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news you can trust I ** friDAY 28 february 2020 I vol. 19, no 509

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il prices touched new lows Thursday, adding to a list of growing headaches for Africa’s largest oil producer.

Brent Crude, the benchmark for Nigerian oil, fell to $50.9 per barrel as at 11 am Thursday, according to Bloomberg data.

That’s the lowest since July 2017 and the lowest level this year.

That has all sorts of implications for Nigeria whose government had planned its budget for 2020 working with an oil price estimate of $57 per barrel.

Falling oil prices will affect Nigeria’s dollar earnings and put pressure on the exchange rate. That could force a currency devaluation, trigger a banking

crisis and push the CBN to raise interest rates to attract foreign portfolio inflows even if that makes the cost of credit more expensive for local businesses.

An oil price of below $50 per barrel is one of the preconditions given by the CBN, along with external reserves of below $30 billion, to trigger a rethink on the exchange rate.

S o m e e c o n o m i s t s h av e

3M 0.00 2.87

NGUS feb 24 2021 367.00

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-0.38 3.28

0.00

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30 Y 0.01

6.99

10.08

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NGUS feb 22 2023 375.00

foreclosed a devaluation this year but they will be cautiously watching the impact the coronavirus outbreak is having on oil prices.

Lower oil prices could also increase the federal budget deficit and pave the way for the government to borrow more to fund its recurrent expenditure-heavy budget while infrastructure Continues on page 34

NGUS feb 26 2025 380.00

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Oil falls to 3-year low as Nigeria’s headache worsens LOLADE AKINMURELE

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Treasury bills

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More worries for DisCos as FG approves forensic audit of accounts ... Asks states to provide information on investments before end of March TONY AILEMEN, Abuja & DIPO OLADEHINDE, Lagos

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he Federal Government on Thursday said it would carry out detailed forensic audit of the accounts of power distribution companies (DisCos) following dissatisfaction with reported claims of the current level of investments in the electricity sector.

The aim, the government said, is to enable it know how much has been invested in the power sector so far by all the various stakeholders since the 2013 power privatisation exercise.

The Federal Government also directed all the state governments to furnish it with total investments they have committed into the power sector so far.

Philip Shaibu, deputy governor of Edo State, disclosed this while briefing State House correspondents after the monthly meeting of the National Economic Council (NEC), a body comprising the Federal Government and governments of the 36 states of the federation, in Abuja.

“I think the Federal GovernContinues on page 34

Inside L-R: Lamin Manjang, CEO, Standard Chartered Bank of Nigeria; Chidi Izuwah, director-general, Infrastructure Concession Regulatory Commission; Kayode Falowo, president and chairman of council, Nigerian-British Chamber of Commerce; Kunle Elebute, senior partner, KPMG Nigeria & chairman, KPMG Africa, and Yomi Omomuwasan, MD/CEO, Lekki Concession Company, at the February breakfast session of Nigerian-British Chamber of Commerce in Lagos.

NDIC wins N1.4bn debt recovery case against debtor of defunct Gulf Bank P. 2

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news Soft drinks makers compete for market share with new flavours BUNMI BAILEY

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arbonated beverage (soft drinks) makers are aggressively competing for market share in the flavoured drinks segment by pushing out more flavours to entice consumers around the country.

The competition used to be about quantity and price but as many products converge around 60cl which sells for N100 on the average, the soft drinks makers are now turning to new flavours to get ahead of a saturated market, experts say.

“I think the Lipton ice tea flavoured drinks released last year sort of changed the game because consumers responded quite positively to the launch of those products,” Ayorinde Akinloye, consumer analyst at CSL Stockbrokers, said. “Consumers are now tilting towards taste and companies have to respond to that by pushing out more flavours.”

Over the past four years, Fast-Moving Consumer Goods (FMCGs) including soft drink makers have been competing for sales by increasing the quantity of their products without increasing prices due to weak consumer purchasing power.

“All of them have been

competing at the price and quantity levels and they are almost at par. So the next thing is taste for them. The three things that FMCGs or drinks companies compete against are price, quantity and taste,” Akinloye said.

The carbonated soft drink market commands a unique hold on the food and beverage sector in the Nigerian economy. In 2019, innovation centred on flavours as companies like Pepsico and Unilever introduced new ready-to-drink Lip tea drinks and Pepsico’s new flavours such as Pepsi Berry, Pepsi Lime and Pepsi Mango.

Earlier this month, La Casera Apple introduced four new flavours called Bold Orange, Tropical, Bitter Lemon Extra and Ginger.

Ibrahim Ahmed, an inventory manager at Coca-Cola Nigeria, said the new trend made Coca-Cola reintroduce its flavoured Fanta Apple and Pineapple drink back into the market late last month.

“This is the new niche for the carbonated drinks market because consumers are willing to try anything. And since the Mirinda Apple drink is doing well, why don’t we push out similar products like that?

And based on the survey from

In capping estimated billing, NERC avoids addressing failing metering programme ISAAC ANYAOGU

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y placing a limit on how much electricity distribution companies (DisCos) can charge some classes of customers on estimated billing, the Nigerian Electricity Regulatory Commission (NERC) has merely substituted resolving the failing metering programme with penalising DisCos already reporting poor revenues.

In its order to cap estimated billings which took effect February 20, NERC ordered that all unmetered R2 and C1 customers, basically residential and small business users, shall not pay more than N1,870 per month for energy consumed. Single-phased small users are not to pay more than N200 per month during the transitional period till they are

metered.

While this populist order will meet with approval from many electricity customers who suffer outrageous billing from DisCos, industry analysts say the regulation does not address why many Nigerians cannot get meters to ensure equitable electricity billing. Yet, the regulator is well aware of the problem.

In paragraph 11 of its order, NERC after highlighting the problems MAPs was created to solve said, “However, several constraints including changes in fiscal policy and the limited availability of long-term funding have led to limited success in the meter roll out.”

After acknowledging the problems, the regulator has pushed the burden on resolving them on the regulated even when the problems reflected its inability at forging synergy with the

Ministry of Finance and poor evaluation of the financial competence of the thirdparty investors it allowed to partner with the DisCos. “This order by NERC does not address the problem at all, rather it makes the situation worse for the DisCos,” said Chuks Nwani, an energy lawyer based in Lagos.

“NERC is not regulating the industry to grow.”

Last October, BusinessDay reported that the Meter Asset Provider (MAPs) plan was careening towards disaster on the back of a 35-percent hike in import levy on electricity meters and poor financial ability of meter asset providers to finance purchase of new meters.

Following the introduction of the MAP regulations in March 2018, a plan to have third-party investors finance meter purchase and recoup

proceeds from customers’ retail payment for power, the Ministry of Finance reviewed upwards the import levy on electricity meters from 10 percent to 45 percent and the Nigerian Customs Service began immediate implementation leading to abandonment of thousands of meters at the ports.

Checks at the customer care offices of DisCos in Lagos show large swaths of people who are still disgruntled over the inability of their power companies to meter them. Some have filled forms in the last two months and are still waiting for officials to carry out an audit of their homes while others say they are yet to get a response after completing forms.

However, some analysts believe that while the regulator understands the issues, it

Continues on page 34

Continues on page 34

NDIC wins N1.4 bn debt recovery case against debtor of defunct Gulf Bank ENURANCE OKAFOR

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n its capacity as official liquidator, the Nigeria Deposit Insurance Corporation (NDIC) has secured a judgment against Jolimair Nigeria Limited and three other debtors who owed the defunct Gulf Bank Plc the sum of N1.4bn.

In a debt recover y suit Number : FHC/L/ CS/1328/17 - NDIC (Gulf Bank) vs. Jolimair Nigeria Limited & 3 Others, the NDIC prayed the Federal High Court sitting in Ikoyi, Lagos for the recovery jointly and severally from the respondents of the total debt sum of N1,494,987,317.44.

The amount was due and payable by Jolimair Nigeria Limited to the Gulf Bank (in-liquidation) as at 16th January, 2006 when the defunct bank’s operating licence was revoked by the Central Bank of Nigeria (CBN). The amount was in respect of the banking facilities granted by the bank inliquidation and guaranteed by three other respondents in the suit; Joseph Samir Karkar, Abbas Shour and Patrick Sule Uduka.

When the matter came

up for judgment on 31st January, 2020, the presiding Judge, Justice Ibrahim Buba granted the reliefs sought by the NDIC in respect of the N1.4bn debt.

The judge said the respondents failed to tender any documents before the court to prove that their indebtedness to the bank in-liquidation had been settled, adding that people like them were responsible for the failure of the bank.

The court also agreed with the NDIC that the Respondents owed interest on the total debt sum calculated from the 16th January 2006 at the rate of 21 per cent per annum until the whole debt was fully liquidated, in addition to a cost of N500,000.00 awarded against the Respondents.

It would be recalled that the Nigeria Deposit Insurance Corporation, in exercise of its power as the liquidator of Gulf Bank (in-liquidation) instituted the debt recovery case against Jolimair Nigeria Limited in 2017, under the Failed Banks Act to recover the outstanding sum of N1,494,987,317.44 owed to the closed bank by the Respondents. www.businessday.ng

L-R: Ekenem Isichei, Michael Uzoigwe; Odein Ajumogobia, chairman, advisory board of Nigerian Natural Resource Charter (NNRC); Femi Gbajabiamilla, speaker, House of Representatives; Tengi George-Ikoli; Michael Faniran, and Chinedu Onyegbula, during a visit by the NNRC to the House of Representatives to advance reforms of the oil and gas sector.

Hope for farmers, agric productivity on tractor hailing service … initiative to address Nigeria’s mechanisation problem JOSEPHINE OKOJIE

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uch as he desires tractors to till the ground and plough his farm, Ademola Adefemi, an Ogun State-based farmer, cannot easily lay a hand on one. He, therefore, relies on hired labourers who have to resort to the old farming methods that have kept Nigeria’s agricultural productivity low for decades.

It takes an average of a month for a farmer in Nigeria to get a tractor for ploughing and tilling from the local government centre closest

to him owing to the unavailability of tractors. And time is a luxury most farmers cannot afford because they depend on rainfall for their cultivation which makes it time-bound.

“I love using tractors for tilling the land and ploughing but most times it is difficult to get it on time because other farmers want to hire it too,” said Adefemi, who farms maize and cassava on a 10-hectare land in Ogun State.

“Only two tractors are being leased to farmers in Ogun State currently and I had to queue for three

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weeks before I could hire it,” he said.

But relief is coming the way of farmers like Adefemi as Origin Automobile Works (OAW), an indigenous firm based in Lagos, has created a platform for Nigerian farmers to order for tractors irrespective of where they are located via an app on their mobile phones.

The firm is currently investing heavily and partnering with some tractor assemblers in the country to get enough farming machines on its platforms for its farmers.

With the initiative, Origin @Businessdayng

will be able to support the country in addressing its mechanisation problems by ensuring that farmers easily access tractors to perform timely farming operations and achieve economies of scale in food production.

Farmers who had in the past struggled to get tractors can now have fast and reliable options to get machines for their farmland.

“We have launched our tractor hailing service so that farmers in the country irrespective of where they are located can order for tractors Continues on page 34

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Workplace needs to get prepared for coronavirus, WHO says ANTHONIA OBOKOH

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hile the World Health Organisation (WHO) is yet to declare COVID-19 a pandemic, it says workplace needs to get prepared for coronavirus even if the virus has not arrived in the communities where they operate.

The agency warned that the long-term success cannot be taken for granted, and warned that all sections of the society – including businesses and employers – must play a role if they hope to stop the spread of this disease.

“Contamination on surfaces touched by employees and customers is one of the main ways that COVID-19 spreads and low-cost measures will help prevent the spread of infections in your workplace, such as colds, flu and stomach bugs, and protect your customers, contractors and employee,” the agency report.

The virus that first started in Wuhan, China, has infected more than 80,000 people and killed at least 2,700 globally. WHO has yet to declare COVID-19 a pandemic.

Here are the steps that WHO say would be helpful now before COVID-19 spreads in the workplace: In order to prevent the spread, workplace should promote regular and thorough hand-washing

by employees, contractors and customers, put sanitizing hand rub dispensers in prominent places around the workplace and making sure these dispensers are regularly refilled, Display posters promoting hand-washing – ask your local public health authority for these or look on www.

WHO.int.

Combine this with other communication measures such as offering guidance from occupational health and safety officers, briefings at meetings and information on the intranet to promote hand-washing.

Make sure that staff, contractors and customers have access to places where they can wash their hands with soap and water.

Display posters promoting respiratory hygiene. Combine this with other communication measures such as offering guidance from occupational health and safety officers, briefing at meetings and information on the intranet etc.

Ensure that face masks and / or paper tissues are available at your workplaces, for those who develop a runny nose or cough at work, along with closed bins for hygienically disposing of them.

Ensure that your employees comply with instructions from local authorities where they are traveling. If, for example, they are told by local authorities not to go somewhere they should comply

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with this. Your employees should comply with any local restrictions on travel, movement or large gatherings.

Develop a plan of what to do if someone becomes ill with suspected COVID-19 at one of your workplaces.

The plan should address how to keep your business running even if a significant number of employees, contractors and suppliers cannot come to your place of business - either due to local restrictions on travel or because they are ill.

Communicate to your employees and contractors about the plan and make sure they are aware of what they need to do – or not do – under the plan.

Emphasize key points such as the importance of staying away from work even if they have only mild symptoms or have had to take simple medications (for example paracetamol, ibuprofen) which may mask the symptoms.

Be sure your plan addresses the mental health and social consequences of a case of COVID-19 in the workplace or in the community and offers information and support.

For small and medium-sized businesses without in-house staff health and welfare support, develop partnerships and plans with your local health and social service providers in advance of any emergency.

Dangote supports FG’s border closure policy

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resident of Dangote Group, Aliko Dangote, has reiterated his full support to the Federal government’s border closure policy.

Debunking insinuations that the policy was responsible for the drop in Dangote Cement’s profitability for the year 2019, he said that was an erroneous thinking as the border closure policy was the best for the country’s economy at this point in time.

He revealed that Dangote Cement is building its terminals across Africa and the border closure cannot in any way impact negatively on the company’s performance.

Meanwhile, the stock of Dangote Cement has remained dominant on the floor of the Nigerian Stock Exchange (NSE) as investors swooped on the stock after the news of a robust dividend as announced by the management of the company.

It would be recalled that the management approved that N16 per share be paid to the shareholders despite the drop in profitability.

Dangote Cement plc’s investment across Africa is bearing the desired results as pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt. According to the full-year report released on the floor of the Nigerian Stock Exchange,

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Dangote Cement Plant, Mtwara in Tanzania recorded a 94 percent increase in volume within the review period.

Dangote Cement Plant, Pout, Senegal put up a remarkable performance with sales up more than 100 percent of rated capacity.

The board has proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming annual general meeting (AGM).

Speaking on the result, Joe Makoju, Group chief executive officer, Dangote Cement, said Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets.

“The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria,” Makoju said.

“Pan-Africa volumes were slightly up notably supported

by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in pan-Africa driven by higher

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volumes and further efficiency improvements,” he said.

Makoju said as he retires from Dangote Cement, he is proud to have watched it grow from a local producer back in 2007 to a major force in global cement production.

“Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. I wish Michel Puchercos all the best as the new group chief executive officer of Dangote Cement,” he said.

Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. It is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria. Obajana plant in Kogi State, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta. In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

Friday 28 February 2020

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news

Edo 2020: Tambuwal receives Unity Torch, reaffirms commitment to sports development

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overnor Aminu Waziri Tambuwal of Sokoto State Tuesday received the torch of unity totem for the forthcoming National Sports Festival scheduled to hold in Edo state from April 20, the special adviser on media and publicity to the Governor said in a statement.

About 250 athletes are expected to attend the national festival.

A delegation from the National Sport Commission led by its zonal coordinator Kaduna, Olushola Luke, pre-

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sented the totem to the state commissioner for youth and sports, Aminu Bala Bodinga, who handed it to the governor at Government House, Sokoto.

Receiving the torch, Governor Tambuwal reaffirmed his government’s commitment to ensuring the development of sport in the state, pointing out that the sport sector provided avenue for youth development.

He explained that youth who formed the critical mass of the population will continue to be engaged in sport-

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ing activities.

The governor also said Sokoto would participate fully in the scheduled national sport festival.

Earlier, the zonal coordinator of National Sport Commission Kaduna, Olushola Luke, said the torch of unity was aimed at uniting Nigeria so as to ensure the enthroning of peace and development through sport.

He also said the sports fiesta was intended to make the youth alert so that they can defend themselves in case of aggression.

EEDC seeks consumers’ support for tariff increment Emmanuel Ndukuba, Awka

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nugu Electricity Distribution Company (EEDC) has urged its costumers to understand the challenges it faces in providing quality service to them.

The appeal was made by the deputy director of EEDC, Paul Okeke, during a stakeholders’ consultation for extraordinary tariff review in Awka.

He said the company has been facing many challenges since inception, ranging from poor quality supply of energy from the transmission, energy theft by consumers, saying that despite these, they have been able to serve the public better.

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According to him, people blame EEDC for poor service delivery without considering the presence of other companies on chain of distribution.

“We have generation, transmission before distribution.

Everybody looks up to the distribution as the problem in the sector. We have four transmission stations in Anambra State which are not enough to serve the state. People put the blame on us because we are closer to the people than others,” he said.

He called on the customers to understand the company’s plights and support the EEDC on tariff increment to serve them better.

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According to him, there is supposed to be a major tariff review every five years and minor review every six months, but this has not happened because of government’s stand.

Okeke said EEDC is in serious need of money to put things in order to render quality service to the South-east people.

In his remarks, Emeka Onyegbule, principal manager, Nigerian Electric Regulation Commission (NERC), said the purpose of the stakeholders’ meeting was to create a medium where the consumers and EEDC would present their cases for effective resolution.

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The IMF Article IV visitation team and the Nigerian economy THE NEW WEALTH OF NATIONS

Obadiah Mailafia

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ast week the boys from Washington were in our country under the framework of the IMF Article IV Visitation exercise.

Under the statutes of the Fund, the Article IV team is authorised to carry out economic and surveillance activities in member countries. They normally meet with key government functionaries and with functionaries of key agencies such as the central bank, Ministry of Finance, FIRS and with bankers and other captains of industry for the purpose of undertaking a fair and objective assessment of the health of the economy.

In their summary report for this year, the IMF team noted that macroeconomic growth in Nigeria remains precarious while inflation is rising and external vulnerabilities are worsening. While welcoming the recent fiscal consolidation and the tightening of monetary policy they pointed out that major policy adjustments are still very much needed.

Led by Amine Mati, Senior Resident Representative and Mission Chief for Nigeria, the Fund’s team noted that “the pace of economic recovery remains slow, as declining real incomes and weak investment continue to weigh on economic activity. Inflation—driven by higher food prices—has risen, marking the end of the disinflationary trend seen in 2019.

External vulnerabilities are increasing, reflecting a higher current account deficit and declining reserves that remain highly vulnerable to capital flow reversals”.

The IMF visiting team however lauded the fact that the exchange rate has remained relatively stable. But they expressed concern about the high fiscal deficits in the context of weakening nonoil revenue, which have encouraged CBN interventions and fiscal overdrafts.

As a result of these developments,

the Fund have announced that they are cutting back on their growth forecast for 2020; revising it downwards to 2.0 percent from an earlier figure of 2.5 percent. They predict that inflation is likely to increase while terms of trade and capital outflows will make our external position more vulnerable. They are therefore recommending measures to boost revenue through implementation of the Finance Bill and the Deep Offshore Basin Act while taking bold steps to enhance budget execution and implementing structural reforms particularly in the areas of Doing Business, power sector reforms, governance and public sector management, The mission looked askance at the motely of CBN intervention funds as being inimical to prudent public financial management. They advocate, instead, securitisation of longer-term government instruments to mop up excess liquidity while implementing a more flexible exchange rate regime. They demanded removal of the restrictions on access to foreign exchange for the 42 categories of imported goods. They equally raised issues with banking system vulnerabilities.

While welcoming some of the measures taken to reduce legacy non-performing loans, they called for introduction of risk-based minimum capital requirements so as to boost bank resilience. They IMF team also took strong exceptions to the continuing border closure which they believe is harming the economies of our neighbours. They urge all parties involved to work out a solution that is fair and equitable.

I am not altogether surprised that inflation is reported to have risen to 12.13 percent in January 2020, up from 11.98 percent recorded in December 2019. The IMF Article 4 team are not entirely wrong in blaming the current development on food shortages and the border closure.

But these things need to be placed in proper perspective. The border closure was bound to trigger certain temporary price shocks. But these are inevitable, until when local producers respond to new opportunities. Such events naturally have time-lags. This explains partly the rise in prices.

Ordinarily, January is still within the harvest season, so we should not be

expecting food shortages. But the factor of rural banditry must be taken into account. Farmers in the rural communities have come under heavy assaults by herdsmen militias and other rural bandits. Fear and uncertainty have been dampeners on agrarian production, hence the phenomenon of shortages and scarcity that translates into higher inflation pressures. Another factor that perhaps the Fund team did not mention is, of course, the 50 percent hike in the VAT tax.

This issue needs to be scrutinised against the backdrop of the of the much talked about progress in local food production in the country. The talk of increases of food production is more hype than reality. There is no doubt that some of the so-called intervention funds

by CBN have had some positive impacts on the rice sector. Local production has risen significantly. But we are not yet anywhere near self-sufficiency in local rice production as is being claimed.

The reality is also the fact that nobody has actually done a cost-benefit analysis of the CBN intervention funds. There is anecdotal evidence that the costs far outweigh the benefits and impacts.

Whatever improvements that have been registered have been undermined by the herdsmen militias and rural bandits that are succeeding in destroying the agrarian bread basket of the country, which is the Middle Belt.

On the border issue, I am of the view that Fund have no business interfering in matters of national security. The border closure decision has more to do with national security than international economics. So far, the border closure has significantly reduced the mindless killings going on across our country. We are aware that the decision to close our borders has angered several European powers who have been using our neighbours to dump all their goods on our shores. I strongly urge that we do not back down.

We should continue on this path until we have cast-iron guarantees that our neighbours will not be used to engage in trade dumping or smuggling of weapons that are injurious to our country.

On the restriction placed on the 42 items, I think the Fund are wrong. Why should we continue to import things that

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The border closure was bound to trigger certain temporary price shocks.

But these are inevitable, until when local producers respond to new opportunities.

Such events naturally have time-lags. This explains partly the rise in prices

we can easily produce locally? We must say no to such nonsense. Remember also that the CBN never “banned” these items as such. The new guidelines merely specify that anybody that wants to import such items cannot come to the official forex window for them.

On the excess use of CBN overdrafts and intervention funds, I am inclined to agree with the IMF. The rule in terms of global best practices is that such overdraft facilities must be kept to a minimum.

Across the world, central banks do from time to time provide overdraft facilities to government. What is essential is that they are kept to a minimum and that they are operated with a high level of transparency.

My main concern is that the way we are going about things these days leaves a lot of unanswered questions. Where are all the trillions of so-called “intervention funds” coming from? Who is evaluating their impact? How are we sure that we are not just printing money for dubious pork-barrel expenditure? I would therefore urge that we keep such overdrafts within the bounds of reason and we must be transparent about them. We must also carefully weigh the implications for inflation and long-term exchange rate stability.

Going forward, I believe what we need in Nigeria is, first and foremost, to secure the peace of the commonwealth.

It would bolster business confidence while reversing capital flight and financial haemorrhaging. It would also bolster the real sector. The CBN should also be moderate in its use of intervention funds. I am also disappointed that we do not really have mechanisms to stabilise prices of agricultural products through the use of agricultural silos. The idea is to store farm produce during the peak harvest seasons and to gradually release them into the market during times of scarcity. We also badly need to reform the public sector while building an eco-system that allows innovation, creativity and entrepreneurship to flourish.

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)

Succession planning

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probably sound like a scratched record, but I am always happy to connect on a Friday because most people reading this column are more relaxed since it is a Friday. Even if you did not achieve all you planned to achieve this week, yesterday is gone, live in today and the next morning always brings hope.

Today we are going to be talking about a topic that only the very big organisations seem to think of. Succession planning. This is a process for identifying and developing new leaders who can replace old leaders when they leave, retire or die. This increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. Without this kind of planning you can end up with inexperienced and not fit for purpose employees, (through no fault of their own) filling important and crucial roles.

Many people believe succession planning should only focus on key leaders in the organisation. This should change because there are many positions that are not considered leadership positions as such but are strategic and cannot be left vacant.

Although we like to say no one is indispensable, replacing a leader or contributor with highly specialised knowledge or competencies is costly and time-consuming. Succession planning mitigates the effects of a sudden or unanticipated

vacancy in a principal position.

Every organisation experiences leadership change. Leaders may leave due to planned circumstances, such as retirement, or their departure could be sudden and surprising, due to an illness, family emergency, or even their death. Succession planning is not a ‘nice to have’ it is a “must have”.

This is a focused process for keeping talent in the pipeline, all the way to the top. It is generally a 12- to 36-month process of preparation not necessarily pre-selection even though this can be the case sometimes.

All organisations can benefit from the principles of identifying crucial job skills, knowledge, social relationships and organisational practices in order to pass them on to prepare the next generation of workers, thereby ensuring the seamless movement of talent within the organisation.

Many people both bosses and HR practitioners, believe that succession planning is a complex process and a practice restricted to the largest organisations with the most sophisticated organisational development departments. However, succession planning can be of great value to smaller organisations that have fewer resources available for knowledge management programs and the formal, structured development of employees.

Whether in a big organisation or in a small organisation, the employees have the same expectations. They are entitled to the same things

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and should not be denied these crucial things.

The coming together of the organisational needs and employee interests occurs in succession planning because of its wide scope and open process. There are many reasons for engaging in succession planning which include but are not limited to the following.

Adapting to demographic changes both in staff and customer base and talent scarcity.

We say talent scarcity because many of those who would stay in organisations for any length of time are getting fewer and fewer. Many employees leave to set up their own businesses.

They move organisations in search of greener pastures. This means they don’t acquire the core skills and requisite experience needed at the top and in strategic positions.

A large number of the people who stay, may not be the best of the crop. Demographic shifts create intense competition for talent—perhaps more rapidly or slowly than anticipated, but inevitably. These trends present opportunities for comprehensive succession planning to fill the upcoming shortages in talent.

Organisations need to help everybody be the best they can be. Harvesting critical organisational knowledge so it can be shared with subsequent generations of workers is therefore crucial.

Succession planning articulates necessary

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Olamide Balogun skill sets and competencies for key positions and this yields the added benefit of identifying skill gaps and training needs in the existing population. This process therefore involves an audit to find out the current skills, skills gaps and therefore the training needs to ensure that upcoming staff have the requisite knowledge required to fill the positions in view.

Interventions such as cognitive and behavioural training programs can be developed during the planning period and customized to the particular learning needs of the target group. however as said before if we can retain many of the same people through the ranks, less training programs will be utilised

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Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

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Ekwegh is a private legal practitioner with over 15 years

Friday 28 February 2020

BUSINESS DAY

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The knowledge-society and its enemies HumanAngle

Femi olugbile

O

n Wednesday the 19th of February, the Voice of Reason held an event at the Shell Hall of the MUSON Centre in Lagos.

It was the first installment of an annual lecture series in honour of the convener of the group, Prince Goke Omisore.

The Voice of Reason is a group of older citizens dedicated to the progress of the peoples of the South-West of Nigeria in the context of the larger national entity. They have a rallying focus on the subject of Restructuring, believing that only a restructured Nigeria with power and economy organised on the basis of increased authority and responsibility for the “federating units’ could hope to liberate the energies of the citizens, reduce the scramble for “national cake” and ensure real progress for all.

The central event on the programme was a lecture by Professor James Ayinde Fabunmi, a Nigerian academic currently riding high on the wave of international acclaim. An indigene of Ile Ife, and a product of the Awolowo Free Education policy, Fabunmi is a man with a dazzling combination of skills. He is an aerospace engineer, a scientist, an innovator, and an entrepreneur. He obtained a Master’s degree in Aeronautical Engineering from Kiev, and a PhD in Aeronautics and Astro-

nautics from Massachusetts Institute of Technology (MIT). He is on the circuit as a Consulting Scientist in Aerospace Engineering, Defence Technology, Artificial Intelligence, and InnovationBased Economic Development.

He is also the author of a book “from brain power to economic power” which offers new insights into innovation-based economic development – shifting the definition of wealth from “resources under the ground” to building the innovative, problem-solving capabilities of the people.

The proceedings got off to a start with a welcome address by the Chairman of Voice of Reason, Dr Olufemi Adegoke. It was followed by an address from the Chairman of the occasion, Aare Afe Babalola. The octogenarian, a very enthusiastic supporter of Restructuring, was represented by the Provost of the Post-Graduate College of his University. Aare was firmly committed to Restructuring and the imperative for a new people’s Constitution.

Soon it was time for the lecturer to get into his stride. He was a man of average build, in buba and sokoto, with his fila tilted to a rakish angle. He had a soft and clear elocution, and as soon as he got into his pitch, you could tell he had the attention of the audience.

Statehood, he said, was a journey through a few simple stages, from Feudal, to Pre-Industrial, to Industrial, and then to a Post-industrial Information age – the “Knowledge” society.

Watching from the sidelines, you recalled you had first heard the term “Knowledge Society” thirty years ago on a visit to Malaysia. All along the route to the capital Kuala Lumpur, billboards at the roadsides proclaimed the vision of Mahathir Mohammed – the Prime Minister, and his determination to make his country into a “knowledge

society”. He was trying to galvanise the ethnic majority, the local Malays to develop their human potential so that they could compete with the dominant Chinese majority who controlled the economy, instead of waiting for government quotas to protect their interests perpetually.

As the speech progressed, it was clear that not all of Nigeria was on the same page regarding the desirability of a “knowledge” society. Not only Boko Haram but also the people who fostered a system where unlettered almajiris overran the landscape and people who wanted nothing to do with knowledge held the commanding heights of power as entitlement were antithetical to the idea. “Knowledge is used to empower and enrich people culturally and materially…a society that creates, shares, and uses knowledge to improve its wealth and the well-being of its people…focuses on the development of its people ahead of the development of ‘things’…”

The lecturer’s words represented a paradigm shift from Nigerian reality, where all ‘wealth’ and expenditure were focused on “things”, and where “people” in a major part of the country that almost always held political power languished at the bottom of the Human Development Index.

He showed a map of the world based on investment in Science and Technology. Africa did not appear at all.

It was “Knowledge” that converted raw materials into industrial output, he averred. The raw material vendor got a pittance, and the manufacturer built an empire. “…a society that is not knowledgebased … cannot be competitive economically in modern times… it risks being re-colonised…

The cornerstones of the KnowledgeBased Society were Healthcare (access

‘

The one thing that was clear was that the country was going nowhere, fast. A large number of citizens had no knowledge, sought no knowledge, but had been brought up to feel entitled to power, more and more in the crude, brutal form for of violence

Olugbile is a writer and psychiatrist. synthesiz@gmail.com

Greater Lagos and Okada tyranny

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ow that the dust raised by the restriction – mislabeled by some as “ban” – on commercial motorcycles and tricycles has more or less settled down, it is fit and proper to examine the matter dispassionately. This will enable the ferocious critics of the action – I won’t join those who call them armchair critics, fake champions of the masses and mere chameleons; no, I won’t – to reconsider their perspective.

First, the facts After a Security Council meeting, one of several, over this matter, months of advocacy and consultations, the government of Lagos State decided to pull the brakes on what many called “the okada menace”.

Why? From an ever-ready, cheap and common means of transportation in the rural areas, “okada” has been vaulted to a veritable means of transportation on major highways, operated by riders who have no respect for road signs and human lives. To them, the 2012 Traffic Law, which was amended in 2018, must be rendered irrelevant.

The figures are scary. As many as 10,000 reported cases of Okada-related accidents from 2015 to 2019, in state hospitals only. More than 600 deaths. In the Lagos State University Teaching Hospital (LASUTH) alone, 1,020 cases were recorded in 2019. Add these to the thousands of cases recorded at the National Orthopaedic Hospital, Igbobi and others unreported in private hospitals and natural bone healing centres.

What do you have? An unacceptably wide canvass of blood – human blood, tears, and suffering.

The enforcement of the Traffic Law seems set to be checking this grim situation.

Data from the Directorate of Health Care Planning Research and Statistics of the Lagos State Ministry of Health show that between February 1 and February 6 (the first week of the restriction in six Local Governments), there was a 69.2 percent decrease in road traffic accidents from motorcycles and tricycles. Motorcycle accidents fell by 88 percent.

Criminals have found in the motorbike a proficient vehicle for their trade. They flee crime scenes on motorbikes. They snatch bags from innocent persons and race off, leaving their victims traumatized. But these incidents, terrible as they are, are nothing compared to the concern in security circles – that Lagos was susceptible to attacks, what with the ceaseless stream of armies of young men who have no fixed address. They sleep on their bikes, defecate on the street and constitute health hazards.

Besides, on the league of the National Drug Law Enforcement Agency’s drug offences in states, Lagos State is one of the frontrunners for the dubious trophy of trouble. Motorcycles have been handy vehicles for drug dealers and their clients, particularly our youths. No responsible government will allow this to continue? No. By the time the government announced the restriction of motorcycles and tricycles in six local governments, enough was not just enough; it was already too much. The decision to enforce the restriction was taken after months of advocacy, consultations and some Security Council meetings. It was not sudden. In fact, the enforcement is in line with the 2012 law, which was reworked in 2018. Contrary to what is being bandied in some circles, it is not a new piece of legislation.

Why did the government not put alternatives in place before the restriction? This is the logical question to ask. The truth is that security consid-

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and quality), Education (access, quality and relevance) and Innovation - across the board.

A standing ovation.

A panel discussion to hammer further on the theme.

The audience was a cross-section of society, clearly worried about the state of the nation. A representative of the Ooni of Ife. Representatives of the Governors of Lagos and Ekiti. John Nwodo, Chairman of Ohaneze. Gani Adams, Aare Ona Kankanfo of Yorubaland.

Chief Adebanjo, elder stateman. Students from various tertiary institutions.

There was a lively exchange for several minutes.

The one thing that was clear was that the country was going nowhere, fast. A large number of citizens had no knowledge, sought no knowledge, but had been brought up to feel entitled to power, more and more in the crude, brutal form for of violence.

And yet it was on record that a government in the Western Region decades ago had tried to build a knowledge society, even before their contemporary Mahathir Mohammed popularised the term. It had all come a-cropper, as Nigeria slid into “militarised unitarism”.

Could the journey be retraced, with different parts of the country being allowed to go at their own pace? That surely was the essence of the Restructuring that virtually everyone gathered on this day in the hall at MUSON was clamoring for.

As the guests and the members of the Voice of Reason began to disperse, clutching their take-away packs, it was obvious that there was a need for change in the thinking undergirding the Nigeria project.

Gbenga Omotoso erations demanded that action be taken immediately, with no further prevarication. The state of lawlessness and disorderliness into which tricycles and motorcycles were plunging Lagos had to be arrested. To stand by and watch is to be complicit and surrender the state to anarchists.

Just two days after the order took effect, 14 boats joined the waterways to ply some key routes. Besides, 65 new buses were rolled out to join 300 others just refurbished to move thousands on the BRT corridors.

The point has to be made again that the restriction is in just six local governments, and covers about 400 of the over 6000 roads in Lagos.

The local governments are also not the densely populated areas, such as Alimosho, Ikorodu, Mushin and others where the masses of our people live. Those who characterize the restriction as an attack on the poor are seeking cheap popularity. They are trying to subject the government to emotional blackmail by hired mourners crying more than the bereaved.

Some states have banned commercial motorcycles, among them Edo, Imo, Kano and Kaduna. But their world has not collapsed. If others abhor chaos, why should Lagos be cajoled or blackmailed into allowing the blanket of bedlam these riders and their sponsors were gradually spreading over the state?

Those who have invested a fortune in the trade deserve our sympathy. But must they insist that that they cannot thrive unless they that do their business in these six local governments covered by the restriction? What about the thousands of roads that are not affected by this order?

Will this restriction kill foreign direct investments? No. Construction giants are jostling to get the government’s nod to build the Fourth Mainland Bridge and the Red Line of the Light

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Rail system on which the government pins the hope of a more comprehensive solution to the state’s transportation needs. Everywhere, the road show for investors has been a huge success, with inquiries flooding in from all over the globe.

The success of the N100b bond signed a few weeks ago attests to the fact that Lagos remains an investor’s delight.

It has also been said that thousands stand to lose their jobs. They don’t have to. Let them find other routes on which their trade isn’t restricted.

Besides, lucrative as the motorcycle trade may be – one operator claims to be making N20, 000 daily (I doubt if bank executives land this kind of pay) – it is not the only honest way of earning a living.

The government is partnering the private sector to tackle unemployment. The Lagos State Employment Trust Fund (LSETF) has a N10 billion initiative for women entrepreneurs; the Ministry of Women Affairs and Poverty Alleviation (WAPA) is training women in trades and setting them up with equipment and the Office of Civic Engagement attends to the more needy.

Agriculture has been turned into a viable trade, with many of young graduates making a comfortable living out of it.

Artisans, such as bricklayers, carpenters and welders, are disappearing – no thanks to the quick cash rolling in from riding okada. Young people no longer learn trades. In the secondary school that I attended, it used to be compulsory for every student to learn a trade and our technical colleges produced worthy craftsmen. Now artisans come from neighbouring countries.

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Friday 28 February 2020

BUSINESS DAY

Editorial Frank Aigbogun

Sustainability of CBN’s unorthodox policies doubtful

editor Patrick Atuanya

Defending the naira whatever it costs the economy unrealistic

Publisher/Editor-in-chief

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

S

ince 2016, the Central Bank of Nigeria (CBN) has resorted to unorthodox policies and strategies to fix monetary challenges of the economy, with little or no complementary support from the fiscal side. One after another, all have been largely directed at addressing unintended consequences of prior unconventional policies.

While this may seem to work in the short-term, it is unsustainable as unanticipated shocks to the economy render these policies detrimental; the costs to the economy outweigh the benefits. It is like one using lies to cover previous lies.

Hence, the CBN may need to consider returning to orthodox policies.

It is no longer news that Nigeria is faced with challenges and fixing these issues has remained the major objectives of the fiscal and monetary sides

of authority in her economy.

At the most recent Banker’s Committee meeting – an umbrella body comprised of CBN officials and managing directors of deposit money banks – the CBN stated its stance on banks’ appetite for “cheap liquidity” to make “illicit profit”. It stated “OMO has now become poison as against honey that it used to be. Banks are enjoined to remove their eyes from OMO and play responsibly.”

Banks are among the major players in the Open Market Operation (OMO) – a financial instrument the CBN uses to manage liquidity in the financial market and achieving price stability. The CBN has restricted banks from this market –leaving only foreign portfolio investors (FPI). This is another unconventional policy of the CBN in its quest to make commercial banks take lending to the private sector seriously.

A strategy the apex bank as ad-

opted in order to spur economic growth –. This is very unusual as it defeats the notional purpose for the security.

Restricting OMO market transactions to foreign portfolio investors – following the earlier removal of individuals, non-financial institutions and now banks –means the CBN has succeeded in reducing the cost of managing liquidity which has been a burden since 2016. It will attract the inflow of dollars at rates currently attractive to FPI. It helps the “defend the naira at all cost” obsession of Emefiele.

And crashes rates in the fixed income market making cheap for the federal government and corporates to borrow and boost banks’ lending to the private sector.

However, on the flip side, it is a move that isn’t beneficial to domestic investors. Domestic investors are left with the option of either accepting a negative real return on their investment or

expose themselves to the highly volatile and risky Nigeria stock market. In the Nigerian Treasury bills market on Tuesday, average yields declined further by some 21 basis points to 3.90 percent as against 4.11 percent. This is far below inflation figures of 12.13 percent, hence a real income of -8.23 percent.

The CBN is working extra hard to paint a fairy tale of naira story against the view of reputable institutions that the naira is overpriced. It is in denial that a devaluation is inevitable and is upbeat about its ability to do; devaluation monger will wait in vain. Yet the foreign reserve is depleting amid the drop in crude oil prices due to coronavirus outbreak. It has declined to $36.42 billion, a more than 18 percent drop $44 billion in 2018.

While the unusual policies of the CBN may have paid off in some ways, it is doubtful if this stubborn stance will work in the medium- to long-term.

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi Haruna Jalo-Waziri Clement Isong

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Friday 28 February 2020

BUSINESS DAY

comment How hungry are you?

EIZU UWAOMA

A

long the bank of a village river, laid a man by the name of Izubuuba Nwalimu. Izubuuba Nwalimu held a reputation for profound wisdom. One day, he was meditating at the riverside when a young man interrupted him. “Master, I want to become your disciple,” said the man. “Why?” replied Izubuuba.

The young man thought for a while and said, “Because I want to find success and perhaps become great”.

Izubuuba at this point played numb to his statement as he buried his mind into the stroking of his finger in a back and forth loop deeper into the water, gently making ripples and leaving the young man inattentively to suspense. After a few minutes of the man repeatedly pleading, Izubuuba looked up to him.

Speechlessly, Izubuuba grabbed the man by the scruff of his neck, dragged him into the river, and plunged his head under water. After holding him there for a minute, with him kicking and struggling to free himself, Izubuuba finally pulled him up out of the river. The young man coughed up water and gasped to get his breath. When he eventually quieted down, Izubuuba spoke. “Tell me,

what you wanted most of all when you were under water.” “Air!” answered the man. “Very well,” said Izubuuba. “Go home and come back to me when you find a passion worth fighting and the right need for fulfillment as much as you just wanted air. That’s the key to success and greatness”.

How hungry are you? One of the secrets to growth is to stay hungry and foolish. Staying hungry means to never be satisfied, to always push you.

To stay foolish means to be willing to keep trying the things people say cannot be done. Everything around you, what you live as life, what you enjoy and hate is made possible by people who are not exactly smarter than you. They are just hungrier; they are just more curious; they are just bigger dreamers and believers. They are perhaps more strategic, creative, committed and have taken the right but daring steps, especially the ones you have not taken yet.

An African proverb says that “It is the person who is not hungry that says that the coconut has a hard shell”. You have the ability to crack the code of real greatness. I strongly believe that once upon a time, we were all born to be supernatural and extraordinary, but many of us just downgraded along the way to become human. You are more awesome than an average human. But that difference can only be found in drive and commitment.

Somewhere in Africa, every morning, a GAZELLE wakes up knowing it must OUTRUN the FASTEST LION or it will be KILLED. A LION also WAKES up KNOWING that it must run FASTER than the SLOWEST GAZELLE, or it will STARVE. It doesn’t matter whether you’re the LION or a GAZELLE – when the SUN comes up,

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you’d BETTER be RUNNING!!!

In the Gazelle illustration, the lion although naturally faster than the Gazelle most times seems to not catch the Gazelle. Off course! This is because the lion is running for its food while the gazelle is running for its life!

By psychoanalysis, our drive comes from our big why. Purpose is key. The people who have found a higher and deeper purpose than self-seem are hungrier and eager. To grow, you must stay Hungry and Eager. Your purpose will determine your hunger, and your hunger will determine how fast and how far you can go.

I believe that hunger is a gift to man. It spurs us all to leave our comfort zone. Those who don’t have it don’t have much. I can understand when a rich kid isn’t driven or not hungry. But for the guy still on the street who hasn’t made it and don’t seem hungry, what is your stomach full on? In metaphor, I can’t stand when underdogs or small businesses don’t have speed, drive or excellence.

I can understand when the management of large firms try to maintain status quo, or when their staff take time or concentrate on getting power and playing politics at work, or when there is a queue in attending to customers as a result of overbooking, so things can be delayed. I will blame it on bureaucracy and comfort. But what should I blame yours on? Comfort is a rich man or big firm’s problem. The truth is, you cannot be a poor man with a rich man’s problem. Small businesses should have no business with all these big men problems. Be hungry.

Have you noticed that hunger hasn’t killed anyone you know, not even the poorest or the laziest man

‘

In the Gazelle illustration, the lion although naturally faster than the Gazelle most times seems to not catch the Gazelle. Off course! This is because the lion is running for its food while the gazelle is running for its life! By psychoanalysis, our drive comes from our big why

S

In order to ensure the continued success of these enterprises, growth is imperative. One of the most critical catalysts for growth is a business’s ability to access credit. The paradox, however, is that in Nigeria, a country which, according to the World Poverty Clock, has become “the poverty capital of the world”, those most in need of credit are largely ignored. The global development monitor put Nigeria at the top of the list of countries with high rates of entrepreneurial activity – almost 40 percent of people aged 18-60 owning businesses. Many of these businesses will never realise their full potential because of a lack of access to capital.

Yet, the impact is proven. According to the great economist, John Keynes, in an early study, results showed that if the grant of bank credit to an entrepreneur is combined with their existing credits; this allows the entrepreneur to make an addition to current investment which would not have occurred otherwise; and ultimately, income will be increased at a rate which will normally exceed the rate of increased investment. A study conducted in Ghana revealed that all microfinance products positively affect small business growth, and the greatest influence is micro loans.

Acknowledging the impact that solving this challenge could have on the economy and the quality of life of many Nigerians, the Central Bank of Nigeria (CBN) introduced a policy mandating commercial banks to improve access to mainstream consumer credit. This new policy directing banks to lend at least 65 percent of their deposits is a critical step in the right direction, as it has birthed a variety of new loan schemes, including Access Bank’s Payday Loan, GTBank’s Quick Credit and Sterling Bank’s Specta platform.

As banks seek to create more credit options for www.businessday.ng

MSMEs and individual borrowers, it is important to examine whether or not this new reality will address the challenges faced by MSMEs at the bottom of the pyramid.

Recent reports indicate that the adoption of credit amongst the working class and the private sector has shown signs of improvement, and is predicted to grow consistently through the year, which could be positive for economic growth. In many ways, the take-off of Nigeria’s consumer credit is not as far reaching as it should be. For one, the general discourse surrounding the topic of consumer credit cannot exist independently from the wider conversation around financial inclusion. There are still millions of Nigerians, many of whom own MSMEs that are not a part of the formal financial system and are victims of the limited reach of the formal financial sector which provide a first layer of exclusion that is then exacerbated by the rigidity of one-size-fits-all lending policies.

A randomised field experiment among 1,148 poor women in 40 villages across rural Mongolia was conducted; results showed that group loans had a positive impact on female entrepreneurship in particular. Among women who participated in a joint-liability group loan, there was an overall increase of 9 percent in the incidence of women operating a business. This study and the clarity of approach that can now be taken by financial service providers as a result, indicates the likely success and potential impact. This, as a result of human-centred qualitative data, and as a result of tailored solutions.

This is reinforced by research which suggests that financial products that come with additional services – technical training, awarenessbuilding, warehousing services for farmers,

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you know? Here’s why: In Microeconomics, it’s called the Utility Theory. When broken down, it simply explains that for you to move ahead you must leave your comfort zone. For you to get there, the pain of where you are (say hunger) must become larger than the total effort and sacrifice to get there (steps to get food). Until this happens to you, your business, family, team, you would only keep complaining.

By Statistics, it’s only less than 20 percent of any generation that ever succeeds. This is because most people are ordinary (80 percent), they wait on the Utility Theory to prompt them to action. And only extra-ordinary people (20 percent) go the extra-mile.

Even though we strive to be successful and significant, but only a few of us will be anything close to greatness. Greatness is the art of extraordinarily impressing the times lived; it requires a lot of sacrifice and eagerness. Posterity needs to see a dying drive to make sacrifices while taking steps. We need defined steps to all of these. It starts when we begin to see a need for us to go further ahead of just trying to succeed in our wants.

Success dies with us but greatness outlives us. Know what you are striving for; is it to just get by, to pass through, to do better than good enough, to cut corners just to succeed to show off or to significantly add value? These drives are the difference between the interest, the commitment, the struggle, the mere success and real greatness. By your hunger, you choose; stay hungry, stay foolish.

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

Access to credit is a key catalyst for MSME growth

eventy percent of the total number of employed people in the country – about 59 million people – are employed by MSMEs. These MSMEs account for N1.5 trillion of revenue generated in Nigeria and contribute 48 percent to GDP annually.

Ikeja’s Computer Village is a perfect example of this entrepreneurial spirit and economic potential – according to Ojikutu Adeniyi, president of Computer and Allied Products Dealers Association of Nigeria, the market makes up to N 1.5 billion daily.

When one takes into consideration the fact that this is only a single market hub in the state, one can only imagine the enormous value that sits across the entire nation’s MSME industry.

The work that I do at the Lift Above Poverty Organisation (LAPO) is centred on deepening the pivotal role that these micro and small enterprises are already playing in Nigeria’s economy.

In a recent article, Godwin Nwabunka (founder, Grooming Centre) buttresses this point by highlighting that Nigeria’s informal economy is largely driven mainly by microbusinesses, many of which are run by women.

Salamatu is one of these women. A petty trader in Maiduguri, Salamatu runs a successful “kose” stand by the side of the road. Expanding her business from a roadside stand to a larger stall is a business decision that would increase her earning potential as well as increase the likelihood of her becoming financially independent and a job creator. However, alongside many other challenges that Salamatu’s business will face, access to credit will be fundamental. Female entrepreneurs and employers face significantly larger barriers than their male counterparts in gaining access to financial services.

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Godwin Ehigiamusoe market information, etc – create better outcomes for customers than financial products alone. Evidently, what these two findings reiterate is the need for a significantly holistic understanding of people, in order to appropriately cater to their needs, and actually see results.

Creating a thriving environment and driving inclusivity for MSMEs requires sound interventions that will successfully encourage banks to lend more to MSMEs. However, how appropriate these interventions are, given the consideration of local conditions, will determine their effectiveness. Favourable credit options for MSMEs are not readily available, and when they are, they are inflexible and very traditional.

Today, when an MSME owner walks into a bank or even microfinance banks for a loan, there is still an over pronounced focus on business plans and other documentation that many of these businesses simply do not possess. Even with an increasing variety of credit options by commercial banks, the elephant in the room is always the issue of collateral.

In Nigeria, 98 percent of the MSME sector is made up of micro businesses, many with low asset values. According to research, 47 percent of banks reject MSME loan applications due to unavailable collateral or consigners whilst 27 percent of MSMEs do not apply for loans because collateral requirements are too high.

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Friday 28 February 2020

BUSINESS DAY

cityfile

Foreign NGO picks Nigeria first African country to understudy

U

nited Way Worldw ide, a U.S based nongovernmental organisation (NGO) has chosen Nigeria as first African country to understudy human trafficking and other forms of slavery.

Janet Butler, the Vice President, Africa Region of the NGO, said at a stakeholder’s consultative forum in Abuja on human trafficking and all forms of slavery in Nigeria.

According to Butler, since inception of the organisation 30 years ago, it had been advocating for human development, community development, as well as sensitising the public on the need to be focused and desist from imbibing negative tendencies.

According to her, in 2015, the organisation inaugurated human trafficking and slavery arm and decided to begin the exploitation of the issue in Africa in 2019 in order to find a lasting solution to it.

“Nigeria is the first country we are exploring in Africa for such issue; we are here to do a landscaping analysis of those who

are doing this work, the best practices and intervention that will work all in the aim of getting solution.

Butler said that the NGO would be partnering the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) while understudy the country.

She noted that although trafficking and migration was everywhere in the world, the issue seems to be growing in Africa The director of legal and prosecution of NAPTIP, Abdulrahim Shaibu, who lauded the idea of partnering with the agency, said that the collaboration of other organisations would help to see to the end of the scourge of human trafficking.

Shaibu, who represented the director general of NAPTIP, Julie Okah-Donli called on leaders at all levels to rise up and work to end human trafficking in their jurisdictions.

“There are so many regulations that are going, especially on the angle of research; this NGO wants to gather data, information that can aid all stakeholders to be able to combat the crime of human trafficking,” he said.

Kano: Residents back ban on street begging

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esidents of Kano have commended Governor Abdullahi Ganduje’s decision banning street begging in the state.

Some residents, who spoke on the development, believed that the action would add value to human dignity.

One of the residents, Abubakar Wada, particularly lauded the governor for the decision to prosecute parents whose children are found begging on the streets instead of being in school.

“The number of children roaming the streets of Kano during school days showed that parents somewhere have failed in carrying out their responsibilities.

“No child was brought to this world to take care of himself and his responsibilities, so why should people bear them when they aren’t ready for them?”.

An Islamic scholar, Sheikh Ahmad Salih, said the word almajiri used to describe child beggars in Northern Nigeria, was adopted from the Arabic word “Almuhajir.”

He explained that the word means a scholar who leaves his comfort zone in search of knowledge but not a beggar as believed.

He revealed that begging in the name of searching for Islamic knowledge was not ordained in Islam, but a rather cultural thing.

A housewife, Umaira Ibrahim, also commended the governor for the decision, saying that most mothers were forcefully separated from their children, who were sent out to learn the Qur’an but ended up begging to survive.

She said, “If a child that goes to the formal school can be successful, the child in the informal school can obtain such success too.”

G ov e r n o r G a n d u j e had declared total ban on street begging and threatened to prosecute parents of children found on the streets.

The governor announced the ban on Tuesday at the launch of Basic Education Service Delivery for All (BESDA) and distribution of 7, 500 appointment letters to volunteers for the pilot scheme. www.businessday.ng

L-R: Timi Tope Ologunoye, fellow at Institute for Cerfified Business Process Outsourcing and Shared Services Professionals (ICBPOSSP); Tunji Balogun; Peter Akindeju, president at ICBPOSSP; Terrie Akindeju; Yemi Faseun, head of Human Resource at FBN Quest; and Titi Awoseyin, registrar at ICBPOSSP, during induction of members in Lagos.

NDLEA seizes 544.53kg illicit drugs in Anambra Emmanuel Ndukaba, Awka

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he National Drug Law E n f o r c e ment Agenc y (NDLEA) says it seized 544.53 kg of illicit drug in Anambra State between January and February 2020.

Mohammed Idris, the state commander of the

agency, disclosed this during his briefing on the activities of the command since he assumed office in December 2019.

According to Idris, a total of 45 suspects, including 42 males and three females, were arrested in connection with the illicit drugs during the period under review.

“The weight of the illicit

drugs seized are: cannabis sativa – 224.152kg, cocaine – 0.0464kg, heroine – 0.0046kg.

“Psychotropic substances; crystalline meth – 0.0052kg, broncleer with codeine syrup – 320.0kg, tramadol – 2.180kg and Rapnol – 1.540kg,’’ he said.

The command, he said, also secured five convictions, filed 13 new cases

at the Federal High Court, Awka, while 149 cases are pending in courts, 23 drug addicts currently undergoing counseling and rehabilitation at the agency’s facility in Onitsha.

Idris attributed the success recorded within period to the good working relationship between the NDLEA and the state government.

Traffic congestion: FCTA to open more roads JAMES KWEN, Abuja

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ederal Capital Territory Administration (FCTA) says it has resolved to open up more roads, including those still under construction as part of solutions to the protracted traffic congestion in some of the roads axes within the city centre.

The chairman FCT ministerial task team on traffic management, Ikharo Attah stated this during the inspection of the Inner Southern Park Carriage Way which is under construction.

Attah said that FCT minister, Muhammad Bello is determined to provide sustainable solutions to the disturbing traffic problems, disclosing that the road stretch from

AYA junction, connecting Nyanya and Maraba, leading to Area 1 and other parts of the city would soon be opened to motorists.

Attah stated that even though the roads have not been fully completed, the minister has approved that the contractors hasten the asphalt laying on the roads, so that it could be opened to ease the traffic from Nyanya axis.

“This interchange is a very sensitive portion of the roads, because it distributes traffic coming from Nyanya axis that is having heavy vehicular traffic on daily basis.

Those who try to connect Area one, via ECOWAS Secretariat and Power House junction, may not need to go through that way once these links are opened up.

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“We are cutting down the traffic hours to the point of saving about four to 11 minutes. This may not be final finishing, but the road has to be opened to enable commuters and motorists coming from the Nyanya axis have some relief”, he said On his part, the project engineer, Richard Dauda confirmed that the interchange of the Inner Southern Carriageway would be opened in line with the directive of the minister.

Dauda explained that the road starts from AYA junction and stretches to the Southernpark Way, by the National Christian Centre while another segment of the road also extends to Galadimawa junction.

“The progress of work is such that all the bridges @Businessdayng

have been completed, they are eight bridges in four different locations. Work is still on progress, but to ease traffic for those coming from Nyanya axis, the interchange will soon be opened for them. FCT minister is very keen about resolving traffic gridlock within the city. Within the next two months, the road should be opened “, he said.

Gennaro D’Itria, the representative of the Contractor handling the project stated that the roads can be ready for motorists if the funds needed are provided.

“We are ready to complete the works according to schedule. We need about N500 million to finish up this segment and another N1.5 billion to complete the whole projects,” he stated.

Friday 28 February 2020

BUSINESS DAY

COMPANIES & MARKETS

15

COMPANY NEWS ANALYSIS INSIGHT

BANKING

Zenith Bank to slow loan growth on weak economic prospects in 2020 SEGUN ADAMS

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fter growing its loan book by 22 percent last year, Tier-one lender Zenith Bank plans to slow loan growth to two percent in line with domestic economy growth in 2020, the Bank’s CEO said Wednesday.

“Loan growth is a reflection of what we see in the macro-environment...

(Zenith Bank) cannot grow beyond the economy,” said Ebenezer Onyeagwu, the bank’s Chief.

The single-digit target could still be increased to take advantage of opportunities, the lender added.

Last year, Zenith Bank’s gross loans increased to N2.46trn after a policy by the Central Bank of Nigeria (CBN) forced banks to lend as much as 60 percent - then 65 percent - of their total deposits or risk sanctions.

A high base in 2019 and caution to avoid the negative impact of a challenging microenvironment on the bank’s asset quality informed the bank’s decision, said Aderonke Akinsola, banking analysts at Lagos-based Chapel Hill Denham.

“But I wouldn’t be surprised if they grow loan higher than their forecast in 2020 just like they did last year,” said Akinsola.

The economy grew by 2.27 percent last year beating the International Monetary Fund’s forecast but the Coronavirus outbreak

is expected to affect economies around the world in 2020 including Nigeria’s.

The virus outbreak saw the IMF recently lower its 2020 growth projections for Nigeria by half a percentage point to 2 percent.

For banks in 2020 the hurdle would be more than

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and similar fees decline.

W h i l e Z e n i t h’s 2 0 1 9 performance was in line with the expectation of analysts at Lagos-based Codros Capital, they expect pressure on interest expense in 2020, due to the implementation of the higher CRR. “Although the Differentiated Cash Reser ves Requirement (DCRR) may ameliorate this somewhat,” the analysts said.

Zenith Bank last year grew its profit by 8 percent to N208.843bn.

Int e re s t i n c o m e l a s t year declined by 5.6 percent to N491.27bn while non-interest income grew 2 9 . 0 p e rc e nt h i g h e r t o N232.12bn.

The bank, however, saw growth in interest income from loans and advances quarter on quarter of 29.1 percent, reflecting the significant expansion in loans and advances to N2.31trn, as the bank strived to meet the minimum LDR limit of 65.0 percent, analysts at Cordros Capital said.

Zenith Bank announce d a dividend of N2.5 per share bringing its dividend yield to 13.12 p e rc e n t a t N 1 9 . 0 5 p e r share on Wednesday while its shares have gained 2.42 percent year-to-date.

CONGLOMERATES

Nestle appoints Google Country Manager for Nigeria to Board MCG-giant Nestle Nigeria on Wednesday advised investing public of the appointment of Juliet Ehimuan, the current country Manager for Google in Nigeria, as an independent Non-Executive Director of the Company.

The appointment took effect February 24, 2020 the company said in a note to the Nigerian Stock Exchange (NSE).

Ehimuan is expected to bring about a quarter century worth of experience to the board of the consumer goods firm, Nestle Nigeria said.

The newly appointed independent Non-Executive Director started her career in 1995 and has worked for several firms in Nigeria and abroad including Shell Petroleum and

But a recent threat to raise the CRR higher to as high as 30-40 percent if the apex bank detects that the banks bid for Open Market Operations (OMO) raises the bar further for lenders who have already seen the allowable rates on electronic transfer ser vices

L-R: Ashley Smit, operations manager, Legend Hotel; Zuriel Oduwole, American girl education advocate & film maker; Funmi Philip-Adewunmi, sales manager, Legend Hotel, and Gboyega Fadowole-Aje, National Fund Devt & Communication coordinator, SOS Children’s Villages Nigeria, at a one-day training session on film making with Zuriel and Children from the SOS Children’s Villages solely organized and hosted by Legend Hotel Lagos Airport, Curio Collection by Hilton.

APPOINTMENTS

SEGUN ADAMS

the forecasted slowdown in the domestic economy.

Analysts say banks would face a much steeper year after the CBN moved to raise the Cash Reserve Ratio (CRR or bank’s mandatory deposit with the CBN) to 27.5 percent late January to curb inflation.

Microsoft United Kingdom in 2005.

According to Nestle, Ehimuan started a firm called Strategic Insight Consulting Ltd and later became General Manager of Chams Plc’s strategic Business Units before her appointment to Google as country Manager for Nigeria in 2011.

A graduate of Obafemi Awolowo University (OAU) in Ile-Ife Osun State where she holds a degree in Computer Engineering, Ehimuan also has a Postgraduate Diploma in Computer Science from the University of Cambridge in United Kingdom and MBA from London Business School.

She is also a fellow of the Cambridge Commonwealth Society.

Ehimuan’s contributions to technology and entreprewww.businessday.ng

neurship have won her several awards and recognitions including the London Business School Global Women’s Scholarship.

Nestle grew its revenue by 4 percent to N211.35bn for its nine month period ended 30 September 2019.

The consumer goods firm also noted a 11.2 percent increase in profit to N36.84bn compared to N33.118bn in the same period of 2018.

Nestle Nigeria manufactures, markets and distributes food products throughout Nigeria.

The company which is the biggest in the FMCG space, also manufactures Hydrolysed plant protein mix and other food products based on its local agricultural raw materials under its backyard integration program.

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Themis Capital splashes N156.8million on new UAC shares OLUFIKAYO OWOEYE

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hemis Capital Management, the core investor at UAC of Nigeria Plc (UACN) has increased its investment in the conglomerate with the purchase of additional 15,68million units of shares at a weighted average price of N10.

Further breakdown of the transactions shows that 14,280,219 units were sold at N10 per unit, four different transactions of 300,000 units were sold at N9.95 per unit for each of the transactions and 200,095 units were sold at N9.95 per unit. The purchase consideration for this transaction, which was done

on the floor of the Nigerian Stock Exchange, is put at approximately N156.7 million.

With the acquisition of additional shares by Thelmis Capital Management, it has added to its stake in the conglomerate as it is already the single largest investor with about 8.08percent shareholding as of December 31, 2018.

Nigeria’s oldest conglomerate has gone through some major restructuring in recent times following investments by core investors and other major shareholders. In September 2019, UACN announced the outright dissolution of its interest and restructuring of

@Businessdayng

UAC Property Development Company (UPDC) with the transfer of its interest directly to the shareholders.

Over the years, UACN has transformed from a very large conglomerate with footprints in different sectors of the economy to a leaner organization with interest in Manufacturing, Food & Beverage, Logistics, Agro-allied Industry, Paints.

The investor, Themis Capital is an active investment company focused on concentrating capital, talent and effort on a select number of long terms investments in companies that will benefit from Africa’s demographic trends.

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BUSINESS DAY

COMPANIES&MARKETS CONSUMER GOODS

Business Event

Asharami Synergy unveils new range of lubricants products DANIEL OBI & DIPO OLADEHINDE

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sharami Synergy, a Sahara Group company, has raised the bar of quality and top performance with the launch of Asha Engine Oil, its new range of lubricants in the Nigerian market.

The investment landscape is changing with major oil marketers taking advantage of the fact that the lubricants market is deregulated and with little government interference, a development Asharami Synergy plans to take full advantage off.

According to Moroti Adedoyin-Adeyinka, Managing Director, Asharami Synergy, the new products have been specifically designed to offer the highest standard of quality, safety, durability, affordability and exceptional performance.

“The engine oil we are presenting today is a product of Asharami Synergy’s passion for providing solutions through innovation. We are introducing the gold standard of quality among lubricants and we are delighted that Nigerians can now turn

to the Asha Engine Oil as their preferred engine oil across the nation,” she said.

The lubricants products which can be used for all lubricants for cars, motorcycles and other multipurpose vehicles include Asha crest, Asha HD40, Asha HD Xtra, AshaHD premium, Asha Xtra, and Asha Trans.

The lubricants market in Nigeria has grown over the years from 2012 to 2017 with the growth in the number of second hand and new passenger and commercial vehicles in the country.

Penetration of used cars and the requirement of more frequent lubricant changes in older vehicles as compared to newer models have contributed to the volume demand of automotive lubricants in Nigeria.

“In a market contending with quackery, consumers can now move with Asha to safeguard and optimise the performance of their engines. The Asha Engine Oil range can be applied to all manner of engines in generators, light and heavyduty machines, cars, trucks, motorcycles, among others.

We are delighted to give

Nigerians the ultimate choice of engine oil that is pocketfriendly and outstanding by all parameters,” she added.

The Asha Engine Oil Marketing and Sales Manager, Seun Yussuf disclosed at the launch of the lubricants that Asharami Synergy was working with top distributors and other stakeholders to ensure seamless access to the engine oil across the nation.

“Asha Engine oil is here to give all consumers peace of mind whenever they are looking to buy lubricants for their engines. We urge everyone to move with Asha for ultimate protection of their engines.”

Asharami Synergy’s operations and processes have earned the company several ISO certifications for quality and safety.

Experts say increasing favourable regulations in Nigeria’s lubricants market, collaboration w ith transportation companies, increasing knowledge of consumers and providing better quality lubricants at lower costs will aid the manufacturers of lubricants in Nigeria to grow and achieve higher profits.

CONGLOMERATES

Taxaide introduces new technology to aid tax compliance, data protection ENDURANCE OKAFOR

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axaide Technologies Limited (TaxTech), one of the leading tax management and technology firms in Nigeria, has unveiled technological tools aimed at enhancing a more effective tax administration for Nigerians and tax authorities.

According to the Lagosbased company its new technology offers different tools that can help taxpayers and administrators in pursuing streamlined, discreet, transparent, and efficient tax functions that skilfully addresses all tax management and administration issues.

The company which believes that effectiveness of a high-performance tax function relies on access to and use of information and technology said it is well equipped to provide a wide range of tax management services with and without the integral use

of its technologies.

Bidemi Olumide, CEO of Taxaide, said the firm, through its technology development subsidiary, produced PITApp to serve as an aggregator of all Personal Income Tax (PIT) obligations and urged all taxable Nigerians to ensure that they meet their PIT obligations before the deadline.

“As part of our work in building a more effective tax management system, we have built the PITApp to simplify the PIT returns filing and remittance process for Nigeria tax residents,” Olumide said.

While describing the functions of PITApp, Taxaide, said the platform is both a webbased and mobile application service.

“The app is designed to make life easier for Nigerian taxpayers; especially in an increasingly technologically-driven world,” Onatoye Onakomaiya, Chief Technology Officer of Taxaide said adding that “PITApp www.businessday.ng

saves you time and money by reducing resources that would have been spent on undertaking these tasks manually.”

With an estimated 900 revenue collecting agencies (Federal, State and Local) in the country jostling for the attention of Nigerian taxpayers, Olumide said it is a huge distraction from the core economic activities that should generate the tax in the first place.

“Every taxable person or organisation should focus on its core commercial mandate while leaving the operational aspects of their tax compliance to accredited tax managers. This is the essence of Taxaide; to take care of those distractions. From tax audits management to payroll management, to PIT management, to corporate income taxes management, to the management of transaction taxes like Value Added Tax, Withholding Tax, etc,” Olumide said.

L-R: Cecilia Igwilo, of the faculty of pharmacy, University of Lagos; Ifeanyi Atueyi, vice president, Nigeria Academy of Pharmacy; Lolu Ojo, chairman, Education Summit Committee of the Academy; and Lere Baale, chief executive, Business School Netherlands, at the formal inauguration of the Organizing Committee for the forthcoming Education Summit of the Nigeria Academy of Pharmacy, in Lagos

L-R: Chioma Igwe, brand manager, Three Crowns; Mr and Mrs Sheriff Farumi, winners of the Three Crowns “How We Met” Valentine’s campaign, at a banquet dinner courtesy of Three Crowns Milk in Lagos

L-R: Yetunde Kolade, commercial manager, Nigerian Bottling Company (NBC); Latifatu Ganiyu, one of the beneficiaries of the ‘Gbe Bottle E’ N100,000 give away, and Wale Faluyi, regional trade marketing coordinator, NBC, at the second phase of the NBC’s Retailers Reward Program in Ibadan, Oyo State

L-R: Nwamaka Onyemelukwe, public affairs and communications manager, Coca-Cola Nigeria Limited; Ishaq Adebayo Salman, chairman of the Board, Federal Medical Center, Owerri; Achigbu Kingsley, medical director, Federal Medical Center, Owerri, and Michael Arimanwa, rector, Federal University of Technology, Owerri, at the inauguration of newly installed medical equipment at the Federal Medical Center Owerri under Coca-Cola’s Safe Birth Initiative

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@Businessdayng

Friday 28 February 2020

BUSINESS DAY

MONEYINSIGHT

17

Millennials are turning to robots for financial advice STEPHEN ONYEKWELU

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illennials, the first generation to grow up with the internet and born after 1980 are disruptive and rely on technology to shop, listen to music, communicate with friends and hail a cab, now they take personal investing advice from robots.

From social media to Amazon, Spotify, Uber, and Kolobox, millennials have transited, in the words of Bill Gates from electricity-based to an internetbased lifestyle. Gates had in his book “Business at the Speed of Thought” argued that it humanity long to build a civilisation around electricity. Now, with the internet and World Wide Web, the world has entered into a new mode – web-based civilisation.

Financial Technology (fintech) companies are taking advantage of these traits to disrupt the personal investing industry.

“Just as manufacturing companies have replaced assembly line workers with robots, these companies have replaced financial advisors with robotadvisors, which use big data and algorithms to determine the best places to put clients’ money—and appeal to a whole new generation of investors” Michael Blanding, a columnist at the Harvard Business School Working Knowledge wrote in an article titled “Why Millennials Flock to Fintech for Personal Investing”.

Blanding said traditional financial advisors cater to baby boomers with substantial savings, requiring minimum

amounts for investment upwards of $100,000 to access their services. By contrast, industry-leading Wealthfront and similar firms such as Betterment, Vanguard Personal Advisor and Acorns have tapped into an underserved market by allowing clients to invest as little as $5,000. Wealthfront doesn’t even charge a fee for assets of less than $10,000—and even after that charges a 0.25 percent fee, as opposed to fees of 2 to 3 percent by traditional firms.

In Nigeria, Kolobox has also presented products to cater to

this underserved market. The micro-investment platform aggregates fund from customers pulls it together and because of the joint might, it is able to negotiate for higher returns on investment. Everyone in the pool gets the same rate of return on their investment, irrespective of the amount invested.

“We put our funds in Treasury bills, usually products that are backed by the Federal Government. Kolobox, among our competitors, is the only one that is regulated by the Securities and Exchange Commission.

Your funds are guaranteed and insured. We do not give our funds to microlenders where the risk of loss of funds is high” he added.

The platform has a number of products, where you can lock in your funds. It also has others where your funds are not locked. Locked options give higher returns naturally.

Kolobox has partnered with Radix Capital, which has been around for the last 15 years and done almost all the Lagos State bonds. They are one of the key investment banks in Lagos.

They are SEC-regulated and before any product is brought to the market it has to be approved by the Commission.

One new feature on the platform is group investing. This allows an individual to invite family, friends, and colleagues, making investing more fun.

This can help people set short medium and long term goals, a family may want to save towards their mother’s 80th year birthday or for a marriage. Saving together then serves as motivation. Kolobox was launched in July 2018.

L-R: Umar Oba Adelodun, Chief Executive Officer/Co-Founder; Miriam Adeobafemi, Business Development Manager; Abdulquawiy Olododo, president and Co-Founder, and Lateef Adedimeji, Brand Ambassador, all of Heart & Capital Nigeria Ltd, during the launch of Eterno cashew investment product at the company’s office in Ilorin, Kwara State on Monday.

Defaulting on easy micro-loans harms credit scores STEPHEN ONYEKWELU

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ehinde heaved a sigh of relief, she had just paid off a microloan of N30, 000 spread over a three month payment period at 20 percent interest rate per month with Paylater, a Fintech Company.

Seven days afterwards, she got this message from KwiMoney, another Fintech Company “You’ve been se-

lected for an instant loan!

Visit get.kwicash.ng for KwiCash and borrow from N1k to N100k. Your loans grow with good payment.”

This got Kehinde thinking.

She has a great payment history with Paylater. In fact, she makes it a point to pay off her microloans before it is due and her current micro-loan with Paylater has come at 12.50 percent per month a difference of 7.50 basis points www.businessday.ng

from what she paid on the last loan she took. So, the interest rate charged on her loans is falling because of her payment history.

This is not the story of her colleague Linda. Linda took her first micro-loan with Branch International, a fintech company. However, she defaulted on her payment by over seven days. The company persuaded her to meet her financial obligation, she

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eventually did.

Before she paid off the micro-loan, she attempted to take another with Paylater but she was told she did not qualify. She was very surprised at how this could be.

In addition, Branch International downgraded her status by reducing the range of micro-loan she can access.

With the advent of bank verification number, credit scores and history will be@Businessdayng

come easier to track and this will have significant implication for personal finance.

A credit score, also known as a credit rating, is a number that reflects the likelihood of an individual paying credit back. Lenders like banks and credit card companies will look at your credit file when they calculate your credit score, which will show them the level of risk in lending to you.

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Friday 28 February 2020

BUSINESS DAY

Friday 28 February 2020

BUSINESS DAY

19

INTERVIEW

How Pension Fund Administrators are surviving amid low yield environment Staying ahead is crucial for Pension Fund Administrators (PFAs), but how does the rising inflationary pressure and compressed fixed income yields impact their investment decisions this year? In an interview on CNBC Africa, DAVE UDUANU, CEO of Sigma Pension, provided insight into the activity of pension funds amid current realities.

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FAs now find themselves in a place where they are now struggling to give contributors real returns for their investment at the end of each year in a low-yield environment. What was 2019 like for you and what is your strategy for 2020?

2019 was a good year. I can say that now relative to what we have today. We started the year with very high yields in the bonds market and the treasury bills market, and that continued for the first three quarters of the year until the Central Bank came up with the policy on OMO. However, these yields were sort of depressed due to the poor performance of the equities market.

So in 2019, a number of PFAs were able to deliver returns that were slightly above inflation in the four key funds that we manage.

However, this year is looking tougher, it’s looking challenged.

Bonds yields are below 10 percent and Treasury bill yields are at 4 percent – all below inflation.

I think the key question is: How do you manage savings in a country where yields are below inflation?

Even aside pension funds, for the man on the street, If you want to achieve the goal of financial inclusion which is for them to open bank accounts and put their money in the bank, you have to ensure that at least interest rate is at par with inflation or very close to inflation but that is not the case here.

PFAs are really going to struggle this year; however, the equities market has come to support the yields. In the first month of the year, it (NSE All-Share Index) was around ten percent and in the first two weeks of the year it started as the best performing stock market in the world – (but) those were early days.

Some PFAs see a decline in the valuation of some key stocks especially banking stocks that would have good dividend yield for investors. They also lament about the unavailability of additional alternative classes to help support what the equities market can deliver to them in 2020.

Is that your sentiment too?

The market is driven by liquidity.

We see a lot of PFAs and indeed other investors jumping into the equity market. The market has been depressed for the last there years; there are some good names that rallied in the last two months.

Banking names would struggle this year because as you

know, the CBN raised its CRR and that means that banks again are going to struggle with liquidity as all the money is locked up in the system and that would impact the returns and profitability for the year.

However, I am waiting that the market would do much better than last year; waiting that investors don’t simply have an option than to put money in the market.

PFAs were sitting on less than 10 percent equities allocation; they can potentially go up to 25 percent or 30 percent in some funds.

I don’t think the FPIs would jump in now until there is clarity on the currency.

So we think that the equities market is going to do better this year than last year. On the alternative side, I think one of the things that this environment has forced is PFAs to start looking at alternatives and becoming more creative which will lead us nicely into the discussion of infrastructure. But even before then, PFAs are looking at investment in corporate bonds while some of the big corporate names are coming into the market to raise bonds rather than going to the banks to raise money.

So I think that PFAs now have to think outside the box, I would say that in the past five years they’ve been sitting on the desk because bond yields were very high, now they have got to look at alternative investments and look for how to channel those growing pension funds.

Is that the thinking of Sigma pensions now?

Certainly. We are looking at how to make this Investment. It is difficult because the environment is challenged. So for instance, in the area of real estate and housing, there is significant demand because the housing deficit is huge and pension funds sitting on N10 trillion cannot deploy some of those in the housing market. It is a question of finding the right method of delivering the houses at the right price. We believe that the demand is there.

We’ve had these discussions about real estate, bringing appropriate vehicles to ensure this is mitigated but that conversation is still on-going and there doesn’t appear to be a solution at this point. So what makes you confident that would work out this year?

Well, I think that because the yields have come down significantly we are beginning to see mortgage rates that are close to 10 percent and what the PFAs are trying to do is come up with a vehicle that allows borrowers

borrow at 9 percent but we also have equity in the vehicle in the way that allows us to make more money on the equity side. I don’t know, for some reason, it is difficult for us to get anything done here, and we have all these ideas.

You go talk to the regulatory authorities but there is always one roadblock or stumbling block. I would say that the pension funds are really working hard we have a housing work stream which we really worked hard on but for some reason it has not seen the light of day; the other collaborators and other partners that we believe should come to the table to make this work and one of them obviously is the government. We believe that at the end of the day if government can support us by way of maybe - I don’t want to use the word guarantee - when I say government I don’t mean federal government, I mean government agencies maybe the InfraCredit or one of those Sovereign Wealth Funds just to ensure that by way of guarantee or at least to ensure that when the money is deployed in housing it comes back I think that is where we are on the housing solution and we’ve made our submission known to the relevant regulatory authorities and we are just expecting them to get back to us.

Speaking of government, obviously you’re quite aware of the trending story of the federal government seeking to borrow N2trn from the N10trn pension pool. Now pension reform act 2004 empowers the government to borrow 20 percent of the fund for national issues. But what is your take, given 70 percent is already in government securities and now the government is coming for N2trn?

I think the story out there is very sensational so I happen to sit on the committee that is discussing this. So the reality is that government is not going to borrow N2trn what government is trying to do is use up to 20 percent of the pension fund which happens to be N2trn to invest in physical and national infrastructure. So a committee was set up, it is made up of Nigerian Sovereign Investment Authority (NSIA) , PENCOM, Ministry of Finance and CBN. And where we have landed is that there would be a fund set up and managed by the NSIA, so it is not government really managing the fund.

I think there were two mains issues: one is that government is borrowing. Government is not borrowing; it is a fund that would be managed by the NSIA. It is a commercial fund. We are even

trying to crowd in international investors because if the pension funds put money in the fund we think that international investors would be encouraged to put money in the fund. The critical problem is the interest rate. At what interest rate?

The story out there is 6 percent. 6 percent to 7 percent happens to be the rate at which some of the federal government bonds are trading at, so they are saying that if this environment continues which they say it would- the fund can issue notes at 7 percent.

But what we’ve said to them is that the fund should issue notes at commercial rates. If the commercial rate is 10 percent that’s what it is, if it’s 12 percent, that’s what it is.

We do not think the present interest rate environment is sustainable; it is not market-determined; it is the distortions in the market that is causing rates to go down and we believe that rates have started going up to 6-7 percent.

So the fund would be managed by NSIA-professionally managed- pension funds would sit on the advisory board so will the federal ministry of finance and the CBN. The key thing is that there are about 20 national critical infrastructure projects that would sort of be warehousing the fund.

One of the things that we are seeking to do is to get that done so that those assets can be warehoused and taken out of the ministry that typically would build them under a procurement process.

Those assets include the second Niger Bridge, Lagos-Ibadan expressway. So

they are all specific projects.

So the fund would then issue bonds that are tied to those assets and the idea is that those projects would be run by private sector companies under a PPP arrangement. Those private sector companies will issue the bond, and then the PFAs will be encouraged to take an equity stake in the project.

So if you take for instance say LagosIbadan expressway, there’s what we call the Right of Way. The Right of Way is 500 meters, 1km along the expressway and under Right of Way there would be things like trailer parks, hotels, petrol stations etc. When you value them, there’s a lot of value in the equity of those assets.

So the thinking of the fund managers and the committees is that perhaps these PFAs lend and then buy instruments below double digits maybe 7,8,9 percent whatever it is, then they get equity warrant which allows them to participate in the upside of the Right of Way assets.

At the end of the day, their blended return would be as high as 15 percent.

So I think we need to make that clarification, a lot of our customers have been calling us. Government is not going to borrow any N2trn.

This fund would take at least one year to conceptualize and the investment would be made maybe over a five year period. However, what we are saying is that this perhaps would be the most important investment project in Nigeria in the last 10 years. If you look at the national budget, it is in N10trn what is allocated to transport infrastructure is about N380bn that is less than a billion dollars. It’d take us 20 years to build these projects and you know how these budgeting systems work, they make money available and when the money runs out they disappear. However when you aggregate N2trn and let me say the government is not borrowing the money. PFAs will invest as typical investors and we are also looking at DFIs like (African Development Bank) AfDB investing along PFAs so it’s going to be commercial.

You seem very confident of this framework that has been put together?

Let me qualify the confidence. The confidence is because I participate in the committee on behalf of the PFAs and I am privy to the discussions that are going on. So the point I was trying to make is that the politics of it. Politicians have to put the word out there. Maybe it wasn’t properly communicated or properly understood but I think it is important to put the word out there because in the market once you put the word out there the animal spirit in people will just get to work, investors begin to gear up and things begin to happen.

I think the country will be better off for it if it is structured in a commercial way and I think this would even be the beginning of a national infrastructure fund that we have been asking for. What we have been asking the government is to issue infrastructure bonds or create a national infrastructure fund that is run by private sector operators – people that know how to run funds. So the NSIA is going to set up a dedicated team to run this fund and that’s the plan and pension funds are going to be investors just as we invest in private equity funds we are going to sit on the advisory board to make sure that things are done properly and the asset would be run under a PPP

framework.

Now, there are some elements that are still missing, the PPP framework has to be finalised, the national tolling policy too because the roads would have to be tolled and commercialised. So some of the projects are already on-going, Lagos-Ibadan is ongoing; Second Niger Bridge is ongoing. If we complete them and put a toll on them, privatize them then the money would be recycled back into the fund so that’s the idea. So there’s something we already started the Presidential Infrastructure Development Fund (PIDF) which is run by the NSIA as four projects.

It’s going to be built on the back of the PIDF so it’s like a PIDF tool or like Nigerian National Infrastructure and Nigerian Infrastructure Fund. But I think it’s important to just put the word out there that government is not taking the money.

It is a government-led initiative which would be run by the private sector. It is also important to make the point that the pension scheme was a governmentled initiative, the government thought about it and put together a regulatory commission to license private sector.

But you know that for those who are now worried, the risk burden is on the contributor compared to a place like South Africa where it is all put together by the government and that is why South Africa has been able to use its pension fund for infrastructure projects Good point. The other point is that the government will back up or guarantee the return on the fixed income side of these instruments which is like we are buying government bonds. So there is no difference.

The real conversation is what is the interest rate that PFAs are going to get, is it commercial and

is it backed up by the government or government agencies?

I don’t think people should fear, it’s still at an early stage, we are back to the drawing board and there are experts in the room trust me.

What are your thoughts on this in terms of how we have proceeded with the micro pension and what you are hoping it can do in terms of increasing penetration within the industry?

Micro pension is off to a very slow start, and there are two issues. One is a lot of the people that are being targeted simply cannot afford to save. You need to earn enough money to save so I would say the informal sector rather than micro pension because micro pension globally hasn’t gained traction.

The problem with the informal sector is that a lot of them are below the tax bracket so a lot of them think that once I start paying pension the government knows how much I make and so I will start paying tax so the tax reform still needs to be done because one of the benefits of the pension fund is that it is tax-deductible then I am not widely optimistic about this pension fund growing on the back of micro pension, I am more optimistic about it growing on the back of increased compliance, on the back of PFAs giving something back to the contributors by way of allowing them to access money to acquire houses, get mortgages and then people doing voluntary compliance but more importantly increasing the economic space. If we do this critical national infrastructure it is going to increase the economic space significantly there would job created and people then would open pension accounts then the pension funds will increase.

N10trn is a very small amount of money compared to the population of Nigeria, however, we

have made significant strides. If you think that total government budget is N10trn, the pension we are sitting on is N10trn, at the current rate it is going to double in the next five years at 15 percent growth rate based on what it is today, based on interest rate, investment income and contributions coming in, now if we have more people coming into the scheme then you can see.

The other area we need to talk about and very important is the state government. Unfortunately, inspite of all the noise and cries the governors are talking about, not up to 7 percent of the state government are in compliance, so when they talk about using the pension fund I often say to them “but you are not even part of the pension fund, how can you participate in what you are not part of?”

So, if we through the Federal Executive Council compel or get the governors to join the pension scheme, enrol their workers in pension scheme, the number would grow from 9 million to about 12 million and we can see faster growth because these people earn salaries on a monthly basis, they desire to have a pension and they need to have a pension because they are working for a sub-national government.

I am just wondering why they aren’t being compelled to do so. Obviously it’s an urgent matter, we know what the benefits are and they do too.

We have gone around this thing for a while. I think the long and short of it is that some of the states are not financially viable enough to participate in the pension scheme.

Doesn’t the pension reform act compel them to participate?

Well, the first law was not a national law but the second law does compel them to join. But you know the way the country is structured, the states are federating units, you cannot compel them, you will encourage them to join and you know even some of the states that have joined cannot meet the obligation because the pension reform act requires that every month deductions are made and sent to the PFAs but more importantly, when people retire you pay them, the biggest problem is the backlog of accrued rights. Perhaps what we can do is work with the DMO and the state government to see if we can issue a bond on the back of this.

The states have a lot of arrears and the rule is that once you start, you commence funding from the arrears, you start making contributions towards deferring the arrears at five percent of the salary wage. Once the state looks at it five percent going to the central bank escrow account every month and making deductions they look at their numbers and it doesn’t add up and they stay away from that.

I think it is the problem with the state. How do we solve that?

I cannot say. It requires a creative solution. Maybe again like we are doing with infrastructure, maybe we put together a team of experts and see how we can go about it because if we don’t do it we are going to have a situation where only people that work with the FG and organised private sector will have pension while the state government worker is going to be a mess in the next ten years.

Speaking of arrears at the federal level, PENCOM said it is in talks with the DMO for a bond to cover some N400bn in arrears for FG pension. I am just wondering, it is new and I’m not sure it is something we have done before. What do you think about this working out?

It can work out. I think from an enlightened self-interest we are PFAs and we like that. I said enlightened self-interest because who are the people that would buy the bond?

The PFAs would and so it becomes like self-financing. What it does is that it puts money in the hand of government to clear these arrears and then make the scheme work and government can spread the payment over time. I think it can work if there is the political will to do it. It is like every other bond, it is a bond dedicated to clearing pension arrears and I dare say that the way it should work is that when you issue the bond, the proceed deposited in the escrow account that is managed by PENCOM and then all the backlogs are paid.

Remember that again we are financing ourselves because all the backlogs come into the pension fund so we get N400bn into the pension fund and then we begin to pay the retirees, maybe they would take 25 percent of that and the rest is spread.

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Friday 28 February 2020

BUSINESS DAY

HEALTH BUSINESS&LIFE Experts say strategic planning can avert negative outlook for Nigeria’s pharmaceutical industry ANTHONIA OBOKOH

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orecasts for Nigeria’s pharmaceutical industry as regards drug manufacturing is negative for 2020 and beyond but experts say strategic planning by companies can ease this.

Given the complexity, uncertainty and pace of change in drug manufacturing Nigeria’s Association of Industrial Pharmacists of Nigeria (NAIP) at its first bi-monthly meeting for the year, themed ‘2020 Economic Outlook’ provided insight into emerging trends that may have impact the practice of pharmacy and the health of patients.

These experts have forecasted a negative and tough year for the Pharma industry because of the COVID-19 outbreak.

They have advised manufacturers saying the process of strategic planning should not be on going as a continuous process with regular review will allow key players in the industry to tactically adjust in the course of their planning this year as the economy shifts and new unpredictable and new trends emerge.

Sam Ohuabunwa, president of Pharmaceutical Society of Nigeria (PSN) said the central message is that 2020 is going to be a tough year economically for several reasons and the economy is calling for greater introspection.

Ohuabunwa emphasised outlined what Nigeria can do if the external environment is getting difficult doing business with china starts coming at elevated costs.

“We need to be more internally focused and prepare for a difficult year and optimize the opportunities that we have. The pharmaceutical industry should seek how to

increase its relevance and be less dependent, that is the warning,” he said.

According to Ohuabunwa, Nigeria should be less dependent on imported inputs, let the industry spend more time to develop local inputs to production and see how we can even boost local manufacturing of medicine.

“This country can focus a little bit more, working with the government to help us provide like a petrochemical input which are supposed to be in the forefront which the government have abandoned, if the government can

How non-invasive technologies can improve treatment of fibroid ANTHONIA OBOKOH

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he estimated prevalence rate of fibroid in Nigeria is about 80 percent, however, improvements in quality of life, and significant advancements in fibroid treatment, suggest that High Intensity Focus Ultrasound (HIFU) offer safer alternatives to surgery, experts say.

HIFU is a non-invasive treatment for fibroids that is less painful, preserves the uterus and allows women to get back to their lives sooner than surgical options.

“Women have options for treating fibroids; we are here to look at the latest treatment as about so about 80 percent of the Nigerian women may likely develop fibroid,” said Abayomi Ajayi, managing director Nordica Fertility Centre at the Fibroid Conference which took place recently in Lagos.

According to Ajayi, This is always a topical issue whenever you talk about fibroid and the cause effects are different. Quite a number of people do not develop symptoms, but those who have symptoms do experience excessive prolong bleeding, irregular bleeding to infertility.

“The treatment of fibroid has transcended from very invasive, to minimal invasive, invasive in that you

have to do surgery, cut the woman open, she stays in the hospital for like one week, which was later reduced to three to four days and then she has to recover for about six weeks before she can go back to work.

From there, we went to minimally invasive, which is laparoscopic surgery. But now, there is a non-invasive a method called the HighIntensity Focus Ultrasound (HIFU), which is the use of ultrasound to treat fibroid,” he explained.

Explaining further Ajayi said presently the technology is not available in Nigeria, but we are trying to bring it into the country and we want people to be aware at the moment that there is a more-safer way to remove fibroid, so patients do not need to be afraid.

“I believe Nigerians would embrace it, If we can embrace IVF, then we can embrace HIFU also. However, the limitations I see with HIFU technology, like the other minimally invasive procedures are the expertise and the cost,” he said.

Meanwhile, uterine fibroids are noncancerous tumors that develop in or on the muscular walls of the uterus and are among the most common reproductive tract tumors in women.

In addition to an individwww.businessday.ng

ual’s genetic predisposition, estrogens are well known to play an important role in the regulation of fibroid growth.

Uterine fibroids are benign tumors, they can cause debilitating symptoms such as abnormal uterine bleeding, heavy or painful periods, pregnancy loss, painful intercourse and, in some cases, infertility.

These symptoms can also lead to loss of productivity at work, limitations in normal activities of daily living, and social embarrassment.

Also speaking at the conference Raymond Setzen, Gynaecologist and clinical director of HIFU unit at Chris Hani Baragwanath Academic Hospital, Soweto, South Africa explained that Fibroid depend on estrogens to grow and women keep producing estrogens until they get to menopause, at age 50 or 51. So even if the fibroid are not causing any harm in the body, most of them will eventually grow due to the estrogens, so it is better to treat them when they are small than when they have become big.

Explaining how the use High Density ultrasound works Setzen said that it a concave machine that produces ultrasound waves noting that because it is concave, it will generate a lot of energy (heat) into the fibroid.

revive this, we should be focusing on developing capacity,” he said.

Reflecting on the 2020 Economic outlook Fidelis Okwuagwu, managing partner of Chapters & Heights Investment Partners Limited advised in every business concern, including the pharmaceutical investment, it is important that beyond economic statistics and projection, individual businesses especially in 2020 should begin to think of Cautious re-investments or expansions along core lines due to tight fiscal spending this year, Diversification along defensive lines, More emphasis on cost management and Trim- sized business and tax management strategies.

“The budget is a deficit one for 2020, which is supposed to promise more spending in excess of inflow, but the lack of production capacities may cause a total underperformance or failure of the budget.”

“The Gross Domestic Product as at the 3rd quarter of 2019 was N51.8trillion across all sector, the pharmaceutical industry is capture in the GDP charts under the manufacturing sector, as at September 30, has contributed a paltry N4.7 trillion which trans-

lates to 9 percent,” he said.

Despite the challenges facing manufacturers in the Nigeria pharmaceutical industries and the difficult environment they operate, NAIP is still optimistic about the plan for the the industrial park in line with Nigeria’s pharmaceutical manufacturing development strategy, as a disruptive innovation capable of solving health problems.

Ignatius Anukwu, NAIP’s National Chairman, said that the outlook is now a tradition and the association focus is on how to establish a pharmaceutical hub to improve production and investment in Nigeria’s pharma industry.

“The idea is that there will be shared facilities and they are more assured with the supply of power, while we improve on the capacity of what we produce in Nigeria.

We have been on this for a year,” he said.

According to Anukwu, in advocacy with Waltersmith Petroman Oil Limited, they are inviting NAIP to collaborate with them in this project.” Our vision a line and the next thing is to sign a memorandum. As technical experts, it will be a synergy.”

‘Leveraging Konikore technology to bridge doctor-patient ratio’ SEYI JOHN SALAU

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ith Nig e r i a’s physicianto-patient ratio currently placed at four doctors per 10,000 patients, far below the global average of 15 doctors per 10,000 patients, organisers of the ongoing Africa Rising Series has stated that the introduction of ‘Konikore’ technology into Nigeria will help bridge the current doctor-patient ratio.

This it believes will disrupt the country’s healthcare and diagnostics space for better healthcare delivery.

Konikore technology is a device that detects Volatile Organic Compounds (VOCs) present in the air by a Silicon Valley-based startup, called Koniku. The device is a chip that can smell, detects chemicals at very minute concentrations that has found applications across multiple industries like healthcare and diagnostics, aviation and airport security, agriculture, military and FMCGs manufacturing with the potential to revolutionise many more.

Oshiorenoya (Osh) Agabi, neuroscientist and CEO Koniku, said by breathing on the Konikore, the device will be able to detect

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diseases in human body, thereby revolutionising healthcare to bridge doctor-patients ratio and help low-income communities that lack access to doctors.

“Over 20per cent of people around the world have never seen a doctor, because of the poor doctor to patient ratio. Just in the same way mobile phones disrupted the telecoms space, we are hoping to do the same in healthcare by democratizing access to doctors,” said Agabi stating that the device is to bridge the current market gap.

According to him, Konikore will work as a first-stage screening device which will give a high degree of certainty in diagnosis. “We will work handin-hand with the healthcare professionals and existing systems, to make them more efficient at carrying out their tasks. The goal is not to replace the current diagnostics systems, but to complement them,” said Agabi.

During the week-long event which started on Monday, Agabi met with potential investors, financial experts, members of the academic community, government, and other stakeholders. He equally delivered presentations to the Lagos Medical Society as well as the School of Neurosciences at the Col@Businessdayng

lege of Medicine, Idi-Araba.

While at the Africa Rising Series cocktail, Agabi spoke with fellow innovators and entrepreneurs, sharing his knowledge on moving from being a local player to a global achiever. Similarly, Agabi held a masterclass section for MedTech entrepreneurs and other medical practitioners.

Akintoye Akindele, chairman, Platform Capital said Agabi embodies the spirit of Platform Capital’s Africa Rising Series, as a home grown genius that is now a global player in technology and innovation. According to him, the series aims to bridge the gap between developed nations and emerging markets within Africa, unveiling the possibilities for global trade and crosscultural exchanges of ideas and opportunities.

“For us at Platform Capital, Osh Agabi demonstrates Africa’s potential.

It is our pride as a nation to have someone who has 21 patents to his name is celebrated internationally and has created technology that can solve problems in Food, Security, and Healthcare. It is important to bring this technology home, so we can begin to solve the Continent’s problems,” said Akindele.

Friday 28 February 2020

BUSINESS DAY

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HEALTH BUSINESS&LIFE How support to Nigeria saved 581,000 Pap smear: Your staying alive might depend on it lives from TB over last five years - USAID P What is Pap smear? ap smear is an important screening tool used by doctors to detect cervical cancer or abnormal cells in the cervix. This is done by sampling cells from the cervix which is the small and narrow portion that connects the uterus to the vagina.

INNOCENT ODOH, Abuja

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ver the last five years, the United States Government through its Agency for International Development (USAID) supported Nigerian health officials to save the lives of more than 581,000 Nigerians with tuberculosis, according to participants at a closeout ceremony for the USAID funded Challenge TB activity.

The USAID said in a statement on Wednesday that since 2014, Challenge TB implemented health facility and communitybased TB case finding interventions, including health systems strengthening, in 14 Nigerian states.

Stephen M. Haykin, USAID Mission Director said at the closing ceremony on Wednesday that “at today’s dissemination, key TB stakeholders came together to share the results from this $40 million activity.

“In collaboration with the Government of Nigeria and other TB partners, Challenge TB worked to raise awareness, reduce stigma and improve health-seeking behaviours among vulnerable Nigerians,” he added.

In collaboration with Nigeria’s National Tuberculosis and Leprosy Control Program, Challenge TB provided technical the support that helped close gaps in diagnosis and treatment of tuberculosis, contributing to improving access to TB services, preventing disease progression and strengthening service delivery platforms.

With the help of Challenge TB and in alignment with the National TB Control Program’s END TB Strategic Plan, Nigeria increased TB case notification by two-fold over

Cervical cancer is the type of cancer that develops at the cervix.

The cervix has two parts, each part having different types of cells Ectocervix: is the outer portion of the cervix and it also protrudes into the vagina.

Endocervix: is the innermost part of the cervix. Most cervical cancers and precancerous cells from where these two cell types meet called squamocolumnar junction (SCJ) The SCJ contains column-like mucus-secreting cells from the endocervix and squamous cells that resemble fish scales from the ectocervix.

the last five years and improved TB treatment coverage.

The USAID mentioned the case of Kasimu Yahaya, 24, of Keffi, a student of Nasarawa State University in 2017, who fell ill with weakness, headache, and cough. It added that when medication did not improve his condition, he went to a USAIDsupported primary Health Care Center where he tested positive for TB. The USAID said that after six months of free treatment, Yahaya is fully cured, and with the financial help of Challenge TB has completed his education and is now a self-appointed advocate for TB awareness across Nasarawa state.

“I didn’t know all this time that the help I received was from the American people,” Yahya said. “I

will be grateful always. What’s more important than help to improve your health and save your life? Without health you can’t achieve anything else, Yahaya added.

Focus states for TB Challenge included Akwa Ibom, Bauchi, Benue, Cross Rivers, Enugu, Kano, Katsina, Lagos, Nasarawa, Niger, Ondo, Ogun, Osun, and Rivers.

USAID has collaborated with the National TB Control Program since 2003, having invested more than $207 million toward TB control. This support has resulted in the establishment of more than 3,000 new TB clinics, strengthening of diagnostic capability, training for health workers, and the expansion of control services into the private sector.

WARIF launches vision 2020 campaign to impact 1m lives ANTHONIA OBOKOH

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he prevalence of GenderBased Violence in Nigeria is becoming epidemic affecting an average of 1 in 4 girls before the age of 18. The impact of which is seen in almost every community across the country.

In this bid, the Women at Risk International Foundation (WARIF) has now taken on the laudable task of increasing awareness of Gender-Based Violence across the country with the launch of #WARIFVision2020; with the aim of impacting one million lives by the end of 2020.

The organisation is already achieving this through its various initiatives and plans to engage other non- governmental organization (NGOs) and CSOs

HBL TEAM

across Nigeria. The organization also calls on well-meaning Nigerians to support this goal through volunteering and donations. Activities have commenced under this project and WARIF believes that through a collective effort we can all live in a society free from rape and sexual violence.

The Women at Risk International Foundation (WARIF) was launched over three years ago in response to the high incidence of rape and sexual violence in our communities. Since its inception, the organisation is successfully tackling these issues whilst providing health care to survivors and raising awareness through its preventive initiatives in education and community service. It has now become one of the foremost anti-sexual and

Gender-Based violence organizations in Nigeria.

Commenting on this, the founder, Kemi Dasilva Ibru stated that “the magnitude of the issues surrounding GBV is one that the organization tracks closely and this initiative will serve as an ideal opportunity to raise awareness to many individuals still unaware of the menace of GBV that exists in their community.”

According to Dasilva Ibru, partnerships have impacted on many individuals such as that with Slum to School and Freedom Foundation are examples of collaborations that will assist WARIF in achieving this goal.

The organisation will also partner with more like-minded organizations in Nigeria and beyond for the actualization of this goal.

What happens during Pap smear procedures?

During Pap smear procedures, samples of cervical cells are taken using a brush or spatula, these samples are sent to the lab for testing for abnormal cells. Human papilloma virus (HPV) test may also be carried out using cell samples obtained during Pap smear.

HPV is a sexually transmitted viral infection associated with genital warts and cervical cancer.

Why is Pap smear so important?

It helps to make early diagnosis of cervical cancer especially at the point in which cure or effective treatment is still possible. Cervical cancer used to be one of the most common causes of cancer deaths among women in the western world, but this has been reduced to the barest minimum.

Thanks to regular Pap smear and its early detection of pre-cancer stages.

In Nigeria however, cervical cancer still remains the 2nd most frequent cancer and one of the most common causes of cancer deaths among our women.

Who needs Pap smear?

Every sexually active woman from age 21 to 65. However, HPV vaccines are recommended to be given as early as age 11 and 12. These offer protection against certain types of HPV. How often should Pap smear be done? According to the United States Preventive Services Task Force (USPSTF), it is recommended that Women aged 21–29 years should have a Pap test every 3 years.

Women aged 30–65 years should have a Pap test every 3 years, or an HPV test every 5 years, or a Pap and HPV co-test every 5 years. After the age of 65 years, most women will not need a Pap smear. Individual risk factors vary so doctor may advise more frequent testing especially if a person has certain risk factors.

What is the next step after an abnormal Pap smear test?

A positive Pap smear test is not the same thing as cervical cancer. It means that some abnormal cells are found in the cervix or vagina. The next step is COLPOSCOPY which is a minor procedure that is done using a microscope to visualize the cervix especially around the SCJ. During this procedure, samples are taken from any abnormal area for biopsy and confirmation of cancer.

What if Pap smear tests lead to a diagnosis of cervical cancer?

The next thing is to seek treatment immediately. The oncology team will request for necessary investigations so as to stage the disease and plan treatment accordingly. Regular screening; the key to early detection of cancer and achieving a more favorable outcome.

The importance of Pap smear for regular cervical cancer screening cannot be overemphasized. Early cancer detection is the key to achieving a cure or obtaining a good prognosis.

Dr Andero ET Radiation Oncology Unit Eko Hospital Corps.

Unilorin ready to tackle Lassa fever – Odunola SIKIRAT SHEHU, Ilorin

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s the nation battles the resurgence of Lassa fever, the University of Ilorin management says the institution is taking stringent steps to ensure that the dreaded disease does not spread to the University campus and community at large.

Abdulrasheed Adekanye Odunola, a medical doctor and director, Medical Services, University of Ilorin, who stated this on Tuesday while speaking with journalists disclosed that though, the dreaded disease has not been reported in any part of Kwara State, the University Health Service, as a responsive and responsible outfit, committed to the well-being of members of the University community.

Adding that the institution’s Health Unit is fully prepared and has been doing everything towards ensuring that the disease is kept away from the shores of the nation’s most sought-after University.

The director described the disease as “an active viral hemor-

ANTHONIA OBOKOH / Reporters. Email: obokoh.anthonia@businessdayonline.com

rhagic fever”, which incubation lasts between two and 21 days and is indigenous to Nigeria.

He says that it was first detected in 1969 at a place called Lassa along the border of the presentday Adamawa and Borno States.

Odunola, has while explaining that the viral infection has rat as its natural host, appealed to all to prevent any form of direct or indirect contact between them and either a living or dead rat and its waste products including saliva and feces to avoid contacting the dreaded disease.

He also advised everyone to cultivate the habit of washing their hands thoroughly with soap and disinfectants and in running water intermittently and most especially after using the toilet and before consuming any meal which must have been well-cooked to keep the disease far away from them.

Odunola, counseled the health workers generally to cultivate the use of gloves while on duty and frequent washing of their hands with hand sanitizer or soap, and general the public to visit the nearest hospital if they notice any of the signs and symptoms of Lassa fever.

I David Ogar, Graphics

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Friday 28 February 2020

BUSINESS DAY

LEADINGWOMAN

Agatha Eric-Udorie The story of the Lady Carpenter who thrived above defeat to attain her feat

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gatha Eric-Udorie is a professional interior designer, who exudes a rare mix of deep passion and intuitive knowledge.

In what many close associates describe as a fascinating twist in fate, the young professionally trained Nurse found herself being tutored in the workshop of a carpenter, which eventually led to the birth of the success story called Agatha’s Interior Design Ltd, being told today.

As a young lady in a majorly masculine profession, Eric-Udorie grew in knowledge and the rudiments of carpentry, and so also grew her intense desire for beautifying interior spaces. She combined this passion with her already broad exposure to luxury and detailed finishing, which straightened her path into the very enterprising entrepreneur of repute she has become. Her generous experience encompasses all facets of the industry and some aspects of civil engineering and finishing construction.

Her working career started at Finishing Marble, where she was Head Sales for some years before she left to start her first Company Boli-A Enterprises. Boli-A Enterprises at the time, was engaged in the production of furniture and the company was a manufacturer for several prominent and leading brands including Leather World during the first renaissance era of interior design in Nigeria. Leather World offered her a rare opportunity to showcase and hone her talents offering a dedicated corner in her gallery. Bimbo Alashe, the CEO of Leather World was one of the pillars in the industry on whose experience Agatha thrived, and has remained till date, a career mentor and confidant.

In 1996, after adding a lot to her knowledge, exposure and entrepreneurial experience, Agatha Eric-Udorie went ahead to start off Agatha’s Interior Design Limited with the support of her husband, Arch. Eric Uche Udorie.

Agatha is undergoing a course in the UK to broaden her knowledge on her field. In 2013, she was nominated to the International Federation of Interior Designers & Architects as a Resource Council Member.

By her inspirational leadership, Udorie has led the Agatha’s Interior Design Ltd team to win several industry awards both locally and internationally, which includes; The IDEA Award (Interior Design Excellence Award) for best showroom 2013 and 2014. In 2015, Agatha’s Interior won the Arch of Europe – International Quality Award, Gold Category in Frankfurt, Germany. The following year, Agatha’s Interior won a similar award but in the Platinum category, winning the International Award for Excellence and Business Prestige, in New York, United States of America. Finally, in 2017, Agatha’s Interior Design Ltd won the best Employer of the Year Award 2016/2017 by MATKO Ventures, a notable recruitment firm.

Agatha till date, has been and remains in charge of affairs at the company since inception, being fully responsible for providing the direction, inspiration, motivation and guidance through the company’s several growth stages and phases evidently witnessed over the past years. She is still fondly called the “Lady Carpenter.”

KEMI AJUMOBI

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ransitioning from nursing to carpentry?

A lot of people don’t know that I was born in Sierra Leone, my parents are both Nigerians and we grew up in Sierra Leone. During the process after the death of my father, I used to help my mum in the market, she was a petty trader, and then she became a farmer. When it was time for me to go to the University, I couldn’t do Medicine so I was chosen to do Nursing. Back then, we needed to listen to our parents and I didn’t have control over that, so my Aunty said, “Just go into Nursing”, and so I took time out, went into Nursing and then came to Nigeria.

When I arrived Nigeria, it was a very trying time for us. I met a lady called Philomena Mackenzie, from a Scottish background. She had a workshop in Apapa. I lived with her and she began to teach me how to make curtains. We started with curtain designs, and then she had a carpentry shop but after sometime, she closed it down and went into something else.

From her, I learnt how to use my time wisely, I learnt how to make little pieces of furniture prototypes, and she began to teach us about templates. At that time, I was still in Nursing school, so as soon as I finished, I didn’t even go back to collect the certificate, I went straight into the workshop, got myself involved and she started teaching me.

It was at that point in time that I took interest in this. So, I give my credit first to God for making our paths cross and secondly, I am grateful to her. She taught me well and to have learnt over the years from her was an amazing experience. That’s how my career started.

Who would you define as a professional interior decorator?

A professional interior decorator is someone who understands what they are dealing with; it is beyond owning a Degree, Kelly Hoppen didn’t have one but she is the most celebrated interior designer today in the UK. So I follow her, I read all her stories, books, and watch her projects and I learn. So someone who has been through the system, especially when you understand what you’re dealing with, is someone to follow. I realise that if you don’t have that basic carpentry knowledge, you won’t understand furniture scaling.

25 years in the business, what is your story, how has it been?

What are you looking forward to?

It’s a journey, a real journey. I started first of all in Oko Oba, where you had all the wood markets and I didn’t have a workshop. So I would go there, engage a carpenter and because I know carpentry, I’ll tell them what to do, I’ll teach them, I’ll draw out a little bit for the things I want and do my fabric selection, and so we began to make very good furniture.

I’ve made furniture for many people www.businessday.ng

need you to know about this joint, you are learning about this joint.”

The men were very supportive, even the apprentice, they would want to go to the market for you; they would want to help you out. They were very supportive and happy for me so that allowed me to blossom.

Would you say the business is lucrative?

Lucrative would be ‘Yes’ and ‘No’ depending on what sector or area of the business. Are you in the luxury end? Are you in the middle class?

Or you are in the bottom? Or are you just a regular carpenter? I could grey the scales but it would be for me a ‘Yes’. The reason why I would say a ‘Yes’ and encourage young people to come in is because in Nigeria, there are a lot of people without homes, looking for jobs, wanting to earn a living, so even if I don’t get the job, the local carpenters are going to get the job and as such, be able to earn a living. So, I believe that at whatever level, you can see it as a lucrative business. When I take a project, a client has to pay 70 percent upfront depending on the company policy.

If you have a job for N10 million and you collect 70 percent, as a female entrepreneur, we’re very tactful and not wasteful, you have a lot of money to work with. This profession is one profession that you’re paid up front.

These are reasons why I can say it’s a lucrative business.

in this country. I’ve made beautiful furniture for top management of GTBank in the past, I’ve made furniture for people whose names I don’t want to mention.

Starting off, I produced very good fabric sofas, I brought out the best and so, I became very well known.

Through that journey, I began to educate myself. I had an Italian boss, at Finishing Marble where I worked. while there, I worked under my boss and till date, I can tell you all the names of the different types of marble, I can tell you about the processing. At that point in time with Finishing Marble, I learnt a lot and I also worked on a lot of projects. So, as I look at things today as it’s unfolding, I indeed have a lot to be grateful to God for.

That’s how it all began. That process of having a workshop in Gbagada, that process of talking to the people I bought my items from, telling them how I want my wood to be clean and dried. I am in tune with the entire process from beginning to the end.

So 25 years and counting, I have a lot to be grateful for…still do, ever will.

Relationship with Finishing Marble and how the name Agatha’s Interior Design was birthed Finishing Marble company is closed.

But it was one of the Italian companies that had the facility to install marble in people’s houses. It did quite a lot of big jobs in this country.

I learnt a lot there, fantastic teaching.

Italians are passionate about what they do and it’s the same passion I

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took over.

When I was working on a project, at that time, my company’s name was Boil-A limited, but when I got ministered to, (I started in Apapa Parish, and Pastor Tony Rapu was my Pastor) Pastor Tony said ‘why don’t you just call this company ‘Agatha’s Interior?’ I remember then, it was at Double Four Restaurant, I attended R.C.C.G, we came out for lunch. I was deputy head of ushering. He just said to me, I think you should rename the company and it was called Agatha’s Interior.

I was also given the opportunity to do Daddy G.O’s first house and after I finished, Daddy G.O said to me; “May God give you the desires of your heart. Open your hands.” I opened my hands and he said “God bless your hands.” And that was it.

That’s how it started.

How have you been able to carve a niche for yourself in this industry?

I just focus. That’s the word. You just need to know what you want in life and continue in that sphere. You don’t need to be distracted, just pray.

The Bible says He blesses the works of our hands. So despite being involved in carpentry, which is seen as a male dominated sphere, the men love me because they usually see me as a tomboy and they love the fact that I am a female carpenter. So I would say back then and even now, they have been very encouraging. The men wanted to teach me. I remember I once had a Ghanaian carpenter, Peter, he was always coming to say “Madam, I @Businessdayng

What importance does mentorship hold for you and how has it helped you in your business?

You’ve got to give back to the society that made you. There is no need holding back. You know, they say in the graves, you have the best heads. So, you’ve got to mentor other people.

For me, if someone didn’t mentor me, if someone didn’t teach me, I won’t be here. Information and knowledge is not something you should hold back, you should give it to everybody that comes, that appreciates it. That’s what I do. If you come to me and you want to be mentored, I take you up and say to you ‘come in once a week in the showroom, walk around, enjoy your stay and begin to fall in love with the things you see.’ So, I give back to the society, to primary schools, I tell the story from grass to grace, I tell them every day that you can do better than I have done, just focus. Mentorship is something that I encourage in every profession. I encourage people to take out time and mentor. We’re in an emerging economy, if you don’t teach, how will people learn?

I bring in Italians to teach about painting, application and more. I give back to the society that has made all of these that I have. It’s not that I have a lot of money; it’s not that I’m rich, but I’m satisfied. You’ve got to give back and that’s the same the Holy Spirit keeps ministering to us. If the Holy Spirit doesn’t minister to us, we would not receive from the Father.

So every time we get ministered to, we’ve got to minister back to others, we are to go out and make disciples in the market place.

Read the concluding inspiring story about AGATHA ERIC-UDORIE on our website www.businessday. ng as she graces our Women’s Hub magazine cover for this week. You are just a click away!

Friday 28 February 2020

BUSINESS DAY

23

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

In pursuit of backward integration, Olam dwarfs national average in tomato production farm production process on the project. He said in an interview that the target is to produce enough tomatoes to meet the processing and market demands. So far, the pilot farms have been evaluating 18 varieties, and Sangodele explained preliminary results are pointing to three varieties based on their sizes, the crimson colour and less water content within it.

“We are optimistic that we shall be able to find a very good variety for the commercialization in the country,” Sangodele said. While the team is currently evaluating various varieties that can be selected for this purpose, once the right variety has been selected, it will be deployed for the large-scale commercial farming as well as the outgrower scheme with smallholder farmers.

“We have identified a number of outgrower Farmers that are being brought to the school Farm to learn and adopt this on their own farm,” said Sangodele, expressing optimism that by the next planting season, the same high yields will be replicated on the fields of smallholders farmers.

Addressing quality assurance,

CALEB OJEWALE Twiiter: @calebtinolu

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hen the government decided to push for full implementation of its backward integration policy, this meant manufacturers using agricultural raw materials like tomato had to develop local supply chains in order to stay competitive.

Over the years, tomato production in Nigeria has been challenging, with farmers recording huge losses mostly on account of post harvest losses that have been put at 45 percent. At the same time, the country has a high deficit that was for many years filled through importation of up to $360million annually.

The fragility and short shelf span of tomatoes facilitate wastage across many tomato producing regions. Inadequate logistics and storage facilities have further increased tomato wastage, as noted in a 2018 report by PwC on the tomato industry in Nigeria.

Caraway Foods International Nigeria Limited, a subsidiary of Olam Nigeria, is now taking what can be described as a bold step to contribute towards local sufficiency, and deepening backward integration. To give some context, the company imported tomato pastes into Nigeria between 2006 and 2010, promoting the De Rica and Tasty Tom brands. Initially, tomato pastes were imported as finished products and distributed but after testing the market and seeing it do well, the company decided to set up a factory in 2010.

In 2011, it commenced local production of its tomato paste brands in Nigeria, although con-

centrates were still imported.

With the current plan now being evolved, however, the company is aiming for complete backward integration where the tomatoes will be sourced locally, crushed, turned into concentrates, and finally made into tomato paste. Up until now, both brands were produced and packaged locally at a processing facility located in Lagos. Now, the

A group of women harvest tomatoes on a farm in Jigawa

company wants to expand operations to the North, where it will have some of the processing done closer to the source of raw materials. This will invariably contribute towards reducing post harvest losses, enabling more farmers to find market for their produce, and bridging the country’s overall deficit to some extent.

“This is complete end-to-end production and backward integration,” said Prashant Thakur, the regulatory head for Caraway Africa Nigeria limited, who is also heading the tomato backward integration

project. He explained that existing brands; Tasty Tom and De Rica, will continue to be produced except they will now be 100 percent local content. In addition to this, more innovative products such as mixtures giving ginger, garlic, onion, peppers etc are likely to be developed.

To achieve the backward integration plan, the company started a pilot project in September 2019 www.businessday.ng

on 20 hectares of farmland across three locations in Kano and Jigawa states, which will be expanded to 500 hectares later this year. Following this, will be commencement of a larger out growers programme to engage 1000 farmers to be trained and provided with seeds that will deliver the same kind of output the pilot farms are recording.

“It is a very proud moment for us to say that our products are 100 percent locally made and also because it provides employment,” said Thakur who has been with the company for 14 years.

“It is definitely a positive step in terms of developing production in Nigeria, and also because we will not be depending on imports anymore”.

By September (this year), Thakur said a processing facility would be in place so that by the time crops are ready from the farms in February 2021, they will move straight to the processing unit. By this time, the tomato pastes produced by the company would be 100 percent local content.

At an estimated 30 tons per hectare yield from harvesting done so far, the output from the pilot farms dwarf the four to seven metric tonnes realised by farmers in Nigeria. Agribusiness Insight visited some farm locations in Kano and Jigawa states last week, where the company has been running the pilot farms for its local production project. Knowledge from how the high yields have been achieved could enable smallholder farmers improve their yields exponentially, enabling them to focus more on volumes than to put high prices on the little they previously produced.

There is in fact, optimism that yields could even edge up to 40 tonnes per hectare, and with more improvement over time. These high yields mean the company can produce raw materials at lower price points

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that would make processing viable.

“When a farmer produces (less than) 10 metric tonnes per hectare, it does not make economic sense either for the farmer or the processors who are willing to buy,” said Reji George, Olam’s vice president in charge of farming programs in Nigeria. This he said is because when a farmer produces less quantity, prices will be higher and processors will not be able to buy at that price and make their processing viable also.

Even though the pilot projects are currently running in Kano and Jigawa, there appears to be a preference to settle for Jigawa when the 500 hectare commercial farming and processing facility are launched. This derives from the existence of a processing plant in Kano already (owned by the Dangote Group) albeit not operational.

According to George, Jigawa offers higher table waters, more land expanse for utilisation in a stretch, but final selection will done after an evaluation of yields from the project later this year.

Emmanuel Sangodele, a plant scientist specialising in plant breeding and genetics who has practised for 25 years manages the @Businessdayng

Thakur said in his 10 years of handling De Rica and Tasty Tom, that there have been no complaints on safety or quality, and if any, were limited to handling issues that were easily sorted out. Both brands are already certified by the Standards Organisation of Nigeria (SON) and National Agency for Food and Drug Administration and Control (NAFDAC), including regular inspection visits to ensure the company abides by all required quality parameters.

This he says will continue even now that production will become 100 percent local. In the past, NAFDAC would visit the countries where raw materials came from, but will now be able to do this through visits to the local site and certify it.

“Be rest assured of these products definitely meeting quality parameters as prescribed by the laws of the country,” said Thakur, who is heading the backward integration project.

To achieve its plan for complete backward integration, Thakur said the company would need a lot of help from government, especially infrastructure wise. “While we are working on our side we also require help from government in getting land for production in appropriate areas,” he said.

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Friday 28 February 2020

BUSINESS DAY

Hotels

Rebranding, shift to secondary cities, mid-market top trends in Nigerian hospitality industry OBINNA EMELIKE

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rebrand their hotels to Marriott, but surprisingly Marriott dumped many of the hotels for not meeting its very high standards. In Nigeria, it was only Protea Kuramo Waters in Victoria Island and Protea Select in Alausa Ikeja that scaled the Marriott huddle for branding, out of over 12 hotels in it portfolio before the acquisition.

Following that, a new trend of independent branding and management set in. Many once branded hotel decided to run independently having gained experience from their former managers. The likes of Protea Oakwood became Oakwood Park Hotel, Protea Leadway in Maryland, Lagos rebranded as Leadway Hotel, Protea Westwood Ikoyi rebranded as Westwood Hotel, among others.

Though a few of the former Protea hotels in Nigeria tried to sign new deals with BON, a hotel management company formed by some executives of the defunct Protea Group after the brand was sold, the new manager was considered by many hoteliers as not good enough in terms of standard and branding, hence the hotels chose to be independently managed.

Also, the Golden Tulip brand had its share of brand dumping by Nigerian hotel owners. The 88-room Golden Tulip Enugu was rebranded Golden Royale Hotel when the owner couldn’t see the impact from branding the hotel, the brand also failed in Ibadan with the Owu Crown Hotel, which it branded and lost to Protea, which also left later.

As well, Swiss International left its Ajao Estate Lagos hotel, which is now branded as D’ Palms, while the Best Western brand almost disappeared www.businessday.ng

from the many properties it was branding three years after aggressive expansion in Nigeria. Most hoteliers argued that Golden Tulip brand had become common place, especially with its Essentials brand, same as Best Western that can put its logo on a 10room apartment then.

In January 2018, the rebranding trend took another turn when the 155-room Renaissance Hotel Ikeja, which opened in October 2016, rebranded to Radisson Blu, an unfortunate development for Marriott as the hotel was Marriott’s first push of its Renaissance brand into the sub-Saharan African market, which failed.

Sadly, the 358-room InterContinental Hotel Lagos, which opened in 2013, after long development that saw long period of inactivity left unceremoniously after four years of operation in January 2018, and in that same January, Le Meridien brand, from the stable of Starwood and now Marriott, left Ibom Hotel and Golf Resort.

Since then, the trend of branding and rebranding has become recurring in a larger scale. In 2019, Legacy Group, ceased from managing Wheatbaker Hotel Ikoyi, a development some industry stakeholders think would affect quality, but owners do not think so. A hotel edifice being developed by Sifax Group in Ikeja GRA, which is nearing completion, is rumoured to be branded Marriott. But it may not wear the Marriott logo as other brands are showing interest at managing it better.

The Renaissance-Radisson case may repeat itself, and the trend will continue as long as hotel owners seek cheaper managers and huge return on

investment.

Aside the recurring branding and rebranding, another interesting trend is the shift to secondary market or midmarket offerings by some international brands.

As government and business activities keep growing in secondary cities, hotel brands are looking at capturing the market. Radisson Hotel Group is leading the way with its Park Inn in Abeokuta among others in the pipeline across some secondary cities in the country. Marriott should ordinarily lead the push in secondary cities because of its long stay in Nigeria through Starwood, but the Four Point By Sheraton Ikot Ekpene, Akwa Ibom State, is yet to take off long after completion.

Aside Park Inn by Radisson in Abeokuta, Four Points by Sheraton Ikot Ekpene, Protea Hotel by Marriott, Owerri Select, Protea Hotel by Marriott

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Today, five-star is no longer trendy; guests are looking for value for money offerings not minding the brand that is offering it, while many are traveling on budget

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n the last 10 years, the Nigerian hospitality sector has been adjudged burgeoning, especially by promoters of the sector with eyes on attracting more foreign investors and reputable international brands who come with expertise to grow revenue and impact local skills.

The period also witnessed lots of activities, with a new hotel being opened almost every month in the cities of Lagos, Abuja and Port Harcourt, aside the many hotels in the pipeline, raising hope for the expected boost the additional hotels and rooms would give to the industry.

As well, that period saw the likes of Protea springing up everywhere across the country, Best Western putting its logo on any willing property, Golden Tulip wooing hoteliers like never before, African Sun taking on management roles, Sun International reintroducing casino as exciting offering, while Southern Sun (now Tsogo Sun), was the thorn in the flesh of most international brands for crashing hotel room rates in Lagos then.

Much later, Radisson Blu came into the scene with fierce aggression that forced the likes of Hilton and Sheraton brands to play catch-up, having stayed over 20 years without much expansion in the country with just five hotels (Transcorp Hilton Abuja, Sheraton Lagos, Sheraton Abuja, Le Meridien Ibom Hotel and Golf Resort, and Le Meridien Ogeyi Place Port Harcourt) until the aggressive scrambling for market share by the smaller brands.

Today, there are new trends in the industry, which are as a result of the developments in the hospitality landscape, change in guests’ tastes, economic headwinds, among others issues.

First, the acquisition of Protea Group by Marriott International in the first quarter of 2014 made hoteliers across Africa including Nigeria to rethink branding and franchise agreements. The acquisition offered Marriott International additional 10,148 rooms across 116 hotels in seven African countries formerly owned or managed by the South Africa-based Protea Hospitality Group.

The rethinking was because most former Protea Hotel owners thought Marriott International would easily

Benin City Select Emotan, Golden Tulip Jericho Ibadan, and Golden Tulip Warri Airport, many hoteliers have ongoing projects in cities such as Makurdi, Illorin, Awka, Keffi, Yanegoa, Uyo, Eket, Lafia among other secondary markets.

The development, according to Jemi Alade, a Lagosbased tourism and hospitality expert, is opening huge investment opportunity in midmarket brands and secondary cities to grow their economy.

At the opening of Protea Hotel by Marriott, Owerri Select, Volker Heiden, vice president, Protea Hotels

by Marriott, Marriott International, said: “The opening of Protea Hotel by Marriott, Owerri Select, illustrates our confidence in the potential of Nigeria and is in line with our commitment to grow in strategic secondary cities across the continent. The recent expansion of the city’s airport, will give the city better accessibility, which we are confident will further drive business travel.”

Another obvious trend is that many people are now traveling on budget because of the economic realities of the time. Speaking on the budget travel trend, Marvel Akagha, an economist, noted that as purchasing power keeps sliding, mid-market hotels and secondary cities would become attractive to people who are on budget.

International brands are also aware of the development and have responded by introducing mid-market brands such as Double Tree by Hilton, Essentials by Golden Tulip, Select by Marriot, Four Points

by Marriott, and Park Inn by Radisson, while original midmarket brands such as Best @Businessdayng

Western, Ibis, among others are expanding.

Following the budget travel trend, more business and corporate executives and even middle class are willing to stay in mid-market hotel brands against the fame for star rated and luxury hotels.

The reality now is that budget is key determinant of guests’ choice of hotel.

Aside following the trends, hoteliers, who are also part of the larger society, are driven by the realization that most people are not quick at forgetting the lessons and the impact of the economic meltdown, hence prefer to travel on budget, while many corporate organisations have now made budget travel part of their corporate policy.

But one interesting trend is that many Nigerians are beginning to patronise more indigenous hotel brands as poor standards, insecurity among other issues that guests usually complain about are gradually being addressed.

A good example is the Citi Hotel Group, which runs three hotels in Lekki, Ikeja and Abuja. The indigenous brand has improved on many fronts, leaving guests to testify to its quality offerings and also wooing foreigners.

Citi Height, its latest hotel in Ikeja, is giving the neighboring Sheraton Lagos a run for its money. There are so many of such indigenous brands with quality boutique and luxury offerings across the country today, giving guests competitive options.

Today, five-star is no longer trendy; guests are looking for value for money offerings not minding the brand that is offering it, while many are traveling on budget. However, there is emerging trend for international brands. Going by the InterContinental Hotel Group’s early and unceremoniously exit from the Nigerian hotel market, some international brands like Hyatt, and Wyndham may not be looking Nigeria’s way soon.

However, the Nigerian economy will in a long way determine the trends in the future. The more stable economy means more middleclass with disposable income, improved purchasing power, more fund for hotel investment, more government and private sector patronage of hotels.

But if the above is not the case, a negative trend will set in; dwindling occupancy rate, poor revenue, growing number of abandoned hotel projects and unemployment.

Friday 28 February 2020

Harvard Business Review

BUSINESS DAY

25

MANAGEMENTDIGEST

Build a network — Even when you don’t think you need one DORIE CLARK

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CONNECTING here are plenty of reasons professionals don’t network enough. We’re all busy. Some of us have stressful family obligations. Others are introverts who don’t take to the process naturally.

Of course, you can find ways to connect with others and learn new techniques that will make you more comfortable — if there’s sufficient will to change.

In my work coaching highlevel executives, I’ve seen that many who have the hardest time building a network are those who view themselves as “lone wolves.” Intellectually, they recognize the benefits of networking. But they’ve achieved their current status on the strength of solo (or near-solo) efforts, and adjusting their mindset and behavior can be challenging.

If you’ve avoided networking because of lone-wolf tendencies, here are four strategies you can use to turn it into something you actually enjoy doing: — UNDERSTAND WHAT NETWORKING IS — AND ISN’T: Many of my lone-wolf clients pride themselves on standing outside social conventions.

They regard the networking pro-

cess as a slimy, classless transaction. Many professionals find that kind of networking dirty, and rightly so, but that’s only one, highly caricatured variety of networking. When we reframe the activity as a way of making interesting friends for the long term, it becomes far more appealing.

— IDENTIFY PEOPLE YOU RESPECT: Many lone wolves have concerns about the people involved in networking. They may have attended events filled

with low-level opportunists eager to swap business cards.

That’s why I have my lone-wolf clients create a “wish list” of people they’d like to meet. Clarifying who these people are — an author, a senior colleague, a thought leader — helps illuminate possible approaches to contacting them. And it helps demonstrate that there’s a reason to be excited about networking.

— RECOGNIZE HOW A LACK OF NETWORKING MAY

BE HOLDING YOU BACK: Lone wolves are often uncertain how networking could help them, since they’ve been successful heretofore without exerting any effort in that area. But at a certain point, this lack of attention begins to hinder their professional progress. I advise my clients to take a short self-assessment to gauge the strength of their network, and see where they may need to focus their efforts. For instance, one of my clients had built impressive credentials,

but wasn’t able to become a member of an elite professional group because she needed peer recommendations to join — and she didn’t know anyone in the group. We developed a thoughtful strategy to build relationships over time, and she eventually gained entry.

— IDENTIFY YOUR VEHICLE FOR NETWORKING: If you live in a large city, you can host networking dinners or invite colleagues to coffee when they come through town. You can interview prominent people for your own blog or podcast. Or, if you share an alumni group or a professional association, you can suggest a “getting to know you” call as colleagues. You might also identify one or two key conferences per year and concentrate your networking during that period.

Many smart, successful lone wolves pride themselves on their self-sufficiency and lack of a network. The strategies above can remind them why building connections is desirable and show them how to do so in a way that doesn’t feel phony. Even the most committed soloists can build a meaningful network.

Dorie Clark teaches at Duke University’s Fuqua School of Business and is the author of “Entrepreneurial You.”

Is technology subsuming SHIVARAM RAJGOPAL MONEY ast year, we published an analysis showing that U.S. companies’ advertising expenditures decreased from 1% of total expenditures in 1975 to 0.8% in 2017. Back then, we concluded that the importance of marketing must have been reduced in the organizational hierarchy, especially compared to, say, engineering, technology and innovation. (Research and development expenditures increased from 1% to 8% in the same time frame.)

Many scholars and practitioners wrote to us arguing that marketing is much more than advertising spend. It was a fair point. Unfortunately, marketing expenses, as opposed to advertising outlays, are not typically disclosed by firms, making it hard to examine the importance of marketing over time based on reported expenditures.

So we turned to another data set: the top leadership of S&P 1500 firms. When we looked at the top-five compensated officers of a firm

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between 1999 and 2017, we found a dramatic decline in the number of chief marketing officers in this top rung — about 35%. Meanwhile, the number of officers representing information or technology in the top-five highest-paid category increased, and now far exceeds the number of CMOs. Because compensation typically reflects an executive’s seniority in an organization, our data suggests that the CMO’s importance in the organizational hierarchy has declined, which supports our earlier assessment that marketing as a function is less valued than it once was.

We found several potential

explanations for these trends.

One is that the number of tech firms has increased over time, while the number of firms in other industries, such as retail and manufacturing, has declined. Both retail and manufacturing rely heavily on the traditional “4P” marketing principles (product, price, promotion and place).

Another explanation is that marketing itself has changed.

Customers now spend an increasing percentage of their income on software-based services that are created, priced and distributed over the internet. They also get more information about products and services from online

sources — bloggers, online reviews, influencers — than from watching advertisements.

Advertisements themselves are now instantaneously placed in browsers based on customer data. So the application of the 4Ps today requires more constant experimentation and dynamic decisions (not to mention algorithms, data scientists, econometricians and big-data experts), instead of the well-thoughtout and stable policies recommended by extensive market research. As a result, information technology plays an increasingly significant role in marketing. One could even argue that marketing is getting merged into the informationtechnology function or outsourced to companies such as Google Marketing Platform.

Another explanation for the declining relevance of marketing is that technology-oriented companies like Google, Microsoft, Amazon.com and Facebook do not fully appreciate marketing’s importance and underinvest in it. Yet another possibility is that firms increasingly acquire brands instead of developing them

organically; recall Microsoft’s acquisition of LinkedIn, Facebook’s acquisition of WhatsApp and Google’s acquisition of YouTube, in multibilliondollar deals. This trend might explain the growing importance in the organizational hierarchy of the chief financial officer, who negotiates the acquisition and the integration strategy of the target and arranges financing.

Whatever the definitive explanation, our findings should interest boards of directors and CEOs, as well as IT, marketing and human resources departments, as they consider their future staffing, compensation and promotion policies. Perhaps it’s time to stop considering marketing and technology as two isolated departments and encourage closer collaboration between them.

Shivaram Rajgopal is a professor of accounting and auditing at Columbia Business School.

Anup Srivastava is an associate professor at Haskayne School of Business, University of Calgary.

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Friday 28 February 2020

BUSINESS DAY

entertainment

Death and the King’s Horseman, an enthralling theatrical piece OBINNA EMLEIKE

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f you have ever read ‘Death and the King’s Horseman’, you will want to read it over again because of the sheer creativity Professor Wole Soyinka, Nobel Laureate and foremost Nigerian literary icon, employed in writing the enthralling literary and drama masterpiece.

However, while the drama book is a good read any day, it is more interesting watching the characters unleash their creative ingenuity on stage in attempt to relay to live audience Soyinka’s thoughts in the drama masterpiece.

The intrigue is that after over 40 years of its release, ‘Death and the King’s Horseman’, which was released in 1976 still mirrors the society, reflects on topical issues and most importantly, entertains the audience wherever it is staged.

At a recent stage performance of the drama at the Freedom Park, Lagos, it was excitement all through the performance amid lessons to take home.

From the onset, the stellar cast ensured that there was no boring moment for the audience; credit to Oluwanishola Adenugba, the producer; Kelvin Mary Ndukwe, who directed the stage performance and Adeleke Solanke, the stage manager.

It was truly live theatre as promised by the organisers as the

Scene from the stage performance

cast lived up to the audience and director’s expectations in acting out Wole Soyinka’s drama piece, which many drama companies try hard to deliver.

Of course, regulars at the Freedom Park’s stage performances also spotted out new artistes who took advantage of the stage play to showcase their talents.

Set in the old Oyo Kingdom, ‘Death and the King’s Horseman’ emphasizes the cultural heritage, which entails a chief to voluntarily die when a king passes on. As the drama flows, it also showcases the

rich cultural heritage of the people, especially dance and language.

The drama is a historical piece set during the peak of British Colonial Administration in Nigeria and the Second World War of the early 1940s.

As the tradition demands, the King’s horseman known as ‘Elesin Oba’ must commit suicide before the burial of the late Alafin in order for the Elesin’s spirit to precede and clear the way for the transition of the Alafin’s spirit.

A cultural dialogue ensues when information gets to Mr. Pilk-

Dear Affy impresses with top spot at box office

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ear Affy, Nollywood’s talk of the town romantic comedy, which debuted at the cinemas on Valentine’s Day, took the number one spot at box office at the end of sales last Sunday.

The movie, which is Samuel Olatunji’s first directorial debut took the shine off Sugar Rush, Birds of Prey, Fantasy Island,

Queen and Slim, Small Chops, The Perfect Picture and The Legend of Inikpi.

‘Dear Affy’ is a romantic comedy film that tells the story of a beautiful career lady on her way to getting married to the man of her dream, who is on the verge of sealing millions of Naira worth of contract. However, he is faced with the devil and the deep blue sea as sealing the contract is

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hinged on him having an intimate affair with the female billionaire contractor by all means just few weeks to his wedding.

The hilarious movie starring Kehinde Bankole, Toyin Abraham, Enyinna Nwigwe, Chinedu Ikedieze, Odunlade Adekola, Hafeez Oyetoro, Bimbo Ademoye and a host of others, is still showing at the cinemas nationwide.

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ing, the then British Colonial Administrator who sees the age-long tradition as quaint and repugnant.

His intervention and subsequent arrest of the Elesin Oba at the climax of the rites of passage set of multi-facet tragic trajectories and dislocations within the Oyo Kingdom. Olunde, the first son of the Elesin, a medical student in England who returns to bury his father as tradition demands, commits suicide to fill the void left by his father’s arrest. But the intrigue is that Elesin still takes his own life in his captivity when the

natives present the corpse of his son to him.

The play seeks to explore the tragic consequences associated with diminished sensibility and understanding of the intercultural behavior, communication and tolerance, especially during the British Colonial era in Nigeria.

The thematic relevance of the play in the present day Nigeria where youths are adrift in the social media could be found in Olunde’s choice of honour, self-sacrifice and patriotism in contradiction to the Elesin and the Pilkings’ arrogance, self-preservation and sacrilege.

After reading the book or watching the stage performance, you will, no doubt, give credit to the cast and director. But you will also appreciate the creative ingenuity of Professor Wole Soyinka, the playwright. Of course, the drama was among the many literary masterpieces that gave Soyinka the enviable recognition of Nobel Prize in Literature in 1986, and the first African to be honored in that category.

For more enthralling staging of the play, you can look forward to performances of the drama at Terra Kulture, National Theatre, Muson Centre, among other theatres in Lagos and across the country.

You can also follow National Troupe of Nigeria, Crown Troupe of Africa, Segun Adefila among other theatre practitioners for updates on the drama.

Chiemelie Ozoka, Anambra SS2 student, launches book on girl-child development EMMANUEL NDUKUBA, Awka

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n SS2 student of Federal Government Girls College, Nkwelle-Ezunaka in Anambra State, Chiemelie Symbol Ozoka, on Tuesday presented her new book to the public at an event held in Awka, the state capital.

The book is entitled ‘Growing up as a girl-child, what my mother taught me’.

Adamu Adamu, minister of education, said the book is so apt that every girl-child would always make reference from it in her quest for recognition and acceptance first as a child with legitimate rights, then as a wife, mother and partner in development.

Adamu, represented by Margarete Nyah, said girl-child access to education is creating positive impact in Nigeria.

“Therefore, my presence with you today is to advocate that every girl-child should be a torch-bearer that will take this campaign to all the nooks and crannies of the country,” he said.

Adamu urged Nigerians to pur@Businessdayng

chase reasonable copies of the book for their families, school libraries and enrich their communities and state libraries.

Lawrence Ugwuanyi, book reviewer and director of internship and linkages services, Office of the Vice-Chancellor, University of Abuja, said that the love of mother is one of things that propel a child to greatness.

“In 205 pages of the book, this young author narrates her rich and rewarding experiences with and from a caring and connected mother who is a perfect of example of emotional intelligence through which all other experiences make meaning.

“Nothing may be as bad as having a mother that is not connected to her son or daughter with this form of intelligence. Nothing again as we would read from Miss Chiemelie Symbol may be more rewarding than having a mother who has much of this for just as a human being can be an inexhaustible source of treasure, a caring mother has what it takes to deepen, widen and expand this treasure.

Friday 28 February 2020

BUSINESS DAY

27

entertainment

Business etiquette

Janet Adetu

D

o you love your job?

How productive are you?

I once worked with a colleague who was nicknamed ‘workaholic’. He was always found working at his desk with his head down writing something.

If you ever came across him in the corridor he would always appear so rushed, barely offering a greeting, he never had the time to stopfor any discussions. He eventually became the favourite of clients as he looked busy, efficient and passionate about his job. It took a while for us to realize especially with the overflowing pile of work at his desk that what appeared to be was never. He was indeed identified as a productivity fraud spending precious time busy doing nothing. The lesson here is that it is one thing to be busy and another to be productive.

For me once I have prepared my’ to do’ list for the day, I am of the initial opinion I will get all done effectively. However half way through the day I am always wishing that the day is 30 -36 hours instead of 24hours because the day goes by so quickly.

The question is: Do I feel productive especially when I am yet to complete my daily tasks?

The truth is that many of us are working more than we planned, we are operating at 120 percent but still feel like we cannot keep up. So in reality the trick to life is for us to work Smarter not Harder.

We are living in a very stressful global world where high technology

For the love of the job! is fast taking over, so much so that some of us are trying hard to stay with the flow. Social media has revolutionized the act of communication making it easier and faster. Goals and aspirations have become wilder, riskier, and more competitive. The want to achieve, improve the quality of life and become more promotable has never been more apparent. Therefore the quest for positive successful personal and professional productivity is a task that must be accomplished if you want to stay relevant. Inorder to maximize priorities and productivity it is time to discover your best, run with it and make it happen.

Keys to maximizing your productivity i. Identify your positive and negative qualities: Conduct an in-depth appraisal of yourself finding facts and not faults.

This will help you form a basis for improvements. Emphasize more on your positives and do not dwell on your inadequacies. Include in your list those things that matter most to you, make them your priority. Identifying your positive traits will help you stay focused and assist in increasing your productivity both personally and professionally. ii. Be goal-oriented and forward thinking Working endlessly without a goal can be futile. To be productive you need direction that is time bound and achievable. When setting your goals you should visualize your success with a positive attitude. Your passion for your vision will drive your productivity up and set you on the right path. Along the way be open yo possible changes, a few risks but always believe you can do it. iii. Associate with positive people It goes without saying that when you surround yourself with negative people chances are they will put your

ideas down or discourage your efforts. This in turn will demoralize you and sabotage your self-esteem. An optimistic boss will always encourage his / her subordinates. Surround yourself with people who you find encourage, inspire and motivate you.

This will boost your energy, spur you to increase your knowledge base and discipline you towards ensuring that you achieve that which you have set out to achieve. In such a competitive environment we live in you need to be constantly encouraged to relieve yourself of the impending stress you experience daily. Positive leaders bring positive attitude. iv. Polish yourself image Your image is everything, the beginning of you creating a good or bad first impression. A successful person has a deep sense of self -worth and a good self –image. Having a good selfimage is the foundation from which you’re self – esteem, self – confidence and attitude arises from. When you polish your image you say a lot about yourself without saying a single word. When you feel good about yourself you are confident to excel in any project or mission. Dress the way you would like to be addressed.

Be sensitive and pay attention to detail when choosing what to wear daily. Dress appropriately recognizing the occasion, day of the week, time of day. Ensure your clothes fit

‘

The truth is that many of us are working more than we planned, we are operating at 120 percent but still feel like we cannot keep up. So in reality the trick to life is for us to work Smarter not Harder

properly, accentuate your body and feel comfortable. Try to colour coordinate your dress sense effectively, compliment your appearance with the correct accessories and spice your look with fabulous shoes. Your image is incomplete with me talking about the importance of grooming and hygiene. The easiest way to sabotage your image is to look unkept, give off an overwhelming odour and appear unapproachable. Identify a smell you like and are comfortable with, take care of your hair, nails, face and feet regularly. Your objective in being productive is for people to see you and trust you enough to want to do business with you. Creating, establishing and maintaining relationships is key to maximizing productivity. v. Be a team player ‘No man is an island’ - is a popular saying that could not be further from the truth.

Just like I explained about my colleague who was busy doing nothing, this is because he operated alone. He was never a team player so became quite anti-social and inefficient. In being a team player you are able tap from a wider pool of knowledge. You therefore gain more and can direct your level of productivity positively.

A team player should equally share information, be open to opinions, constructive criticism, new ideas and advice. When you work in a team you work in common agreement towards a common goal. As a team your achievements are greater, provided you are able to get everybody to follow the vision, accomplish their individual and collective tasks and motivated to achieve. With all these in check as you increase your productivity you will automatically increase that of the team.

Just love that job!

Please share your experience with me by email: janet.adetu@ jsketiquetteconsortium.com. Follow & Like us: @ janetadetu / @ jsketiquette

Netflix announces first Nigerian original …set to increase investment in Nigerian storytelling

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etflix has announced plans to increase its investment in Nigeria’s creative community starting with the production of its first African original scripted series from Nigeria.

The first original scripted series, which is yet to be titled, is an Akin Omotoso Project, featuring a six-part series directed by Omotoso alongside Daniel Oriahi and CJ Obasi. The series will star Kate Henshaw and Ade Laoye in leading roles alongside other Nollywood greats and fresh faces such as Richard Mofe Damijo, Joke Silva, Fabian Adeoye Lojede, Kehinde Bankole, Ayoola Ayolola, Toyin Oshinaike, Goodness Emmanuel, Ireti Doyle, Fabian Adeoye Lojede, Bimbo Akintola, Tope Tedela and Ijeoma Grace Agu. Set in modern-day Nigeria and shot in Lagos, the drama tells the story of Kemi, a goddess reincarnated as a human to avenge her sister’s death. But first, she must learn how to use and harness her super powers to defeat her enemies and save her family from destruction. The series

will be produced by Rififi Pictures.

Over the last year, Netflix has started to invest in the creative community, bringing Nigerian stories to audiences all around the world.

The stories include popular movies such as Merry Men, The Real Yo-

ruba Demons, The Wedding Party 2, King of Boys; Nollywood classics like The CEO, October 1 and The Figurine; and films by renowned Nigerian director, Kunle Afolayan, such as Mokalik. These much-loved Nigerian movies will join Nollywood

favorites such as Chief Daddy, Lion Heart and The Bling Lagosians.

According toTed Sarandos, Netflix’s chief content officer: “Movies like King of Boys, Merry Men and The Bling Lagosian have shown how much our members love Nigerian

Front Row (L-R): Mo Abudu, Adesua Etomi, Dorothy Ghettuba (Netflix African Originals lead), Kunle Afolayan, Kemi Adetiba and Ramsey Noah.

Back row (L-R): Banky W, Ted Sarandos (Netflix chief content officer), Kate Henshaw, Richard Mofe-Damijo, Felipe Tewes (Netflix Italian & African Originals director), Omoni Oboli, Ben Amadasun (Netflix Africa licensing director) and Akin Omotoso. www.businessday.ng

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@Businessdayng

movies. So, we are incredibly excited to be investing in Made in Nigeria stories - bringing them to audiences all around the world.”

Dorothy Ghettuba who leads African Originals at Netflix, said: “I am excited that in the same week that we are launching Queen Sono, we had the opportunity to be here in Lagos with Nigerian storytellers to share plans of our first Nigerian original production. Our continent has a wealth of diversity, multiplicity and beauty in stories that have yet to be told and we want to be top of mind for creators in Nigeria, especially when it comes to stories they have not had a chance to tell yet.”

Last month, Netflix enabled Nigerian members to pay for its service in Naira - making it much easier for existing and future subscribers to use Netflix. Members can enjoy a wide range of diverse, quality entertainment including African Originals like Queen Sono, which launches this Friday February 28, 2020. Other African Originals launching this year include Blood & Water and Mama K’s Team 4.

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FINTECH News

Friday 28 February 2020

BUSINESS DAY

Products Review

In association with

Technology Review

Personality Review

Company Review

Nigeria’s startup investment scene needs patient capital - Aruma Oteh Stories by FRANK ELEANYA

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nvestment in start-ups in Nigeria is steadily picking up. Last year investors poured over $400 million into start-ups in Nigeria alone, making them the most attractive in the continent for the first time since 2015. Fintech companies in Nigeria were particularly outstanding, as firms like Interswitch and OPay were the most dominant in the year.

However, Aruma Oteh, former Treasurer and vice president of the World Bank said it is not enough to confer a title of maturity on the investment space in Nigeria, for obvious reasons, one of which is the lack of patient capital.

Patient capital is another name for long term capital.

With patient capital, the investor is willing to make a financial investment in a business with no expectation of turning a quick profit. Instead, the investor is willing to forgo an immediate return in anticipation of more substantial returns down the road.

For starters, 2019 was the first time Nigeria would overtake South Africa in the amount of funding raised in a calendar year. South Africa has led the continent since 2015 when venture capital investment began to grow. In 2018, Nigeria overtook South Africa in the number of start-ups that received funding but failed to replicate same in the amount of money received.

Nigeria, which recorded the highest amount of deals with

136, only drew in $133.5 million compared to South African startups which roped in USD 241.1 million in 108 deals.

Secondly, over 90 percent of the funds that have gone to start-ups in Nigeria from 2015 to 2019 have come from foreign investors. Foreign investment accounted for 98 percent of the total funds raised by Nigerian Internet startups in the second quarter of 2018, according to a report by TechPoint Africa. The

ratio of foreign to local investors for this period was 7:2 but in value, the ratio was about 13:1.

To be fair, the local side is tepidly picking up and only made some milestones in 2019.

For instance, for the first time an indigenous startup (TeamApt) secured $5 million from a local private equity firm (Quantum Capital) owned by a Nigerian billionaire. The last time a Nigerian startup (Piggyvest) secured funding from local investors

exceeding $1 million, it took three Nigerian venture capital companies (LeadPath Nigeria, Village Capital and Ventures Platform) to pull it off.

All in all, local investment has yet to show up as a sustainable source of funding for startups seeking investments to expand their businesses. Most early stage start-ups often have to turn to family and friends for initial capital but eventually look towards Silicon Valley investors for expansion capital.

“The investment space in Nigeria is primarily from two sources; banks and government,” Oteh told BusinessDay. The banks are notorious for their short term outlook and low risk appetite towards small businesses. In their bid to protect depositors and shareholders’ funds banks are known to have come up with stringent timeframes. This is unlike venture capitalists whose interest in startups is to invest rather than just being the lenders; a position banks prefer to take.

The Central Bank of Nigeria tried to force banks to lend to small businesses by increas-

ing lending to deposit ratio, and barring individuals and start-ups from OMO transactions. While that is paying off, the pace of banks lending to start-ups has yet to change significantly.

Most startups also see banks as being overly concerned about interests and the need to meet debts deadline instead of showing actual interest in the growth of companies.

Government funding on the other hand is irregular giving the massive infrastructure developmental deficit they have to shoulder. Faced with the problem, Nigeria’s Vice President, Prof Yemi Osinbajo had tried to directly woo Silicon Valley investors by embarking a tour of big firms in the Bay Area.

Oteh told BusinessDay that it doesn’t really matter where the investment comes from so long as start-ups are able to use them to scale their innovation and push their presence on the global scene.

“I think considering the state of the economy, they deserve every encouragement they get,” she said.

Cryptocurrencies on Luno wallet now 4, as Ripple joins family

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he over 3.5 million users of the Luno wallet will be able to access four cryptocurrencies from 3 March when Ripple joins the exchange.

The users spread across more than 40 countries, can already access Bitcoin (BTC), Ethereum (ETH) and Bitcoin Cash (BCH).

Luno, which was recently crowned one of the top 10 exchanges in the world, promised in 2019 that more coins would be available. The exchange has already handled US$8 billion in transactions.

Co-founded in 2012 by Jed McCaleb and Chris Larsen, Ripple (XRP) has grown to become the third-largest digital asset with a current market value of US$12.5 billion. It is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company designed to facilitate cost-free crossborder transactions.

The main purpose of XRP is to be a mediator for others - both cryptocurrencies and fiat exchanges. Ripple’s use of distributed ledger technology

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is seen as an ideal fit for transparent, fast and effective payments which has led to XRP being brought-in to handle international remittances in a number of banks.

“Ripple is a perfect fit with Luno and the other digital assets we offer as it is the first digital currency to be adopted by mainstream financial institutions,” said Marcus Swanepoel, CEO of Luno. “We have always shouted about the benefit digital currencies can give to many millions of people, so to have a coin with a genuine utility function which

is being adopted by banks is great news. Offering Ripple on the Luno exchange has potential benefits for thousands of Luno users, especially those in developing markets, who rely on cryptocurrencies to handle money into and out of their businesses.”

Since it was founded in 2013, Luno has been very careful in adding new cryptocurrencies on its wallet with bitcoin and ethereum the only cryptocurrencies on it wallet for many years. The company only added Bitcoin Cash in 2019.

That same year, it asked a

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sample of customers which coins they would most like to see added to the platform. The survey found that Ripple (XRP) was the coin they most wanted to buy. The interest in XRP has been building for some time, as many banks and networks use Ripple to provide fast low cost cross-border payments.

“We have always limited the number of coins we offer, only listing digital currencies which have liquidity, are secure and have the utility which will benefit our clients,” Swanepoel said. “While cryptocurrencies are still in

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their infancy, coins like XRP demonstrate the benefits that blockchain based assets can offer. It is always an exciting time for cryptocurrency but 2020 looks as though it will be another very important year for the sector as more and more people use digital coins as part of the day-to-day finances.”

To celebrate the introduction of this important coin to the Luno exchange, all users will be able to trade with a reduced fee for the first 30 days of XRP. Details of this will be shared on luno.com.

Friday 28 February 2020

BUSINESS DAY

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30

Friday 28 February 2020

BUSINESS DAY

IMPACT INVESTING

In Association With

Nigerian businesses want naira denominated funds to avoid exchange rate volatility - Chukwuma INNOCENT CHUKWUMA is the Regional Director, West Africa, for the Ford Foundation. In this interview with TELIAT SULE (BusinessDay Research and Intelligence Unit-BRIU), he spoke about the impact investing landscape in Ghana and Nigeria, the challenges of impact investors and what the Nigerian government needed to do to improve the business environment: Excerpts.

Kindly give an overview of the landscape report on Nigeria and Ghana s you heard us during the presentation itself, the report primary purpose was to update the 2015 report that GIIN that Dalberg prepared, which provided information on investment inflows towards impact investing in Ghana and Nigeria. The opportunities within the sectors for growth, and the challenges impact investors face in terms of investing more in the country and the sub region. That report was and still the go-to report to some people on the knowledge of what is happening. It is a bit dated as it was produced in 2015 which means the research was conducted around 2014.

We thought we needed to updated it because whoever is coming into the market should have up-to-date information on what is happening in the market, which was why ford supported IIF to carry out the study, and also more importantly, why Dalberg who did the 2015 report was engaged to do it so that using the same template they used back then, they would be able to give us more information.

More so, if you look a bit more at the policy environment, how enabling or dissembling is it to impact investors? And that is why we did it and going forward, the sector needs deeper dive on what is happening, because if you like, the report presents the global picture of the landscape in the sub region. If you pick agriculture, education, affordable housing, the report gives you information on what is happening or what you need to know.

As you heard from the participants, the report has enabled us to know that more investors and investments are coming, DFIs are coming in; even the DFIs despite being the dominant players, their share of the market is beginning to reduce as more individual investors join. But there are some challenges that need to be overcome in terms of the enterprises that are business ready and the insistence of enterprises to control their businesses by providing the necessary education and assistance required to get their enterprises ready for investment.

Even though the policy environment is in many ways a challenge, it is a challenge that investors are turning into opportunities by com-

A

Innocent Chukwuma

ing into Nigeria to invest. Yes, energy is a challenge, but it is something to include in your business decisions.

That is not an issue for players who have the knowledge of the market from coming in, but it is also a call on government to do more if they want more impact investors to come in.

To that extent, we are happy with that report and with the number of critical stakeholders that turned up to receive the report. But even more so, we want more dissemination so that the report will be the reference point for impact investing in the West African sub region.

What are the similarities and differences between Ghana and Nigeria based on the findings in the report?

The similarities are the challenges impact investors have in finding enterprises to invest in, and these cut across the marketsNigeria and Ghana. In terms of the dominant roles played by DFIs, is still the same. Where you will begin to have divergence is that the ease of doing business in Ghana is better than in Nigeria. They seem to have more proactive investors to deepen that market but while Nigeria is still

“

The informal sector dominates the business land scape in Nigeria because an average business is either micro or small or medium enterprise that may not absorb the kind of money the average DFI wants to invest in the country https://www.facebook.com/businessdayng

“

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getting investments in spite of the challenges is because investors are looking at the size of the market.

Yes, Ghana has a better investment environment, but in terms of the market, Nigeria has it more.

But Nigeria should not continue to rely on that number-too big to fail mantra. This is because countries within the sub region are actually beginning to think about how to do it without Nigeria. We saw recently how the francophone countries came together and decided they would use the Eco as a single currency. If they bond the market, the population that will be involved will be huge and may be a critical challenge to Nigeria. The challenges are common, yet the divergence is that Ghana is doing better at improving its investment climate.

And that is why, if you look at investment, the amount of investment relative to population, we may say that Ghana is doing better. Nigeria is almost 200 million people while Ghana is about 29 million people.

Ghana has about $1 billion impact investing while Nigeria has $4 billion. If you use populations ratio, you can see they are doing better than Nigeria. If you also look at the diversification of the market in terms of where the DFIs are investing-they are investing in ICT, energy, and others; growth sectors that will address the need of other sectors.

My major takeaway is that Nigeria should not be sleeping believing that investors will come. We are not the only populous country in the world.

Smaller countries are finding ways to get around the number game by coming together to form a bigger market.

How much advocacy does Ford Foundation do to get the government to address some of the challenges faced by impact investors?

If you look at the annual convening that the IIF has done over the years were all targeted at bringing together key stakeholders in government and other areas. In 2018, the keynote speaker then, Okechukwu Enelamah, was the then Minister of Trade and Investment. The chair of that occasion was the Vice President of the Federal Republic of Nigeria, represented by the Chief Economic Adviser to the President, Adeyemi Dipeolu. We had three to four commissioners in Lagos State who attended the program.

More importantly about this @Businessdayng

report, we encouraged the researchers to do a deeper dive on the policy environment. With that, we will engage the government of what they need to do to improve the business environment. One of the projects that IIF will be doing this year with the support of the Ford Foundation is a round table on the need to create local impact fund, that is, a naira denominated impact fund. The challenge enterprises in Nigeria have with the DFIs is that the Nigerian businesses want naira denominated funds to avoid exchange rate volatility. They also want smaller tickets.

The informal sector dominates the business land scape in Nigeria because an average business is either micro or small or medium enterprise that may not absorb the kind of money the average DFI wants to invest in the country.

The average ticket size for a DFI is about $57.9 million. In Nigeria, any enterprise that absorbs that kind of money will be classified as a large corporation. We need more funds locally that can meet the needs of these SMEs in terms of smaller tickets, and more importantly, a naira denominated ticket which will not subject the local SMEs to the vagaries of the exchange rate volatility.

We are going to engage the government officials to see where we can raise funds-lower hanging impact funds, that can be lent to businesses at below market rates so that their businesses can grow.

When small businesses grow, they will pay more taxes, employ more people, the economy will grow. So, we don’t have to be running to the debt market to solve everything.

Private sector led economy can bring in the needed capital to grow the economy.

Outlook for impact investing in Nigeria It is promising and bright. The scale of the need is staggering. The quantum of the capital needed to address impact investing in Nigeria is so much that the public sector funding alone cannot address it.

Development finance funding alone cannot do it. Private foundations such as the Ford alone cannot do it.

We need to create an enabling environment for traditional private capital where you have a lot of money to come into the middle where impact investing is, and achieve the financial returns and make the necessary impact on the business landscape.

Friday 28 February 2020

BUSINESS DAY

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Markets + Finance

‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Zenith Bank Plc: Growth in non-interest income, cost optimization adds impetus to profit BALA AUGIE

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enith Bank Plc in its recently released last quarter results for the year ended December 31st 2019 showed improvement in profit due to 22.36 percent increase in fees and commission income.

Despite the continuing tough operating environment, the lender has been able to curtail operating expenses as it became the first bank to cross the N200 billion profit marks.

It has an excellent risk management strategy and efficient allocations of loans to critical sectors of the economy as its Non-Performing Loans (NPLs) are below the regulatory threshold.

The Bank for the full year 2019 maintained its regular dividend payment, and it has paid investors a final dividend of N78.50 billion for 2019 financial year (on the basis of N2.50 per share) for every N0.50 share, and it had paid an interim dividend of N9.42 billion (N0.30 per share).

The lender’s investment in the latest technology with a view to magnifying earnings and spurring shareholders value has paid off as income from electronic product transaction surged by 108 percent.

A further breakdown elec-

tronic transaction showed income from Zenith Mobile surged by 106.38 percent to N8.46 billion in December 2019 from N4.07 billion as at December 2018.

Income from internet banking surged by spiked by 69.95 percent to N11.56 billion in the period under review from N6.82 billion as at December 2018.

Volume of electronic product transactions was up by 32.65 percent to 163.70 million in the period under review from 123.40 million as at December 2018.

Volume of transaction

from USSD (Unstructured Supplementary Service Data) increased by 84.48 percent to 193.70 million in the period under review from 104.80 million the previous year.

The Bank offers its client a wide range of corporate, investment, business a wide of corporate, investment, business, and personal banking and solutions.

Zenith Bank was established in May 1990 and started operations in July same year a commercial bank. It became public limited company on June 17, 2004 and was listed on Nigerian Stock Exchange on October 21, 2004.

The Bank won the award for the best commercial Bank 2019 by The World Finance; Most Valuable Bank Brand by The Banker; Best Digital Bank

by Augusto and co; Bank of the year by BusinessDay Media; Best Bank in Retail Banking

by BusinessDay Media, and Most innovative Bank of the year (2019), by The Tribune Newspaper.

FESS and commission income add impetus to gross earnings Gross earnings for the year ended December 2019 increased by 5.06 percent to N662.25 billion from N630.34 billion corresponding period of 2018; largely driven by a 29.16 percent increase in noninterest revenue to N232.12 billion from N179.96 billion over the same period.

The increase in noninterest revenue was propelled by fees

and commission income and trading gains that recorded an uptick of 22.15 percent and 46.87 percent, respectfully.

Interest expense grew by 2.82 percent to N148.52 billion in the period under review from N144.58 billion the corresponding period of 2018.

A breakdown of the components of interest expenses shows that the increase was triggered by an uptick of 16.15 percent in interest expense on savings accounts to N21.62 billion from N18.69 billion the corresponding period of last year.

Effective management of expenses result in increased profit Zenith Bank’s pretax profit was up 5.07 percent to N243.29 billion in the period under review from N231.15 billion the corresponding period of last year.

The improvement in profits was largely supported by an upsurge in noninterest income and the ability of management to curtail costs even amid a tough and unpredictable macroeconomic environment.

The Bank’s drive towards cost optimization continues to yield positive results as total operating expense increased by only 3 percent (lower than 12.13 percent January inflation figure) to N231.82 billion in December 2019 from N225.50 billion the previous year.

Cost to income ratio improved to 48.80 percent in December 2019 from 49.30 percrnt as at December 2018.

This means the lender has kept cost to the barest minimum while magnifying earnings.

Net income increased by 7.97 percent to N208.84 billion in December 2019 from N193.42 billion the previous year.

Excellent risk management strategy sends npls to three year low.

Zenith Bank’s risk management strategy through portfolio diversification across the sectors of the economy has yielded fruit as Non-Performing Loans (NPLs) fell to 4.30 percent in the period under review from 4.98 percent in 2018 and 4.70 percent in 2017.

The Bank adopts a complete and integrated approach to risk management that is driven from the Board level

to the operational activities of the bank.

Risk management is practiced as a collective responsibility coordinated by the risk control units and is properly segregated from the market facing units to assure independence.

Strong balance sheet validates aggressive lending For the year ended December 2019, Zenith Bank grew its total assets by 6.34 percent to N6.34 trillion from N5.95 trillion the corresponding period of last year.

The growth in total assets can be attributed to a 24.15 percent rise in property and equipment and deferred tax 24.93 percent.

Gross loans grew by 21.78 percent to N2.46 trillion in the priod under review from N2.02 trillion as at December 2018; propelled by both corporate lending activities and new retail loan products. The 16 percent year on year (YoY) growth in customers’ deposits is a reflection of the increasing confidence in the Zenith brand.

Total deposit from customers was up 15.44 percent

BD MARKETS + FINANCE Analysts: BALA AUGIE www.businessday.ng

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to N4.26 trillion in the period under review from N3.69 trillion the previous year.

Attractive valuation validates buy ratings from investment houses Despite the macro and regulatory risk brought on

by Central Bank of Nigeria (CBN) new Loans to Deposit ratio (LDR) rules, reduction in charges, and removal of local and institutional investors from the Open Market Operation (OMO) market, Zenith Bank was able to exceed analysts’ expectations as earnings remained strong while valuations remained attractive.

Zenith Bank has a price to earnings ratio of 2.89 times, the lowest in the industry, which makes its share price an allure to investors.

Investors will receive much in dividend income from the Bank’s stocks then peer rivals.

Zenith Bank has a dividend yield of 14.74 percent, this compares with Guaranty Trust Bank (GTB)’s (9.82 percent); Access Bank, (5.26 percent); United Bank for Africa (UBA), 11.49 percent, and First Bank Holdings, (4.52 percent).

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ACCA summit: HR experts say job seekers need tech, Nigerian ad agencies must evolve, comply with regulatory policies to survive tough times - Experts skill diversification to become employable Daniel Obi

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dvertising agencies have been advised to evolve their operations by becoming solution providers, comply with all regulatory and tax policies and take cognizance of events in the economy in order to survive the tough business environment.

This was the view expressed by speakers at the 2020 Business Outlook Seminar of the Association of Advertising Agencies of Nigeria (AAAN), which held recently in Lagos. The event had as its theme: “Nigerian Business Environment in the year 2020: Implication for Advertising Agencies.”

Delivering the keynote address, Emeka Onwuka, partner and head of Andersen Tax LP, explains that the Nigerian economy is projected to grow by 2.4 percent and flourish in 2020. He attributes the anticipated economic growth to the early passage of the 2020 budget, the enactment of the 2019 Finance Act, stability of oil price in the international market and the growth of

the non-oil revenue sectors, among others.

Onwuka, however, states that government must be interested and help businesses thrive, adding that economic actors must not take decisions that will negatively affect them and the economy in general.

“You (businesses) can have your own plans for the year, the economic actors are making their own conclusions but when they are done with their conclusions and take actions, it can be overwhelming or underwhelming. But so far, so good, the Central Bank of Nigeria appears to be managing the situation well.

“Government plays a central role in the life of businesses. I always joke that government is an executive holder in every business in Nigeria; so government should be interested in how businesses thrive, government should be out there finding out what problems businesses have because it is when businesses thrive, that’s the only time that government should thrive,” he says.

Onwuka also notes that advertising agencies must

be tax compliant and ensure they keep adequate records of all financial transactions in order to avoid the wrath of the tax regulatory agencies.

“The tax law by its nature is dynamic because government are supposed to tax businesses, as businesses earn every day. So, it is best practice to update your taxes as the businesses change. One good thing about the change of taxes in the new Finance Act is that government didn’t impose it on us; it was actually done in consultation with the private sector,” he says.

He also says the agencies must take note of the changes to the various taxes implemented in the newly enacted 2019 Finance Act and the differences of the various taxes, particularly Withholding Tax and Value Added Tax (VAT).

Frank Aigbogun, publisher/CEO, BusinessDay newspaper, states that there are positives from the Nigerian economy, particularly with the recently released figure of the 2.27 percent GDP growth, but it is far from where it should be.

AMAKA ANAGOR-EWUZIE

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uman resources experts who took turns to assess Nigeria’s job market in respect to the qualities employers look out for in present day employees have identified technological skills and ability to diversify into other fields as critical to becoming employment ready.

Speaking in Lagos on Thursday at the ACCA Annual Summit 2020 themed: ‘Become a Future-Ready Talent,’ Yemi Faseun, head, HR of FBNQuest, said technology had created opportunities that could enable employees, especially job seekers to enhance their careers through acquisition of new skills.

According to Faseun, present generation of employees only need phone, connectivity, data and power bank to succeed and deliver on their responsibilities in workplace from wherever they are.

Jennifer Oyelade, CEO of Transquisite Consulting, stated that diversifying ones experience without confining self in one career path was very critical to securing employment in the

job market.

“Job seekers need to carve a niche for themselves by undergoing short courses in field other than their primary specialisation in order to become professionals in other disciplines. You have to become what employers need by leveraging on new experiences to become competitive in the job market,” she advised.

She said global thinking organisations want future ready employees and not the people they would need to invest in training, adding that this was where diversification of experiences becomes critical.

Tom Isibor, head, ACCA Nigeria, who pointed out that the summit was aimed at taking students through capability development towards enhancing their careers in line with the requirements of employers, stated that people were alive in a very disruptive world, which makes it critical that finance professionals need to develop themselves to be relevant to present realities.

To him, the composition of panel was to bring to bear those skills organisations are looking for in employees and from their perspective, employers are only

interested in what the employee can deliver to the organisation.

“The discussion of today has sent a big message to Nigeria’s education sector, which is the fact that employers are looking for talents that are ready and not for those they would invest in training. We need to look at where we want to go as a nation and where we are now to ensure that the platform we have today can take us to where we are going,” he stated.

On the ACCA advantage, Aderonke Adebule, business development manager for Lagos and West Region, who noted that the theme of the summit was decided on after a major research in 2019, said the outcome of the research was the discovery of five major opportunities that were going to be relevant into the future.

“They include becoming a digital clinical by understanding the world we are in today, understanding how emerging technology can shape the future while the second point is sustainability trail blazer, which is using performance management to effectively interpret information in an organisation and among others,” she said.

Stakeholders call for right structure, personnel for succession planning in business BUNMI BAILEY

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ndustry stakeholders have emphasised the need for businesses in Nigeria to create the right structures, have passionate and skilled people and also strong institutionstoensureefficientsuccession planning.

According to Abasiama Idaresit, executive director of Wild Fusion, businesses can outlive their owners if they are structured differently and in the right way.

“Sometimes, when a business is small, you find yourself doing all the functions. But there will be a time when it will mature and you will have to invest in it. So, one of the things I tell people is that they have to institutionalise their business. Try and get not only people but institutions like companies or setupatrust,becausethesethings willoutliveyou,”Idaresitsaidatthe 2020 House of Tara Distributors conference held recently.

The House of Tara Distributors conference is a day annual comprehensive development opportunity for 35 field sales distributors and entrepreneurs from different industries, backgrounds and expertise in the beauty industry seeking to thrive in their businesses.

Succession planning is the process of identifying and developingnewleadersthatcanreplace old leaders when they leave, retire or die. It increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.

Linda Ochugbua, head of digital sales, BusinessDay Media, said business owners should look for people skilled, passionate and interested in their businesses.

One of the biggest challenges most businesses end suddenly is because it is all about family.

“Mosttimes,familymembersmay not be interested in the business and it ends up failing. That is why as a business person you need to teach, mentor and train passionate and skilled people to fit into your business,” she said further.

A 2018 Family Business survey by PricewaterhouseCoopers (PwC) stated that only 10 percent offamilybusinessesinNigeriahad succession plan.

CosmasMadukaJR,executive director of Coscharis Group, said businesses need long- and shortterm strategy to move forward and that the long-term one was the succession planning.

“A business that does not involve the youth will not live very long.Youneedtoseethemasyour stakeholders. And that is what structure is all about, recognising the stakeholders from the board level, management, customers, suppliers and the rest,” Obinna Anyaegbu, the executive director of Chisco Motors, said.

According to Anyaegbu, the lifecycle of a business starts from a one man business, and when it business starts to mature, it will have to start involving other people,eitherinthemanagement or board level to help structure things in place.

Apart from the panel discussions,ChrisOmoijiade,theauthor of Get Ahead, made a presentation on the 15 ways to stay and get ahead when building a business empire, and Bimple Onakoya, the artistic director for Nigeria, Maybelline New York, discussed on the growing treads and innovations in the beauty space when managing a distribution or retail-led business. www.businessday.ng

Liam Mallon (3rd l), president, Upstream Oil & Gas, ExxonMobil; Mele Kyari (m), GMD, Nigerian National Petroleum Corporation - NNPC; Paul McGrath (3rd r), chairman/MD, ExxonMobil companies in Nigeria; Roland Ewubare (2nd r), chief operating officer, NNPC Upstream; Hunter Farris (r), ExxonMobil’s senior vice president Deepwater, with Udom Inoyo (l), executive vice chairman, ExxonMobil companies in Nigeria, and Umar Ajiya (2nd l), chief financial officer, NNPC, at the NNPC management’s visit to ExxonMobil’s Houston Campus.

IFC, Union Bank to support Nigerian SMEs, women-led businesses GBEMI FAMINU

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FC, a member of the World Bank Group, has announced a $25 million local-currency investment in a risk-sharing facility to expand Union Bank’s lending to small and medium enterprises (SMEs) in Nigeria. The facility, which will cover as much as 50 percent of the risk of the bank’s loans to entrepreneurs, aims to help Nigerian businesses grow and create jobs.

With IFC’s support, Union Bank plans to offer more products and services to womenowned businesses, especially in Nigeria’s conflict-affected Northern and Delta regions, where entrepreneurs face particularly difficult challenges

accessing finance, and more than half the population is excluded from the financial system.

According to Emeka Emuwa, chief executive of Union Bank, “Union Bank continues to develop sustainable products and services that promote enterprise and address poverty and financial inclusion. This is in line with our commitment to support the communities within which we operate. The IFC facility is a welcome development which will further deepen our efforts to support Nigerian SMEs and women.”

Also commenting on the initiative, Eme Essien Lore, IFC’s country manager for Nigeria said, “IFC’s risk sharing facility will help Union Bank increase its focus on Nigeria’s

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underserved areas, positioning it as one of the leading banks that provides customised services to SMEs that are driving job creation and growth across the country.”

Although small businesses provide over 80 percent of Nigeria’s jobs, a recent World Bank survey found that only 15 percent of SMEs in the country reported having a bank loan or line of credit. It also found that more than half of the women-managed firms surveyed named access to finance as a major obstacle to growth.

The new facility is part of IFC’s Small Loan Guarantee Program (SLGP), which is easing local-currency lending to SMEs in frontier markets. SLGP is backed by the International Development Association’s @Businessdayng

(IDA) Private Sector Window, which is providing a first-loss guarantee, allowing IFC to scale up its support to underserved and unbanked SMEs. IFC’s investment also includes support from the Women Entrepreneurs Finance Initiative (We-Fi), in the form of performance-based incentives for increased lending to women-owned SMEs. Union Bank has continued to support SME and empower women-led businesses through tailored products and services. The Bank recently unveiled Alpher (α), a dynamic proposition aimed at uplifting Nigerian women through customised financial services, capacity building opportunities and competitive interest rates on loans.

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news

Facilities for National Sports Festival Amstel Malta headlines 2020 AMVCA, LAPO boosts rural lauds nominees, African movie industry agriculture with N10.9bn ready for use, Edo reassures investment in 2019 A IDRIS UMAR MOMOH, Benin

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ift Agricultural and Rural Development Initiative (LARDI), a financial subsidiary of Lift Above Poverty Organisation (LAPO), says it disbursed the sum of N10,936,270,300 billion to 129,637 rural farmers in 2019.

Sabina Idowu-Osehobo, executive director of LAPO, made this known while reviewing the activities of the 2019 financial year of the establishment.

Osehobo said the figure represented 49 percent increase of the sum of N7,342,503,550 billion disbursed to beneficiaries in 2018.

She said the organisation’s investment was part of its policies geared towards addressing the problem of food security in Nigeria through rural agricultural financing.

While attributing LARDI’s performance over the years to strong institutional strength, staff commitment to excellence and hard work, she assured that the organisation was ready to maintain its excellent performance in years to come.

“LARDI is entrusted with the mandate of improving the quality of life of rural dwellers through committed support for livelihood activities intended to energise and drive the rural economy.

“The organisation equally builds the capacity of rural farmers through on-farm demonstration and training.

“It’s also improving the lives of community members and building the capacity of women to challenge harmful socio-cultural structures and processes that limit their progress and enjoyment of good life”, she said.

The LAPO executive director noted that the beneficiaries who were hitherto engaged in subsistence farming had expanded their farm enterprises with improved income for their families and savings for future investment.

She enjoined low-income farmers to take advantage of the affordable loan opportunity offered by LAPO to enhance the growth and development of their farm enterprises.

She also disclosed that the organisation has improved the socio-economic and health conditions of 1,257,297 community members across the country with innovative services in 2019.

She gave the breakdown of the figures of the beneficiaries to include 274,929 persons reached with direct

services in target communities, while 976,368 were empowered through Information, Communication and Enlightenment Materials.

According to Osehobo, social and health empowerment programmes have always been an integral part of LAPO’s poverty reduction efforts, as no meaningful development can be achieved without the inclusion and involvement of women in the development process.

“The organisation delivers innovative health, social empowerment and financial services to target beneficiaries”, she said.

She however commended the management of LAPO Microfinance Bank Limited and other organisations that had been part of the history and success story of LAPO over the years.

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do State governor, Godwin Obaseki, has reiterated that the state is ready to host the National Sports Festival (NSF) scheduled for month, noting that facilities for the various competitions are ready for use.

Obaseki, who was on an inspection tour of facilities at the Samuel Ogbemudia Stadium, said the swimming pool, lawn tennis courts, the Video Assistant Referee (VAR), power and security systems were all ready for the games.

The governor, however, assured that the gymnastics complex, which is over 90 percent complete, would be ready within the next 10 days.

Edo State will host athletes from across the 36 states of the federation and the Federal Capital Territory (FCT) for the national event, scheduled to hold in March.

He noted, “I have been assured by the contractor that the gymnasium hall will be ready in 10 days

because all the materials are already here. The centre court of lawn tennis has also been completed.

Overall, we have a very competent contractor on site and with the resources available to him; we will be able to complete the job and get the workers out of the site and commence the games.

“In terms of parking spaces, we have been able to locate spaces not too far from the stadium, from where people will be transported to the stadium so that we will be able to manage the traffic.”

Athletes representing Edo State will be coming into camp next week, while the state has identified and secured over 11,000 spaces of accommodation for visiting athletes from other states, he said, adding, “We have institutions around town, and the hotels have been very supportive. We have at least 3,000 commercial hotel rooms available for the game.”

mstel Malta, headline sponsor for this year’s Africa Magic V i e w e r s C h o i c e Aw a r d (AMVCA), has hosted nomine es and guests at the sponsor’s cocktail party, at Harbour Point, Victoria Island, Lagos.

There really are few platforms as invested in celebrating authentically told African stories, Nigerian stories as the AMVCA is and this is a testament to the shared core value of the brand. The sponsorship builds on Amstel Malta’s vision to contribute to the thriving Nollywood industry and the pivotal role the brand plays in the celebration of the African movie industry.

Amstel Malta, produced

by Nigerian Breweries plc, has always been a partner of the Nigerian entertainment sector. This is evident in how the brand continues to raise the bar through the talents they celebrate and in their partnerships with the theatre arts industry with Amstel Malta sponsored stage plays

Coalition to hold debate on federal character, restructuring, presidential power rotation

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he Igbo Leadership Development Foundation (ILDF) is organizing a national conversation and debate for national unity centred on federal character, restructuring and rotation of presidential power in Nigeria.

ILDF is collaborating with Gregory University Uturu, Abia State, World Igbo Summit Group, Centre for International Advanced and Professional Studies (an affiliate of Cambridge University UK), and New Generation Leadership Development Foundation in this regard.

The proposed national conversation, scheduled to hold March 5 at Sheraton Hotel and Towers, Abuja, will be chaired by Yakubu Gowon, a former head of state. Several regional

and national leaders are scheduled as speakers at the event.

The coalition hopes that the national conversation would engender national unity through genuine reconciliation as well as usher in social amity in the polity, it said in a statement signed

by Godwin Udibe and Law Mefor, its chairman and director of public affairs, respectively.

The organisers of the national dialogue further stated that they are commencing their national peace initiative with the national debate and strongly believe the project would soon garner the needed national attention and international visibility and acceptability, and ultimately help enthrone social justice, unity and development in the country.

PUBLIC NOTICE EMMANUELS FOUNDATION FOR THE OLD AND AGED The General Public is hereby informed that the above-named organisation has applied to the Corporate Affairs Commission, Abuja for Registration under “Part C” of the Companies and Allied Matters Act of 1990.

THE TRUSTEES ARE: 1. Barr. Kenna Nzekwu 2. Mrs Chibundu Ebube 3. Mr Olise Nzekwu 3. Mr Ikechukwu Chibundu 4. Mr Chidi Amadi 5. Barr. Oluchukwu Nwosu AIMS AND OBJECTIVES: 1. To cater to and provide for the needs of the old/aged in rural and urban communities within Nigeria.

Any objections to the registration should be forwarded to the Registrar-General, Corporate Affairs Commission, Plot 420, Tigris Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja within 28 days of this publication.

*SIGNED: SECRETARY*

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providing audiences with an opportunity to catch a glimpse of critical moments in the nation’s history or celebrate Nigerian literary giants.

Speaking at the event, Kehinde Kadiri, portfolio manager, non-alcoholic, Nigerian Breweries, said: “Our movie industry has consistently evolved and proven itself to be a critical factor in changing the narrative of the continent. Amstel Malta is committed to giving movie fans and enthusiasts exclusive access to have front row seats at the industry’s biggest night while inspiring them to be their best.”

The sponsor’s cocktail is a pre-event of the award show where sponsors are celebrated, nominees are presented with certificates of nomination, and guests get the opportunity to netw ork w ithin and across their industries.

The AMVCAs is scheduled to hold March 14, 2020, at the Eko Convention Centre, Victoria Island, Lagos.

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news Oil falls to 3-year low as Nigeria’s...

Continued from page 1

spending and the economy

Rumen Radev (l), president of Bulgaria, and Adesola Adeduntan, chief executive officer, First Bank of Nigeria Limited, following a courtesy visit

by Adeduntan to the Bulgarian president at Sofia, Bulgaria, yesterday.

More worries for DisCos as FG...

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ment is trying to take the

bull by the horn by trying to find out what investments these DisCos made towards this privatisation. The first suspicion is that they have made no substantial investment and we will take it when we get all the solutions,” Shaibu said.

Ayodele Oni, energy lawyer at Bloomfield law practice, said the move by Federal Government is legal and that the Companies and Allied Matters Act (CAMA) requires public companies like the DisCos to have annual audited account which must be publicly available.

“It’s not outside the contractual, legal and regulatory framework for government to order forensic audits of DisCos for further checks and balance provided it’s done by experts without political interference,” Oni told BusinessDay. Oni however, raised questions or doubt about government fulfilling its own contractual obligation or promises it made to the DisCos in terms of improving the

grids, or putting structures in place for tariff that are costreflective.

“If DisCos’ lack of performance is based on government not fulfilling its own side of the contract obligation, then they might have a case if they choose to go to court,” Oni said.

Shaibu at the briefing said state governments were also directed to furnish the NEC committee headed by Kaduna State Governor Nasir el-Rufai the total investments of each state before the end of March.

“The committee requested for additional two months to enable it to complete its assignment,” Shaibu said. “Of course, nobody is happy with the DisCos’ performance and we have a committee chaired by the governor of Kaduna state and they have done very beautiful job.”

Already, the NEC committee headed by El-Rufai has placed advertisements in about five newspapers and has asked the general public to give it information on the performance of the DisCos and also investments made by individuals and the private

sector.

BusinessDay gathered that Association of Nigeria Electricity Distributors (ANED), an umbrella body of the DisCos, which is currently engaged in negotiations with the Federal Government, is requesting $10 billion within the next five years.

All efforts to get reactions from Sunday Oduntan, ANED’s executive director of research and advocacy, proved abortive as calls and messages were not responded to as at the time of filing this report.

But the Nigerian public and especially the business community are not excited about the power supply situation. Some have called for a holistic reform of the sector.

“Power supply has consistently lagged behind the pace of economic activities and population growth,” Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), said.

“This development impacted negatively on investment over the past few decades with increased expenditure on diesel and petrol by enterprises. This also comes with the consequences of declining productivity and

competitiveness,” Yusuf said.

The new move on forensic audit is coming just one week after Nigeria’s Minister of Power Saleh Mamman threatened to dump the DisCos over epileptic power supply, blaming current situation on their inability to distribute stranded power.

“Nigeria currently generates 13,000MW of electricity, it transmits 7,000MW to DisCos while the distribution companies can only distribute 3,000MW to end users,” Sale told reporters. But responding to the claim, ANED argued that the statement by Saleh was untrue, saying the quantum of power that DisCos supply to their customers is based on the allocation they get from the TCN. It said TCN wheels a mere 4,303MW supplied to consumers.

The association restated that its members have till date not received a kobo from the Federal Government as subsidy. It reminded the government that even though DisCos’ liabilities to Nigerian Electricity Supply Industry (NESI) is N81 billion, ministries, departments and agencies (MDAs) owe them to the tune of N100 billion.

Hope for farmers, agric productivity... Soft drinks makers compete for...

Continued from page 2

using their mobile phones,” said Prince S. J. Samuel, president, Origin Group.

Nigeria had only 30,000 tractors as at 2003, according to the Food and Agricultural Organisation (FAO), far below countries like Serbia & Montenegro with 400,000, Pakistan with 320,000, and Uzbekistan with 170,000 tractors.

On a per capita basis, Nigeria ranked 132nd out of the 188 countries worldwide measured by FAO/United Nations in terms of the number of tractors in the country.

Africa’s largest economy currently adds 1,000 new tractors each year, Audu

Ogbeh, immediate past minister of agriculture, said. But this is considered grossly insufficient to replace the ageing, worn-out, and broken-down tractors.

“We hope to address the issues around mechanisation in Nigeria and Africa at large,” Samuel said.

He said the firm already has over 1,000 tractors on board and would increase the number as demand rises.

The firm has also established tractor service centres across the six geo-political zones for servicing and maintenance and it plans to replicate it across every local government area of the country.

Continued from page 2

stores, we noticed that there was a high demand for flavoured drinks,” Ahmed said.

Nigeria’s fast-growing population brings with it a continuing demand for soft drinks, especially as the climate is quite hot. The country ranked fourth globally in the volume of soft drink sales recorded in 2016, according to Euromonitor International, a global market intelligence publisher.

Despite the huge popularity of the juice and drink market, the unique tasting appeals of carbonated soft drinks and their array of flavours have always been a

strength other drinks cannot match.

“The soft drinks companies are in the phase of ‘let us spoil the consumers by giving them various alternatives’. At every point in time, companies try to ensure that consumers get what suits them at that point in time,” Abiola Gbemisola, a consumer analyst at Lagos-based investment firm, Chapel Hill Denham, said.

Gbemisola noted that the new development is not the case that consumption or purchasing power has improved but a way to ensure that consumers don’t move to their other competitors because of those flavours.

bear the brunt.

“Nigeria is vulnerable to another recession,” said Muda Yusuf, director-general of the Lagos Chamber of Commerce and Industry, a private sector advocacy group with over 2,000 member companies.

“We will continue to catch a cold when oil sneezes because we have made little progress in diversifying the economy despite 2016’s warnings,” Yusuf said.

“We need to take efforts to diversify the economy more seriously and implement policies that help us get private capital because it’s the way to go,” he said.

Nigeria has been here before. In 2016, oil prices bottomed, pushing the economy into a first recession in 25 years. The government promised to diversify the economy and reduce its dependence on oil. But official data show that not much progress has been made with oil exports as a percentage of total exports still accounting for a dominant share.

In the first nine months of 2019, crude oil exports as a percentage of exports came to 76 percent, according to the National Bureau of Statistics.

“A $51 oil price is uncomforting for Nigeria’s fiscal revenues and macro stability and is a scenario we did not plan for,” said Bismarck Rewane, a leading economist and CEO of economic advisory firm, Financial Derivatives Company.

“The bigger problem is

what happens when OPEC asks Nigeria to cut oil output at the meeting in March,” Rewane told BusinessDay. Thanks to a near 5 percent surge in oil in 2019, the Nigerian economy grew at its fastest pace in three years, according to GDP data by the NBS. Oil prices are taking a hit from the spread of coronavirus, a pandemic that erupted in China, the world’s largest consumer of crude oil.

The number of new coronavirus infections outside the country now exceeds new Chinese cases.

The spread of the virus to large economies including South Korea, Japan and Italy has raised concerns that growth in fuel demand will be limited. Consultants Facts Global Energy forecasts oil demand would grow by 60,000 barrels per day in 2020, a level it called “practically zero”, due to the outbreak.

U.S. West Texas Intermediate fell more than 5.8 percent to a session low of $45.88, its lowest level since Jan. 2019, before paring some of its losses.

WTI is down more than 12 percent for the week, and is 29 percent below its 52-week high level.

While lower oil prices can be good for consumers at the pump, it can be a warning sign for the global economy, since softer demand can mean a slowdown in economic growth.

As oil continues to slide, all eyes are now on next week’s OPEC+ meeting, where the cartel and its allies will convene in Vienna from March 5-6.

In capping estimated billing, NERC...

Continued from page 2

has an obligation to protect consumers.

“The dilemma is that whilst NERC acknowledges that there are issues with the implementation of the MAP, they still need to protect consumers,” said Dolapo Kukoyi, energy lawyer and partner at Lagos-based law firm, Detail Commercial Solicitors.

According to data from the regulator, electricity customer population has grown from 5 million in 2012 to over 10 million as at December 2019 without about 52 percent of customers being invoiced on the basis of estimated billing.

“The legacy situation at acquisition of majority stake in the distribution assets from government was that the majority of customers were unmetered and there has been little change in the situation as the deployment of meters

by DisCos has been outpaced by the growth in customer numbers in the Nigerian Electricity Supply Industry,” NERC said its order.

The blame for this situation has revolved between a regulator unwilling to hold the regulated to account and op-

erators who have been accused of short-changing the people.

Estimated billing in the NESI is an example of how an aberration can morph into the norm. The 2007 Meter Reading, Cash Collections and Credit Management regulation enacted by NERC was created to enable DisCos to bill a customer when they are unable to gain access to his premises.

Now it is the only way DisCos want to bill their customers.

Five years after power assets were handed over to core investors, estimated billing is now the most vexing issue in the sector representing over 55 percent of all customer complaints.

Prior to MAP, NERC created a credit scheme for meter payment but DisCos soon scuttled the plan. Unable to compel the DisCos to fulfil the requirements of their contracts, largely because it had failed to allow market price for electricity consumed, NERC proposed a Meter Asset Provider Regulation, which allows third party financiers to provide meter for a fee to consumers.

That too is fast turning out to be a disaster.

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Sports Tension mounts as Real Madrid battle Barcelona in El Clasico … Everton vs Man United headlines Premier League fixtures Anthony Nlebem

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here can be no other choice for the top LaLiga match this weekend than El Clasico between Real Madrid and Barcelona taking place at the Estadio Santiago Bernabeu on the night of Sunday March 1.

Sunday’s match promises to be a pretty key battle with regards to the title race. Barca head to the Spanish capital two points clear of Los Blancos after the weekend’s results.

This is the world’s biggest club football game, putting together two age- old rivals in a clash which will go a long way in deciding the destination of the title. The two teams are well out ahead at the top of the log in a battle for domestic glory, with Barcelona looking to defend their hard-won championship, while Real are hoping to meet the number one goal of manager Zinedine Zidane, who has targeted a return to La Liga glory as the first stepping stone in getting Los

Blancos back to their status as the world’s most feared team.

Rodrygo banned, Hazard out Real Madrid will not be able to call upon Rodrygo for Sunday’s El Clasico with Barcelona after the forward was sent off playing for Castilla.

The Brazilian was in line for a recall to Zinedine Zidane’s first team with Eden Hazard injured with a broken ankle, reports Goal. Yet Rodrygo is now suspended after picking up a bizarre red card playing for the B side.

The 19-year-old scored a final solo goal in their 2-0 win over SS Reyes, but was then given a second yellow card for goading the goalkeeper.

With Hazard expected to be sidelined for three to four months, Zidane had personally reassured Rodrygo he was part of his plans - having not been included in the match day squad for the last three La Liga games.

Pique a doubt Barcelona defender Gerard Pique has not been ruled out of Sunday’s El Clasico against

Real Madrid despite sustaining an ankle injury at Napoli.

The central defender limped out of Tuesday night’s 1-1 draw at the Stadio San Paolo after landing awkwardly on his ankle, with fears that he would not be able to make Sunday’s crucial clash in the Spain title race.

El Clasico Key Stats Real Madrid have not won any of their last 7 LaLiga games against Barcelona (D3 L4).

Barcelona have won their last 4 El Clasicos at Santiago Bernabéu in LaLiga.

Barcelona have only won one of their last 4 away LaLiga games, the last one, 3-2 vs Real Betis (D2 L1).

Barcelona (6151) have scored more goals than the Madrilenian side (6150) for the first time since December 1962 (1932 goals Barcelona and 1930 Real Madrid).

Barcelona’s Quique Setién

has won just 2 of his 8 managerial LaLiga games against Real Madrid (D2 L4), however both wins did come against Zinédine Zidane, becoming the only manager to win twice against him in the competition (two).

Zidane has lost just 2 of his 8 managerial games against Barcelona in all competitions (W3 D3), with both defeats coming at the Santiago Bernabéu in LaLiga.

The headline fixture for this weekend’s Premier League action comes from Goodison Park on Sunday as Everton play host to Manchester United. This is a clash between two teams with European club ambitions for next season.

The Toffees have made major strides since Carlo Ancelotti was appointed as their permanent manager, with fears of being sucked into a relegation scrap replaced with hopes that they could feature in the UEFA Europa League or – at a stretch – perhaps even the UEFA Champions League next season.

The ban handed down to Manchester City from UEFA earlier this month has opened up the possibilities for many clubs in the mid-table.

Manchester United, meanwhile, continue to struggle for consistency, though the arrival of Bruno Fernandes in midfield has helped to liven up their attacking play, while Nigerian striker Odion Ighalo provides an interesting alternative in attack.

Coronavirus: Tokyo Olympic Games likely to be cancelled

Champions League absence proves costly for Man Utd

… As Japan scraps sports events for two weeks

… Earnings down 19% to $217m … Broadcasting revenue fall 31% to $93m

Anthony Nlebem

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apanese Prime Minister Shinzo Abe ha scrapped sports and cultural events for two weeks in the battle to stem a Coronavirus contagion amid mounting concerns the 2020 Tokyo Olympics could be cancelled.

Abe’s call came as Tokyo’s baseball league said it would hold games without spectators until March 15. Two businesses in central Tokyo confirmed infections a day after the government told firms to get staff to work from home or stagger commutes.

The northern island of Hokkaido, with 38 cases the region most affected outside Tokyo, reported another virus death, taking Japan’s total to six, including four from a cruise liner. Hokkaido will close some schools for a few days.

“Taking into account that the next one to two weeks are extremely important in stop-

ping the spread of infection, the government considers there to be a large risk of transmission at sports, cultural events and large gatherings of people,” Abe said in parliament.

Japan had close to 170 cases of infections from the flu-like virus, separate from the 691 reported from a cruise ship quarantined off Tokyo this month.

The disease that originated in China’s central city of Wuhan late last year has spread rapidly, infecting about 80,000 people globally and killing more than 2,700, the vast majority in mainland China.

Japan has shifted strategy in fighting the contagion, seeking to slow its spread and minimise the number of deaths.

The minister in charge of the Olympics sought to quell fears the event could be cancelled.

International Olympic Committee (IOC) member Dick Pound said the Games were more likely to be cancelled than postponed or moved if the virus threat forced a schedule change, the Associated Press said, with a decision needed

by May. “The IOC is preparing for the Tokyo games as scheduled,” Minister Seiko Hashimoto said in parliament, when asked about Pound’s comment. “We will continue our preparations so that the IOC can make sound decisions.” www.businessday.ng

Last week Tokyo postponed training for Olympic volunteers, and on Wednesday, Toshiro Muto, chief executive of the organising committee, said it would scale back the torch relay to limit spread of the virus.

Japan’s professional baseball organization said it would hold all matches scheduled until March 15 without spectators.

Separately the national sumo association told Reuters a board meeting on March 1 would discuss whether to proceed with a spring tournament due to start in Osaka on March 8. Japan’s professional soccer league has already called off all domestic games through the first half of March.

The shadow over the Olympics grew as advertising giant Dentsu Group Inc, which is deeply involved in the Games, told employees to work at home after an infection at its Tokyo headquarters.

Its shares hit a seven-year low amid the Games concerns.

Property developer Mitsubishi Estate Co said one of its skyscrapers in the Marunouchi business district had been visited by an infected person.

Three infections were confirmed on Wednesday in Hokkaido, while checks on an elderly person who died the previous day in the city of Hakodate confirmed a fourth, Governor Naomichi Suzuki told a news conference.

Anthony Nlebem

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s Manchester United chase a return to the European Champions League, Executive Vice-Chairman Ed Woodward said after financial results were dented by the team’s absence from this season’s tournament.

Woodward has been backing United manager Ole Gunnar Solskjaer to forge a team that mixes top talent from around the world with young players from its academy.

“We are pushing for a strong finish in the Premier League, the Europa League and the FA Cup as we enter the final third of the season,” Woodward said in a statement.

“The foundation for delivering the long-term success that we are all working towards is in place as we implement our plan and our footballing vision with Ole.” United sit fifth in the Premier League table, three points behind fourth-placed Chelsea after beating Watford 3-0 on Sunday with goals from new signing Bruno Fernandes, academy graduate Mason Greenwood and French striker Anthony Martial.

The Premier League’s top four teams qualify for next season’s Champions League while the fifth and sixth-placed teams

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go into the Europa League.

Fernandes, who signed from Sporting Lisbon for an initial fee of 55 million euros ($59.6 million), was United’s only signing with a transfer fee in January and Woodward said the club would have the same “disciplined approach” in the summer window.

Local rivals Manchester City, who are second in the Premier League, have been banned from competing in European competitions for two seasons by UEFA. That has raised the prospect that fifth place in the Premier League might be enough to secure Champions League qualification, though City are expected to appeal against the ban.

Woodward declined to comment on the specifics of the @Businessdayng

City case but said he believed that Financial Fair Play (FFP) rules were helping to ensure that clubs operate within their means.

Another Champions League miss for United would be costly for the 20-time English champions. They have been eclipsed by neighbours City in recent years and now face the prospect of bitter rivals Liverpool clinching a 19th domestic title.

Revenue and profit took a dive in the second quarter, hit by the loss of Champions League broadcasting revenue, with core earnings falling 31% to 72 million pounds ($93 million) on revenue down 19% at 168 million pounds ($217 million).

United’s financial guidance for 2019-20 was unchanged.

Friday 28 February 2020

BUSINESS DAY

news Telcos bemoan drop calls challenges, poor service quality …NCC says working to ensure national critical infrastructure bill is passed to criminalise vandals

Jumoke Akiyode-Lawanson

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elecoms network service providers in Nigeria are urging the Federal Government to find lasting solution to issues of fibre cuts, theft, network congestion, community access denial and other issues. These issues, they say, are resulting to very poor voice and data service quality for subscribers and subsequently causing huge revenue losses to operators.

Airtel said over 1,022 fibre cuts had occurred, disrupting its network just between July 2019 and February 2020, saying although they work with the Nigerian Civil Defence to arrest vandals, there had not been any successful prosecution to deter criminals.

Speaking during a media roundtable held at the Airtel Nigeria head office in Lagos, Emeka Oparah, the director of corporate communications and CSR, said, “There are so many issues that we encounter, and it is

unreasonable to think that we just sit down and do nothing about it because we are the ones that feel the hurt, as we are losing money by the minute. There was a time that one of our base stations was submerged in flood and although it wasn’t our fault, we had to quickly respond to that because customers would not want to hear stories.”

Oparah said declaration of telecoms infrastructure as critical national infrastructure by the Federal Government would help safeguard telecoms infrastructure, create better user experience and reduce revenue losses to telcos.

According to Oparah, 405 cases of the fibre cuts were as a result of road rehabilitation activities, and 617 cases were due to vandalism. He urged the federal and state governments to hasten the approval process for fibre development as well as quicken the Environmental Impact Analysis (EIA) approval process, saying

these actions would help solve the problem of network congestion and network failure.

Also speaking, Adedoyin Adeola, vice president, network operations, Airtel Nigeria, said, “Telecoms operators are plagued with so many problems ranging from security issues to illegal signal boosters. While a network provider is working hard to restore a fibre cut due to vandals or activities of road construction workers, it also has to deal with illegal signal boosters which interfere with network quality and operated by unlicensed operators.

“Operators also have to wait endlessly for Right of Way approvals, EIA approvals and other approvals. Installations by telcos are also a huge target for thieves who cart away with inverter batteries, generators diesel, in addition to other daily and long standing problems of multiple taxation and community issues.”

FG commends Obaseki as over 5,000 Edo residents get jobs, micro credit ... minister says Obaseki destined to win

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n furtherance of the Governor Godwin Obasekiled administration’s job creation and empowerment drive, over 5,000 Edo residents, including youths and women, have benefited from the Federal Government’s rural area engagement programme, tagged Special Public Works (SPW).

The pilot phase of the programme was flagged off in Benin City, the Edo State capital, by the minister of state for labour and employment, Festus Keyamo, and Nasir Argungu, director-general, National Directorate of Employment (NDE).

The pilot phase includes the flag-off of the 5,000 transient jobs for women and youths

under the Presidency’s pilot SPW programme, disbursement of Micro Enterprise Enhancement Scheme (MEES) loan to 1,069 beneficiaries and resettlement items to 41 persons in the state.

Commending the governor’s developmental achievements in the state, Keyamo described Governor Obaseki as a man that God had destined to win, adding that Edo State was chosen among the eight states to benefit from the Federal Government Special Public Work programme because of the special interest of President Muhammadu Buhari in the governor.

Also, Argungu described Obaseki as a performing governor who had the love of his

people at heart, noting, “We are dealing with a serious governor and somebody who has the love of his people at heart; and that is the reason they call him ‘Wake and See’.

“Whenever we are in Edo State, issues of religion, tribe and age do not come in and because of the performance of the governor, we like to dance whenever we are in the state.”

The Special Public Works in Rural Areas Programme is a Federal Government Strategy designed to mitigate lack of job opportunities in the rural areas through short-term engagement of unemployed persons in various Local Government Areas for a period of three months.

FG tells investors to explore opportunities in $96m Barite mineral market HARRISON EDEH, Abuja

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ederal Government has commenced engagement with stakeholders in Barite mineral resources market, saying government’s reforms in the mining sector have huge incentives for would-be investors on $96 million local Barite market.

Olamilekan Adegbite, minister of mines and steel development, speaking at the Barite stakeholder’s forum, told stakeholders and would-be investors that the government’s reforms in mineral sub-sector were geared towards building a globally competitive economy.

He said the ministry had facilitated the development of an industrial mineral road map aimed at optimising Nigeria’s industrial minerals to meet the standards of the manufacturing, industrial and construc-

tion industry and to reduce import dependency.

The Federal Government in order to achieve its objective on barite investment has mapped out a development at rate towards creating a sustainable industry in Nigeria to support, regulate and monitor stakeholders along barite value chain, the minister said.

He said this process would assist local companies with proven reserves that meet the industry standards to develop capacity and close the demand-supply gap that existed in the country currently in short term.

He noted that the long-term plan was to place a ban on the importation of barite once the local market was satisfied and export barite to other African countries where oil and gas drilling activities were taking place.

According to Adegbite,”

Evidence from our recent demand-gap analysis shows that out of the total value of Nigeria’s industrial mineral imports in 2016, Barite represented 3.6%”.

Nigeria spends millions of hard earned dollars every year importing barite, a mineral it is abundantly endowed with in the Northern part of the country, he said, stating that with each import of barite we are shipping thousands of jobs from our country to other countries.

Meanwhile, the consultant on barite development, Dapo Laguju, in a presentation titles – ‘An overview on the Accelerated Development of the Barite Industry in Nigeria’ said the industry had been operated largely by artisan’ miners, and there had been the challenge of poor data and access to market with a lot of challenges, as the packaging was not standardised.

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news

Nigeria’s non-oil tax averaged 4% of national income in 5yrs – Agusto HOPE MOSES-ASHIKE

… Ghana 16%, Kenya 18%, South Africa 24%

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ter oil: How prepared are we?’, delivered at 17th annual Aret Adams Memorial Lecture in Lagos, Agusto said the rate of VAT in Kenya and Ghana is 16% and 15%, respectively, in Nigeria it is 7.5%. The top rate of personal income tax in Kenya and Ghana is 30% and 25%, respectively, in Nigeria it is 24%. In Kenya, you get to the top rate when taxable income exceeds KSH564,709 ($5,600), in Ghana it is GHC240,000 ($45,300) and in Nigeria it is N3.2 million ($8,900).

“This means that with the exception of VAT, tax rates are generally same in these three countries. Why then does government collect only 4% in Nigeria compared to 16% and 18% in Ghana and Kenya, respectively? In my opinion, it is largely due to poor tax compliance in Nigeria,” Agusto said.

He said if Nigeria was able to increase non-oil tax revenue to 15% of National

iger ia’s non-oil taxes collected by all tiers of government in the past five years averaged 4 percent of national income, according to Bode Agusto, former director-general, Budget Office.

In Angola, it was 8 percent, Ghana 16 percent, Kenya 18 percent, South Africa 24 percent, and in the Organisation for Economic Cooperation and Development (OECD) countries 32 percent. The World Bank says a nation cannot grow meaningfully if tax revenue is less than 15% of national income.

The principal taxes in these countries are corporation tax, personal income tax and Value Added Tax (VAT).

Corporation tax rate in Nigeria is 32 percent, while in Kenya and Ghana it is 30% and 25%, respectively.

In his paper presentation theme, ‘Nigeria’s economy af-

income, it means that the Africa’s largest economy will generate an additional N14.4 trillion ($40bn) in revenues every year.

It also means that total Government revenue will be 20% of national income or N28.8 trillion ($80bn) per annum compared to the current figure of N10.4 trillion ($28bn).

In January 2020, Nigeria’s President Muhammadu Buhari signed the Finance Bill 2019 into law, which was welcomed by Nigerians as the Act amends several portions of the Nigerian tax laws.

How do we raise the level of non-oil tax revenue?

Agusto said first, reform the tax laws. Focus on Personal Income Tax (PIT), VAT and Companies’ Income Tax (CIT) and make tax laws simpler. Increase the top rate of PIT to at least 30%, increase the rate of VAT to 10% and reduce the rate of CIT to 20%

but levy an additional tax of 20% on “Super Profits”. Super profits shall be profit in excess of a target return on equity for shareholders. In today’s terms that would be return on equity in excess of 30%.

Government should also abrogate all the numerous other levies that, in any case, do not generate significant revenues.

“The second and more important leg of our tax reform is for the Government to show willingness to enforce tax laws. How should Government show this willingness?

I believe the Government should focus on PIT, forgive all past sins and thus look forward and not backwards.

The next step is for President to make his PIT returns public annually, then make it obligatory for all those want to work for him to do the same. He should then look at all of us in the face and say “Woe betides you if you don’t comply going forward!”

Reps accuse FIRS of gross misconduct ... give SON last chance to appear or risk arrest James Kwen, Abuja

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ouse of Representatives on Thursday grilled the executive chairman of the Federal Inland Revenue Commission (FIRS), Mohammed Nami, over late and nonsubmission of the audited accounts of the Agency to the Accountant General of the Federation, describing the action as a gross misconduct.

Nami, who appeared before the Public Accounts Committee of the House, chaired by Oluwole Oke in Abuja at the resumed public hearing on refusal of Non-Treasury Funded and Partially Funded Agencies to render their Audited Accounts covering the period 2014 till date to the Auditor-General of the Federation, said he newly assumed office in December last and pleaded for time to get the outstanding ones ready for submission.

The Committee, which frowned at the statement of the FIRS boss, wondered why such an all-important Revenue Agency would not have an up to date audited accounts even being the nation’s official revenue collector.

The chairman of the Committee said, “this is very strange, if the FIRS cannot produce an up to date audited accounts of its operations, how does it wants the Executive arm of the government to prepare the Medium Time Expenditure Frame Work, to the legislature to determine the annual financial budget?

“Funny enough, the officials of the same Agency will be seen moving around to seal off premises of business outfits over non-payment of their taxes “We are aware that the Executive Chairman of the Agency assumed office in December last year but that should not an excuse for the Agency to have an up to date audited accounts for accountability”.

The Committee therefore, resolved to place the Agency on a full scale status enquiry to probe into its operations to be able make amendments where necessary for greater efficiency.

Oke, who said the exercise was not for witch hunting, disclosed that this became necessary to unravel what had happened and correct those identified lapses for the nation to forge ahead.

He stated that the Agency was also being placed on status enquiry because of the attitudes of some of the Ministries, Departments and Agencies, MDAs, being investigated which had been giving all sort of excuses for not having up to date audited accounts as required by the Constitution.

But the Nami, who pleaded to the Committee to overlook the mistakes, promised that the Agency under his watch would make necessarily correction and do the needful instantly.

Similarly, the Committee gave the Management of the Standard Organisation of Nigeria (SON) the last chance to appear before it or be arrested and face criminal charges.

Buhari’s interim management committee for NDDC is illegal - Falana ... says privatisation of public corporations retards Nigerian development KORETIMI AKINTUNDE, Akure

L-R: Tolulope Akande-Sadipe, chairperson, House of Representatives Committee on Diaspora; Sylvanus Nsofor, Nigerian ambassador to the United States; Adrienne Jones, speaker, Maryland House of Delegates; Abike Dabiri-Erewa, chairperson, Nigerians in Diaspora Commission, and Ronke Macaulay, Nigerian filmmaker, at a Pan-Africanism dialogue held at the Maryland General Assembly, United States.

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SMW2020: Despite challenges, Nigeria will not relent in preparing for 5G Jumoke Akiyode-Lawanson

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he Nigerian Communications Commission (NCC) has said Nigeria will continue to press on and prepare for the eventual commercial launch of fifth generation (5G) networks. This is in order to give us competitive advantage and help match up with other developed countries in terms of digitalisation and use of future technologies for a better economy.

The telecoms regulator, during its session on ‘5G deployment in Nigeria: The social economic benefits and challenges’ at the ongoing

Social Media Week in Lagos, said although Nigeria was burdened with challenges, 5G capabilities were endless and the country cannot afford to miss out on future technologies like driverless cars, remote surgery, IoT, etc., that the ultra-low latency of 5G would allow.

“The issue of inconsistent power supply and inadequate fibre infrastructure will definitely be a challenge, however, we are working to solve issues that we can to make sure Nigeria doesn’t lag behind other countries, hence the reason why we have already test launched 5G none commercially,” Wakil Bako, director, technical standards and

network integrity, NCC, said.

Bako said last year, six spectrums were identified for 5G, so we have enough frequency but none of these were readily available as they had to be freed for 5G use, noting, “We have to do a replanning of those spectrum frequencies.”

Also speaking on the panel on Thursday, Keneth Uzoekwe, assistant director, spectrum administration department, NCC, who represented Augustine Nwaulune, the director, said it was important for Nigeria to face these challenges head-on right now to enjoy the future benefits of 5G. Something urgent needs to be done to fix the power sector,

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otherwise 5G commercialisation in Nigeria is threatened, the NCC said.

Bako said 5G, which is also known as IMT 2020, had been designed to improve broadband speed and responses and would definitely change ICT businesses, encourage entrepreneurship, e-learning, e-health, create smarter cities and disrupt the transport system as well as other important economic sectors.

“While NCC can and will address the fibre infrastructure gap, power generation and distribution is not within our purview, but we are working with the relevant agencies to see what can be done,” he said.

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Senior Advocate of Nigeria and human rights lawyer, Femi Falana, has declared as illegal and unknown to Nigerian law, the setting up of an Interim Management Committee for the Niger Delta Development Commission (NDDC) by President Muhammadu Buhari.

Falan, while explaining that such Interim Committee was unknown to the Act of Parliament that established Niger Delta Development Commission (NDDC Act), threatened that Federal Government may soon be subjected to litigation if it doesn’t stop successive appointments of the Interim Management Committee for Niger Delta Development Commission.

Recall that President Muhammadu Buhari-led Federal Government has so far appointed five successive interim management committees for the Niger Delta Development Commission in a space of one year, making an alibi of large-scale corruption and corrupt practices within the rank and file of the Development Commission dedicated for the develop@Businessdayng

ment of oil-rich Niger Delta region of the country.

Speaking at a lecture held in Akure, Ondo State, one of the states that make up Niger Delta region, to mark third year anniversary of Governor Rotimi Akeredolu on Thursday, Falana also challenged the Nigeria Governors’ Forum to be prepared to fight a legal battle against over concentration of monthly allocations in Abuja and senseless privatisation of critical public utilities and corporations.

“We have invested so much in the energy sector and power but today we are suffering.

Where are we today? Our government have sold generated companies and a Minister under former President Goodluck Jonathan administration said we sold them to our friends and thereafter we start having problems”, he said.

The SAN said the major cause of the abject poverty and underdevelopment in Nigeria was the privatisation of the public corporations and industries meant to offer essential services for the populace and provide employment opportunities for the youths, and if trend is not reversed, then Nigeria may be faced with more underdevelopment.

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news

WHO warns on swift action as 7 new countries report coronavirus cases in 24hrs Godsgift Onyedinefu, Abuja

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he COVID-19 is on its way to becoming a pandemic after seven new countries reported cases for the first time over the last 24 hours, Tedros Ghebreyesus, director-general, World Health Organisation (WHO), has warned while calling on nations to act swiftly.

Ghebreyesus, while addressing a press conference on Thursday in Geneva, stated that the Coronavirus, which is now in 44 countries, had killed more than 2,700 people, and recorded more than 80,000 cases and continued to rise.

“Every country must be ready for its first case,” Ghebreyesus stated, while warning that member countries need to prepare for their first COVID-19 cases.

“No country should assume it won’t get cases. That could be a fatal mistake. This virus does

not respect borders,” he warned.

Ghebreyesus said the WHO was greatly concerned right now about developments in the rest of the world, not in China, where cases had slowed in recent days.

Brazil, Georgia, Greece, North Macedonia, Norway, Pakistan and Romania reported coronavirus cases over the last day, Ghebreyesus said.

The rapid spread of the novel coronavirus raised the spectre of a global pandemic as governments ramped up their emergency responses and financial markets slumped again Thursday, despite signs that the outbreak may be easing in China.

The United States markets fell sharply on Thursday, after authorities confirmed the first coronavirus case which they could not link to foreign travel – even though President Trump insists his country is ready to combat the spread of the deadly disease.

Japan has shut down schools beginning next Monday till April as Australia’s Prime Minister warned of an inevitable pandemic.

Elsewhere, officials cancelled or postponed events including religious pilgrimages in Saudi Arabia, as doubts grow over Tokyo’s plans to host the 2020 Olympics.

There were earlier reports that the Spring meetings of the International Monetary Fund and World Bank scheduled for April may be postponed or held virtually amid growing concerns of the coronavirus outbreak.

The WHO DG had in a press conference earlier on Wednesday disclosed that the cases reported outside China exceeded the number of new cases in China for the first time.

Ghebreyesus also described the sudden increase of cases in Italy, the Islamic Republic of Iran and the Republic of Korea as deeply concerning.

He noted that the increase in cases outside China on Tuesday, had prompted some media and politicians to push for a pandemic to be declared.

“We should not be too eager to declare a pandemic without a careful and clear-minded analysis of the facts. WHO has already declared a public health emergency of international concern, our highest level of alarm.

“But this is no time for complacency. This is a time for continued vigilance,” he said.

“Using the word pandemic carelessly has no tangible benefit, but it does have significant risk in terms of amplifying unnecessary and unjustified fear and stigma, and paralyzing systems. It may also signal that we can no longer contain the virus, which is not true. We are in a fight that can be won if we do the right things,” Ghebreyesus said while noting that the outbreak will be declared a pandemic if situation arises.

NEC rules out regional security outfits, set to implement “RUGA” Tony Ailemen, Abuja

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he National Economic Council (NEC), a body comprising operatives of the Federal Government and governments of the 36 states of the federation, Thursday ruled out the establishment of regional security outfits, saying it runs contrary to provisions of the 1999 Nigeria Constitution as amended.

Governor Dave Umahi of Ebonyi State, while fielding questions from State House correspondents after the 102nd NEC meeting presided over by Vice President Yemi Osinbajo, noted however that the states were at liberty to make their security arrangements.

This is as the Council said it was now set for the implementation of the controversial National Livestock Transformation Plan (NLTP) Programme, otherwise known as “RUGA.” Umahi, who recognised security as “issue that affects the length and breadth of the country”, added that “we expect the issue should be on the front burner”.

He disclosed that the states had continued to brainstorm with the security agencies, among themselves and the federal government on this issue of security in various places in the country.

The clarification is coming against the backdrop of agitation for regional security outfits including the recent establishment of the “ Amotekun” in the southwest, “Shege Ka Fasa” in the North, “Ogbu N’igwe” in the South East, and similar moves in the North Central.

“When people continue to mention regional security, as chairman South East governors forum, I said there will be nothing like regional security but there can be something like regional cooperation, state cooperation.

“Because, security is statebased. I watched the Lagos State governor said Amotekun law is

state-based because when you talk of regional security, you are talking of something higher than state police.

“You are looking at one central command, one law, one office, and one command and there can’t be anything like that with the present constitution and every governor swore to uphold the tenets of the constitution.

“I think the governors are doing quite a lot, we have in our various states private security outfit be it in herdsmen, kidnappings and so on and so forth. I think the governors are rising to the challenges of insecurity in the country,” he said.

Umahi also revealed that the NEC is now set for the implementation of the controversial National Livestock Transformation Plan (NLTP) Programme.

The decision to commence implementation is the direct result of an extensive process involving engagements with stakeholders and a detailed analysis of opinions.

“After the initial decisions were made by the state governors, the focus of the initiative shifted to the implementation.

He noted that the outline of the established engagement process includes: “Letter of intent and counterpart funding, state livestock transformation office, and community engagements”.

He disclosed that NEC had completed a preliminary analysis of survey results, which includes data capturing analysis, such as analysis of enumerated data of five gazetted grazing reserves now in Adamawa State.

“We also have two gazetted reserves data obtained in Plateau and in Nasarawa, we have four gazetted reserves, so data is being collected and analysed.

“We had prayers to Council, one of which was that Council should consider and approve that the three states should submit their detailed plans for the 80% funding of the total www.businessday.ng

cost by the federal government, as stipulated in the National Livestock Transformation Plan and of course the states that are participating will have to pay 20% counterpart funding.

“The second prayer was that

these states should commit 5% of funding to support the work of the secretariat, in line with the National Livestock Transformation Plan’s policy. Council approved the two prayers,” he disclosed.

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We’ve catalysed N102bn funding for agri-financing since 2016 - NIRSAL ... Togo, Ghana, others to understudy progress in NIRSAL’s de-risking strategy HARRISON EDEH, Abuja

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he Nigerian Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) says it has been able to catalyse and improve de-risking of agribusiness to the tune of N102 billion since its inception in 2016, a measure it says has transformed Nigeria’s agricultural investment climate.

The agricultural de-risking institution also noted that the overall Federal Government’s and the Central Bank of Nigeria’s intervention in the agricultural sector had seen appreciable progress recorded in ensuring food security in the country, drop in food import bill, and de-risking agribusiness in the country.

Speaking at a media interactive session on Thursday in Abuja, Aliyu Abdulhameed, NIRSAL’s managing director, said the institution was transiting farmers to agribusiness model to ensure they do agricultural as a business, where investors could put in money as offtakers and investors.

“In the last three years, we have moved from zero to hero in advancing agribusiness in the country,” he said.

@Businessdayng

He noted also that the institution is encouraging farmers to organise themselves into geo-cooperatives to ensure tying them up to off-takers for their specific farm products.

“Farmers in the Northern part of the country are encouraged to form a cooperative of 250 each in a group and 50 each in a group for Southern farmers to ensure we support them and their products with off-takers,” he said.

He stated further that the institution had performed mapping across the country, where Nigeria had competitive advantage such as in cocoa, palm oil, soybean, rice and others.

Speaking further, the agency noted that on the back of recorded impacts in Nigeria’s agricultural business, some countries in the West African sub-region were already seeking to understudy Nigeria’s strategy in de-risking and driving agribusiness.

“Togo and Ghana are currently approaching us for assistance in order to help them set up their own version of NIRSAL to also drive their agribusiness. We have committed to assist them through the rest of African business unit,” he said.

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POLITICS & POLICY Ishaku’s absence: Group accuses Taraba Assembly of aiding impunity

Nathaniel Gbaoron, Jalingo

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he Taraba Social Accountability Group (TSAG) on Thursday accused the leadership of the Taraba State House of Assembly of aiding impunity in the governance of the state by passing a vote of confidence in Governor Darius Ishaku.

Co-convener of the group, Abdulaziz Gassol in an interview with journalists in Jalingo said the House of Assembly as the representative of the people was supposed to ensure checks and balances

to deepen democracy, but was rather promoting impunity in the state.

Gassol, who flayed the Assembly for passing a vote of confidence in the governor who has been away from the state for over two months, thereby grounding government activities in the state, described their action as undemocratic.

“This present crop of leadership we have in the state House of Assembly which was imposed by the governor is just helping the governor to sink the ship of governance in the state.

“The governor has been away for over two months

Darius Ishaku

Makinde vows to waive immunity if accused of corruption Felix Omohomhion, Abuja

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he Oyo State Governor, Seyi Makinde has said that he would not hesitate to waive his immunity to face trial if accused of corruption.

The governor, who spoke at the commissioning of a new state office of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in Ibadan, said that his decision would help set the tone for an effective anticorruption fight in the state.

This is contained in a press statement by the anti graft commission on Thursday.

Makinde, represented by the Secretary to the State Government, Olubamiwo Adeosun, stressed that the fight against corruption must be taken seriously by all stakeholders to address

the many problems it has caused Nigeria He said: “We cannot really go far in achieving our objectives if we allow corruption to maintain its hold on the system.

“That is why we are not mincing words on this issue to waive my own immunity if there is any reason to call me to question.”

The governor also commended ICPC, observing that the Commission had set a high standard in fighting corruption which should be emulated by other federal government agencies in the state.

“I must commend ICPC for the studious methods it has adopted in carrying out its three-pronged mandate of enforcement, prevention and public education. This has led to the conviction of many public officers and the prosecution of many more.

“I have been made to un-

without transmitting power to his deputy and you know there is very little the deputy governor can do when he is not in acting capacity.

“This leadership of the Assembly is simply a rubber stamp leadership that operates on the whims and caprices of the governor.

“The good thing is that only 12 out of 24 members signed the undemocratic vote of confidence on the governor and we urged the 12 that refuse to sign to remain focus because Taraba masses are with them,” he said.

Chairman, Taraba State House of Assembly Com-

derstand that in the area of prevention, ICPC has carried out system studies and corruption risk assessment of a number of government agencies,” he said.

He said the state was adopting ICPC’s approach in deepening the anti-corruption war especially the setting up of the Anti-Corruption and Transparency Units (ACTU) in ministries and departments in the state.

Also commenting on the new office, the governor said it was a testament of ICPC’s resolve to diminish corruptive tendencies within the state.

Earlier, ICPC Chairman, Professor Bolaji Owasanoye, said that the new office was the beginning of a process that will end rentage of office accommodation across the 15 states where the Commission was present.

mittee on information, Bashir Mohammed did not return calls or reply to a text message sent to his phone for reaction on the accusation.

Governor Darius Ishaku was last seen in public in the State on December 19 last year when he presented the 2020 budget to the House of Assembly.

His continuous stay away from the State on health grounds according to his Senior Special Assistant on Media and Publicity, Bala Dan-Abu has sparked controversy following his failure to transmit power to his deputy, Haruna Manu.

BRT probe: Court dismisses Ambode application Iniobong Iwok

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n Ikeja High Court has struck out a suit filed by former governor of Lagos State Akinwunmi Ambode seeking to stop his probe by the state Assembly over purchase of 820 buses for Bus Reform Project.

The presiding judge, Yetunde Adesanya ruled that the ad-hoc committee set up to investigate Ambode was a fact-finding committee and not an indictment.

She emphasised that an invitation by an agency of government cannot in anyway cause a breach of the threat of the fundamental rights of the claimant.

The judge further noted that that the claimant’s action is an invitation to the Court to cripple the legislative exercise of the statu-

tory power of the Lagos State House of Assembly under Section 128 and 129 of the 1999 Constitution.

Ambode instituted the civil suit against the State House of Assembly, its Speaker, Mudashiru Obasa, and the Clerk of the House, Ahmed Sanni.

Other respondents to the suit are Fatai Mojeed, the chairman of an ad-hoc committee set up by the House to probe the procurement of the buses, as well as eight members of the committee.

After a public invitation in which Ambode failed to appear before it, the House had threatened to issue a warrant of arrest on the former governor and four others who ser ved under him as commissioners.

The decision followed two preliminary reports presented by two differ-

ent ad-hoc committees set up by the House to investigate the 820 buses p u rc h a s e d by A m b o d e and to appraise the 2019 midyear budget.

Th e f o r m e r c o m m i ssioners involved included, Kazeem Adeniji (Attorney General and Commissioner for Justice), Olusegun Banjo (Commissioner for Budget), Akinyemi Ashade ( C o m m i s s i o n e r f o r Fi nance) and Wale Oluwo (Commissioner for Energy and Mineral Resources).

Ambode governed Lagos State from 2015-2019, but was unable to secure a second term ticket after falling out with leaders in his party, the ruling All P ro g re s s i v e s C o n g re s s (APC) in the state, among which included the national leader of the party and his presumed political godfather, Bola Ahmed Tinubu.

opposed to this obnoxious and vexatious bill and hereby declare that the Senate should stop further debate on it.

“It is difficult to define repentance as there is no instrument to determine the heart of man. This raises some pertinent questions: What if the purported repentant Boko Haram insurgents were sent by their leaders as spies but pretend to have repented?

Will they not be more deadly if they are allowed to infiltrate the masses freely?

“Furthermore, why should the focus be on the so called repentant terrorists while the

victims of their senseless killings, including widows of the soldiers killed and orphans are left to rot away at the Internally Displaced Persons’ Camps (IDPs)? Many of the female victims have been reportedly raped, some have died on account of debilitating diseases, while most are suffering from harrowing hunger!

“If the energy and time spent in preparing this contentious bill were directed at giving succour to the displaced people in the various camps, they will have a sense of belonging and be grateful for it.

GPAAN kicks against agency for ‘repentant’ Boko Haram members Iniobong Iwok

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he Guild of Public Affairs Analysts of Nigeria (GPAAN) has kicked against a bill recently presented to the Senate which seeks to create a national agency for the education, rehabilitation, de-radicalisation and integration of repentant insurgents in Nigeria.

The bill presented by a former governor of Yobe State and current Senator, Ibrahim Geidam, aimed to establish the institution to rehabilitate, de-radicalize, educate,

reconcile and reintegrate purported repentant Boko Haram terrorists into the Nigerian society.

The Senator had said that the envisaged repentant insurgents would acquire skills, literacy and Islamic Religious Knowledge via the Agency, while the bill if passed into law would also promote national unity as information will be elicited from the repentant insurgents that would help to combat insecurity.

However, in a release to journalists, Thursday, and signed by its General Secretary, Victory Anya, the group www.businessday.ng

said the entire members were vehemently opposed to the bill, saying that the Senate should stop further debate on it.

GPAAN said it was difficult to define repentance as there is no instrument to determine the heart of man, while arguing that it was possible that the repentant Boko Haram members could be sent by their leaders as spies but pretend to have repented to infiltrate the masses.

The group wondered why focus should be on the repentant terrorists, while victims of their senseless killings, including widows of the

soldiers killed and orphans are left to rot away at the Internally Displaced Persons’ camps.

The group sought the killing of the bill, saying that providing the succour instead of punishment would lure many young citizens with similar evil intentions into taking up arms against the state.

GPAAN urged Nigeria to learn from Chad Republic that recently executed 10 members of the militant group.

According to the statement, “GPAAN under the leadership of Comrade Ayo Oyoze Baje are vehemently

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@Businessdayng

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Friday 28 February 2020

BUSINESS DAY

FT

FINANCIAL TIMES

World Business Newspaper

How dangerous is the coronavirus and how does it spread?

Scientists race to understand respiratory disease that has infected tens of thousands in weeks CLIVE COOKSON

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cientists are racing to understand the deadly coronavirus disease, Covid-19, which emerged in China in December.

The number of confirmed cases is already 10 times higher than the 8,100 known to have been infected

by Sars, a similar virus that caused a six-month epidemic in 2003.

Though Covid-19 seems to have passed its peak in China, it is spreading rapidly elsewhere. Public health experts fear the respiratory illness, which is believed to have started in a food market in Wuhan, may become the most serious pandemic of the 21st century so far.

How dangerous is the new coronavirus?

Covid-19 is transmitted more readily between humans than Sars, though it is less virulent. Computer modelling suggests that each new case infected 2.5 other people on average in the early stages of the epidemic, though Chinese authorities have greatly reduced this “reproduction number” through drastic action to isolate cases and trace their contacts.

Covid-19 has caused severe respiratory disease in about 20 per cent of patients and killed 2-3 per cent of infected individuals. Sars, in contrast, killed 10 per cent of confirmed cases. Older people, whose immune defences have declined with age, and those with underlying health conditions are much more vulnerable than the young.

But fatality rates are hard to estimate in the early stages of an outbreak and depend on the medical care given to patients. For example, ventilators save lives by enabling people with pneumonia to breathe.

A Chinese worker dressed in a protective suit takes the temperature of a woman at a subway station in Beijing during the lunar new year and spring festival holiday © Kevin Frayer/Getty

For comparison, seasonal flu has a mortality rate below 0.1 per cent but it infects so many people that it results in about 400,000 deaths a year worldwide. The modern world’s worst pandemic, Spanish flu, infected an estimated 500m people and killed 50m worldwide in 1918-19.

How does the virus spread?

What is the incubation period?

To catch Covid-19, you need to be physically close to someone shedding significant amounts of virus — which almost always means a person with symptoms of disease, though asymptomatic transmission may occur very rarely.

Respiratory infections are most commonly spread through the air by viral particles in droplets from a cough or sneeze, though health

workers and family members are also vulnerable to infection through close physical contact with patients without good barrier protection.

The incubation period between infection and symptoms appearing can range from two to 14 days.

Around five days is most common, according to the World Health Organization.

Can you catch coronavirus during air travel?

Yes, if you are close to someone shedding virus in the aircraft cabin you could be infected, just as you could in any enclosed space. That probably means sitting within two rows of them. People worry about germs being spread by the cabin air circulation system but modern planes are very efficient at removing viral particles.

Since proximity is the main risk factor for infection, you may be in more danger while queueing at the departure gate — or travelling to or from the airport by taxi or public transport. There is also a smaller risk of infection from virus surviving on surfaces such as aircraft toilet doors or tray tables, so it is worth washing your hands frequently while travelling and/or applying an alcohol-based hand rub.

Do masks help protect against infection?

Although wearing face masks appears socially obligatory in some east Asian cities affected by coronavirus, the World Health Organization says firmly that healthy people do not need to wear a mask unless they are taking care of a person with suspected Covid-19

infection. But it does advise people in places where there are Covid-19 cases to wear a mask in public if they are coughing or sneezing.

The most effective ways to protect yourself and others against Covid-19 are to clean your hands frequently, cover coughs and sneezes with the bend of your elbow or tissue and keep at least a metre away from people who are coughing or sneezing.

What happens when you are infected?

The virus multiplies within the lower respiratory tract, where symptoms will develop. Early ones are a fever and cough. Most people will recover within a few days. But about 20 per cent go on to develop pneumonia as their lungs become inflamed; they may need a respirator to help them breath.

In the most severe cases, there is a “cytokine storm” in which the immune system goes into overdrive, overwhelming the body with cells and proteins that destroy other organs.

How can doctors tell whether a patient has coronavirus or another disease?

Since Chinese scientists published the genetic sequence of the virus on January 10, laboratories anywhere in the world have been able to test patient samples for its presence. They use a procedure called polymerase chain reaction (PCR) to amplify and identify viral genes. But PCR is slow and requires specialist equipment, so researchers are rushing to develop faster, cheaper and more portable tests.

At the same time scientists are carrying out detailed analysis of the full genetic code of virus isolated from Covid-19 patients to trace mutations that might make it more or less virulent or transmissible as the epidemic proceeds.

Markets shake-out spurs bets on interest rate cuts Spread of coronavirus shakes stocks and boosts hopes for policy responses

TOMMY STUBBINGTON AND COLBY SMITH

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s the spread of coronavirus spooks financial markets, investors are betting that central banks will come to their aid.

Traders have this week raised expectations for rate cuts from the Federal Reserve and other big central banks, wagering that they will repeat the response to market turbulence that has become familiar since the financial crisis.

Markets are now pricing in more than two cuts by the Federal Reserve over the coming 12 months, implying a reduction of at least half a percentage point from the current level of 1.5-1.75 per cent. The consensus at the start of the year was that even

a single cut was not a done deal. That shift, along with a flight into safe assets, helped push the 10-year US Treasury bond yield to an all-time low on Tuesday.

“The whole global growth picture has changed for the worse,” said Chris Iggo, chief investment officer for core investments at AXA Investment Managers. “I’m not sure what [the Fed] had in mind two months ago is still as relevant today. The Dow down 900 points is something that makes them sit up and take notice.”

Fed policymakers have so far given no indication of a shift in policy. Vice-chairman Richard Clarida said on Tuesday that coronavirus would have a “noticeable’’ impact on Chinese growth, which could spill over into the rest of the www.businessday.ng

world. “But it is still too soon to even speculate about either the size or the persistence of these effects, or whether they will lead to a material change in the outlook,” he said.

For now, it is still unclear how companies’ supply chains could be affected or how large a drag the outbreak could be on growth globally. “It’s a difficult situation for [the Fed], because they’d like to see more clarity on the economic front, and right now, there isn’t a whole lot of economic data to confirm how bad the coronavirus could be,” said Kathy Bostjancic, chief US financial economist at Oxford Economics.

Moreover, the Fed may be more hesitant to ease policy further, she said, given that it had indicated at the end of last year that it sought to remain on hold and see the impact

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of the cumulative 0.75 percentage points it cut between July and October in 2019.

Investors have focused their attention on the Fed in part because it is rare among developed world central banks in having significant space to lower interest rates. But even the European Central Bank, which cut its deposit rate to minus 0.5 per cent last September, is now priced for a further tenth of a percentage point cut this year. At the start of the year, investors had begun tentatively pricing in rate rises in 2021. Germany’s government bonds, which serve as a benchmark for all eurozone debt, now trade at sub-zero yields up to maturities of 30 years.

The resurgent expectations for monetary easing contrast with a widespread belief following 2019’s @Businessdayng

massive bond rally that central banks were largely out of ammunition and were likely to pass the baton to government spending when it came to stimulating economies.

“The reaction we have seen demonstrates that central banks are still the only game in town,” said Antoine Bouvet, senior rates strategist at ING. “A shift towards fiscal policy was also going to be a gradual one that occurred over many years.”

Mr Bouvet added that rate cuts were unlikely to do much to address the fallout from the spread of coronavirus. “The markets are tending towards this response because they are used to it and it’s probably the fastest policy response to put into practice. But it’s not the most useful tool for addressing a crisis like this,” he said.

Friday 28 February 2020

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42

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

European markets slide on spreading coronavirus Stocks and US futures tumble on global pandemic fears KATIE MARTIN, PHILIP GEORGIADIS AND HUDSON LOCKETT

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arket tumult sparked by the growing coronavirus crisis has spilled into the fourth consecutive day, with European stocks dipping into correction territor y as they posted heavy declines.

The Stoxx 600 index of European shares fell by as much as 3.5 per cent by early afternoon in London as sentiment soured through the trading day, with similar declines in the FTSE 100 and the German Dax. European markets are set for their worst week since the eurozone sovereign debt crisis in 2011. The Stoxx index tracking the region’s largest companies has now entered a correction as it has fallen more than 10 per cent from the record high achieved just last week. Since its January peak, the FTSE All World index has shed around $5tn in value.

The 10-year US Treasury note yield touched a record intraday low of 1.2689 per cent as investors bought government debt in an accelerating rush into haven assets. Yields fall when prices rise. Futures pointed to a

decline of 1.2 per cent in the US benchmark S&P 500 index when it opens later in the day.

Oil price falls deepened, with global benchmark Brent crude down 2.8 per cent at $51.91 a barrel, its lowest level in more than a year.

Investors have spent the week scrambling to price the likely economic impact of the virus, which has quickened its spread from Asia-Pacific across the

world in recent days. The latest bout of market selling came after the US Centers for Disease Control and Prevention late on Wednesday confirmed a possible instance of community transmission of Covid-19 in California.

There’s no reason to panic Donald Trump The CDC said it had confirmed the infection in a person who apparently had not travelled to China recently or been ex-

posed to another known coronavirus patient. There are now a total of 15 confirmed cases in the US. Sha re t ra d i ng o n Wa l l Street whipsawed overnight with the S&P 500 ending a volatile session down 0.4 per cent on concerns over Covid-19’s spread outside China. The Wall Street benchmark has shed 8 per cent since hitting record highs earlier in February.

US president Donald Trump said at a press conference late on Wednesday that he had tapped Mike Pence, the US vicepresident, to co-ordinate Washington’s response to the spread of the coronavirus.

Mr Trump said that the “risk to the American people remains very low . . . There’s no reason to panic”.

Coronavirus cases have spread to countries including South Korea and Italy and Mr Trump said other nations besides China might be “cut off” from US travel at some point.

The World Health Organization said on Wednesday that new cases reported outside China had exceeded those within that country for the first time.

Havens rose again on Thursday with gold adding 0.7 per cent to $1,652 per ounce.

“The price action since the weekend is a clear departure from the strikingly calm conditions of prior weeks,” said Tim Graf, a strategist at State Street.

He said heightened risk and volatility due to the coronavirus “should keep the already-strong demand for safe haven assets in place”.

Moves in Asian stock markets were more measured, although Japan’s Nikkei significantly underperformed as it fell 2.1 per cent.

Wall Street readies for an assault on UK banking JPMorgan and Goldman could provide long-awaited challenge to big British lenders NICHOLAS MEGAW

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s Metro Bank’s new chief executive revealed an annual loss and outlined a fresh recovery plan on Wednesday, he asked journalists to be gentle in their criticisms. “I’d ask that you try to be as balanced as you can,” Dan Frumkin said, acknowledging the bank had a bruising year.

But despite the unappealing state of UK banking — which has also forced Royal Bank of Scotland and Lloyds Banking Group to cut their return on equity targets — two of Wall Street’s biggest names are planning to attack the market. JPMorgan is working on a digital banking offering under its Chase brand, following Goldman Sachs, which is planning to significantly expand the Marcus retail business it opened in the UK in 2018.

After years of false dawns with efforts to boost banking competition in UK, analysts and investors said the latest trend could be one that finally has a serious impact.

“We do think the existing incumbents are quite handicapped

by their branch networks in terms of costs — we think this probably accelerates the need for them to restructure and be more cost competitive in servicing the retail market,” said Colin McLean, chief executive of SVM Asset Management, which owns shares in several UK lenders.

By many measures, the UK appears to be a particularly unattractive place to do business compared with JPMorgan’s home turf.

The bank’s consumer division generated a return on equity of 31 per cent in the fourth quarter of 2019 — almost double Britain’s best-performing high street lender Barclays.

If you look at margins on UK retail banking products and forget about legacy cost structures and conduct issues, margins on some new business are very attractive John Cronin, analyst at Goodbody For that reason, chief executive Jamie Dimon has repeatedly said that “it doesn’t make sense to do normal retail banking overseas”. However, while he declined to give any details on JPMorgan’s UK plans at an investor day on

Tuesday, Mr Dimon added that “digital may make it different”.

Goldman’s online-only business has already gathered more than £13bn in deposits since it opened in September 2018. Metro Bank’s branch-heavy model took more than seven years to hit the same level.

Marcus’ aggressive approach — offering the highest rates in the market for easy access savings accounts — has driven up costs for small- and midsized banks that rely on such savers. Tesco Bank, Virgin Money and Yorkshire Building Society were among a string of lenders that increased their interest rates or introduced new products in the month following Marcus’ launch, according to analysis by Moneyfacts.

JPMorgan, meanwhile, is expected to go further than Marcus with a faster push into lending, and has lined up an experienced chairman — former senior City regulator, Clive Adamson — to lead the business. In addition to its US retail expertise, the bank has a substantial UK-based payments business, which people close to the company pointed to as evidence it would not have

to “start from zero” in the new market.

With an annual technology budget of more than $11bn, it is hoping that more advanced systems will keep costs low enough to turn a profit even in the competitive UK market.

John Cronin, analyst at Goodbody, said: “If you look at margins on UK retail banking products and forget about legacy cost structures and conduct issues, margins on some new business are very attractive.”

Alongside Metro’s decision to rein in its branch opening plans on Wednesday, Lloyds Bank and Virgin Money announced a cumulative 1,300 job cuts as part of efforts to reduce the cost of their legacy high street networks.

However, despite the cuts, most executives still believe their old-fashioned networks will provide some protection against the likes of Chase and Marcus.

“The only people making money in UK banking are the incumbents. And they don’t make it by offering mortgages and personal loans funded by top of best-buy table deposits,” said a

senior executive at one high street lender. “The incumbents make money out of inertia, infrastructure and their back books.”

Start-ups such as Monzo and Revolut have attracted millions of customers to their digital-only current account offerings in the past few years, but they have struggled to convince users to make the leap to using them as a main bank account.

In contrast, Metro Bank and Handelsbanken — the Swedish business bank that puts great emphasis on its branch portfolio — consistently appear around the top of customer satisfaction surveys.

Mr Frumkin, who took over at Metro Bank at the start of the year, said many of its branches had “very long leases with no break clauses — moving would be quite expensive.” But while some of its future “stores” would be smaller, he insisted the underlying “bricks and clicks” model worked.

“There’ll be noise today,” Mr Frumkin said, but “our core strength is that we’re people people, we’re store-based — we’re not going to be automating things away that are truly valuable.”

Friday 28 February 2020

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BUSINESS DAY

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ANALYSIS

The workings of Sanjeev Gupta’s empire Financial and operational issues at his companies have cast doubt over his ambitions to revitalise faded heavy industries MICHAEL POOLER AND ROBERT SMITH

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s he rubbed shoulders with an elite club of world leaders, bankers and billionaires, Sanjeev Gupta could have been forgiven for feeling that he had finally arrived.

Making his debut at the World Economic Forum in Davos in January, the metals magnate’s message chimed with the event’s dominant theme of climate change. “Most of the world wants to go to legally-binding carbon neutrality by 2050,” Mr Gupta said in a television interview at the resort. “Both our steel and aluminium businesses will be carbon-neutral by 2030.”

It was a characteristically bold claim from a man who has sought to join the ranks of global tycoons with an ostentatious style marked by private jets, trophy mansions and grandiose pledges.

Through a dazzling run of acquisitions around the world, in little more than five years the 48-year-old Mr Gupta has gone from a little known commodities trader to the captain of an industrial powerhouse with $20bn in annual turnover and 35,000 employees. Its interests span metals, mining, renewable power and even banking.

Mr Gupta has rescued failed or unwanted factories stretching from Scotland to South Australia.

But while the appearance at Davos burnished his credentials as a successful industrialist, it masked brewing problems at GFG Alliance, his family’s business empire.

A string of financial and operational issues has cast doubt over the businessman’s grand ambitions to revitalise faded heavy industries in the developed world and reduce their carbon footprint by running plants on green energy.

Weeks before his Davos cameo, 355 workers were made redundant at two of Mr Gupta’s UK steel mills reeling from an industry downturn. Last year, one of his biggest factories fell into technical default on a $350m loan. And the FT revealed this week that a small UK bank within GFG Alliance has faced regulatory scrutiny over its lending practices.

Interviews with more than a dozen current or former employees, many of whom asked not to be identified, plus a review of public and private documents, reveal a host of difficulties. From unhappy lenders, delayed supplier payments and a number of businesses with accounts in the red, they paint a picture of a stretched organisation.

A loose collection of dozens of Gupta family entities, GFG Alliance does not publish consolidated accounts, making it difficult to assess its overall performance and financial health.

Jay Hambro, GFG’s chief investment officer, acknowledged that some of its businesses are

still being turned round, but rejected the idea of widespread issues. “Across GFG Alliance, there are a broad range of different companies. Some are making a substantial profit and some are challenged,” he said in a December interview.

However, a lack of financial transparency, coupled with often unconventional funding methods and Mr Gupta’s seemingly insatiable appetite for dealmaking, has left some current and former employees and industry observers questioning whether GFG is built on solid foundations.

Behind Mr Gupta’s ascent is an apparent gift for turning rust into gold. Creative financing has unlocked cash for investments and day-to-day operations at companies often in need of overhaul, while minimising how much money GFG itself has to contribute.

Lex Greensill, a 43-year-old billionaire financier from Australia, has been the mastermind behind much of GFG’s complex funding. His financial services firm Greensill Capital, which has drawn $1.5bn of investment from Japanese conglomerate SoftBank’s powerful Vision Fund, has arranged billions of dollars of working capital finance for Mr Gupta’s industrial businesses.

While Greensill Capital has cast itself as a disruptive start-up “changing finance to change the world”, it has also used a distinctly old-world method to finance GFG: a 93-year-old bank in Germany’s industrial heartland.

Greensill Bank, a Bremenbased lender the Australian financier’s firm took over and renamed in 2014, has provided more than $1bn of funding to GFG’s metals plants backed by their customer invoices — so-called receivables finance — according to three people familiar with the matter.

But it is Mr Gupta’s funding from another bank closer to home that has drawn regulatory scrutiny: his own.

The Prudential Regulation Authority, the UK’s banking watchdog, last year began a review of lending activities at Wyelands Bank, a lender to small and medium-sized manufacturers that Mr Gupta acquired in 2016. Wyelands says it operates independently from GFG, although it has always made clear that Mr Gupta’s business has been a source of client “introductions”.

Funding deals >$1bn Funding from Greensill Bank to GFG’s metals plants, backed by their customer invoices $350m Loan from a BofA-led consortium that Liberty House received to back its purchase of the Dunkirk smelter €2.2bn Receivables facility that funded the deal for ArcelorMittal’s steelworks. The Greensill finance could incur up to €660m of total interest payments The FT investigation found that Wyelands Bank appeared to skirt a regulatory cap on related party lending, which restricts funding of affiliated companies and individuals. The lender did this by routing millions of pounds’ worth of transactions that financed GFG’s businesses and assets through a series of seemingly independent intermediaries.

Several of these entities were essentially shell companies and their owners often had longstanding links to GFG, with some having worked for Mr Gupta. In several cases, they received funding from Wyelands to buy goods such as steel or aluminium from GFG companies, or even the acquisition of businesses. Twelve of these apparently separate entities all

gave power of attorney to a senior GFG executive to sign loan documentation on their behalf.

Wyelands Bank said in a statement that its regulatory business plan “involves sourcing business through the GFG Network as the bank builds up its business flow from other sources”.

A spokesperson for GFG said it “frequently does business with trusted acquaintances and friends who go back a long way”. GFG added that it was “reviewing the terms of its relationship with Wyelands Bank in order to ensure that all dealings continue to conform to the highest standards of transparency and governance”.

Located in northern France’s rust belt, the Dunkirk aluminium smelter is Europe’s largest producer of the lightweight metal.

Its $500m buyout in December 2018 by Liberty House, one of the main companies within GFG, heralded Mr Gupta’s arrival as a major player in manufacturing on the continent — with a helping hand from Wyelands Bank.

The deal also represented GFG’s entry into the world of traditional bank loans. Until that point, GFG entities had largely depended on expensive forms of asset-backed debt, typically favoured by small businesses without access to conventional funding.

Mr Gupta — who owns 100 per cent of Liberty House — made use of some of these techniques on Dunkirk, raising $34m from Wyelands Bank using high-interest loans backed by the plant’s inventory, which were routed through two intermediary entities. But Liberty House also graduated to mainstream finance by convincing a consortium of blue-chip lenders — led by Bank of America — to back its purchase of the smelter with a $350m loan.

Within months of the deal, the

Dunkirk smelter had breached certain terms on the loan. While no scheduled payments were missed, issues such as delayed filing of audited accounts and a requirement for Mr Gupta to inject more cash into the venture saw the loan fall into a “technical default”.

“It was one of the quickest defaults in history,” says one person aware of the situation.

Liberty House remains locked in legal disagreement with the smelter’s former owner, the mining group Rio Tinto, which argues it is owed $50m as a final payment from the sale. Liberty disputes the claim.

The irony is that while a drop in global aluminium prices contributed to the predicament, Dunkirk turned a profit in 2019. Guillaume de Goys, the plant’s managing director, praised Liberty’s investments and the greater autonomy it has given management. “For us it has a direct and positive impact,” he told the FT last year. “Decisions are made on-site, much closer to the operations.”

The son of a bicycle manufacturer, Mr Gupta began trading commodities while at Cambridge university, before founding Liberty House in 1992. He took his first step into manufacturing by reopening a small Welsh steel mill in 2015.

A string of takeovers of bankrupt or struggling companies led to him being dubbed the UK’s “saviour of steel”. There followed an international expansion that catapulted Liberty into the ranks of the top 10 producers of the metal outside of China.

The operational capability at GFG Alliance is now being put to the test at Keystone Consolidated Industries, a US producer of steel wire and rods in Illinois purchased

by Liberty House at the start of last year. The business enjoyed a record financial performance Continues on page 44

44

Friday 28 February 2020

BUSINESS DAY

FT

NATIONAL NEWS

How coronavirus could upend the US election

Donald Trump has bet his reputation on something he cannot control EDWARD LUCE

I

n 2001, George W Bush urged Americans to go shopping. That was after the September 11 attacks.

Donald Trump wants Americans to buy stocks on the bet that something bad will not happen: the spread of the coronavirus infections at home. His gamble could pay off.

But the US president is staking his credibility on something that is mostly beyond his control.

Short of severing all links to the world, which would trigger a recession, the virus will almost certainly spread in the US, say the experts, including those who work for Mr Trump. At which point, who will he blame?

So far Mr Trump has avoided blaming anyone, including China. His priority is to keep the economy growing in the buildup to the November presidential election. Officials have been told to talk down the threat of the coronavirus.

If the virus nevertheless emerges, Mr Trump will lose twice over: first, it will damage US growth, and, second, because he will have forfeited trust in what he says about the disease.

That sentiment could spread to those voters who usually give Mr Trump a pass. Building trust is a vital element of managing epidemics.

The virus’s political impact could be radically disruptive.

Three effects are visible. The first is to remind voters that competence matters. Even hardcore lib-

ertarians accept that the state is critical in some areas — among them security and public health.

It is unfortunate that the threat of the coronavirus has coincided with a loyalty drive across the US administration.

Mr Trump has entrusted John McEntee, a 29-year-old devotee, with the job of removing officials who have shown any sign of disloyalty. This includes the unelected bureaucrats who do things such as handle threats to public health.

Competence means following the science. Mr Trump has given the role of coronavirus tsar to Mike Pence, the US vice-president. Mr Pence has wrestled with scientific doubts all his life.

Among the highlights are denying that smoking tobacco kills, declaring global warming a myth and presiding over an outbreak of HIV as Indiana’s governor by withholding free syringes.

Last year Mr Trump fired his homeland security co-ordinator and abolished the job for global health security. He has also proposed sharp cuts to the Centers for Disease Control and Prevention (CDC) and the World Health Organization. The upside to Mr Pence’s appointment is that Mr Trump could have chosen one of his offspring instead. The US president has spent years denigrating experts. Now that he needs them, we may be about to find out whether he meant it.

The second blow is to America’s openness. Mr Trump has long railed against globalism.

That is increasingly echoed by

The coronavirus will almost certainly spread in the US, despite Donald Trump’s reassurances © Bloomberg

many of his Democratic opponents. This week presidential hopeful Elizabeth Warren said the coronavirus exposed America’s vulnerability to global supply chains, particularly in China.

Rising suspicion about an interconnected world is also likely to benefit Bernie Sanders, the Democratic frontrunner. Joe Biden and Michael Bloomberg have stuck to a more conventional script. But the spirit of the times is running against them. A global pandemic could sharply tilt US politics against globalisation.

Should the virus hit the US hard, the fear will probably stoke an existing American contagion — the infodemic. So far,

Mr Trump has quarantined his comments about the coronavirus from his general tendency to make stuff up. There is a thin line between complacency and panic. Mr Trump is close to the former. That would change if the coronavirus threatened his reelection. The outlines of how he might respond are already there.

On Wednesday Rush Limbaugh, the radio host to whom Mr Trump awarded the Medal of Freedom earlier this month, said the deep state was using the virus to undermine Mr Trump.

He implied that Nancy Messonnier — the CDC’s leading epidemiologist and sister of former deputy attorney-general Rod Rosenstein — was part of a deep

state plot to defeat Mr Trump.

Ms Messonnier said it was “not a question of if, but when” the virus would spread in America. Another scapegoat has been planted by Tom Cotton, the senator from Arkansas. He said that China might have engineered the virus in a super-laboratory in Wuhan.

Both stories are available should Mr Trump need them.

They are familiar infodemic tools: demonising public servants and fear of foreigners. The good news is that Mr Trump has every incentive to prevent a scenario where he might be tempted to use them. The bad news is that experts think the coronavirus is coming anyway.

cording to people familiar with the matter. “He [Mr Gupta] likes to pay everything at the last minute,” says one UK employee.

GFG says: “We are a group of businesses heavily investing for growth and turnround and, while doing so, we seek to adhere to agreed supplier payment terms and manage positive relationships with important stakeholders.”

Bills to suppliers and invoices from customers are crucial to the financial plumbing of GFG’s empire, backing much of the debt from Greensill Capital. The FT revealed last year that Liberty House’s biggest deal to date — the 2019 purchase of seven European steelworks from ArcelorMittal — was funded by a receivables facility three times the size of the €740m deal price.

Public filings show that this €2.2bn debt facility from Greensill could incur up to €660m of total interest payments. One adviser on the transaction expressed disbelief that GFG and Greensill were

able to wring that much value out of the plants’ invoices.

GFG’s efforts to shift to more conventional funding have faced setbacks, with the group’s first corporate bond deal nearly ending in disaster in September.

Mr Gupta was forced to inject $150m of his own money to save the debt issuance by InfraBuild, an Australian steelmaker and recycler. Investors still charged InfraBuild a 12 per cent interest rate following a lukewarm reception.

To address concerns around GFG’s opacity, Mr Gupta has vowed to publish two sets of consolidated accounts for his steel and aluminium businesses. Until now, GFG’s industrial empire has been split across separately audited entities, many of which are signed off by a small Londonbased accountancy firm called King & King.

GFG says its companies are financially independent of each other, which should in theory insulate any failures. “These in-

dividual companies have their own treasuries,” said Mr Hambro.

“There is no pooling of funds among different entities.”

However, a review of public documents and interviews with former employees suggest many GFG entities are deeply enmeshed with each other, often owing or lending significant amounts of money to sister companies.

Restructuring may be required with possible divestments, say three people familiar with the assets. Yet Mr Gupta continues to chase deals and is keen to step in should a planned Chinese takeover of British Steel fall through.

“We are working towards further enhanced transparency and governance, and intend to publish consolidated accounts for Liberty Steel Group in 2020,” says a GFG spokesperson. “However, as a private, family-owned company, we do not intend to provide granular details of our finances in response to every rumour, half-truth or piece of speculation.”

The workings of Sanjeev Gupta’s empire Continued from page 43 in 2018, but current and former employees say a lack of money has led to late supplier payments and a shortage of raw materials, resulting in the mill being occasionally unable to produce full-time.

“We have started to get more money of late,” said one worker at the plant this week. “Our reputation is still not good with vendors and we are still late on customers’ orders. It will take time to pull out of this, if we even can.”

One haulier said last year they had to chase invoices for weeks before receiving a cheque, and even then not for the full amount owed. “We never had any trouble with them [Keystone] before. It’s been going downhill since then [the takeover].”

Michael Setterdahl, chief executive of Liberty Steel USA, put the problems down to a bad market in mid-2019 but said that demand had since recovered.

“For November and December, we [were] sold out and the forecast for January looks very positive, as does the first quarter of next year,” he said late last year, adding that the business was “talking with all suppliers and making significant payments every week”.

Mr Setterdahl dismissed the idea of a lack of funds for day-today operations: “Liberty Group has been injecting equity into the business, so it’s not a shortage of cash.”

And not all workers at the plant share the negative assessment.

“We’ve been slow on orders, just like everybody else in the United States,” says one. Given that the entire US industry enjoyed an exceptional boost in 2018 following President Donald Trump’s steel import tariffs, they said it was unfair to compare the two time periods.

While pushing out supplier payments is not unheard of, the issue has arisen at Liberty’s steel mills in the UK and Australia, acwww.businessday.ng

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A8

Friday 28 February 2020

FRANK ELEANYA

N

igeria's poor electricity supply could be the biggest hindrance to deploying 5G technology at commercial level, according to officials of Nigeria Communication Commission (NCC).

Following MTN’s successful trial of the technology

going Social Media Week Lagos, Wakil Bako, director, Technical Standards and Network Integrity, NCC, said while the commission had identified and made available three spectrum for the technology, the unstable power supply situation across the country was a major problem.

Currently, broadband operators spend about 60

would be difficult for consumers in Nigeria to enjoy the full benefits of 5G technology when deployed commercially.

5G Technology is an umbrella term used to categorize the fifth generation of wireless communication, offering networks that are 100 times faster than 4G, support 100 times more devices and feature five

industrial revolution.

However, 5G technology comes with a unique architecture different from previous generations of wireless infrastructure.

Importantly, the infrastructure transits from tra-

ditional large cell towers stretched over long distances to a network of smaller cells sited more closely together.

5G technology requires a massive amount of energy to function at full capacity. Experts believe that a 5G network will consume three and half times as much electricity as 4G, thanks to a combination of massive MIMO (Multiplein-multiple Out) antennas, legacy networks in multiple bands and the massive.

Proliferation of small cells.

Jake Saunders, the managing director at ABI Research, says a typical LTE cell site today might draw about 6 kilowatts (kW) in power, rising to perhaps 8-9kW at peak traffic periods. According to politico. com, a country like Nigeria will likely need about a million new cell sites by 2025 to remain competitive in 5G. He also predicted that a 3.5GHz cell site deploying massive MIMO with four receivers might consume about 14kW on average and up to 19kW under peak load, in the next five years.

MIMO describes wireless systems that use two or more transmitters and receivers to send and receive more data at once.

Massive MIMO takes this concept to a new level by featuring dozens of antennas on a single array.

MIMO is already found on some 4G base stations.

But so far, massive MIMO

has only been tested in labs and a few field trials. In early tests, it has set new records for spectrum efficiency, which is a measure of how many bits of data can be transmitted to a certain number of users per second.

Nigeria's power generation capacity presently is able to generate an average of 3000 megawatts despite an installed generation capacity of 12,522 megawatts.

Interestingly, the country is targeting a 40,000MW generating capacity by 2020 and will need to spend approximately $10 billion per annum on the power sector for the next ten years to achieve this.

In the meantime, the NCC said it is looking at alternative power sources such as solar energy and inverter batteries.

In particular, lithium-ion batteries - also used in electric vehicles - are increasingly being adopted by broadband operators because the cells are nontoxic, lighter than leadacid batteries, and can also perform useful work, providing cost and energy efficiencies. In addition, the lifespan of a lithium-ion battery is 10 plus years—at least double that of a leadacid battery.

However, the challenge with these options is lack of security.

“Using green energy is not a problem for operators, but as you know, batteries are a big market at the moment, if there is no adequate security someone can steal them from the sites,” Austine Nwaulune, director Spectrum Administration Department, NCC, said.

to meet their short term needs.

“We have been able to tap into the resources that we have which is data and technology including digital channels, to create a fantastic experience with lending,” he said.

“SystemSpecs started by doing a pilot with a deposit money bank, and today, we have on-boarded hundreds of other small lending organisations to make sure that we push the level of access down the line.

We have salary data and that has come from our over 20 years of operation within the whole payroll processing space and the data increases personalisation required for the kind of experience we are talking about, as this helps to determine what will technically be called a credit score,” Okeme explained.

On the ease of gathering credible data sources, Ayotunde Bally, founder

and CEO of Arvo Finance, said that it is important for banks, telecommunication operators and other data collectors to share data with fintechs who are there to increase financial inclusion and compliments the work of banks.

“This issue of open banking and openness is only an issue in Nigeria. Transparency and sharing of data is our key issue and not that there is lack of data,” he said.

On what banks are doing to increase digital lending and promote financial inclusion, Esther Oblekwe, business head, digital banking group, Access Bank Lagos, said that Nigerian banks are working towards getting to where they need to be technologically and are therefore engaging technology experts and using digital tools to drive operations.

“Banks are using data and technology everyday to fo-

cus more and understand the everyday life of our customers so that we can serve them better. It is quite expensive to lend digitally, but we are making sure that the loans we are giving out are human focused to meet customer needs,” she said.

Oblekwe said that Access bank has gone through a transformation as a business and has brought customers into the centre of their work by using data to bring some sort of personalisation so that decision making is quicker and seamless.

The session which was moderated by Chukwuemeka Fred Agbata, host of TechTrends on Channels Television, ended with panellists agreeing that although data is critical, it is sensitive and should be protected and adequately used.

and the possibility of implementing virtual networks (network slicing), providing more adjusted connectivity to concrete needs.

In terms of boosting the economy, 5G is capable of not only meeting the evolving needs of consumers but also bring about a transformative impact on businesses to the extent that it is seen as vital to the fourth

L-R: Wakil Bako, director, Technical Standards and Network Integrity, NCC; Omoniyi Ibietan, Head, Online Media, NCC; Austine Nwaulune, Director, Spectrum Administration Department, Nigerian Communications Commission, during a panel session at the Social Media Week Lagos.

in three locations across the country the NCC had in 2019 said it was ready for a commercial launch.

Speaking during a session tagged ‘Fifth Generation network (5G) Deployment: Socio-Economic Benefits and Challenges’ at the on-

JUMOKE AKIYODE-LAWANSON

W

ith steadily increasing numbers of loan/ credit facilities and the need for business and personal loans on the rise; banks, credit institutions, hedge funds, etc., are relying much more on customer data to authenticate and approve loan requests.

As a result, reliance on technology to make data driven decisions has become important for financial institutions; said to have processed over $100 billion worth of credit loans for

percent of their capital expenditure on power generation, most of which go to generators purchase and servicing.

“All the base stations in Nigeria are working on generators,” Wakil said while stressing the point that it

Small and Medium Scale Enerprise (SME) alone.

The Social Media Week panel session organised by SystemSpecs, developers of Remita, an e-payments and e-collections platform, on Thursday, had discussants unanimously agreeing to the fact that everyday people will only be able to access credit easily and seamlessly when there is adequate technology and data to back the process.

Tunde Kehinde, co-founder of Lidya, a company that provides financing to small medium businesses in fast growing economies, said during the panel session

times lower latency.

For countries like Nigeria, the main advantages of the 5G are a greater speed in the transmissions, a lower latency and therefore greater capacity of remote execution, a greater number of connected devices

that the next phase of lending in Nigeria will be about digital records and so it is very important for loans to always be paid back to build a solid credit history.

“In the next two to three years, there would be millions of credit data points.

So if you build a solid credit history, you will be able to dictate your own price an interest rate,” he said.

Speaking after the session, David Okeme, divisional head, payment applications and verticals, SystemSpecs, said the organisation is working towards empowering everyday people to be able to access credit fast

46

Friday 28 February 2020

BUSINESS DAY

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Friday 28 February 2020

BUSINESS DAY

47

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 27 February 2020 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 311,020.72 8.75 -2.78 118 1,520,210 UNITED BANK FOR AFRICA PLC 239,395.95 7.00 -2.10 374 25,501,480 ZENITH BANK PLC 596,533.38 19.00 -0.26 681 45,573,480 1,173 72,595,170 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 183,065.99 5.10 -5.56 304 18,609,561 304 18,609,561 1,477 91,204,731 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,281,740.91 112.10 0.09 48 2,518,743 48 2,518,743 48 2,518,743 BUILDING MATERIALS DANGOTE CEMENT PLC 2,896,886.26 170.00 - 105 374,929 LAFARGE AFRICA PLC. 249,670.83 15.50 - 45 349,787 150 724,716 150 724,716

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 356,008.96 605.00 - 2 68 2 68 2 68 1,677 94,448,258 REAL ESTATE INVESTMENT TRUSTS (REITS) SFS REAL ESTATE INVESTMENT TRUST 1,386.00 69.30 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 8,405.05 3.15 - 2 9,000 2 9,000 2 9,000 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 2 9,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 64,865.88 68.00 - 13 7,107 49,850.00 49.85 - 6 2,700 PRESCO PLC 19 9,807 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,500.00 4.25 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,890.00 0.63 - 4 45,000 4 45,000 23 54,807 DIVERSIFIED INDUSTRIES JOHN HOLT PLC. 217.92 0.56 - 2 11,278 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 36,583.19 0.90 -1.10 49 9,313,899 U A C N PLC. 23,338.50 8.10 -4.71 46 4,231,002 97 13,556,179 97 13,556,179

BUILDING CONSTRUCTION ARBICO PLC. 469.26 3.16 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 29,568.00 22.40 - 20 72,434 ROADS NIG PLC. 165.00 6.60 - 0 0 20 72,434 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,390.52 0.92 2.22 11 470,166 11 470,166 31 542,600 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 6,341.89 0.81 - 8 54,275 GOLDEN GUINEA BREW. PLC. 220.45 0.81 - 0 0 GUINNESS NIG PLC 55,197.65 25.20 - 24 159,617 INTERNATIONAL BREWERIES PLC. 189,377.58 7.05 - 7 8,012 NIGERIAN BREW. PLC. 359,860.59 45.00 -2.17 117 39,498,051 156 39,719,955 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 145,200.00 12.10 - 40 124,900 FLOUR MILLS NIG. PLC. 86,107.97 21.00 -8.70 32 538,507 HONEYWELL FLOUR MILL PLC 7,930.20 1.00 -4.76 7 433,215 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 1 3,000 NASCON ALLIED INDUSTRIES PLC 34,442.70 13.00 - 12 24,080 UNION DICON SALT PLC. 2,993.06 10.95 - 0 0 92 1,123,702 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 16,903.82 9.00 - 28 78,283 NESTLE NIGERIA PLC. 895,701.56 1,130.00 - 41 28,466 69 106,749 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,103.44 4.08 0.49 28 1,090,900 28 1,090,900 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 19,852.39 5.00 - 11 18,084 UNILEVER NIGERIA PLC. 86,175.08 15.00 - 19 134,328 30 152,412 375 42,193,718

BANKING ECOBANK TRANSNATIONAL INCORPORATED 110,097.31 6.00 -4.00 57 1,722,124 FIDELITY BANK PLC 59,688.08 2.06 -0.48 69 5,525,339 GUARANTY TRUST BANK PLC. 776,983.13 26.40 -2.22 369 35,616,061 JAIZ BANK PLC 17,089.26 0.58 9.43 12 406,600 STERLING BANK PLC. 40,306.59 1.40 - 22 324,483 UNION BANK NIG.PLC. 203,845.27 7.00 1.45 47 901,092 UNITY BANK PLC 6,312.24 0.54 - 1 5,184 WEMA BANK PLC. 21,987.45 0.57 1.79 26 1,424,574 603 45,925,457 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 9,630.67 0.85 3.66 14 695,080 AXAMANSARD INSURANCE PLC 18,900.00 1.80 - 2 5,119 2,195.10 0.27 -6.90 2 105,000 CONSOLIDATED HALLMARK INSURANCE PLC CORNERSTONE INSURANCE PLC 8,248.52 0.56 -8.93 5 468,406 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,830.86 0.25 -4.00 9 1,098,000 LAW UNION AND ROCK INS. PLC. 4,081.51 0.95 7.95 8 246,500 LINKAGE ASSURANCE PLC 3,360.00 0.42 2.44 3 175,000 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 2 42,000 NEM INSURANCE PLC 10,561.01 2.00 - 9 227,076 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,960.40 0.55 - 1 20,000 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 2,272.89 0.20 - 1 1,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 1 2,779 WAPIC INSURANCE PLC 4,282.48 0.32 3.23 60 3,608,159

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117 6,694,119 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,400.97 1.05 -6.25 6 443,622 6 443,622 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 6,784.62 1.05 - 0 0 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 10,000.00 5.00 -0.99 106 4,042,954 CUSTODIAN INVESTMENT PLC 32,056.16 5.45 -8.26 36 1,399,113 DEAP CAPITAL MANAGEMENT & TRUST PLC 540.00 0.36 - 0 0 FCMB GROUP PLC. 36,833.04 1.86 0.54 54 5,531,143 1,131.98 0.22 -4.35 1 132,694 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 379,229.32 36.10 -6.23 18 269,728 UNITED CAPITAL PLC 19,440.00 3.24 -0.92 185 11,397,615 400 22,773,247 1,126 75,836,445 HEALTHCARE PROVIDERS EKOCORP PLC. 2,742.30 5.50 - 1 20 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 710.63 0.20 - 0 0 1 20 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 5,299.36 2.54 - 4 14,650 5,501.03 4.60 - 17 264,365 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 3,381.46 1.96 4.81 13 349,037 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 873.61 0.46 - 3 9,198 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 37 637,250 38 637,270 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 781.44 0.22 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,206.13 0.41 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 262.44 2.43 - 1 100 TRIPPLE GEE AND COMPANY PLC. 287.07 0.58 - 0 0 1 100 PROCESSING SYSTEMS CHAMS PLC 1,220.98 0.26 - 4 608,614 E-TRANZACT INTERNATIONAL PLC 10,962.00 2.61 - 0 0 4 608,614 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 10 10,096 10 10,096 15 618,810 BUILDING MATERIALS BERGER PAINTS PLC 1,956.31 6.75 - 4 100,000 1,258,060.75 37.15 - 27 118,060 BUA CEMENT PLC CAP PLC 17,220.00 24.60 - 5 6,070 MEYER PLC. 244.37 0.46 - 1 500 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 1 80 38 224,710 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,192.12 2.03 - 0 0 CUTIX PLC. 2,465.85 1.40 - 6 90,293 6 90,293 PACKAGING/CONTAINERS BETA GLASS PLC. 34,998.04 70.00 - 0 0 GREIF NIGERIA PLC 388.02 9.10 - 0 0 0 0 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 44 315,003 CHEMICALS B.O.C. GASES PLC. 1,685.79 4.05 - 1 12,035 1 12,035 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 77.00 0.35 - 0 0 0 0 1 12,035 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 2 300,200 2 300,200 INTEGRATED OIL AND GAS SERVICES OANDO PLC 37,294.24 3.00 -5.66 53 1,247,973 53 1,247,973 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 48,031.29 133.20 - 14 66,474 ARDOVA PLC 22,142.18 17.00 1.80 35 346,889 CONOIL PLC 12,491.14 18.00 - 4 5,920 ETERNA PLC. 2,869.12 2.20 - 7 28,988 MRS OIL NIGERIA PLC. 4,206.05 13.80 - 3 3,300 TOTAL NIGERIA PLC. 36,328.84 107.00 - 7 6,580 70 458,151 125 2,006,324 ADVERTISING AFROMEDIA PLC 1,509.28 0.34 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 15,796.05 1.62 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 235.27 0.20 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,128.08 3.61 - 4 111,900 TRANS-NATIONWIDE EXPRESS PLC. 421.96 0.90 - 1 1,000 5 112,900 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 0 0 IKEJA HOTEL PLC 2,515.34 1.21 - 2 14,800 TOURIST COMPANY OF NIGERIA PLC. 7,076.28 3.15 - 0 0 TRANSCORP HOTELS PLC 30,781.64 4.05 - 0 0 2 14,800 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 3,960.00 0.33 - 1 100 1 100 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 0 0 LEARN AFRICA PLC 956.60 1.24 - 5 65,793 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 1 1,500 UNIVERSITY PRESS PLC. 487.49 1.13 - 2 2,008 8 69,301 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 530.46 0.32 - 0 0

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Women in Business A dekoya started her professional career with Lambert Willis & Associate (Insurance Brokers).

She spent 23 years at Law Union and Rock where she rose through the ranks gathering experience in the technical department. Prior to joining Wapic, Adekoya was the Head, Institutional Business Development Division at Cornerstone Insurance. She was appointed Managing Director of Wapic Insurance Plc on November 1, 2015. Adekoya has a Bachelor of Science and Masters of Business Administration both from the University of Lagos. She is a Fellow of the Chartered Insurance Institute of Nigeria and an Associate of the Chartered Insurance Institute, London.

Wapic Insurance Plc is a leading West African full line insurance company offering a diverse range of products and services covering life, general and special risk businesses. They were founded in 1958 and licensed to underwrite all classes of insurance, such as fire and special perils, goods-in-transit, all risk insurance and so on.

Over the last half century, Wapic has garnered experience across Nigeria in risk management and underwriting, and assisting corporate entities and individuals with various classes of cover.

Sharing on how WAPIC prides herself in meeting the needs of their clients, she says “It makes a lot of sense to say that Wapic has done its homework by developing products that are tailored towards specific needs and with enticing benefits to go with them. The products basically give one the chance of efficiently amassing reserves, towards meeting commit-

ments and carrying a life cover. So, this implies that for the period you save, you are covered.”

A while back, an ombudsman desk was established by WAPIC Insurance Plc. for better relationship with their clients so they can have a clearer perspective of insurance.

The Ombuds’ process is an Alternate Dispute Resolution yet informal medium wherein an aggrieved customer of the company may lodge complaints and grievances over the telephone, email, letters, physical visit to the Ombuds’ office and within the shortest time possible, the customers’ Ombudsman will collate data/information from both parties and informally engage parties towards with an amicable resolution of the complaint.

According to Adeyinka, “It is a feat for us as an organisation and this also buttresses our vision, which is to transform and illuminate the insurance industry for the benefit of our customers and stakeholders, as well as our mission, which is leading in all that is worthy,” “Our customers should know that we are continuously transparent in our business operations. Our goal is to continue to strengthen business relationships,” she revealed.

In wanting to provide travellers with effective insurance, their Travel Insurance product was launched by Adekoya. “We launched the Travel Insurance product because we are investing in sensitizing our customers and prospects about the benefits of buying travel insurance through our various digital channels. The idea is to increase product awareness and patronage and also to elicit interest and

Temie Giwa-Tubosun Founder/CEO LifeBank

T

emie Giwa-Tubosun is a Nigerian-American health manager, founder of LifeBank (formerly One Percent Project), a business enterprise in Nigeria working to improve access to blood transfusions in the country.

Temie was born in Ila Orangun in Osun State Nigeria to a university professor and school teacher. She is the fourth of six children. Her name “Temie” came from the abridging of “Temitope”, one of her birth names.

She grew up in Ila, Ilesha, and in

BUSINESS DAY Friday 28 February 2020 www.businessday.ng

By Kemi Ajumobi

Adeyinka Adekoya CEO of Wapic Insurance plc

on-going debate in the public domain on the relevance and importance of Travel Insurance for the protection of life and personal property.”

Known to many as a go-getter, Adeyinka is described by her colleagues and

associates as a result driven woman who never gives up on what she believes in as she works hard to bring the task to fruition. Intelligent, focused, determined and courageous are few words that best describes her.

Ibadan until she was fifteen. When she was ten, her parents won the US Diversity Immigrant Visa and left for the United States with the three older siblings. In 2001, at fifteen, she left to join them with her two younger siblings.

Temie attended Osseo Senior High School, Minnesota, and graduated in 2003. She then attended the Minnesota State University Moorhead and graduated in 2007. In 2008, she went to graduate school at Middlebury Institute of International Studies at Monterey from where she graduated in July 2010.

In January 2010, she went for a graduate fellowship at the World Health Organization in Geneva, Switzerland, which lasted till July of that year when she graduated Middlebury Institute of International Studies at Monterey. She worked briefly at Fairview Health Services in Minnesota in 2010.

In August 2011, she began a fellowship with the Global Health Corps, and spent the next year at Mbarara, Uganda, working with the Millennium Villages Project a project of the United Nations Development Programme and Millennium Promise.

On May 21, 2012, Temie founded a non-governmental organisation called “One Percent Blood Donation Enlightenment Foundation” (or One Percent Project) with the aim of ending blood shortage, educating people on the importance of blood donation for anyone in need of blood, to overcome fears, prejudice, myths and apathy of people on blood donation, and to increase an efficient distribution network of blood in

blood banks in Nigeria.

In January 2016, Temie founded LifeBank, a business organisation set up to tackle the problem of blood shortage in Nigeria. The founding was inspired by the birth of her first child and the complications from that experience. The technology and logistics company is based in Lagos, and incubated at Co-Creation Hub in Yaba. As at January 2017, the company has helped deliver over 2000 pints of blood to patients across the state.

On August 31, 2016, she met with Mark Zuckerberg during his first visit to Nigeria.

She was one of the two women Zuckerberg referenced in his town hall meeting the next day. Of her work, Zuckerberg had said, “If everyone had the opportunity to build something like this, then the world would be a better place... I’ve been to a lot of different cities... people around the world are trying to build stuff like that. If she actually pulls it off, then she’d show a model that will impact not just Lagos, not just Nigeria, but countries all around the world.”

For Temie, “We believe that no African should die from a shortage of essential medical products at the Hospital level, and we are on a mission to solve it. Our goal is to deliver needed medical products such as blood, blood products, oxygen, as well as vaccines to hospitals across Africa. We are on a mission to save one million lives.”

Temie got a spot as one of the winners of the $250,000 Africa Netpreneur Award.

She was also awarded the Jack Ma African Business Hero award.

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