. 17,820.00 2.97 5.32 128 9,036,466 STANBIC IBTC HOLDINGS PLC 403 40,626,043 UNITED CAPITAL PLC 1,168 161,240,525 1,680.29 3.37 - 0 0 HEALTHCARE PROVIDERS 994.88 0.28 7.69 10 899,708 EKOCORP PLC. 10 899,708 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 544.04 0.55 - 0 0 MEDICAL SUPPLIES 0 0 MORISON INDUSTRIES PLC. 366.17 0.50 - 0 0 PHARMACEUTICALS 7,425.00 4.95 - 4 41,841 EVANS MEDICAL PLC. 17,340.21 14.50 - 23 37,765 FIDSON HEALTHCARE PLC 2,401.00 2.45 - 5 92,082 GLAXO SMITHKLINE CONSUMER NIG. PLC. 1,484.80 0.86 8.86 13 575,385 MAY & BAKER NIGERIA PLC. 556.71 3.62 - 0 0 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 325.23 1.50 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. 45 747,073 PHARMA-DEKO PLC. 55 1,646,781 710.40 0.20 - 0 0 COMPUTER BASED SYSTEMS 0 0 COURTEVILLE BUSINESS SOLUTIONS PLC 1,470.89 0.50 - 0 0 COMPUTERS AND PERIPHERALS 0 0 OMATEK VENTURES PLC 6,413.06 2.54 - 0 0 IT SERVICES 648.00 6.00 -4.76 2 95,946 CWG PLC 381.11 0.77 - 0 0 NCR (NIGERIA) PLC. 2 95,946 TRIPPLE GEE AND COMPANY PLC. 939.21 0.20 - 0 0 PROCESSING SYSTEMS 16,590.00 3.95 - 0 0 CHAMS PLC 0 0 E-TRANZACT INTERNATIONAL PLC 2 95,946 2,275.11 7.85 - 5 5,100 BUILDING MATERIALS 24,395.00 34.85 - 2 153 BERGER PAINTS PLC 24,568.05 19.55 - 45 316,184 CAP PLC 696.42 0.33 - 0 0 CEMENT CO. OF NORTH.NIG. PLC 313.43 0.59 - 0 0 FIRST ALUMINIUM NIGERIA PLC 1,999.41 2.52 - 2 200 MEYER PLC. 1,279.20 10.40 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 54 321,637 PREMIER PAINTS PLC. 2,256.91 2.09 - 0 0 ELECTRONIC AND ELECTRICAL PRODUCTS 3,135.15 1.78 - 15 404,666 AUSTIN LAZ & COMPANY PLC 15 404,666 CUTIX PLC. 34,148.09 68.30 - 0 0 PACKAGING/CONTAINERS 388.02 9.10 - 0 0 BETA GLASS PLC. 0 0 GREIF NIGERIA PLC 100,754.14 62.50 - 0 0 AGRO-ALLIED & CHEMICALS 0 0 NOTORE CHEMICAL IND PLC 69 726,303 1,752.39 4.21 - 2 16,339 CHEMICALS 2 16,339 B.O.C. GASES PLC. 1,803.64 8.20 - 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 852.39 0.20 - 4 36,500 MINING SERVICES 4 36,500 MULTIVERSE MINING AND EXPLORATION PLC 50.60 0.23 - 0 0 PAPER/FOREST PRODUCTS 0 0 THOMAS WYATT NIG. PLC. 6 52,839 1,252.54 0.20 - 13 1,922,600 ENERGY EQUIPMENT AND SERVICES 13 1,922,600 JAPAUL OIL & MARITIME SERVICES PLC 61,535.49 4.95 3.13 69 2,034,432 INTEGRATED OIL AND GAS SERVICES 69 2,034,432 OANDO PLC 66,638.00 184.80 - 13 8,320 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 16,030.29 23.10 10.00 6 61,076 11 PLC 6,520.72 5.00 8.70 14 209,318 CONOIL PLC 44,740.23 34.35 9.92 69 3,574,349 ETERNA PLC. 7,833.01 25.70 - 146 2,870 FORTE OIL PLC. 66,546.28 196.00 -2.00 39 68,255 MRS OIL NIGERIA PLC. 287 3,924,188 TOTAL NIGERIA PLC. 369 7,881,220 2,219.52 0.50 - 0 0 ADVERTISING 0 0 AFROMEDIA PLC 19,501.30 2.00 - 3 146,944,985 AIRLINES 3 146,944,985 MEDVIEW AIRLINE PLC 447.02 0.38 - 0 0 AUTOMOBILE/AUTO PART RETAILERS 0 0 R T BRISCOE PLC. 2,475.89 4.20 - 7 70,712 COURIER/FREIGHT/DELIVERY 304.75 0.65 1.56 2 119,714 RED STAR EXPRESS PLC 9 190,426 TRANS-NATIONWIDE EXPRESS PLC. 642.33 0.20 - 0 0 HOSPITALITY 0 0 TANTALIZERS PLC 4,801.22 3.10 - 0 0 HOTELS/LODGING 3,533.95 1.70 - 10 190,794 CAPITAL HOTEL PLC 7,862.53 3.50 - 0 0 IKEJA HOTEL PLC 46,362.46 6.10 - 0 0 TOURIST COMPANY OF NIGERIA PLC. 10 190,794 TRANSCORP HOTELS PLC 4,800.00 0.40 - 0 0 MEDIA/ENTERTAINMENT 0 0 DAAR COMMUNICATIONS PLC 302.40 0.50 - 1 1,000 PRINTING/PUBLISHING 1,164.89 1.51 9.42 13 3,799,881 ACADEMY PRESS PLC. 1,183.82 1.99 - 0 0 LEARN AFRICA PLC 862.82 2.00 -5.66 7 202,918 STUDIO PRESS (NIG) PLC. 21 4,003,799

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Infrastructure, education get priority as Osun presents N152.7bn 2019 budget RAZAQ AYINLA

nfrastructure development and education got a big chunk of allocation as Osun State Governor Gboyega Oyetola on Thursday presented his 2019 fiscal plan to the Osun State House of Assembly. The overall N152.7 billion ‘Budget of Hope’ is lower than the N179.2 billion budgeted for the outgoing year. The governor said he would build on the giant strides of former Governor Rauf Aregbesola. Oyetola also prioritised agriculture, healthcare and provision of water in the rural area. The governor told lawmakers to the admiration of those present that “the era

of payment of modulated salaries and allowances and other benefits has become a thing of the past.” He added: “Workers and pensioners are now collecting their full salaries.” The state is expecting an Internally Generated Revenue (IGR) of N36 billion at “a minimum N3 billion monthly” out of the projected total revenue of N150 billion. The rest will come from other sources including the Federation Account, grants, aids, investment and others. The fiscal plan is heavy on the side of capital projects, which got N91.5billion –65 per cent of estimated expenditure. Education was allocated N10.4 billion or 11.36 percent of the planned spending. On the sector, Oyetola said: “We shall review

the school curriculum to achieve value reorientation and to create a sense of worth belonging in our youths. Consequently, History shall be re-introduced in our secondary schools while Civic Education shall be expanded to incorporate the Omoluabi ethos. “Focused-attention shall also be given to technical and vocational education to inculcate relevant skills for the youth to make them job creators rather than job seekers. “Our Administration remains irrevocably committed to the joint ownership and co-funding of the Ladoke Akintola University of Technology, Ogbomoso and the College of Health Sciences, Osogbo with the Oyo State government.” On healthcare, emphasis

will be on Health insurance “to provide effective, quality and affordable services to all and sundry.” The Health Insurance is a contributory scheme in which the government will pay 3 percent while the worker will contribute 1.5 percent. There is also a plan to revitalise and equip 332 Primary Health Care (PHC) centres – one in each ward - and 57 secondary health care centres across the three senatorial districts. The Ede Headworks water scheme is to be rehabilitated to enhance supply of portable water to at least 12 local government areas. The Ilesa water project, whose work restarted with the commitment of President Muhammadu Buhari, is to get full attention.

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Edo goes tough on illegal revenue collection in Park

do State government has ordered the arrest of a three-man syndicate over illegal collection of revenue from commercial vehicle operators in Obakhavbaye Motor Park in Benin City, the state capital. Addressing journalists after the arrest of members of the syndicate, senior special assistant to the Governor on Security and Surveillance, Emmanuel Orukpe, said the order for the arrest of the syndicate “was issued after we received report of the activities of the syndicate who were forcefully collecting revenue illegally from commercial drivers at Obakhavbaye Motor Park. “The culprits who were led by one Igwe are being interrogated at the Oba Market Police Station. We are using this medium to warn other groups involved in this act to desist from it. The state

government will not hesitate to deal decisively with individuals or groups collecting revenues illegally.” Orukpe urged commercial drivers to pay revenues only to approved persons and local government revenue officials, adding, “The state government has continued to receive worrisome reports from Obakhavbaye Motor Park on the activities of touts collecting revenue illegally. “We are putting measures in place to check the activities of the touts, especially at the Obakhavbaye Motor Park. Governor Godwin Obaseki’s stance against touts and illegal revenue collection is clear.” A commercial bus driver, Omoruyi John, hailed the swift response of the state government and the office of the senior special assistant to the Governor on Security and Surveillance in arresting the touts.

LMDC recovers over N2.2bn claims during December settlement week AMAKA ANAGOR-EWUZIE

L L-R: Tajudeen Quadri, senior special assistant to the governor, Lagos State on communities affairs; Akeem Omoyele Sulaimon, special adviser to the governor on communities and communications; Hakeem Grillo, director, local government administration, and Sherifah Ewumi-Dosumu, director, community development, Lagos State, at a 2-day workshop for community media practitioners, with the theme “Strategic Communication: A Tool for Media Networking and Community Relations” organised by office of the special adviser to the Lagos State governor on communities and communications in Lagos, yesterday. Pic by Olawale Amoo

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agos Multi-Door Courthouse (LMDC) has announced that it has recovered over N2.2 billion of litigants’ claims within one week during the Lagos Settlement Week (LSW) held this December. Lagos Settlement Week is a programme of the Lagos Multi-Door Courthouse organised in conjunction with the Lagos State Judiciary and set aside by the chief judge of Lagos State, to create opportunity for disputants to have their cases mediated at no cost to the parties. It is designed to impact the justice system of La-

gos State through gradual but definitive reductions of the case load of the courts within a specified time and to encourage the early settlement of cases pending litigation in the High Court and Magistrate Courts. LSW provides satisfactory, timely, user friendly and costeffective access to justice to litigants and to bring ADR to the grassroots. Speaking in Lagos recently during the end of the year neutrals’ dinner, Justices Opeyemi Oke, chief judge of Lagos State, said that a total of 488 cases were referred by judges, magistrates and litigants to the programme through court referrals and work-in-process.

Afreximbank, AGF sign $30m re-guarantee One Lagos fiesta kicks off with Star Lager facility to support African SMEs BUNMI BAILEY

HOPE MOSES-ASHIKE

frican ExportImport Bank (Afreximbank) has signed an agreement with the African Guarantee Fund (AGF) for a $30 million re-guarantee facility to support African small and medium-sized enterprises (SMEs) in the trade value chain to access funds for their activities. Gwen Mwaba, director, trade finance, signed the agreement on behalf of Afreximbank, while Constant Nzi, chief risk officer of AGF, signed for the Fund, during a ceremony held on the sidelines of the recently-concluded Intra-African Trade Fair in Cairo, Egypt. The agreement provides for the facility to be used to support the financing needs of African SMEs by enhancing their access to long-term

financing, thereby acting as a catalyst to enable them to grow, create more jobs, sustain the existing labour force and develop intra-African and extra-African trade. The re-guarantee facility is aimed at providing comfort to financial institutions in lending to SMEs, which tend to be regarded as a risky segment; enabling the financial institutions to transform their short-term deposits into long-term financing to SMEs, and supporting Afreximbank’s SME support initiative and AGF strategic plan. The facility is expected to support positive social-economic changes among the more than 6,000 SMEs that are expected gain access to guaranteed loans from African local banks, thereby contributing to trade development, economic growth and poverty reduction.

During the African Trade Fair in Cairo, the Nigerian Vice President Yemi Osinbajo visited the stands of some of the SMEs. At the stand of Clothing Africana, one of four SMEs sponsored to the trade fair by the Association of Professional Nigerians in Egypt (APNEG), Osinbajo expressed satisfaction with APNEG’s initiative in supporting the SMEs by sponsoring them to participate in the trade fair, seeking to stimulate increased trade among African countries. In addition to Clothing Africana, APNEG also sponsored Proach Shoes, Shoeplanet Multi Concepts and Renyam Nigeria Company to the fair following a competitive process that involved extensive review of the company profiles and products by members of APNEG.

he 2018 edition of the annual One Lagos Fiesta in conjunction with Star Lager, officially kicked-off on Monday, December 24, 2018, at five designated locations in Lagos State. The eight day, non-stop, celebration and star-studded fiesta is aimed at ushering in the new year as consumers get to witness concerts from leading Nigerian musicians including Wizkid, Davido, Pasuma, Olamide, Sunny Ade, Mr Real, Slimcase, Mr P, Teni and a host of others. As sponsors of One Lagos Fiesta, Star Lager is celebrating the iconic Lagos heritage just as the brand did in 2017 with the massive 58-foot tall Aro Meta Statue built out of over 3,000 Star crates, with an LED screen base. The One Lagos Fiesta is featuring support from Star Lager in five locations

- Agege Stadium Agege, Bar Beach, Epe, Ikorodu, Badagry and Victoria Island, culminating in a grand finale at Eko Atlantic City and the national premium beer brand will provide refreshments for consumers as they partake in exciting games and experiences at the Star Corner. Speaking about Star’s support of the event, the marketing director, Nigerian Breweries Plc, Emmanuel Oriakhi, declared, “Star Lager is committed to provid-

ing the best entertainment offering to consumers as we continue our support of One Lagos Fiesta. We take pride in this partnership and our goal is to continually upgrade experiences for our consumers as we promise bigger and better experiences in the future.” Star Lager in previous years, has been present and supportive of the annual year-end felicitations. Oriakhi expressed the brand’s commitment to extending the excitement by saying.

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NEWS MTN matter: CBN to review N5.8bn sanction... Continued from page 1

the repatriation involving the private placement that would compel it to pay a difference in value of about N30 per dollar, amounting to $53 million. This simply means MTN is to pay the exchange rate differential between the time the CCIs were issued (N120 per dollar) and the rate of N150 per dollar at the time the case was first flagged.

This is after the apex bank said it established a technical error involved in the issuance by banks of the CCIs relating to the repatriation of proceeds of a private placement conducted by MTN in 2008, and which allowed its original shareholders to sell about 10 percent of the shares of the company to Nigerian investors. However, BusinessDay learns that not all the four banks sanctioned by the CBN in August were involved

in the private placement transaction or the issuance of CCIs that resulted from the deal. As the settlement story broke on Monday, the CBN governor admitted that the issue with MTN had been amicably resolved but added that the matter involving the banks was still being discussed, but offered no details. “If MTN was sanctioned only on the basis of the private placement, then it makes sense that if there are banks which did not play any role in the repatriation of proceeds from

this private placement that they be granted a reprieve by the central bank,” a banking analyst told our reporter last night. When the matter first came up in August, MTN shares collapsed by about a third on the Johannesburg Stock Exchange, wiping out almost half the valueofthepensionsofteachersinSouth Africa. But the shares rose about 10 percentThursdayonreportsthatthematter had been settled by MTN accepting to pay $53 million to Nigeria, and without it having to admit to any wrong doing.

An economist, Bismarck Rewane, CEO, Financial Derivatives Company, called the resolution positive for Nigeria, which is struggling to attract foreign direct investment to act as catalyst to grow its economy that remains in troubled waters despite having emerged from a devastating recession. Analysts say with this resolution, MTN is now expected to focus on its planned IPO in Africa’s largest economy, which promises to be the biggest offer for a Nigerian bourse desperate for depth.

Nigerian cement makers poised to take... Continued from page 2

according to figures published by the Organisation of Petroleum Exporting Countries (OPEC). Oil prices currently are around $53, with analysts projecting it will remain low for the medium to long-term. Iran, like Nigeria offers subsidies on some commodities. According to Iran’s Budget and Planning Organization, the government is obligated to spend up to $90 billion per year through state-owned enterprises and companies on subsidies for basic goods, diesel, fuel, water, education, electricity and health services. Yet the country has managed to deliver basic services despite projections that it will export 1.5 million barrels of oil per day (bpd) next year. “The government is doing its best to curb its reliance on oil revenues. This is a long-term plan,” Zangeneh said, underscoring the demand of academiaandmosteconomicanalyststhat dependence on oil export earnings is a luxury the nation can no more afford. Drawing an analogy between Iran and its neighboring states, the minister said, “Now Iran is a country in the region that is the least dependent on oil.”

which owes 1.5 million metric tonnes per annum- to form a combined entity with 2 million metric tonnes per annum cement plant. Both firms are owed by BUA Group of companies. Lafarge Africa, the second largest cement producer, with a market share of 25 percent, bought a plant in Calabar, in south-eastern Nigeria, that can produce 5 million metric tons of cement a year and is also investing in its South African operation as it seeks to increase capacity to 17.5 million tons from 14 million tons across the continent. The company plans to raise N131 billion in rights issue to trim debt and further lower the cost of borrowing for future expansion. It has total debt to N254.52 billion (long and short term debt) in its balance sheet while leverage or gearing ratio has hit 191.52 percent as at September 2017. Total Finance costs of N34.92 billion exceeds operating income of N19.15 billion, resulting in a loss of N10.12 billion. Dangote Cement, Nigeria’s largest cement producer, with 67 percent market share and cement operations in ten African countries, having invested more than $8bn in cement plant capex, as it seeks to consolidate efficiency optimization across its Pan African operations. The company’s owner and President, Aliko Dangote, has said that it’d planning to raise $500 million from a Eurobond sale and will also issue N300 billion in local-currency bonds to refinance debt and boost expansion. “We estimate concrete roads and public-sector housing spend could unlock up to 53mt and 24mt of cement demand, respectively, by 2020e,” said Gbenga Sholotan, analyst at RMB Nigeria Stock Broker Ltd. “The planned recapitalisation of the Federal Mortgage Bank of Nigeria to N500bn (from N2.5bn) could lead to a vibrant mortgage market improving Nigeria’s home

ownership rate beyond the 25%, serving to boost cement sales,” said Sholotan. Analysts are of the view that public private partnerships will help propel cement consumption. Some of the projects identified as having an impact on consumption include: The planned ApapaWharf road in Lagos (Lagos state government/private investors) in exchange for tax credits. The Bonny-Bodo Road (Federal government and Nigeria LNG Ltd). The N100bn Sukuk bond for the development of 25 roads (PPP). For the first nine months through September 2018, Cement consumption in Nigeria was estimated at 15.6 million MT, 10 percent higher than the same period in 2017, according to a latest report by Vetiva Research. However, heightened political activities in 2019 could result in delayed capital expenditure disbursement, and such a delay could lead to slower than estimated cement consumption in first and second quarter of next year. “In light of the upcoming general elections, we are understandably not optimistic about disbursement in the first half of 2019, especially with the seemingly tight nature of this race and we draw comparisons to 2015 – the year of the previous, also keenly contested election,” said Onyeka Ijeoma, Building material analyst with Vetiva Research. Nigeria’s cement consumption per capita of 104kg is sub-optimal for an economy of its size and suboptimal relative to EM peers and traditionally-favoured African investment destinations, according to RMB Nigeria Stock Broker Ltd. “This supports our argument for a structural upside for cement consumption. For Nigeria to attain South Africa’s 234kg-per-capita consumption, our estimates show that Nigeria would have to consume 52mt of cement compared with the 36mt we forecast for 2023e,” said Sholotan.

out of the189 countries assessed. Peer African countries like Ghana (0.592), South Africa (0.690), Egypt (0.696) and even neighbouring Cameroon (0.556) ranked in the medium class, while Libya (0.706) and Algeria (0.754) were ranked in the high human development category. The above picture of Nigeria’s low ranking on human development was further reinforced with the maiden edition of HDI ranking by the World Bank in 2018, which also put Nigeria at 152 out of 157 countries assessed by the Bank. Infrastructure development still lags significantly, with Mary Uduk, Director-General of the Securities and Exchange Commission, estimating that infrastructure deficit will rise to $878 billion by 2040, if government continues to neglect

developments in the sector. In terms of diversification, as at Q3 2018, crude oil constituted 85.4 percent of total export, according to data from the National Bureau of Statistics. The 2016 recession, the worst in 29 years, was occasioned by the fall in benchmark Brent, which accounts for 90 percent of government’s revenue. The shock was transmitted into the sectors of the economy and growth rate in Q2 2016 fell 2.06 percent into the negative region. Although Nigeria has officially exited the recession, the economy is still smarting from the effect of that oil price shock. So far, the framework in which the Vision 20:2020 target would be achieved seems weak and with the present Economic Recovery and Growth Plan, Nigeria seems to be

occupied with a much different growth strategy. Compare this with the case of Rwanda. This East African country has largely rewritten its economic narrative, rising out of post-genocide despondence with a negative growth rate of -50.2 percent, to become one of Africa’s fastest growing economies with an average annual growth rate of 6.1 percent by 2017. In fact, Rwanda is the third-fastest growing economy in 2018 with a growth of 7.2 percent. In 2000, President Paul Kagame, after extensive consultations, outlined objectives and path to grow Rwanda from an improvised, crisis-torn, and low-income agrarian economy to a medium-income economy led by the service sector. Rwanda summarised this aspiration in its Vision 2020 plan.

L-R: Aramide Oludare, regional sales manager; Kunle Oyelana, marketing director; Omolaja Odunuga, medical director, and Omongiade Ehighebolo, communications and government affairs director, all of GSK Pharmaceuticals Nigeria, at the launch of the Lagos State Health Insurance Scheme in Lagos.

Iran’s 2019 budget points way for Nigeria... Continued from page 1

cutting down dependency on oil revenues, providing a lesson on diversification for Nigeria where oil

is still responsible for up to 70 percent of income. Bijan Zangeneh, Iran’s minister of Petroleum told reporters the country was prepared to weather the storm of US sanctions through a strong fiscal policy. “Although Iran’s budget is the least tied to oil among OPEC Member States, we are in good condition compared to neighbouring countries,” Zangeneh, adding that the country’s macro policy is to decrease budget dependency on oil revenues. Zangeneh says the government has envisaged the price of each barrel of oil at $54 for the next year’s national budget bill. The budget, will take effect in March 2019 and includes $112 billion in spending. Becausebudgetbenchmarksareset quite low, the country can benefit from surpluseswhenoilpricestrendnorth.In

2018, Iran had a benchmark of $55 but oil prices rose to $70 within the period. This compares poorly with Nigeria where successive administrations have indicated a desire to diversify the economy from oil but have been unwilling to carry out reforms that can deliver the result. Nigeria’s 2019 budget is premised on the production of N2.3million barrels per day (bpd) and that oil prices will average $60 per barrel, but before the budget is even considered, oil prices have fallen below $54 rendering the assumptions obsolete. Rafiq Raji, chief economist at Macroafricaintel said the projections are quite ambitious. “Crude oil production has been less than 2million bpd thus far this year; latest about 1.7mbpd think.” Raji adds “And even as OPEC and Russia are committed to production cuts,$60islikelyclosertotheupperlimit oftherangeofpotentialpriceincreases.” Crude oil prices averaged $49.49 per barrel in 2015, $40.68 in 2016, $52.51 in 2017 and so far this year, has sold at an average price of $71.2

Vision 20:2020: With just a full year left... Continued from page 2

to1.95 percent in Q1 2018 and further to 1.5 percent in Q2 2018 before rising to 1.81 percent in Q3 of 2018, data from the National Bureau of Statistics showed. According to the blue print laid down by the Late Yar’Adua administration, the strategies to achieve the vision anchors on investment in infrastructure, human capital development and structural reconfiguration of the economy from monolithic to a diversified and industrialised economy. As of December 2018, government spending on health and education, the twin foundation of human capital development have not had any significant improve-

ments at four percent and seven percent respectively, considering the fact that these figures stood at 3.2 percent for Health and 5.5 percent for Education as at 2010 when implementation of the grand vision was to kick-off. In the 2019 proposed budget, a paltry 5.2 percent has been allocated to education and 3.6 percent for the health care of a population of about 198 million people that is projected to be growing at 2.6 percent a year. On the global scale, Nigeria in 2017 scored very low (0.532) on the United Nations Development Programme (UNDP) HDI report which rates performance between 1, very high HDI and 0, very low HDI. This poor performance led to the country being placed 157

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Wall Street on track for weaker opening

European indices fall following best US trading session since 2009 FT Reporters

all Street’s whipsaw run was set to continue on Thursday with futures trading indicating a weaker opening for US shares after a recordbreaking surge that cut bruising losses from a turbulent run-up to Christmas. Futures contracts suggest the S&P 500 will open about 1.5 per cent lower, with the Dow Jones set for a 1.6 per cent fall. European stock markets reflect the renewed weakness, with the regional Stoxx 600 index at its lowest level since November 2016, down 1.4 per cent. The UK’s FTSE 100 hit its lowest level since July 2016, dropping 1.5 per cent. Asian markets were mixed in Thursday’s trading, with some settling back after early advances. Japan’s benchmark Topix closed up 4.9 per cent, but Hong Kong’s Hang Seng index fell 0.7 per cent and China’s CSI 300 lost 0.4 per cent. Thursday’s dip resumed Wall Street’s punishing pre-Christmas four-session losing streak, eroding some of the gains that had been made on Wall Street in an extraordinary Boxing Day session. US stock market benchmarks jumped the highest amount in almost 10 years in percentage terms on Wednesday, while the Dow Jones Industrial Average rose 1,000 points for the first time. The 5 per cent gain in the S&P 500 index reduced the benchmark’s December losses to

10.6 per cent, after having fallen as much as 15 per cent. “There is still a lot of uncertainty. You don’t want to try to call a bottom in a market that is this edgy,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors. “If you are wrong, it can be costly. It is better to see more fundamental signs of breadth and economic and geopolitical rationale for a rally before jumping back in.” Investors and Trump administration officials pointed to unusually large year-end rebalancing from pension funds as a catalyst. Wells Fargo analysts previously estimated about $60bn of stock buying had been expected from pension funds over the year-end period, with US administration officials saying that it had amounted to $100bn on Wednesday. Amid thin seasonal trading volumes, the buying activity is thought to have had an outsized impact on prices. Investors had pulled money from investment funds focused on US equities in what had been an unusually bruising December for them, exacerbated in recent days by the partial shutdown of the US government, reports that US president Donald Trump had considered trying to dismiss Federal Reserve chairman Jay Powell and an effort by Treasury secretary Steven Mnuchin to calm investors’ nerves that appeared to backfire. Stock investors were also unnerved by Mr Powell’s statement when US interest rates were raised in December that he did not see the central bank changing

Vinci buys majority stake in Gatwick airport for £2.9bn

rench infrastructure group Vinci has bought a majority stake in Gatwick airport for £2.9bn, taking control of the world’s busiest single-runway airport just days after it was brought to a standstill by drone sightings. The deal will see Vinci take a 50.01 per cent stake in the UK’s second-largest airport, which handled 46m passengers in the past year. Gatwick will become by far the biggest airport in the group’s global portfolio, lifting the total number of passengers handled by its airports division by a quarter. The sale was delayed from before Christmas because of the drone incident, said a person with knowledge of the deal, so as not to distract airport executives. Drone activity at Gatwick caused about 1,000 flights to be cancelled or diverted, disrupting travel for about 140,000 passengers between December 19 and 21. Stewart Wingate, Gatwick’s

its “autopilot” policy of reducing the size of the Fed’s balance sheet. John Redwood, chief global strategist at investment manager Charles Stanley, said investors were concerned about the consequences of major central banks’ tightening of monetary policy. “We have been reminded that shares are risky through some sharp falls,” he said. “The rally should have further to go, as investors remind themselves that the main governments and central banks do not have to fight rampant inflation and should wish to keep the recovery going for longer; we see no reason to panic out of shares at these levels.”

In oil markets, crude prices fell again on Thursday after rebounding almost 8 per cent in the previous session. Crude had been under pressure before Wednesday’s sharp gain, amid concerns about weakness in the global economy that could have a knock-on effect on oil demand. The slide comes even as global producers led by Saudi Arabia and Russia are set to enact production curbs from January to bolster prices that have fallen 40 per cent since October. Traders have yet to be convinced that the output cuts will have a meaningful impact on global supply and demand bal-

ances, particularly as US shale production swells to record levels. B re nt, t h e i nt e r nat i o na l benchmark, fell 2.1 per cent to $53.32 a barrel by mid-afternoon trading in London — after dropping as low as $52.80 earlier in the day — the lowest since September 2017. West Texas Intermediate, the US marker, slid 1.9 per cent to $45.36 a barrel, having fallen earlier in the day to $44.92 a barrel, the lowest since July 2017. Gold prices are holding below their recent highs. The metal is up 0.65 per cent at $1,275 on Thursday afternoon, below the $1,279 it reached before Christmas.

Wall Street on track for weaker opening after Christmas surge

French infrastructure group takes control of world’s busiest single-runway airport

Josh Spero

chief executive, who will stay in his job after the deal, said: “This is good news for the airport as it will mean both continuity but also further investment for passengers over the coming years to improve our services further.” Nicolas Notebaert, chief executive of Vinci Concessions and president of Vinci Airports, said: “The whole Vinci Airports network will benefit from Gatwick Airport’s world-class management and operational excellence.” Each of the existing shareholders, which include private equity firm Global Infrastructure Partners and the Abu Dhabi Investment Authority, sold down half of their stakes, leaving GIP with 21 per cent and ADIA with 7.9 per cent. The California Public Employees’ Retirement System kept 6.4 per cent, the National Pension Service of Korea 6 per cent and the Future Fund Board of Guardians, Australia’s sovereign wealth fund, 8.6 per cent. Continues on page A2

European indices fall following best US trading session since 2009 FT Reporters

some of the gains that had been made on Wall Street in an extraordinary Boxing Day session. US stock market benchmarks jumped the highest amount in almost 10 years in percentage terms on Wednesday, while the Dow Jones Industrial Average rose 1,000 points for the first time. The 5 per cent gain in the S&P 500 index reduced the benchmark’s December losses to 10.6 per cent, after having fallen as much as 15 per cent. “There is still a lot of uncertainty. You don’t want to try to call a bottom in a market that is this edgy,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors. “If you are wrong, it can be costly. It is better to see more fundamental signs of breadth and economic and geopolitical rationale for a rally before jumping back in.” Investors and Trump administration officials pointed to unusually large year-end rebalancing from pension funds as a catalyst. Wells Fargo analysts previously estimated about $60bn of stock buying had been expected from pension funds over the year-end

period, with US administration officials saying that it had amounted to $100bn on Wednesday. Amid thin seasonal trading volumes, the buying activity is thought to have had an outsized impact on prices. Investors had pulled money from investment funds focused on US equities in what had been an unusually bruising December for them, exacerbated in recent days by the partial shutdown of the US government, reports that US president Donald Trump had considered trying to dismiss Federal Reserve chairman Jay Powell and an effort by Treasury secretary Steven Mnuchin to calm investors’ nerves that appeared to backfire. Stock investors were also unnerved by Mr Powell’s statement when US interest rates were raised in December that he did not see the central bank changing its “autopilot” policy of reducing the size of the Fed’s balance sheet. John Redwood, chief global strategist at investment manager Charles Stanley, said investors were concerned about the consequences of major central banks’ tightening of monetary policy.

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Vinci buys majority stake in Gatwick airport for £2.9bn

China’s middle class hit by shadow banking defaults

Continued from page A1

Gatwick has been a profitable investment for its current owners. GIP paid £1.5bn for 59 per cent of Gatwick in 2009, valuing it at about £2.5bn; the sale to Vinci values the airport at just under £6bn. The airport has paid £1.3bn in dividends since its sale in 2009, and has had operating cash flow of £2.5bn over the same period. Its last set of full-year accounts showed that Gatwick’s owners paid themselves dividends of £643m in 2017-18 as they issued £650m of debt. This was an increase of more than half a billion pounds on the previous year’s £125m total dividend. At the time, Nick Dunn, Gatwick’s chief financial officer, said: “Our dividends — including the ones we’ve paid at the moment — are half the number we generated from operating cash flow.” Vinci is one of the world’s largest construction groups and infrastructure operators, with activities ranging across toll roads, airports, energy and telecoms as well as delivering large civil engineering projects. It operates 12 airports in France and 10 in Portugal, as well as others in Japan and Latin America. In the year to the end of March 2018, Gatwick reported revenue of £764m, equivalent to just under a quarter of €3.2bn in revenues generated by Vinci’s airport activities in 2017. Vinci and GIP will jointly manage the airport, and the parties expect the transaction to complete by mid-2019. Although it was not selected by the Airports Commission in 2015 to expand runway capacity, losing out to Heathrow, Gatwick has published proposals to use its standby runway for short-haul flights by the mid-2020s. In its draft master plan released in October, Gatwick said the standby runway would have to be moved 12 metres to the north, away from the main runway, at a cost of about £500m to comply with international safety regulations. Gatwick predicted that using the second runway could increase capacity from 281,000 flights in 2017-18 to 375,000 to 390,000 by 2033. Passenger numbers would increase from 45.7m to 68m-70m over the same period if the project went ahead. The airport has already committed to spending £1.1bn on improvements between 2018 and 2023. There is still no clarity about who was behind the drones that disrupted Gatwick operations last week. A 47-year-old man and 54-year-old woman from Crawley, West Sussex, who were arrested last Friday were released without charge. The UK’s most senior police officer warned on Thursday that government and security officials must “up their game” to tackle the threat drones pose to airports. “You won’t find a police service in the world I think who would be sitting complacently thinking: ‘well we could always deal with a drone’,” Cressida Dick, the head of London’s Metropolitan Police told the BBC.

Friday 28 December 2018

Scale of problem underestimated as investors keep losses under wraps Lucy Hornby and Archie Zhang

Finland’s Erkki Liikanen most likely to head ECB, say economists Central banker who played key post-crisis role seen as favourite for top job, FT poll shows Claire Jones

rkki Liikanen, the former Bank of Finland governor, is the most likely — but not necessarily the best — candidate to succeed Mario Draghi as president of the European Central Bank, according to economists polled by the Financial Times. Benoît Cœuré, one of the executive board members at the ECB, emerged in the FT’s informal poll as the preferred candidate to take over from Mr Draghi. Mr Draghi is set to depart at the end of October after a tumultuous eight years in charge, during which time he is widely credited with staving off a collapse of the single currency area. The ECB’s leadership is one of the top jobs in European policymaking to be decided during 2019. Mr Draghi’s successor will have to decide how quickly to steer the eurozone out of an era of ultra-loose monetary policy that has dominated the Italian’s term.

Of the 24 economists polled by the Financial Times, Mr Cœuré was a favoured candidate named by seven respondents. However, just one respondent thought Mr Cœuré most likely to be picked. That compared with eight votes for Mr Liikanen, whom three respondents said they would like him to get the job. “My choice and my bet is Erkki Liikanen,” said Andre Sapir, a senior fellow at Bruegel and a professor at the Free University of Brussels. “He combines his central bank experience with impressive political experience at home as minister of finance and in the European Commission, where he had two mandates as commissioner.” Before Mr Liikanen left the Bank of Finland in the summer, he was the longest-serving member on the ECB’s rate-setting governing council. He also played an important role in reshaping how banks are regulated after the global financial crisis, heading a commis-

sion that advised Brussels on how to restructure the sector. François Villeroy de Galhau, Banque de France governor, is also among the favourites to win the race, with six respondents saying he would be named as Mr Draghi’s successor. Danae Kyriakopoulou, chief economist and head of research at the think-tank Official Monetary and Financial Institutions Forum, said Mr Cœuré, another Frenchman, would “make an excellent choice” but would struggle to secure the nomination because of legal rules that limit executive board members to one term of eight years. Mr Cœuré’s term is set to expire around the turn of 2020. It is not clear whether an ECB president could win another eight-year mandate however, and some consider an exception to the rule possible. Ken Wattret, chief European economist at IHS Markit, a research firm, described Mr Cœuré as “an experienced, super-smart continuity candidate, limiting handover risk”.

China industrial profits decline for first time in 3 years Internet regulator imposes tighter controls on financial information providers0 0 Gabriel Wildau0

rofits fell at Chinese industrial companies for the first time in nearly three years last month, in the latest sign of an economic slowdown from weak consumption and flagging infrastructure investment. Chinese policymakers last week announced their intention to enact fresh fiscal and monetary stimulus measures, in a bid to mitigate against a weakening economy and the threat by US president Donald Trump to raise levies on $200bn worth of goods to 25 per cent. The data on Thursday showed industrial profits declined 1.8 per cent in November from a year earlier, the first negative reading since December 2015 and a steep fall from 3.6 per cent growth in October. Goldman Sachs estimated that profits fell even more sharply on a seasonally adjusted basis, down from 7.2 per cent from October. Analysts said the profit slowdown partly reflected businesses pulling back on investment in anticipation of the weaker domestic and external demand. “We have already witnessed a sharp pullback of upstream manufacturing capex,” wrote Charles Yue Yuan, an econo-

mist at China International Capital Corporation. He added that slower credit growth resulting from China’s debtcutting campaign has caused low inflation, leading to weak nominal profit growth at industrial groups. “This trend (of slow credit growth), if left unadjusted, will probably result in further deterioration of corporate profitability and economic fundamentals,” he wrote. The release of the official data came as China’s internet regulator announced tighter controls on financial information providers who, the regulator warned, could disrupt market stability by publishing sensitive material. The government has already tightened censorship of negative economic information from news outlets, think-tanks and sellside research analysts. The latest rules from the Cyberspace Administration of China target financial information and database providers, consultancies and stock exchanges. “Some institutions fail to check information strictly, hype up financial risk, publish sensitive market information, distort financial regulatory policy, and seriously affect economic and financial stability, requiring urgent disciplin-

ary action,” the agency said in a statement. While China’s propaganda authorities have long maintained strict control of print, broadcast and online news media, financial information and database providers have operated in a regulatory grey zone. Domestic financial terminal providers such as Wind and Choice compete with Bloomberg and Thomson Reuters. Some effectively publish news but are not regulated as news organisations. The new rules state that any institution publishing news should obtain a licence. Authorities have appeared increasingly sensitive to negative economic information and rumours. Last week, China’s top financial regulatory body issued an unusual one-line statement denying rumours that China’s annual economic policy planning meeting, which was scheduled to conclude later that day, would not announce new tax cuts. The national statistics agency this month forced Guangdong province, the southern export hub, to stop publishing its monthly purchasing managers’ index, a closely watched gauge of manufacturing activity and sentiment.

hanghai office worker Jin Linglan had just put a downpayment on a car when she realised her savings were gone. Like many prosperous Chinese, Ms Jin invested in financial products that promised a high rate of return. And, like many of her fellow investors, she has made the painful discovery that her money has been swallowed up by the recurring defaults in China’s shadow banking market. The losses absorbed by middle class families in a nation famous for its diligent savers have taken a quiet financial and emotional toll. Many of the failures have been peer-to-peer lending platforms. Outstanding peer-to-peer loans in China topped Rmb1.2tn ($174bn) in the first quarter this year, before sliding to about Rmb800bn as hundreds of peer-to-peer platforms shut, according to a report on the sector by Moody’s. It all means that Ms Jin will not be able to buy that car. An online consumer lending company that went bust in July took with it about $90,000 of her money. “It was everything I had saved since college,” she said. “I told my dad about this but we decided not to tell my mum. We were afraid she could not accept it.” Investors interviewed by the Financial Times revealed tales of damage to personal relationships as well as pocketbooks. One retiree of modest means lost about Rmb200,000 she had hoped to give her daughter and British son-in-law to renovate their new home abroad. Another woman made a decision not to be angry at her husband, after he lost the equivalent of two of her past seven years’ salary. A senior manager at the Beijing office of a large US tech company did not want his boss to know he spent his vacation days protesting outside government offices. It is difficult to put exact figures on the size China’s shadow banking sector, which attracts individual and corporate savings with interest rates above the savings deposit rate and lends the money on at even higher rates. Shadow banking institutions involve not just peer-to-peer platforms, but trust companies selling wealth management products, online fintech companies, pawnshops and a large variety of informal money lenders. What is certain is that the sector has seen a lot of growth. About 169m Chinese, or about 12 per cent of the population, have invested in wealth management products online, a rise of 66 per cent from two years ago, according to a Moody’s report published this month. Essentially, they are putting money into the shadow banking system. Other statistics cited by Moody’s also indicate that money under management by peer-topeer platforms has doubled in the past two to three years. The sharp rise in online investing reflects “a desire to generate returns above cash-deposit rates”, it said.

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The year when hits just kept coming for European banks Poor profitability, outdated business models and negative rates have driven investors away en masse Stephen Morris

hen Deutsche Bank boss Christian Sewing hosted a call for his top managers in October to discuss yet another disappointing set of results he lost his cool, lashing out at their “bullshit” excuses for poor performance. It is not hard to see why Mr Sewing and his fellow European bank chief executives feel under so much pressure these days. The region’s lenders have had their worst year since the nadir of the eurozone crisis as a constellation of issues including anaemic profitability, outdated business models, negative rates and the seemingly perpetual farrago of Brexit have driven investors from the sector en masse. European bank stocks have fallen on average 25 per cent — the most since 2011 when they dropped by a third — eliminating all gains made in the past six years and wiping out $380bn in shareholder value, according to analysts at Autonomous Research. Collectively they are on track to make a 2018 return on equity less than half the 16 per cent generated by their US rivals, Citigroup data show. “Everyone hates European financials at the moment. There’s almost no discrimination in the sell off,” said Richard Buxton, chief executive of London’s Merian Global Investors. “People are concerned about profitability — rate rises look further and further out and many are convinced the next recession is around the corner.” None of the 16 largest British, French, German, Italian or Swiss banks trade above book value. On average, they are valued at about 0.6 times their net assets, compared with ratios of 1.1 for the top six US banks and 1 for lenders on the MSCI Emerging Asia Banks Index. Chart showing that European banks are overvalued At the bottom of the European pile is Mr Sewing’s Deutsche, which trades at a quarter of its book value after plunging 53 per cent during a tumultuous 2018. Germany’s biggest lender fired its CEO in the spring and last month was the subject of a two-day

police raid linked to money laundering. It is struggling to retain its best staff as deferred stock bonuses have halved in value. “When most banks are trading well below book value, many significantly below, there is clearly a major problem in Europe,” said Philipp Hildebrand, vice-chairman of BlackRock and former head of the Swiss central bank. “We have one of those really tough moments where business model issues, cyclical issues and external challenges like technology are coming together all at the same time.” Regulators are well aware of the dangers of persistently low returns. The Bank of England and the European Central Bank have both said they are worried about lenders’ ability to earn enough to survive another prolonged economic downturn. Mario Quagliariello, the senior European official leading the most recent round of stress tests, told the FT in November “profitability remains the key challenge”. On the surface, things should be getting better. Analysts at Citigroup predict a 42 per cent growth in European banking profits this year on the back of an 86 per cent increase in 2017. Banks are safer, having more than doubled their capital buffers since the financial crisis and most have put their biggest misconduct fines behind them. However, any improvements in performance have been overshadowed by geopolitical and macroeconomic worries, combined with an underlying concern banks have not altered their business models enough to reflect tougher capital standards and leverage restraints. “The hits have just kept on coming for the European banks,” said Stuart Graham, chief executive of Autonomous Research. “2018 started as a selloff on disappointing growth, gathered pace with the election of a new Italian government, was compounded by the ECB’s dovish rate guidance in midJune and amplified by concerns over emerging markets, especially Turkey, and trade wars.” Chart showing European bank shares have struggled to recover postcrisis relative to US peers

US stocks and oil surge after run of bruising declines Major benchmarks stage best day in nearly 10 years to regain some of December’s losses Joe Rennison, Nicole Bullock, Leo Lewis and Richard Blackden

S stocks and oil prices surged on Wednesday with the major equity benchmarks rising by the most in almost 10 years, retracing some of the losses from a turbulent run-up to Christmas. In a volatile session, the benchmark S&P 500 index finished 5 per cent higher. The Dow Jones Industrial Average also gained 5 per cent, rising more than 1,000 points for the first time in a single session, while the Nasdaq Composite jumped 5.9 per cent. It marked the best day for each index since March 2009. The S&P 500 is now down 10.6 per cent for December, having fallen by as much as 15 per cent. Asian markets were more mixed on Thursday following the US rally. Japan’s benchmark Topix closed up 4.9 per cent but Hong Kong’s Hang Seng index fell 0.7 per cent while

China’s CSI 300 lost 0.4 per cent. In Europe, the regional benchmark Euro Stoxx 50 was 0.4 per cent higher and the UK FTSE 100 index was 0.2 per cent up. Oil markets also staged a strong rally on Wednesday, with Brent crude rising 8.7 per cent to $54.87 and West Texas Intermediate moving 8.7 per cent higher to $46.22. On Thursday, prices eased with Brent trading at $53.8 a barrel and WTI was at $45.71 a barrel. Reuters reported that Alexander Novak, Russia’s energy minister, said in an interview on Rossiya-24 television on Tuesday that oil prices would become more stable in the first half of 2019 after efforts by Opec and other large oil producers earlier this month to cut output. “I would tie [the move in oil prices] more to what is going on in the broader market,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors. “Was there good news from Russia on crude? Yes. Was it good enough to send prices up 10 per cent? No.”

Christian Sewing became chief executive of Deutsche Bank during a difficult year for the German bank and many of its European peers © FT montage/ Bloomberg

Oil majors keep tight grip on spending for greener future

Only small proportion of money allocated to R&D is set aside for clean energy projects Anjli Raval t Royal Dutch Shell’s research and development centre in Amsterdam, scientists and engineers are experimenting with new ways to thrive as the world shifts towards cleaner fuels — from hydrogen dispensers at fuelling stations to injecting carbon back into underground reservoirs after oil and gas extraction. R&D is a leading indicator of the direction of change in an industry. But even as Shell and its oil major peers say they are preparing for a greener future, their spending is still largely focused on their legacy fossil fuels businesses. Shell said it was investing about 10 per cent of its $1bn annual R&D budget on renewables and less than a quarter on what it defines as low-carbon initiatives — such as hydrogen, biofuels and carbon capture and storage. “There is a myth out there that if you just inject, collectively, enough R&D money in something that one day, magically, it will just explode on the scene and be big,” said Harry Brekelmans, Shell’s projects and technology director. “That’s not

quite the way it works.” Shell said it was supporting the development of new energy technologies by investing in areas complementary to its existing business and creating partnerships with institutions that specialise in such research, rather than trying to find the next breakthrough in renewables hardware where it lacks a competitive advantage. “We’re not in the business of developing the next generation of solar panels,” said Mr Brekelmans. “What we could be is a developer of solar farms, and then we could be the marketeer for the electrons that come from that.” But for Mr Brekelmans, a key frustration for energy companies such as Shell is that many see only one pathway for decarbonisation — the elimination of fossil fuels — rather than more “realistic” options. These include shifting from dirtier oil towards gas, investing in carbon capture and storage, boosting the efficiency of existing fuels, deploying digital technologies to enhance productivity and cleaning up processes such as reducing methane emission leakage.

“No matter how much we talk about the energy system of the future, electrification, renewables and so on, nobody can deny that over the next decade, for example, oil and gas will be very material and central to the energy system,” said Mr Brekelmans. It is a political hot potato and, in turn, remains a grey area. Few companies disclose how much they are spending on low-carbon R&D, a key recommendation of the Task Force on Climate-related Financial Disclosures — a working group backed by Mark Carney, Bank of England governor. Part of the reason why energy companies are reluctant to commit huge sums of R&D spend and annual capital expenditure to low-carbon initiatives — and disclose the figures — is that they have yet to generate profits from cleaner energy projects that match those of traditional oil and gas businesses, where demand is still growing. “It’s very difficult to justify allocating capital from their legacy high return businesses to low return projects such as renewables and other clean energy,” said Valentina Kretzschmar at energy consultancy Wood Mackenzie.

Global miners tested by shift to low-carbon economy Stark warning comes as climate change forces industry to rethink practices Neil Hume

t the El Soldado copper deposit, 130km north of Chile’s capital Santiago, engineers from Anglo American are testing two new processes that could help put the mining industry on the path to a more sustainable future. The technologies — coarse particle recovery and bulk sorting — promise to slash the amount of water and power needed to separate worthless rock from valuable-metal bearing ores and reduce the footprint of mining. As the best deposits have been tapped and ore grades have declined over the decades, miners have in the past responded by building larger projects that are more energy and resource intensive and leave a big impact on the environment. This has placed the industry on an “unsustainable path”, according to Aaron Puna, head of technical base metals at Anglo American, just as the

challenges posed by climate change and global warming have come into sharper focus at a local community and government level. “Compared to a 100 years ago we are consuming double the water, about ten times the energy. We can’t continue in this vein. We have to do something differently,” said Mr Puna. The transition to a low-carbon economy is one of the most important issues facing the mining industry and one that has become a strategic priority in the boardrooms of the world’s biggest resource companies. In a speech last month, Simon Thompson, the chairman of Rio Tinto, highlighted global warming as the “greatest long-term threat” facing the Anglo-Australian company. But the challenge goes beyond taking action to improve productivity and reduce operational greenhouse gas emissions. Miners also have to consider how demand for their products will change as the world shifts to cleaner forms of energy. “As an industry we have an incred-

ible challenge in front of us and we are not really solving this problem as quickly as we need to,” said Mr Puna. In a new report, the Columbia Center on Sustainable Investment estimates energy demand in the mining sector will rise by 36 per cent between now and 2035 because of declining ore grades and rising demand for raw materials. “Energy produced and procured by the mining companies today is mainly fossil fuel based. This will have to change if the sector is to contribute to the decarbonisation of the world economy,” said Nicolas Maennling, senior economics and policy researcher at CCSI. In an effort to cut their emissions some large mining companies are turning to renewable energy. In the summer, London-listed Antofagasta struck a deal with Chilean utility Colbún to provide it with 550 gigawatt hours of electricity a year from renewable sources including hydropower.

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Friday 28 December 2018

ANALYSIS Tax cuts one year on: ‘we are on a very unstable fiscal path’ Trump’s reforms lifted short-term growth and earnings but have widened the deficit Sam Fleming and Andrew Edgecliffe-Johnson

I Money managers: the new warriors of climate change Spreadsheet-analysing investors in control of trillion-dollar funds are forcing polluters to change Anjli Raval and Attracta Mooney

hen an activist shareholder group last year launched a campaign to force Royal Dutch Shell to set hard targets for cutting carbon emissions, just 6 per cent of those eligible to vote backed the plan. Yet within months Shell had announced an “ambition” to halve its carbon footprint by 2050, with the goal including a reduction in pollution from cars that burn the company’s petrol and diesel. This December it pledged to set firm short-term emissions targets from 2020 that will be tied to executive pay. “If we don’t meet them there will be consequences to my salary and others,” said Ben van Beurden, Shell’s chief executive. “I hope you are in no doubt . . . [we are] absolutely serious about this.” The turnround is stunning in an industry that for years was reluctant to take responsibility for its broad contribution to global warming, while spending millions of dollars on lobbying to counter efforts to cut emissions. Mark van Baal, founder of Follow This, the activist group behind the Shell campaign, is in no doubt who is responsible for the shift: big investors, including the Church of England Pensions Board, which oversees the retirement pot for Anglican clergy and formed part of the 6 per cent in favour of the activist group’s proposal. “The real heroes of this story are the institutional investors,” he says. Mr van Beurden echoes that, saying it was “dialogue” with investors that led to the “evolution” in Shell’s position. Following decades of campaigning by environmentalists and nongovernment organisations, it is now spreadsheet-analysing money managers — responsible for the nest eggs of millions of people — who are forming a new generation of climate activists. And these activists are backed by trillions of dollars. A growing number of individuals at asset managers, pension groups and sovereign wealth funds are using their power to push the biggest corporate polluters to tackle climate change, spearheading campaigns to cut carbon emissions, boost disclosure on climate risk and hold managers accountable. “Big oil companies are more powerful than most governments,” says Mr van Baal, who is pushing companies including Shell, BP, ExxonMobil, Chevron and Equinor to set hard long-term targets. “Only the investors can make them change.” For years the $85tn asset management industry largely shrugged off global warming, ignoring environmental campaigners in favour of dividends. But after the financial crisis the pressure from clients, policymakers and the public to hold

companies to account intensified. The 2015 Paris accord , when 200 countries agreed to limit the rise in average global temperatures to “well below” 2C compared with pre-industrial levels, galvanised campaigners. But the primary motivating factor for action by big-name investors — from BlackRock to Calpers, the California state employees’ pension fund — is a realisation of the financial risk involved in these investments. An average global temperature rise above 1.5C would be catastrophic and the world has already warmed by about 1C since the start of the industrial age, largely because of greenhouse gases released from the burning of fossil fuels. Now oil and gas companies are under scrutiny like never before. Unrestrained, their activities — which investors say are predicated on a future rise in global temperature of 3C — could accelerate global warming. There is also the concern that a continued push by governments to cut emissions to meet their Paris targets will trigger a transformation of the energy industry that would make a huge number of oil and gas projects uneconomic, diminishing the value of these assets and investors’ shareholdings. For larger investors, there is also the potential for collateral damage: the behaviour of the oil and gas groups they invest in could hit other parts of their portfolios, from agrifood stocks suffering if crops fail to the falling share prices of companies that operate coastal infrastructure. “Right-thinking people who understand the climate science here and are in positions of power and influence are now beginning to think: ‘How does the financial ecosystem benefit or not from climate risk?’” says Steve Waygood, the chief responsible investment officer at Aviva Investors, the £350bn asset management arm of the British insurer. “While there are short-term gains to be made, the longer-term environmental disaster spells an economic disaster.” A 2015 study that has subsequently been used by investors to assess the value of the global total stock of manageable assets at risk due to climate change, estimated that losses could range from $4.2tn to — in a worst-case scenario — $43tn between now and the end of the century. Pension funds that need to provide retirement incomes for decades to come are on high alert. As are insurers, which are facing a potential increase in payouts as rising emissions trap heat and trigger floods, droughts, forest fires and heatwaves, as well as hits to their investment portfolios. This anxiety has sparked a wave of climate activism at the highest levels of the financial world over the risks associated with holdings in listed fossil fuel producers such as Shell, ExxonMobil and Chevron,

even as these companies benefit from feeding rising energy demand as the world economy grows and populations swell. Energy majors have been called on to cut emissions from fossil fuel extraction and processing, switch to producing low-carbon fuels, such as gas over coal or dirtier types of oil, improve efficiency in transmission and distribution and boost their presence in renewables. They are also being urged to invest in technologies such as carbon capture and storage. Time is running out, however, with the world on track to overshoot the Paris targets by the end of the century. “The task ahead is staggering,” says Mr Waygood. “It’s in the order of 10 Marshall Plans and 10 missions to the moon simultaneously.” For investors, the first step is to assess the scale of the problem and Mark Carney, the governor of the Bank of England, has led an initiative to push energy companies and others to disclose climate risks. Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, says big investors have a fiduciary duty to investigate how many assets would lose value. “We are all under an obligation to provide a return, but equally we’ve got to do it in a way that’s sustainable,” says Mr Matthews, who led the talks with Shell, alongside international asset manager Robeco, about setting hard targets for carbon emissions cuts on behalf of a group of investors called Climate Action 100+ that has a combined $32tn under management. Mr Matthews says energy companies need to show they are capable of thriving in a low-carbon world by shifting investments — such as from oil sands to cleaner energies. They could also curtail spending in legacy projects, manage their decline and prioritise shareholder returns. “You are seeing the mobilisation of pension funds, which I must admit I never necessarily expected,” says Mr Matthews. Pension funds are on the front lines of whether the world transitions to a lower carbon economy and could be a “phenomenal lever of change”, he says. The debate is still largely focused on making pledges rather than forcing action. But the matter has become more urgent and investors are increasingly filing and backing shareholder campaigns such as the one led by Follow This. The number of investor resolutions focused on climate change across all sectors doubled to 42 between the 2013-14 and 2016-17 voting seasons, according to data provider Proxy Insight. Most notable was Exxon’s 2017 annual meeting, when more than 60 per cent of shareholders, including BlackRock, revolted and voted against the board. Exxon has subsequently improved its disclosure of information around climate change.

t was hailed as a “historic victory” by President Donald Trump, and a “heist” by Democratic senator and possible presidential contender Elizabeth Warren. A year after the $1.5tn tax cut was passed into law, the economic effects are becoming apparent. The reductions have added octane to an already robust recovery, helping lift growth well above its trend rate and towards 3 per cent this year. The sustainability of that expansion is far less sure, however. The Federal Reserve has stuck with estimates of longer-run growth at just 1.8 per cent — no higher than before the package was passed — and business investment fell back sharply in the third quarter. What may prove long-lasting is the damage wrought by widening budget deficits. “We have had a big fiscal push — a big increase in spending, and a big increase in the deficit due to tax cuts,” said Alan Auerbach, an economics professor at University of California, Berkeley. Despite the

investment decelerated to a modest 2.5 per cent in the third quarter. Given the scale of America’s oil industry, falling oil prices could impose a further drag on corporate spending. Growth effects There is no doubting the shortterm growth effects of the deficitfuelled package. The estimates from Citi point to a 0.7 percentage point boost to growth in 2018 from tax cuts and this year’s big public spending package — a stimulus that will extend into next year. But unless Congress takes measures to avoid a “fiscal cliff”, lower public spending will drag down growth in 2020, at a time when higher interest rates could also restrain the economy. Analysis from Barclays argues that investment levels are still far too low to provide the kind of long-term lift in GDP growth that US Treasury secretary Steven Mnuchin has predicted. To boost growth to 3 per cent over a sustained period solely on the back of capital formation would require business investment to leap by 30 per cent, they estimate — dwarfing the growth seen to date. The Fed has left its estimates of longer-term growth unchanged at

current strength of the economy, the prognosis down the road was less encouraging. “We are on a very unstable fiscal path”.

1.8 per cent in the face of all the tax reforms, suggesting it is not counting on any long-term boost to the economy.

Investment Companies made bold promises after the tax cuts were pushed through Congress, pledging a total $194bn of investments, alongside wage boosts for around 2m employees and $7bn in one-off bonuses, according to analysis of 751 corporate announcements. Assuming the spending is spread over five years, the lift to growth over that period from those specific announcements is modest — amounting to a couple of tenths of a per cent, according to Dana Peterson of Citi, who compiled the data. At the same time, wage growth has shown greater buoyancy, advancing to 3.1 per cent according to the November jobs report. It is hard to establish how much of this is down to fiscal changes — the labour market has been getting progressively tighter for years. A durable acceleration in wage growth — which was predicted by Mr Trump’s economic advisers in advance of the tax cut — will rely in part on higher investment boosting US productivity. It is premature to judge the enduring impact of the corporate tax cut on investment, but early evidence is decidedly mixed. After a strong first quarter of the year, when it grew an annual pace of more than 11 per cent, annualised growth in business

The federal deficit Mr Mnuchin argued that the tax reforms would pay for themselves via higher growth, but there is no evidence of that heady claim in the data. Given the strength of the economy, it is highly abnormal to see a widening budget deficit, but that is what is happening. The deficit will this fiscal year hit $970bn, Congressional Budget Office projections show; that is 4.6 per cent of GDP, up from just under 4 per cent previously. Never in modern US history have deficits been this high outside a recession or war and its aftermath, according to the Committee for a Responsible Federal Budget. If the tax cuts and spending increases are extended, public debt could rise from 78 per cent of GDP to 148 per cent by 2038, according to the CBO. The fiscal deterioration will start to drag on growth as private investment gets crowded out amid swelling government debt early in the next decade. Earnings and returns Cutting corporate America’s taxes predictably boosted its bottom line. Earnings in the S&P 500 had grown at 8.5 per cent in the quarter just before the Tax Cuts and Jobs Act was signed, but leapt by 28.4 per cent in the same period of 2018.

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Jakande challenges youths to be active in politics JOSHUA BASSEY

irst executive governor of Lagos State, Lateef Kayode Jakande, has challenged Nigerian youths to be actively involved in politics. Jakande made this call on the occasion of the official visit of a group of Nigerian youths under the aegis of ‘Buhari Oshibajo South West Support Group’ to him in his Ilupeju residence, Lagos.

Jakande

“Nigerian youths have come of age and they have a duty to be involved actively in politics because the future belongs to them. I sincerely look up to Nigerian youths to be politically active and I am prepared to support them in whatever way they may need me,” Jakande said. He also expressed his support to the Buhari/Osinbajo administration in its fight against corruption. ‘’I must commend this administration on its effort

2019: Oyo REC says some politicians approach commission for sale of PVCs …raises alarm, assures of credible polls Akinremi Feyisipo, Ibadan.

he Independent National Electoral Commission (INEC) yesterday raised the alarm that some politicians in Oyo State are approaching the commission for the sales of Permanent Voters Cards (PVCs), in order to rig the 2019 general election in the state. Resident Electoral Commissioner (REC), in the state, Mutiu Agboke who did not reveal the identity of the political party and those who have approached the commission for the sales of PVCs said none is available for sale in the state. Delivering his keynote address at a one-day seminar organised for online journalists in the state assured residents of the state of smooth elections devoid of crisis in 2019, added that no staff of the commission will sell PVCs to any politicians ahead of the 2019 general elections. Agboke said, “They are looking for PVCs to buy. They are

looking for what is not available because they know that these things are not available. This is the security report at my disposal. Speaking at the event held at the Nigeria Union of Journalists (NUJ), Press Centre, Iyaganku with the theme “Online journalism and Media integrity in Nigeria” stated that tell those who are looking for PVCs to buy that there is none to buy in Oyo state. I can assure you that no INEC staff will sell PVCs to any politician. I can assure you that the process will be free in Oyo state. “Those who are looking for PVCs to buy, I won’t give you the name. I don’t have the name. “But, that is the security report I got and the report did not specify the party and the individual that is involved. They want us to give them PVCs but we can’t give it to them. They want to buy PVCs but there is none to sell in Oyo state.” Agboke, while speaking further, urged journalists in the state to cooperate with the commission in spreading accu-

rate information to members of the public. “But, all of us are stakeholders. If you are in doubt, call INEC. More so, you are online journalists, let us ensure that we have our facts correct. For me in Oyo state I have checking to hide, we conducted the election in Eruwa and the people that won, won”. He however, urged journalists to abide by the ethics of the profession at all times. The South West Bureau Chief of The Nation and an Associate Editor of Nigerian Tribune newspapers, Bisi Oladele and Wale Ojo-Lanre, respectively while delivering their separate papers, tasked journalists to always abide by the rules and regulations guiding the profession in their day to day reportage. Saying that online journalism has come to stay in Nigeria, they posited that journalists must distinguish themselves from ordinary writers considering the fact that almost everybody is a journalist with the advent of internet and smart phones.

so far in fighting and checkmating corruption. I do not support corruption in office. It is condemnable, unjust and totally evil. Every government at all levels and Nigerians, especially the youths, should join in the fight against corruption. Any government that fights corruption will always have my support,” Jakande said. He added that the Federal Government has an “inescapable duty to fight corruption so as to continue to earn the

respect of all Nigerians. Let us be united in our fight against corruption and let the people be served to the best of our ability. Every Nigerian deserves to be served and we must make Nigeria a country where love and service prevail. As for me, I will always support this administration and it will always have my support in waging war against corruption”. Leader of the visiting Buhari/Osinbajo South West Support Group (BOSWSG),

Loyal APC candidates will be elected to NASS to prevent unruly behaviour to Buhari - Amosun

s a surprised political turnaround ahead of 2019 general election, Governor Ibikunle Amosun has assured all chieftains and members of the All Progressives Congress (APC) that the current crises rocking the party would soon be over as political mechanisms are being putting in place to resolve all crises, saying President Muhammadu Buhari would be re-elected by Nigerians. He also declared that the party leadership would ensure that disloyal members of APC, especially those in political offices would be fished out as such members and candidates would not come back to the National Assembly in order to avoid the national embarrassment caused by the disgruntled APC who jeered and taunted President Buhari when he presented 2019 Appropriation Bill before the Joint Session of National Assembly. Governor Amosun, who was one of the embattled governors in the APC after Rochas Okorocha of Imo State spoke with BusinessDay’s RAZAQ AYINLA among other journalists at Ake, Abeokuta after he had been warmly endorsed to run for

Senatorial seat of Ogun Central Senatorial District by the Alake of Egbaland in Council chaired by Oba Aremu Gbadebo, the Paramount Ruler of Egbaland in Abeokuta which covers six local governments that make up the District. Excerpts: There are crisis everywhere in APC today, and it seems it is getting deeper and if it doesn’t resolve on time; don’t you think it will have the chances of APC in the general election? Clearly, that should be for any very loyal member of APC, that is what we should seek to achieve and for me, that is one of the most important things we must ensure, because clearly, this has affected the performance of the government. President Muhammadu Buhari was able to weather the storm because of one or two persons and the kind of person the President is, and you all see what happened at the budget presentation, it should be, we are in a civilised society but all of you will agree with me that despite all of those, we have feared very well despite where we are coming from, lessons already learnt and going forward won’t be like that, we will make sure that those

Police decline to parade suspected killers of Alex Badeh Innocent Odoh, Abuja

he police have said that the much anticipated parade of the two principal suspects and the three other gang members, who were arrested over the assassination of former Chief of Defence Staff (CDS) Air Chief Marshal Alex Badeh did not come up on Thursday so as not to jeopardize the on-going investigation. The Force Public Relations Officer, Jimoh Moshood made this known in a statement dur-

ing a press briefing on Thursday even as he noted that the investigation into the killing of the former CDS is being intensified to arrest other suspects still at large. “On the directive of the Inspector General of Police, IGP Ibrahim K. Idris the Joint Police Investigation Team (IGP Intelligence Response Team and Special Tactical Squad) setup by the IGP and mandated to within the shortest possible time to arrest all those responsible for the killing of the former, Chief of

Defence Staff, Air Chief Marshal Alex Badeh on the 18th December, 2018 in Nasarawa State arrested Two (2) principal suspects who participated in the killing of the former, Chief of Defence Staff on 18th December, 2018, and three (3) other suspects in connection with the heinous crime. They are now in Police custody undergoing investigation. “The investigation into the killing of the former, Chief of Defence Staff is being intensified to arrest other suspects still at large.

Temilade Okesanjo, said that the Buhari-led administration has done well in the last four years. ‘’We realise that tremendous work has been done by this administration with many of its programmes aimed at redefining the future of Nigerian youths. Okesanjo described as laudable and commendable Buhari administration’s National Social Investment Programmes, N-Power schemes, ICT development projects.

Governor Ibikunle Amosun of Ogun State (r) and his wife, Olufunso (sitting), receiving blessings from Oba Aremu Gbadebo, the Alake and Paramount Ruler of Egbaland, at Ake Palace in Abeokuta when the governor visited Thursday to seek endorsement for Senatorial election.

that would be in the National Assembly would be loyal to the party in the absolute term of loyalty. Are the crises in APC irreconcilable? I am a member of APC but clearly. I told you before that some of our people that felt that they have not been fair to them, there is a form of injustice which all of you are aware of, for me, this is not what we prayed for, if anybody has told me that it is going to be like this, I will say ‘no’ but clearly as human being, God will show His way at any time to we, ordinary mortals, when it happened, of course we have to soldier on but we will not say people that have been hurt should not ventilate the anger but in the final analysis, this is for the good of APC and I can say this anywhere because if we had not allowed them to go, they (all his loyalists that defected to Allied People’s Movement - APM) would have voted for another person and we will not even be in charge, we will not be in control but now, we know that they are child of necessity (forming of Allied People’s Movement) they are APC and everybody knows and I am happy they have adopted President Muhammadu Buhari and they have adopted me (Amosun vying for Senatorial seat) as well which is good news. You know what I know too that if they removed those in the mainstream of APC from APC, they don’t even have 10percent left, clearly, if they say APC, it is APC that we are pushing, it is APC that belongs to us and for me APC is APC and that is why in our magnanimity, we they came on the eve of the Congress, people wanted me to say ‘these people are coming to spoil this party, they want to come and hijack this party’ but I said ‘it is not like that, let them come’. Imagine somebody coming on the eve of the Congress and all of them now, they are the owners of the party, without you talking God is there.

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Friday 28 December 2018

Poor non-oil export earnings show next president must brace up for economy ODINAKA ANUDU

igeria is lagging a number of count r i e s i n n o n - o il export earnings, meaning that whoever becomes president in 2019 must be ready to fix the economy and enable many sectors contribute to revenue. South Africa, Africa’s second largest economy, earned 164.9 billion rand (about $13 billion) from exporting automobiles alone in 2017, according to the 2018 Automotive Export Manual. Bangladesh, often regarded as one of the poorest countries in the world, rakes in $28 billion just from textile export annually. In 2016/17, Brazil, with almost Nigeria’s demographic size (209 million), exported 28.15 million metric tonnes (MT), earning over $38 billion just from sugar. Sugarcane alone contributed $43.8 billion to Brazil’s gross domestic product (GDP) – equivalent to almost two percent of the entire Brazilian economy. Even India, which was projected to grow as fast as Nigeria by the Goldman Sachs in 2012, is set to produce 35 million tonnes of sugar next year. For Nigeria, data from the National Bureau of Statistics (NBS) show that the country earned N577 billion from total export in the first quarter of 2018 and N218.98 billion in the second quarter (if you factor out what the body calls ‘other oil exports’). This is about $2.20 billion for the halfyear of 2018. BudgIT carried out a simple research in 2016 using data from Indexmundi, the United States Department of Agriculture (USDA) and Vetiva Research. It was found that Nigeria had a 45 per cent share of world’s palm oil market in 1960. The numbers showed that if Nigeria maintained its 45 percent share in 2016, it would be earning $17.5 billion annually from just one product—palm oil— assuming that it exported all of its output. As of October 2018, one ton of palm oil was around $499.15, using Malaysian prices. Total palm oil output was 58.84 million metric tonnes. Assuming that Nigeria was still controlling 45 per cent of the global palm oil market last month, the country should be producing 26.48 million metric tonnes. Local demand is about 2.1 million metric tonnes, meaning that Nigeria would be able to satisfy local demand and

still export 24.38 million tonnes, earning $12.17 billion. Nigeria heavily relies on crude oil for its export and revenue earnings and any hit on oil hurts the economy badly. Manufacturers and importers rely on dollars for the importation of raw materials and finished goods. The federal government assumed the crude oil price of $60 per barrel in its 2019 budget but oil Brent Crude was $50.79 per barrel on Tuesday. This portends danger for a monoproduct economy going into a crucial election. Experts believe that the biggest clog in the wheel of progress in the non-oil export sector is poor infrastructure. Today, energy makes up 40 percent of exporters’ expenditure as firms seek alternative sources of powering their generators. Manufacturers have spent N212.85 billion on alternative energy sources between the second half of 2016 and the first half of 2018, according to data from the Manufacturers Association of Nigeria (MAN). This is over 100 percent higher than what was incurred in the previous four halves. Manufacturers told BusinessDay that logistics costs have risen by 50 to 100 percent in the last two years, owing to poor state of roads and lack of a good transport system. Analysts believe Nigeria must spend three to five percent of its GDP on infrastructure annually to become competitive. A 2018 Financial Derivatives Company

analysis shows that the country needs to spend $15 billion annually for 15 years to develop its infrastructure. Nigeria’s infrastructure budget has fallen below 20 percent over the years, though 2018 budget committed about 28 percent to it, despite government’s claim of 30 percent. Exporters are faced with poor road network and decrepit seaports. Ports in Warri and Port Harcourt are not used because they need to be fixed and dredged. Onitsha seaport is not yet ready for use today. Export firms bringing in raw materials into the overused Apapa and Tin Can ports and those exporting commodities abroad have seen their costs swell on rising dwell time, which results in high demurrage charges. Only 10 percent of cargoes are cleared within the set timeline of 48 hours now while the majority of cargoes take between five and 14 days to clear, according to a maritime report conducted by the Lagos Chamber of Commerce and Industry (LCCI).The report notes that some cargoes take as many as 20 days to be cleared at the ports. At a recent book launch in Lagos last month, Muda Yusuf, directorgeneral of the Lagos Chamber of Commerce and Industry (LCCI) said: “The key issue is competitiveness. Unless we have an environment that positions the economy for competitiveness, we cannot make any headway in non-oil export”.

“Diesel is N260 per litre. So, how will those in the manufacturing sector survive? Export is not just about cocoa, shea butter and other primary products, which make up 90percent of our export portfolio today. Export is about industrialisation, value-addition and manufactured products.” He explained that Nigerian manufacturing and export sectors cannot make headway without strong infrastructure, citing the case of Apapa ports roads as one key reason why exporters are struggling today. Nigeria heavily exports raw materials such as cocoa, shea butter, hibiscus flower and other agro products, which are converted into finished goods in foreign factories. The current government is pumping billions into agriculture through the Anchor Borrowers Scheme. As of last month, 850,000 smallholder farmers had benefited from the Central Bank of Nigeria (CBN)’s N160 billion under its Anchor Borrowers’ Programme (APB) in the last three years, Godwin Emefele, CBN governor, said. “In the past five years, the CBN has achieved a lot in agriculture, not restricted to rice production but spread over targeted 15 different commodities. “For instance, since the launch of ABP in November 2015, over 850,000 small holder farmers have benefited from N160 billion disbursed under the programme,” Emefele said at a town hall meet-

ing on Agriculture in Dutse, Jigawa. A lot of activities are also taking place in the solid minerals sector. Quarrying and other minerals sector grew by 3.08 percent in the third quarter of 2018 from 3.31 percent in the second quarter and 27.45 percent in the first quarter. Symbol Mining, PW Nigeria Limited, Minutor International, African Industries and Mines Geotechniques Nig. Limited, among others, are pumping billions into the mining sector. However, the majority of work done is at the primary level. According to MAN, genuine diversification happens when raw materials are processed into finished products. “So, if I am sending cashew nuts in a raw form, I get $800 per ton, but if it is processed, I get close to $2000 per ton. So the money-making thing here is value addition,” said Attah Anzaku, CEO of AgroEknor, an international commodity trading firm. Experts say a true diversification must look at value addition in all sectors. “The next president needs to look at how to broaden the foreign exchange earnings through other non-oil export products. This is why the next election should be about economy, not politics. We do not need a repeat of the 2016 experience, where oil price fall crashed the whole economy,” said Ike Ibeabuchi of MD services Limited.

Friday 28 December 2018

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BUSINESS DAY

How Buhari failed integrity expectations of ‘former Buharists’ CALEB OJEWALE

n 2015, the decision for most people referred to as “Buharists”, was making a choice between perceived ineptitude and an alternative expected to be firm and unwavering in the face of malfeasance. For emphasis, Muhammadu Buhari was not the favoured candidate for many on the premise of possessing superior intelligence. Also, it was definitely not because he was expected to have a better knowledge or understanding of the Nigerian economy. Buhari emerged as President because majority (at least as far as election results reflected), were fed up with an administration which appeared neck deep in corruption. And no, the

corruption tag is not an exaggeration, but a reality, one which manifested in how the previous administration tolerated individuals accused of financial impropriety and all forms of malfeasance. The disappointment today, however, is that the administration of Muhamadu Buhari has not done better than the “corrupt government” it claims to have unseated. Allies of the President have several allegations of corruption – the one thing Buhari professes to hate – hanging around the necks, and they have carried on as if those allegations are ornaments adorning them. “I belong to everybody and I belong to nobody”, these words spoken in Buhari’s inaugural speech, gave the impressions that Nigeria finally got it right. In the months following his election, many Nigerians spoke of improved electricity supply, and like every other thing that appeared to be magically ‘turning out well’, all were attributed to the president’s body language. Three and half years later, and it appears the president’s body has either run out of language

styles or those in the corridors of power have simply found it to be all ‘bark and no bite’. Many of President Buhari’s closest aides and as it were, ‘kitchen cabinet’, have been hiding under the banner of his integrity to commit series of atrocities. Some of these include the Rasheed Maina reinstatement scandal, Ayo Oke, NIA’s former DG and the unexplained cash haul at Ikoyi. There has also been blatant disregard for the rule of law, defiance of court judgments, and executive rascality such as the barricade of the National Assembly by Lawal Daura, sacked DG of the SSS, who would have kept his job if the act had taken place with Buhari in the country. Abba Kyari, the Chief of Staff has been alleged to receive bribes on at least two publicly reported occasions, but till date, investigations to ascertain his guilt or innocence have either been ‘inconclusive’ or simply never commenced. In the early months of the Buhari administration, it would have been unheard of that an alleged pension thief would be

smuggled into his former office, right under Buhari’s nose. Abdulrasheed Maina, former chairman of the Presidential Task Force on Pension Reforms, allegedly stole over N2 billion of pensioners funds and since 2013, has been on the run. Interestingly, the saintly government of President Buhari - if accusations and counter accusations in the presidency are anything to go by – saw the Attorney General’s office, writing the Federal Civil Service Commission for Maina’s reinstatement. This is at least according to Winifred Oyo-Ita, Head of Service of the Federation. Babachir Lawal, former Secretary to the Government of the Federation (SGF) was initially suspended over alleged violations in the award of contracts under the Presidential Initiative on the North East (PINE). The suspension came after months of a baffled public, wondering how the presidency’s ‘coordinating arm’ as it were, had lost the saintly credentials expected of Buhari’s cabinet members. The former SGF is by no means the only member of the Buhari

administration who has been ‘found wanting’, he simply got caught, at least by the report which indicted him. The dismissal of Bachir Lawal is one of those decisions President Buhari was obviously forced to make. To emphasise this, Lawal was one of ‘special guests’ at the launch of a campaign group for Buhari’s re-election, at the Banquet Hall of the Presidential Villa. If the President truly believed his former SGF was a thief as indicted by the report of a committee headed by Vice President Yemi Osinbajo, then he would have maintained a dignified distance. Some of his ministers have also not been without allegations of corruption, despite working for a supposedly corruption intolerant President. The Buhari that has manifested today is not what many of his followers bargained for. Accepted, he was not expected to have the intellectual prowess to navigate Nigeria’s economy through the recent turbulent periods, but his attitude in condoning corrupt people who surround him has not only been alarming, but very disappointing.

NEWS

Wage: NECA warns on implication of impending labour strike …tells FG to transmit N30,000 bill to N/Assembly JOSHUA BASSEY

ig er ia Employers’ Consultative Association (NECA) has expressed concern about the negative implication of the proposed nationwide strike by the organised labour, warning that the fragile Nigerian economy cannot absorb further shocks from such action. Timothy Olawale, directorgeneral of NECA, who reacted to the planned strike in January 2019, said the economy was still struggling from the impact of the recent and urged the Federal Government to avert the proposed strike. The Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and United Labour Congress (ULC) had last week jointly gave the Federal Government till

31, 2018 to transmit the N30,000 recommended new national minimum wage to the National Assembly for action failure of which they could longer guarantee industrial peace in the country. The ultimatum expires next Monday. Olawale, speaking on the issue on Thursday, said: “It is worrisome that as a nation whose economy is still reeling under the effects of recent recession, government would needlessly further drag the economy into avoidable abyss. The colossal loss borne by businesses during the warning strike in September, 2018 is yet to be recovered and further disruption of business activities might sound the death knell for many enterprises. The DG further expressed worry at the indecisive disposition of the Federal Government

towards concluding the process leading to the implementation of a new national minimum wage. He said: “Globally, there is a recognised and acceptable process of setting a National Minimum Wage as enshrined in the ILO Convention 131. This process had been adopted in previous National Minimum Wage setting in Nigeria and was meticulously applied by the National Minimum Wage Committee inaugurated by the President in December, 2017. It was expected that following the submission of the National Minimum Wage Committee’s report to the President on Tuesday, November 6, 2018, expedited action would be taken in transmitting a bill to the National Assembly as promised by President Muhammadu Buhari”. Olawale recalled that the

president had promised to transmit an executive bill to the National Assembly for its passage within the shortest possible time. “It is, therefore worrisome that seven weeks after the submission of the committee’s report, government is planning to subject the report to another technical committee, unknown to the process of setting minimum wage. This delay in the completion of the process had led to the proposed strike by Labour, which is totally undesirable and should be avoided.” Explaining further why the strike should be averted, the NECA DG said that with the rate of unemployment as recently released by the National Bureau of Statistics (NBS), it is expected that all hands be on deck to ensure the continuous survival of businesses.

Proposing a way out of the threat by the labour union, he urged that “the President should, without delay, transmit an executive bill to the National Assembly as promised to enable it finalise the process leading to the enactment of a new National Minimum Wage Act. He said businesses and the economy at large cannot afford another avoidable strike. He noted that the private sector, which is supposed to be the engine-room of national development, is usually the victim of such strikes. The new DG of NECA concluded that, “businesses are presently encumbered by several challenges and any avoidable Labour action at the beginning of the year or any time whatsoever would be counter-productive, disruptive and would not be welcomed”

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World fails to protect children in conflict – UNICEF

he United Nations Children’s Fund (UNICEF) says the future of millions of children living in countries affected by armed conflict are at risk as warring parties continue to commit grave violations against them. Manuel Fontaine, UNICEF director of Emergency Programmes, who disclosed this in a statement on Thursday in Abuja, lamented that world leaders had failed to hold perpetrators accountable in spite of these violations, among other crimes. “Children living in conflict zones around the world have continued to suffer through extreme levels of violence over the past 12 months and the world has continued to fail them. “For too long, parties to conflict have been committing atrocities with neartotal impunity and it is only

getting worse. Much more can and must be done to protect and assist children,” Fontaine said. He noted that children living in countries at war have been under direct attack, been used as human shields, killed, maimed or recruited to fight. He specifically noted that rape, forced marriage and abduction had become standard tactics in conflicts from Syria to Yemen and from the Democratic Republic of the Congo, to Nigeria, South Sudan and Myanmar over the course of 2018. According to Fontaine, in Afghanistan, violence and bloodshed remain a daily occurrence with some 5,000 children killed or maimed within the first three quarters of 2018, equal to all of 2017 and children making up 89 percent of civilian casualties from explosive remnants of war.

He further noted, “In northeast Nigeria, armed groups, including Boko Haram factions, continue to target girls who are raped, forced to become wives of fighters or used as ‘human bombs. “In February, the group abducted 110 girls and one boy from a technical college in Dapchi, Yobe State, while most of the children have since been released, five girls died and one is still being held captive as a slave. “Cameroon has seen an escalation of the conflict in the North-West and SouthWest regions with schools, students and teachers often coming under attack. “In November, more than 80 people, including many children, were abducted from a school in Nkwen, in the north-west of the country and released a few days later. “A total of 93 villages have allegedly been partially or totally burned due to con-

flict in the areas with many children experiencing extreme levels of violence. “In the Central African Republic, a dramatic resurgence in fighting has enveloped much of the country, with two out of three children in need of humanitarian assistance,” he noted. The director also noted that in the Democratic Republic of the Congo, interethnic violence and clashes between security forces and armed groups in the Great Kasai-region and eastern provinces of Tanganyika, South Kivu, North Kivu and Ituri had a devastating impact on children. Fontaine lamented that the response to the ongoing Ebola outbreak has been seriously hindered by violence and instability in eastern DRC, adding that an estimated 4.2 million children are at risk of Severe Acute Malnutrition (SAM).

L-R: Okemini Otum, CEO/ founder, Rabbington Media; Emeka Nwosu, facilitator, MTN Facebook Training; Chinedu Okwu, coordinator, brand and communications, MTN Nigeria, and Damilola Runsewe, senior manager, SME segment, MTN Nigeria, at the MTN/Facebook training for SMEs in Lagos.

Okowa signs N390.3bn 2019 Appropriation Bill into law FRANCIS SADHERE, Warri

elta State governor, Ifeanyi Okowa, on Thursday signed the 2019 Appropriation Bill of N390.3 billion into law. The governor, who signed the bill in Asaba, said early signing of the bill into law would give his administration room to utilise the dry season to engage in construction works. According to Governor Okowa, “This is very important for governance, because, it gives us room to utilise the dry season to construct roads and provide other infrastructures before the commencement of the rainy season.” The 2019 budget is made of a capital expenditure of N233.2 billion and a recurrent expenditure of N157.1 billion. He commended the Del-

ta State House of Assembly for the early passage of the appropriation bill, describing the state legislature as great partner in the delivery of dividends of democracy to Deltans. “With the signing of the appropriation bill into law today, it means power has been given to the executive to start implementing the budget; we now have enough room to perform. “With the cooperation and partnership of the Delta State House of Assembly in the course of 2018, we have worked in harmony putting Delta State first; together in the last three years plus, we have been able to impact positively on infrastructure development, we have constructed roads, built a lot of schools, improved on the health facilities and provided a lot of jobs for Deltans,” the governor said.

He continued, “Due to our achievements, there is peace in Delta State; we thank Deltans for the partnership, it has yielded great results and we are confident that as we are leaving office in 2023, we would have left a lot in the state that we would be proud of and Deltans will be happier.” It would be recalled that Governor Okowa had on October 17, 2018, presented a budgetary proposal of N367 billion to the Delta State House of Assembly. Presenting the approved bill to the governor for his signature, the speaker of the Delta State House of Assembly, Sheriff Oborevwori, accompanied by the Clark of the House, Lyna Ochulor and other principal officers, disclosed that the bill as presented by the governor passed through rigorous process before it was approved.

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Friday 28 December 2018

25 states sold petrol above MTN leverages survey pump price in November platform to help businesses gain customer insight OLUWASEGUN OLAKOYENIKAN

n spite of government’s efforts to solve the lingering fuel crisis in the nation by fixing the pump price of Premium Motor Spirit (PMS), otherwise known as petrol, at N145, most states sold the product at higher prices, data from the National Bureau of Statistics (NBS) show. Of the 36 states in the federation and the Federal Capital Territory (FCT), Abuja, 25 states sold PMS above N145 per litre, giving more than 22 states in similar category in the previous month. The average price paid by Nigerians for PMS rose to N147.20 in November by 0.16 percent, compared with the previous month and 1.27 percent relative to the same month in 2017. Nigeria, Africa’s largest producer of crude oil and one of world’s biggest exporters, is challenged with the need to supply fuel to its growing population as it imports most of its fuel for domestic consumption. The country’s four refineries with a combined capacity of 445,000 barrels per day cannot operate at half of that volume. Consequently the country experiences recurring shortage of PMS, especially at festive periods. In May 2016, the Minister of State for Petroleum Resources, Ibe Kachikwu, announced an upward review of PMS pump price by the federal government from N86.50 to N145.00, and directed filling stations across the country not to sell above that price.

SEYI JOHN SALAU

n response to helping small and medium business owners tap from the benefits of digital and analytical survey platforms, which offer businesses smart ways of getting customer’s insight to improve service delivery, MTN Smart Survey is to enable smart business owners leverage market research in developing effective strategies for business growth. In realisation that there is nothing more important than the opinion of the consumers when it comes to marketing or business positioning, MTN Nigeria launched the business tool as an enabler. However, without the approval and buy-in of the public, it would be hard to get any product or concept off the ground. Market and consumer surveys provide detailed insights into competitors, and aid in understanding customers’ preferences and discomforts. Consumer surveys are used in analysing latest market trends, consumer buying patterns, economic shifts, and demographics. Useful as these surveys may be, many businesses are unable to obtain the insights needed for business decisions. Therefore, MTN Smart Survey, which is offered in collaboration with Communication and Marketing Research Group Limited (CMRG), provides an electronic medium for conduct and administration of surveys specifically targeted to a group of MTN subscribers.

Holidaymakers, residents commend Edo huge investment in road infrastructure

olidaymakers and residents of Edo State have lauded the state government’s strategic investment in road infrastructure across the state, which they say made homecoming for the Yuletide a memorable experience. Benjamin Osayande, a Lagos-based media practitioner, said: “I arrived Benin City two days to Christmas to enjoy the festivities with my family and friends. I am not a politician, but I must acknowledge the great work the current Edo State governor, Mr Godwin Obaseki is doing in the area of road rehabilitation and reconstruction. “It has been so easy for me to move around because most of the roads that were impassable about a year ago, are now motorable, while work is ongoing on others.” Osayande said, “From

Omoruyi Street in Sokponba Road where I grew up, to Upper Sokponba Road and the Government Reservation Area (GRA), so many major roads and streets have been fixed without any fanfare as you see in other parts of the country. Obaseki is transforming Edo State without any noise being made about his achievements.” According to the media practitioner, “I get the same feedback from my friends in Edo Central and Edo North Senatorial Districts and I am constrained to ask where he is getting the funds for the road projects, at a time most state governors are owing civil servants. Obaseki deserves our prayers and support because if he continues at this pace, he would join the league of the best leaders we have ever had.” Madam Agnes Isokpunwu, a London-based nurse, said she had been praying

for the Edo State governor for saving her property on the popular Lucky Way in Oregbeni, with the reconstruction of the road. “I invested much of my savings on the property many years ago but had to abandon it when the access road became impassable. Crime rate in the area increased and we all fled the area. “With the high-quality road work and drainage facility, I have moved into my property after years of fleeing the area and life is back around Lucky Way, thanks to our amiable governor, Mr Godwin Obaseki.” Residents of Musheshe Area and other streets behind Ugbekun Primary School are also delighted at the prospect of having their streets tarred, as construction work progresses on several streets and roads in the area.

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NEWS YOU CAN TRUST I FRIDAY 28 DECEMBER 2018

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Opinion Nigeria and the new Global Apartheid

am not supposed to write this article. As presidential candidate of the African Democratic Congress (ADC) aspiring to lead the high magistracy of our federal republic come 2019, I am supposed to genuflect before the world powers for their endorsement. Apparently, we Nigerians have reached a tacit understanding that whoever rules our country must be someone who has the imprimatur of foreign powers. And so our leaders beat their paths to their gates. Everybody tells me that my campaign has not started if I have not made the obligatory pilgrimage to Chatham House, the Royal Institute of International Affairs, in London. I have reminded my interlocutors that, as a graduate student, I researched in Chatham House’s library, a rather cramped 18th century building located at St. James’s Square in the heart of London. Yes, it ranks among the best policy think tanks in the world, rivalling America’s Brookings Institution. But it is just another celebrated NGO. I am not sure that I convinced them. It seems clear to me that the confidence of our leaders and intellectuals has been broken. We can no longer think for ourselves. We no longer can trust even our own shadows. We only trust what others say about us and we look to foreigners to validate whatever ideas we come up with. We are victims of what late Kenyan political scientist Ali Mazrui termed “Global Apartheid”. I am not one of those who see global conspiracy behind everything that happens in Africa. But I know that conspiracies do happen. If in doubt please consult the works of the eminent American historian and political thinker Carroll Quigley. Quigley taught the young Bill Clinton

as an undergraduate at Georgetown University in Washington DC. He apparently made a strong and lasting impression on the future president. Quigley wrote the influential book, Tragedy and Hope: a History of the World in our Time (Macmillan 1976). He also wrote The Anglo-American Establishment: From Rhodes to Cliveden (New York: Books in Focus, 1981). In both works Quigley unravelled how secret groups that control the system of Atlantic power; wielding an influence that spreads throughout the world well out of proportion to their actual numbers. Quigley points to Cecil Rhodes, the robber baron who raped Southern Africa for gold and diamonds; later becoming one of the richest and most influential figures in the world. A whole country, Southern Rhodesia (now Zimbabwe), was named after him. I share the same alma mater with Cecil Rhodes -- Oriel College, Oxford. Last year the College wrote to me for my opinion on whether his statue should be removed from its grounds in the wake of a students’ campaign, “Rhodes Must Fall”. The Oxford Union had voted for its removal. Rhodes left behind a large endowment that annually brings Rhodes Scholars to Oxford – among the brightest young men and women anywhere in the world. I happen to be on the Committee of the Rhodes Scholarships for West Africa. I wrote back recommending that we let “sleeping dogs lie”. I believe he made up for his sins by giving so much to help generations of students. Rhodes’s original objective was to create an elite brains trust that will govern the English-speaking world, and by extension, the entire civilised world.

They may not be a secret society, but their influence is worldwide and deep. Today, the world is governed largely by secret confraternities. One of those is the Bilderberg Group founded by Prince Bernhard LippeBiesterfeld of the Netherlands. It held its first meeting in 1954 in the Dutch provincial town of Bilderberg. Membership is strictly by invitation only. They usually hold annual meetings in undisclosed locations. A strict code of secrecy is rigorously enforced. This is where the fates of nations are sealed. Africans are excluded. Another exclusive club is the Trilateral Commission founded by business mogul David Rockefeller in 1973. Its aim ostensibly is to foster cooperation between North America, Western Europe and Japan. One of the brains behind the group is former US National Security Adviser Zbigniew Brzezinski. He has published a futurological work on the world in the next one hundred years. Ominously,

‘

The duty of our generation of leadership is to be the guardians of the New Africa. The African people are waiting for Nigeria to come up with the philosopherking who will rule with vision, justice, courage and righteousness

, HumanAngle

FEMI OLUGBILE Physician, psycho-profiler and essayist

t is the end of another troubled year in the history of Nigeria and Nigerians. There has been plenty of official efforts to persuade people that their lives are not so bad, or at least that things are getting better, and there is hope for the future. Festivals are landmarks and signposts in the life of society, and there are very few places in the world where they carry as much significance for the average individual as they do in Nigeria. There are also few countries in the world that have as many festivals and public holidays as Nigerians do. That there are a large number of festivals and holidays in Africa should surprise no one. Ali Mazrui – Kenyan academic and social scientist, in the famous documentary history which he wrote and narrated in the 1980s, spoke about Africa’s ‘Triple Heritage’, referring first to the indigenous culture and way of life, including its world view and religions developed over centuries and shaped by the land and climate. Second was the imposition of Western colonialism on Africans. And third was the advent of Islam. There are many controversial aspects to Professor Mazrui’s documentary and subsequent book, including its effort to portray Christianity as more ‘alien’ than its counterpart. – Islam. What Ali

Africa does not feature at all. Another of the big secret clubs is the Council on Foreign Relations (CFR), an organisation that brings together major figures in the public and private sectors to shape the course of American foreign policy. The greatest movers and shakers in the United States serve their apprenticeships on the CFR. They also happen to be the publishers of the influential journal, Foreign Affairs. Over the last decade they have never published anything positive about Nigeria. I once submitted an article to its editor at the time, Fareed Zakaria, and he wrote back with the terse verdict: “Too long”! Another of the big secretive clubs is the international Freemasons. These groups are particularly influential in the Francophone world. Nearly all the leaders of post-independence Francophone Africa have been members of French Masonic lodges. Their loyalty is, first and foremost, to their colonial masters in Paris. Africa comes last in their scale of priorities. Several of our English-speaking leaders have also been freemasons and Rosicrucians. We have reason to believe that the current world plan is to systematically cripple Nigeria and to render her a comatose elephant like the Democratic Republic of Congo. Every year we used to receive prognostications from influential global think tanks to the effect that “Nigeria will disintegrate”. We may have defied those evil prophecies, but we have certainly been brought to our knees by foreignbacked Niger Delta reptiles, Boko Haram and rampaging “herdsmen”. Boko Haram began innocuously enough as a bunch of local thugs in Maiduguri. But it soon metamorphosed into a deadly international

terrorist organisation with links to Global Jihad, al-Qaeda and others. They also found new paymasters in world powers that maintain training camps in Timbuktu, N’Djamena, Cameroon and the southern parts of Niger Republic. The insurgents are being trained and equipped by shadowy western armed forces and intelligence services that they then send to kill, maim and destroy in our country. Through sophisticated satellite technology, they provide vital information to the insurgents on the movements of our troops which are then waylaid and mowed down like green grass. It has been the worst humiliation for the once legendary armed forces of our great federal republic. Oil is a major factor. Last year a team of Nigerian scientists and engineers exploring for oil in Lake Chad were kidnapped by the insurgents. France wants exclusive control of oil resources around the Lake Chad area. The same forces are behind the so-called “herdsmen” militias. Bilateral aid agencies and their local Jihadist collaborators have armed them to the teeth to wreck genocidal havoc throughout the Middle Belt and beyond. And nobody is talking – neither Washington nor London nor Berlin nor Paris nor Brussels. Boko Haram and the herdsmen militias are like termites that are eating up the vital innards of our nation. Our enemies expect that, before long, the house will come down like a pack of cards. International powers are well aware of Nigeria’s extraordinary potentials. In another generation, our population would be 400 million; exceeding the United States to the third position behind China and

or ‘happy Hanukkah’ or ‘Eid Mubarak’. Although the practice has been long existing, the fact has become one of the strong elements in recruiting otherwise sensible men and women, especially Christians, to the support of one of the most despicable specimens of human being ever to have inhabited the highest reaches of power in America –

164 BC and controlled a large part of the world, including Jerusalem and The Levant. Following the rebellion, the Second Temple in Jerusalem was purified and the wicks of the chandelier – the menorah, miraculously burned for eight days, even though there was only enough oil for one day’s burning. The festival usually falls towards the end of the year. This year, it was observed from 2nd December to 10th December. In 2019 it will run from 22nd December to 30th December, straddling the Christmas season as it is wont to do from time to time. There is yet another December celebration in the USA. It is ‘Kwanzaa’, celebrated by African Americans and some other pockets of the African diaspora. It was created in 1966 by a Black Power activist named Ronald McKinley Everett, who in the manner of African-Americans wishing to ‘Africanize’, changed his name to ‘Maulana Karenga’. It is advertised as a celebration of family, community and culture, lasting a whole week, with exchange of gifts and greetings. In its original form, it was based on a belief that Christianity was a ‘white’ religion which should be shunned by black people. In later years, it has softened its hostility and now many practicing African-American Christians also celebrate Kwanzaa, which is observed from December 26 to January 1. The name is supposed to be drawn from ‘Kwanza’ - Swahili for ‘first fruits’ and is meant to be a symbol of pan-Africanism, mutilated out of shape as usual and rendered meaningless by the addition of another ‘a’ at the end. To further complicate the matter of festivals in polyglot United States of America, there is a substantial Muslim popula-

The end of another year, and why ‘merry Christmas and happy new year’ is better than ‘happy holidays’ Mazrui has done by introducing the description ‘Triple Heritage’ in 1986 is to state a fact that is only commonsense in 2018, which is that the Africa had, and still has

indigenous religions, to which have been added the influences and formal rituals of Christianity and Islam, both of which are ‘alien’, in reality, none more or less so than the other. All the three tendencies daily influence and even dominate the lives and living of the people, and one of the obvious signs of this dominance is the plurality of festivals and celebrations in existence today. In Nigeria, there is a greeting for every celebration, and it is unique onto itself. This ten-

dency to have a unique greeting for every occasion and circumstance is nowhere on earth more developed than among the Yoruba. There is a greeting for when you go out, and when you come in. There is a greeting for when you cough, which is distinct from when you sneeze. And of course, every celebration has its unique characterization. There is a greeting at Eid al-Adha - ‘Ileya’, when the rams are slaughtered, and the neighborhood children of all religions gather round salivating as they await their share of the feast. Because every celebration has a name, and a character, it is announced and celebrated, by name. Celebration is no ‘one size fits all’,whether it is New Yam Festival, or Osun Festival, or Easter, or Ileya. There is no such thing as ‘happy holidays’. By contrast there is a tendency in America, to greet people with ‘happy holidays’. This is instead of saying ‘happy Christmas’

Donald Trump. It is a subtle but important matter, which many people miss, even now. And it may be one of the reasons why Donald Trump, much reviled as he is by men and women of good reason, will win a second term in the office of President. Hanukkah is the Jewish festival of light. It is an eight-day celebration. Its history lies in the successful revolt by the Maccabees – a Jewish warrior sect, against Antiochus IV Epiphanes– a Greek emperor who ruled the Seleucid Empire from 175BC to

‘

it shows the state of the struggle afoot for the soul of America, when an irreverent, amoral Donald Trump can stand before a Christmas tree and emphatically greet his countrymen ‘Merry Christmas’ and be applauded as an embodiment of their history and their values, even while acknowledging other religions

THE NEW WEALTH OF NATIONS

OBADIAH MAILAFIA Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

India. We are destined for a world power status. Despite the Western IQ propaganda, we are a land of legendary geniuses. Our students outperform their counterparts in top Ivy-League universities. Our cultures date back to Pharaonic Egypt and the Cushitic civilisations of the Nile Valley. We have abundant natural resources. Through subterfuge and all sorts of hare-brained stratagems, world powers are hell-bent on ensuring that we do not become a self-confident, inner-directed, technologicalindustrial state. They want to kill our destiny and ensure we never join the front ranks of the leading nations of the 21st century.

Continues online at www. businessdayonline.com tion, and the festival of Eid al Adha – the ‘Festival of Sacrifice’ – which symbolizes Abraham’s readiness to sacrifice his son on God’s instruction, later to be replaced by the sacrifice of a ram, occasionally falls in the month of December too. Part of the beef of the Christian right-wing, those who brought Donald Trump to power, and may yet keep him in power for another term, is that President Barack Obama, in being ‘supercool’, de-emphasized America’s Christian core values and antecedents. Instead, he wanted to be everything to everyone. In his White House, and in his America, it was not ‘merry Christmas’ or ‘happy New Year’ or ‘happy Hanukkah’ or ‘Eid Mubarak’. The standard ‘Obama-ism’ was ‘happy Holidays’. It is probably not an entirely fair criticism, since ‘happy Holidays’ was used as greeting before Obama and is used by many even now. But it shows the state of the struggle afoot for the soul of America, when an irreverent, amoral Donald Trump can stand before a Christmas tree and emphatically greet his countrymen ‘Merry Christmas’ and be applauded as an embodiment of their history and their values, even while acknowledging other religions. In Nigeria, despite all our troubles, there are no such subtleties. A few days ago, it was ‘merry Christmas’.It is still running. Soon it will be ‘happy New Year’. In the not too distant future it will be one or other of the major Islamic festivals. And then any number of the others – ‘New Yam’, Osun, others. And people will celebrate. Merry Christmas, and a happy New Year to all the readers of this column.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

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Women’s Hub

elcome to another edition of Women’s Hub. We trust your year has been amazing. As we draw close to the end of the year, it is our prayer that you end it well and that 2019 will be a fruitful year for us all. On the cover of this edition is Layal Tinubu and she is passionate about promoting the need for children’s learning space. We also share with you on the views of different individuals and how they compared the festive season for this year with that of 2017. We identified some female celebrities who rocked the red colour in their own way for Christmas. Find out who made the list. We have started a series on Ladies Of The Night, where we will be sharing the stories of ladies who fend for themselves through the means they have chosen. They hope for a better tomorrow. Their stories are truly mind bugging. Follow us as we share their stories in different editions. She said Yes on Christmas Day. Find out who and what happened. The only hint I can give is that it’s between Lillian and Deji. Ruth Udemba’s experience at NYSC will be worth your time. These and so much more we have for you in this bumper edition Enjoy!

Kemi Ajumobi kemi@businessdayonline.com

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Women’s Hub

LAYAL TINUBU, Promoting the need for e c a p s g in n r a e l 's n e r d il h c W R I T T E N

BIOGRAPY ayal Tinubu is a former PwC (Price waterhous eC o op ers) Senior Associate Consultant. From 2014-2018, she rose from Intern to Senior Associate Consultant where she was charged with working with the Country Management team, supporting the country senior partner on business development activity for the firm. Throughout her years at PwC, Layal provided consulting services to the advisory arm of the business, worked within the Africa Business Group supporting business development activity and identifying opportunities from the UK and Africa region by networking and building relationships with key stakeholders. Tinubu received her MSc in Entrepreneurship and Business Management in 2013 at the University of Surrey and her BA in Politics and African Studies from SOAS University of London. Both of which she graduated with honours. She successfully ran a Spark campaign for Africa interrelated information and produced a who is who PwC Africa directo-

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ry understanding: Africa leadership structure, Africa firm structure and key contacts for operations, resourcing, and proposals in these regions. She is co-founder of the Noella Foundation, which is a non-profit private sector led organisation with the goal to drive change and improve Nigeria’s economy via entrepreneurship, innovation and sustainable ideas and action plans. In 2018, Layal birthed Tots Toys, a children’s educational toyshop and learning space which provides a range of educational items all intended to aid children’s development and learning through play. Tots Toys offers its space for book readings, interactive sessions and activity groups to keep children engaged – all with the intention of creating a new generation of book readers. EARLY YEARS Although I was born in the UK, I moved to Lagos when I was 4 years old and schooled there until the age of 15 before completing my secondary and tertiary education in the UK. My father was in the shipping industry so in between those years, we moved around a lot. Having lived, worked and studied in different

countries for extensive periods of time, has ultimately influenced my way of thinking and adaptability. Today, I’m able to adapt and be flexible to change. Leaving my comfort zone provided inspiration, awareness and ideas that I wouldn’t likely consider if I continued following the same routine in the same place, day after day. You begin to think of new ways to approach old problems and usually end up taking a career path that wasn’t previously on your radar. PWC EXPERIENCE, WHAT HAS WORKING WITH THEM TAUGHT YOU? I thoroughly enjoyed my experience at PwC – both in the UK and Nigeria firms. PwC prides itself on providing the very best of work experiences and opportunities for its employees. You have to be fully committed and willing to put in the hard work to develop yourself and get the most out of your time there. The learning and networking opportunities are second to none and starting my career at PwC definitely gave me solid footing into the work force. Though the nature of the job is high paced and often stressful, it’s a great place to develop key skills and competencies.

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BUSINESS DAY The skills you develop and the people you meet can have a lasting impact on building a great professional network. Working at PwC taught me how to take charge of my own development. My role within country management allowed me independency as well as the discretion to take initiative and come up with new, effective and efficient approached where necessary. HOW WAS YOUR TRAJECTORY? AS A FEMALE WAS IT MORE CHALLENGING? WHAT ADVICE DO YOU HAVE FOR LADIES HAVING CHALLENGES IN THEIR CAREER? I’d say this was perhaps my greatest reservation when I decided to move back to Lagos finally and start working in an organisation. This is not to say that I didn’t hold these same reservations working in the UK, I did - strongly, however, my career there was short. As a female in the workforce, you are judged more harshly, you usually feel that you have to work or try twice as hard to even be considered half as good as your peers, still only getting half the recognition you deserve. I often doubted myself and my abilities in the workplace, hesitating to voice my opinions on work-related matters out of fear of being stereotyped. Although there were challenges along the way, for the most part, I’ve been lucky to have worked with people I respect throughout my career. Due to this, I knew that most of my interactions at their core came from a place of mutual respect. I also had great female mentors within the workplace that provided me with invaluable feedback and pushed me to be better regardless of my gender. As women, we share a lot of the same challenges at work. My advice is to remind yourself that your perspective and your voice matters. You have to take and keep your place – you can’t dim your shine to make others more comfortable. We have the power as women to make change for all of us. WITH YOUR BACKGROUND IN AFRICAN BUSINESS INDUSTRY, WHAT IS YOUR OVERALL VIEW OF BUSINESS OPERATION IN NIGERIA? HOW CAN IT BE BETTER IMPROVED? Within my role in the African business industry, I did extensive work around the World Bank’s Ease of Doing Business index – which provided a deeper understanding of the key challenges holding Nigeria back from being a more business-friendly environment. Namely, high interest rates, social unrest and an infrastructural deficit. An improvement in infrastructure is essential to building and sustaining an enabling

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business environment. The business terrain in Nigeria is challenging - we are a country blessed with abundant resources therefore it is expected that every necessary aspect needed to drive the economy is put in place to ensure thriving business activities. We have to leverage on the fact that we have both human and material resources that can adequately provide a conducive environment – given the right management. The current government has made a number of good strides towards enabling a better business environment – especially for start-ups. Start-

ing a business is now faster through the electronic approval of registration documents while bureaucracy to register a new business has also been reduced. We are in a time where the entrepreneurial culture has become more encouraged than past years. NOELLA FOUNDATION, RESULTS SO FAR AND WHAT YOU ARE LOOKING FORWARD TO ACHIEVE WITH THEM. I am part of the Planning Committee for the Noella Foundation. Shortly after

BUSINESS DAY its birth this year, we held our first STEP Initiative (Seyi Tinubu Empowerment Programme) - where we welcomed 100 tech startups to pitch their business and after going through the selection process, the winner would be provided professional mentorship and a cash prize towards their business. IN IDENTIFYING WITH THE YOUTHS, WHAT DO YOU BELIEVE ARE THEIR MAJOR CHALLENGES AND HOW CAN THEY BE ENCOURAGED TO BE BETTER CITIZENS? The major challenge I’ve seen is the hindrance caused by our mindset. Our thinking is what ultimately shapes our behaviour and how we respond to set backs and even opportunities when given. As competitive as it can be to get into the corporate or business world, it is still possible for youths to mismanage an opportunity when it comes because they carry their old mindset into their new environment. I think it’s so important to continually renew our mind and evolve for the better as circumstances around us change. TOTS TOYS, REASON FOR ESTABLISHMENT, RESPONSE SO FAR AND PROJECTIONS Tots Toys is children’s educational toy shop and learning space I started in April this year. We offer a range of educational games, puzzles, toys and books all intended

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to aid in children’s development and learning through play. Tots Library consists of over 300 different books for children – books to assist learning, activity books and classic storybooks from international and local bestselling children’s authors. Tots Toys also offers its space for book readings, activity clubs and interactive learning sessions. With the belief that children learn by doing and that their development is a process, I wanted to create a space where the resources and environment to enable this process is readily available and accessible. Tots Toys understands the importance of introducing reading to children at an early stage. We aim to help create a new generation of book readers. PERSONAL AND PROFESSIONAL CHALLENGES Currently, my professional and personal challenges go hand in hand. I like to set myself goals for development both professionally and personally as it allows me to stay on track and focused. I also believe in constantly pushing and challenging myself – it’s exciting to occasionally leave your comfort zone. Running my own business and still dedicating myself to my number one job – being a mother. Professionally, this is just the beginning of my entrepreneurial journey. As rewarding as it is, it does come with a host of challenges. As an entrepreneur, when you find your niche, you’ll also find the good and bad that go along with it. You’re continuously creating your own path, tweaking and adjusting as

needed. You have to enjoy and pursue what it is you’re doing wholeheartedly regardless. GREATEST LESSON LIFE HAS TAUGHT YOU The greatest lesson life has taught me is that you have to trust the journey. Before I do anything, I’ve already run through every possible outcome in my head – often getting caught up in worrying about things I could have done differently or things that haven’t happened rather than focusing and appreciating the now. It’s so important to be present in the now. The truth is that there will always be things that we can’t control. We can only control how we choose to react. That’s the key to appreciating the journey. WOMEN EMPOWERMENT “Feminism isn’t about making women strong. Women are already strong. It’s about changing the way the world perceives that strength.” G.D. Anderson. I personally feel that many people often take views on feminism and women empowerment out of context in the sense that many perceive the conversation as anti-men or as hatred towards men. Essentially women empowerment is about addressing the inequality of women. It’s about ensuring and asserting our equality and our rights.

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Grace Edwin-Okon

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rdinarily, most industry actors would be quick to highlight the quantity of films churned out by Nollywood, or the unique stories which it tells to be factors that facilitated its bloom over the years, but surprisingly, Grace Edwin-Okon, actor and filmmaker said women are responsible for the growth and bloom of Nollywood. She told Women’s Hub that the contributions of women have brought honour to the industry and the global recognition the industry is now enjoying. However, outside the efforts of women, Nollywood’s attractive status was achieved because of the passion, the talents and the human resources in Nigeria (which are) replete in the sector, she said further. “Well, yes, the women!” she excitedly exclaimed. “The women have done really great things. We’ve achieved really great things. As you can see, the first globally sold Nigerian film was sold by a woman to Netflix,” she said, alluding to the hit of Genevieve’s Lion Heart “But beyond that, Nollywood has come a long way because of the passion, the talents and the human resources in Nigeria. We have a lot of talented and intelligent people and we do our best to make sure the industry grows from where we were to where we are going,” she adds. In the same breath, she reiterated how crucial finance is in quality movie production because financing a huge budget film doesn’t come cheap, “so if you don’t have the clout or you don’t have the financial backing, it’s not easy to do film at that level.” Edwin-Okon believes that if there is support from the government or from the private sector, “definitely we would be able to shake the world with our content. We would be able to do bigger and better than what we are doing today,”

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he copper to gold process, that about sums the youth service experience or you can say in another term from employment training to un-employment, depending on the situation. Youth service was totally not the enthusiastic experience I had wanted on my bucket list. The logo, title and clothing gave me the boot camp goose bumps. A lot of fearful thought went through my mind like in

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those horror movies where teens are sent to an unknown place away from the outside world with people you don’t know and no clue about how you are going to survive. I can boldly say that the mind really knows how to play tricks on us because I still remember I really wanted to divert the process but that plan was all destroyed as soon as my mum said I couldn’t work properly in an organisation in Nigeria without my NYSC certificate. My first day on camp was quite tiring and hectic. After packing my necessities luckily, I settled for a long journey to get to the camp site located at Iyana Ipaja. On getting to the camp site, I was told to provide them with all my relevant documents before they searched my box. No metals or glass items were allowed; even your metallic utensils and laundry tools like metal hangers were confiscated to never be returned, which I discovered later on was a preventive measure for any potential harm that could occur during the camping process. Camp felt like a private University which allowed basic youthful freedom to a certain degree. We were given rooms with bunks, few fans, more windows and little or no portable charging ports which led me to my first endowed knowledge of where to eat and have my phone charged to its full percent for the price of fifty (50) naira only. I met girls form different schools, tribes, shades and characters and they felt more like sisters I had known for years rather than acquaintances and Re-uniting with old friends. My allowance majorly went into mami’s dining lounges, eating varieties of food and drinking palm wine occasionally but that doesn’t mean there wasn’t a cafeteria, but I don’t think waiting on the line was as enticing as getting your food right on the spot thus with me being a foodie sacrifices had to be made meaning no laundry service unless it was absolutely required. It had its downside also such as having to wake up to sporting activities by 4a.m and giving up short naps for long lectures which were quite impacting and some I hardly paid attention to especially if I hap-

pen to be sitting on the ground to listen to them.. The worst when it came to dressing up was having to wear the oversize uniform and boot which could never be totally altered to your size and finally having the only pair exchanged or stolen. If you are lucky enough and you have cool friends to hang around with then you will be less or never bored, but honestly, there isn’t the time to be bored when you are shuffling between, sports like volleyball, marching parade, pageants, concerts and friendly gossips amidst laughter about things happening on camp. Camping was eye opening especially when you have youths with raging hormones and fearless characters. (I saw some things quite mouth-opening is all I can say) But all in all, the good people I met and the new language of Chinese which I acquired during the course (Nihao-hello) all made my camping experience memorable. Then the other phase of my fear was joining the working class adult life of working to receive a salary, and trust Nigerian parents they know how to rub it in (you have a salary now go and buy what you want. I don’t have money for you). So my new love became my 19,800 salary that I received and eagerly looked forward to every end of the month. The service year was more of learning and training year to me but it also felt quite mocking. Beside the fear of just going to the camp the biggest scare was being made to teach and as the fate of my service would have it; I became an English teacher in an army school. Luckily for me they paid well and the timing was flexible enough for me to be creative with life. Teaching isn’t all that difficult once you start, the only issue is preparing notes and having to continuously repeat, explain, prepare test questions and supervise. My service time allowed me to enhance my cooking skills, start a side job and enhance myself mentally while never forgetting to save along the way. The hope of having my allowee increased never dwindled until my final moments as a youth copper dawned on me along with panic especially when my friend kept repeating mockingly doing our passing out parade “why are you happy? Do you have a job?” Well, I was just happy I had accomplished a stage of my life where I didn’t have to wear a uniform again. That statement dawned on me after a month with no money coming in; “I wished I could repeat it one more time” was the thought that rushed to my mind, growing up is a scam. But thankfully, I didn’t feel that way long enough. Every stage of life has its benefit, make use of it. Learn, save and be creative with yourself.

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ilian Adedayo has always been an A student, her choice of Civil Engineering as a course of study didn’t come to many as a surprise, though some felt she would study Medicine…well, that was what her classmate while in secondary school ended up studying. By classmate I mean Deji Hopewell. Somehow, Deji and Lilian weren’t best of friends in school because there was a subtle rivalry going on. Lillian topped the class for the females and Deji topped the class for the males. People usually teased them; they believed that with the way their grades often competed with each other, they may end up getting married someday. Lillian wasn’t up for the joke at all and she never hid her feelings about that….if only she knew. After College, they parted ways but both went to America. Lillian went to study Civil Engineering while Deji became a Dentist. When she was done, she began to work with an Engineering firm and she was great-

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ly respected because of her intelligence and proven results. One day, she called in to say she couldn’t be at work, her tooth hurt and she needed to urgently go and see a dentist. They all knew Lillian would never call in to miss a day at work except it was urgent so she was permitted. She was in so much pain she couldn’t drive so the company driver had to take her to the Dentist. While at the reception, and after filling all necessary forms, the receptionist asked her to wait and that she would be called shortly. She went to sit and at some point she had her hand on her head with her eyes closed. It was at this moment Deji saw her, spotted her immediately and walked briskly to his office. He called the receptionist and asked her to bring the file of the lady (Lillian) and that he would attend to her “Ok Sir”, Rachael, the receptionist responded. After few minutes, Rachael called on Lillian to go to the Dentist’s office (Deji). Immediately she opened the door and saw Deji, she said

“No Way!”, though in pain, she went to the receptionist and requested for another Dentist and Racheal responded “Ma’am, Dr. Deji is the Head of that Department and he specifically requested that you be sent to him, you must be truly lucky because he is quite busy and wouldn’t be staying long at work today, I would advise you maximise the opportunity so you can get sorted out quick”. Lillian knew she had no choice and the pain didn’t make things better so she swallowed the humble pie and went back to Deji’s office. Deji was seated with his legs crossed, sipping a cup of tea when she walked in and then she said “So you saw me when you came in?” and Deji responded “GoodDay Ma’am, I believe we saw last in Secondary School, for someone you haven’t seen in a long time, a ‘Hello how are you’ would have sufficed” He said, sipping his tea again after which he stretched out his hand to shake her. Lillian reluctantly stretched out her hand and said “Good afternoon” and sat down.

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There was silence, Deji kept looking straight at her intermittently sipping his tea, she got tired of the silence and said “Deji, this is not a time for jokes, I am in serious pain” she said and Deji responded “I was waiting on you to tell me what it is exactly that brought you here so I can attend to it” he said with a witty smile and even though Lillian wasn’t finding it funny, she was led to the chair where Deji had all the needed equipment and as she laid there, he moved the light to her face, even with the mask over his mouth and nose, ready to examine her tooth, she could see through Deji’s eyes that he was smiling so she asked “Deji what’s funny?”…he pulled down the mask and burst out laughing “What is it again Lillian? You want me to cry while attending to you? Lillian please let me do my work oo, please open your mouth” he teased. Lillian wasn’t having it. After examining her tooth, Deji says he can save the tooth and asked Lillian if she was okay with that. She said “Yes” and he got down to work, cleaned the tooth, filled it and polished her teeth. By the time he was done, though tired, she felt relieved. He helped her up and as she was about to get up, she staggered and Deji caught her in his arms…there was a weird silent 5 seconds moment but Lillian quickly acted “In your mind now, this is our Titanic moment right?” and Deji responded “I should have bruised

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your other teeth so you will be in so much pain and you would not still have the energy to abuse me” and Lillian said “You would have certainly heard from my lawyers” she then added “Seriously though, thanks Deji, I appreciate your help.” He gave her guidelines on care for her tooth, they exchanged contacts, from contacts to calls, from calls to dates, from dates to visits and before they knew what was happening three years had gone. Lillian discussed wanting to come home to Nigeria for Christmas with Deji and he said he couldn’t because he was quite busy. She understood because of the nature of his job but they agreed to face-time on Christmas Day. Her parents were so happy to see her, they asked about Deji and she explained he was busy. Her parents understood. On Christmas Day, Lillian went out to get something and her younger sister Dabira said she would love to accompany her. While they were out, her sister’s phone kept ringing and for some strange reasons Dabira was trying to extend their stay outside. “Oh come off it Dabira, Deji and I are skyping soon so I have to get back home”. By the time they got home, Lilian could hear her favourite love song ‘Endless Love’, the version sang by Mariah Carey and Luther Vandross playing but noticed it was from her

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Our annual Christmas carol service is always fun and we always look forward to it. The special songs, hymns, message and all. This year was peculiar because we had award presentation for the best achievers in each department. And they were all given cash rewards. They certainly didn’t see it coming. Grateful to the Publisher for the kind gesture, they were filled with gratitude. The shocker was for the General Manager, Adeola Ajewole, who didn’t see her award coming at all. From where I sat, I could see her cover her mouth in shock while accolades went on and on for her by the Publisher. Filled with gratitude and teary eyes, “Thank

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room so she said “Who is playing my song in my room?” she called out “Mum…Dad… where is everybody?” she hurriedly got to her room and immediately she opened it, she saw a bouquet of fresh red roses, Vosges Bacon Chocolate in a purple box all inside a heart shaped collection of rose petals… “What is going on here?” she asked and the door opened and as she turned to see who came in, behold it was some dapper looking, well suited Dentist called Deji…Lillian exclaimed “It’s a lie!! You said you could not make it to Nigeria…it’s a lie, this cannot be real, my eyes are deceiving me…No Way!!” She ran to him and gave him a tight hug and he kissed her subtly. Took her into the heart shaped with petals, said so many nice things to her after which he went on one Knee and ended it in a unique way “…having said all of that, will you Lillian, my intelligent, Engineer, stubborn, hard to get babe please do me the honours of being Mrs Hopewell?” and she began to scream “Yes! Yes!! Yes!!” as he slipped the ring into her finger, the door opened and all her family members rushed in. “Mum, dad, Dabira, Joel, you all knew?” and he mum said “Wellllll…..” with a smirk on her face. It was indeed a joyous mood. Let’s just say wedding bells are ringing and 2019 is gonna be lit!

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you, thank you thank you…” was what she repeatedly said. Immediately after the awards, we went straight to the Carol service. One after the other, each Choir member rendered their special numbers and hymns were sung in one accord. I must confess that coordinating the choir wasn’t an easy task, especially because I was just done with Inspiring Woman Series 8 event and went straight into coordinating the rehearsals. We rehearsed intensively and gave it our all, from the picture above; you can tell that The Brook Choir of BusinessDay had fun!!!! When we were done with the Carol proper, we went straight into praises, thanking God for all He has done for us. From traditional gospel songs to contemporary, we sang and dance and rejoiced. Finding a way to end the event became a chore, how do you end such an exciting, inspiring and soul lifting event? Everyone raising their voices in one accord in praises to God. Somehow, we managed to find a way to end it…lol. When we were done, thanks to our amazing HR Department, we later enjoyed our sumptuous meal and drinks. What a way to end the year right? We are looking forward to 2019 edition already and who knows, maybe…just maybe, you will all be invited. HAPPY NEW YEAR IN ADVANCE!

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Ngozi Nwosu

MOTHERS BLAMED FOR DEVELOPMENT PROBLEMS GIRLS EXPERIENCE W R I T T E N

easoned actress and producer, Ngozi Nwosu, blamed mothers for most of the problems girls experience through their development in life, while speaking to over a thousand girls who gathered to learn about their rights as girls as well as right to quality education and sexual reproductive healthcare, at an event in Lagos. She said mothers are responsible for those problems because they fail to educate their girls about life, and also because they tend to train girls in a way that prevents them from doing certain things they consider being things meant for the boys. This then results in the discrimination girls now experience and reinforces the belief that a woman’s or girls’ place is the kitchen. She also stressed the need for mothers to be close to their girls and make out time for

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them, adding that a lot of girls don’t know a lot, yet they (mothers) feel they know a lot, because both the girls and their parents are not ‘friends’. “I’m going to blame our mothers for some of the disasters we go through in life. I will blame our mothers because they feel you are a girl child, so you are not supposed to do this or you are not supposed to do that. Or you are limited to this or that. But no! As a girl, you should know how to stand firm and strong. You should know when to move and when not to move. “Your mother should be able to tell or lecture you at a particular age about life, and sex. A lot of girls make mistakes because their parents shied away from telling them ‘if a boy ‘toasts’ (woos) you at a particular age, just let me know”, the actress said.

While Nwosu educated the girls on hygiene, she also encouraged them to always talk to their mothers whenever they suspect anything unusual in them. “If you find out any change in you, talk to your mum. Your mum should be your best companion, and you need to go close to her. Always let your mum know that this and this is what is going on because a problem shared is a problem solved. When they know about it, they will be able to nib it in the bud,” she said. “The friends you keep as you are growing up are very important. Don’t keep a friend that will deceive you, don’t keep a friend that will short-change what you want to be in life. Choose who you want to be,” she cautioned the girls.

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Book Review

REVIEWER: RUTH UDEMBA PUBLISHER: KACHIFO (2018) AUTHOR: AKWAEKE EMEZI In the course of the story, the readers are given more revelation such as how Ada’s lack of parental care and protection broke her mental balance. She is molested as a child and this traumatizes and causes her to find protection and sanctuary amidst her innate possessors. Ada tries to look for help through religious and medical help but the weakness of her mind and body doesn’t allow this to be successful causing her to look to death as an escape from her life and cruelty of the world. Thankfully the words of a former victim encourage her to take a stance and accept who she is and the pain within, while believing that she is and can be stronger person for herself. The novel delves into the spiritual moral, social and psychological development of the protagonist. It displays the arduous journey of Ada’s self-awareness and

BIOGRAPHY he 31 year old Igbo Tamil writer of Malaysian descent was born in Umuahia and bred in Aba. She made her debut with her first novel titled FRESHWATER. She has won various awards such as the 2017 Commonwealth short story prize for Africa for her short story “who is like God”, the Morland writing scholarship and others. She is a Nigerian writer and a video artist currently residing in Brooklyn. REVIEW FRESHWATER is an autobiographical bildungsroman novel. Set in the 19th century Nigeria, the novel in a linear descriptive style tells of the story of Ada the second child and first daughter of Saachi a Malaysian woman and Saul an Igbo, Nigerian man. She is a smart girl altered by the spirits of the little gods of her ancestral hometown who reside within her. Born as an ogbanje child, with the purpose of dying to cause sorrow, she is tormented gradually by myriad of spirits who want her life and in order to strike a peaceful balance so as not to go completely mad, Ada consciously makes blood sacrifices through suicidal acts such as cutting and grafting her skin till she bleeds. The spirits are satisfied with this and a bond of understanding is created. Ada awakens the spirit characters through her beliefs and pain, like when her sister has an accident, when she is raped by her boyfriend and referred to as a boy. We see her encounters and how they have affected her both positively and negatively, but we also see the changing and saving power of love on humans.

awakening while making the readers consciously question their self-identity. Freshwater is well-articulated in realistic and relative manner that you can almost feel and taste it. The novel pervades a mystical aura while portraying the link between the contemporary world and a world beyond it. It tells of a spiritual realm from which we are all born while depicting the spirituals controls the physical. In solemn yet humorous mood, the novel engages and educates the readers along the line, with simplified yet forceful language, the book gives the readers an in-depth look to what it means to be a person with multiple personality disorder (MPD) from a spiritual perspective. The novel explores the complexity and power of the mind to alter and determine the actions and emotions of people. It makes the reader aware of the shift from ancestral inherited beliefs to a modernity that prevents us from seeing beyond the outward appearance of things. Humans are social beings that desire to matter, to belong and they have lengths they would go to, to escape the feeling of loneliness. Ada is pierced by the world she lives in and the words of the people that matter to her and as a result she becomes more isolated and internally retreats into her mind and begins to rely more on the collective souls that lives in her. In a fresh yet mind-boggling way, the book communicates the mental and physical impacts situations can have on growth of a child, issues that can traumatize them and change their way of living forever. All in all, the writer teaches on the impact of facing problems head on, as running away from them only invites more problems and the peace that comes with discovering and accepting the reality of your true self. RATED 18+

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Red is indeed the colour for the season. Whether as the colour of their gift boxes or on their outfit, we love how read stole the show. We couldn’t help but notice how some female celebrities dressed up in their own outfits, they were really creative and they all look dazzling. These ones stood out for us and we decided to share. Don’t they look stunning?

Ufoma McDermott Ini Edo

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Funke Kuti

Omoni Oboli

Tonto Dike

Juliet Ibrahim

Eniola Badmus

Juliet Okonkwo

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he argument on when Christ was born has been on-going through the years and more recently on social media. Many have said Christ wasn’t born on Christmas Day, while others have said if everyone has agreed it’s 25th then so be it. Whatever category you fall in, the crux of the matter is that Christ was born… QED! When I was younger, I always looked forward to Christmas, it was to me, the second birthday celebration in a year and I loved the idea. So after my birthday on the 10th of October, I am looking forward to another birthday on the 25th of December and then I begin to look forward to another celebration, The New Year! Christmas to me is a time to show love, reach out to those in need, call people, visit orphanages and homes for the elderly to mention a few…generally, to reach out to those unreached and to touch base with those you haven’t been in touch with for a while. To some families, it’s a time to put presents under the Christmas tree. My friend’s children always stay awake till the early hours of 26th so they can rush to the Christmas tree to open their gifts. In one of the Christmas celebrations, her gift was the smallest, she thought her husband put a ring there to renew their vows, only for her to find out it was the key to a brand new Honda CRV, her excitement was beyond words! After the death of my mum, I never really looked forward to Christmas because it became a reason to remember her. I say so because every Christmas, she would buy all needed and I would do the cooking and we would share to everyone on our street. I enjoyed cooking and she was my source of inspiration. I remember clearly when she died few years ago; I had to travel to the UK for Christmas because I didn’t think I would be able to cope. (I lost my dad and mum in the space of one year. Dad first, then mum. ) It was my first Christmas without her so you can understand the need for my ‘escape’ to the UK. Thanks to my friend’s mum who did her best to ensure I didn’t feel my mum’s absence too much, I could go through that Christmas and for other Christmas celebrations, I have been able to enjoy the season…not without the thought of her but grateful she is in a better place. As you enjoy yourselves during this festive period, let it be a time for you to reflect on your life, be grateful for what you have and be a blessing to others. If the birth of Christ is truly what we are celebrating, it must be about what He stands for: Love, joy, peace, charity, compassion, generosity and more. Spread love!

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So, she and this guy have been close, and her relationship with him has been as open as the sky. Both families know about them, and if you’re her friend, you must know about him. No, you can’t escape from it. From the social media love scenes, the personal conversations, the WhatsApp statuses, surely, this duo have nothing to hide. This Lagos Guy satisfies her adventurous cravings, and ignites that fire in her. “You know sey I no dey stay one place,” she said one day, talking about her numerous trips. From the periphery, they are certain about what they want...at least, all her friends believed so. However, despite the marriage whispers doing the rounds within both families, she says she’s not feeling it anymore. The spark is dying. “He says he’s too busy. There’s no more adventure, Desmond. All the things we used to do before, we don’t do them anymore. And I’m losing interest in this whole thing, “ she told me as we talked late into the night by a sedentary car parked in her compound.

“I’M BEGINNING TO LOSE INTEREST IN THE WHOLE THING, HE DOESN’T KNOW IT YET BUT I AM,” she told me brazenly calling my name in-between her words. All who know her know how sprightly she is and how much of a damn she doesn’t give. She is more blunt than blunt, and if you’re close to her, she opens up to you like a broken faucet. In this privileged position, she tells me everything, and I mean everything about her relationships both past and present. She and I go way back in school, so, I can tell she has a considerable experience about issues of the heart. At school, she was someone who drew the attention of the opposite sex, her hour glass shape was a major contributing factor? Oh, she usually gets the boxed-up ones too. Those willing to spend (if you know what I mean). So, as a student, she’s had a number of dates and potential husbands in three different states: Enugu, Calabar, and Lagos (all big boys…going by the present day definition of ‘bog boys’). And because of her over-the-top penchant for adventure, she did wild things. But the fact is, she is a good girl who knows how to have fun and tries her best in her relationship provided the man gets his priorities right. But somewhere in her quest for adventure, she found love and commitment from one of the guys. Hey, no name mentioning, so, let’s call him ‘The Lagos Guy’…right?

Bothered about whether she had told him about her feelings, she said she had told him about it several times and had even wanted to have a talk with him. “I have complained about this to him, but he has refused to do anything. You know men are like babies. When you tell a child not to do something and he refuses to listen, you let him. So, I’m tired of talking, I’ll just wait for where it takes us,” she said. A Nigerian female relationship expert predicts that if the guy does nothing despite her complains, then a break up will likely ensue. According to a website article, “when your girlfriend loses interest in you this is one of the first signs that your girlfriend is looking to break up with you.” But whether Amarachi will break up or not, only time will tell.

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Festive seasons in Nigeria are usually accompanied by lots of fuss. The Christmas lights blinking and changing colours in successive rhythm. Tunes of ‘Jingle Bells’ hooting from various corners, carol services, get together events either by corporate organisations closing the year or by social groups. The excitement of children anticipating new clothes, the beautifully dressed Jollof rice, frantic rush to purchase various commodities to mark the season. These all signal that moment of the year when Christmas and New Year celebrations are on everyone’s lips. In Lagos, the noise is louder. But this year, it all seemed really different. The excitement seemed to be lacking. The fireworks that brightened the skies at night was rarely seen, the knockout sound was not as much as before, and children did not cry about wanting the eight sound knock-out nor bragged about hand-holding it till the last blow. No one was excited about wearing red and white. This year, it seemed many celebrated this festive season on a low-key, and while others still found a way to obtain maximum fun, some women in Lagos have expressed their views, comparing the celebration of the festive season of 2017 and 2018. Here’s what they said.

Tessa Doghor Digital Journalist Last year’s Christmas was good. I thank God for His faithfulness, I believe this year’s Christmas is better. There is more peace of mind and the clothes are not as expensive as they were last year. The food also had achieved some balance from the frenzy of last year. Rice has increased by just over a thousand naira and the chicken increased by lower margins than last year. So we are buying what we can and believing God for a better year. I think transport is more than double as usual especially in the eastern region. Because of the increase, I will not be travelling till after the holidays so I can maximise the profits made this year. Hopefully, it should reduce enough to make my travelling home to see my family worth it.

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Jenifer John Fashion designer

Oladoyin Bukola IT Engineer Last year was a wonderful year for me as a mother and especially to me as a woman. Last year, I had so much to buy especially for my children, and both my extended family and others. So last year was wonderful. But this year, because of finances, buying things was difficult. Things are so costly at the market. So I had to buy the little things I could afford. We took the children out to Shoprite last, but this year, we are not putting it in the plan. If we are to put it in the plan, we’d look for a more affordable place. Also last year, I was able to visit my parents and I gave them a lot of things, and they were very happy. But this year I couldn’t do much, but they appreciated the little I did. So for my church family, you know this period is a time for giving, sharing and blessing one another, most of the people that had functions to do like final burial outing, marriage ceremonies, birthdays, I couldn’t afford to buy them things, unlike last year. I pray that next will be better.

Last year was very tough. In fact, I was so broke that I wasn’t thinking of what to eat because there was nothing at all to eat. All I did was wake up in the morning, pray, sleep, and then sleep again. I didn’t go out last year. In fact, I had no food to eat. Even If I had friends, where will I get the money to go visit them, and hang out with them? But this year, I will travel despite the high transportation fare. I think this year, God has been faithful. This year’s celebration was better. It might be hard to some people, but this year, has been better for me. God has finally visited me; I’m no longer experiencing what I experienced last year…since January. So I think this year’s celebration is better and next year, will be best…hopefully. From here to my hometown is ₦15,000 and I’m still going to travel. Brother, God has made the money available! So I think this year is better than last year for me, I don’t know about others. So, I will cook and share with my neighbours unlike last year when I didn’t want anybody to give me anything because I had nothing to give back. And I will also go out with friends. I don’t know why I was that broke last year. I wouldn’t blame the economy of the country because while I was going through all that, people were still travelling and having a good time in Dubai. I have a friend who flew to my place that same year. So, I wouldn’t say it was the economy or the government. Perhaps, time and chance happened to us all

Fabiyi Olufunke business woman Last year festive season, I had enough with me. On Christmas Eve, I had gotten everything I needed for the celebration. But this year, I’m just going to the market, to show you how tight things are. The money is not circulating at all. The difference between last year and this year is that, last year I was with cash, and I could spend money. But this year, there is nothing. No business, nothing. I’m still did some of the things I did last year, but it was on a really tight budget…not enough money to sell. Like last year, I had enough drinks in my shop to sell, but now, I don’t have anything. Business is not moving. There is no money to do business, and the little one you have, you sell and they don’t pay you. This year’s celebration is not buoyant at all. The economy is terrible. Last year, I sold about thirty chickens and made a lot of sales. But this year, nobody is even buying.

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LADIES OF THE NIGHT (SERIES)

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‘Ladies of The Night’, A title frequently tagged with their source of livelihood. We see them yet, we know what they do, but what we don’t know is the story behind it. We have an idea, but it’s about time we heard their truth and perhaps understand their pains.

CODE NAME: SEXY MAMA ven with being a mother, the nickname ‘Sexy Mama’, is what she is called, her curvaceous features has attracted different types of men, even the violent

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ones. She stands by the road side somewhere in Apapa (where she would not like me to mention). “My life is nothing I wish for any young girl or even my daughter”, she says to me. It is easy to conclude it is a life that hardens your heart and mind and leaves no space for love. Due to financial issues, which even prevented her from completing her primary school education, Sexy Mama was introduced into a life of emotionless sex as the bread winner of her family. Working five to six hours a day occasionally being stressed, bruised and battered by violent men who pay for sex, she has been subjected to a life of societal threat, whereby she risks her safety, health and heart to earn 70,000 a month aside expenses so as to send money to feed and educate her daughter while keeping her at a distance from the life she lives. “I hate being the lady of the night, but my parents, younger ones and most of all my daughter need to survive so they never get to see this side of life. If I had been taught a skill or given a better option at that time, I would have taken it” these are the words of regret for Sexy Mama who has now acquired skills such as braiding and sewing which she uses as a side means to

keep supporting herself and lift her head high. “I have cried myself to sleep numerous times when I had just started because there are some men whom I met that say one thing and do the other, so I have been sexually abused many times and the police station is nowhere I can set my foot into to report as there will be a lot of judgmental eyes, words and fingers pointed at you. Public hospitals are no different, so if I am injured or in pain I will have to wait till I meet my personal doctor. In this business, there is no discrimination, you are not judged or insulted as they are all in the same boat which has helped us find comfort amidst our condemning heart and mind.” She says. Gospel music, friends and the acquired skill of sewing has helped her find peace in a way that it helps her escape for a short while from her reality as a tool used for the pleasure of men of all shapes and sizes. They say sex is pleasurable but not in a case were your mind is hardened and everything becomes business, not when it is done with men you have no feelings or knowledge about. She believes she has entered and experienced things too deep to escape from, and all the men she has loved have left her with only heartbreaks while the ones her body has been given to have hurt her physically. She plans to leave this way of life behind when she has earned enough to see her daughter go through a good university. “I don’t wish this life for anyone” is a heartfelt cry of a woman who has experienced it all and encourages other young girls who have it going rough, to look for something else as there are only regrets and pain associated with this ‘night business’

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