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Lifting 100m Nigerians out of poverty

Health is wealth: ‘Minor ailments’ reduce productivity CALEB OJEWALE, ANTHONIA OBOKOH, & TEMITAYO AYETOTO

MARKETS

VAT on securities dealings near as 5-year exemption set to expire …analysts want SEC, NSE, CSCS to engage FG Iheanyi Nwachukwu

nless there is an official extension, effective July 25, 2019, Value Added Tax (VAT) will become applicable to commissions earned or payable on transactions conducted on Stock Exchanges in Continues on page 33

Inside CULINARY DELIGHTS P. 29

sick population cannot be productive, and in Nigeria, poverty for many people implies they cannot afford to fall sick, or it could cost them their life. If an individual can afford to get treatment, it may perhaps even be under-

As basic healthcare becomes luxury

standable if they become ill, but not in Nigeria where 93 million people are estimated to live in extreme poverty. Nigeria bears a disproportionately high share of the global disease burden, according to the World Health Organisation (WHO).

One hundred million malaria cases are recorded in Nigeria every year, out of which an estimated 300,000 deaths are recorded. Even though most of the world has eliminated malaria, it remains a leading cause of death in Nigeria, and poverty is not farfetched from this phenomenon.

With 152 million Nigerians living on less than N720 ($2) a day, paying for healthcare, however basic, has become a luxury. For instance, in Ikorodu, a suburb of Lagos, to treat malaria costs about N6,000. The malaria Continues on page 33 L-R: Onajite Okoloko, group managing director/ GCEO, Notore; Yakubu Gowon, chairman of board, and Otivbo Saleh, group chief legal officer/ company secretary, at the 5th annual general meeting of Notore Chemical Industries plc in Onne, Rivers State.

Friday 28 June 2019

BUSINESS DAY

news AfCFTA: Buhari fails to make clear Nigeria’s stand . .says committee report wil guide government on next step Tony Ailemen, Abuja

fter over eight months of waiting, President Muhammadu Buhari on Thursday failed to take definite position on Nigeria’s signing of the African Continental Free Trade Area (AfCFTA) agreement. This is despite the recommendations by the presidential committee on the impact of the AfCFTA and Nigeria’s readiness for it that the country should sign the agreements. Desmond Guobadia, chairman of the committee, while submitting the reports on Thursday, urged President Buhari to sign the agreement. “Our reports show on the balance, that Nigeria should consider joining the AfCFTA and using the opportunity of the ongoing AfCFTA Phase I negotiations to secure the necessary safeguards required to ensure that our domestic policies and programmes are not compromised,” Guobadia said. The committee also recommended the setting up of a National Action Committee on AfCFTA to coordinate relevant ministries, departments and agencies to drive the imple-

mentation of the AfCFTA readiness projects and initiatives. The committee was inaugurated on October 22, 2018 to carry out the “Impact and Readiness Assessment of the Africa Continental Free Trade Area, as well as to address risks associated with signing the AfCFTA agreement”. It was charged to, among other things, study the key issues raised by stakeholders, which included “abuse of rules of origin, smuggling arising from difficulties in border controls and unquantified impacts of legacy preferential trade agreements”, as well as low capacity and capabilities of local businesses to conduct international trade, cost of finance, insufficient energy and transport logistics infrastructure. President Buhari, while receiving the reports, expressed his delight at the work of the committee and assured that the “report will form part of the consideration in our decision on the next steps on the AfCFTA in particular and on broader trade integration subjects”.

•Continues online at www.businessday.ng

Experts seek investor-friendly incentives to unlock private capital into Nigeria’s housing sector

...land administration, inflation rate key impediments to sector growth HARRISON EDEH, INNOCENT ODOH, JAMES KWEN & STELLA ENENCHE, Abuja

xperts at the BusinessDay Real Estate Roundtable and exhibition held on Thursday in Abuja said the federal and sub-national governments must come up with investorfriendly incentives that would attract private capital into Nigeria’s housing sector. Many of the private investors in real estate and housing infrastructure, they said, are looking towards South Africa, Angola, Namibia and Mozambique where there is better investment framework. TheBusinessDayRealEstate Roundtable and Exhibition organised by BusinessDay Media Limited is an annual event. This year’sevent,themed‘ScalingUp Responsible Land Governance to Ease Affordable Housing Delivery’, is aimed at critically examining the dynamics and challenges of the real estate sector and proffering solutions. “With the annual budget of over N8 trillion, and capital of about 25 percent, it is clear that thegovernmentcannotfundthe development of infrastructure.

Unlesstheenvironmentisready, you won’t have the private capital,” said Ese Stephen Owie, CEO (sub-Saharan Africa), Numelec SA, Geneva, Switzerland. “In the United States, for instance, what they have done is to have a number of infrastructure bonds, government’s support, unbiased support to home developers, guarantees given to the private sector and investors,” he said. He said further that the government must ensure an enabling environment to enable it tap into the private capital investments of development finance institutions, commercial banks and investment banks in a bid to address housing deficit concerns. “We should start revising our housing regulations, access to title, looking at the Land Use Act and its encumbrances to getting title. When we do that, the private sector can now move in with their capital,” Owie said. He raised concern that the process of acquiring title to land is such that the Certificate of Occupancy takes a bit of time and no bank wants to wait for that.

•Continues online at www.businessday.ng www.businessday.ng

L-R: Paul Usoro, president, Nigerian Bar Association (NBA); Adeoye Adefulu, chairman, 13th Nigerian Bar Association-Section on Business Law (NBA-SBL) conference planning committee; Babajide Sanwo-Olu, governor, Lagos State; Seni Adio, chairman, NBA-SBL; Femi Gbajabiamila, speaker, House of Representatives, and Bode Rhodes-Vivour, Justice of Supreme Court, at the opening dinner of the conference themed ‘Growth, Investment and Employment: Beyond Rhetoric’ in Lagos. Pic by Olawale Amoo

Low, middle-income countries lag in digital payment to government – World Bank/IMF …Analysts task Nigerian government on systems, structures HOPE MOSES-ASHIKE

ower- and middleincome countries (LICs and MIs) are significantly behind other jurisdictions in terms of the usage of digital payments to governments, according to a survey report released on Thursday by the World Bank and the International Monetary Fund (IMF). LICs and MIs also lag other countries in the area of ability to access information from government sources, and the adoption of faster and innovative payment services, the

report said. Two-thirds of all surveyed jurisdictions recognise the potential of Fintech and either are working on or have a national strategy in place, which often focuses on improving consumer awareness and education, reviewing and amending the policy framework and improving institutional capacity to enable Fintech investment, innovation, and adoption. Most jurisdictions, irrespective of income level, aim at achieving universal coverage with open and affordable access to core digital infra-

structure services. Ayodele Akinwunmi, head of research, FSDH Merchant Bank Limited, said one of the advantages of digital payment is transparency of transaction which authority can be used to track people’s wealth and financial flow. On the basis of this, he said government can use the data to drive tax collection. This process has been very successful in Nigeria so far given the progress made in the digital banking and how the Federal Inland Revenue Service (FIRS) has deployed and grown tax revenue in the

country in the last few years. “On the other hand, my view is that many in poor countries may want to evade tax and thus do less of digital payment. It is therefore the responsibility of the government authorities to create systems and structures that encourage digital payment, to enjoy the advantages associated with it which include cost reduction, speed of execution and financial inclusion, while using it to drive tax collections and re-

Continues on page 33

Apapa: What becomes of moneyspinning port city post Dangote refinery? CHUKA UROKO & STEVE ONYEKWELU

he coming on stream of the much-awaited 650 barrels per day Dangote Oil Refinery would mean so much not only to the Nigerian oil and gas sector and its managers, individual interests and the local communities, but also to the wider Nigerian economy. The Dangote refinery has been promoted as coming on stream in April 2020. Its management has said the crude oil refinery is expected to produce 65.4 million litres of petrol, diesel, aviation fuel and kerosene daily when it comes on stream. The refinery has been described as the world’s largest single-train refinery. “That should be enough to meet local needs,” Ibe Kachikwu, former minister of state for Petroleum Resources, told an oil and gas conference in Cape Town, referring to the

Analysis Dangote refinery. Daily average consumption of premium motor spirit (PMS) currently stands at about 50 million litres per day, according to NNPC figures. Over 90 percent of this demand is imported. Nigeria entered a new phase of its history as an oil exporting nation with the collapse of local refineries. That was when Africa’s biggest crude oil producer started relying on imported petroleum products to meet local demand. The coming of the Dangote refinery, someone familiar with the matter said, would help the country preserve foreign exchange of around $16 billion a year at current market prices and save $10 billion a year through domestic supplies of petroleum products. Bello Rabiu, chief operat-

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ing officer, Upstream, Nigerian National Petroleum Corporation (NNPC), had said in April that the coming on stream of the Dangote 650,000 barrels-per-day refinery and efforts by NNPC to revamp the country’s refineries in Port Harcourt, Kaduna and Warri would help Nigeria to achieve zero importation of refined petroleum products. Importation of petroleum products meant the development of facilities where these products would be stored before their onward delivery to the hinterland. Tank farms sprung up to fill this gap. About 80 percent of tank farms in Nigeria are located in Apapa, Ibafon, and Coconut. An average tank farm in Apapa has a carrying capacity of 30 million litres. Close to 1,000 trucks come into Lagos daily for the purpose of lifting refined petroleum products, according to the National Association of Road Transport

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Owners. With the imminent opening of the Dangote Refinery, which would imply a significant reduction in fuel importation into the country or local refining sufficiency for the country, industry experts have taken interest into what becomes of the tank farms and Apapa itself. Apapa, Nigeria’s premier port city, is currently struggling with the siege and occupation of its territory by what looks like a mafia group that is unyielding even to brute force. The opening of the Dangote Refinery, when it happens, means a mixed bag of opportunities and challenges, the experts said. The coming of the refinery means that all the tank farms, about 50 in number, scattered all over Apapa and serving as depots for imported fuel, may be rendered redundant, said

Continues on page 33

Friday 28 June 2019

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NEWS

Experts decry low funding of air navigation, traffic service delivery … as NCAA cautions pilots, airlines over thunderstorm IFEOMA OKEKE

xperts of air navigation and traffic control have called on the government to provide fund for the upgrade and replacement of obsolete air navigation equipment to enable the Nigeria Airspace Management Agency (NAMA) deliver its services according to global best practices. Speaking at the second quarter Business Breakfast Meeting organised by Aviation Roundtable, a group of industry think-tanks, Samuel Caulcrick, immediate past rector of the Nigerian College of Aviation Technology (NCAT), said the college was ready to train personnel in air navigation but was constantly faced with the constraint of inadequate resources. Caulcrick explained that globally, countries were reluctant to privatise the air navigation because private sectors were profit driven but air navigation was about safety, adding that therefore, the resources to train personnel had continued to be limited. “We need to dedicate a certain sum of amount to aviation development. Over the years, NCAT had placed so much emphasis in flying school and this is gradually

changing to give equal attention to air traffic controllers, engineers and other aviators,” he said. Also speaking, Gabriel Olowo, president of Aviation Roundtable Safety Initiative (ART), urged the Federal Government to scrap the office of Minister in Aviation, saying the industry would perform better as a unit under the Ministry of Transportation. Whether senior or junior cabinet member, the aviation industry does not require a minister, he said. This is also as the Nigerian Civil Aviation Authority (NCAA) has called on all Pilots and Airline Operators to exercise extreme caution during flight operations, as a result of the outset of the rainy season with the attendant thunderstorms. In a statement sent by NCAA Thursday, it said the rainy season, which is torrential, was prevalent in the Southern and Northern parts of Nigeria. It is usually accompanied by severe thunderstorms that could impact the safety of flight operations. “There are many other hazardous weather occurrences such as severe turbulence, microburst or low level wind-shear and occasionally hail events are bound to affect air navigation. “The Regulatory Authority

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therefore directs all Pilots to recourse to utmost restraint whenever adverse weather is observed or forecast by Nigerian Meteorological Agency (NiMET). “Pilots and Flight Crews shall mandatorily obtain adequate, en route and destination weather information and briefing from NiMET Aerodrome Meteorological offices before flight operations. “In the same vein, Air Traffic Controllers (ATC) and Flight Crews/Operators shall ensure total compliance with all aerodromes operating minima,” the authority said in the statement. The authority noted that it was quite important for all intending air travellers and airline operators to note that in line with Standard and Recommended Practices (SARPs) Air Traffic Controllers (ATC) might temporarily close airspace during inclement weather conditions. These are adverse weather conditions such as severe thunderstorms, squall lines microburst or low-level wind-shear as observed or forecast by NiMET. It would be recalled that the Authority issued a similar weather alert in March at the advent of the rainy season. It was circulated to the entire industry stating ahead of time what to expect and recommended precautionary measures.

Gilead Sciences leads Hepatitis B, C awareness to Africa Cup of Nations Temitayo Ayetoto

n its efforts to spread awareness on the deadly diseases, Hepatitis B and C among majority of Africans, Gilead Sciences, a researchbased biopharmaceutical firm, will lead a health campaign to the ongoing African Cup of Nations (AFCON). Through a partnership with the Africa’s biggest football tournament and some local organisations, Gilead will launch a new Hepatitis B and C awareness campaign, dubbed “Kick Virus B and C,” with a central focus on how the disease has become a threat to over 70 million Africans and core information on how to get tested. Leveraging the competition to reach millions of football fans, the Californiabased firm will communicate via branding at stadia across Egypt, a campaign website, the tournament’s official website, social media content and an interactive display at the Cairo International Stadium. “We are excited to be kicking off this important public

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health campaign at the Africa Cup of Nations. Too many people are unaware that they are living with hepatitis B or C, putting themselves and their loved ones at risk of serious complications and even premature death,” said Clifford Samuel, senior vice president, Access Operations and Emerging Markets, Gilead Sciences. “Working with our partners across the continent, we want to encourage people to get tested and if diagnosed, to access the appropriate healthcare.” Chronic viral Hepatitis B affects about 60 million Africans; Hepatitis C threatens 10 million and jointly kills more people in Africa each year than tuberculosis, malaria or HIV. The disease often affects the most youthful and productive members of the African population. The new campaign will look to address the fact that few people with viral hepatitis have been diagnosed due to limited awareness and access to testing. This is a problem in Africa, but also globally, where only 20 percent

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of the estimated 71 million people living with hepatitis C have been diagnosed. For the estimated 257 million people living with hepatitis B around the world, this figure stands at only nine percent. In 2016, the World Health Assembly, the decision-making body of the WHO adopted the Global Health Sector Strategy on Viral Hepatitis, which called for elimination of viral hepatitis as a major public health threat by 2030. This strategy set targets to reduce the number of new infections by 90 percent and mortality rates by 65 percent. The outreach is designed to support local healthcare and community organizations across Africa to help meet these targets. “The Confédération Africaine de Football (CAF) is pleased to partner with Gilead on this campaign and believe it will help to build greater awareness of the need for Hepatitis B and C screening and testing across our continent,” said CAF President Ahmad Ahmad said in a statement sent to BusinessDay.

Friday 28 June 2019

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NEWS Real reason engineers, estate surveyors bicker over plant, machinery valuation CHUKA UROKO

wo main built environment professional groups, engineers and estate surveyors and valuers, have in the past few months been embroiled in a professional battle over who has the right and professional competencies to undertake the valuation of plants and machinery. Whereas close watchers of this battle dismiss it as an unnecessary distraction,theprofessionalsinvolvedsay the raging argument is worth the time beinginvestedinitbecause,according to them, depending on how it turns out, it could disenfranchise a whole professional from their rightful job of being plant and machinery valuers. “What is at stake is who has the right to value items of plant and machinery. It is not a function of naira and kobo alone. It’s a function of which professional is trained to undertake the valuation of these items,” Chudi Ubosi, an estate surveyor and valuer, explained to BusinessDay. Gbenga Olaniyan, CEO, Estate Links - a firm of estate surveyors and valuers, agrees, pointing out however that the bickering had a lot to do with professional fees, which translate into naira and kobo.

“Plant and machinery valuation is a big job; it is such that the smallest plant and machinery valuation job is bigger than the biggest property valuation job,” he explained, adding, “whereas engineers know about the integrity and condition of plants and machinery, estate surveyors and valuers are the ones who know the value or the market price of these items.” Paul Osaji, also an estate surveyor and valuer, takes it further, saying that the quest by engineers to attempt to delve into valuation of plants and machinery and other assets thereby creating confusion and misrepresentation of facts in order to become what they are not is disturbing and misleading. “It is important that we differentiate between plant and equipment valuation and engineering assessment. The former is simply ascertaining value in exchange while the latter is ascertaining the integrity and workability of an asset. From the foregoing, engineering assessment falls within the purview of engineers whilst valuation of assets, in all its ramifications, falls within the domain of estate surveyors and valuers,” he explained. Osaji drew attention to the international valuation standards such

as International Public Sector Accounting Standards (IPSAS), International Financial Reporting Standards (IFRS), International Valuation Standards (IVS), saying there was nowhere where in any of these standards engineers were mentioned as valuers to conduct valuation for any purpose. “We are aware that, in valuation, we require inputs from legal, marketing, engineering (all aspects), finance and accounting, auctioneering and other fields of endeavour, but collecting of data from professionals in these fields does not mean they are valuers,” he emphasised. But the engineers insist that estate surveyors and valuers are more concerned about the issue of buildings and estates, not with the details of plant, machinery, and equipment. They are of the view that estate surveyors and valuers don’t have the technical know-how to value assets that are purely engineering related. “If the client asks technical questions as to what differentiates the value of one type of machinery from another, can an estate surveyor truly stand up to answer those questions without the expertise of the design engineer?” argued Femi Akintunde, GMD, Alpha Mead Group.

‘Nation building is responsibility of all’ Iniobong Iwok

igerians have been challengedtocultivatea positive mindset about thecountryandchange their attitude and way of doing things, so as to move the nation forward, while foreigners can also seethecountryfromapositivelight. Wife of the Edo State governor, Betsy Obaseki, gave the advice at the Women in Leadership Series 2019,organisedbytheHandmaidens,anon-governmentalorganisation in Lagos. Nigeria as a nation is destined for greatness, but that the people must do their part and rise up to do their best in their little corner, Obaseki noted. According to Obaseki, who was a special guest of honour at the event put together to celebrate

women achievers in the areas of businessandbuildinglegacies,the event was important as an avenue to encourage the younger generation to emulate them. Also speaking, wife of the Ogun State governor, Bamidele Abiodun, spoke about how she combined raising five children with growing her business in the oil sector, advising the women never to be afraid to go into men dominated businesses if that was where their passion was. “As women, don’t quit, hold ontenaciouslytowhatyoubelieve in, do your things well, don’t be greedy, do things from your heart and you will inspire people,” she said. In her speech, withthe theme: Leading Women Building Legacies, wife of the Lagos State gov-

ernor, Joke Sanwo-Olu, noted that the role of women in nation building cannot be overemphasised, as studies have shown that womenplayapivotalroleinshaping society. She advised women, especially the younger generation, to take opportunity of the event towards making better judgments, stressing that the Lagos State government under Governor Babajide Sanwo-Olu had set in place programmes that would make a difference in the lives of the women. The convener of the event and host, Siju Iluyomade, said the theme was chosen because of the need to set new goals and change the status of women in Nigeria, while also helping them to make a difference where they where.

Medview assures shareholders of turnaround of company’s operations … recalls 10 staff as 50 cabin crew complete recurrent training IFEOMA OKEKE

anaging director/CEO of Medview Airline, Muneer Bankole, on Thursday, assured shareholders of the company that the airline would soon regain its footing on its routes, especially the domestic scene, saying efforts were on by the management to bring three aircraft back to operations soon. Bankole gave this assurance during the third annual general meeting (AGM) of the airline held at the Classique Event centre in Lagos, on Thursday. According to Bankole, the airline has secured loan from its banker, First Bank, to finance the maintenance of one of the aircraft at Aero maintenance base in Lagos, adding that the others that were in Israel and Estonia would soon be on ground in Lagos. He also disclosed that the airline, from the loan, secured a B777-200 that would be used for Hajj operations beginning from July 10. “Medview Airline is one of the airlines approved by the Federal government for hajj operations, we have 17 States and we have covered 15, we signed a contract to airlift a lot of pilgrims for 2019. We got a loan from First bank so we got the B777-200 aircraft

for the company. The aircraft would be used to commence hajj operations in Kaduna by July

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10 and we have a total of 10,600 pilgrims from Kaduna, we expect a turnaround in 2019.

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CULINARY DELIGHTS

Noir Lagos the quintessential French restaurant in Lagos

rench cuisine is one that is enjoyed by many around the world. Similar to the language, it has come to be enjoyed all over the world. French cuisine is known worldwide for its finesse and flavor. What I love about traditional French food is that it relies on simple combinations that enhance flavors of basic

is a grocery store filled with lots of exciting goodies, mostly imported from France. There is also a butchery inside the supermarket and a small cafe before you get to the main dining area. As you enter the restaurant Noir, you will likely fall in love with the decor as it is tasteful and exquisite. The furniture is timeless and the lights are warm and inviting.

evening. Ordering dinner was quite easy, the waitress was pleasant and cheerful however she wasn’t quite versed in the composition of the meals hence couldn’t be more influential in my meal selection considering I had some questions. As a meat lover, I ordered the T-bone steak cooked medium well for that juicy texture and I wasn’t disappointed. The

@lehlelalumiere Lehle works at BusinessDay in Strategy Innovation and Partnerships, she is also a financial inclusion advocate and radio anchor. Originally from Senegal Lehle has a passion for food and culinary experiences and enjoys discovering new restaurants in Lagos.

GUEST

ingredients. French chefs are acclaimed for turning French food into what we now know as haute cuisine and simultaneously influencing the gastronomic scene worldwide. I look forwsrd to the day that African cuisine is equally celebrated on the world scene. French cuisine has made its mark all around the world, so I was not surprised when Noir opened its doors in Lagos last year. Noir has quickly become a Lagos favorite for diners looking for French cuisine and an outstanding customer experience. As the name suggests, Noir is a black and picturesque building located on 4a Akin Olugbade St, Victoria Island. The first time I went to Noir was exactly one year ago and I remember feeling like it would be my new favorite restaurant and as predicted I have been back more than a few times since then. There’s something chic about Noir that keeps me coming back not to mention the food is exquisite. On this occasion, I came to Noir with Chibueze Ewuzie, the channel manager of the international award-winning lifestyle proposition; Xclusive plus by Access Bank. Chibueze is a young person who is connecting Nigeria’s middle class to premium lifestyle services that go beyond banking through XclusivePlus. I promised to take Chibueze out for a late birthday lunch and he chose Noir, so I was happy to oblige. I got there early so I had time to explore the supermarket downstairs which

The artwork at Noir is also equally as impressive and edgy. Every time I have visited, the service is usually good and the staff is very knowledgeable on the menu. I know the menu quite well so I went for the steakf frites, which is essentially tenderloin steak cooked well done with mashed potatoes and veggies. The steak was tender and the mashed potatoes combination was perfect. Since it was Chibuexe first time he has a first timers review... Here is what Chibueze had to say

rich brown color of the steak wasn’t nearly as pleasing as its flavor which was delicious and quite filling considering the generous portion served. Cooked with just the right amount of seasoning and accompanied with the Cafe de Paris sauce for that buttery rich flavor, the fries and ketchup maintained their position as a side dish all evening while my mojito washed it all down for a truly relaxing evening. Overall, regardless of the great service, wonderful ambiance and delicious

CHIBUEZE EWUZIE has now transformed into fully multipurpose space decked with a supermarket on the first floor, cafe on the second, restaurant on the third floor and rooftop bar on the 4th floor. There is something for everyone. The restaurant is perfect for a dinner date, birthday celebration, drinks with friends and even a business meeting. I will keep coming back and I hope you make the time to check it out too.

RATING 5

about his experience. “One exciting item on my bucket list is traveling through Europe sampling the various cuisines of at least 20 countries, so Noir Lagos was an easy selection considering it is inspired by modern French cuisine. My experience was also much anticipated because Lehle had promised to take me out for a meal to mark my birthday and I looked forward to our conversation throughout the

steak that Noir provides, a truly remarkable evening wouldn’t be complete without good company”. Noir Lagos is the first of its kind Frenchinspired culinary experience that combines fine dining with a fun, friendly and warm environment. Noir as a brand focuses on giving its guests a taste of Paris in the bustling city of Lagos. Although it was initially known for its food and high-end dining experience

Tenderloin Steak with mashed potatoes - N12,200 T Bone steak

- N 13,800

Shrimp cocktail

- N4,500

Total

- N30,5000

CONTACT Instagram @bdculinarydelights

To make recommendations or for collaborations please send an email to lehle.balde@businessday.ng www.businessday.ng

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Conspiracy theories and the African predicament THE NEW WEALTH OF NATIONS

Obadiah Mailafia

am not a believer in conspiracy theories. Nor do I subscribe to the view of those philosophers of history who believe nothing significant happens in our world without some conspirators lurking behind it. I’m also not among those who blame foreign imperialism for all of Africa’s problems. I believe that we Africans are ultimately the architects of our own misfortunes. This is not to say that conspiracies don’t exist. I have studied enough political theory from Polybius and Thucydides to Talleyrand and Kissinger to know that conspiracies abound. What the philosopher Isaiah Berlin terms “the crooked timber of humanity” still defines the character of our sinful world. When I was a teenage undergraduate, I stumbled upon a slim little booklet titled, The Protocols of the Elders of Zion, a document purportedly crafted in pre-revolutionary Tsarist Russia as a Jewish plot to enslave the world. In reality, it was a forgery designed to prepare the grounds for the mass pogroms that was later to be visited upon the Jewish people in what has been termed ‘our bloody twentieth century’. But global conspiracies do exist. Perhaps the leading theorist in this field is the American historian and political philosopher Carroll Quigley (19101977). Quigley graduated in physics at Harvard before switching to history

where he eventually earned a doctorate. He was a pioneer of the “scientific method” in the historical sciences. He became a professor at Georgetown University where he taught the young Bill Clinton who later became president of the United States. Quigley wrote The Anglo-American Establishment: From Rhodes to Cliveden (G.S.G. & Associates, 1981), a history of the elite trans-Atlantic secret society that was to shape AngloAmerican relations for the better part of a century. He showed that there exists a global network of secret societies that ultimately call the shots as far as human affairs are concerned. We are led to believe that, to a large extent, the entire system of western power is shaped by these shadowy groups. Among them we have the fearsome Illuminati; International Freemasonry; the Mont Pelerin Society; the Club of Rome; the Bilderberg Group; the Trilateral Commission; and the Council on Foreign Relations. Some of them, like the Illuminati, are so secretive that anyone who claims to know its members must be a liar. What sets these groups apart is the fact that Africans and black people are rarely ever recruited to their ranks. Barak Obama and Condoleeza Rice are the exceptions to the rule. Many of our leaders in Africa belong to the confraternity of global freemasonry, even if as subalterns. Their primary mandate is to enslave the African people and to bring them under the dominion of Informal Empire on behalf of our Roman conquerors. Nigeria has been under the searchlight of the globalist conspirators for several decades now. I believe there is a grand design to destroy our country and to keep our continent as a vast reserve for production of raw materials, cheap labour and nothing else. Everybody knows that our glorious continent has been the playing field of Empires since the sixteenth century.

It began with the trans-Atlantic slave trade, in which more than 20 million black souls perished. When slave outlived its commercial usefulness it was replaced by what they called “legitimate commerce”. This was to be followed by gunboat diplomacy, colonial expropriation, rapine and conquest by force of arms. In King Leopold’s Congo Free State alone, some 7 million Africans perished as a result of forced labour, genocide and the most brutal abuses known in the annals of human infamy. The Hottentots, a race of beautiful Africans in the Cape of Good Hope, disappeared as a consequence of genocide by the Dutch. The same fate befell the Herero of South West Africa (Namibia) under the Germans in a manner too horrendous for polite historians to recount. After most of our countries received “flag independence” in 1960, the great pan-Africanist Kwame Nkrumah warned against the spectre of ‘neo-colonialism’ which he defined as the next stage of capitalism. Neo-colonialism works through a network of informal empire, economic exploitation, economic hit men, financial scams, debt peonage and special military and intelligence operations to destroy economies, undermine national cohesion and topple legitimately elected governments. Some of the leaders who fell victim to imperialist complot include: Sylvanius Olympio of Togo; Patrice Lumumba of the Congo; Kwame Nkrumah of Ghana; Felix Moumie of Cameroon; Mehdi Ben Barka of Morocco; Eduardo Mondlane of Mozambique; Amilcar Cabral of Guinea-Bissau and Cape Verde; Modibo Keita of Mali; Hamani Diori of Niger; and Thomas Sankara of Burkina Faso. The enemies of our people deploy mass media manipulation and intellectual racism with subliminal messages to spread the evil gospel of Africans’

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There is a grand strategy is position our continent at the bottom of the global hierarchy of nations; a people without a past and without a future – an invisible people

innate inferiority. The Nobel laureate James Watson has been among those in the global scientific community spreading the evil propaganda that Africans collectively have a sub-normal IQ. There is a global conspiracy in Western academia to ensure that Egypt, the cradle of our great African civilisations, is hiked off from the mainstream of our continent. It is a conspiracy that coincides with the historical narrative of the Arabs whose racism against Africans is even worse than that of the Europeans. And I am told that the Chinese character depicting Africa in mandarin Chinese is Feizhou; meaning “the wrong continent” – a jungle where nothing good happens. There is a grand strategy is position our continent at the bottom of the global hierarchy of nations; a people without a past and without a future – an invisible people. Through the machinations of Global Apartheid, we remain excluded from the main currents of world civilisation. Africa has only 3% of the voting rights in the IMF and the World Bank. We are not represented among the Permanent Members of the UN Security Council. All of our ‘Francophoney’ countries remain virtual colonies of France. None would survive if they decided to chart an independent course. France controls their money and their foreign reserves. French companies monopolise their public utilities and have first right of refusal for all mining concessions. The French foreign legion and the Quai d’Orsay call the final shots.

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

Why start-ups fail

man will be imprisoned in a room that is unlocked but opens inwards, as long as it doesn’t occur to him to pull instead of push. Businesses fail for the same reason; the lack of awareness of a few potholes while driving it as a startup. As exciting as that your start up is, know the facts, 80 percent of startups in Nigeria fails in their first 5 years. This can be averted. So before you start another business, or fail with that idea and startup, consider the following; 1. Number of founders: The number of founders in a startup is likened to ingredients needed in a food. And just like salt to food, too little or too much, in this case founders will ruin the taste. From experience, I have come to realize that having 2 to 3 founders is ideal. Take for example, in Apple, it was Steve Wozniak and Steve Jobs, and for Microsoft it was Bill Gates and Paul Allen. For the defunct Mo Hits, it was D’banj and Don Jazzy; Buhari and Tinubu’s Alliance formed the APC. Or better yet, make it 3 founders (Jay-Z, Dame Dash and Biggs Burke started Rocafeller Records). 2. Do the founders complement each other: The Founders Should be Ying-Yang. In the early days of Apple, they had two geniuses, Wozniak could produce anything, and Steve could sell anything. To overthrow the PDP, Buhari had character and popularity, Tinubu had the money and that was a formidable force coming together! Now, over to you, what is your other founder bringing to the table? Skill, network, drive, experience, funds, brand equity? 3. Lack of essence: Really why do you want to

do what you really want to do? I strongly advice that every business should start with a “why”. The “why” should be clearly defined and used to drive the top most level of corporate strategy. Research has established that organizations that start with why would stand the test of time. This is what Jim Collins and Jerry Porras turned into a masterpiece titled Built to Last. Many organizations could not survive for so long because they did not start with why. Organizations like Ford Motors, Toyota , Pepsi, Coca- cola e t c are still in existence because there were some things they got right but which many of their peers that started the same time with them did not get right. If you remember the dilemma of the late Steve Jobs, who was sent packing from the company he created, his dismissal brought in John Sculley, Michael Spindler and Gil Amelio as succeeding CEOs of Apple respectively. And when things took a nose dive, they discovered a need to find the brand’s essence, so they had to bring it back alongside his custodian of the DNA. Steve Jobs came back to Apple after the exit of Gil Amelio, the DNA in him called “simplicity” and “creativity”. That led to the current success being enjoyed by Apple. Purpose refers to the ‘why”. Above all, in life or business, we have to put our purpose (why) before the how (process) as a means to work on the what (product/services). Every now and then, the why should be stated as a reminder of the reason for the firm’s existence. Most business and operational level decision should be checked to ensure that it’s in alignment with the firm’s essence. Take for example Alphabet, the trillion dollar parent

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company that owns Google built their “why” on making all complex form of knowledge easily and affordable (and that has led to the development of Google search, Google Map, Gmail, acquisition of YouTube etc.) what you see in all these subsidiaries is the same ideology of making complex information easily and affordable. Apple’s central ideology is on simplicity. There is no one Apple product you need a manual to use; what else can even be simpler than A for Apple. To increase the chances of having a successful startup, find your own “Why”, define it, start from it and walk through to create your products, staff, culture all in alignment with it. The “why” of great organizations simplifies who they are and all that they know. They seem to have also drawn the ”how” from a complex bunch into a single organizing idea, a basic principle or concept that unifies and guides everything all through. Great firms with why seem to have a template for having the same results over and over again even when they move from an obsolete model or even product to a new one due to market dynamics. 3. Wanting to make money too fast: We project our revenue too high in the first few months of starting up, even little practical feasibility. But in reality, we live in the era of disruptive innovation, the business models for most startups is shifting from trying make money directly and fast too to creating very cheaply, more engagements and well spread payment plan. We need disruptions. Imagine a real estate company in Nigeria that lets people pay for rent monthly or a hotel of 100 rooms that would be owned by 100 different people. What used to be called the collection of

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Nere

EIZU UWAOMA crumbs, is actually how wealth is created over time. In the words of Jack Ma (the richest man in China and founder of Ali Baba) at the World Economic Forum 2017 in Davos, he reminds us that “nobody makes money catching whales. People make money catching shrimps”. Sadly, must startups want to make it now and make it big over a short period of time? Take a good look at the likes of Google, Twitter, WhatsApp, what you’d see is indirect revenue generation while the services are offered up for free over an extended period of time. This is the era people want premium for free, it’s called ‘’FreeMium’’ (we can learn this locally even from your Mallam that sells you Suya, let them taste it, and they’ll buy). In the 21st century, if we can’t test it, we can’t buy it).

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

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The Nigerian healthcare excellence awards (NHEA) 2019 HumanAngle

Femi olugbile

n Friday the 21st of June, it was time once again to celebrate excellence in healthcare in Nigeria. A cynic, or even an ordinary citizen, might be inclined to ask: ‘Excellence? What ‘excellence’’? Indeed, the broad picture of healthcare in Nigeria has been gloomy for several decades now. Despite the announcement, with fanfare, of structures set up by government to achieve the WHO-set Millennium Development Goals, and despite the latter-day razzmatazz created around a purported pursuit of Sustainable Development Goals, Nigeria remains one of the worst places in the world to be born and to live. The nation still has among the highest maternal and child mortality rates anywhere, as well as very low scores on quality of life indices. There is little faith, among the public, in their own health services. Where they can afford it, especially where they see their lives in danger, they seek healthcare abroad. Much of the better-quality service that is available in some private and a few public facilities is unaffordable to the great majority of the masses. Health Insurance, the touted solution that would remove the financial barrier to access, is mired in needless controversy at the national level, and fewer that one

in fifteen of the citizenry are covered by its provisions. Speaking of ‘excellence’ in such a context might appear to be the perfect oxymoron. But beneath the gloomy surface a new and more promising reality is stirring to life. Energy and creativity are being deployed to look at critical issues in new ways. Much of the energy and effort is coming - not from government, but from private sources. The ability of the private sector to play a leading role in the health of the nation is often understated, and, until relatively recently, there was little effort to provoke it into action. The Nigerian Healthcare Excellence Award, started in 2014, is an annual event designed to encourage innovation and good quality programmes and practices in the healthcare industry. The 2019 edition was the most ambitious in scope to date, with hundreds of individual and corporate candidates being nominated and voted for on line by the general public. The enthusiasm of participation and response was evidence that a healthy rivalry was stimulating people in the industry to raise their game and come up with products and services tailored to meet the health needs of the Nigerian public. These could include direct medical services offered by a hospital displaying demonstrably high-quality standards, a pharmaceutical retail chain with excellent customer service, a private dental clinic providing world class, technologydriven services, for example. From the outset, the NHEA Awards took an expanded collegiate view of the health team and its composition, including information technology buffs creating mobile phone platforms that could be used for documenting and educating pregnant women in the most

rural areas, creators of radio, television and internet platforms for educational programmes, and even banks and other financial institutions that were creating products for health finance. The evening turned out to be a gathering of the great and the good. Eminent members of the various professions in the health team – doctors, nurses, physiotherapists, laboratory scientists, app and website designers, bankers were gaily dressed, and taking the opportunity to ‘let their hair down’ and mingle. The buffet dinner at the Eko Convention Hall venue was an exciting mix of local and foreign dishes. In the intervals, comedian Sheyi Shay regaled the audience with smoothly delivered, rib-cracking jokes. After a brief welcome address from the Project Director – Dr Wale Alabi, and an Opening address by the Chairman of the NHEA Advisory Board, Dr Anthony Omolola, the names of nominees in the various categories were displayed on a large screen in front. The winners were invited on stage to collect their awards. Among the categories of awards were the Outstanding State Government Healthcare Project of the year – won by Nasarawa State Government, the Private Healthcare Provider of the Year, won by Lily Hospital, Warri, the Tertiary Healthcare Provider of the Year, won by University College Hospital, Ibadan, a Nursing and Midwifery Excellence Award, and several others. The highpoints of the evening came with the Lifetime Achievement Awards. Professor Oladipo Akinkugbe, now eighty-five, a teacher you had had the privilege of learning from as a medical student in Ibadan, was a world-renowned expert on Cardiovascular and kidney diseases. He had been a Visiting Professor of Medicine at Harvard, and

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Getting into his rhythm, he declared that it was impossible for any government to fund all the health needs of its people purely from its budget

at Oxford, as well as in Cape Town. He has been Vice Chancellor at Ilorin and Ahmadu Bello Universities and held several international appointments. Dr Stella Chinyelu Okoli, dressed in her favourite red, created a buzz of admiration as she went up on stage to receive her Lifetime Award. Stella was the quintessential Nigerian success story – born in the North, raised in the East, trained abroad. She founded Emzor Pharmaceutical Industries in 1977. Over the years, the company has soared into the stratosphere. Her current preoccupation was a WHO-standard Pharmaceutical production facility, newly opened in Shagamu. She had a winsome smile, which enthralled everyone she encountered. Underneath it, as you knew, was a steely, unshakeable resolve. The take-away message for day came, not unexpectedly, from Prof Akinkugbe. Leaning somewhat precariously on his walking stick, he expressed his delight at his award. Getting into his rhythm, he declared that it was impossible for any government to fund all the health needs of its people purely from its budget. His prescription was something similar to the TET-fund – in which 2% of the after-tax profit of all private industry was devoted to Education. He had participated in thinking up the scheme, though he feared it had gone somewhat off the rails. Even half of one percent after-tax private industry profit, dedicated to health, would create a humongous pool of funds and change the face of Nigerian health for good, he averred. There was music, and still more networking, as the night wound to a close. Femi Olugbile is a Writer and Psychiatrist. Comments to synthesiz@ gmail.com’

An Army without a soul

rowing up as a child in the 80s, schooled as a boarder and holidayed in Agodi Army Barracks, behind 2 Mechanised Division headquarters of the Nigerian Army, Ibadan, the Oyo State capital, with my elder brother, life was so orderly. My elder brother was transferred in 1984 to 174 Mechanised Battalion, Ibereko Badagry, Lagos, another serene environment anybody would want to live in and raise up family then. I joined my brother in Ibereko barracks November 1985. In my sojourn in the barracks, I learnt that life could be so orderly that you could predict a lot with accurate precision. The environment so clean with respect for seniority – a lance corporal could not look at a corporal directly on the face, the Sergeant Major could hold the Order Ranks to ransom till the desired result was produced. The Officers were in the world of their own, where everyone knew his/her boundaries and went about their jobs with serious sense of duty. I was so taken in with the orderliness that I made up my mind to go through the Nigeria Defence Academy. I did the exams and was called up in the 1987 Regular Course, but one thing led to another I was not able to honour the call up. However, looking back today to the disorderliness at the larger Nigerian society, I thank God I did not honour that 1987 military call up. But my barracks experience has left me always with a good sense of judgment, discipline, cleanliness and orderliness. (You know I like telling stories, but let’s come to the matter at hand). When the Chief of Army Staff, Lieutenant General Tukur Buratai, attributed some recent operational setbacks suffered by the Nigerian Army in recent times to insufficient willingness and commitment by commanders to perform

assigned tasks, as he declared open a transformational leadership workshop organised by the army for its middle-cadre officers and soldiers, it left my mouth with a sour taste and racing heart remembering knowing a little on how the Nigerian Military is run. It brought me to the belief that the Nigerian Military has been politicised as alleged by some in the past. Another thought that came to mind was – the Nigerian military has lost its steam – this is a pathetic cry of a general without an army – the Nigerian Army that was once adjudged as Africa’s best by the United Nations due to its various exploits in UN peacekeeping activities across the world. And I concluded that the Nigerian military has lost the very soul that binds it together – selflessness, professionalism, discipline and orderliness. However, I likened the situation to the era of Babalola Borisade as aviation minister under whose administration Nigeria witnessed series of air crashes. Recall that on October 22, 2005, 117 people died when a Bellview Airlines’ Boeing 737 plunged into the mud in Lisa village, Ogun State, shortly after take-off from Lagos airport. Barely seven weeks after, a Sosoliso Airline DC9 crashed on landing in Port Harcourt airport, killing 106 people, half of them children on their way home for holiday. Exactly a year and a week after (October 29, 2006), another unforgivable crash occurred, claiming the lives of about 100 people. The aviation minister saddled with the responsibility of this ministry came out boldly to tell world: “I will not resign because I do not have divine power to stop aviation disaster.” That same period a Japanese Air Force plane collided with a Boeing 747 plane and the Japan defence minister resigned, taking the blame.

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Similarly, a young man flew an aircraft from Germany to Moscow and landed at the Red Square without clearance, the Russian defence minister was sacked. But Nigeria keeps managing people even when they are not performing and constituting stumbling blocks to actual progress (I am not insinuating anything, I am just trying to make sense of what I think). This confession is a dangerous precedent that if not immediately checked can lead to chaos, and compromise the very essence of the Nigerian military and what it stands for. This is a serious indictment, not only on him but also on all the service chiefs and the military hierarchy. This shows that the army hierarchy in particular and the military in general are tired of seeing the same old wine in new wineskin. Another big issue is – as anyone or the Presidency cared to know why the commanders are disgruntled and unwilling to perform their tasks, bringing about these various and serious operational setbacks the nation has experienced in such a short while – the human and material casualties. The military I knew then was totally different from the military of today. It is sad to say now that the present formation of the Nigerian military is a combination of confused personalities without specific direction (my humble opinion). Buratai said further at the workshop, “It is unfortunate, but the truth is that almost every setback the Nigeria Army has had in our operations in recent times can be traced to insufficient willingness to perform assigned tasks: or simply insufficient commitment to a common national/ military course by those at the frontlines. “Many of those on whom the responsibility for physical actions against the adversary

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OSA VICTOR OBAYAGBONA squarely falls are yet to fully take ownership of our common national or service cause. “I, therefore, believe that the transformational leadership workshops will again remind and clarify to participants what our President and Commander in Chief meant by: ‘This generation and indeed, future generations of Nigerians have no other country but Nigeria; we must remain here and salvage it together.’ “Although the President made the remark about 35 years ago, it was “still relevant today given as we see in some cases that apathy has even increased among the younger generations. “I charge you all to lead, follow or get out of the way.’’ The fight against insurgency will never be won if there is, first no reorganisation of this crop of commanders and restoration of the soul that once bound the Army together. However, a week after the sad confession, the army chief said the media exaggerated most of the reports, describing it as “mere propaganda.” Refuting this now is truly unfortunate, and a sad situation at that. Osa Victor Obayagbona is assistant News Editor, BusinessDay

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A major turning point: informal sector inclusion in new mortgage law

he federal government’s ambitious target of raising financial inclusion to 95 percent by 2024, up from 54.2 percent at the moment, raises high expectations for the informal sector of the economy and gives more impetus to the new mortgage law in the financial system. The new mortgage law, also called uniform mortgage underwriting standards, gives more attention to the informal sector and intends to bring its 55 million workers into the mortgage and housing net. The launching of this law also called uniform mortgage underwriting standards, by the Central Bank of Nigeria (CBN) in conjunction with mortgage banking association of Nigeria (MBAN), Nigeria Mortgage Refinance Company (NMRC), Federal Mortgage Bank of Nigeria (FMBN) and the Nigeria Deposit Insurance Corporation (NDIC) marks a major turning

point in the growth of Nigeria’s mortgage system. The expectation is that the new mortgage law, which is an aspect of financial inclusion, is going to be a game-changer for the economy in the area of housing and home-ownership. It won’t only increase access to housing, but will also narrow the affordability gap which is the reason for the wide housing demand-supply gap. Operators in the mortgage sector reason that housing deficit in the country remains the same because of the exclusion of the informal sector which is the largest segment of the Nigerian population and accounts for over 60 percent of the country’s GDP. But the new mortgage law has put these fears to rest as it will capture the self-employed and business owners categorised under the Micro, Small and Medium Enterprises (MSME) which has the potential to contribute more than 58 per cent to the country’s GDP. In an ideal mortgage system, anyone who earns up to N3,000

and above is entitled to a mortgage loan but a lot of people, especially those outside the formal sector, are not benefiting. It is, therefore, commendable that the CBN and others came up with this law. It is, however, regrettable that the impact of the law is scarcely felt at both housing and mortgage sector levels, fuelling the fear that it might go the way of most government social housing initiatives. The private sector element in this law raises hope that it will succeed. The CBN is confident that the new initiative will give those without structured salaries access to mortgage loans for their housing needs. We commend other efforts by the CBN at giving fillip to the plans to introduce a public private partnership scheme that seeks to increase access to housing finance by selecting 34 primary mortgage banks and four commercial banks to stimulate housing finance for low-income earners in the formal and informal sectors. The banks will join nine oth-

er micro finance banks in ‘My Own Home’ scheme, which is an offshoot of the Nigeria Housing Finance Programme (NHFP) set up by the Federal Government and implemented by CBN with the support of World Bank’s $300 million loan. It is expected that NHFP will be strengthen the nation’s housing sector by setting up a sustainable framework by mortgage originators such as financial institutions to access long-term refinancing. The scheme is also expected to scale-up mortgage and housing finance awareness through mortgage literacy, customers’ right, responsibilities and education. No doubt, all these efforts will revamp the housing finance sector and also make access to housing finance a lot easier for the informal sector. Along with the NMRC whose mandate is to increase liquidity in the mortgage system and create long-term funds for refinancing of mortgages, the mortgage net will be big enough to take all, including the informal sector.

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How Nigerians are switching off national lights Tales from the main road

Eugenia Abu

love my country very much but there are so many warts we need to talk about. As we approach another four-year term for governance and accountability, let’s pause a little bit and see where the citizens have a role. I have visited many countries in the world and although Nigeria has many unique qualities which I cherish, nowhere have I found so much blame game and so much hate especially online. I am at my wits end when I run into a conversation on ethnicity where there are bullish positions about an ethnic nationality. These positions are often not based on any empirical evidence or knowledge of the people. It is often based on hearsay, warped narratives from an older generation, whole slices of untruth and largely based on emotions. We live by generalisations, rumours and gist about certain peoples and communities. We live by suspicion. And even when we find out the true state of things, we continue on our falsehood trajectory because it pays us politically and can assist us to whip up the emotions of our people and gain us popularity and political currency. There are so many truths left un-

said, recreated or whitewashed and those responsible are feeding fat on the destruction of our national psyche. This whole conundrum is getting more worrisome because some of our elite are partaking in this unfortunate destruction by telling stories that can easily be called to question and some of our intelligentsia and academics have followed suit for a mess of pottage. It is tragic. Those who are not so educated in our communities consider the literate their role models and these educated persons have turned against their nation in the most ignoble manner. They shout wolf where there is none, they play high stake ethnic cards and are in any committee or organisation for the beer. All of this while the youth are lost, depressed and committing suicide. There is no nation where I find so much disconnect and bootlegging. People do not really care about the next person and humanity has taken a vacation. Selfishness and immorality seems to have eaten deep into our national ethos and all people can think about is “What is in this for me?” A few years ago, a diplomat friend of mine told me that we run Nigeria like a deal rather than like a business. I was quite offended but when he broke it down, nothing was amiss. He told me he loved Nigeria, the food, the culture, the people, the hospitality but it’s been managed like a pirate’s ship, everything is done not through process but by way of “man know man”. He said a lot of decisions taken in an office space that should be done publicly is done secretly by a small group of people and everything is addressed like a backroom deal. While I was crest

fallen, there was nothing to take away. I have seen those kinds of behaviour first hand and I have been dealt a bad hand by these persons who abhor efficiency and due process. Unfortunately, these are the same persons and sometimes the worst of them who have been taking bribes to deliver a file to you or who demand money at airports who end up holding important positions in the future. They form themselves into a cabal and reward themselves with these positions. In the end you are stuck with the guy who never gives change after a purchase, whose religion is nepotism, an ethnic jingoist, who has no knowledge of the job and bought his degree while in school. You know them and their antics. Then They are now your boss or representing you. They are arrogant empty vessels and again Nigeria takes a nosedive. Nigeria has very many bright lights, brilliant people who can stand shoulder to shoulder with the best in the world but we are throwing up the worst of us and they are representing us everywhere and the same tar brush is used to judge us all when a Nigerian not worth his salt has to attend meetings on behalf of all of us elsewhere in the world. Any school, scholarship or opportunity that comes our way, we do not think professionalism, we think my brother, my daughter, my brother’s wife etcetera. Everything is a deal. Any wonder then that slowly we are becoming a laughing stock in many spheres. I love my country but I wonder about those who have been switching off our national lights and getting away with it. Here are some of the ways you have been contributing to national darkness and please do not ascribe it

‘

Nigeria has very many bright lights, brilliant people who can stand shoulder to shoulder with the best in the world but we are throwing up the worst of us and they are representing us everywhere and the same tar brush is used to judge us

to your Governor or the president or the MD. I am not excusing them in their leadership roles and responsibilities but we have a part to play and we are abdicating and doing what we know how to do best. Playing the blame game. You switch off our national lights when A) you break traffic lights and someone dies or gets hurt. B) you carry fake news on line or tell an untruth online, sometimes people die. C) you give a job to your wife’s sister even if she was not qualified, you just darkened the nation. D) you spoil your children, feed them fat on stolen money and tell them no one other than them matter. You have held down the national switch. E) you doctor an office report to favour you. F) When you seek for your tribes’ man even when there are already four of them in your office and you just give them the job just because, you have killed a job seekers joy. These are just a few ways in which we do things without a care in the world and hurt other people because of our selfishness and new arrogance to boot while doing the wrong things or perfecting emotional bullying in offices when you all know the truth. A Nigerian bank has just introduced random kindness as a mantra. I salute you. You just turned on some megawatts of the national light. Enough said. Eugenia Abu is a broadcaster, writer, trainer, band and multimedia strategy expert and media consultant. Contact. abu_eugenia@yahoo.com

How deeply customer focused is your organization?

imply ask about ten CEOs and their employees how customer oriented their organizations are, and you will be amazed at their glowing answers. They will always answer in the affirmative. Why then do we have customer service failures in various organizations? What most organizations have not realized is that, they are not meant to be the judge on how well or exceptional they customers have being treated or served. They are not to set questions for themselves to answer. The customers will have to decide who is serving them well or not. In order words, exceptional customer service should be viewed from the angle of the customer and not the organization. It is possible to think that you have treated a customer well and that same customer is not thinking so. Your services and products should be tied to the needs of the customer. In the last decade, organizations have made huge investments training their employees on customer service. Personally, I think training on customer service has surpassed other areas, and that means that most leaders of organizations know the benefits of treating the customers well. Truth be told, treating customers aright is not only for leaders or senior management in organizations but for all employees – on payroll. Every employee must be an advocate of an exceptional customer service. Like Walt Disney said, “Do what you do so well that they will want to see it again and bring their friends”. Let this question be on the lips of every employee at any given service rendered: Sir/ Ma, with this service I have rendered to you, would you be able to bring your friends or relatives to patronize us? A yes answer means you have done very well, while a no answer (or not yet) means you still have more work to do. Serving the customers in a way that will create an unforgettable experience for them is a choice

that all employees MUST have to make. Let’s paint a picture on our minds. We all hold parties when it is necessary. During the party, the host has just one thing in mind, and that is to ensure that all the invited guests are well taken care of. What the host has done is to “focus on the outcome”. You might ask: does holding a party has any correlation with running an organization? The answer is yes. Both cannot do without guest (people or customers). Any organization that opens its door for business is holding a party and requires guests to attend (requires customers to patronize). The way out to resolving customer service failure is to begin to see our customers as invited guests to a party in which we are the hosts. It’s our job to make their stay all through the party very comfortable. It is also every employee’s job to make every important aspect of the customer experience a little bit better. Points to ponder: It is no more enough for organizations to assume they are customer focused by mere word of mouth. To determine if your organization is really customer-focused, all you need to do is check whether or not you have the followingcharacteristics: • Are you “close to the customer”-especially senior executives (i.e., do you see, touch, feel, meet and dialogue with them face-to-face on a regular basis out in the marketplace)? • Do executives include the customers in their decisions, focus groups, meetings, planning and deliberations? • Does your organization know and anticipate the customer’s needs, wants and desires--continually, as they change? • Is surpassing customer needs the driving force of the entire organization? • Do you survey the customer’s satisfaction with your products and services on a regular www.businessday.ng

basis? • Does your organization have a clear “positioning” in the marketplace vs. the competition in the eyes of the customer? • Does your organization focus on Creating Customer Value--i.e., “value-added” benefits to the customer such as: Quality and reliable products and services, Individual Customer Choices, Customer Responsiveness, delivery, speed, Customer Service, relationships? • Does your organization set quality customerservice standards and expectations that are specific and measurable to each department? • Are each department’s customer service standards based on customer input and/or focus groups? • Does your organization require everyone to experience moments of truth by meeting and servicing the external customer directly...at least one day every year? • Does your organization focus and reengineer the business processes based on the customer needs and perceptions...and do it across all functions? • Is your organization structure focused and based on the marketplace--i.e., structure the organization by customer markets (1 customer =1 representative)? • Does your organization reward customerfocused behaviors (especially cross-functional teams) that work together to serve the customer (both internal and external)? • Does your organization have a clear policy... and the heavy use of Customer Recovery Strategies (CRS) to surpass customer expectations? • Does your organization hire and promote “customer friendly” people? Final note: Organizations exist to deliver customer value.

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FRESH INSIGHT FOR CHALLENGING TIMES

‘Uju Onwuzulike’ Serving the customers is not only the job of “Customer Service Officers”. It is the job of all staff members. I like the words of George Patton, “always do more than is required of you”. For your organization to be customer focused, every employee would have to aim at doing more than is required of him/her. Giving the customer just what he wants may not yield more results for your organization in the long run because everybody is doing that. Going the extra mile to serve him/ her is not done by everybody, so when you do you are likely to capture their minds and hearts. Finally, I would say, do all you can to keep your customers happy and remember if you don’t take care of them, your competitors will gladly do. As always, I welcome your comments, questions or requests. A very trusted advisor. Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju.onwuzulike@mclgroup.net.

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friday 28 June 2019

BUSINESS DAY

cityfile

Group raises alarm over deforestation, encroachment on wetland INIOBONG IWOK group, Rethinking Cities, has raised alarm over continued deforestation and encroachment on wetland in the country. Speaking during a tour of some encroached wetland in Lagos, the founder of Rethinking Cities, Deji Akinpelu, blamed encroachment on wetland and deforestation for the flooding being experienced in states across the country. Akinpelu warned that deforestation had become a danger due to increasing urbanisation, adding that the group has begun sensitisation campaign to create public awareness. “What we intend to achieve is to help address the challenges of urbanisation in Nigeria and Africa; the cities are fast developing, people are moving to the cities every day and challenges are cropping up. We can’t fold our hands and watch, we have to do something or else fast. “O n e o f t h e maj o r causes of this is that the wetlands that supposed to

L-R: Ayo Badmus; Ebun Oloyede, both nollywood actor; Funke Oguntuga, executive director, Heartminders Initiative; Musiliu Akinsanya, treasurer, National Union of Road Transport Workers (NURTW), Lagos State; Segun Olulade, former member, Lagos State House of Assembly, and Shakirat Bello, project coordinator, Heartminder, at a walk against rape and other sexual harassment organised by Heartminder Foundation in Oshodi Lagos, on Wednesday.

Ondo: Agency seizes 6,703kg of illicit drugs in 6 months REMI FEYISIPO

ational Drug Law Enforcement Agency (NDLEA), Ondo State command said it has seized 6703.71 kg of hard drugs and other psychotropic substances in six months. A psychoactive drug or psychotropic drug is a chemical substance that changes brain function and results in alterations in perception, mood, consciousness, cognition, or behaviour. The NDLEA commander in the state, Haruna Gagara, said this in Akure on Wednesday at

the 2019 United Nations Day against drug abuse and illicit trafficking. The programme had the theme “health for justice, justice for health”. Gagara listed some of the drugs seized by the c o m ma n d to i n cl u d e 5784.61Kg of Cannabis Sativa, 917.04 of psychotropic substances, 2Kg of ‘Skuchies’, 42.1 grams of cocaine within the period. The commander revealed that farms of cannabis sativa measuring 188 hectares were destroyed, securing 22 convictions. Gagara said during the same period of six months, 119 suspects were arrested during the same period. “In the areas of Drug Demand Reduction

(DDR), the command admitted nine clients, while six clients were successfully counselled and discharged. “61 suspects between the ages of 14-50 years are also referred for counselling from the supply reduction unit. “Public enlightenment and awareness campaigns were carried out in 16 different locations within the state. “Based on the statistics above, it is imperative that governments, communities, families, schools, NGOs and media should take necessary steps to counteract drug abuse and illicit trafficking in the state,” he said. Gagara noted that the level of drug abuse and

illicit trafficking in the country posed threats to security of the Nation, and also the health of citizens who indulged in nefarious activities. “The teeming number of Nigerian youths currently undergoing counseling and rehabilitation for drug abuse is quite alarming and devastating. The rising number of Nigerian youths suffering from one form of mental illness or the other due to substance abuse has continued to be on the increase. “To provide justice for health, we need to promote humane conditions of imprisonment to ensure health for all and justice for all,” he said.

13 kidnappers, others nabbed in Kebbi

he police in Kebbi have arrested 13 suspected kidnappers and 32 other criminals under ‘Operation Puff Adder’ introduced by the Inspector General of Police, Muhammad Adamu to crack down on criminality in the country. The Commissioner of Police (CP) in charge of Kebbi, Garba Danjuma, said in Birnin Kebbi, the

state capital, on Thursday, that the arrests were made from May till date. “Various weapons, including handsets, laptops, cables, knives and cutlasses have been recovered. Also arrested are three suspected informants to the kidnappers. They specialised in giving information to kidnappers who are terrorising Zamfara and Kebbi states’ border towns through Bena diswww.businessday.ng

trict of Danko/Wasagu area,” Danjuma said. The operatives of the state police command also arrested persons suspected to be involved in armed robbery, motorcycle theft, rape and possession of illegal weapons. The police chief urged the general public to key into community policing system and be willing to always share i n f o r mat i o n w i t h t h e

police to check crimes in the state. It would be recalled that the state police command launched the “Operation Puff Adder” on April 23, 2019, targeted at wiping out banditry and other criminal activities in the state. The operation was earlier inaugurated by the IGP to tackle security challenges in the north-west and other parts of the country.

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store this water has been taken over for building,” Akinpelu said. He further urged state and federal governments to promulgate laws to check the act. “Government at all levels must enact laws that would check deforestation and encroachment on wetland; we are interested in finding solution to this problem; areas meant for wetland and public recreation should be preserved for such,” he added. Also speaking at the event, the general manager of Lagos State Park and Garden Agency (LASPARK), Bilikis AkinbiyiAbiola, said that the agency was working to check flooding in the state by safe-guarding wetland. Abiola warned against deforestation and indiscriminate felling of trees. According to her, “we are stepping up effort to safe guard our wetland and check deforestation across the state, the wetland are under treat; we would turn some of them to conservation centres just like we have in Lekki, this would boost tourism.

Women lawyers promise legal service to victims of abuse IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

he International Federation of Women Lawyers (FIDA), Edo State chapter has promised to offer legal service to victims of sexual assault and violence against any girl child in the country. Iryn Omorogiuwa, the chairperson of the organisation gave the promise while speaking with journalists in Benin on Wednesday to mark the 2019 international day against drug abuse and illicit drugs with the theme. Omorogiuwa, who condemned substance abuse in the society, said the body will continue to fight against drug abuse menace. While encouraging students to speak up and stay away from substance abuse, she noted that laws have been enacted to address sexual violence and vowed not to relent in the fight against it. Omorogiuwa noted that as part of efforts to fight against the menace of sexual violence and drug abuse, the body has embarked on awareness programme to @Businessdayng

select schools to educate pupils and students. According to her, as regards the issue of sexual violence, the students are encouraged to “Speak Up” whenever there is any issue of sexual violence. There are laws that have been enacted to address sexual violence in the society and there is absolutely no reason for any child to suffer in silence. “To effectively handle the drug problems in the society, the health institution must work in tandem with accountable institutions of justice to provide solutions that tally with international drug control conventions, human rights obligations and sustainable development goals. “The message being communicated to the children is that substance abuse is injurious to the health of the individual and such abuse of drugs can also lead to a situation where the individual gets into problems with the law. “The children in these schools are encouraged to be vigilant and ensure that they are not led into abuse of drugs,” she said.

Friday 28 June 2019

BUSINESS DAY

COMPANIES & MARKETS

First Bank to redeem $450m notes ahead of maturity

COMPANY NEWS ANALYSIS INSIGHT

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Nigeria bourse suffers biggest half year loss in 5 years …analyst show H2 performance prospect on defined conditions DAVID IBIDAPO

ith two days to wrap up trading in the first half of the year 2019, investors’ value on the Nigeria equity market has suffered the worst performance against corresponding periods in the last five years. This is despite impressive performance churned out during the first quarter of the year and positive outlook for companies’ earnings in the second quarter. Still maintaining its bearish trend, the Nigeria all share index (ASI) which measures the aggregate performance of listed shares, on Wednesday dipped marginally by -0.20 percent to record a year to date (YTD) performance of -5.80 percent. Global and domestic event and investors reactions “The first half of the year was largely influenced by negative sentiments of investors towards the general election which brought about rising tension in the political space and also the results of the election. Investors weren’t too happy,” Gbolahan Ologunro, analyst at CSL stockbroker told BusinessDay. The first half of 2019 highlighted some unique events which had impacted the performance of the NSE. In Q1 2019, Nigerians went to the polls which saw the re-election of President Muhammad Buhari.

The ASI upon the completion of the election which took place on the 23rd of February slumped -13.49 percent to its lowest level since May 26th2017 (1 year 6 months). This was triggered by negative sentiment of investors to the election process and results. Also, while investors awaited clear policy directions from the re-elected administration, impressive results from listed companies were not sufficient to provide a boost for the market. During the period, investors lost a whooping sum of N1.52 trillion

in market value of shareholdings between Feb 25 and May 15 2019. While the bearish trend could have continued to prevail, the listing by introduction of MTN shares on the NSE provided a temporary boost in market performance which lasted for a period of about 2 weeks. The introduction of fresh capital into the market through MTN’s listing increased total market value to about N13.7 trillion from N10.6 trillion. The performance however of the equity market has been hinged on

some defined conditions in which analysts believe would improve general sentiment amongst investors. The CBN on Monday highlighted its policy direction for the Nigerian economy in the next 5 years which has brought some form of calmness, stability and confidence to investors who perceive clarity in monetary policy. Amongst points highlighted was stability in exchange rate, recapitalization of banks to build a stronger sector to mention but a few. “Investors are most interested

now in what will be the direction of fiscal policies in the next 4 months,” Ologunro added, “Formation of the cabinet, released of funds since the budget has been signed should go a long way to boost investors’ sentiment in the market.” Factors in the global space also pose a threat to investors’ reaction to the equities market. While the trade tension between the U.S and China prevail, the ability of the two world giants to reach an agreement will spur foreign portfolio interest in emerging markets in which Nigeria offers a better option. Also rising prospect that the U.S fed would cut rates in the fourth quarter of 2019 is anticipated to stimulate performance. “This will make carry trade more attractive for FPIs,” Ologunro posited. Improvement in trade relations within the external economy space and the move to see through major reforms in certain sectors; such as the oil and power sectors in the domestic space, are likely to improve market sentiments in the second half of the year. More so, excitement around the initial public offering (IPO) of Airtel shares is anticipated to provide some boost just as in the case of MTN’s listing by introduction. However, Ologunro stated, “we might see an artificial scarcity in the early days of trade in Airtel shares and I do not think it will record the quantum of gains we saw on MTN.”

C&I Leasing partners OCS Services DMCC, records impressive Q1 result OLUFIKAYO OWOEYE

&I Leasing Plc has announced a joint venture partnership with Indian- based OCS Services DMCC. The joint venture would operate under the name OCS Service Integrated service Nigeria Limited will operate and maintain offshore assets of the company including its Floating Production Storage and Offloading (FPSO) Sangram Dhote, Senior Vice president, operation and maintenance said the new JV will be a win-win for all stakeholders and merits of the partnership are undeniable. Noting that OCSISNL will provide a mix of technical expertise, operational efficiency and local understanding and service delivery Also Andrew Otike-Odibe, MD C&I Leasing Plc said the joint venture will offer excellent, differentiated services in the Nigeria oil and gas sector. The support and logistics company recently announced its highest bottom line figure in 5 years driven by stronger earnings in the first quarter of 2019. Profit after tax increased by 6.82 percent in the first three months to March 2019 to print N398.46 million compared to N373 million recorded in the same period a year ago. Gross

earnings surged 21 percent to N7.81 billion in the quarter, its highest gross earnings in 5 years. The company has consistently grown revenue year-on-year in the first quarters of the last three years since profit dipped 56 percent from N219.7 million posted in 2015. C & I Leasing provides transportation logistics solutions in the form of car and marine rental, fleet management as well as human resource solutions. Its support services are provided along three business lines; fleet management, personnel outsourcing and marine services. In Q1 2019, net lease rental income rose some 26 percent to N2.96 billion owing to a 26 percent increase in lease rental income, from N4.37 billion in Q1 2018 to N5.51 billion, although lease expense rose by the same magnitude to N2.55 billion in the review period. Outsourcing income improved by 25.75 percent from N 1.63 billion in Q1 2018 to N2.1 billion Q1 2019. Outsourcing expense increased by 27 percent to N1.85 billion with Net outsourcing income amounting to N202.83 million, 15 percent over Q1 2018 figures. Similarly C&I leasing was able to grow revenue from Tracking segment, with a 59 percent increase in net tracking income which hit N33.22

million in Q1 2019 from N20.89 million in the equivalent quarter of 2018. The increase was fuelled by a 35 percent rise in income from Tracking while corresponding expenses increased by 7 percent in the period. C&I’S interest income ballooned

by 1000 percent as its bank deposits earned an interest of N12 million in Q1 2019, as against N53,000 in Q1 2018. Other operating income declined by 81.46 percent and income from joint venture appreciated by 44.67 percent.

The support & logistics company faced higher finance cost in the quarter which rose by 16 percent in the quarter but had 70 percent less impairment charges. personal, depreciation and other expenses grew in the period.

L-R: George Thorrpe, chairman of the occasion; Chris Ogbechie, professor of strategic management, Lagos Business School, and John Ajayi, publisher/CEO, Marketing Edge, at the Marketing Edge National Marketing stakeholders summit and the brands and advertising awards of excellence in Lagos.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: David Ogar

Friday 28 June 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

BANKING

First Bank to redeem $450m notes ahead of maturity …as lender’s foreign currency liquidity strengthens SEGUN ADAMS

irst Bank of Nigeria Limited, the largest subsidiary of FBN Holdings, intends to redeem its fixedrated subordinate note held by its Netherland-based subsidiary FBN Finance Company B.V., two years ahead of maturity, it said Wednesday. The US$450m, 8% subordinated notes raised from the international debt market are due in July 2021, but the Bank plans to exercise its option to call and pre-pay holders at the next callable date of July 23, 2019, it said in a statement filed to the Nigerian Stock Exchange Wednesday. A subordinate loan or ju-

nior debt is a debt instrument which ranks below other loans and securities in terms of repayment or claims on an asset of the issuer. In events of default, holders of senior debt would be fully settled first before holders of junior debt notes. According to the tier-one lender, the early redemption demonstrates the bank’s strong financial position. “This liquidity management exercise demonstrates the strength of the Bank’s foreign currency liquidity and robust capital base,” FBN said in the statement, noting that the move would further enhance the efficiency of its balance sheet. First Bank of Nigeria is

a tier-one lender with over 10 million active customer accounts and more than 750 business locations. With over 120 years of quality service delivery, the bank has spanned beyond the African continent and currently operates across Africa, Europe, the Middle East and Asia. First Bank grew net profit in Q1 2019 by 7 percent to N15.79 billion from N14.77 recorded in the corresponding period of 2018. The improvement in its bottom-line was despite a 2.1 percent ease in net interest income which stood at N 74.18 billion. First Bank was able to record significant gains in other revenue segments.

L-R: Bukola Ayinde, founder, Diary of A Special Needs Mum Initiative and P4: 13 Foundation; Uwasomba Ginikachi, student of King Emmanuel Progressive College/third position; Sola Saidat Lamina, student of Iju Senior Grammar School/second position; Ayanfeoluwa Opral Ogbonna, student of Dowen College, Lagos/ first position; Adetokunbo Ayo-Ogunsanya, head HR/Admin, Inlaks Limited, and Lawrence Ayinde, director, Diary of A Special Needs Mum Initiative and P4: 13 Foundation, at the grand finale of Essay and Think Tank Competition for secondary school students in Lagos State at British Council, Ikoyi, Lagos

FMCG

Stakeholders advocate need for corporate disclosure in FMCG industries ENDURANCE OKAFOR

ndustry players in Nigeria’s Fast Moving Consumer Goods (FMCG) sector have encouraged companies to up their game in corporate disclosure to enable them attract investments. The need for firms in the FMCG industry to ensure full disclosure of their operations to the general public is due to the fact that there is increasing level of investors expectation, the industry stakeholders said. “Public companies are more successful in raising private capital for the simple reason that a number of due diligence box has been ticked,” Olumide Bolumole, the NSE Divisional Head, Listing Business said at the 2nd Investor Relations conference held recently in Lagos. Corporate disclosure refers to the act of releasing all relevant information on a company that

may influence an investment decision—making public both positive and negative news, data, and other details about its operations, or that impact its operations, in a timely fashion. All the quoted companies on NSE are required to comply with some rules and regulations, including strict adherence to high disclosure standards as prescribed in Appendix 111 of the NSE Listing Rules. The sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange. Under the rules, a late submission attracts a fine of N100, 000 daily for the first 90 calendar days of noncompliance, another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of

submission. A Lagos-based analyst who asked not be quoted said it is usually challenging when trying to get detailed information from listed Nigerian FMCG companies talk less of the private ones. “When some of them release their financials, to get a response to a simple question like- what were the drivers of your last year performance or what happened to pricing. Most basic questions like that won’t be answered, in fact you get more answers about the Nigerian subsidiary from their UK office than the office in Nigeria,” the analyst lamented. According to Ladi Daodu, the CEO of Sierra Partners Limited, if the issue of disclosure and preparing of private businesses can be sorted, it will go a long way in defining how the investment market and the business landscape in Nigeria will be going forward.

APPOINTMENT

Mastercard’s MEA president appointed to US President’s Advisory Council on doing business in Africa JUMOKE AKIYODE-LAWANSON

aghu Malhotra, president of Mastercard Middle East and Africa, has been appointed to the U.S. president’s Advisory Council on Doing Business in Africa (PAC-DBIA). The PAC-DBIA is an important forum for dialogue between the United States public and private sector, and advises the president on ways to strengthen commercial engagement between the U.S. and Africa. The appointment was announced at the Corporate Council on Africa U.S.-Africa Business Summit in Maputo, Mozambique. Malhotra will serve a twoyear term on the PAC-DBIA, and joins other private sector

leaders on the council. In his advisory role, he will draw on his expertise and understanding of African markets, where he has led Mastercard’s transition to being a pioneer in bringing new electronic payment solutions and services to the continent, helping to advance social progress and inclusive growth. Raghu Malhotra, president of Mastercard Middle East and Africa, said: “I am deeply honored to be selected to serve on the PACDBIA, and support its mission to help bridge the gap between the U.S. and African public and private sectors. Africa is home to 54 countries, each at different stages of development, and is well-positioned for tremendous socio-economic growth.

Both Mastercard and PAC-DBIA share a commitment to advance opportunities across the continent, and use technology to pave the way for a brighter, more inclusive future by unlocking its immense economic potential.” Malhotra holds a number of board and advisory positions across international markets. He sits on the board of directors of both the US-Africa Business Center (part of the US Chamber of Commerce in Washington) and INJAZ (Junior Achievement Worldwide). He also sits as an observer on the board of directors for Network International, a company publicly listed on the London Stock Exchange and is a member of the World Economic Forum Africa Business Council.

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L-R: Folasope Aiyesimoju, GMD/CEO, UAC of Nigeria Plc; Daniel Agbor, chairman, and Godwin Samuel, company secretary, during the company’s annual general meeting in Lagos, yesterday. Pic by Olawale Amoo

L-R: Chinwe Odigboegwu, senior commercial legal manager, Guinness Nigeria (Diageo); Rotimi Odusola, legal director, Guinness Nigeria (Diageo); Bidemi Ademola, general counsel, Ghana and Nigeria, Unilever and Nankunda Katangaza, director, Hook Tangaza during a conference for general counsel and senior inhouse lawyers organised by Nigerian Bar Association-Section on Business Law (NBA-SBL) and International Lawyers For Africa (ILFA) at Eko Hotel

L-R: Adenike Ibrahim, head of sales, Propertymart Real Estate Investment Limited; Semira Oguntoyinbo, executive director, Palton Morgan Holding; Ogechi Onyedum, an allottee, and Abimbola Arasi, deputy managing director, Propertymart Real Estate Investment Limited, at the 2nd physical allocation of plots of land to subscribers of the Fairmont Advantage.

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Friday 28 June 2019

BUSINESS DAY

MONEYINSIGHT

Are Nigerian bank branches facing extinction? FRANK ELEANYA

any Nigerians now hesitate to recall the last time they visited a bank branch to carry out a transaction. One of the notable achievements of financial technology (Fintech) is the speed of adapting to the new location of the 21st century customer. The consequence of a social media boom is that people spend less time offline and more time online. The growth of mobile phones has also contributed significantly to this migration from physical places to virtual platforms. The National Bureau of Statistics (NBS) in March 2019, said Nigeria’s active mobile subscribers hit over 172 million in the fourth quarter of 2018 from more than 162 million the previous quarter. The NBS also revealed that a total of 106,420,858 and 112,065,740 were active on the internet in the fourth and third quarter as against 103,514,997 in second quarter of 2018. For Fintech businesses and players, the numbers represent immense opportunities for growth. A major staple of fintech is the development of new financial technology products and services that are not limited by physical spaces. Fintech companies utilise technology as widely available as payment applications to more

complex software applications such as artificial intelligence and big data. Unlike traditional financial institutions, fintech businesses are nimble, flexible and aim at providing the most convenient service to customers. These services have so revolutionised the way people perceive banking that even banks are adapting and are beginning to compete for the front end of fintech in Nigeria. As banks embrace fintech, the physical branches that used to

Online micro-lenders maybe proliferating, here are some points to note STEPHEN ONYEKWELU

imidoo Kyado (not real name) got a call from Carbon (formerly Paylater) informing her she has defaulted for three consecutive months on her repayment of a N50, 000 loan at 20 percent interest, taken without collateral. Carbon, an online micro-lender had extended the loan to Mimidoo within two minutes after she had applied for same. This, she thought was easy money and she had planned to stay committed to the monthly repayment but failed to prioritise this in her monthly personal budget. Credit direct, Carbon (formerly Paylater), Lidya, Kiakia, Zedvance, Branch, and Renmoney are among emerging online micro-lenders helping individuals and businesses meet their credit needs. Most of these micro-lenders claim to disburse loans within 24 hours without collateral, although when interest rates are considered it could be quite a steep price to pay. While low-interest rates are available, it is often subject to the credit rating of a potential borrower and could be as high as 60 percent when annualised. “Speed to market and convenience,” said Adedoyin Onayemi, head, cognitive risk and innovation, Credit Direct, are why the platforms continue to enjoy patronage. A point that needs to be made is how this easy, quick money can lead to both fortunate and unfortunate outcomes. Kahinde heaved a sigh of relief, she had just paid off a micro loan of N30, 000 spread over a three month payment period at 20 percent interest rate per month

with Carbon, an online micro-lender. Seven days afterwards, she got this message from KwiMoney, another Fintech Company “You’ve been selected 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 great payment history with Carbon. In fact, she makes it a point to pay off her micro loans 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 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 eventually did. Before she paid off the micro-loan, she attempted to take another with Carbon but she was told she did not qualify. She was very surprised 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 become 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 the 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. www.businessday.ng

host a lot of people are thinning out. A recent study by Expert Market forecast the complete disappearance of all ATMs by 2037, while bank branches while become extinct by 2041. “We are a digital bank, which means we don’t have physical branches (because you won’t need them),” ALAT, the fintech arm of the decades old bank Wema Bank Plc, said in 2018 at a fintech function. “You’ll be able to do everything (sign

up, request and activate a debit card, pay and save), on your phone.” ALAT’s sentiments on physical branches have also been echoed by GTBank’s CEO Segun Agbaje. At the Social Media Week in Lagos in 2017, he noted that the bank is already planning for a future where 90 per cent of customers’ needs will be done through mobile phones. He also reiterated the resolve at the Social Media Week in 2019. Nearly all the Nigerian banks now

have financial digital strategy and are leveraging new social platforms to bring services closer to customers. Safe to say each is making plans for a future where online controls the largest share of their revenue activities. What does the future hold for physical branches then? “By 2020, we expect to have physical branches handling no transactions but just advisory services to our customers,” James Mwangi, CEO of Equity Bank said at a conference in Kenya where it also launched its fintech subsidiary, Finserve Africa Limited in August. While physical bank branches will continue to experience less and less customers, it might take a little longer time – if at all – for them to become a relic for the museum. While the threat of fintech is real, what may never change is the customers need for physical contact. Financial advisory is a field that is getting more attention from financial institutions. Earlier this year, to the surprise of many analysts, JPMorgan Chase announced plans to open 400 new bank branches. The branches which will be rolling out in October, is aimed at offering advisory services to small businesses. According to some experts entrepreneurs place more value on in-person advisory relationships they get when they visit bank representatives in person.

What to know about card maintenance fees FRANK ELEANYA

he Central Bank of Nigeria (CBN), in the 2017 ‘Guide to Charges by Banks and other Financial Institutions in Nigeria’ makes provision for financial institutions to charge N50 monthly card maintenance and N100 annually on naira debit and credit card. The guide also allows banks to charge $20 per annum on foreign currency denominated debit and credit cards. By that guide, every debit or credit card holder will pay N600 annually as against the N100 being paid previously. Data from released recently by the Nigeria Inter Bank Settlement System (NIBSS) the central database for banking transactions in the country show that as at September 30, 2016, there were 29.24 million active cards being used by the 63 million active bank customers. In essence, bank customers in Nigeria will pay not less than N1.462 billion every month to banks as card maintenance totalling N17.544 billion annually. All this is separate from the issuance fee of N1000. A customer that lost or misplaced their card and wants a replacement is liable for a replacement fee of N1000. The CBN also allows banks to charge a renewal fee of N1000 once a customer’s card expires. However, almost on a daily basis, bank customers complain about incessant card maintenance charges. Among the accusations are debiting customers’ accounts more than the

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stipulated N50 card maintenance charges, some banks charging N52 or N52.50 instead of N50, customers without ATM cards getting debit N50 alert, charging customers twice for card maintenance in one month, new account holders getting deductions for maintenance as well and many others. One customer recently posed a question to the CBN on their Twitter handle, “Please why do banks charge us N50 each which they call card maintenance when in actual sense I paid before getting the ATM card?” What is card maintenance? It is a monthly charge of N50 that banks take from customers with active debit cards. The fees are charged each month by the banks for active cards (card whose PIN has been changed). “ATM or Card maintenance fee is common in Africa but unknown in more developed countries,” a source in the banking sector told BusinesDay. For instance, Indian bank HDFC Bank issues ATM cards to its customers free of cost. Usage of the bank’s debit card at domestic merchant locations and websites is free of cost. Bank ATMs in the United Kingdom do not charge usage fees if the withdrawal is within the region and in local currency. Why card maintenance fee? @Businessdayng

Pius Ikheloa, a banking expert told BusinessDay that charging card maintenance fee is like an incentive from CBN to banks who are the major drivers in its cashless initiative. “Keeping ATMs functional (issuing, acquiring, switching, personnel etc) involves a lot of cost,” he said. “The maintenance fee I believe is a way of compensating the banks. ATM is of course at the centre of CBN’s cashless initiative and if they are putting pressure on the banks to ensure it always functional, there has to be a way of offsetting some of the cost.” He further pointed out that although, banks outside Africa may issue and allow customers to transact with their debit cards for free, the foreign banks still collect one form of charge or the other, “maybe not directly called “Card Maintenance fee”. “The idea behind those charges is basically the same as that of Africa. In Europe and North America, they collect what is known as ‘Monthly Account Maintenance fee.’ In addition some banks collect credit card maintenance fee and various other charges.” Other charges that come with ATM transactions in Nigeria which are approved by the CBN include N65 after the third withdrawal within the same month. Recently, the apex card directed that banks will be liable for a N10, 000 fine on every failed electronic transactions that is not resolved within 24 hours.

Wedesday 26 June 2019

BUSINESS DAY

Wedesday 26 June 2019

BUSINESS DAY

CEOINTERVIEW

JOSEPH UMUNAKWE GM, West, East & Central Africa, HMD Global

Interview with Private Sector Leaders

‘Nigeria may skip 4G directly to 5G and avoid lagging rest of the world’ Nigeria is the largest Smartphone market in Africa, and is said to be the only African country that will contribute new mobile subscribers to the 700m expected by 2025 (about 7m every year). JOSEPH UMUNAKWE, general manager - West, East & Central Africa, HMD Global (which owns the Nokia brand), in this interview with CALEB OJEWALE, discusses the prospects in Nigeria’s telecommunications industry, and its readiness for the future.

he first thing the average reader would want to know, since its Nokia is, where have you been all the while? Nokia has always been around we never disappeared. What we are doing now is that we are writing the new chapter of Nokia smart phones. Nokia brand is a brand that has really evolved; it’s a brand that consumers know for durability, quality, ease of use. And, of course, it’s a brand that is more or less a household name. In Nigeria, when you meet an individual and you ask them about Nokia, they have good stories to tell about their Nokia phones. So, Nokia has always been around. What happened in 2017 was that we launched our new range of Nokia devices on android. And that proposition has been really very much appreciated by our consumers and I’m talking based on the feedback we have been receiving around the world, Nigeria, in particular, from our partners, from our consumers and our fans. They appreciate the offering that we have a proposition around bringing android in its purest sense, the way Google intended it. We don’t have pre-installs, we don’t have any additional skins and layers of software applications that are pre-installed into devices like several other brands do. So what that does is that it enhances user experience. It has been a good journey since then, when we launched our Smartphone at the mobile world congress. We have had a lot of other portfolios that we have rolled out, bringing innovation to the market.

Can you give us a general assessment of the Smartphone industry, now, in Nigeria, apart from Nokia? What would you say is the status of the industry today? When you look at Nigeria as a country, Nigeria is the largest economy and most populous in Africa. So the Smartphone industry is big in Nigeria. It is basically to say that Nigeria is a fertile ground for smart phones. When you put together the fact that, here, we have the largest economy in Africa and you add that to the fact that this is the most populous country in Africa. So it is a big opportunity for smart phones to develop, to increase and that is already happening in Nigeria. Based on data we have, there is a suggestion that by 2025, about 140 million Smartphone users will be in Nigeria. That is significant, particularly, when you compare it to where we are today. Between now and the next five to six years, you will see significant growth in Smartphone usage and adoption in Nigeria. That is a big opportunity that we see as HMD global. That is why in our strategic planning, Nigeria is a focus market for HMD global, and we are here for the long haul, to deliver comparative products that will meet consumer needs and expectations. So, Nigeria is quite important for us as a company.

For us, experience is everything. And that is why we are innovating consistently in a direction that is the way consumers pain points. For instance, we know that in this part of the world, power could be an issue, and we innovated to bring devices that have 2-day battery life. Nokia 7 plus and Nokia 2 series are examples. Recently, in the mobile world congress, like you mentioned, we launched the first world’s Smartphone that has a fivecamera array, the Nokia 9 PureView. We continue to innovate in ways that solve consumer issues and we create differentiated experience for our consumers. This is how we position ourselves to take the opportunity because it is about the consumer. The opportunity is about the consumer, who has a choice to choose from a range of options. Good news for us is that we continue to see a positive direction and good feedbacks from the market, from the consumers, from our partners and our fans. That gives us a very good hope that we are in the right direction to capture the opportunities in this market. Talking about capturing opportunities, many of the old Nokia users are familiar with the brand. How are you planning to entice the younger generation to adopt and become new and loyal Nokia users? When we analysed the data of our current consumers; those who are buying Nokia smart phones, majority of them interestingly are millennials. Like we said at the beginning, people have a lot of positive experience with Nokia. And the legacy of Nokia as a brand in the market, that quality, that durability, that ease of use is there in the market. We continue to see majority of our consumers who are millennials come on board based on our proposition. For instance, we are currently running a campaign where we are telling the consumer that Nokia devices keep getting bet-

driving the adoption of 4G. That process needs to continue and then we get into the adoption of 5G. But the question that we are asking, as people who are in the technology industry, is whether Nigeria will leapfrog 4G into 5G. Because when you look at our adoption rate of 4G, it is still at 4 per cent today, which we still expect to grow. Most of Nigeria’s cities are not 4G covered. The question, therefore, would be, wouldn’t it make sense to leapfrog 4G directly into 5G so that we don’t fall too much behind the rest of the world in technology adoption?

ter. In a world where technology has planned obsolescence, we are going against the grind to say that Nokia smart phones should not get worse. In life, everybody wants to get better, we want our tomorrow to be better than our yesterday. So why will the technology that you use be different from that? Therefore, we are bringing an offering where smart phones keep getting better because we have committed to two years of platform updates, and we launch our devices on the latest android operating system. We are committed to three years of security updates, so the consumer knows that their phone is safe and secure. Those are key differentiations that we are bringing to the consumer, to millennials, to the young people and that has been helping us win them over to our brand. The world is already looking forward to 5G, with companies and even countries positioning to be leaders in that evolution. What is your assessment of Nigeria’s readiness for 5G, and how realistic it will be for us to join the rest of the world in transiting to a new era? I think the momentum is there for Nigeria to adopt 5G the same time that the rest of the world is adopting 5G. The opportunity is there. But here is the thing, 5G is going to be big. The next big thing in technology is going to be 5G.

Looking at this growth of 140 million users by 2025, how is Nokia positioning to be a market leader in this space, in Nigeria? www.businessday.ng

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Let me give you some examples. Looking into the future of technology, you will see robotics, artificial intelligence, big data, internet of things, machine learning. All of these are going to run on data, on 5G. In Nigeria, the adoption of 5G will become like a necessity just as the rest of the world. The challenge, though, is that when you look at where we are as a country, in terms of adoption of 3G, some data points are suggesting that, now, only 44 per cent adoption has been achieved in Nigeria for 3G. This means, in a sense, that 2G is still bigger than 3G in Nigeria. I was looking at a report from GSMA and they were suggesting that by the end of this year, Nigeria is forecast to have 3G, for the first time, overtake 2G. Adoption rate today for Nigeria, for 4G, is at 4 per cent. HMD global, with our Nokia smart phones, we are at the forefront of driving 4G adoption. That is why all our smart phones on android are 4G enabled because we really want the consumer to leverage the opportunity provided by technology to do what the rest of the world is doing, have the right experiences in connectivity. Talking about 5G, of course, there are steps that need to be taken in Nigeria. One is spectrum; government has to play a role in spectrum licensing at some point. Even 4G was delayed because of spectrum licensing. That is the starting point. And then, once the 5G spectrum becomes available, then, we need to begin to build infrastructure. And when infrastructure is rolled out, of course, those of us who are in the mobile technology business, HMD global as usual, will be there to make sure

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There are a number of opportunities in Africa, and in Nigeria, for us to develop our manufacturing capability that the consumers have 5G smartphones that they can use. In just a sentence, can you assess Nigeria’s level of readiness for 5G? At the moment, it’s difficult to say in a sentence because there are a number of elements that need to come together. I think the aspiration and will is there but it’s going to be a process just like we are

manufacturing does not happen in a vacuum. For an ecosystem to evolve, an enabling environment has to be in place and that includes infrastructure, security, there are a number of enablers that drive an ecosystem to develop. When the ecosystem develops, then it has a multiplier effect not only on the industry but also on the economy. So, we need to get those things in place before we can see really big time manufacturing happening in Nigeria.

Based on the insights you shared, 3G penetration is about 44 per cent, 4G at 4 per cent, which means we still have 2G serving 52 per cent. This connotes a huge market for feature phones. So what are you doing in that space? We believe in digital inclusion and that is very important. So, if you look at sustainable development goals, we talk about inclusiveness; financial inclusiveness, digital inclusiveness. So, we believe in democratizing technology. There should be something for everybody, and you’re right, feature phones remain really relevant in Nigeria, many parts of Africa and many parts of the world. Even with the growth in smart phones with 3G, 4G, 5G technologies, there are consumers who basically prefer feature phones. In fact, there are users of smart phones who also have feature phones as a backup phone. Apart from this is the number of people in our rural areas who, because of the durability of our feature phones, are continuously using them. So, we see continuous growth in demand for our feature phones. And that is why, HMD global, we have a very strong plan to make sure that those consumers are not excluded from what is happening in the technology space. We now know that, of course, many transactions are done on mobiles. Whether it is banking transactions, getting information or access to news, financial information, farmers accessing information on inputs etc, we do not want to leave them behind and that is why we continue to deliver very quality feature phones.

Since 2017, when this new phase started, can you just give us an insight into what the numbers have been in terms of units of Nokia devices sold in Nigeria and, perhaps, the other markets that are under your control? We have made significant progress since we launched. I can just give you some statistics. First, as HMD global, our phones are activating in more than 80 countries of the world. That is significant considering the fact that we started in December 2016 and we launched our first smart phones, on android, in February/March 2017 at the mobile world congress. Our ambition when we launched was to be among the top three Smartphone brands in about 5 years. Good news is that, as at now, we are among the top five in more than 30 countries, which means we are making significant progress across multiple geographies. In Nigeria, and specifically, for Africa, we don’t have numbers to share at this time but the indication I gave you will give you a sense that we have been on a really good trajectory since we launched. Nigeria is one of the 15 focus markets we have in HMD global. That kind of highlights the importance of Nigeria in the global scheme of things and in Africa specifically. In sub Saharan Africa, we have Nigeria, Kenya and South Africa as focus markets which means Nigeria is playing in that big league. Our consumers are happy, we have very positive feedbacks for our products and services. Our campaign teams have been driving very strong messages of our proposition and offering and the feedback from the market has been very encouraging. We are going in the right direction and we are proud of what we have achieved.

Do you think in the nearest future, we would have made in Nigeria Nokia phones? To be honest, if there is anything like that, we would of course, let you know. There are a number of opportunities in Africa, and in Nigeria, for us to develop our manufacturing capability. The first thing is for the ecosystem to develop because they do not have manufacturing in isolation. When you look at a typical feature phone and unpack it, there are a number of parts inside. And I remember when I visited the Nokia factory in Finland, there was a big ecosystem- companies who were making different components, different spare parts, and they were being delivered to the Nokia factory through a conveyor belt to tell you how easy and how efficient the supply chain process was. The first thing that needs to happen is for an ecosystem to evolve because

Managing the Nokia brand in West, East and Central Africa, what has the experience been like for you managing these markets? It is challenging as well as exciting. Think about it, going from Kenya in East Africa, to Uganda and Tanzania and, of course, markets like Ethiopia, DRC, Somalia, Djibouti. And then you come to this part, of course, Nigeria, Ghana, Senegal, Ivory coast, Cameroon, Benin republic, Togo, Mali, Mauritania. So, it is quite interesting, challenging and exciting. And when you go from one legal jurisdiction to another, and you manage across borders, across countries, it is a challenge. But that is the excitement also, of the journey, because you get to learn a lot. At times, we make simplifying assumptions that Africa is the same, but we realize that the way someone in Ghana will interpret a marketing message

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is different from the way someone in Uganda will interpret the same marketing message. So, it is a very exciting journey- you learn, you understand cultures, you understand how to read the body language of people. How to reach consumers and how they respond to the proposition and offer is very exciting but, of course, it is a challenge that wakes us up every morning so it has been great. I’m sure we all agree that Nigeria has the best jollof, so can we as well say it is the best of all the (African) markets? [laughs] That is a conclusion I don’t want to draw. Every market is unique in itself. I have really seen some beautiful differences and I tell people about Kenya as an example. Kenya is big in digital and they are also big in 4G. For instance, some operators in Kenya are probably driving 4G more aggressively than we are in other parts of West, East, and Central Africa (WECA). That’s a big plus for them there. When you go to Ghana, of course, as Ghana is our close neighbour, we see that the split between feature phones and smart phones is different in Ghana than it is in Nigeria. We also see that the consumption pattern of a Ghanaian is different from that of a Nigerian. Each market presents us a set of unique attributes and these attributes help us unlock the opportunities in those markets. So it is very difficult for us to say here is the best market. We are making progress across all markets, that’s the beautiful thing. There are some of the markets in my geography that I probably have not visited this year but we continue to see some very good trajectory, very good numbers from those markets because of the fact that we have a good brand, a good proposition, good partners consumers and fans who believe in us and carry our message. Africa is unique and WECA is really a good place for us as a brand.

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Friday 28 June 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE SOML commences training of 400 Kwara healthcare-workers on PHC SIKIRATB SHEHU, Ilorin

54gene Heritage Study Advisory Committee and Research Consortium Members.

Exploring African genomic potential will deepen quality of medical research ANTHONIA OBOKOH

nderstanding the human genome is a critical factor that could improve and strengthen research capacity in Africa; especially Nigeria says the 54gene heritage study. Africans are amongst one of the most genetically diverse subgroups in the world, yet are only investigated in 2 percent of genetic studies; a recent study has shown with 50 percent of the world’s genetic variations in Africa. The heritage study seeks to bridge this gap by gaining knowledge on the genetic variations of Nigerians and the common diseases that affect them. 54gene is committed to improving research capacity in Africa and has established the first private Biobank for Non-Communicable Disease (NCD) in Nigeria. “Understand variation in our

country’s genetic profile and how that can lead to better treatment for Africans,” explaining Abasi EneObong, the chief executive officer of 54gene, gave a welcoming address explaining the objective of the study. The 54gene heritage study is a premier genomic study that seeks to understand the genome of Africans, however researchers and practitioners across Nigeria gathered for the inauguration of the research consortium. Omolola Salako, consultant Radiation Oncologist at the Lagos University Teaching Hospital, spoke on the evolution of medicine towards personalisation. Personalized care can only be provided if the genetic issues surrounding non-communicable diseases are better understood. “If we understand this, we can begin to target solutions and interventions that increase access to accurate and quality healthcare,”

she said. Sa la ko e x p la i n e d t hat t h e 54gene Heritage Study is a unique study that is set out to gather clinical and epidemiological data from patients with a wide range of diseases including; cancer, sickle cell, neurodegenerative, metabolic and cardiovascular. Speaking on ethics, Sunday Omilabu, Vice Chairman, 54gene Advisory Committee, said research is designed and implemented in ways that generate knowledge, validity and integrity to improve health and well being. The 54gene Heritage Study is currently being deployed in ten public hospitals across the six geo-political zones within Nigeria. Ene-Obong closed the workshop by stating: “If we find and understand the disease profile of our population, we can actually start policy planning and targeted drug development.”

Gaps still exit approaching Nigeria’s healthcare problems – Akinkugbe ANTHONIA OBOKOH

ladapo Akinkugbe , an Emeritus Professor of Medicine has asserted that there is still a lot of gaps in approaching and handling the problems of healthcare in Nigeria. He made this known at the 2019 Nigerian Healthcare Excellence Award, (NHEA) organised by the Global Health Projects and Resources, in partnership with the Anadach Group. “Sometimes one will lament and have not any feedback, all the teaching hospitals in Nigeria still have a long way to go because in the case of medical tourism, brain drain . We still lagging behind, it is more important for people to realise that Nigeria’s healthcare most still be better,” Akinkugbe said. He urged the federal, state and local government to declare state of emergency in health and education sector, “as far as healthcare is concern, one cannot say he is very proud with the quality of healthcare in this country.” Akinkugbe who received a Lifetime Achievement Award along with Stella Okoli the Founder and Group Managing Director of Emzor Pharmaceutical Industries Limited, and Eyitayo Lambo, Former Minister of Health, lamented that instead of the country to

improve on some of the progress recorded in the past the reverse was the case. “i urge the Federal and State Governments to invest more and support the involvement of private public partnership initiative in improving healthcare delivery. I believe our health institutions are gradually improving, but more investment from government can improve healthcare system,” said Wale Alabi, Project Director, NHEA. Alabi added that over the years, the award had engendered more awareness on the quality and standard of services provided by various stakeholders in the industry. “This is our sixth year, and it has really been a successful award. “We are aspiring to be the benchmark for excellent healthcare service delivery in Nigeria www.businessday.ng

and Africa in general. NHEA is a unique forum that brings together key stakeholders and drivers of national and international trends, policies and solutions in the healthcare industry,” he said. Also speaking Anthony Omolola, the Chairman, Advisory Board of NHEA, said the award would create healthy rivalry and competition that would help healthcare system to move forward. “The presence of our lifetime achievement recipient awardees signifies that we are moving forward, because the selection was based on credibility and commitment to healthcare system. For other categories that won different awards, it is due to their hard work and efforts to be excellent in healthcare system,” he said.

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he Saving-One-MillionLives (SOML), initiative of the Federal Government has commenced the training of 400 health care providers across the 16 local government area of Kwara State. Speaking to journalists on the sidelines of the training, Omar Hassan the Programme Manager, SOML in Kwara State, explained that the training included health workers being introduced to modern health care best practices. According to him, these includes provision of immunization, ante-natal care to HIV/ AIDS mothers, to prevent mother to child transmission, Vitamin A supplement for children six months to nine months, arresting abortion and treatment, among others. Hassan lamented that the country is still struggling with high Maternal and under-five mortality rates with about 900,000 women and children dying each year, largely from preventable causes. “The Federal Government felt that through the SOML, all the states of the federation will adopt their different approaches to ensure maternal and infant deaths are reduced. “SOML is an elaborate scheme to expand access to essential primary healthcare services for women and children,” he said. He noted that the training included capacity building, provision of free basic equipment to health facilities across the state, and delivery of maternal kits to mothers.

The SOML Program Manager expressed happiness that the programme is yielding results in the state, as the state is improving. Mubashir Uthman, a Consultant for the SOML training told newsmen that the sixth batch out of ten are currently undergoing training. “So far about 164 health care workers have now been trained on best practices to manage new born and mothers,” he said. Uthman who is also a Public Health Physician at the University of Ilorin Teaching Hospital (UITH) said that the programme is about integrating maternal child training to community health extension workers across the 16 local government area. According to him, indicators suggest that infant mortality rate is high in the state, which prompted the state government to empower health care workers. Florence Afolabi, Officer in Charge, at Amoyo Basic Health Centre, in Ifelodun local government area, said the training from the SOML hasincreased their knowledge in Primary Health Care. Another Health care provider, Olubunmi Okunloye, Officer in Charge at the Primary Health care centre, in Orolodo, Omuaran, Irepodun local government area said she was able to also train her staffs on what was learned from the SOML training. Some of the health care centres visited included Amoyo Basic Health centre, Ifelodun local government area, Primary Health Centre, Orolodo, Omuaran, Irepodun local government area, as well as the Training centre for the healthcare providers at Omuaran.

Hollandia ‘No Kid Hungry’ initiative launches to address child hunger, malnutrition

n its efforts to reduce the menace of child hunger and malnutrition in Nigeria, Hollandia, the dairy brand from the stables of CHI Limited, recently launched the Hollandia No Kid Hungry initiative. As part of activities marking the launch, the company visited and donated dairy products to more than 500 children at the Bogije Internally Displaced Persons’ (IDPs’) camp in Ibeju-Lekki, Lagos State. Speaking during the visit, Deepanjan Roy, managing director, CHI Ltd, represented by Ebere Osunkwo, head of administration, said that as a socially-responsible company, CHI Ltd was naturally passionate about child nutrition. “And taking cognisance of the unsatisfactory situation with child nutrition globally and nationally, we initiated the Hollandia No Kid Hungry Foundation as a vehicle for contributing, in our own way, towards slowing down the spiralling number of cases of hunger and malnutrition amongst children,” he said. He added that the Bogije IDPs’ camp visit marked a notable milestone in the Hollandia No Kid Hungry Foundation’s drive towards alleviating child hunger and malnutrition. “Many children have found themselves in certain adverse conditions due to no fault of theirs. When you think of these children in the IDPs’ camps, you can imagine how many go to bed hungry every single @Businessdayng

night. Even when they get to eat, how nutritious is the food they consume? So we thought to ourselves, ‘What better way to identify with them than on their day?’ This is why we chose to put smiles on their faces,” he said. Responding on behalf of the community, Tajudeen Oniwolu, the Baale of the Bogije Oniwolu Estate, expressed his gratitude and joy at the event which he described as auspicious. “I am very grateful to the management of CHI Ltd for this special visit and the donation of their products to the children today. It is obvious for all to see that the children are very happy and as the Baale of this community, this really gladdens my heart. I call on other companies to emulate this kind gesture. I also beckon on CHI Ltd to continue with this very laudable initiative,” Onilowu said. Commenting on the initiative, Regina Ayomanor, project coordinator, Web of Hearts Foundation, thanked Hollandia No Kid Hungry Foundation for the huge impact it made and expressed hope that such partnership would continue in the future. “As seen on the faces of the children, we are indeed happy and grateful to Hollandia for this act of kindness to the IDPs children in this community. It is true that children ought to live up to their dreams, but some of these children have no food, not to talk of a future,” she said.

Friday 28 June 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE

The lethal duo: type 2 diabetes and hypertension FOLASADE ALLI

Continued from last week

Long-term complications of diabetes eople living with diabetes are strongly advised to keep track of their blood glucose levels and keep it well under control. This is as a result of the complications that can arise from poor managed diabetes – over the long term, this disease affects the body from the brain to the feet. Although these complications can be frightening at first, managing your condition well can delay them from occurring early, prevent them, or minimise their severity. These complications include: Diabetic retinopathy (eye related complications): diabetes is a leading cause of blindness

and visual impairment. The majority of cases are caused by a complication known as diabetic retinopathy. In similar words, damage to the retina. Thus, is very important that people with diabetes take extra care of their eyes. Symptoms: are you seeing floating spots or almost complete darkness? Do you have a problem when reading, watching tv, seeing at night? Do you have a problem recognising people? Do you have a problem with balance? The bad news is, when these changes occur, the damage may already be severe. Prevention: the good news is, controlling your blood glucose levels by meeting your targets can either prevent or delay diabetic retinopathy. Also, it is important to regularly check your eyes. I recommend, at least, once every year if you have diabetes. Foot ulcer complication: foot complication among diabetic people is very serious. Foot ulcer

is major complications that lead to not only hospital admission but also amputation, which can lead to death. This usually occurs as a result of nerve cell damage or peripheral vascular disease; both are which complications of diabetes. Symptoms: a wound on a foot that isn’t healing quickly, foot ulcer, and so on. Prevention: foot care as recommended by the doctor, controlling blood glucose level and wearing appropriate footwear. Peripheral vascular disease: peripheral vascular disease is a cardiovascular disease. It is the narrowing of the arteries that go the legs. This causes pain in the legs and decreases the circulation of blood to the legs. As a result, it increase healing times on foot injuries as well as increases the risk of foot infection. Symptoms: leg pain, leg discomfort in the form of numbness, tingling or coldness, sores on the feet, foot infections, and

so on. Prevention: reduce excess weight, monitor and control blood glucose, blood pressure and cholesterol levels. Neuropathy (nerve damage): nerve damage is common amongst diabetic patients. Over the long-term, diabetes has the ability to damage the nerves in, for example, the legs, feet, hands, arms, and so on. Symptoms: feeling pain, discomfort, tingling or numbness in the hands, arms, feet, and legs. Gastroparesis: occurs when foods moves very slowly out of the stomach and into the small intestine as a result of damage to the vagus nerve, which is responsible for controlling the stomach muscles. This damage occurs due to poor control of blood glucose. Symptoms: bloating, vomiting, erratic glucose control, prolonged fullness Prevention: Monitor and control blood glucose levels.

Kidney complications (diabetic nephropathy): high blood glucose can damage the nephrons. When this damage is progressive, it can lead to kidney failure including the need for dialysis. Symptoms: unfortunately, this is a symptomless disease until almost all function is gone. Prevention: monitoring and controlling blood glucose levels and blood pressure. Maintaining a healthy lifestyle in diet, physical activity and not smoking. Other complications include cardiovascular disease, skin conditions, Alzheimer’s disease, hearing impairment, and so on.

Written by Folasade Alli, Consultant Cardiologist at Lagos Executive Cardiovascular Clinic

SeekMed enjoys mobile app adoption from Nigerians after release Kwara gov calls for collaborative effort among

stakeholders to combat drug abuse, illicit trade

ANTHONIA OBOKOH

ollowing a successful launch and quick adoption of SeekMed a mobile telemedicine application by a majority of early users, the mobile app has found its way into the healthcare market, enjoying positive reviews and a 4.8-star rating on Google Play Store. Primarily created to offer users medical second opinion before making major surgical or complex treatment decisions in the lines of nephrology, cardiology, neurology, oncology, orthopaedics and others; Medical tourists can also get adequate information about ailments before committing themselves to long hours in the air; seeing as it has become increasingly impossible to eliminate medical tourism. Alok Awasthi,founder of SeekMed fondly acknowledged that the App was not created to halt this growing trend; rather, it was created to make life easier for users. “In this day and age, it is impossible to completely eliminate or

SIKIRAT SHEHU, Ilorin

avoid medical tourism. However, the flight of capital from a patient’s home country could somewhat be contained by leveraging virtual medical tourism services provided by SeekMed,”he said. “Travelling to other countries for surgeries and other complex procedures can’t be avoided but the majority of consultations could still be carried out via SeekMed.” As such, SeekMed has carried out hundreds of consultations since its Nigeria launch in March and have

been greeted by waves of reviews and endorsements. According to one of the users, “My experience with them was excellent and this is the best app to get medical attention. I encourage everyone with different types of diseases to join Seekmed they are excellent doctors with good reception.” SeekMed App is widely perceived as an innovative app that offers immediate solutions to some of the existing problems of healthcare and Nigerian medical tourists.

s the world mark International Day against Drug Abuse and illicit Trafficking, the Kwara State Governor, Abdulrahman Âbdulrazaq has urged parents and civic bodies to join global effort to combat the menace of drug abuse and illicit trade in it. The governor, who spoke in Ilorin on Wednessday said: “I call on parents, civic groups and religious organisations to key into the global campaign against Drug abuse and illicit trafficking. “While we remain committed to building a conducive environment for socioeconomic and human capital development, I urge our young people to shun the use of hard drugs.

“Drug abuse is a window to crime and a waste of precious talents with devastating consequences for national growth. “Anyhow it is viewed; drug abuse and illicit trade in same are a threat to national development and human existence.” The International Day Against Drug Abuse and Illicit Trafficking is a United Nations International Day, It is observed annually on 26 June, since 1989. The observance was instituted by General Assembly Resolution 42/112 of 7 December 1987, according to the UN information service. The day is often referred to by Anti-Drug campaigners as 6/26 -- a play on Marijuana smokers “4/20” day to celebrate cannabis.

NNPC, Chevron set to build modern specialist hospital in Ondo YOMI AYELESO, Akure

he Nigerian National Petroleum Corporation NNPC and Chevron Joint Venture has revealed plans are underway for the building of ultra-modern mother and child specialist hospital in Ondo state. Group manager, Polic y, Government and Public Affairs (PGPA) of NNPC/Chevron joint venture Esimaje Brikinn disclosed this while speaking at the launch of the Roll Back Malaria Programme (RBP) in Owo, Owo local government area of the state. He said the hospital would be

HBL TEAM

built in Ugbo, Ilaje local government area in conjunction with the state government and some stakeholders in the area. Brikinn, who was represented by Sam Daibo, the Area Manager PGPA Field Operations, said the move was aimed at securing and adding value to health and development of Nigerians. He said the RBM programme which includes spraying of insecticide, distribution of insecticidal nets and capacity training for health workers were aimed at reducing the scourge of malaria in the state. The programme had last

month been launched in Ugbo in Ilaje LGA. He advised every resident in the area to participate actively in the programme. He said, “Currently, we are partnering with the state government, the Ilaje Regional Development Committee as well as the Amalgamation of IIaje-Ugbo Coastal Communities Association to build a modern Mother and Child Specialist hospital in Ugbo land. “We have done all these because we have always viewed the provision of quality healthcare delivery as a crucial social service that

will help build a healthy citizenry and unlock the country’s human potential. The interventions align with our business and social objectives since we recognize the profound interdependence of healthy businesses and healthy societies. “It is our hope that we record more successes in our collective fight to reduce the prevalence of malaria in Ondo state and Nigeria in general.” The commissioner for Health in the state, Wahab Adegbenro lauded the oil company for the intervention programme adding that the government would continue to partner the company in

a bid to end malaria in the state. Adegbenro who lamented the amount of money being spent by the government on treatment of malaria in the state said quality and affordable healthcare would remain priority of the present government. Describing the oil company’s intervention as laudable, wife of the governor, Betty Anyanwu-Akeredolu solicited the inclusion of other sixteen local government areas of the state in the programme. Akeredolu urged the people to make adequate use of all the materials provided towards reducing malaria in the state.

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

Friday 28 June 2019

BUSINESS DAY

LEADINGWOMAN

The gruesome narrative of ASATTA HENRIATTA ALLWELL-BROWN, a survivor of the Liberian civil war trip. We reported ourselves in every country we landed. The immigration officers at borders would accommodate us but did not allow us cross the border until they get permission from their headquarters. Some countries had to get make shift relief camps to host us while others didn’t grant us access and the only option was to keep moving from one country to another. I was between the ages of 9 to 13.

KEMI AJUMOBI

satta Henriatta Allwell-Brown was born July 4,1987 in Monrovia, Liberia. She is a Caterer, Singer and Song Writer, Event Planner and Historian. She is a graduate from the prestigious University of Lagos. Asatta attended Bethesda school where she had her primary education and went on to St Mary’s Catholic school for her secondary education. Shortly after the war broke out, Asatta moved alongside her family to Sierra Leone, to Senegal, to Gambia, to Mali, to Ivory Coast, to Ghana (where she parted ways with her family members), and eventually settled by herself in Nigeria in the year 2002. Asatta is a survivor of the Liberian Civil war which lasted for 20 years. She will never forget the sudden transition from living with a silver spoon in Liberia to living on the streets and working as a domestic help in Nigeria. She is the MD/CEO of Ganador Catering and a gospel singer. She manages the day to day affairs at Ganador and is in charge of Business Development and Quality Assurance. Asatta believes that hard work, integrity, diligence and the fear of God has brought her this far. Her clientele in her catering business has risen from 40 to 500 within the space of One and a few years. Ganador provides bespoke catering to her clientele as she believes it to be individual artistry rather than routine. Asatta is a wife and mother; she has three siblings, two Nigerian parents namely: Rev Bankole and Grace Olowofoyeku. She has two Liberian parents namely: Moses Barlay and Sedia Barlay. She lives in Nigeria’s busiest commercial hub, Lagos. She is a Christian and an active member of the choir in her local Church. Asatta in her spare time derives pleasure in swimming and likes to surf the web for latest trends. When she is not doing any of the above, she loves taking a nap. Earlier in life Growing up for me was very interesting “smiles”. Reminiscing about being loved by my parents, family memories and all, my parents raised children that were not their biological children who always looked up to us. I remember how our big five story building located in the government reserved area of Monrovia, Liberia was always occupied with family and friends from the village and city coming to ask for one help or the other, as my Dad held a position as the Chief Security Officer (CSO) for the Food and Agricultural Organisation for the United Nations. My Mom was a big business woman who traded in different kinds of materials and ran entertainment centres in the heart of Monrovia. My siblings and I attended the best schools in town and we had the opportunity to celebrate birthdays as it was a big deal for my peers. My parents instilled values in me that I think has influenced where I am today. Growing up, we were told to never lie, no matter how bad the situation was. We were taught transparency, respect and how to love especially the less privileged. Though we had domestic staff who lived with us from the village, my parents still ensured we did house chores like cooking, washing of clothes and cleaning the house. Surviving the Liberian civil war It was a terrible experience. I remember how we escaped when we got the news that the rebels had attacked the city. We left in a hurry with nothing. There was no

time to plan or even arrange any of our things. We and our neighbours started to move in different directions. As it got intense, without any compass, we began to move from one community to another, sleeping in uncompleted buildings, bushes and forests. We lost everything we had, most of my close family members were killed and conscripted into the war to fight as children soldiers. They had to become children soldiers because they had no choice and there was no other means of survival but to become a baby soldier so you could loot and bring food for your family and also protect them. I remembered how my father was tied and beaten up by rebels because they felt he looked like a particular tribe that was against the ruling government. Starvation was the top of the day; we ate grasses and domestic animals to survive. I was told by my mom that I fainted from hunger during one of the escapes and she thought I was gone, out of the blues she got grasses from the bush mixed and mashed it and squeezed the juice into www.businessday.ng

my mouth and I came back to life. I also remember how my sister was raped to save me when the rebels came into a particular community to fetch young girls that they could take to their camps to sleep with and cook for them. As we speak, till date, my eldest sister is still missing from the war. She left us to go look for food when she heard a ship arrived at the port with food while our parents were out looking for food also. As she left, she never returned. We have gotten all kinds of news, some said she was dead, some said they saw her in Guinea Bissau where the ship came from. My mother’s biggest nightmare. I also remember how pregnant women were killed by the rebels for no just reasons, they would just bet and say, “that pregnant woman is carrying a baby boy” and the other would say “no it’s a baby girl” and they argue and the next thing they get her, spilt her tummy open and bring out the baby. The person who wins the bet gets more soldiers into his team. I remember how people were crossing

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borders and before you were allowed to cross, if you eventually encounter rebels at a check-point, they would ask for your tribe and ask you the level of amputation you desire, short sleeves or long sleeves. Short sleeve (amputation from the elbow and long sleeve, amputation from the wrist). A lot of experiences you know but for now, I stop here. The war taught me how to trust God and depend on Him sorely. The war taught me how to be humble. The war taught me to be a survivor. Transitioning from one country to the other The process for me was tasking, as most of the movements were by foot, we had swollen feet and sore feet from trekking. People died from exhaustion and all that. We had almost lost hope and just wanted to cross to a place where we would find peace and solace. At some point, we got the refugee trucks to convey us to neighbouring countries like the Mali to Ivory Coast trip and the Ivory Coast to Ghana @Businessdayng

Parting ways with family in Ghana The camp seemed bigger than every other camp we had ever lived in, but the life there was stereotype and we could only live in the confines of the camp which I felt was not good enough. Unlike the Francophone countries, we knew there was no hope because we couldn’t speak French. Seeing a country where they speak English was such a great relief for us, but NO! We had the refugee status tagged on us like a badge. People were not allowed to go into Accra or even work; there was no freedom of movement, even though it’s all over now. There was this fear of “Ah! Some of these boys and girls are rebels oh, the fact that the government granted them refugee status doesn’t mean we should allow them into our city”. The camp suddenly became like Sodom and Gomorrah. You know where you have idle minds the people become the devil’s work tools. One faithful day, a family friend who had lived on the refugee camp in Ogun State, Nigeria, established by the United Nations came visiting the camp in Ghana and he looked different from us. It was clear that life on the refugee camp in Nigeria was better than the life in Ghana in terms of freedom and acceptance from the people. He told me he had seen my uncle a few times and my uncle was doing very well in Nigeria. I wrote a letter to my uncle asking him if I could come to Nigeria to live with him because I didn’t want to stay in Ghana. Couple of months later, my uncle reached out to me with his phone number and we began to communicate. Unfortunately, my uncle’s contract had ended and he had one month left to return to the US to his family. He was fortunate to have escaped before the war got intense. I came, visited my uncle for one month and he asked me to go back to my parents. I cried because I really liked the life in Nigeria and I really wanted to stay back but I had to leave. Immediately I returned, I told my parents I wanted to come back to Nigeria and my parents were worried. My mom cried, my dad was helpless and broken and didn’t like the idea. My Mom cried profusely and reminded me about my eldest sister who had gone and I was the only one left but I made a promise to her that I will be fine...I assured her. I pleaded with them as I wanted to come to make a living for myself in Nigeria. It was the hardest decision ever leaving my family to come and fend for myself at the age of thirteen. What are you grateful for? Everything. I am grateful that I am alive to see this day. A day that I can give advice to someone that is going through what I have been through. I am grateful for the gifts God has given me, my family and friends. Read the elaborate, revealing, complete and concluding chronicle of Asatta’s inspiring story on our website www. businessday.ng as she graces our Women’s Hub cover for this week. You are just a click away!

Friday 28 June 2019

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

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Commentaries

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Send in Commentaries to caleb.ojewale@businessdayonline.com

Nigeria: Stuck at crossroads of GMO for industrial growth, food security CALEB OJEWALE Twiiter: @calebtinolu

The Poultry industry may better feed the birds too

n April this year (2019) at a training organised for some journalists in Lagos, an acclaimed professor of food science and technology in one of the universities in South West Nigeria, made some startling revelations. Notable in his presentation was the assertion that Nigerians have been consuming GMO food for decades, and it has already evolved into our primary food production, thereby suggesting there is hardly non-GMO food being cultivated again. Shocking it sounded, as journalists took turns to gasp in surprise, and at other times, chorused their sounds of surprise in unison. According to the professor, said to have a wealth of knowledge in Biotechnology, “have you noticed tomatoes nowadays no longer contain as much water and seeds, like the ones available when we were growing up.” To conclude this, he said “don’t you all know it is because GMO seeds had been introduced at some point, and that is why our tomatoes contain more pulp and little to no seeds.” He did not stop there, other instances (and insinuations) included Maize, but not the biofortification aspect of it, rather, the fact that the “colour of maize has evolved from white to yellow.” The professor, with his years of research and wealth of knowledge is supposed to know a lot, perhaps, better than most people. However, some of the claims seemed not just far off, but also like excerpts from a conspiracy theory book published to scare food-loving people. Elementary agriculture taught grafting and budding, one of several ‘less-invasive’ techniques used to improve plant varieties. A plant with desirable attributes in taste, appearance or even disease resistance, when grafted or budded onto another, is expected to ‘transfer some of this desirable DNA’. There could also be good old selection, like in the case of white or yellow maize, to pick out cobs with the desired colour, and plant repeatedly until a critical mass has been formed for a ‘new variety’. “The importers of grains have been bringing in genetically modified grains over the years without them even knowing they are genetically modified,” said Rufus Ebegba, director general, National Biosafety Management Agency (NBMA) in an exclusive interview last month. “Working with the Nigerian customs service, we have been able to determine that some of these grains are genetically modified.” This detection is not something achievable with the human eyes; trained or untrained. As Ebegba explained during the interview, the agency prides itself with the establishment of the genetically modified detection and analysis laboratory. The lab is where tests are conducted to detect GMO traits, which cannot be physically examined.

In 2017, the Nigerian poultry industry suffered a tumultuous period, with a number of poultry farms shutting down as most farms found it difficult to feed their birds owing to difficulty in access to feed and other inputs. “A lot of farms are being closed down because so many people cannot afford to feed their birds,” said Onalo Akpa, who was director general, Poultry Association of Nigeria (PAN), in a phone interview with BusinessDay at the time. “If you have a (poultry) farm and you cannot feed your birds then you better shut it down!” said a rather agitated Akpa. The price of maize and soya bean which are the main components of poultry feed increased by over 100 percent. The situation at the time, worsened the country’s poultry deficit which has been estimated at 60 million birds. The Agriculture Promotion Policy document released by the Federal Ministry of Agriculture indicates that Nigeria’s annual chicken consumption is 200 million birds, while supply is 140 million birds. The 2017 crisis, which still exists mildly though not as bad as two years ago, was precipitated by the armyworm invasion that plundered Nigeria’s maize output by more than half. According to the Agriculture Promotion Policy, Nigeria’s maize deficit as at 2016 was 500 thousand metric tonnes, however, the bulk of this goes into direct food consumption, leaving the poultry industry continually battling high cost of feed. Importation has often been cheaper, particularly from countries like the United States. As Ebegba of NBMA explained, a lot of the imported grains are actually genetically modified. As disclosed by Ebegba, about 12 permits have been granted for the importation of genetically modified grains notably maize and soybeans. The permitted GM grains, as he explained are basically used to produced feed for poultry and other animals. Also, the soybean is used for production of vegetable oil. The ability of armyworms to reproduce quickly and in millions, underscores the threat to Nigeria’s maize production if adequate plans are not put in place to contain any possible reoccurrence. With cultivation of GM maize, even if not for direct consumption by humans, threats from pests and diseases can be effectively mitigated. Furthermore, with the appropriate regulatory scrutiny also in place for the imported GM grains, the poultry industry may finally get a new lease of life. It is time for Nigeria to actually open constructive dialogue on how GMO can be used to achieve food security. If conservative tendencies stall the discussion, it could surely be explored as a way to drive industrial revolution in Nigeria, by ramping up production of high quality agricultural raw materials for the ailing manufacturing sector.

There is no doubt some GMO foods would have found their way into the diets of Nigerians, but two things that are of importance are; 1- did they (i.e. GMO food) get to the table through conventional cultivation done within Nigeria, or were they imported, and by escaping scrutiny, made it into meals without express consent of consumers? 2- Are there ways GMO crops can help Nigeria meet industrial needs? Pending when there is ‘an agreement’ for those who wish to consume it to do so, and those who do not, being able to make choices through clearly labelled packaging. The industrial imperative – Cassava’s untapped potentials “All processors in Nigeria are still struggling to produce two percent of starch the country needs,” said Nike Tinubu, president, Industrial Cassava Stakeholders Association of Nigeria, in a phone interview. Yet, Nigeria is the world’s largest producer of cassava, responsible for an estimated 20 per cent of global output, which in 2017 was 285 million metric tonnes in the global cassava processing market report. The irony is, whereas there is abundance of cassava in Nigeria, the value extraction is extremely low. Even though Nigeria ranks as the world’s largest producer of cassava, the yield is low (at five to ten tonnes per hectare against global average of 25 tonnes per hectare). More importantly, for industrial usage, the starch content derived from the best of cassava tubers is between 18 and 22 per cent. Whereas, in countries like India and Malaysia, starch content of between 38 and 40 per cent is derived, and there are possibilities of doing even better. “We need to differentiate between Cassava for food security, and cassava for industrial prosperity,” said Segun Adewumi, national president, Nigeria cassava Growers Association (NCGA). Adewumi explained he has been advocating for Genetically Modified cassava, www.businessday.ng

which will be cultivated purely for its starch content, describing it as the only way Nigeria can transform the volume of cassava production into industrial and financial value. While the regular cassava tubers can be cultivated for food; human and animal consumption, there is a need to think beyond Garri, Fufu, and the other pedestrian applications of cassava. Cassava has some major Industrial Products among which are Ethanol, Industrial Starch, Cassava Flour, Glucose Syrup, Sweetner etc. These products are also raw materials to numerous Industrial items with limitless domestic and export market potentials. “This means Cassava can trigger massive Industrial Revolution in Nigeria to the extent that every Nigerian Village will have viable Cassava Industries,” according to NCGA. However, these remain dreams as long as productivity is abysmally low in Nigeria, a possible fix according to experts will be through adoption of genetically modified varieties. Industrial Starch, a major product from Cassava, is used in the Gum/ adhesives, Textiles, Pharmaceuticals, Book binding, Paper and packaging, Confectionery, Chemical and household products manufacturing, Batteries, Drinks, beverages, Baby foods, and Wood finishers etc. Despite these potentials, Nigeria imports over 95 per cent of the Industrial starch used in the country. Potential off-takers for Ethanol in Nigeria include SKG-Pharma Ltd., PZ Industries Plc., Emzor Pharmaceuticals Industries Ltd., Unilever, Daily Needs Industries Ltd., Mopson Pharmaceuticals Ltd., Drugfield Pharmaceuticals Ltd., New Heathway Co. Ltd., Neimeth International Pharma Plc., Therapeutic Laboratories Ltd., Vitabiotics Nig. Ltd. Others are Guinness Nig. Plc., Nestle Nig. Plc., Nigerian Breweries Plc., Pharma–Deko Nig. Plc., and UAC Nig. Plc. among many others. The market of Ethanol in food grade and Biofuel is limitless. However, to achieve this, starch content needs to go up very

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significantly, and current varieties are unable to achieve it without genetic modification. Reviving the moribund textile industry through BT Cotton Millenials in Nigeria today often hear of a ‘great past’ where amongst other things, the textile industry was in good shape. Locally made fabrics rolled off the textile machines from Afprint in Lagos, to Unitex in Kaduna, but from being a major employer of labour in the 1970s and the 80s, the textile industry is regrettably a shadow of its former self. The Central Bank of Nigeria recently intervened in the cotton value chain and textile industry, with the distribution of seeds in Katsina state to over 100,000 farmers cultivating an estimated 200,000 hectares of farmland. According to Godwin Emefiele, the CBN governor, the farmers are also to benefit from extensive training on proper farming techniques, which is expected to translate into production of high grade cotton lint at much improved yields of up to 4 tonnes per hectare. These measures, as projected by the CBN, will help to improve cotton production from 80,000 tonnes produced in 2018 to 300,000 tonnes by 2020. Even with this projection, Nigeria will lag its African peers such as Burkina Faso, previously Africa’s largest cotton producer, with 436,000 tonnes, trailing Côte d’Ivoire (455,000 tonnes), Mali (653,000 tonnes) and Benin (675,000 tonnes). Burkina Faso’s production has declined consistently in three years by more than 40 percent, since the country decided to stop the use of GM seeds. However, embracing it in Nigeria can help the country ramp up production and revive the scores of textile companies that have become moribund. In South Africa today, almost 100 percent of the cotton produced is Bt, while in Australian, the figure is 97 percent. In the USA, it is 80 percent, and 42 percent in Brazil, according to an article by Alliance for Science.

@Businessdayng

Friday 28 June 2019

BUSINESS DAY

Hotels

La Campagne Tropicana spices offerings with three innovative products OBINNA EMELIKE

gain, the management of La Campagne Tropicana Beach Resort has unveiled triple innovative beach facilities. The offerings are a floating bed on the water, known as Simi Rimi (Rest on water) in local parlance, Transparent Kayak and Wooden Floating Jetty. For the Ikegun Village, Lekki Ibeju, Lagos -based African themed resort, there is no end to its creativity ferment, hence regular entertaining and treating of guests and visitors to the resort, to an amazing and elegantly curated facilities. The excitement for many of the patrons of the resort is the ability of the Wanle Akinboboye-led creative team to effortlessly put into good use local materials into functional items. The new creations are nothing short of the enduring tradition of the resort, which has set it apart from others in its over three decades of existence. The uniqueness, which is a devotion to promotion of Africa culture and traditional heritage through a colourful mix of motifs, has indeed been acknowledged across the divide through the various awards and recognitions that it has earned as well.

Simi Rimi is a beauty to behold and experience as it is aesthetically set up and laid with fascinating colours. It is a floating bed on the lagoon waters that is creatively put together (with the use of waste materials) and all covered with an opening, thereby ensuring privacy for the occupant (s). One of the most exciting features of the new creation is the fact that it allows you to savour the bliss of nature unhindered. It also allows for temporary relaxation on water while some of the other activities you could carry out include reading, holding private section and romantic moment. It is also a fully serviced floating bed, with all necessities and supplies provided, with a butler at your call and a talking drum to attract the attention of the butler when the need arises.

Your security is guaranteed at every point as within the distance is a boat with a life guard watching over you. The second creation is a floating jetty that is made from used rubber jerry cans; the first of such creations anywhere in the world. The serviceable jetty is a reflection of creating wealth from waste as all materials are locally. The third offering at the resort is transparent kayaks, which is also known as Ocean OC2. The resort is the first in Nigeria to take delivery of this facility. This signals a new dawn for lovers of water sports. The new facility, which can feature in both ocean and river, is for use by all ages and could be deployed to many uses on the water, such as romantic ride and cosy moment. Some of the features include: stablisers, which pro-

vides stability thus making it impossible to capsize; safety, making it secured and idea for use by children, as well as, inflatable and comes with a practical bag, hence it is easy to carry everywhere you go. Others features include; intensive use (rentals), transparent PV protective materials can be used to protect its hull; the hull can be customized; and is comfortable and highly resistant to the elements. Apart from deploying it to service guests at the resort, it is also on sales to people and organisations for private use outside the resort. Other recent creations at the resort, which has made it the envy of guests are; the Mud House Amoosan (mud is good), a chalet built of mud material with an indoor swimming pool; Omi Gaari Ijebu, a refreshing food drink exported from the traditional culture, which has gone extinct; and the longest swimming pool in the world measuring 240 metres. The additional offering, which took about 10 days to create, has six service in-built bars with each dedicated to different offerings while its boasts two sections, one for adults and one for the children. The excitement at the resort is certainly turbo charged while there seems to be no end to the innovating ferment of Akinboboye.

Wells Carlton Hotels and Apartments recounts feats barely a year in business IDRIS UMAR MOMOH, Benin

arely a year in business, Wells Carlton Hotels and Apartments Abuja is soaring high in the hospitality business amid keeping to its promise high quality offerings. Since inception, the hotel, which is located in the Asokoro District of Abuja, (about 4 minutes drive from the Presidential Villa) has developed a tradition of hospitality excellence, providing the much-needed quality service to local and international visitors, while reaping from the economic gains inherent in the sector. The hotel features worldclass leisure facilities including; state-of-the-art swimming pools, gym and fitness centre, business centre, spa, gift shop among

others. The hotel’s Tirta Ayu Spa, is an exotic haven where guests are treated to authentic Japanese and Indonesian spa experiences, a blend of ancient therapeutic remedies and modernday spa rituals for healthy living and total well-being. According to Juergen Odenwald, managing director of the hotel, top among

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the visions of the investors was to ensure that the hotel competes favourably with the best hotels in the world and also to redefine hospitality business in Africa. He added that the hotel, which commissioned by Yemi Osinbajo, the vice president, had in the last one year become a destination for discerning and high profile guests.

Odenwald commended Hosa Okunbo, the chairman of the hotel, for the investment, which he noted has changed the face of hospitality and eco-tourism in Abuja. He said the hotel had played host to the colorful wedding of Nigeria’s Super Eagle Star, Wilfred Ndidi, and has also been patronized by Nollywood actress, Kiki Omeili, creative style director, Ogugua Okonkwo, Tonto Dike, Alibaba, Davido, Kiss Daniel, Tuface, Patoranki, popular celebrity blogger, Ono Bello, amongstothers. The managing director also explained than the hotel played host to Hilton Union’s management’s retreat, Luxury Network Nigeria, various luxury brands and service providers from hospitality, financial, private airline operators, media and real estate sectors.

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Top BusinessDay Partner Hotels Four Points by Sheraton Hotel (Oniru Chiefatancy Estate,Lekki) Tel: +234 1 448 9444

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

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos. Tel: 01 277 3560

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

Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

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

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

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

Southern Sun IkoyI Hotel Address: 47 Alfred Rewane Road, Ikoyi, Lagos Tel: +234 1 280 5200 / +234 1 280 0630 Email: ssikoyi.reservations@ tsogosun.com

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

Friday 28 June 2019

Harvard Business Review

BUSINESS DAY

MANAGEMENTDIGEST

The big idea: Using improv to unite your team FRANCESCA GINO

ver the last couple of decades, work has increasingly been done by teams rather than by lone individuals. Surveys suggest that teams are central to engaging employees. Yet we know from years of psychology and management research, including pioneering studies by psychologist J. Richard Hackman, that teams often don’t improve employee engagement or productivity. Among the biggest reasons: Leaders tend to dominate the conversation; they don’t listen and shut down others’ ideas. Consequently, team members are often too afraid, or simply too bored and disengaged, to contribute their own thoughts. In my academic research, I’ve looked at many different types of teams, at a wide variety of organizations all over the world. The group that communicated best, with everyone contributing and learning, wasn’t in a corporate office park; it was in an improv comedy class. I’d signed my husband and myself up for a 10week course to break out of the usual dinner-and-a-movie date nights. To my surprise, this weekly escape offered tools for improving the humdrum work of the teams I’d been observing. In improv comedy, whether people are building a scene or telling a story, everyone has a chance to talk. Members’ contributions are welcomed and valued, and participants collaborate and support one another as they work toward a common goal. Getting everyone involved in this way is important: When we discuss each other’s ideas and perspectives, we learn from them and our decisions improve. Plus, the more we feel that others value our contributions, the more likely we are to share our ideas. The following three improv techniques can be particularly

helpful to leaders interested in engaging their teams. 1. INSTEAD OF GETTING READY TO TALK, LISTEN. Paying careful attention to what others are saying — listening fully to them and not speaking until they are finished — is a core principle of improv. That’s because your goal isn’t to plan what you’ll say next; it’s to respond in the moment to what your partner says. And that is possible only if you are listening attentively and are attuned to the emotions and rhythm your partner sets for the scene. Having to wait until someone has finished speaking helps us be fully present and absorb what they’re saying. There are many improv games that can help performers become better listeners. One that our class played often is called “Last Word Response,” which requires you to respond to your partner by using the last word they said. If your partner said, “I had a dream last night where a mouse became best friends with five cats,” you would need to come up with a sentence that starts with “cats.” The game teaches people to listen fully instead of jumping in or silently planning their re-

sponse before their partner is done speaking. Leaders might try a version of this game during team meetings: After someone finishes speaking, the next person should begin his response with that person’s final word, or at least the person’s last idea. And leaders should make sure to follow the rules like everyone else. Listening also involves giving others a chance to speak and not taking up too much airtime. That means people must convey their thoughts briefly and clearly rather than dominating the discussion. 2. DON’T ASSUME YOU HAVE ALL THE ANSWERS. Because we’re all attached to our ideas, we often have difficulty staying open-minded when others take the conversation or the team’s work in a new direction. In fact, my colleagues and I found in our research that once people have decided on a course of action, moving away from it is challenging, even when evidence suggests the initial decision was wrong. And the more we feel like an expert on a topic, the more challenging it is for us to change our minds. In improv, the currency you’re trading with is unpre-

dictability. You never know what your partners will say next, what reactions you’ll inspire or even when and how the scene will end. That’s part of the beauty of improv: You’re always reacting purely in the moment. This same type of openness can benefit the work that happens in teams. Leaders should invite it by telling their employees at the start of the meeting how important acceptance is and asking “Why,” “How” and “What if” types of questions to show curiosity. As I wrote in a previous HBR article, curiosity can open up communication, reduce conflict and improve engagement. 3. HELP EVERYONE FEEL SAFE ENOUGH TO CONTRIBUTE. Group conversations would be more effective if we approached them with curiosity. All of us are too quick to judge others’ ideas, and this urge becomes even stronger for those with some degree of power over others. Power differences aren’t as obvious in improv, but players who are more talented or confident could easily take over a scene. Improv tempers this risk through a core principle: “Yes,

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and ... ” That is, even when you aren’t excited about the direction someone has chosen, you accept the terms of the scene and then add to them rather than contradicting them. Let’s say the first player in a scene offers you something: “Here, have an apple.” Your reply shouldn’t be, “This isn’t an apple. It’s a very small watermelon.” That response might buy you a laugh, but it would kill the scene. A better response would be, “Yes, and we can fill it with poison before we give it to the queen.” The “Yes, and ...” rule requires players to accept all “offers,” or premises, and make their partner look good by building on the scene he started. Leaders can rely on the same principle to ensure team members stay engaged. In business settings, this technique is known as “plussing”: building on someone’s idea and saying “Yes, and ... ” rather than “Yes, but ... ” By communicating curiosity rather than judgment, plussing softens criticism — making it easier to hear and use. Whether on a stage or in a work team, an open atmosphere fosters confidence, spontaneity and trust. In my research, I’ve found that employees feel much more comfortable offering ideas when their leader has demonstrated that she is open to them. In doing so, a leader shows that she respects her employees and gives them the confidence and sense of safety needed to speak their minds. By applying these improv techniques in their teams, leaders can help everyone have more fun and encourage more creative ideas. Everyone will feel heard — and believe that working on a team is better than going it alone.

Francesca Gino, a behavioral scientist and a professor at Harvard Business School, is the author of “Rebel Talent.”

Friday 28 June 2019

BUSINESS DAY

entertainment

Meet new filmmakers hoping to change old narratives OBINNA EMELIKE

n Tuesday, June 18, 2019, five young filmmakers started their journey in the Nigerian film industry with the hope of making a difference with their stories. The budding talents, who emerged from the academy after a pitch session, participated in the third edition of Accelerate Filmmaker Project. After one week of intensive training courtesy of Accelerate TV, the winners, also known as ‘The Filmmaker 5’ will be mentored by experienced filmmakers. The mentors include; Kunle Afolayan, who will mentor Tosin Ibitoye; Niyi Akinmolayan, who takes care of Alfa Farouk Umar; Victor Sanchez, who will mentor Adetola Films ;

The new filmmakers with their would-be mentors

Kemi Adetiba, who will mentor Miriam Dera, and Seyi Babatope, who is expected to mentor Olabisi Akinbinu. Kicking off the final day

of the training, Herbert Wigwe, group managing director, Access Bank Plc, visited the academy to congratulate the trainees and also wish them luck as

they proceed to pitch ideas. Selected filmmakers will shoot their films with support from the mentors and Accelerate TV. “The world is changing

and Nigeria is beginning to pay attention to young creative people. No matter the outcome, I urge everyone to keep telling your stories without fear. Recognize the power in your creativity and prepare to own your position in the industry. You are the only ones who can truly tell our stories, and the world is ready to listen to you. Do not be scared to make your mark in the filmmaking industry. This is just the beginning,” Wigwe emphasized. Colette Otusheso, head of Accelerate TV, who announced the winners said, “During the training we were focused on building the talent and skills of our budding filmmakers. As long as you participate, you are all winners, and we completely believe strongly in your abilities. Though only five stories can be selected from the academy, the journey con-

tinues, so you have to keep telling our stories”. Colette also presented the twenty-five participants with certificates while also announcing that the top five ideas will be made into short films by Accelerate TV with support from Access Bank Plc. The films will be screened at the Africa International Film Festival (AFRIFF). Accelerate TV is a lightning rod for cultural provocation, and prides itself in entertaining, educating and empowering its audience by documenting Nigerian/African stories and pop culture, all the while keeping a close eye on the establishment and championing the new. Some of its shows include: Shade Corner, Fashion Fix to The Wrap Up, King Women, The Maverick, Day Pass, Accelerate 9 and more.

AFRIMA hosts Stakeholders’ Conference in Cameroon today …As entry submission closes on August 2nd

n its continual drive to build capacity for knowledge sharing among African music professionals and culture enthusiasts, the 6th All Africa Music Awards, (AFRIMA), will host music and culture industry stakeholders at a Stakeholders’ Conference holding today Friday, June 28, 2019 at the Las Vegas VIP, Sable, Bonamoissadi, Douala, Cameroon. The AFRIMA-Cameroon conference will specifically reveal details of the 6th AFRIMA entry submission process and other programmes for the annual continental

awards to effectively engage music talents and content creators who are key stakeholders and beneficiaries of the awarding process. The 6th AFRIMA Entry Submissions that closes on Friday August 2, 2019, is open for entries to artistes, songwriters, video directors, producers, dancers/choreographers, DJs and un-recorded artistes of African origin living on the continent and in the diasporas. According to Ernest Ewane, AFRIMA Regional Director, Central Africa, “AFRIMA is sharing the spirit of Pan-Africanism for greater

Stanley Enow (2015 winner, Best Male Artiste in Central Africa www.businessday.ng

collaborations in culture, music and entertainment for sustainable development in line with the African Union (AU) cultural agenda for peace building, integration, democracy, economic advancement and youth social development. The conference will also focus on AFRIMA 2019 build-up events, which include Turn Up Africa Music Concert & Conference, the Adjudication Process, the Nominees’ Announcement, Public Voting and the Main Awards Ceremony events such as the Africa Music Business Summit; the AFRIMA Music Village, and the Awards Night, which comes up in November. Expected to attend the event in Cameroon are music professionals, creative experts, cultural industry practitioners, recording artistes, record labels, artiste managers, publishing companies, policy makers, government officials, business and media practitioners in Cameroon and neighbouring countries. Some past AFRIMA winners and nominees from Cameroon are Stanley Enow (2015 winner, Best Male Artiste in Central

Africa, and 2016 winner, Best Artiste in African Hip Hop), Charlotte Dipanda (2015 winner, Album of the Year, Best Artiste in African Contemporary, & Best Female in Central Africa), Montess (2017 winner, Best Female Artiste in Central Africa), Nde Ndifonka-Wax Dey(2016 winner, Best Male Artiste in Central Africa), Daphne (2018 winner, Best Female Artiste in Central Africa), Locko (2017 winner, Best Male in Central Africa), Salatiel, Magasco, and Mr. Leo amongst others. The Cameroon event partners include Calabash, Las Vegas VIP, and Atalaku Music. In partnership with the African Union (AU), the All Africa Music Awards is a music and cultural initiative developed to celebrate, reward and showcase the rich musical heritage of Africa. It is also aimed at stimulating conversations among Africans and the world about the great potentials and values of the African culture and artistic legacy for the purpose of creating jobs, reducing poverty, calling attention of world leaders to Africa and promoting the positive image of Africa to the world.

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Mercy Johnson to launch talk show this July IFEOMA OKEKE

ward winning actress, Mercy Johnson Okojie, is set to launch her new ‘Kitchen talk show’ called, Mercy’s Menu, from July 2019 where she talks to fellow celebrities about their lifestyle, their opinion on life issues and their intimate secrets while cooking. The 13 episode show features veteran Nollywood actress, Liz Benson and other popular celebrities like AY, Chigul, Omawumi, Niniola, Ufuoma McDermott, Lolo 1, Maraji Busola Dakolo, Kemi ‘Lala’ Akindoju, Ill Bliss and Munachi, Lagos House Wife (Rayo) and her beautiful family, Prince Odi Okojie, Purity, Henry and Angel Okojie. “A lot of people think that celebrities’ lives are @Businessdayng

perfect but they are not. I love to cook and talk; getting people to talk over food is one of the most enjoyable things I have done”, the Nollywood star revealed. “I call it a “Kitchen Talk show” because it happens around food and we talk about a lot of important things in the kitchen”. Shot on location at Pedini Bosch Kitchen in 2018, Mercy roots out juicy information from her guests on family, work, scandal and some of the most challenging points of their lives. The show promises to be exciting, funny and emotional. The show is set to be aired from July 6, 2019 on African Magic Showcase -just before Big Brother Nigeria highlights- by 18.00 C AT (5.00pm Nigerian Time) on Saturdays.

Friday 28 June 2019

BUSINESS DAY

entertainment What’s wrong with your presentation? Business etiquette

Janet Adetu

any times, I have been asked by organizations if I can train their staff in presentation skills. It is my assumption that the biggest problem many people have is stage fright that is the feeling of fear and anxiety or simply put what I call butterflies in their stomachs when it comes to speaking among a crowd of people. The art of presentation requires speaking about a relevant topic, among people you may know or not know. Being the focus of attention at this time may place you in a position of vulnerability, simply because all eyes are on you basically judging you based on several factors. This could be from your dressing to your total look, your voice to your ability to communicate and your behaviour to your overall conduct. Personally, I see more than just stage fright when it comes to people and presentation abilities. Read on to learn about those attributes that negatively impact your presentation that I have discovered overtime. Your Dressence Your dressing is one major area you should not overlook as it is imperative that you make a conscious effort to

choose once you are going to give a presentation, a speech or be a spokesperson at an event. I have noticed that this area seems to be the least on the minds of some people. There are incidences of the wrong outfit for both the occasion and the environment, that automatically excludes your presence. Incomplete dressing also is another error made which may be represented by wearing casual slippers, the lack of a jacket on shirt and trousers. It is a major image saboteur when I see speakers dress so casually for a formal conference that speaks about leadership or has specific professionals in attendance. I believe they are unaware how their presence can impact their reputation on stage. Your dressing speaks volumes before you say a word, it is representative of who you are as it creates an impression of you that you may never be privileged to know. It is a pre-requisite that you try to ensure that you give off a positive perception of you that draws people to you in an authoritative and approachable manner. Avoid wearing anything that will distract attention away from you, and what you are saying. Try to seek the assistance of an image consultant who can help coordinate the right dressence, colour coordination and fit. All these will help you effectively impact your audience. Body Language Action they say speak louder than words, whether you consciously or unconsciously know this, as you approach the stage, the platform or the audience whatever you do once you are in front of them will communicate something. Now this may stem from telling the audience that you know what you are saying, you are seasoned in the area of discussion, you are about to inform

them and increase their knowledge base or much more. I have seen where the body language clearly says that the person is afraid, now this is normal for a person who is presenting for the first time or who generally does not do this on a regular basis. It is not to say that you should voice out your fears that we can already see. It is the need to give off that body language that says you are in control. Recently I attended an event where one of the speakers came up to give her three-minute speech/ presentation. She seemed to have started off quite well, bubbly and articulate only to change her body language by pausing and holding then finally announcing that she was not used to speaking in front of a crowd of people. Automatically as soon as she said It, her body language moved from assertive to uncomfortable all so unnecessary just because she blurted out her fears. At this point the crowd had to cheer her on to complete her speech. It is important to work on your body language to read positive signs and not negative. Keep smiling, keep your eye contacts and command your audience in the best way you can. Avoid announcing your deficiencies as overtime you can only get better. Your Voice I marvel at how different people use the microphone that is the gadget that is provided to project your voice louder and clearer. The presence of the microphone does not suggest that your voice should be lowered or even used in the same manner as if you were having a one on one conversation. You will still need to project your voice in terms of increasing your tempo and tone where necessary. No doubt our voice will not sound completely the same to you because of the

‘

This could be from your dressing to your total look, your voice to your ability to communicate and your behaviour to your overall conduct

speaker output, this is such that you are heard better. I have seen a lot of people still inaudible when using a microphone either because they have not mastered the need to project their voices well, they are soft spoken, or they just have no real clue what to do. At times the fault can be a technical one this can effect the output of your voice. If your voice is unclear your presentation will be totally lost this immediately allows the listeners to engage in their own discussions leaving you to battle to be heard over their crowded noise. Always make it a point where you can test the microphone to avoid hitches during your presentation. Practice well and get to know your own voice. Your Habits Without knowing it you may cultivate certain habits that you consistently do as you conduct your presentation. I have seen incidences where to alleviate any fears or anxiety some people like to chew gum. This is an unpleasant sight when you are talking especially when the gum is visible. Remove any forms of eating before you commence a presentation if only to be heard clearly. I have also seen presenters place hands in their pocket while talking, persistently walk up and down in a frequent manner that distracts the listener, bang on the lectern to drive a point home that is visibly a noise as they bang and repeat how they have finished or come to the end where 5 – 15 minutes later they are still talking. Action they say speak louder than words, whether you consciously or Please share your experience with me by sending an email to or janet. adetu@jsketiquetteconsortium.com. / jtadetu@ gmail.com Follow and like @janetadetu @jsketiquetteconsortium I look forward to hearing from you.

Trophy seeks to discover, lift grassroot talents

f you were at Okelewo, Abeokuta, Ogun State, for the African Drum Festival this year, you would be thrilled by the spectacular performances on stage by the participating groups and countries. But the honourable touch of Trophy Lager was well-felt at the festival. Trophy Lager, a brand from the stable of International Breweries, sponsored the festival because of its root in the South-West region’s socio-cultural values. The brand further tapped into Nigeria’s love for music by organising a series of music concerts to celebrate its loyal consumers. The concerts were organised in Ibadan and Ilesa with a retinue of rave making musicians at both events. The concert had the likes of Pasuma, Oritsefemi, Teni the Entertainer, Slim Case, Taiye Currency and a host of others. Beyond entertainment, Trophy is also growing grassroot talents, especially in football, which means many things to people. In Nigeria, football has a cult-like following with young people turning the streets to football pitches as they play 5-a-side matches. The matches are a variation of association football, in which each team has five players, comprising four outfield players and one goalkeeper. The Nigerian youth, quite content with transforming their foot wears into goal posts even adopt the names of their football heroes as aliases and swell up with pride when they are hailed by those names. That they are talented is not in doubt, what they seek are opportunities or platforms to showcase their skills and dexterity to the world. Aware of this seemingly neglected culture and the developmental potential it possesses, International Breweries PLC, proud member of world’s largest brewer, ABInBev through one of its leading brands; Trophy Lager introduced a

5-a-side football tournament. The tournament saw teams from communities in Ogun, Osun, Oyo and Lagos states slug it out to win the cash prize of N3 million, and an opportunity to meet Samuel Eto’o, renowned African football superstar, and learn a thing or two from him while participating in the continental finals taking place in Tanzania later this year. The process was quite simple. All consumers needed to do was to purchase a predetermined number of Trophy lager and register their team of 10 players for the tournament at Trophy designated bars in their neighborhoods. A total of 1080 teams entered into the competition, which comprised several knockout rounds. The pace picked up further with the quarter and semi final rounds and Scope FC of Lagos emerged as the eventual winner of the maiden edition. They will in a few weeks be flying high the flag of Nigeria in the ‘Africa 5 tournament’ regional finals, which holds in Tanzania. Third and second placed teams;

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Amsterdam FC of Obalende and Ifayemi FC of Ile-Ife, were also presented with N500,000 and N1,000,000 respectively. To mentor the team during the process, IB PLC enlisted the help of Joseph Yobo, Nigerian ex-international football player and one-time Super Eagles captain, as campaign ambassador. Yobo fits perfectly with the IB PLC goal as he is heavily involved in the development of grassroots talent. No surprise here, as he too began his career by playing in the rural areas of the South-Southern region and went on to become a great soccer star, playing for top clubs in Europe. Through his foundation, Yobo continues to inspire many and has launched a football academy in prisons to help secure release of many inmates while giving them hope for a brighter future after incarceration. In her closing remarks at the finals of the tournament, Annabelle Degroot, managing director, International Breweries Plc, expressed her hope of one day looking back at the Nigeri-

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an national team and realizing that a few of the players were discovered while playing at one of Trophy’s 5-a-side tournaments. “The tournament has been incredibly successful thanks to the camaraderie displayed by all our teams. We are grateful to the participants and look forward to the Nigerian team joining the regional finals in Tanzania. It would be our dream to see a future Super Eagles grown from the community ranks through the Trophy Field of Honour.” Although the maiden edition did not get to the six geopolitical zones, Trophy lovers from all over the country also got the opportunity to participate in the fun by becoming Super Fans. The selection process of the super fans who will accompany the Nigerian team to Tanzania was conducted nationwide with winners selected through a raffle draw during the finale. Four super fans have now been selected to accompany the winning team on an-all expense paid trip to Tanzania. The Trophy 5-a-side tournament like many other initiatives from IB PLC, was created to support Nigeria’s passion for developing talent, creating opportunities, fostering goodwill and encouraging patriotism in the country. Folorunsho Sunday, captain of the winning team, expressed his gratitude to International Breweries for providing such a platform for youths to showcase their skills, it served as a clear testament that the Trophy 5-a-side tournament had achieved its set goal. For the brand and the sundry beneficiaries of the campaign, it has been a case of preparation meets opportunity. International Breweries has clearly identified the passion points of the consuming public and it is relentless in the pursuit to stay in touch through this very accomplished strategy, which brings value and satisfaction to the consumer.

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Friday 28 June 2019

BUSINESS DAY

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Friday 28 June 2019

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Thursday 27 June 2019

Top Gainers/Losers as at 27 June 2019 LOSERS

GAINERS Company

Opening

Closing

Change

Opening

Closing

Change

NESTLE

N1350

N1400

N62

N57.5

-4.5

SEPLAT

N500

N530

N30.4

N27.4

-3

INTBREW

N16.7

N18.3

1.6

OKOMUOIL

N66.6

N64

-2.6

N12

N13.2

1.2

BERGER

N7.15

N6.45

-0.7

STANBIC

N40

N39.5

-0.5

N184

N185

CCNN DANGCEM

Company

ASI (Points) DEALS (Numbers) VOLUME (Numbers) VALUE (N billion) MARKET CAP (N Trn

Global market indicators

29,749.35 4,187.00 301,175,412.00 5.032

FTSE 100 Index 7,402.33GBP -14.06-0.19% S&P 500 Index 2,923.59USD +9.81+0.34% Generic 1st ‘DM’ Future 26,566.00USD +16.00+0.06%

12.518

Deutsche Boerse AG German Stock Index DAX 12,271.03EUR +25.71+0.21% Nikkei 225 21,338.17JPY +251.58+1.19% Shanghai Stock Exchange Composite Index 2,996.79CNY +20.51+0.69%

Stock market gains N62bn, halts negative trend …as Nestle, Seplat, Dangote Cement others rally -5.35percent. The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.47percent from 29,609 points to 29,749.35 points. The value of listed stocks increased from N13.047trillion to N13.109trillion. Nestle Nigeria Plc stock price advanced most by N50 or 3.70percent, from N1350 to N1400. It was followed by that of Seplat which gained N30 or 6percent, from N500 to N530. Also, International Breweries Plc stock price rallied from N16.7 to N18.3, adding N1.6 or 9.58percent. Other big gainers include Cement Company of Northern Nigeria which rallied from N12 to N13.2, adding N1.2 to 10percent; while Dangote Cement Plc

Stories by Iheanyi Nwachukwu

igerian stock market gained N62billion at the close of trading on Thursday June 27, which helped the local Bourse to change from a three-day negative path. Heavyweights like Nestle, Seplat, and other stocks led the market into the positive zone at the sound of trade closing gong. The week-to-date (WtD) loss decreased to 0.34percent, the monthto-date (Mtd) negative return also stood lower at -4.25percent, while the year-to-date (Ytd) negative return moderated to

moved up from N184 to N185, adding N1 or 0.54percent. Meanwhile, many investors moved to sell stocks of Nigerian Breweries which crashed the price by N4.5 or 7.26percent. Nigerian Breweries decreased from N62 to N57.5; followed by that of Forte Oil Plc which declined from N30.4 to N27.4, after losing N3 or 9.87percent. Okomu Oil Palm Plc declined from N66.6 to N64, losing N2.6 or 3.90percent. Tanscorp, GTBank, Access Bank, FBNHoldings, and Zenith Bank were actively traded stocks. In 4,187 deals, stock dealers exchanged 301,175,412 units valued at N5.032billion.

SEC to commence capacity building on Commodities Exchange

UAC pays N1.84bn dividend, discusses future direction

he Securities and Exchange Commission (SEC) is ready to commence capacity building of stakeholders and the public on commodities exchange to bridge existing knowledge gap. This is part of the implementation of the report of its Technical Committee on Commodities Trading Ecosystem. Mary Uduk, acting Director General of the SEC stated this when a delegation of the Commodity Brokers Association of Nigeria (CBAN) led by its Registrar, Saleh Kwaru visited the Commission in Abuja. Uduk who was represented by Acting Executive Commissioner (Operations) of SEC, Isyaku Tilde, said the Commodities Trading Ecosystem committee’s report, published on SEC’s website, contains no fewer than 40 recommendations on how to have an efficient commodities exchange. “One of the recommendations, is capacity

AC of Nigeria Plc (UAC) has paid dividend of N1.844billion, despite the weak group performance in 2018. Also, the company has unveiled its new strategic initiatives to boost growth in the business. The dividend of N1.844billion in respect of the 2018 financial year translates to a gross dividend of 64 kobo per ordinary share of 50 Kobo. In his address at UAC’s Annual General Meeting (AGM) in Lagos, the Chairman of the Company, Dan Agbor, said the Company currently works on a plan to stabilise its real estate business, UACN Property Development Company (UPDC), which constitutes a drain on the group’s performance.” He further told the shareholders that, “We are encouraged by the initiatives implemented thus far but recognize that a significant amount of work lies ahead.”

building of stakeholders and the public on commodities exchange, to bridge existing knowledge gap to ensure we reap the benefits of trading in commodities. The SEC is ready to partner with CBAN in that regard. “The aim of SEC is to have an efficient commodities exchange because right now that sector of the capital market is dormant. Part of the issues that the committee is trying to address is capacity building and public enlightenment campaigns. I believe that part of the things CBAN is doing is capacity building, which is one area where

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we can collaborate going forward,” she said. Earlier, Kwaru commended the SEC for developing the Nigerian Capital Market Master Plan, and for registering two private commodities exchanges to open up the market. Kwaru said the association started 13 years, and currently had 800 members certified by the Nigeria Commodities Exchange (NCX) to provide training. He said, “We have been training people since 2009. We currently have 800 members, 15 of whom are SEC staff members. Today, we have close to 200 commodities brokers registered with NCX., and with this, we are set to operate on the floor of the NCX as soon as its trading platform is ready. “We are here to seek your support as the regulator, because we learnt there are other administrative processes that the brokers have to undergo to be licensed by SEC” he said.

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At the meeting, the shareholders received and adopted the report of directors, the consolidated statement of financial position of the company as at December 31, 2018, together with the consolidated statement of comprehensive income for the year ended on that date and the reports of the auditors, the audit committee thereon. “It is important to mention that one of the key elements of the strategic plan of your management is for the Company to operate as a much simpler and leaner holding company, with the main focus being on the subsidiary companies,” Agbor said. He added: “We are strengthening and empowering the management and Boards of subsidiary companies to drive value creation and increasing their accountability for delivering ambitious plans. Towards this end, we are carrying out a comprehensive review of our organizational structure to ensure increased auton@Businessdayng

omy and effectiveness of operating subsidiary companies.” The chairman assured the shareholders that the Company’s contributions to the industrialization and economic, political and social development of the country in the last 140 years of UAC’s existence would be sustained. Agbor noted that even though 2018 was a challenging year for the business, the Company recorded growth in its packaged foods, logistics, paints and quick service restaurant businesses. Commending the shareholders for their continued support and contributions to the growth of the Company, Agbor stated that the Animal Feeds and other Edibles businesses were negatively impacted last year due to heightened competition with attendant pressure on prices and margins.

Friday 28 June 2019

BUSINESS DAY

Sports Will Neymar agree a €12m pay cut to return to Barcelona? Stories by Anthony Nlebem

eport in Spain says Barcelona have reached a verbal agreement with Paris SaintGermain (PSG) playmaker Neymar over his return to Camp Nou - two years after the Brazilian left for a world record fee. Neymar is set to earn £400,000-a-week in a 5-year and for that deal to happen, Neymar will take a significant cut in salary, from €36.8 million per season (second highest in world football) to €24 million, a €12million reduction as was his contract before leaving PSG. Sport journalist Albert Masnou also claims that due to Neymar’s desire to return, he did not even try to negotiate the amount. Barcelona president Josep Maria Bartomeu is also willing to drop all legal

issues against Neymar. The club had taken their former star player to court over loyalty bonus when it became obvious Neymar was prepared to force his way out of Barcelona to PSG.

Now all that is left to do, the paper says, is for the clubs to come to an agreement on an appropriate transfer fee for the player. As previously reported by Le Parisien, the Ligue 1 side are looking to

HiFL 2019: Four teams advance to round of 16

niuyo Tuskites, Unical Malabites, Abu Nobles and Kust Pyramids have all advanced to the round of 16 in the ongoing 2019 Higher Institutions Football League (HiFL) 2019 season on Thursday, 27 June. UNICAL MALABITES emerged as group C winners after qualifying automatically due to their outstanding performance as one of the Super 4 in the 2018 season, while UNIUYO TUSKITES go through as

runners up after ousting DELSU TITANS by virtue of scoring the most goals after they both ended with a goal difference of +1. UNIU YO T U SKI TE S, opened the group games with a comfortable 4:1 win over IAUE Minders, thanks to Idara Jude’s impressive hat trick and Ikemefuna Frank’s converted spot kick before ending the group with a disappointing 2 nil loss to DELSU Titans. However, they hung on to go through alongside group leaders UNICAL Malabites.

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UNIUYO TUSKITES are paired in group C, with UNICAL Malabites, DELSU Titans and IAUE Minders. In Zaria, ABU NOBLES topped Group G with 9 points to go through to the round of 16, after outclassing their opponents to outline their intentions as contenders for the trophy. The other qualification spot in the group however went down to the wire as KUST PYRAMIDS emerged after securing a hard fought win against ATBU Bravehearts. The match which ended 3-1 in favour of KUST will see them join ABU NOBLES as one of the qualifiers from the group at the expense of UNIMAID DESERT WARRIORS who lost narrowly in the other fixture in the group. The league is organised by PACE Sports and Entertainment Marketing in partnership with the Nigerian Universities Games Association (NUGA). The top 32 Universities from NUGA-member institutions will play over a period of 21 weeks, with the final four billed for the Agege Stadium, Lagos.

make a profit on the man they plucked away from Barça, and are demanding 300 million euros. Although in simple terms this is likely a price too high to pay, other conditions - for example including players in part exchange - could allow the two football powerhouses to find a satisfactory middle ground. If not, Sport confirm, Real Madrid would be the only other option potentially available to him. For Neymar’s part, money has been put as a lesser priority than achieving greatness, following a period in France that did little for his reputation. If this move becomes a reality, he will have a chance to restore his name as one of football’s very best. Neymar still has three years left on his current deal, and PSG want to recoup at least as much as they doled out for the forward. These negotiations will be made harder by the fact that the clubs’ relationship has deteriorated since 2017, with all the work being done by intermediaries as it stands.

Again, considering how Naymar joined Barcelona in 2013 from Santos for an undisclosed fee, when it was reported that Real Madrid had finalised arrangement to bring him to Santiago Bernabéu. But the football world was shocked to hear the news that Neymar opted for Barcelona. In 2017, the 27 years old dumped Spanish giant to sign for French football outfit PSG for a record €220 million, ending his four years ‘marriage’ with Barcelona. Now, report has it that Neymar has agreed to make a return to Barcelona with a whooping €12 pay reduction. But the question is; will Neymar’s loyalty still remain with Barcelona? What if another club offers him more money? On Thursday, Barcelona vice-president Jordi Cardoner denied reports that the club are making a move for Neymar this summer “It’s correct that Neymar wants to return to Barcelona,” Cardoner said. “But Barcelona are not

thinking about signing Neymar. This subject is not up for discussion. “There are many things that Barcelona did not like about his departure to Paris Saint-Germain, many things to resolve. “You have to move on. People are saying we have signed Neymar; we have not signed anyone. We have not been in contact with him. He and lots of other players want to play for Barcelona. “It does not surprise me that Neymar wants to come back. It has happened before. Some have left and come back; Cesc Fabregas, Gerard Pique... “Neymar is a great player, but you have to consider the circumstances surrounding his departure to know if these predictions will become reality one day.” With these punchy statements from Barcelona vice president, its too early for Barcelona fans to rejoice or celebrate the news of Neymar’s return as the player seems to be loyal to Money

Skoro, Agbaje in war of words ahead of GOtv Boxing Night 19 … As ‘TP Rock’ eyes national champion belt

head of their bout, former African Boxing Union featherweight champion, Waidi “Skoro” Usman, and his next opponent, Taiwo “Esepo” Agbaje, the national champion, have launched a war of words. Both boxers are due to clash in a national featherweight challenge contest at GOtv Boxing Night 19, scheduled to hold on July 14, at the Indoor Sports Hall of the National Stadium in Lagos. Skoro, who lost a bid for the International Boxing Federation (IBF) Africa title to a South African in July 2018, has boasted that Agbaje will be defeated in dismissive fashion. While admitting that the national champion is a good boxer, Skoro, however, he boasted that he has too much ability for a boxer of Agbaje’s profile. “Agbaje is good, but not great. I have fought great boxers and he cannot be listed among such. He will be defeated in the fourth round. He is still many levels below the opponents I have defeated and therefore stands no chance,” said Skoro. But the national champion believes that Skoro’s claim of superiority is empty. Agbaje, winner of the best boxer award at GOtv Boxing Night 16, said Skoro’s time has long gone. “He is old and weak. I’m

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young, strong and quicker. I will show him that his time has gone. It is a waste of time to trade words with him. Actually, I speak better with my fists and Skoro will hear me loud and clear when he starts feeling a rain of punches,” bragged Agbaje. Also, rising featherweight boxer, Tope “TP Rock” Musa has announced his desire to be the next national champion in the division. The boxer, whose next fight is against Kazeem “The Light” Oliwo, said he sees his opponent as a stepping-stone to the national title. “I’m convinced that I will be the next champion. The fight with Oliwo is a warm-up for me. He is far behind me @Businessdayng

and I do not expect any other outcome than victory because I’m better and fully prepared,” said TP Rock. Not many will dismiss his claim, given his performance at GOtv Boxing Night 16, which he narrowly lost to Taiwo “Esepo” Agbaje, the current national champion and winner of the best boxer award at the event. “I lost narrowly, but everybody present knew I gave a good account of myself. It was a really close contest and I’m certain that if the opportunity presents itself again, I will defeat Esepo,” he said. GOtv Boxing Night 19 will be beamed live on Africa’s biggest sport channel, SuperSport, in 47 African countries.

Friday 28 June 2019

STORIES BY ANTHONY NLEBEM

adagascar moved a step closer to a historic qualification to the knockout stages of the 2019 Africa Cup of Nations (AFCON), after they defeated fellow debutants Burundi 1-0 at the Alexandria Stadium on Thursday. Madagascar raised their tally to four points go second of Group B two points shy from leader Nigeria and move to the brink of reaching the eighth finals in their first ever AFCON appearance. Marco Ilaimaharitra’s thunderous free-kick gave

lgeria narrowly edged Senegal to book a place in the Africa Cup of Nations (AFCON) round of sixteen. The match was billed as a showdown between Algeria winger Riyad Mahrez, of Manchester City, and Senegal’s Liverpool forward Sadio Mane but both players had

Madagascar their first Africa Cup of Nations win by beating Burundi. The former France youth international smashed his effort into the top corner after 76 minutes to maintain his side’s unbeaten record. Carolus Andriamahitsinoro’s free-kick and thumping drive were kept out by Burundi keeper Jonathan Nahimana, as well as a header cleared off the line. Burundi’s best chance fell to Enock Sabumukama, who struck narrowly wide. Stoke striker Saido Berahino barely had a sniff of goal for Burundi before being subbed after 61 min-

quiet games. Youcef Belaili blasted home the only goal of the game from the edge of box from Sofiane Feghouli’s cross. Senegal almost equalised with the final action of the game, with Mane heading over from close range. Africa’s highest ranked team need to beat Kenya in their final group game to be guaranteed a place in the knockout stages.

utes. His side are bottom of Group B having lost both their games. Madagascar are second in the group with four points after this victory and a draw against Guinea. They face Nigeria, who are top with six points, in the final group game on Sunday. The game started on a low note as both sides opted for a cautious approach. The first chance was delayed till the quarter hour mark when Carlous Andriamatsoro had a long range shot that found the safe hands of Burundi’s goalkeeper Jonathan Nahimana. He was again the hero for “Les Hirondelles” four minutes later when he stopped an-

Mane was unfortunate not to win a penalty when he was sandwiched by Adlene Guedioura and Ramy Bensebaini with 20 minutes to go. The video assistant referee system does not come in until the quarter-final stage. The game did not live up to the hype, with Senegal not having a shot on target until the 78th minute when Youssouf Sabaly’s 20-yard shot was parried by Rais M’Bolhi and Mbaye Diagne put the rebound wide from

other scorcher from Andriamatsoro. Cedric Amissi had Burundi’s first effort on target after 27 minutes but the defense was there to stop the effort. Ima Andriatsima tried to break the deadlock but his header missed the target by a slim margin. Both teams went to the dressing rooms with a barren draw. The second half was no different story with rare chances for both sides in

close range. There was no action of note in the first half at the 30 June Stadium in Cairo, with former West Ham winger Feghouli curling wide moments before setting up the only goal. Stoke City midfielder Badou Ndiaye blazed a shot over for Senegal just after the hourmark and Mahrez, in a rare moment of magic, lashed an effort just wide from long range.

the first 20 minutes. Gael Bigirimana send a beautiful shot from a freekick at the hour mark but the ball went just over the target. Bigirimana tried his luck once again from the same situation after 68 minutes but Malgasy goalkeeper Adrian was there to save his side. Marco Ilaimaharita broke the deadlock for Madagascar 14 minutes from time. Substitute Paolin Voavy was fouled on the edge of

gyptian midfielder, Amr Warda, has been sent home from the Africa Cup of Nations (AFCON) for disciplinary reasons by hosts Egypt. The decision to remove Warda, who plays for Greek club PAOK, was announced on the day Egypt play DR Congo. The Egypt Football Federation said he was withdrawn “to maintain discipline, commitment and concentration”. “Social media conversations between Warda and many women were released

the penalty area and from the resultant freekick Ilaimaharita gave Madagascar what proved to be the game’s lone goal. Mohamed Amissi could have equalized for Burundi after two minutes but his shot missed the target from inside the area. Madagascar now needs a point from their final group game against leaders Nigeria to accompany them to the next round.

after Egypt’s game against Zimbabwe,” said BBC Arabic reporter Mohamed Qoutb. The 25-year-old was used as a substitute in Friday’s 1-0 win for Egypt, who are the favourites to win the tournament. A statement by the Egypt Football Federation on Twitter read: “The head of the Egyptian Football Federation, Hani Abu Reda, has decided to dismiss Amr Warda from the team’s camp after consulting with the team’s technical and administrative staff.”

Friday 28 June 2019

BUSINESS DAY

NEWS

Eunisell applauded for N4m payout OIS Silver Jubilee lecture targets development Afreximbank shareholders to get $69m dividend payout to NPFL stars Ibrahim, Udoh of 21st Century Africa leaders would help to accelerate adoption of HOPE MOSES-ASHIKE

he decision by one of the Nigeria’s chemical specialty fluids and production solutions firm, Eunisell, sponsor of the biggest individual award in Nigerian football, The Eunisell Boot, to reward two players instead of one in this year’s Nigeria Professional Football League (NPFL), has been hailed by football enthusiasts. Nasarawa United’s Sunusi Ibrahim and Akwa United’s Mfon Udoh, will each be presented with a trophy and a cheque of N2 million for the 10 goals they scored during the 2018/2019 NPFL season, at the event holding in Lagos this Friday. The Eunisell Boot Award values a goal at N200,000. Reacting to the gesture, Fred Okoligwe, media consultant and sports marketer, commended Eunisell for the gesture and continued support of the development of the Nigerian league. On his part, Olu Banjoko, a domestic league enthusiast, who has been a long-time Rangers Internation-

al supporter, said the decision by Eunisell to award both hotshots the award is a very welcome development. “Their (Eunisell) action will not only encourage the players to do more, but more importantly for me, it speaks volumes of the company’s desire to contribute to the development of the local football league. For this I give them kudos,” he said. Sam Nnaji, head of operations, DigitSport said: “It’s laudable. They’re setting the marker and other corporate brands need to get involved. Nigeria will be built by Nigerians. “The NPFL player will thrive on such encouragement. Aside the financial reward, just knowing that your efforts are appreciated and valued will only cause them to perform better.” Speaking on the development, Chika Ikenga, Eunisell’s group managing director, stated that the company’s decision to reward both players was taken based on the simple fact that the two players scored the same number of goals.

Dangote Industries shows commitment to empowering Africa in new CNN campaign OWEDE AGBAJILEKE, Abuja

newbrandedcontentcampaign on CNN TV, digital andsocialmediaplatforms, is showing globalaudiences some of the many ways Dangote IndustriesisimpactingpeopleinAfrican communities and industries. The ‘Touching Lives’ campaign, which starts airing on TV this month, has been conceived and developed by CNN International Commercial’s awardwinning branded content studio Create as part of the extended partnership between Dangote Industries and CNN. Announced last year, the partnership also includes sponsorship within CNN Marketplace Africa and Dangote being the first African brand to be part of Great Big Story. ‘Touching Lives’ is focused on telling Dangote Industries’ story through the way its many investments and innovations help empower African people, businesses and everyday life. This creative approach also echoes Aliko Dangote’s vision that the company’s investments in Africa are evidence of its commitment to the continent. The campaign includes a series of interactive content, articles and films hosted on a branded content hub produced by Create. The first execution is Farm to Table, which tells the story of the relationship between Lagos chef Michael Elégbédé and country farmer Olayemi Banjo and how they are connected by a passion – a relationship made possible by Dangote Group’s investment in ricefarmingtoreducetheamount of imported produce. An emotive film runs on CNN International as a television commercial and has been tailored for various CNN Digital platforms and social media environments, where it is distributed across CNN Digital and via Create’s social media presence using the latest data intelligence and seeding tools such as CNN AIM (Audi-

ence Insight Measurement) and LaunchpadtoreachDangote’skey audiences of young professionals and people aspiring to succeed in marketsacrossAfricaandbeyond. For the production of Farm to Table, a Create team filmed in Nigeria over several weeks and then undertook a dedicated postproduction process to develop a series of powerful and engaging materials that can connect with audiences on TV, digital and social. Next up for Touching Lives will see the campaign focus on another area of African life that Dangote Industries influences. “The ‘Touching Lives’ campaign is exciting and groundbreaking because it incorporates someofthemostimportanttrends that we are seeing in modern advertising and brand building,” said James Hunt, Vice President, Create, CNN International Commercial. “Those trends are: a focus on authentic storytelling around real peoplegoingabouttheireveryday lives; distributing different variations of content across platforms so that audiences can appreciate the storytelling whether it’s on TV, a mobile phone or anywhere else; and data-driven technology to ensure the content reaches the right audience segments. The result is an engaging and highly creative way of telling the true impact that Dangote Industries is having on the world and communities around it. We are incredibly proud of this campaign and having a partner suchasDangote Industries who is willing to push boundaries and take a new approach to telling their story.” Aliko Dangote, president, Dangote Group, said: “Our investment in agriculture is anchored on two basic thrusts. The first is to key into the Nigeria’s Agriculture Transformation Agenda (ATA), whichmakefood’sself-sufficiency a clear priority. The second is in our avowed mission statement, which is to touch the lives of the people by providing their basic needs. www.businessday.ng

KELECHI EWUZIE

roffering solutions to the leadership deficiency that Nigeria and other African countries are currently facing and the need to make the right investment in developing leaders will be the focus at the 25th anniversary lecture of Olashore International School (OIS), Osun State. The chairman board of governors, Abimbola Olashore, while briefing journalists in Lagos about the lecture, observes that Africa has for long focused on tackling years of poor leadership rather than developing entrepreneurs, innovators and leaders that will provide lasting solutions to the root cause of Africa’s problem. Speaking about the lecture scheduled for June 28 in Lagos, Olashore says the keynote lecture will be delivered by Fred Swaniker, a serial entrepreneur, business consultant and founder, African Leadership Academy, Johannesburg, South Africa. According to Olashore, “The lecture titled developing 21st Century Leaders

for Africa’ is quite apt because it reflects the position of Olashore International School who over the last 25 years have been producing leaders.” The choice of Swaniker is based on his giant stride in creating and educating leaders for Africa, he states, and reiterates the need for Nigeria to de-emphasis certification acquisition and dwell more on skills and competence. “There is over emphasis on university degree certificate in Nigeria. We have got it totally wrong because everybody is aspiring to get a university degree,” he says. He observes that there seem to be no linkage between the university system and industry adding that Universities are now producing so many graduates without asking the industries what it need. The chairman board of governors opines that the school in the last 25 years have created the social chain model of leadership, which provide the framework to provide leadership competencies that allow individuals to impact positively to their society.

HOPE MOSES-ASHIKE

he African Export-Import Bank (Afreximbank) will pay a total of $69 million to its shareholders as dividend from its 2018 earnings, according to decisions reached during the annual general meeting (AGM) of the bank, held in Moscow last week. The shareholders also appointed one new member to its board of directors and decided to retain Nigeria, which has been its chairman since the last meeting in Abuja in 2018, in that position for one more year. In another decision, the AGM approved the bank’s 2018 Annual Report that includes the 2018 Financial Statements. The bank’s total revenues rose by 24 percent in 2018 to reach $806 million while the net income increased to $276 million, representing a 26 percent increase on the level in 2017. The bank’s total assets, including contingent liabilities, went up by 15 per cent from $13 billion in 2017 to $15 billion in 2018. That profit performance reflected strong growth in interest and fee income from diversified sources by geography and financial products. In his report to the AGM, Benedict Oramah, President of Afreximbank, informed the shareholders that during its extra-ordinary session in Nouakchott in July 2018, the African Union Heads of State Summit had approved the accreditation of the Bank to the AU, allowing the AU to adopt most of the Bank’s flagship initiatives as continental initiatives. That action

such initiatives at the national level, thereby improving the pace of implementation at lower cost. Oramah explained that the accreditation was a privilege, which was previously enjoyed only by the African Development Bank and the United Nations Economic Commission for Africa. The end of the AGM marked the conclusion of the Bank’s 2019 Annual Meetings (AAM2019), which started on June 20, with the seminar and meeting of the Advisory Group on Trade Finance and Export Development in Africa, declared open by Russian Foreign Minister Sergey Lavrov. On June 21, Dimitri Medvedev, chairman of the Government of the Russian Federation, had addressed the opening session of the AGM. AAM2019 was held under the theme “Harnessing Emerging Partnerships in an Era of Rising Protectionism” and deliberated on such topics as: How South-South trade can be a path to Africa’s integration into the global economy; Multilateralism in the current global economic order of protectionism; and The role of investing in Africa’s infrastructure in accelerating intra-African trade and economic development. Highlights of AAM2019 include the launch of the African Trade Report 2019; the launch of the Afreximbank Export Trading Company Strategy; and a half-day programme of activities dedicated to Russia–Africa investment cooperation. A number of trade agreements were also signed at the event.

L-R: Mitchell Elegbe, GMD/CEO, Interswitch; Kolawole Ogunmekan, head, business solutions/card product support, FirstBank; Folasade Femi-Lawal, head, card/messaging business, FirstBank; Chinyere Don-Okhuofu, divisional chief executive officer, Interswitch Network, and Ibukun Awosika, chairman, FirstBank, following the conferment of awards on FirstBank, at the Interswitch Connect Sales Dinner & Awards Night held in Lagos recently.

OPEC set to rollover production cut

Olusola Bello

… as Nigeria becomes Europe’s highest exporter of crude seven consecutive months

minister, said at a conference in London Thursday that OPEC and its non-OPEC allies in the production cut pact were meeting on July 1-2 in Vienna, after postponing their initially scheduled meeting by one week. The comments for an almost certain OPEC rollover from Iraq— OPEC’s second-biggest producer— echo those of Khalid al-Falih, the energy minister of OPEC’s largest producer and de facto leader, Saudi Arabia, who said earlier this month that the cartel was close to reaching an agreement to extend the production cut deal beyond its current expiry date at the end of June. “The rollover at least would be at the same level because it has not been very effective, it has been effective to a certain level to minimise the glut in the market, but there are

espite the uncertainty regarding the price of crude oil, OPEC is set to roll over the oil production cuts at least at their current level and could even discuss deepening those cuts. This is coming on the heel of Nigeria becoming the highest crude oil exporter to Europe in seven months on the North Sea outages. Outages at North Sea oilfields have helped put competing Nigerian oil on pace to arrive in Europe at the highest levels in seven months in June, according to Refinitiv Eikon data and traders. Nigeria is set to export about 905,000 barrels per day (bpd) to the continent this month, the most since a roughly five-year high of about 1 million bpd in November. Thamer Ghadhban, Iraq’s oil

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now ideas or calls for agreeing (on) even more,” Reuters quoted Iraq’s oil minister as saying today. Earlier this month, OPEC sources told Reuters that Algeria had floated the idea of OPEC and its allies deepening the cuts from the current 1.2 million bpd to 1.8 million bpd amid fears of faltering demand due to trade disputes and slowing global economic growth. Yet, Algeria was just floating an idea, not making a proposal, and that idea wasn’t being formally discussed, OPEC delegates told Reuters in early June. A rollover for OPEC may be “in the bag”, as al-Falih has recently put it, but the big unknown in the larger OPEC+ group is the leader of the non-OPEC producers, Russia, whose Energy Minister Alexander Novak said earlier this week that it’s @Businessdayng

too early to say if OPEC and its allies would extend their pact to cut oil production, once again leaving the market guessing if Russia is willing to continue cutting its oil production. Nigerian grades are normally middle-distillate-rich and with Ekofisk having undergone maintenance, Nigeria is meeting European demand for this type of crude, said Ehsan Ul-Haq, lead analyst for oil research and forecasts at Refinitiv. Supply of the five North Sea crude grades that underpin the dated Brent benchmark is set to fall to around 720,000bpd in June, from 948,000bpd the month before. The contamination of a pipeline carrying Russian Urals crude in April interrupted flows to central and Eastern Europe for a month and left stocks in need of replenishment.

Friday 28 June 2019

BUSINESS DAY

news Health is wealth: ‘Minor ailments’ reduce... Continued from page 1

MPwider test costs about

N2,000 while drugs and consultation cost about N4,000. To treat typhoid, another ‘common ailment’,costs about N8,000. Treating both malaria and typhoid when the doctor identifies the twin ailments would cost about N15,000, excluding hospital admission which could drive health costs up to about N25,000. Joseph Alaka (not real name) ran a buoyant fishing business before the pangs of diabetes and kidney complications drove him into bankruptcy in 2012. Before this time, he would supply fish to market women, restaurants and hoteliers. A lot was well with him until his health challenge began to require N75,000 weekly for dialysis – a treatment that filters and purifies the blood using a machine. From his company complex to his properties that could be made liquid, he continued to sell to raise funds for

his treatment. To keep his six children in school, Alaka has had to carve an event centre out of the idle land around his home. Events are not regular and when they do come, he makes about N40,000 as rent. Alaka is currently in India with the hope of getting a long-term cure and the funding of his trip is from the rest of his real estate properties and donations from family and friends. “Healthcare in Nigeria is largely privately funded, and there are out-of-pocket costs associated with diagnosis, treatment, and survival,” said Larne Yusuf, a Lagos-based medical practitioner. “This has worsened the level of poverty because too many Nigerians have died due to lack of funds for medical treatment.” The almost non-existent and equally weak health insurance in Nigeria has seen out-of-pocket payments for healthcare become the norm, driving many people into poverty. Fifteen years after

the inception of the National Health Insurance Scheme (NHIS), it has only managed to enrol about 4 percent of Nigerians, roughly 8 million of the 201 million population. The scheme continues to be bogged down with policy somersaults, ineffective operational guidelines,corruption,inefficiencyandbureaucraticbottleneckin the registration process. Regrettably, the quality of care received under the scheme is also questionable with accusing fingers pointed at major stakeholders including the NHIS, Health Management Organisations (HMOs) and the hospitals. Umar Sanda, former president, Healthcare Providers Association of Nigeria (HCPAN), said the fear of paying out of pocket has hindered so many Nigerians from having access to quality healthcare. “Mandatory health insurance in Nigeria as we have been advocating will help people reduce the huge amount of spending (for healthcare), and enable them to access care in the hospitals

without the panic of payment,” Sanda said. The indirect cost of illness in Nigeria has been estimated at $879 billion, more than double the country’s GDP, and accounting for about 36 percent (more than one third) of the $2.42 trillion total productivity loss across the WHO African region. This was contained in an exhaustive report on ‘The indirect cost of illness in Africa’, produced by the World Health Organisation. The report also noted approximately 50.9 percent of loss in Lower-Middle-Income Countries (LMICs) was borne by Nigeria, which in 2018 had a paltry health budget of N340 billion ($946 million). Nigeria’s health expenditure as a percentage of the Gross Domestic Product (GDP) averaged 3.4 percent between 2007 and 2016, compared with South Africa (6.5 percent) and Kenya (4.5 percent), according to data sourced from the World Bank. It gets worse, according to the WHO, as Nigeria has one of the lowest doctor to popula-

tion ratio in Africa. A poll citing the Medical and Dental Council of Nigeria (MDCN) reported that there are about 72,000 nationallyregistered Nigerian doctors, with only 35,000 practising in-country. Factoring this figure with national population estimates, there is a deficit of over 260,000 doctors in Nigeria and a minimum of 10,605 new doctors need to be recruited annually to meet global targets. In the pharmaceutical aspect of healthcare, the cost of drugs also makes it difficult for many people to get treatment. Seventy percent of drugs used in Nigeria are imported, implying the already financially challenged Nigerians have to pay a premium for most medicines. “In Nigeria we import most of our raw materials, it is only water that we do not import,” said Moji Adeyeye, director general, National Agency for Food and Drug Administration and Control (NAFDAC), in an interview last year. She explained that

VAT on securities dealings near as 5-year ... Continued from page 1

Nigeria.

This is because that is the expiration date of the order which exempts VAT on commissions earned or payable on Stock Exchange transactions. As part of the Federal Government’s policy measures to encourage investments in the Nigerian capital market, the order which became effective on July 25, 2014 was to operate for five years. The order was made in 2014 by Ngozi Okonjo-Iweala, the then coordinating minister for the economy and minister of finance, in exercise of her powers under section 38 of the Value Added Tax (VAT) Act, Cap. V1, Laws of the Federation of Nigeria, 2004.

Federal Government had then exempted from VAT commissions earned on traded value of shares payable to Securities and Exchange Commission (SEC), payable to the Nigerian Stock Exchange (NSE), and payable to the Central Securities Clearing System (CSCS). Speaking to BusinessDay on the development, Gbite Oduneye, CEO, AOA Investment Group, said although the order is about to expire, “this is not a good time to jettison it”. He noted that discarding that order was equivalent to adding insult to injury in a market that is already down and struggling to recover. “Note that domestic investors are not buying stocks as they should and the foreign investors are not

Low, middle-income countries lag in... Continued from page 2

mittances,” Akinwunmi said. A total volume of 557,083,712 transactions valued at N34.02trn were recorded in electronic payment channels in the Nigerian banking sector in the first quarter of 2019, according to the National Bureau of Statistics (NBS).

The World Bank/IMF report revealed that there are high expectations of the potential of Fintech to expand financial inclusion for households (84 percent), Micro Small and Medium Enterprises (73 percent), and reduce the urban-rural gap. However, there is only a modest expectation on the

Apapa: What becomes of money... Continued from page 2

one expert who did not want his name mentioned. What that means is that oil-related activities, including truck (tankers) traffic, in the port city may drop, he said. But Ayodele Oni, energy partner at Bloomfield Law Practice, thinks differently. “The tank farms will be recharacterised probably. This is simply saying their use will be

modified but there will always be a need for storage facilities. This is even more so given that there is no viable rail network to move the refined products directly from the refinery to where they will be needed,” Oni said. But in the event that the tank farms become redundant, the implication is that the Apapa property market will be further challenged. This is a market where over 40 percent of the residential buildings are www.businessday.ng

in order to achieve Universal Health Coverage in Nigeria, the costs of medicines have to be considered. “We need to start manufacturing up to 80 percent locally because that is the way we can ensure easy access to medicines, and how they can become affordable,” said Adeyeye. Looking at China’s economic success in the last four decades, lifting millions of people out of poverty did not happen without an improved healthcare system. As of 2017, China’s per capita GDP was $8,826. Its life expectancy is 75, and its infant mortality rate is now nine per 1,000 live births. “All hands should be on deck in the pursuit of universal health coverage for Nigeria as this is the only veritable means of securing the health asset of our populace and ensure a healthy and highly productive workforce for nation building and achievement of individual prosperity,” Tunde Ladele, chairman, Health and Managed Care Association of Nigeria (HMCAN), said. L-R: Francis Olorunfemi, general manager, corporate services, Urban Shelter Nigeria Limited; Kehinde Ogundimu, CEO, NMRC, and Ugochukwu Chime, national president, Real Estate Developers Association of Nigeria, at the BusinessDay Real Estate Roundtable and Exhibition 2019 themed ‘Scaling Up Responsible Land Governance to Ease Affordable Housing Delivery’ in Abuja, yesterday. Pic by Tunde Adeniyi.

playing big here,” he said. The expiration of the order will come on the heels of investors showing less interest in stocks, as reflected in the -5.35 percent loss year-

to-date (Ytd), for the NSE. At the NSE, analysts say despite prices being attractive across the board, investors are not positioning in anticipation of an impend-

ing market rally and have not shown the willingness to take advantage of beaten down stocks. “This is the time the SEC, NSE, and CSCS should use

to make good points for themselves as part of their efforts to grow the market. They need to dialogue with the Federal Government on this,” Oduneye said.

potential of Fintech to address the gender gap. Over 60 percent of jurisdictions reported having incorporated Fintech in a National Financial Inclusion Strategy (NFIS), mostly in middle-income countries. The focus of NFIS centred around fostering adoption of Fintech (41 percent), encouraging digitisation of government processes (41 percent), and establishing a forum for public-private dialogue (33

percent). The report also revealed that while awareness of cybersecurity risks is high across the membership and most jurisdictions have frameworks in place to protect the resilience of the financial system, gaps in mapping cyber risks are common, particularly among emerging markets and developing economies (EMDE). Cyber risks in Fintech have been publicly identi-

fied and acknowledged as an emerging risk to the financial sector in a majority of jurisdictions, particularly among high-income economies (79 percent). Evidence from the survey suggests that only a third of jurisdictions have analysed IT interdependencies within the financial sector, or of concentration risks among big technology providers that could threaten infrastructure. While a high proportion

(83 percent) of high-income respondents reports some monitoring of cyber risks related to third-party service providers, only half of lowerincome jurisdictions have specified minimum requirements. On crypto-assets, the report said most jurisdictions agree that crypto-assets present risks to investors but are not yet a threat to financial stability.

empty. Rental income loss to landlords is estimated at N250 million per annum while vacancy rate in the entire port city is well above 50 percent. These will be made worse by the offloading of ‘empty’ land where the tank farms currently sit. It is estimated that there are 50 tank farms, each sitting on approximately 10,000 square metres of land. Chudi Ubosi, an estate surveyor and valuer, told BusinessDay on phone that before Apapa became what it is today,

it was in the league of Ikeja GRA where land sells for between N200,000 and N250,000 per square metre. Apapa no longer commands such price. “It is hard to get a buyer who will pay N100,000 per square metre of land in Apapa today,” Ubosi noted. But even at that, N100,000 per square metre for 10,000 square metres of land multiplied by 50 tank farms translates into a lot of money (about N50 billion) that will be tied down for some time.

Uche Chiejina, an estate manager in Apapa, affirms these challenges, adding that at the moment, the Apapa market is down such that estate agents operating in that axis are idle while property owners/landlords have no income in terms of rents. Ubosi says it might take a long while, up to 10 years, for Apapa to rebuild confidence in potential investors and patch up the degraded environment and decaying infrastructure post Dangote Refinery

Chiejina, on the other hand, sees opportunities for residential, retail and leisure investors. He noted that unless the state government and Dangote Group partner to build coastal roads that will lead trucks and other vehicular traffic out of the new refinery, infrastructure remains a huge challenge along the Lekki-Epe Expressway which is the only gateway in that axis.

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Friday 28 June 2019

BUSINESS DAY

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BUSINESS DAY

Friday 28 June 2019

NEWS Presidency to British Parliament: Buhari not persecuting Christians Tony Ailemen, Abuja

igerian government on Thursday repudiated claims by a group styling itself as Northern Christian Elders Forum, who alleged that the MuhammaduBuhariadministration ispracticingbigotryandalienating Christians. A statement by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, said response by the Nigeriangovernmentwascontainedin alettertotheBritishParliamentary Group, signed by Nigeria’s High Commissioner to UK, George Adetola Oguntade. Presidency quoted two letters addressed to Rt Revd Philip Mounstephen, a former secretary of the Church Missionary Society (CMS) and now head, “Independent Review of Foreign andCommonwealthOffice(FCO) Support of Persecuted Christians, “and Baroness Berridge, the chair of “All Parliamentary Group for

InternationalFreedomofReligion or Belief. “ According to the Presidency, theNigeriangovernmentstrongly dismissed as inconceivable and out rightly false, “allusions to the effect that the Boko Haram terrorism served a government agenda against Christians. “It would be useful for me to engagewiththisprocesstoensure that you are thoroughly briefed on thesituationinNigeria,”Oguntade wrote in the correspondences. Responding to the interim report on Foreign and Commonwealth Office Support for Persecuted Christians, Oguntade, a retired Justice of the Supreme Court, told Rev. Mounstephen, “ The safety and security of all Nigerians, whatever their faith, is a fundamental priority of the Buhari Government. The government knows that Nigeria can only achieve its potential if there is religious tolerance and cooperation.” Presidency said The High Commissioner ex-

plained that President Buhari’s deputy was a Pastor, adding that the President “has befriended Church leaders and church groups both within and outside Nigeria.” Shehu added that the President’s cabinet is balanced between Muslims and Christians, noting that he himself was a former Chancellor of the Church of Nigeria (Anglican Communion). According to Oguntade, Vice President Osinbajo has maintainedregularcontactswithChristian and Muslim leaders as part of efforts to build and sustain interfaith dialogue. “Stressing that the country’s security challenges had no ethnic and religious colourations, the High Commissioner said the farmers/herdersclashespredated the Buhari administration, noting that such clashes bordered on the desire for pasture by the herders and the desire to protect crops from encroachment and destruction by the farmers.

20.60 per cent, while the Oil Producing States received N40.436 billion as 13 percent derivation revenue. However, cost of collection/transfers/FIRS refund stood at N26.498 billion. A communiqué issued by the Technical Committee of the FAAC indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2019 was N106.826 billion when compared to the N96.485 billion distributed in the previous month of April, resulting in an increase of N10.341 billion. It further disclosed that the distributed Statutory Gross Revenue of N571.731 billion received for the month was

higher than the N518.916 billion received in the previous month by N52.815 billion. According to the communiqué, revenues from Oil Royalty and Companies Income Tax (CIT) recorded significant increases while Petroleum Profit Tax (PPT) decreased significantly. Meanwhile, Import Duty and VAT also recorded marginal increases. However, the total revenue distributable for the current month, including VAT and Exchange Gain of N1.142 billion, was N679.699 billion. Furthermore, the committee disclosed that as at June 27, 2019, the Excess Crude Account (ECA) had a balance of $63.005 million.

FG, states, LGs share N679.7bn Cynthia Egboboh, Abuja

he Federal Account Allocation Committee (FAAC) on Thursday shared to the Federal, States and Local Government Councils a total of N679.699 billion as federal allocation for the month of May 2019. The breakdown of the distribution to the three tiers of government (inclusive of Cost of Collection to NCS, DPR and FIRS) shows that the Federal Government received N284.163 billion, representing 52.68 percent, the States received N187.605 billion, representing 26.72 percent and Local Government Councils got N140.997 billion, representing

FG urged to create National Housing Council OWEDE AGBAJILEKE, Abuja

s Nigerians await President Muhamma d u Bu h a r i t o name his cabinet, the Federal Government has been urged to create National Housing Council, to enable stakeholders in the housing sector develop an effective database. National president, Real Estate Developers Association of Nigeria (REDAN), Ugochukwu Chime, stated this in Abuja Thursday at the third edition of BusinessDay Real Estate Roundtable and Exhibition. According to Chime, the inter-ministerial rivalry between the Federal Ministry Finance and its departments and agencies and its counterpart in Works/ Housing on who should superintend the real estate sector has resulted in confusion and untold hardship on Nigerians. Delivering a paper titled: ‘An over view of the real estate sector in Nigeria,’ Chime said: “There is an urgent need to create a www.businessday.ng

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National Housing Council distinct from the existing National Council on Housing, which is domiciled in the Federal Ministry of Housing, and is dedicated to enhance the coordination of activities in of professionals and organisation involved in the supply side of the real estate industry. “Such a Council w ill involve ALL critical stakeholders in the supply and demand sides and be empowered with task of articulating a Housing sector road map an d Po lic y as well as providing a sector synergy and conflict resolution platform. It will also help in aligning policies, strategies and efforts of all stakeholders.” He called for the realignment of institutions and adequate funding of the Federal Mortgage Bank of Nigeria (FGBN), and also called for domestication of the Model Mortgage and Foreclosure Law. This, he stressed, will enhance the real estate climate by protecting “the interest of parties, especially the investors who @Businessdayng

have been hesitant to invest in the sector because of the very high risk associated with collateralisation of facilities.” The REDAN president also called for multi-door court process to reduce the transaction cost of litigation, adding that the current time and cost were very prohibitive and a disincentive for investment in the demand side of the real estate industry. “To ensure compliance to industry best practice on the part of States and Developers, it is crucial that all the DFIs give a one-year notice of intent to stop further investment in States that refuse to enact the Laws and policies that will ensure that funds invested in their State do not get entangled because of the many obstacle to approvals, transaction cost and time as essayed above. “Als o, all D evelopers should be given the same time limit to professionalise their staff and ensure that the key-man risk of their organisation is drastically reduced, otherwise funds should not be approved for their projects,” he said.

Friday 28 June 2019

BUSINESS DAY

13TH ANNUAL BUSINESS LAW CONFERENCE NBA-SBL emphasises growth, investment, employment to improve Nigeria’s economy …urges government to go beyond rhetoric MICHAEL ANI

Panellists with some members of NBA-SBL.

Socialist instinct hindering Nigeria’s growth potentials –Moghalu …suggests ways to tackle unemployment, insecurity MICHAEL ANI & OLUWASEGUN OLAKOYENIKAN

igeria does not know whether it is a capitalist or a socialist state as its government lacks the perquisite knowledge on what it entails for a nation prosper. The government is enveloped with ideas that tilt towards a socialist economy that is hindering investment and exacerbating the already unemployment rate yet it claims is practicing a capitalist economic system, according to Kingsley Moghalu, a one-time deputy governor of Central Bank of Nigeria (CBN) and president of Institute for Governance and Economic Transformation. “By spending heavily on subsidizing the fuel prices of fuel and on recurrent expenditure, the government is spending money wrongly in areas that are suffocating the economy,” Moghalu said at a plenary session in the ongoing 13th annual business law conference of the Nigerian Bar Asso-

ciation Section on Business Law (NBA-SBL). “If Nigeria wants to be a prosperous nation, it must focus attention in building the skills of its citizens through driving private investment in education,” Moghalu argued. Africa’s most populous nation has been faced with the problem of falling investment, high unemployment and insecurity that have dragged almost 100 million of its citizens below poverty line and widened the inequality gap even more further. The problem started in 2014 with the collapse in global oil prices which the oil dependent nation relies on to get over 70 percent and 85 percent of its revenue and foreign export earnings. Since that time, growth of the economy has averaged 2 percent while unemployment rate more than tripled to 23.1 percent in Q3 2018, according to data from the National Bureau of Statistics. “Nigeria is in crisis and the government needs to recognise this,” Moghalu

said. “And this stems from the huge accumulated debt, the subsidy payment and the ballooning recurrent expenditure in the budget that is making the country poorer.” Moghalu explained that the country is being held down by the lack of knowledge of what is happening in its economy and the political will to structure the economy along the priorities to create jobs, even as its unemployment rate continues to rise to new highs every quarter. He pointed out that the country is creating more burden despite its dwindling revenue by “doing too much” with its petrol subsidy, heavy public sector evident in the recently passed federal budgets, and “spending money on the wrong things.” To address these challenges, the presidential candidate noted that the nation must create a structural environment that would enable the economy grow beyond its population growth rate, to create jobs and move its estimated 100

million extremely poor people above the poverty line. “To create jobs, we need emphasis on skills training,” Moghalu said, noting that massive investment in education and health sectors of the economy would help developing human capital and ultimately reduce the rising unemployment rate, which stood at 23.1 percent as at September 2018. Speaking further, he said the country needs investment into the country’s economy, thereby creating opportunities for those with the skill sets. While there has been some investment in the agriculture sector to help the nation achieve its economic diversification plans, Moghalu stressed the need for the government to ensure investment into sector does not terminate in farms, but more investment should be made on the entire agriculture value chain ranging from production, processing and exportation of farm produce. “We need to invest in companies that will spur, process and export agricultural produce,” he said.

Reps to review existing government policies hurting business growth MICHAEL ANI

he lower chamber of the 9th National Assembly will review all existing laws, contracts and policies hurting the growth of businesses and foreign investments in the country, Femi Gbajabiamila, Speaker of House of Representatives, said on Wednesday. These reforms would include revisiting the country’s corporate tax system by sim-

plifying the process of tax rate and allowances in a transparent manner for companies, industries and businesses. “Our major biggest challenge for our economy at this time is the challenge of growing an economy that is sufficiently robust to spur innovation, create jobs and ensure that the lives of its citizens are improved,” Gbajabiamila said at the opening ceremony of the 13th Annual Nigerian Bar Association Section on Busi-

ness Law conference. “The challenges are significant but are not big for us to handle. Our role as government is to roll out policies that will create an enabling environment that would drive investment and provide critical infrastructure,” the speaker said. According to him, the reforms will ensure all loopholes in government finances are blocked by going aggressively on tax avoiders to im-

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prove government revenue. He said the lower chamber will set out policies that would drive investment and create employment as both are interwoven. The speaker noted that by promoting a clear sanctity of contracts, the country would have the needed investment required to fund its infrastructural gap in health care, education, security that would improve the country’s ease of doing business index.

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or Nigeria to cater for its growing youthful population, it needs to roll out policies that would drive all roundinclusive growth, private investments and employment. This was the core message delivered by speakers at the opening dinner of the ongoing 13th Annual Business Law Conference of the Nigerian Bar Association on Wednesday. The message stems from Nigeria’s many years of underwhelming GDP growth, which has failed to make the much-needed impact to lift the country’s well over 90 million citizens living below $1.90 a day. “With a growing youth population, the importance of growth, investment and employment cannot be overemphasised. In the recent past, the country has suffered from underwhelming Gross Domestic Product (GDP) growth. Indeed, it has been argued that even whilst experiencing accelerated GDP growth, the structure of growth was not inclusive and therefore had little impact on vast proportions of the populace. We have also witnessed a sharp decline in foreign direct investment and the youth unemployment rate is now at an alarming 36.5 percent,” Adeoye Adefulu, chairman, 13th NBA-SBL Conference Planning Committee, said in his welcome speech at the opening ceremony of the conference themed ‘Growth, Investment and Employment: Beyond Rhetoric’. “After 20 years of democracy, we think it is a good time for the Nigerian government at all levels to take stock and plan for the future of the Nigerian economy,” he added. Seni Adio, chairman, NBA-SBL, said going beyond rhetoric, as the theme of the conference says, means that the Council of the SBL was looking forward to “actioning many of the incisive prescriptions that we are confident will evolve from the conference. Adio added that the @Businessdayng

SBL “has become a go-to resource for the executive and the legislative arms of government with respect to law reform concerning business and commercial law and, in particular, towards easing doing business in Nigeria and enhancing the competitiveness of the Nigerian economy”. Paul Usoro, president, NBA, said the theme of the 2019 conference was pertinent and timely coming in the wake of a new government. He said as a nation blessed with natural resources and human capacity, Nigeria has enormous opportunities for economic growth, investment and employment. However, the government must do its bit for things to take their proper shape. “There are various sectors of the economy which need to be tapped into and harnessed in order to diversify the economy for the achievement of sustainable growth, economic development and job creation,” Usoro said. “By urging the government to go ‘Beyond Rhetoric’, the conference seeks to focus on practical and pragmatic solutions to achieving inclusive economic growth and maintaining, attracting and retaining investments while increasing employment opportunities for the people of Nigeria,” he said. Nigeria is home to some 200 million people, based on UN estimates. Each of these needs the basic things of life such as food, shelter, jobs, security. “The government, we posit, must persist in creating an enabling business environment through effective institutions and implementation of policies that would improve the ease of doing business, drive investment opportunities and make Nigeria an investor-friendly nation. The private sector must partner with government and embrace the forwardlooking reforms of the government while proffering constructive suggestions on how to improve the economic wellbeing and circumstances of the people,” he said.

Friday 28 June 2019

BUSINESS DAY

13TH ANNUAL BUSINESS LAW CONFERENCE

L-R: Bode Rhodes-Vivour, Justice of the Supreme Court; Seni Adio, SAN, chairman, Nigerian Bar Association-Section on Business Law (NBA-SBL); Femi Gbajabiamila, speaker, House of Representatives, and Babajide Sanwo-Olu, governor, Lagos State at the conference opening ceremony.

Paul Usoro, president, Nigerian Bar Association (NBA), and Adeoye Adefulu, chairman, 2019 conference planning committee.

L-R: Babajide Sanwo-Olu, governor, Lagos State; George Etomi, principal partner, George Etomi and Partners; Femi Gbajabiamila, speaker, House of Representatives, and Seni Adio, SAN, chairman, NBA-SBL.

L-R: Gbenga Oyebode, managing partner, Aluko & Oyebode; George Etomi, and Olu Akpata, immediate past chairman, NBA-SBL.

L-R: Kazeem Alogba, chief judge of Lagos State, with Bode Rhodes-Vivour, Justice of Supreme

L-R: Udokanma Okonjo; Chinyere Okorocha, and Luke Ilogu.

L-R: Olu Akpata; Toyosi Fatoki; Bolaji Ayorinde, SAN, and Aderemi Oguntoye

Ayuli Jamide (l), with Adeoye Adefulu

Pictures by Olawale Amoo

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Friday 28 June 2019

BUSINESS DAY

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Friday 28 June 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper JIM PICKARD

s Boris Johnson promises to see through Brexit on October 31, “do or die”, hundreds of pro-EU MPs are calculating how, and when, they can prevent him from leaving the bloc without a deal. Their problem is that no deal is the default option if Britain neither obtains a Brexit delay or reaches agreement with the EU. “Parliament is against no deal,” said Rory Stewart, the international development secretary and a former rival to Mr Johnson in the race to become the next prime minister. “Parliament made it the legal default; parliament can unmake it the legal default.” There are two ways the House of Commons could stop a nodeal Brexit: either through a vote of no confidence in the prime minister or through more specific parliamentary manoeuvres. Such tactics can draw blood, but are very hard to orchestrate against the disciplined resistance of a government. In April, a move by the Labour backbencher Yvette Cooper to push the government to ask for a Brexit delay passed by just one vote. Since then, some MPs’ opposition to a no-deal Brexit appears to have weakened. “There are some Tory Remainers who have realised that, while they don’t want to leave without a deal, our party is on the brink of oblivion,” said one Conservative figure. “Meanwhile you’ve got some Labour MPs [from pro-Leave constituencies] who are watching

How and when can MPs stop Boris Johnson from a no-deal Brexit? There are opportunities, but also plenty of obstacles for pro-EU forces in coming months [Labour leader] Jeremy Corbyn shifting towards a Remain position and they just want out.” A Labour bid this month to set aside Commons time to prevent no deal failed when eight of the party’s MPs voted with the government. Caroline Flint, a former Labour cabinet minister, recently said she would prefer no deal to No Brexit. Dominic Grieve, a former Tory attorney-general, is now joining forces with Margaret Beckett, a former Labour foreign secretary, on legislation to hold back funding from Whitehall departments if there is a no-deal Brexit without parliament’s approval. But depriving key government activities of cash is contentious. The stratagem has yet to win Mr Corbyn’s backing, and many MPs are focusing more on what to do after the new prime minister takes office. Here the Financial Times looks at some of the likely confrontations between a new Tory prime minister and MPs over no deal. Late July The new Conservative leader, either Mr Johnson or his remaining opponent Jeremy Hunt, will be announced on July 23 and enter Downing Street the next day. Labour will then have the

Agency had previously suspended its rating on manager’s Allegro fund

orningstar has downgraded its rating on one of H2O Asset Management’s funds, flagging concerns around risk controls at the crisis-hit manager and its valuations of bonds linked to a controversial German entrepreneur. The agency, whose assessments are used as a key guide for investors, suspended its bronze rating on H2O’s Allegro Fund last week, citing concerns over “the liquidity of certain bonds”. The move followed an FT Alphaville article the previous day that set out the Natixis subsidiary’s holdings of bonds connected to Lars Windhorst, a flamboyant entrepreneur with a history of legal troubles. On Thursday, Morningstar downgraded this fund to “neutral”, the agency’s lowest rating before a “negative” label. “This team’s decision to invest a sleeve of Allegro’s portfolio in illiquid, high-risk corporate bonds, all linked to German entrepreneur Lars Windhorst, raises concerns about the robustness of the securityselection process applied here,” analyst Mara Dobrescu said in her report, adding that Morningstar had “pre-existing concerns on the effectiveness of this fund’s risk controls”. Ms Dobrescu also questioned

“the robustness of the valuation policy” applied to these illiquid bonds, noting that around half of them were classed as “Level 3 securities”, meaning their valuations cannot be derived from observable inputs. H2O told investors this week that it had at marked down these bonds at “a very significant discount” to their previous valuation. Bruno Crastes, chief executive of H2O, described the resumption of a rating from Morningstar as a “significant vote of confidence” in the new measures it had implemented. “We are confident that we will soon regain our prior rating,” he added. Fresh data released this week showed outflows from H2O’s funds accelerated on Monday, with the six funds at the heart of H2O Asset Management’s illiquid bond crisis having lost more than €5bn in assets. The fund said on Wednesday it had suffered €450m of fresh redemptions but that there had also been “substantial inflows” since Monday. Vincent Chailley, the asset manager’s chief investment officer, told its clients on Wednesday that, while no final decisions had been made, it may remove bonds linked to the German financier Lars Windhorst from its main funds and place them in a separate portfolio. www.businessday.ng

option of launching an instant vote of no confidence on July 25, the last day before parliament’s summer recess. Labour MPs have already been put on a three-line whip to attend the Commons that day. The calculations could be tight. Mrs May has bequeathed her successor a working majority of just five votes. That could be reduced to three by the byelection in Brecon & Radnorshire

at around the same time. Two Tory MPs have so far signalled that they would back a vote of no confidence in the new prime minister rather than allow a no-deal Brexit: the Europhile former cabinet ministers Ken Clarke and Mr Grieve. However, in July the new prime minister would almost certainly not be explicitly pursuing no deal as a priority. That would make any vote of no confidence less likely

to succeed. “I’d definitely vote against a Conservative government to stop a no-deal Brexit,” said Mr Stewart. “I wouldn’t vote to bring down a Conservative government, I don’t want Jeremy Corbyn to be prime minister.” Labour may hold back and launch the vote of no confidence later in the year, rather than uniting the Tory party behind the new prime minister.

Private equity races to spend record $2.5tn cash pile

Morningstar downgrades H2O fund on ‘loose risk controls’ ROBERT SMITH

Dealmaking at highest level since lead-up to global financial crisis

JAVIER ESPINOZA AND ERIC PLATT

rivate equity dealmaking has soared to its highest level since the lead-up to the global financial crisis, and there is no end in sight to the buyout boom as companies chase investment opportunities for a record amount of unspent cash that totals almost $2.5tn. Activity in the first half of 2019 has been swollen by a series of $10bn-plus megadeals, undeterred by volatile financial markets, a slowdown in global growth and rising trade tensions. Deal appetite at leveraged buyout shops such as KKR, Blackstone and Brookfield has been fuelled by the enormous pile of so-called dry powder, which they have raised from pension and sovereign wealth funds and not yet spent, and by stillcheap borrowing costs that make it easy to finance takeovers. Data provider Preqin estimates $2.44tn of dry powder is at the ready to buy companies, real estate, infrastructure, natural resources and debt. Tens of billions of dollars more

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are being raised for new funds, giving private equity groups even more dealmaking ammunition. The value of leveraged buyouts climbed to $256bn in the first six months of 2019, the second-largest first-half on record, according to data provider Refinitiv, eclipsing even the pace in the boom year of 2006 when private equity groups targeted household names such as casino group Harrah’s and US radio operator Clear Channel. Private equity dealmaking has accounted for 13 per cent of global acquisition activity so far this year, the highest level since 2013. “Deal volume in private equity has been very good. A number of transactions have kept the machine going,” said Simona Maellare, the global head of financial sponsors at UBS, the team that advises and finances private equity deals. “I expect the second half of the year will follow the same pace of the first half. Deals can be financed, competition for assets is vivid, everyone has a lot of money.” The build-up of capital has prompted leveraged buyout shops to get more aggressive in their takeovers. Leverage levels are rising @Businessdayng

on deals, in part thanks to a more relaxed attitude from US regulators, and the takeovers themselves have become larger. Four private equity deals have eclipsed $10bn in size this year already, matching the number of megadeals clinched in 2018 as a whole. Those giant transactions include Blackstone’s record $18.7bn takeover of the US warehouses portfolio of Singapore-based GLP, the biggest private real estate deal in history, as well as EQT’s $10.1bn purchase of Nestle’s skincare unit and the $14.3bn sale of fibre optic cable owner Zayo Group to Digital Colony Partners and EQT. The buyouts come as private equity groups across the globe amass ever-greater firepower in new multibillion-dollar funds. London-based Cinven recently raised €10bn for its latest flagship fund and Boston-based Advent International collected $17.5bn from investors. Luxembourg-based CVC is seeking to raise more than €18bn for what would be Europe’s largest ever private equity fund at launch next year. Its rival EQT is looking to raise about €14bn by 2020.

Friday 28 June 2019

BUSINESS DAY

NATIONAL NEWS

Trump’s America leads charge in global dealmaking The US-China trade war has led to a sharp drop in cross-border deals so far in 2019 ERIC PLATT, ARASH MASSOUDI AND DON WEINLAND

onald Trump likes to claim that the US is always winning. But when it comes to the business of dealmaking, there is no dispute. The record-breaking boom in global mergers and acquisitions has extended into the first half of 2019, yet unlike the past five years, bankers in Europe and Asia have been left as envious observers while the US takes a dominant role. Ambitious deals by large companies ranging from drugmaker AbbVie to defence contractor United Technologies, to oil group Occidental Petroleum, have driven US activity. Buoyant stock markets and cheap financing in the debt markets have helped oil the wheels of a record first half in which $1.1tn worth of US corporate takeovers have been struck. The volume of deals, up almost a fifth from a year ago, accounts for more than half of the activity this year, according to data provider Refinitiv. America’s share of the global takeover pie has not been this big since before the dotcom boom and bust. The striking concentration of M&A within US borders — at the expense of cross-border deals — was in part a consequence of the Trump administration’s more protectionist approach, including its trade war against China, multiple top M&A advisers told the Financial Times. “We are heading into a more mercantile world, with protectionism [and] the trade dispute with China,” said Mark Shafir, the co-head of global M&A at Citigroup. “It is logical the transactions you see are more local in nature. It is not the most hospitable environment for cross-border deals.”

Although the level of global dealmaking in the first half was still the third-highest on record, the $2tn total was down 13 per cent from last year and included a sharp slowdown outside the US. European transactions tumbled 57 per cent to $287bn, marking the weakest first half in six years. Activity in Japan dropped 23 per cent to $38bn, with the value of deals in the rest of Asia Pacific coming in at $342bn, down 28 per cent from the first half of 2018. Africa and the Middle East was the only region outside the Americas to see a pick-up in activity. A single $69bn deal engineered by Saudi Arabia to bolster the prospects of its state oil company Saudi Aramco was chiefly responsible, underlining the outsized impact large deals can have. Across the world, companies are increasingly steering away from deals that are likely to face scrutiny from newly emboldened national security panels that last year blocked several high profile transactions. Less than a quarter of the $2tn worth of deals struck this year have been cross border, the lowest level in more than two decades. By contrast, the 10 largest transactions have all been between companies located within the same country. The US has accounted for eight of them. The trend has been a boon for American investment banks, with JPMorgan, Goldman Sachs, Citigroup and Bank of America all gaining market share over Asian and European rivals, the Refinitiv data showed. Deutsche Bank, Barclays and UBS all saw their share of M&A fall in the first half of the year, with Deutsche failing to make the top 10 merger advisers as boutiques like Evercore and PJT Partners muscled in.

Ford to cut 12,000 jobs and close plants in Europe Automaker’s turnround includes launching new models and electric technology PETER CAMPBELL

ord will shed 12,000 jobs in Europe, launch new models and add electric technology to its vehicles in an attempt to bring the lossmaking region back to profit. The company announced earlier this year it would overhaul the division, and on Thursday clarified the scale of job losses and disruption to its plants. By the end of 2020 it will have 18 production facilities, compared to 24 at the start of this year, after selling its Slovakian engine site and closing five further facilities including the engine plant at Bridgend in Wales, a transmission plant in France, and three Russian sites. In addition, Ford is reducing shifts at its assembly plants in Saarlouis, Germany, and Valencia, Spain, as well as cutting management roles across the region. Its workforce will reduce by 12,000, including 2,000 salaried roles, as part of a wider move by the company to shed 7,000 salaried employees globally. Fo r d i s a l s o u n d e r t a k i n g turnrounds in China and Latin America, as it attempts to “redesign” its business under chief executive Jim Hackett. The US carmaker said it is “on track to significantly improve its financial results in Europe this year”. It has posted losses in the region

for the past two years due to sliding diesel sales, softening demand and foreign exchange rates, principally the fall in the pound. The company’s aim is to report a 6 per cent profit margin in the region. “Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Stuart Rowley, president of Ford of Europe. Ford’s European arm will split into three areas — commercial vehicles, cars built in Europe, and vehicles imported into the region. The group will launch three new nameplates in the utility vehicle segments. Each new model will include an electric or hybrid option, as the carmaker looks to cut its CO2 emissions in the region to meet strict new rules. “Our future is rooted in electrification,” added Rowley. “We are electrifying across our portfolio, providing all of our customers with more accessible vehicle options that are fun to drive, have improved fuel economy and are better for our environment.” It currently imports Mustang sports cars, and will add the large Explorer SUV and an electric car to that list, with the aim of tripling imports to Europe annually by 2024. www.businessday.ng

Ten of the Democratic presidential primary contenders who took part in Wednesday’s first debate in the 2020 US election cycle © Getty

Democratic contenders spar over healthcare and migration

Warren able to set much of agenda during first debate between presidential candidates COURTNEY WEAVER

emocratic presidential primary contenders sparred over how to expand US healthcare benefits to more Americans and roll back Donald Trump’s immigration policies in the first of two back-to-back party primary debates — the first big showdown in the 2020 campaign season. Wednesday’s debate was billed as a prime opportunity for Elizabeth Warren, the former Harvard law professor and Senate progressive, who was the only candidate on stage to poll among the top-five. For the first half of the night, Ms Warren managed to keep a tight grip on the conversation, with many of the other candidates forced to spend their time on stage answering whether or not they agreed with her specific policy proposals, including an ultratax on millionaires whose families have a net worth of more than $50m and a plan to break up the country’s biggest technology companies. On stage, the Massachusetts senator was one of just two candidates who said she would get rid of Americans’ private health insurance, an issue that has fiercely divided the Democratic

Party, the other being New York City mayor Bill de Blasio. “There are a lot of politicians who say, oh, it’s just not possible, we just can’t do it, have a lot of political reasons for this,” Ms Warren stated. “What they’re really telling you is they just won’t fight for it. Well, healthcare is a basic human right, and I will fight for basic human rights.” While the majority of the Democratic contenders have argued that they are in favour of federally funded universal healthcare, only a handful have floated the possibility that such a plan would require Americans to get rid of their private health insurance coverage — an issue that could potentially alienate moderate and independent voters in the general election. “I am just simply concerned about kicking half of America off of their health insurance in four years,” warned Amy Klobuchar, the more moderate Minnesota senator. Mr Trump’s re-election campaign immediately seized on Ms Warren’s declaration that she planned to abolish private insurance companies, if elected. “The far-left, socialist policies Democrats embraced tonight were akin to a mutual political suicide pact,” said

Kayleigh McEnany, Mr Trump’s campaign press secretary. “They want to throw 200 million people off their current private healthcare plans, put them into a government-run system that would eliminate choice, and crush innocent Americans with an enormous tax burden to pay for it.” While many political analysts gave Ms Warren an edge in the debate, Julian Castro, the former secretary for housing and urban development under Barack Obama, who has struggled to make headway in the polls, also earned praise, with NBC News reporting that the candidate’s name had seen a 2,400 per cent uptick in Google searches over the course of the night. “On January 20, 2021, we’ll say ‘adiós’ to Donald Trump,” vowed Mr Castro, the only Latino candidate in the primary, who condemned the president’s policies at the US southern border — and the deaths of Óscar Alberto Martínez Ramírez and his 23-month-old daughter, Valeria, whose bodies were found this week after drowning in the Rio Grande. “Watching that image of Óscar and his daughter, Valeria, is heartbreaking. It should also piss us all off,” Mr Castro said.

Bayer shares jump as it reviews legal strategy on weedkiller Elliott welcomes shift as German chemicals group faces more than 13,000 glyphosate-related cases TOBIAS BUCK

hares in Bayer jumped more than 8 per cent on Thursday, after the German chemicals and pharmaceuticals group suggested it might be open to a settlement aimed at ending its costly legal battle over glyphosate-based pesticides in the US. The shift was welcomed by activist investor Elliott Advisors, which on Wednesday confirmed that it had built a stake in Bayer worth €1.1bn as the company grapples with the lawsuits. Bayer has been under fierce pressure since August last year, when a California jury ruled that a glyphosate-based pesticide owned by the company was responsible for causing the plaintiff’s terminal cancer. The jury went on to award damages of $289m, a sum that was subsequently reduced but which triggered an avalanche of similar

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cases. The company faces more than 13,000 glyphosate-related cases. US juries ruled against the group in two further trials this year, the latest of which involved damages of more than $1bn each for two plaintiffs. Bayer insists that glyphosate is safe, and until this week ruled out any suggestion that it might be ready to reach a settlement. That stance appeared to shift on Wednesday, however, when Bayer announced it was setting up a special supervisory board committee to examine its legal strategy and appointed a high-profile lawyer to advise on trial tactics and mediation. The statement was understood by analysts and investors to be a clear sign that Bayer is no longer strictly opposed to an early settlement. “The market hates uncertainty. @Businessdayng

Investors are thus enthused by the prospect of a quicker than expected settlement to glyphosate cases as this provides certainty around their financial cost,” said Sebastian Bray, analyst at Berenberg. The shares rose as high as €60.70 in Frankfurt, up more than 8 per cent. The stock remains down more than 30 per cent year on year, however, a decline that has sparked fury among shareholders and triggered speculation that Bayer could face pressure from activist investors such as Elliott to take steps including appointing new management or breaking itself in two. Bayer’s market capitalisation remains below the $63bn it paid to acquire Monsanto last year, the takeover that landed Bayer with the glyphosate-based pesticide that is at the centre of the legal battle.

Friday 28 June 2019

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

The incredible shrinking stock market Axel Springer’s take-private is symbolic of a radical shift in capital markets

RICHARD HENDERSON

xel Springer, a German journalist, turned one Hamburg newspaper into a publishing behemoth that now spans hundreds of titles and billions of euros in annual revenue. The company that bears his name was typical of a growing business that turned to the stock market to fuel its growth, giving a diverse group of investors a claim on an expanding stream of profits. Now, 34 years since the stock first listed, public investors will no longer have that claim. Axel Springer shares are set to drop off the public market after the company struck a takeover deal this month with KKR, the private equity group. The retreat into private hands is symbolic of a radical shift in capital markets that has changed the nature of European and US stock exchanges as conduits of capital between growing companies and everyday investors. In the US alone, the number of listed companies stands at just over 4,000, half the amount in 1996, the zenith for the US market. Europe has also contracted, to a lesser degree. The post-crisis rise of private equity is just one driver behind the change. Other factors include the slower pace of new companies launching on public markets, while mergers that combine multiple stocks have also cut the tally of listed companies. Low interest rates, meanwhile, have increased the appeal of debt financing for companies that may have previously decided to raise money by selling equity. “Stock markets are not competitive places to raise capital or sell companies right now,” said Robert Buckland, an analyst at Citi. “Public equity markets are shrinking because companies can find cheaper capital elsewhere.” As investors have sought higher returns, they have reduced allocations from stocks and bonds and instead put the money to work into alternative classes of assets, such as private equity. KKR and peers such as Blackstone and the Carlyle Group have drawn in tens of billions of dollars in the past decade, including more than $2tn in money sitting on the sidelines they have yet to put to work, known as “dry powder”. “Venture capital and private equity have been around for a long time but they really hit their stride in the last decade,” said Nick Colas, co-founder of DataTrek Research. “With private equity you can use leverage, you’re not beholden to the scrutiny of a public company and you have

more control to make cuts more easily.” At the same time as this wave of money has flowed into private equity, companies have used their own cash to buy back stock, removing shares from public markets. Last year, US companies spent $806bn on share buybacks, a record. In the first quarter, Apple alone spent $23.8bn on share buybacks. The iPhone maker has ramped up its programme in recent years after Carl Icahn, the activist investor, urged the company to use its burgeoning cash piles to buy back its own stock. The concentration of the stock market is creating “superstar” firms like Facebook, Google and Amazon that increasingly dominate their industries, according to Goldman Sachs analysts. “Across industries …firms have captured increasing market share, translating their competitive advantage into higher margins and outperformance during the past three years,” said Ryan Hammond, a Goldman analyst. The torrent of initial public offerings in the US this year is no counterpoint. Instead, these listings reflect an increasingly prominent function of public markets — acting as an exit valve for private investors and start-up founders. Highly anticipated IPOs such as ride-hailing rivals Uber and Lyft had already reached skyhigh valuations through multiple private rounds of fundraising, and have performed indifferently since listing. “There starts to become a point where those valuations become out of sync with public markets,” said Macie House, a managing director at Baird in Portland, Oregon. “Investors are being a little more selective and companies are being more cautious in determining their pricing range.” June’s public debut of Slack may provide a template. The messaging platform completed a “direct listing” where its shares are listed on an exchange but the business does not raise any money in doing so. The company had already attracted $1.2bn through private investors, including a $427m fundraising round in August. “The IPO of today has less upside opportunity than it did 15 years ago,” said Wayne Wicker, Washington, DC-based chief investment officer of ICMA-RC, a US pension fund. “The private equity groups are keeping these companies private for longer so you don’t have a thousand embryonic companies rising up. They emerge as large companies when they list.” www.businessday.ng

Fund industry floats new structure for illiquid assets Proposal follows liquidity crunch at Neil Woodford’s flagship equity fund KATE BEIOLEY

he UK’s fund trade body has proposed a new kind of fund structure for investing in illiquid assets after problems at some open-ended funds with money in property and unquoted stocks. The Investment Association on Wednesday outlined plans for a long-term asset fund, which would “offer a new way to gain sustainable returns from investments in areas such as private companies and infrastructure.” Its recommendations follow the meltdown of Neil Woodford’s Woodford Equity Income fund in June, which had investments in illiquid stocks, and came as Mark Carney, Bank of England governor, warned that open-ended funds that invest in illiquid assets were “built on a lie” due to their liquidity mismatch.

In its latest policy paper, the IA said a long-term asset fund would be able to invest in less liquid or illiquid assets “such as property and infrastructure projects” and said such a fund would “incorporate high standards of consumer protection.” Unlike most funds, however, the new structure could block investors from drawing their money out daily. The IA said investors benefited from access to private markets, particularly in light of a falling number of listed companies in the UK, but said questions should be asked “about the role of daily liquidity and the extent to which it may be necessary and/or appropriate, depending on different asset classes and customer preferences. “Our view is that there is a clear and important role for daily priced, daily traded funds, providing customers with access to a wide range

of investment strategies and asset classes. At the same time, some asset classes do not lend themselves to daily liquidity,” the report said. UK property funds were plunged into crisis in the wake of the Brexit vote, when funds holding £15bn of investors’ money were forced to halt trading after sliding property values and a wave of redemption requests. The IA will publish a blueprint on the fund next year. Critics said customers would need educating about what to expect from the new kind of fund and some would struggle to adjust to a lack of access. Ryan Hughes, head of active portfolios at AJ Bell, said: “If there is one thing the industry can learn from the suspension of the Woodford Equity Income fund it is that there is a mismatch between the daily liquidity funds currently offer customers and the actual liquidity in the underlying assets.”

Mifid II tightens Wall Street’s grip on European trading Liquidnet, Virtu and others pick up share after reform package 18 months ago PHILIP STAFFORD

ew EU market regulations have tightened the grip of Wall Street firms on trading across Europe, as fund managers have turned to specialist trading outfits to execute their deals — at the expense of big European banks such as Deutsche Bank and BNP Paribas. Research compiled by two financial data companies, Israel’s Cappitech and UK-based BestExHub, indicate a greater enthusiasm among investors to shop around to get the best price for their deals. Companies that focus primarily on trading, such as Liquidnet and Virtu Financial, have become more popular after the overhaul of Europe’s trading regime 18 months ago — known as Mifid II — split the cost of trading from research. Under the new regime, fund managers now have to annually disclose the top five brokers they use for trading equities, bonds, derivatives and other classes of assets. The lists have become closely watched because they provide banks with a rough guide to how well competitors are dealing with the new environment.

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JPMorgan and Goldman Sachs were the two most frequently mentioned brokers in asset managers’ reports across all asset classes, said BestExHub, which analysed responses from more than 360 fund managers. UBS was the only European bank among the top five, with the other places filled by Morgan Stanley and Citigroup. So-called agency brokers such as ITG (owned by Virtu) and Instinet, which find the best place to trade shares, also grew in popularity, alongside the likes of Liquidnet. All three companies are based in New York. “It’s notable that Virtu appears more times than some big names, such as Deutsche Bank and BNP Paribas,” said Dan Mathews, co-founder of BestExHub and a former executive at Citigroup. The rise of alternative brokers was most evident in equities, where UBS was the most frequently mentioned broker. According to Cappitech, which analysed reports from the top 100 European fund managers by assets under management, US banks featured in 34 per cent of reports in 2018, down from 39 per cent in 2017. Their EU counterparts were @Businessdayng

mentioned in 23 per cent of reports last year compared with 26 in 2017. In both cases, the numbers reflect the rise of trading specialists. “It’s an inexact science, but nevertheless it points to a high-level trend that institutional investors have a lot more freedom in choosing their broker now,” said Tim Cave, an analyst at Tabb Group. “Some agency brokers used to complain they couldn’t get on to investors’ lists [of favoured brokers] because of the research. The composition of investors’ top brokers is changing.” In bonds, Citigroup, Barclays and HSBC were the most frequently mentioned banks, but the banks’ control of a market they once dominated is being weakened by increased use of trading venues such as Bloomberg, Tradeweb and MarketAxess. The latter trio also handles reporting of trades to regulators — a requirement that has become a significant burden for banks and fund managers. Mr Matthews noted that exchange-traded products is the one market where the US banks do not take a lead. Dutch market-maker Flow Traders was the most commonly mentioned broker in that category, followed by Virtu.

Friday 28 June 2019

BUSINESS DAY

ANALYSIS

Women’s World Cup: Female footballers grab the world’s attention France, the US and Netherlands attract crowds as large as their men’s national teams SIMON KUPER

en years ago, France’s women’s football team sought attention by posing for a nude calendar with the slogan: “Does it take this for you to come and watch us play?” But last Sunday, when Les Bleues beat Brazil to reach the quarter-finals of the World Cup, the country’s television audience exploded. With 10.6m viewers, it was a national record for a women’s football match and exceeded the average for the French men’s team’s first-round games in last year’s World Cup. It was also France’s biggest TV audience for any programme in 2019. Friday’s quarter-final against the reigning champions, the US, could set more records.

France-Brazil peaked at 35.2m in Brazil, the biggest-ever domestic audience anywhere for a women’s game. Most broadcasters are taking the sport seriously, with many female pundits providing informed analyses. Sexism, which historically permeated coverage of women’s football, has reared up only intermittently. After the French TV performer Michel Izard mocked the players — “With such delicate gestures, one can understand why some dream of being in the place of the ball” — a backlash forced him to recant. French newspapers have reversed tradition by running features on the Bleues’ boyfriends. The tournament has been influenced by the global #MeToo movement, says Brenda Elsey, historian at Hofstra University

France’s Wendie Renard, Viviane Asseyi and team mates celebrate after beating Brazil to reach the quarter-finals of the World Cup © Reuters

This World Cup represents a new peak in global interest for female football, says sports historian David Goldblatt. The women’s game aims to leverage that interest to attract new players, broadcasters and sponsors. The tournament has demonstrated that there is now a small elite of women’s football nations, chiefly the US and western Europe (which has supplied seven of the eight quarter-finalists). Other regions, where women’s football has been neglected or discouraged, cannot compete: Thailand lost 13-0 to the US, while the Arab world and eastern Europe had no teams at all among the 24 participants. France, the US and the Netherlands attract crowds of similar size to their men’s national teams, but different in character: there are more families, more women and girls, and a friendlier atmosphere — bon enfant, as the French say — with almost no whistling of opposing teams. Although matches between smaller teams have not filled stadiums, let alone fanzones in host cities, the tournament’s organisers are pleased to have sold more than 1m match tickets. Above all, though, this has been a TV event. Several countries have broken viewing records for women’s football. EnglandScotland drew a peak audience of 6.1m Britons, while Brazil-Italy was watched by 7.3m in Italy, and

and co-author of Futbolera: A History of Women and Sports in Latin America. The US team is fighting for equal pay with men, while teams such as Argentina have had to fight for almost any pay at all. National federations are under pressure to raise funding for women’s football. Spain’s federation said last week it was allocating more than €20m for next season. All Spanish women’s top division games will be broadcast live. The football industry sees a chance to grow its hitherto small female market. The opportunity is clearest in western Europe, where the mature men’s game produces enough revenues to invest in women’s football. Spanish giants Real Madrid this week decided to follow their rivals Barcelona by launching a women’s team. Manchester City’s women’s team have gained visibility by sharing a social-media feed with the men’s side. Now French amateur clubs are expecting a flood of girls to join. When the World Cup kicked off, the French federation had about 180,000 female members. That was more than double the 2011 figure, but still below 10 per cent of total membership. By now female membership is already thought to have surpassed 200,000, originally the target for 2020. Uefa, European football’s governing body, plans to double the number of female players in Europe to 2.5m by 2024. www.businessday.ng

Why buyers are turning away from luxury property From Vancouver to Sydney, high-end apartments are lying empty despite prices being slashed JUDITH EVANS

iewed from Bangalore, the purchase of a newly built threebedroom apartment in London for more than £1.4m seemed like a safe investment bet. The top-floor three-bedroom home under construction in Keybridge House south of the Thames boasted views of the City of London and the Shard skyscraper. As Shonu Bhandari considered the purchase two years ago, agents told him he could expect the value to rise 15 per cent before the property had even been finished. The Indian entrepreneur, who runs a medical products company, happily signed up to buy. But his purchase soured quickly. When Bhandari approached a mortgage lender, it valued the property not at 15 per cent more than he had agreed to pay — but at 20 per cent less. With completion of the building looming, he signed over the property to a new buyer in March this year for £1.2m, losing more than £200,000 of his deposit. “It was not as good as it looked on paper,”hesays.“IwouldbuyagaininLondon but would I buy off-plan? Not any more.” Bhandari’s experience has been repeated around the world. The property he was set to buy forms part of a global wave of development of luxury urban apartments, fuelled by developers’ expectation they could sell thousands of homes as investments to the international wealthy. At the height of the boom in 2014 and 2015, buyers from Shanghai to Kuala Lumpur and Mumbai bought unbuilt homes overseas from brochures, in buildings that promised 24hour concierges, gyms, pools — and almost immediate financial returns. One new-build brochure from the estate agent Savills in 2016 said price growth in prime central London was expected to average 21.5 per cent by the end of 2020. Prices have so far fallen 10.4 per cent since that date, according to LonRes, a data provider. The homes were built in part to cater for a boom in Asian wealth, often coupled with a desire to store that wealth in a stable location abroad. “Global capital entering local real estate markets is not particularly new, but what was new was the intensity with which it entered places like Vancouver, New York, London, Melbourne and Sydney,” says Andy Yan, a planner and academic in Vancouver. Developers targeted both mortgaged investors such as Bhandari and those wealthy enough to pay in cash. The influx of investor money helped to decouple already stretched urban house prices from local incomes. But despite the expansion of global wealth, the surge in demand for luxury apartments did not last. Developers’ over-exuberance and government crackdowns combined to end the selling frenzy and leave developers,

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lenders and property investors battling to absorb the fallout. “I can’t remember the last time I sold a new-build property at a profit,” says Charles Jordan, an agent at MyLondonHome who resold Bhandari’s apartment. Jordan recently helped resell another home in a waterfront tower that was bought for £2.8m and sold for £2.05m ahead of completion — so an overseas buyer who had hoped to “flip” for a profit instead lost £750,000. Arriving at Vancouver’s international airport, visitors must walk past advertisements for gleaming newbuild condominiums, with text in both English and Chinese. The sales push is testament to a boom that has transformed Vancouver, thanks to an influx of overseas capital into property. About C$75bn ($57bn) of property is owned by overseas residents; in parts of the city one in four new-build apartments is owned by a non-resident, according to Yan, who directs the city programme at Simon Fraser University. House prices in greater Vancouver rose about 80 per cent in the five years to May 2018. A report this year commissioned by the regional government, which took power in 2017 pledging to combat the housing affordability crisis, described how “a fever developed, akin to a gold rush, in which foreign buyers rushed to buy homes, willing to pay over market price for property in order to be in on the rush and avoid what many thought was inevitable — government intervention. Local speculators and prospective buyers, worried about being priced out of the market, further fuelled demand.” Governments did indeed intervene: the Chinese government introduced curbs on capital flows overseas, and the regional administration in British Columbia chose to attack through tax. In 2016, it introduced an additional tax on overseas buyers amounting to 15 per cent of the value of the property, which was increased to 20 per cent last year. This helped send the market into reverse. New-build homes are exempt from this charge but have been targeted with other measures including a registry of home “flippers” aiming to combat tax evasion. House sales in Vancouver this year have dropped to their lowest levels in decades. Under intense political pressure over housing, governments around the world have acted similarly. The UK government overhauled stamp duty in 2014, sharply increasing the tax for homes costing more than £1.125m; two years later it added a surcharge for second home and investor-buyers. Australia’s New South Wales doubled its stamp duty surcharge for overseas buyers to 8 per cent in 2017. New Zealand last year banned most property purchases by non-resident overseas buyers. The US also took measures: Donald Trump’s tax plan this year capped @Businessdayng

deductions of state and local taxes — including property tax — that households could make from their federal tax bill at $10,000. Mortgage interest tax deductions also faced a new limit. This added to the costs of owning expensive properties in high-tax states such as New York. Measures to combat money laundering also sent a chill through some wealthy would-be buyers. Canada and the UK are bringing in registers of those with “significant control” of companies, including those used to own property. Measures such as this have worried “people who are concerned about reputational risk — who are afraid that noise might surround their family, their assets”, says one senior London banker. Such moves sent property markets reeling. Steven Herd, founder of MyLondonHome, says some clients he helped to resell homes were far from super-rich and ended up losing their family savings. “Sometimes the deposit money came from a whole family clubbing together to invest, because it’s what everyone was doing.” Many buildings planned when the gold rush was at its height are only now being completed. Some, such as New York’s 472m-high Central Park Tower currently under construction, have launched sales programme in the past year. Yet on Billionaire’s Row, the new crop of residential skyscrapers close to Central Park that will include the new tower, about 40 per cent of apartments are unsold, according to Jonathan Miller, a property consultant and analyst. Inner London has about 1,500 completed new homes that have not been sold, according to Molior, a research firm. Lenders are issuing inventory loans to developers who have been unable to repay construction loans by selling the homes they have built. But they have little more chance of paying back these new loans, says Andrew Gerringer, a New York residential property consultant. This may leave funders, who include banks, private equity groups, property debt funds and hedge funds, forced to take over properties and deal with the sales slump themselves. “Many of the very large condos that may not sell will also not rent at numbers that will cover the mortgages, common charges and real estate taxes,” he says. “What we don’t understand . . . is how these developers go ahead and build without understanding the depth of the residential buyers for their properties.” The effect of the high-end building boom has marked these cities permanently. The southern end of Central Park, the banks of the Thames and Sydney’s waterfront are lined with new towers. Vancouver has also seen a burst of condominium construction, while thousands of individual family homes have been torn down and replaced with large “McMansions”.

Dick & Wanda Kramer Tribute

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Wanda and Dick Kramer arriving one of the event in their honour in Lagos

Modern-day pioneer and management missionary By Tayo Fagbule

ick Kramer grew up in Kansas where he watched his parents and grandparents, who were pioneers, build farms, schools, businesses and communities from the scratch. It was from them and from the vast plains of Kansas he learned hard work, honesty, discipline and commitment to building communities for posterity. He has spent his entire 85 years living tirelessly these lifelong principles and devoted just as much to imbibing them in others. Dick, as he is known to friends and even first time acquaintances, strives to do right consistently. Protégés, friends, colleagues and business partners all remember him firmly footed in his beliefs, even decades after their first encounter. He is down to earth, a straight talker, patient listener, mentor, father, friend and lover of Nigeria A modern day pioneer and management missionary, he led the startup of Arthur Andersen (AA) offices in Buenos Aires, Brussels and Lagos from the scratch. Argentina was his first mission. This was nine years after he gradu-

ated from Harvard Business School in 1958 where he learned best practices of management. To understand the pioneers of America is to catch a glimpse of the formative years of Dick. Red Cloud, Nebraska is 494 kilometres north of Hugoton, Kansas, where Dick was born in 1934. Red Cloud is the setting of the epic novels of Willa Cather, particularly her prairie trilogy: O Pioneers!, The Song of the Lark and My Antonia, her most celebrated novel. The fictional lives portrayed in the works of Willa Cather give a window to the early years of Dick Kramer. Reading about Cather and her works gives one tasked with writing about Dick the free rein to imagine his upbringing. It makes one understand those years he spent with his parents and grandparents as they farmed the uncultivated prairie land of Southwest Kansas. Otherwise it would be difficult to understand how he became a modern day pioneer and management missionary. O Pioneers!, the first of the trilogy, was written in 1913, 21 years before Dick was born. It was the first of many

books that Cather wrote based on her memories of Red Cloud. She drew inspiration for the novel, and subsequent others, from the farming communities she encountered as a child in the plains of Nebraska. The flat, sombre land, the work of the pioneers as farmers and their rural lives were the subject matter of her novels. She composed her stories from the lives of people she knew; from the experience of immigrants from Germany, Poland and Sweden who first lived in the plains. The grandparents of Dick were European immigrants. In the works of Cather, “the land is the hero”, notes David Stouck in a historical essay on O Pioneers! In her debut novel, Cather depicts the grit of the characters, of life lived close to the ground as they make the wild land succumb to their labours to yield grains. While their youthful romances, church communities, shared joys and sorrows, love of family and friends, the lifelong lessons learned from mothers and grandmothers, the quiet example of fathers and grand-

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BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Dick & Wanda Kramer Tribute

BusinessDay Breakfast with Dick Kramer in Lagos

L-R: Ben Akabueze, director-general, Budget Office of the Federation; Tokunboh Adesanya, chairman, The Rock Law Firm, and Amina Oyagbola, member, BusinessDay editorial advisory board Frank Aigbogun, publisher/CEO, BusinessDay (r), welcoming Dick Kramer, out-going chairman, BusinessDay editorial advisory board

L-R: Richard Ikiebe, chairman, BusinessDay board of directors; Ayo Gbeleyi, former commissioner of finance, Lagos State, member BusinessDay editorial advisory board and Alex Otti, former GMD/CEO, Diamond Bank.

L-R: Uwa Osa-Oboh, principal, African Capital Alliance (ACA); Adedotun Sulaiman, chairman, Financial Reporting Council of Nigeria (FRCN), and Okechukwu Enelamah, former minister of industry, trade, and investment

L-R: Collins Onuegbu, executive vice chairman, Signal Allianace; Fola Laoye, member, BusinessDay editorial advisory board, and Anietie Bassey, head, busness to business sale, Union Bank of Nigeria Plc.

L-R: Eyo Ekpo, Dozie Arinze, president, Pedestal Africa, and Afolabi Oladele, all members of BusinessDay editorial advisory board.

L-R: Vincent Maduka, member, BusinessDay editorial advisory board; Ezekiel Uvoh, PA to the Dick Kramer, and Johnson Michael Akinsola, retired Navy admiral and member BusinessDay Advisory board.

L-R: Boye Olusanya, partner, Helois Investment and Partners; Juliet Anammah, CEO, Jumia both members of BusinessDay advisory board and Yomi Awobokun, MD/CEO, Enyo Oil Pictures by Olawale Amoo & David Apara

Dick & Wanda Kramer Tribute

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Dick Kramer: Modern day pioneer and management missionary 1 <<<

fathers serve as a backdrop. This is probably the closet description to the early years of Dick. How Dick met Wanda, his teenage sweetheart and wife of 67 years, is a living example of the youthful romance Cather wrote about. Both are children of “the strong pioneer families who built vibrant communities throughout rural America” writes Dick in the first chapter of Making Change Happen: Partnering to Build Nigeria, a book published to mark his 80th birthday in 2014. They were born in the same year, grew up together attending the same school, church and youth activities. Dick reckons his parents fell in love with Wanda faster than he did and approved their marriage before they left for university. The idea of modern day pioneers comes from Wanda. In Making Change Happen, she likens their decision to come to Nigeria in 1978 as a late response to the call missionaries of their church made to them as teenagers to come to Africa. O Pioneers! was dedicated to Sarah Orne Jewett, “who advised Cather that the things ‘which haunt the mind for years’ are the proper material for serious literature.” You can tell memories of Kansas where Dick was born and raised never left his mind. And like Cather, remembrances of these past times forged Dick. In an interview with BusinessDay to mark his 80th birthday, he relates how his background shaped his tireless commitment to nation building long after retiring as Managing Partner of Arthur Andersen, Nigeria in 1994. “You have to realise this is the result of the way I was born and raised. My grandparents were pioneers who settled in the part of Kansas that I grew up in. There were no school systems; there were no towns, nothing at all. And then they started the process. It was my parents’ generation that renovated a lot of those buildings and we were raised with the idea that we are supposed to leave the world better than we found it.” How then does a modern day pioneer work to leave a better world? In the case of Dick it was through management, as a leader, mentor and investor. Ernest Shonekan, a friend and business partner for decades, calls Dick a “missionary manager”. Imo Itsueli, another close friend who has worked with him for close to 40 years is more colourful, “…Working with Dick is akin to being permanently in a Harvard or Cambridge Executive programme specializing in emerging environments, with a focus on Nigeria.” Other management-related pioneer works of Dick in Nigeria, apart from the startup of AA, include the Lagos Business School (LBS), the Nigerian Economic Summit Group (NESG), African Capital Alliance (ACA), American Business Council (ABC), Harvard Business School Alumni Nigeria (HBSAN) and BusinessDay. One way to depict Dick, the leader, mentor and investor is through his involvement in the founding of BusinessDay. During the early years of NESG, he got Frank Aigbogun, the Publisher of BusinessDay who was then Editor of the Vanguard, involved. Dick recognised the role of the media in pushing ideas for reform in a military era; particularly when, as Aigbogun narrates, soldiers and businesspeople were considered the twin enemies of Nigeria. Later on, Dick inspired Aigbogun to set up BusinessDay in 2000 and ACA invested in it. Dick, as Chairman of the Editorial Advisory Board of BusinessDay (long after the private equity firm he co-founded divested) has been pivotal in its journey to become Nigeria’s first and leading daily business and financial newspaper. Every first Monday of the month for 14

Dick years, the board has met without fail in his house. So long as you thought straight and talked straight you had the attention of Dick. Otherwise, he would learn forward, stare you in the eyes and ask you to defend the logic behind your conclusions. All evening the editorial team and other advisory board members would test what we heard or thought we knew. Sometimes,these discussions went on late into the evening until Wanda walked quietly down the stairs to ask Dick to come upstairs. This newspaper has gained insights and maintained the trust of its readers through these roundtable discussions (Dick dislikes high tables but prefers work tables). Often he was at the table to welcome us with a smile, a joke, a strong handshake or a warm embrace, and a cup of water, tea or coffee. A man of many maxims, Dick dispenses them with witty aplomb at these meetings: “In Nigeria conventional wisdom is often

wrong. There is no “I” in team. The right people doing the right things consistently for the long-term will produce excellent results. You need to be deep before you are broad. Find the best, train them and get out of their way.” His unflappable confidence in Nigeria is unparalleled. When discussions about the socio-economic condition of Nigeria become pessimistic, he is often the lone fan in the room cheering for Nigeria. Pointing to upsides and potential returns the country holds, with examples of where the private sector has done well due to government reforms, no matter how few and far between. A sage who has seen countries, communities and companies built in conditions comparable to that of Nigeria, he would add: “Nigeria is undermanaged. …what needs to be done for Nigeria to become a highly successful nation has been charted and is relatively well defined.” Only a man who has recruited, trained, partnered and worked with some of the Ni-

geria’s best and brightest can speak with such confidence. It’s the assurance of a man who early on in his career learned that “it only takes one committed generation to build a great nation”. A man who Dotun Sulaiman, a protégé who succeeded him at AA, says “… has more faith in Nigeria and confidence in the future of Nigeria than most of us Nigerians.” It is the certainty of man who agreed to help start the LBS even though they didn’t have a building, enough money or a faculty. With his wit, good nature and confidence these informal executive programmes specialised on Nigeria as an emerging economy have become a source for lifelong learning. Probably more for Dick than for us; he always took notes. In all of these, the sense of being a leader of a family, community or team was never missing. A keen sports man, Dick was the quarterback of his high school American football team and the point guard of the basketball squad. Wanda was a cheerleader and rode with the Kramers to his games. The first hires of AA remember the lunch and dinner Wanda made for them in the early years. They recall the interest Dick took in their family. Ezekiel Uvoh, his personal assistant for over 40 years, says Dick is “like a father rather than a boss”. He recounts Wanda and Dick picking he adn his wife at the airport when they visited the US. “Dick personally drove us around to different places. Can you imagine 79-year old Dick driving me and my wife all around town?” Like his pioneer forebears, Dick and his family adapted, without losing their ideals, to the culture and lives of the different places they found themselves. Some may read the simplicity and ordinariness of their lives as deceptive or condescending or masked White saviour-complex. Dick and Wanda owe no one apologies. They readily shared their lives with the people they encountered in South America, the Middle East, Europe and Africa. Rather, as everyone who has met Dick will attest, he blended his American pragmatism with Nigerian resilience to become a huge believer, one of the few alive, in the potential of Nigeria. In that interview five years ago, he asks, “Where else in the world can you find the arable land that has not been fully used, the water resources, and the mineral resources, great people that are educated and have the right skills?” This characteristic pragmatism of Dick and Wanda no doubt played a role in their choice of a permanent home in Amarillo, Texas. It’s close to the family farm in Kansas, health facilities and near to all connections to Lagos. Kirk, one of the Kramer’s two sons, best explains the genius of Dick Kramer, if there was ever one. It is the humility to understand that he can only achieve so much, the pragmatism to pick projects carefully (Dick is never short of projects to dedicate himself to), the confidence to spot, nurture and pass the baton to other leaders who will continue what he started, and in this way have a multiple impact on communities, companies and countries. Dick consistently applied this model to develop nation builders like Kunle Elebute, Dotun Sulaiman, Seyi Bickersteth, Ifueko Omoigui Okauru, Babatunde Lemo, Omobola Johnson, Okey Enelamah, Juliet Anammah, Uche Orji and Fola Laoye. All his life, Dick transplanted the ideals he learned from his grandparents, parents and the prairie wherever he went. He continues to give himself to achieve a noble, enduring life in order to sprout other lives. He is determined to wear out rather than rust out as his father taught him, just like the people in the novels of Willa Cather who “melt into the land and the life of the land until they are not stories at all but life itself.” - Tayo Fagbule is Chairman, BusinessDay Editorial Board

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Dick & Wanda Kramer Tribute

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Q&A With Dick Kramer Dick & Wanda Kramer were born in Kansas in 1934 and they are both products of pioneer families who built vibrant communities throughout rural America. Dick’s father was a lawyer and mum a school teacher. Dick and his wife of 67 years literally grew up together through common interests in schooling, church and multiple youth activities and both participated typically in leadership roles in a wide range of church, sports, scouting and other activities. Of his and Wanda’s parents, Dick says, “our parents and grandparents prospered despite difficult times. They lived through two world wars, the great depression and for Southwest Kansas, years of drought and dust bowl. Their hard work ethic, deeply religious beliefs, mindset of saving and investing for the future, honest and good citizenship behavior and belief in community service, literally also shaped our values and habits.” Both Wanda and Dick were good students but as teenagers, they both worked – Dick on the family farm and Wanda in village shops, as well as doing family chores. At Kansas University, Dick first studied law but his interest soon shifted to accounting and business management. Dick graduated from Kansas University with a degree in business administration in 1956 and then went on to Harvard Business School in 1958 to pursue an MBA. His two sons are Harvard MBA graduates. In this conversation with Frank Aigbogun, Publisher of BusinessDay, Dick, who relocates to his new home in Kansas this weekend, reminisce about his nearly 41-years long life journey through Nigeria. policies. However, we need to keep doing the right thing, hoping that someday the country is better off. The problem we have now is that this government is ready to implement things but the question is whether they implement them. I am very sure of this team I have worked with. I am confident they will stay on course and keep getting the plans right until finally they are implemented and Nigeria will be great. So, my advice to everyone here is to not give up on Nigeria. Keep doing the right thing and some day, you will be amazed what the country would turn out to be. What prepared you for the decades of selfless service in Nigeria? It boils down to the training I got from my parents and people around me while growing up. Right from the time I was growing up as a child, I have had the proposition that you need to work with the right people in life, if you want to succeed. The kind of people that will help you in doing things that are not selfish but things that would be beneficial to the commu-

Frank Aigbogun, Publisher/CEO, BusinessDay and Dick Kramer

What were your thoughts on your mind when you first landed in Lagos in 1978? I came to Nigeria with the task of helping my firm (Arthur Andersen) expand into sub-Saharan Africa. Our Paris office had already progressed by starting Abidjan and Dakar offices, with the view that Nigeria was next. My wife, Wanda and I visited Lagos, found the challenge exciting and agreed to help start the Nigerian office from scratch as well as oversee the francophone countries. My job in Nigeria was one where I was to groom talents to the level where they could take up full responsibility of the firm’s Nigeria operations even after I had left. Our first office was at 74b Adetokunbo Ademola Street in Lagos. We had our office downstairs while my wife and I stayed upstairs. Some of the employees at that time even stayed in the boys’ quarters. We started off with recruiting like 5-10 people. This close-knit group was literally our family. We developed over time, building people who are now leaders in various spheres of life. When I retired from Andersen in 1994, the company was clearly the number one global firm in the accounting and con-

sulting profession. I moved on to investing after my stint at Andersen, and co-founded Africa Capital Alliance (ACA). BusinessDay was one of the companies we invested in at ACA. I think we invested in BusinessDay in 2001. I had met Frank earlier first by reason of the Nigerian Economic Summit and then the one year work on Vision 2010. Frank was known or has been known for hard work ever since I met him. He wanted to grow BusinessDay to meet international standards and he benchmarked the paper against the likes of the Financial Times and New York Times. I must say, truly, that he has stayed on that path. How did you go about carefully choosing friends and partners to work with? Choosing the best people to start your career with is really a difficult job, but the more tedious job was coaching people who didn’t meet the standard we wanted. I was coached by one of the greatest lawyers, I am not going to mention his name, who advised me to be selective with the people I worked with and shook hands with. According to him, when you shake hands with people in Nigeria, make sure you get your fingers back and those you work with must be Nigerians that when you shaken their hands, you always got all your

fingers back. Permit me to say that everyone that I have worked with throughout my stay in Nigeria have been people whom I always got my fingers back from. It is amazing to me today, when I see people I groomed excelling in all they do. At the Nigerian Economic Summit,

you and others at the helm pioneered the engagement between government and the private sector in Nigeria. How did you manage this engagement especially during the long years of military rule? You should understand that when we started, we had the very best hands like Chief [Ernest] Shonekan who joined the government after he left United African Company of Nigeria (UAC). The truth is that what we are seeing now in the business environment was started by great people like Pascal Dozie, Shonekan and Mohammed Hayatu-Deen, Dr Imo Itsueli who pioneered the Business International Conference (BIC) and the Lagos Business School, which had just started at that time. The point I am making is that, though we were a small group, we had among us people who had the zeal to change the country. The problem that we had then and still have today is the inability to implement things. When we had a good idea, it wasn’t implemented in the end. We would then have to go back to the drawing board to start all over again. An example of this was Vision 2010, which was drafted with participation from the Nigerian Economic Summit Group (NESG), to turn the country around for good. You see, the game plan for Nigeria is very well on target but something always hindered implementation of

nity and that is one reason I picked interest in Anderson Consulting, because that set them apart from others. The people around go a long way in influencing the attitude of individuals. That’s why it is also important for young people to have mentors and do the right thing. This way, we build a community of right people. A country many thought 40 years ago will join the advanced world is Argentina. You served in Argentina, how did Argentina miss it and what lessons Nigeria can learn? Argentina is an amazing country but is underperforming despite its enormous resources. Argentina is proof that beyond resources, you need the right system and leadership to set a country on the right path. The problem with Nigeria is not in the people but in its system, hence Nigeria must fix the system and people must keep doing the right thing and build a strong community. What, in your view, would be three key imperatives for Nigeria to focus on going

forward? You have to focus on where the economy should be going, cutting across various sectors of the economy and that has been what you have been doing. However, you need to get along with key stakeholders in those sectors that would help you to report better. Just like how we started in the beginning, where we got people knowledgeable about the different sectors in the economy. You need to continue with this. We need to also get more people with knowledge of emerging industries and sectors into the advisory board. This is because you might say you have been reporting a particular sector for 5 to 10 years but you still can’t know better than those who play in the industry. So you need to talk to them, like the NNPC where you have the down-

‘‘ I would say they should keep up with the work they have started with vigour, determination and in-depth studies

stream players, the suppliers, amongst others. If you take a look at how the editorial advisory board we put together is structured, we try to cover the basic industries such as education, health care which their infrastructural development is expected to facilitate the business environment. Those people that are part of the editorial board are there for a specific reason and without doubt, they have contributed an enormous amount to the wisdom and the editorial work and studies that your staff are doing and the main focus is to help you focus on the right reports in a developing country as Nigeria. What message do you have for the reporters and writers at BusinessDay? I would say they should keep up with the work they have started with vigour, determination and in-depth studies. It is nothing different from what you have been doing, but try to be the best in all you do and ensure you are talking with the right industry players. After 67 years of being wedded to the love of your life, Wanda, what do you say is the secret of a successful marriage? My mother and father were successful people in their different sectors. One of the reasons why my father succeeded was because of the influence of my mother and same is the case with me. We have two sons. Before our marriage, both of our families were loyal to each other; my parents loved her and her parents did same. My parents at that time even loved her more than the way I did because she was a champion athlete which my dad loved and that helped to spice up our relationship in the university, until we got married.

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Dick & Wanda Kramer Tribute

Send-off dinner in honour of Dick & Wanda Kramer organised by ACA, KPMG and Verraki

L-R: Udo Udoma, former minister of budget and national planning; Emmanuel Ijewere, CEO, Best Food; Wanda Kramer; Dick Kramer, celebrant; Okechukwu Enelamah, former minister, industry, trade and investment, his wife Funlola, and Kunle Elebute, national senior partner, KPMG.

Arrival of Dick Kramer and his wife Wanda

Juan Elegido (l) and Emmanuel Ijewere

L-R: Mohammad Hayatu-deen, Funmi Jamodu and husband Kola Jamodu

L-R: Sade Odunaya, Joy Ikiebe, her husband Richard who chairs BusinessDay Board of Directors

L-R: Lanre Ladipo, Bode Agusto, Alaba Okupe, and Bolaji Adeniji Afolabi Oladele and Cyril Odu both of ACA

L-R: Adedotun Sulaiman, Emmanuel Ijewere, and Ibukun Awosika

Anya O. Anya and his wife Inyang Anya

Sally Udoma and Franca Ovadje. Pictures by Olawale Amoo

Dick & Wanda Kramer Tribute

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Send-off dinner in honor of Dick & Wanda Kramer organised byÂ American Business Council

L-R: US Ambassador, Stuart Symington; Dick Kramer: Lazarus Angbazo, president, GE Nigeria/ president, American Business Council; Margaret Olele, executive secretary, American Business Council, and Ambassador Kunle Olumide, former executive secretary, American Business Council.

L-R: Tunji Oyebanji, MD, 11 Plc; Irene Ubah, senior consultant, Talentwise, and Clement Ugorji, head, public affairs/communications, Coca Cola.

Guests at the event R-L: Dick Kramer and Lazarus Angbazo

The ladies led by Omobola Johnson, former minister, communication technology take on Kramer for a dance.

Frank Aigbogun, CEO/publisher, BusinessDay Media, and Ezekiel Uvoh, PA to Dick Kramer.

Frank Aigbogun, Publisher/CEO, BusinessDay & Kofo Awonuga of ACA, presenting a gift to Dick Kramer.

Uwa Osa-Oboh, principal, African Capital Alliance (ACA)

Margaret Olele (r), executive secretary, American Business Council and a guest.

BUSINESS DAY

Friday 28 June 2019 www.businessday.ng

Dick & Wanda Kramer Tribute

Send-off dinner in honour of Dick & Wanda Kramer organised by Andersen Tax

Dick Kramer delivering his speech

Friends and staff of Andersen Tax Nigeria celebrating Dick Kramer and his wife Wanda after cutting the cake

Dick Kramer and his wife Wanda cuting the cake supported by Muhammed Hayatudeen, Ifuako Omoigui, Aliko Dangote, Olaleye Adebiyi and Tunde Fowler

Andersen Tax Nigeria management staff presenting a gift to Dick Kramer and his wife

Aliko Dangote (r), president, Dangote Group; Dick Kramer, and his wife Wanda, and other guests

Khalil Faizal, founder 7UP Nigeria Plc, Tunde Fowler, Wole Obayomi, partner, KPMG.

Kola Jamodu (r), chairman, Nigeria Breweries, exchanging pleasantries with Okechukwu Enelamah and the celebrants

Dick Kramer and his wife Wanda receiving the present. With them are Okechukwu Enelamah and Emeka Onwuka

Standing ovation for Dick Kramer and his wife Wanda with Omobola Johnson, Fowler and Adebiyi

Guests and the celebrants

Pictures by Pius Okeosisi

Friday 28 June 2019

BUSINESS DAY

FINTECH News

Products Review

Technology Review

Personality Review

Company Review

Technology Review

Is Fintech startups’ attraction waning? Stories by FRANK ELEANYA

y this time last year, the Nigerian fintech landscape was buzzing with unrestrained excitement. Investors, founders and even the banking sector were excited about the next innovation growing around the corner. In terms of funding, by the first half of 2018, the space had exceeded what it made in the entire 2017 financial year. Local and foreign investors poured in nearly $16 million in the first three months of 2018 alone into startups in the tech ecosystem, 75 per cent of which was cornered by the fintech space. Not to be outdone, the banks also stepped up their fintech offerings. For instance, the race for the coolest chatbot on WhatsApp peaked with UBA leading the way. In 2019, however, the story has not been the same. The first quarter of the year has been by far the most promising in terms of funding and activities. Fintech startups like Carbon, Kudi.ai and TeamApt which secured significant funding from investors raised the hope of stakeholders in the segment that 2019 would likely outshine the performance of 2018.

But the second quarter of 2019 has not lived up to many people’s expectations. Apart from Carbon which announced that it had completed the acquisition of Amplify and was changing its name from Paylater in April; Paga which secured a partnership with WorldRemit in May to launch international mobile money services to its over 12 million users and Kudimoney announcing it has secured license to operate as a microfinance bank in June, there was little of more significance in that quarter. Even banks have lacked activity. The general elections in March may have contributed to the lull and dampened the momentum of fintech found-

ers and investors. After all, it contributed to the postponement of several technology conferences, summit and meetups in the first quarter. Prior to the election, analysts had forecasted an increase in investors’ anxieties and the possibility of moving investments away to more stable countries on the continent without election uncertainties. Disrupt Africa’s Finnovating for Africa 2019 report has also shown that it may not be entirely a Nigerian factor. The media platform found that the share of the overall VC funding in fintech startups claimed by South Africa, Nigerian and Kenyan startups declined. It also suggests that although investments into fintech start-

ups in the three countries are growing, the biggest developments are taking place in other markets. Countries like Uganda, Ghana and Egypt in particular “are seeing their local fintech spaces explode,” said Disrupt Africa. “The financial services landscape in Africa is following a very unique trajectory, as compared to other geographies,” said Gabriella Mulligan, co-founder of Disrupt Africa. “Most remarkable about this trajectory is that it is being driven by entrepreneurs and their home-grown innovations.” The attention of investors appears to be shifting to other tech startups, particularly those offering innovative ser-

vices in logistics and transportation Nigeria. Gokada and Max.ng the pioneer startup in the motorcycle ride hailing market have secured investments that have rivalled the funding fintechs secured in the first quarter of 2019. The market has also attracted new and deep- pocket investors like Opera. Nevertheless, a deeper concern for some stakeholders is what is seen as the absence of originality in the fintech space. David Hundeyin, a BusinessDay columnist recently stated that Nigerian startups were not “startups” in the true sense because they are note creating their own market demand. “They are merely competing on price and visibility with a plethora of exact substitutes with a market that is smaller in both absolute and proportional terms than Kenya, South Africa, and the other two African powerhouses,” he said. Victor Asemota, African partner, Alta Global Ventures in November 2018, had predicted mergers and acquisitions in the tech space, especially in fintech. “This will happen more in the fintech space where there is so much replication of efforts in similar markets,” he said. As it turns out many

startups are beginning to rethink their strategies and expanding to help them compete in the market that is almost nearly saturated with products that look very much like each other. Fintech firms in Nigeria face a herculean task operating in a difficult business environment like Nigeria. In the early days they were tagged disruptors of financial institutions, which automatically put a target on their back as banks enemies. Hence the earlier relationship between banks and fintech firms was anything but cordial. Little has changed ever since, despite most banks claiming they have a healthy collaboration with the startups. If things should change, much of it would have to be driven by the enabling environment the Central Bank of Nigeria (CBN) provides. So far its policies have seemed to favour the banks more than the fintech firms. One of them would be to revisit the capital requirement for running a fintech business in the first place. “How would innovation visit Fintech if that kid with a brilliant idea who just left college is required to pony up N2 billion before the CBN would allow him or her to play in the space?” asked Aloy Chife, managing partner and CEO SAANA Capital.

progress, investors are forced to seek alternative assets or safe-haven to put their money.

tional money may come from pension or hedge funds. Reitz says Fidelity’s infrastructure could facilitate millions and even billions of dollars of investment into the market. “In addition, the owners of the New York Stock Exchange, ICE, have also indicated that they would launch a crypto trading platform called Bakkt for institutional investors. Luno however, does not believe that we will see mass institutional adoption in 2019,” Reitz said.

Six factors behind Bitcoin’s bull market frenzy

he price of bitcoin has been in a bullish mode for the past seven days. The price of the world’s largest cryptocurrency by valuation climbed to a seventeen month high hitting $12,935.58 on the Bitstamp exchange. It is a 90-degree rally with a ratio of bitcoin’s price to the 200-day price average printed at a high of 2.42, a level which was last seen in early January 2018, according to Coindesk. com. In Nigeria where growing investors’ interest in the cryptocurrency has contributed to the country taking the top position on Google Trends Worldwide search on Wednesday, Bitcoin on Luno exchange was selling for N4,715,299 on Wednesday evening. Marius Reitz, general manager, Luno Africa, in a statement explained that the upward price is in line with the longer-term interest in the asset.

“As a result of the price fluctuations, though, there is more interest,” he said. “We are seeing new people buying cryptocurrency on our exchange every single day.” Six factors have been identified as being behind the recent surge. Facebook Libra Many analysts are very optimistic about the potential of Libra to help cryptocurrencies gain mainstream acceptance, both as a means of payment and as a store of value. Reitz says it mitigates volatility with a more balanced and smart issuing mechanism which is ultimately more stable and it instils broader acceptance – should Facebook add Libra to all Facebook products, it will instantly bring billions of people closer to the crypto realm.

make money. Hence, there has been a lot of pent-up interest and capital from both consumers and institutional investors who want to make sure they do not miss the next wave as the asset class appreciates in line with its long-term upward trend. April Spike The activities of a large buyer or group of buyers which saw a substantial amount invested in the market and possibly

kicked off a buy trigger could also be behind the surge. That investment is believed to have encourage investors who prior to then was sitting on the fence to take their position. China vs USA The ongoing trade war between world superpowers, the United States of America and China has contributed its fair share to the new positive market sentiments. As the trade war

Increased institutional investments A growing number of institutional investors have publicly expressed plans to participate in the cryptocurrency market. One of them is the Fidelity Investment announcement that is building a crypto solution for institutional investors (institu-

Bullish signals “There have also been a number of bullish signals over the last few months, including large banks and tech companies moving into the sector, positive news on Bitcoin’s scaling capacity and a host of new instruments like stablecoins with much better-defined use cases, much of which one needs to access via existing crypto onramps,” Reitz said.

Speculation Many investors want to take advantage of rising prices and www.businessday.ng

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Friday 28 June 2019

BUSINESS DAY

NEWS Scores escape death in another Lagos building collapse Joshua Bassey

everal persons have escaped death as another building collapsed in Lagos, Nigeria’s commercial city, with over 21 million population and a housing deficit of over 3 million. The latest collapse on Wednesday night was the second within one week in Lagos. The three-storey building located at Farm Fagba, off Iju Road, was still under construction when it caved in at about 11:05pm. Olufemi Oke-Osanyintolu, general manager of Lagos State Emergency Management Agency (LASEMA), told journalists that the agency received a distress call regarding the collapsed building and mobilised the agency’s response team with other stakeholders to the scene. According to Oke-Osanyintolu, on arrival at the scene, it was discovered it was a building under construction. He explained that pre-

liminary report after physical assessment of the collapsed building revealed that the incident could be as a result of the use of substandard building materials and the lack of expertise in the construction of the building, just as he cautioned builders against quackery. He said victims were evacuated and the injured were responding to treatment at a hospital, saying, “No deaths recorded. All the key stakeholders that are important in managing disaster in Lagos are on ground.” While noting that other relevant government agencies have also been contacted for further investigation as to the real cause of the incident to prevent future occurrence in the state, he however said the agency will continue to partner with relevant stakeholders and also continue advocacy on the need for all and sundry to always imbibes safety culture to avoid unnecessary loss of live and properties in the state.

Groups identify gaps in fight against human trafficking, irregular migration

Total Health Trust wins NHEA Lagos pays compensation to 197 deceased staff’s beneficiaries Award for 3rd time ANTHONIA OBOKOH

otal Health Trust Limited has for the third time in four years emerged winner at the just concluded Nigeria Healthcare Excellence Awards 2019 (NHEA). Total Health Trust received the award for the Health Maintenance Organisation (HMO) of the Year category, a position keenly contested by other nominated HMOs including Avon HMO, AXA Mansard, Hygeia HMO and Redcare HMO. The annual Nigeria Healthcare Excellence Awards 2019 held June 21, 2019 in Lagos, represented the sixth edition of the event, started in 2014. The annual event is organised as an initiative of Global Health Project and Resources (GHPR) in partnership with Anadach Group USA, and seeks to recognise outstanding institutions, organisations and personalities within the private, public and not-for-profit sectors, who are creating a positive impact in the healthcare industry. The Awards evaluation process is undertaken by an independent panel of jurors, site assessment visits, rounds of nominations and voting by healthcare consumers. This objective process has made the NHEA awards both highly coveted and a trusted mark of quality and excellence, which is driving higher

standards in service delivery in healthcare. Total Health Trust has demonstrated consistency in its performance over the six-year tenure of the Awards, and has been nominated every year since 2016 in the Health Maintenance Organization awards category, winning the award in 2016, 2017 and now in 2019. Commenting on the achievement, Nick Zaranyika, Total Health Trust’ CEO, said: “Winning this award again for the third time in four years is testimony to the fact that we are leading the industry in service delivery of health insurance solutions. “This award would not have been possible without the support and partnership of our various stakeholders. We are grateful for their continued support and we will continue to work hard to ensure that we maintain and improve on the service we deliver to them.” Other winners at the NHEA 2019 include Oladipo Olujimi Akinkugbe (Lifetime Achievement Award), Lily Hospitals, Warri (Private Healthcare Provider of the Year), Synlab (Private Laboratory Service Provider of the Year), Clinix Healthcare (Radiology Service Provider of the Year) and Access Bank (Outstanding Healthcare SME-Friendly Financial Institution.

Josephine Okojie

agos State government recently presented letters of compensation to 197 beneficiaries of deceased staff members of the State Universal Basic Education Board (SUBEB) and Local Government Councils as payments of their insurance benefits. The presentation of the letters was made at the governor’s office, Alausa, Ikeja, through LASACO Assurance plc to a total of 197 beneficiaries of which 109 were from SUBEB and 88 from the local government councils. Babatunde Rotinwa, chairman, Lagos State Local Government Commission, during the presentation of the letters to beneficiaries said the event was part of the state’s commitment towards the wellbeing of its workforce. “The effective payment of compensation by the state is a pivotal role in ensuring that the families of the deceased do not suffer,” Rotinwa said. He advised the beneficiaries to spend the money wisely when they receive it especially in educating the deceased children, while expressing gratitude to Governor Babajide Sanwo-Olu for his

prompt payment of June salary, saying it was a signal of greater things to come. In his speech, Rasaq Abiodun, deputy managing director, LASACO Assurance, said the state had been at the forefront in making payments of compensation to deceased staff members. “The state has considered that beyond paying salaries, those that are dead should be compensated and this is what makes Lagos State unique,” Abiodun said. “We will be making payments to 197 families and the least person will be collecting N640,000. 109 families of SUBEB staff and 88 for families of local government councils’ staff members who are deceased,” he said. He urged the beneficiaries to make judicious use of the money by investing it in productive ventures that would yield profits. Speaking on behalf of the beneficiaries, Lucky Ugbebor, husband of late Joyce Oluwatosin Ugbebor, a teacher in one of the state’s primary school, gave all glory to God and also appreciated the state for the compensation. He advised staff to put in their best in the discharge of their duties, saying, “The state government rewards those that work for them and that today’s payment is a testimonial of that.”

… as women lawyers promise free legal service to victims of sexual violence IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

takeholders in the antihuman trafficking and irregular migration crusade have identified reasons for the difficulties in the fight against the menace in Nigeria. The stakeholders made the disclosure in a statement made available to the press in Benin City, the Edo State capital. The statement, signed by Evon Idahosa, executive director, Pathfinders Justice Initiative (PJI), said gaps were identified in the areas of thematic, rehabilitation, law enforcement, research, awareness creation, among others. Idahosa said the stakeholders made the discovery at a two-day Gaps Analysis event organised in Benin City by PJI in collaboration with University of Venice (Italy), Equality Cooperative Socials, Nigeria Women Association, and Assoc 5050. She listed some of the stakeholders that participated at the event to include representatives of the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), Benin zonal office, Edo State Taskforce Against Human Trafficking, Nigeria Immigration Service, International Organisation for Migration, Edo State Judiciary, European Union delegation to Nigeria, and UKAID. Others are experts from France, delegation of the National Commission for Refugees, Migrants and IDPs, Red Cross, Salvation Army, University of Benin, Oba Ewuare ll Foundation, as well as Independent Researchers, Academics, the media, among others. The event with the theme, “InsigHT- Capacity Building to Deal with Human Trafficking and Transit Routes in Nigeria,

Italy and Sweden, afforded stakeholders the opportunity to identify gaps in current antihuman trafficking/irregular migration effort within Nigeria. The stakeholders are collaboratively working to ensure that ongoing projects complement each other, rather than duplicate efforts as well as to ensure optimal collaboration, particularly on a transnational level, she said. According to Idahosa, these areas reflected gaps stakeholders and policy makers are to create clear action plans to change the current narratives. “This will ensure that stakeholders, donors, implementers work collaboratively; share key information to avoid duplication of efforts; craft programmes/interventions from a more holistic approach and design interventions geared towards safe/legal pathways for regular migration as well as generate legal economic alternatives for would be migrants within Nigeria,” she said. Meanwhile, the International Federation of Women Lawyers (FIDA), Edo State chapter, has promised to offer free legal services to victims of sexual assault and violence against any girl child in Nigeria. Iryn Omorogiuwa, chairperson, FIDA, made the promise Wednesday at a press conference to mark the 2019 International Day Against Drug Abuse and Illicit Drugs with the theme, “Health for Justice. Justice for Health,” in Benin City. Omorogiuwa, who condemned substance abuse in the society, said the body would continue to fight against drug abuse. www.businessday.ng

L-R: Yinka Tiamiyu, chairman, Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN); Mohammed Balarabe, deputy managing director, Fidelity Bank, and Onyinyechi Ekweronu, acting chief audit executive, Fidelity Bank, at the Association of Chief Audit Executives of Banks in Nigeria’s (ACAEBIN) 42nd quarterly general meeting in Lagos.

Uber set to scale operations in Nigeria, expands into boat services …heightens competition with Gokada’s GBoat OLUFIKAYO OWOEYE

ide-hailing firm, Uber, said Thursday plans were underway with regulators in Nigeria to expand into boat service in Lagos. Similar plans were also in the works for Abidjan, in Cote d’Ivoire, and Dakar, the capital of Senegal, it said. Giving the reasons for the choice of these countries, Brooks Entwistle, chief business officer, Uber, said Ivory Coast and Senegal have two of the world’s fastest-growing economies according to the International Monetary Fund, while Nigeria, Africa’s largest

economy, is also the continent’s most populous nation. “We have talked about West Africa today as being a big growth priority for us and launch priority for us moving forward,” he said. Recently, Uber launched boat services in Mumbai, India. Some motorcycle ridehailing platforms have also targeted markets on the continent as an area for expansion in the last few months. “It is in its early stages and we think there is high relevance here in Lagos,” Entwistle said. Entwistle said Lagos was one of the great growth op-

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portunity cities in the world and that the company has also held discussions with a bus firm and regulators in Lagos. He noted that talks were in line with a global push by the company to develop products that can work alongside public transit systems. Recently, days after the successful completion of $5.3 million Series A funding from investors, another on-demand bike-hailing startup, Gokada, announced plans to expand with the launch of yacht boat services called GBoat, in Lagos. According to Gokada, the boat service will provide comfortable transportation services @Businessdayng

while helping commuters to beat traffic. The pilot scheme is targeted at commuters who ply between Lekki and Ikorodu axis, it said. Lagos is home to over 24 million residents with over 2 million vehicles plying the roads daily, says the Lagos State Traffic Management Agency (LASTMA). Potential in water transportation services remains largely untapped in Lagos, while few current operators do not provide top-notch services to commuters. Issues of safety have also plagued these operators as cases of boat mishaps claiming lives are occasionally recorded.

Friday 28 June 2019

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Friday 28 June 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 27 June 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

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Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 238,153.01 6.70 0.75 280 31,758,193 UNITED BANK FOR AFRICA PLC 210,326.44 6.15 0.81 171 18,168,363 ZENITH BANK PLC 623,220.40 19.85 -0.75 359 23,337,937 810 73,264,493 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 238,703.70 6.65 -2.21 279 28,730,258 279 28,730,258 1,089 101,994,751 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,625,732.18 129.00 0.39 150 3,810,726 150 3,810,726 150 3,810,726 BUILDING MATERIALS DANGOTE CEMENT PLC 3,152,493.87 185.00 0.54 164 3,602,530 194,904.33 12.10 2.11 168 19,732,210 LAFARGE AFRICA PLC. 332 23,334,740 332 23,334,740 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 311,875.62 530.00 6.00 12 122,583 12 122,583 12 122,583 1,583 129,262,800 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 1 2,000 1 2,000 1 2,000 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 1 2,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 61,050.24 64.00 -3.90 39 2,028,121 PRESCO PLC 52,000.00 52.00 - 8 40,040 47 2,068,161 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 1 2,500 1 2,500 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,590.00 0.53 -1.85 17 1,006,751 17 1,006,751 65 3,077,412 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 794.19 0.30 - 4 8,532 JOHN HOLT PLC. 182.90 0.47 - 1 673 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 44,306.31 1.09 -4.39 156 45,968,633 U A C N PLC. 18,008.10 6.25 0.81 69 3,485,955 230 49,463,793 230 49,463,793 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 27,588.00 20.90 - 6 15,493 ROADS NIG PLC. 165.00 6.60 - 0 0 6 15,493 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,897.59 1.50 -3.23 19 5,163,926 19 5,163,926 25 5,179,419 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 2 43,530 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 104,371.74 47.65 0.21 49 2,628,245 INTERNATIONAL BREWERIES PLC. 157,304.27 18.30 9.58 55 4,388,699 NIGERIAN BREW. PLC. 459,821.87 57.50 -7.26 61 251,703 167 7,312,177 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 87,500.00 17.50 -0.29 76 1,352,155 DANGOTE SUGAR REFINERY PLC 136,200.00 11.35 - 83 565,509 FLOUR MILLS NIG. PLC. 57,405.31 14.00 -0.71 44 4,077,624 HONEYWELL FLOUR MILL PLC 8,009.50 1.01 -1.94 39 1,002,346 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 39,741.58 15.00 - 6 5,203 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 248 7,002,837 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 19,345.48 10.30 0.49 40 676,955 NESTLE NIGERIA PLC. 1,109,718.75 1,400.00 3.70 113 571,973 153 1,248,928 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 1 18 VITAFOAM NIG PLC. 4,753.21 3.80 - 14 73,964 15 73,982 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 28,190.39 7.10 - 21 60,635 UNILEVER NIGERIA PLC. 184,127.42 32.05 0.16 20 433,428 41 494,063 624 16,131,987 BANKING ECOBANK TRANSNATIONAL INCORPORATED 190,835.33 10.40 -1.42 78 7,675,303 FIDELITY BANK PLC 49,257.15 1.70 -0.59 88 8,591,549 GUARANTY TRUST BANK PLC. 906,480.32 30.80 0.49 313 31,900,365 JAIZ BANK PLC 13,848.20 0.47 4.44 5 165,760 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 63,338.92 2.20 -6.38 87 13,226,740 UNION BANK NIG.PLC. 203,845.27 7.00 1.45 58 1,430,484 UNITY BANK PLC 7,598.07 0.65 1.56 8 340,035 WEMA BANK PLC. 25,073.40 0.65 -1.52 28 424,216 665 63,754,452 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,781.84 0.69 -1.43 13 217,707 AXAMANSARD INSURANCE PLC 20,370.00 1.94 - 2 11,000 2,113.80 0.26 8.33 5 320,000 CONSOLIDATED HALLMARK INSURANCE PLC CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 - 19 80,829 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 2,123.80 0.29 - 5 344,739 LASACO ASSURANCE PLC. LAW UNION AND ROCK INS. PLC. 2,234.09 0.52 - 1 10,000 LINKAGE ASSURANCE PLC 5,680.00 0.71 - 5 5,589 MUTUAL BENEFITS ASSURANCE PLC. 2,458.00 0.22 - 5 876,880 NEM INSURANCE PLC 12,145.16 2.30 - 15 235,572 1,547.90 0.20 - 0 0 NIGER INSURANCE PLC PRESTIGE ASSURANCE PLC 2,691.28 0.50 - 1 20,110 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 1,918.39 0.23 - 10 59,600 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 - 0 0 WAPIC INSURANCE PLC 5,754.58 0.43 2.38 21 737,477 102 2,919,503

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MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 2,652.50 1.16 -3.33 12 917,091 12 917,091 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 3,780.00 0.90 - 4 3,133 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. 4 3,133 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,100.00 3.55 0.85 52 674,757 CUSTODIAN INVESTMENT PLC 35,585.28 6.05 - 8 35,485 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 32,080.39 1.62 1.25 50 3,834,347 1,131.98 0.22 - 3 95,159 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 404,501.84 39.50 -1.25 56 1,177,632 UNITED CAPITAL PLC 13,740.00 2.29 0.44 44 1,209,165 213 7,026,545 996 74,620,724 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 - 8 1,479,800 8 1,479,800 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 593.50 0.60 - 2 1,621 2 1,621 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,575.00 5.05 - 3 100,000 12,197.94 10.20 2.00 16 226,142 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 4,140.56 2.40 - 12 174,607 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 987.56 0.52 - 18 785,239 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 49 1,285,988 59 2,767,409 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 888.00 0.25 8.70 15 2,987,135 15 2,987,135 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 1 2,000 NCR (NIGERIA) PLC. 648.00 6.00 - 0 0 TRIPPLE GEE AND COMPANY PLC. 346.47 0.70 - 0 0 1 2,000 PROCESSING SYSTEMS CHAMS PLC 1,267.94 0.27 3.70 21 1,311,947 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 3 30,000 24 1,341,947 40 4,331,082 BUILDING MATERIALS BERGER PAINTS PLC 1,869.36 6.45 -9.79 21 363,434 CAP PLC 19,250.00 27.50 - 9 40,535 CEMENT CO. OF NORTH.NIG. PLC 173,494.21 13.20 10.00 111 4,332,147 FIRST ALUMINIUM NIGERIA PLC 844.14 0.40 - 0 0 313.43 0.59 - 1 38,452 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 1 110 PREMIER PAINTS PLC. 1,156.20 9.40 - 1 100 144 4,774,778 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,465.85 1.40 -3.45 11 596,310 11 596,310 PACKAGING/CONTAINERS BETA GLASS PLC. 33,173.14 66.35 - 4 3,861 GREIF NIGERIA PLC 388.02 9.10 - 0 0 4 3,861 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 159 5,374,949 CHEMICALS B.O.C. GASES PLC. 1,719.09 4.13 9.84 12 609,850 12 609,850 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. 92.40 0.42 - 0 0 0 0 12 609,850 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,503.05 0.24 4.35 24 603,725 24 603,725 INTEGRATED OIL AND GAS SERVICES OANDO PLC 49,104.08 3.95 -1.25 102 6,646,614 102 6,646,614 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 61,301.19 170.00 - 12 6,782 CONOIL PLC 15,024.06 21.65 - 14 68,797 ETERNA PLC. 5,151.37 3.95 8.22 15 225,905 FORTE OIL PLC. 35,687.98 27.40 -9.87 86 901,156 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 35 2,469 TOTAL NIGERIA PLC. 50,928.28 150.00 - 28 31,302 190 1,236,411 316 8,486,750 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 0 0 TRANS-NATIONWIDE EXPRESS PLC. 342.26 0.73 - 0 0 0 0 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 2,702.44 1.30 - 6 640 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 7 870 TRANSCORP HOTELS PLC 41,042.18 5.40 - 0 0 13 1,510 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 163.30 0.27 - 1 25 LEARN AFRICA PLC 1,033.74 1.34 - 2 1,500 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 798.11 1.85 - 3 54,665 6 56,190 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 480.73 0.29 7.41 11 1,213,630 11 1,213,630

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BUSINESS DAY Friday 28 June 2019 www.businessday.ng

BRF at 56: The art of making things better… Hakeem Bello

“O

ur people may doubt what we say or plan, but certainly will not doubt what

we do.” Those were the words of former Governor of Lagos State and former Minister of Power, Works and Housing, Mr Babatunde Fashola, SAN at the 7th Lagos Economic (Ehingbeti) Summit on 8 April 2014. A few months thereafter, in what represents a vote of confidence on the performance of Fashola and his team, Fitch, a global rating agency, upgraded Lagos State’s National Longterm rating from ‘AA (nga)’ to “AA+ (nga)’ “for its continued solid operating performance, improved transparency and efforts towards an increasingly sophisticated and transparent administration, which is conducive to growing private sector investments.” Without a doubt, Lagos State, and by extension Nigeria, has been the better for the circumstances which brought out Mr Fashola from his private legal practice and thrusted him into public service, who in his characteristic self, applied himself wholly to the responsibility. “Being in public office for us cannot be a tea party. It cannot be a picnic. Rather, it demands the highest degree of discipline, sacrifice, commitment and determination to make enduring changes,” he had told his colleagues in the Executive, and members of the Legislature, during the presentation of his maiden Budget as the Governor in 2008. This prior commitment to public service must have been his guiding principle when he responded to the challenge of heading the unprecedented combo of the hitherto separate Ministries of Power, Works and Housing from President Muhammadu Buhari. Fashola rolled up his sleeves, and like the “skilled mechanic” (credit Nobel Laureate Prof Wole Soyinka) that he is, - for his methodical approach and detailed planning to solving problems – soon after being inaugurated, headed to the various ministries, and for weeks received comprehensive briefings from the public servants there in preparing for his maiden Press Briefing where he laid out his agenda for each of the sectors under the merged Ministry. With overwhelming support from President Buhari, and with increased budgetary allocations to the Ministry, infrastructural renewal began to manifest across the country within a short period of time to

Babatunde Fashola

the extent that there was no State in the Federation without Federal Government presence. As Fashola would put it, “if we are not building a road in a state, we are building a house or intervening in a transmission system.” A columnist with The Nation newspaper, Steve Osuji who had earlier wondered why such critical sectors could be handed over to one individual, even if the person had proven track record of deliverability was later to testify to the wisdom in the President’s decision. Wrote he: “Who says a tree

cannot make a forest; who says only an engineer could head the Works, Power and Housing ministry, who says leadership is not everything?” He termed it the “Fashola Effect.” In May 2017, during his tour of duty as Minister of Power, Works and Housing, Fashola travelled “by road to 34 states to visit road projects, driving for a minimum of 12 hours per day.” He later toured the remaining two States – by road as well. In Kano, the Emir, HRH Muhammadu Sanusi III told him: “…Nobody needs to know how

many megawatts of power you are producing now; we experience it. We know the number of hours we used to be in darkness and what we are experiencing now. Most people now get electricity for 16,17, 18 hours on the average since you came in. Frankly, that is significant progress….” A journalist, Ebitimi Tamuno, wrote in The Nation of 3 April 2017 that Fashola and his entourage arrived the Borno State Government House in Maiduguri a little over midnight (and) Governor Kashim Shettima was bewildered because nobody had driven on that route that late in seven years of Boko Haram then. Transition being a central metaphor in human existence, the critical junction of the completion of a tenure of office as the Minister of Power, Works and Housing after three years and six months meant for Mr Fashola a period to render an account of stewardship both to Mr President and the Nigerian public whom he served. And this he did on Monday 29 April 2019 when he presented a Tenure Completion Report during the public presentation of the book, “Proof of Infrastructure Delivery Across Nigeria.” As an avowed team player, he summed up thus: “Ladies and Gentlemen, on behalf of my brother ministers, Mustapha Baba Shehuri, Minister of State who started this journey with me, and Suleiman Hassan Zarma, Minister of State who joined in 2017, and who has now been redeployed to head the Ministry of Environment, I feel confident to say that with the help, support and cooperation of our staff, under the leadership of

Former Hon. Minister of Power, Works & Housing, Mr Babatunde Fashola SAN (right) , Managing Director/CEO, Rural Electrification Agency(REA), Mrs Damilola Ogunbiyi (middle), and benefitting shop owner, Ms Ebube Theophilus(left), during the inspection of the electrified shops under the Federal Government ‘s Energising Economies Initiative at the Ariaria Market Aba, Abia State on Thursday, 17th May 2018.

our permanent secretaries and directors, we have delivered on the agenda I set out at the 2015 press briefing.” Wor thy of note at that event was the attestation of the members of the legislature who had oversight functions over the Ministry headed by Mr Fashola. Chairman of the Senate Committee on Works, Senator Kabir Gaya who stated that his committee members travelled to 33 states by road affirmed that “roads which were neglected for the past 18 years are back on track” and commended “the (Minister’s) zeal and commitment to serve his boss (President Buhari) and to serve the nation.” At the event also, Alhaji Lai Mohammed, said that the Ministry of Power, Works and Housing made his job as Information Minister “much easier than it would have been because right from the beginning they gave us things to say about this Administration’s achievements.” For the records, Mr Fashola’s then colleague, the Minister of State, Hon. Mustapha Baba Shehuri, testified at the valedictory session (on 28 May 2019) for both of them: “(The) Minister is an embodiment of hard work, a visionary, excellent, innovative, focused and integrity-based leader…which made it possible for us to hold and discharge our responsibility reasonably well.” Indeed beyond these testimonies, says the Permanent Secretary (Power), Louis Edozien, who himself was drafted from the private sector, is the message that Fashola continually passed on to them at the ministry that “the journey is not over; the work is never done and we as public servants must understand that we have a commitment to deliver service (and) continue this journey to the end and make the country better for all of us.” And, that indeed, is what drives Mr Fashola: working with his heart and might to make things better than how he met it. Perhaps, it is better put by Modestus Umenzekwe, a former President of Odunade Building Materials Dealers Association, and a frequent road user, who wrote in The Cable (8 September 2016): “One admirable thing about Fashola is that he executes every assignment as though his life depended on them. He is, to a considerable extent, the face of what the Catholic Church has in recent decades popularised as common good.” And, on that good note, here’s wishing my boss a hearty 56th birthday. • Hakeem Bello is Special Adviser, Communications to the former Minister of Power, Works and Housing.

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