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news you can trust I ** thursDAY 28 may 2020 I vol. 19, no 572

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Gambari in quiet push to re-direct the presidency and make it work better

he new Chief of Staff to the President, Ibrahim Gambari, has begun a quiet operation to redefine the mode of engagement in the Presidency with special focus on enhancing delivery of the government’s key objectives. This will also promote harmonious working relationship between the respective offices of the president and vice-president. Gambari, a long-serving diplomat who has personally witnessed and successfully worked to defuse crises in different locations across the world, was appointed two weeks ago after the death of his predecessor, Abba Kyari. It is now emerging that Kyari had placed such a strong grip on the workings of Nigeria’s seat of power and in the process setting Continues on page 31

Inside

From Boko Haram’s P. 3 bedroom plaything to IDP camps’ forgotten citizens Edo poll: In show of acceptance, Abuja group obtains forms for Obaseki P. 3

Ramatu Aliyu (m), FCT minister of state, signs for the release of 5 inmates at Nigerian Correctional Service, Kuje, during her visit to mark Eid alFitr. She said she forfeited her May 2020 salary to secure their release. NAN

Patients shun hospitals on coronavirus fears ANTHONIA OBOKOH, TEMITAYO AYETOTO (Lagos) & GODSGIFT ONYEDINEFU (Abuja)

achi, 30, was finally going to part with a relationship of inconvenience with ovarian torsion, a condition that occurs when an ovary twists around the liga-

As clinics increase telemedicine adoption

ments that hold it in place. A surgery billed for April would have launched her into a life free of distressful menstrual cycle. But COVID-19 happened and the procedure became a victim. The jarring evidence of hos-

pitals in themselves turning into volatile bases for transmission on the back of poor testing capacity and shortage of personal protective equipment (PPE) crushed her confidence to proceed with the surgery she had

anticipated for almost a lifetime. The procedure was deferred indefinitely. “I’ve been waiting my whole life for this procedure. Now it’s happened this way,” Kachi told Continues on page 31

Thursday 28 May 2020

BUSINESS DAY

NEWS

After rift, Delta, Anambra meet to kill National Assembly Wants to Scuttle NDDC Forensic Audit - Pondei COVID-19, save businesses IGNATIUS CHUKWU, Port Harcourt MERCY ENOCH, Asaba

ours after Delta State government pulled down the iron barricade mounted at Asaba end of Niger Bridge, both Delta and Anambra State governments have met and resolved to work together to ensure free flow of traffic on the bridge. But they threaten to impound any truck not carrying essential commodities and those carrying large number of people across the bridge. The decision is to kill coronavirus (COVID-19) and not to kill businesses, and that is why we are intervening the way we are doing, Charles Aniagwu, Delta State commissioner for information, said shortly after a meeting of both governments. “Any truck that is not on the essential list will be impounded. Movement of people in large numbers is also prohibited. So, you can’t come here in large numbers and begin to tell us that you are exempted,” he said. The meeting, which took place at the foot of Niger

Bridge, Asaba end, had the official of the both states in attendance. Secretary to Anambra State government, Solomon Chukwulobelu, in company of his Delta counterpart, Chiedu Ebie, had briefed newsmen on the outcome of the meeting, saying both governments decided to work together on the enforcement of the lockdown as it concerned movement at the bridge, in the interest of the suffering masses. He said it was intended to free the bridge of heavy truck constrained to be on it for long periods, adding that the strategy was to ensure that the integrity of the bridge was not compromised. According to the SSG, both states resolved to push back their processing points a bit further from the bridge in order to ensure that heavy vehicles do not get stuck on the bridge. He said there would be exchange of personnel from both states to ensure the integrity of the screening being conducted on human and vehicular traffic at the border post.

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cting managing director of the Niger Delta Development Commission (NDDC), Kemebradikumo Pondei, has accused the committees of the National Assembly responsible for the oversight of the Commission of working against the forensic audit ordered by President Muhammadu Buhari. Addressing a press conference at the NDDC headquarters in Port Harcourt Tuesday, Pondei said the probe being embarked on by the National Assembly was distracting the Commission from focusing on the forensic audit, which all stakeholders, including governors of the nine Niger Delta states, agreed with Mr President as the way forward for the Commission. He said: “We suspect that the probe being trumpeted by the National Assembly is not for altruistic reason but an attempt by some members to arm twist the Interim Management Committee.” He justified the claim, stating: “We have faced so much pressure from some members of the National Assembly not

to send certain files to forensic auditors. We fear that this will compromise the integrity of the exercise and have refused to do their bidding. “We have also faced pressure from some members of the National Assembly to pay for 132 jobs which have no proof of execution. We have refused to pay out N6.4 billion for those jobs. We believe that an IMC set up as a cleansing structure cannot become part of the old story of rot.” The NDDC CEO observed that since the IMC came to make NDDC better and had a limited mandate till December, it had summoned the courage its predecessors did not have to tell Nigerians the truth. He lamented: “50 percent of NDDC’s inability to deliver on its mandate is as a result of the stranglehold of the National Assembly on the Commission. “The National Assembly delays passage of the Commission’s budget until it is too late for it to be implemented. The 2019 was passed two months to the end of its implementation period. In fact, the hard copy was received by the Commission on April 10, 2020 when the implementation period ends on May 31. Given the

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procurement rules, it is not enough time to call for tender and execution of the jobs. The statutory period for advertising tenders is six weeks. “Two, the budgets are bastardised by National Assembly in a way that renders it useless. A case will suffice.

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In the 2019 budget, we had a provision of N1.32 billion to pay our counterpart funding to the International Fund for Agricultural Development, IFAD, for the $129.7m Livelihood Improvement Family Enterprises Programme in the Niger Delta (LIFE-ND).

Thursday 28 May 2020

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news LEFT TO SUFFER (II):

From Boko Haram’s bedroom plaything to IDP camps’ forgotten citizens In the second part of this series, IBRAHIM ADEYEMI tells the story of women who regained their freedom from Boko Haram after years of repeated rape in forced ‘marriages’, only to end up hungry, malnourished and abandoned at Internally Displaced Persons’ (IDP) camps in Borno State.

ood—only food—is all Halimah Yaqubu, 42, needs to survive. Any other thing is just a supplement. Seated inside an Internally Displaced Persons (IDP) camp in Delwa, Borno State, one Tuesday in February, Halimah winks miserably in an eye combat with her shivering son. She dawdles laboriously as she ventures out of her hut to tend to the journalist. For Halimah and her children, food is the greatest need. Her husband, Alhaji Aliyu, is now too old to cater to the family. And her son, Shamsu, who used to be the breadwinner of the family, was hacked down by Boko Haram terrorists in 2014 at his residence in the Konduga area of the state. Shamsu’s gruesome murder happened at a time he was preparing to get married and start a new life. Four out of Halimah’s eight children are with her in the

Poor Halimah Yakubu

Maryam Bukhar washing her clothes at her temporary home, Delwa camp

camp. The other four have all been consumed by the insurgency. The quintet now lives from hand to mouth, solely depending on whatever Halimah gets from daily begging and scavenging. “If not for this interview, I’ll have gone out to beg,” she says at the start of the conversation. “My kids are hungry, and they’ve had nothing to eat today. Give me food and I’ll be fine.” CALLOUS MONSTERS Many women in Borno are being wrecked by hunger after surviving the sexual slavery of the Boko Haram terrorists. Boko Haram’s intentions are known to all: kill for fun, maim for pleasure, kidnap for sexual slavery and ransom. In northeastern Nigeria, the Islamist group has established a savage campaign of rape and sexual slavery that has ruined lives and damaged

homes. Thousands of girls and women have been captured and forced into marriages and cruelly indoctrinated, with those to have rebelled among them killed in cold blood. Now in its eleventh year, the conflict continues to distort the lives of tens of thou-

sands of children, women and men. As of 2019, 1.8 million Nigerians — majority of them from Borno State — had fled their homes and had become internally displaced. Eighty percent of internally displaced people are women and children, and one in four are under the age of five, according to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA). According to a report by Human Rights Watch, women and girls who refuse to convert to Islam are subjected to physical and psychological abuse, forced labour, forced marriage to their captors, sexual abuse, rape and forced participation in military operations, including carrying ammunition or luring men into ambush. In addition, they are made to cook, clean, and perform

Continues on page 27

he financial market liquidity which stood at N590.8 billion on Monday morning will further rise to N955.9 billion as maturing Treasury Bills (NTbills) and Open Market Operation (OMO) worth N365.1 billion hit the market this week. A breakdown of the inflows showed that N305.7 billion from OMO and N59.4 billion worth of T-Bills would enhance system liquidity during the three-day trading session of the week after the holiday. A report by Afrinvest Securities Limited said the outcome of the Primary Market Auction

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n Abuja-based group on Wednesday purchased expression of interest and nomination forms for Edo State governor, Godwin Obaseki, ahead of the All Progressives Congress (APC) governorship primary election slated for June 22. The group, Obaseki Mandate Forum (FCT), said the purchase of the forms, costing N22.5 million, represents the buy-in and acceptability of majority of Edo people, both at home and in diaspora, who tasked themselves to ensure that their mandate is secured in the candidature of Obaseki for the September 19, 2020 governorship election. Obaseki is aspiring for a second term as Edo State governor on the platform of the APC. Speaking through Nathaniel Momoh,itschairman,thegroup told journalists that the forms further signpost the will of the people and defeat of any kind of imposition plotted or being plotted against the Edo people whohavespokenwithonevoice andhavedecidedtoentrusttheir mandate in the hardworking incumbent governor to continue with his developmental strides. “If almost all previous governors of the state have en-

FRANK ELEANYA

An aeriel view of Delwa IDP camp, Borno.

... Analysts vote for hold ahead MPC meeting (PMA) on Monday would shape activities in the NT-Bills market for the rest of the week. “As we expect stop rates to inch higher across board. Our recommendation is for investors to trade cautiously while taking advantage of attractive opportunities along the yield curve as well as corporate offerings such as available commercial papers,” Afrinvest analysts said. The report revealed that sentiments in the NT-Bills secondary market were mixed albeit with mild bullish bias. Buying interests were witnessed at the start of the week following an inflow (c. N190.0bn) from the Federation Accounts Allocation Committee (FAAC) which

JAMES KWEN (Abuja), IDRIS UMAR MOMOH & CHURCHILL OKORO (Benin)

joyed a second term, some of them despite their not too impressive performance in office, it will be a travesty of justice, a mockery of equity and fairness to deny a man whose tenure has touched every community in the state,” the group said. “For us therefore, it is a momentous event as loyal party members, and lovers of good governance to join the moving train to deliver His Excellency, Governor, Godwin Obaseki on this four plus four (4 + 4) project,” it said. The group said the choice of Obaseki is not just an APC project but also the project of “the market woman in Uselu Market, the trader in Aviele, Council of Chiefs in Ososo, the 18 years and above student in Owan, the fruit trader in Iruekpen, the meat seller in Agenebode, that palmwine tapper in Esan, the cassava farmer in Ikpeshi, and many others who stood solidly behind His Excellency”. Earlier on Wednesday, Obaseki, who is contending for the 2020 governorship ticket of the APC with Osagie IzeIyamu, his former rival at the 2016 Edo governorship election, said he would emerge as the governorship candidate of the APC in Edo State irrespective of the method of primary election the party adopts.

COVID-19 offers Africa lifeline to play in global digital economy, experts say

Maturing OMO, NT-bills to push system liquidity to N955.9bn HOPE MOSES-ASHIKE & ENDURANCE OKAFOR

Edo poll: In show of acceptance, Abuja group obtains forms for Obaseki . . I’l emerge APC governorship candidate, governor assures

bolstered system liquidity (N590.8bn long on Monday). Despite the release of April’s CPI (Consumer Price Index) data which indicated that inflation rose by 8bps to 12.34 percent Y-o-Y, average yield across all tenors dipped 11bps W-o-W to close at 2.2 percent on Friday. Buying interests were observed across the mid and long-term instruments particularly the 27-Aug-20 (-59bps) and 10Sep-20 (-44bps) maturities while yields on the short-term instruments closed flat. Ahead of the Monetary Policy Committee (MPC) scheduled to hold today to discuss monetary policy parameters, analysts do not expect a change in the policy

stance of the Central Bank of Nigeria (CBN). “We expect the MPC to retain all policy rates at current levels while it continues to utilise other strategies to control interest rates. The elephant in the room will be the stability and liquidity of the exchange rate,” Afrinvest analysts said. “That said, we expect the outcome of the meeting to impact activities in the NT-Bills and Bonds market this week.” Ayorinde Akinloye, a research analyst at CSL Stockbrokers, said the ideal scenario would be to see the MPC ease on the MPR in a bid to support growth given slower Q1 growth and projections of a recession.

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he COVID-19 pandemic may have thrown a lifeline to African countries to become active participants in the emerging global digital economy currently dominated by countries in North America, Asia and Europe. Experts who spoke during the BusinessDay Digital Dialogue on Wednesday said although the continent has persistently lagged behind the rest of the world in terms of innovative approach to running the economy and industrialisation, the hard reset forced by the pandemicgivesthecontinentan opportunity to take a different direction than it was used to. And while the government has a role to play, the private sector needstodrivethisnewdirection. The dialogue, jointly organised by BusinessDay and Rack Centre, was anchored by Ngozi Chidozie, partner, managing consulting at KPMG Nigeria. The panellists included Ayotunde Coker, CEO of Rack Centre; Bunmi Akinyemiju, CEO of Venture Garden Group; Omowale David-Ashiru, vice president, global operations, Andela; and Juliet EhimuahChiazor, country manager of Google Nigeria. @Businessdayng

Africa has over 119,454 confirmed cases of COVID-19, more than 3,592 deaths and 48,607 recoveries, making the continent the least affected continent globally. However, the continent has not fared any better economy-wise as countries like Nigeria have been hit hard by the virus. According to the latest data from the National Bureau of Statistics (NBS), the country’s Gross Domestic Product (GDP) rose by 1.87 percent (year-on-year) in real terms, representing a drop of 0.23 percent points compared to the first quarter of 2019 and 0.68 points decline compared to the fourth quarter of 2019. While many industries have beennegativelyimpactedbythe pandemic, sectors like software, media streaming and ecommerce are witnessing boon in their services, Chidozie noted, citing a report. This underscores the need for investments in digital infrastructure in Nigeria. Ngozi Chidozie also highlighted the eight themes that will characterise the journey to a “new reality”.These include ways of working; workforce; digital commerce; supply chain and manufacturing; continuity and resilience; environment and climate change; and debt and globalisation.

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Death amid a great move in Abia State The Public Sphere

CHIDO NWAKANMA

hese are sad times in Umuahia and most parts of Abia State. The gloom over God’s own state flows from open and not-so-open sources. The open one is the painful departure of the Commissioner for the Environment, Solomon Ogunji. Ogunji’s departure has left many citizens in deep mourning. They range from Governor Okezie Ikpeazu through Senator Enyi Abaribe to my childhood friend and kinsman Stephen Nwulu. Nwulu shareda hostel room with the dearly departed, as well as the Otuonu Political movement. It is a painful exit. Ogunji’s death came at a most inauspicious time, though even very advanced age is not an excuse for the visit of Dr Death. Just two weeks ago, Umuahia was in high spirits. Ikpeazu was preparing for the take-off of his most ambitious road project yet. The N27 billion repairs of five major roads in Aba holds the promise of a total reconstruction of Ngwa, Uratta, Port Harcourt, Ohanku and Obohia roads. It had the support of the World Bank,

and Abia State had paid its counterpart funds. What is more? The governor had entrusted the supervision of the signature project to Solo Ogunji, his friend of four decades. The projects ought to take off this week by the initial schedule before death visited. Roads have been a significant concern of all stakeholders of Aba. The poor state of many roads undermines the achievements of Governor Ikpeazu. With each step he takes that deserves accolades, all that critics need to do is point to the roads. Ikpeazu then went all out to get not just the funding but the commitment of development partners to the Reconstruction of Aba Roads project. Stakeholders of Aba remember with pains the challenges of the roads, including the Ndiegoro Disaster of the 1980s. As an Aba boy, Ikpeazu has made fixing the roads a key task such that people no longer refer to those days and the subsequent total collapse of the roads in the city. It is a commitment that he should pursue with all his might. The unfortunate demise of Solomon Ogunji should be a further impetus. The governor should ensure faithful implementation of the works on the roads in tribute to his friend who has lately served Abia State very well. Adieu, Dr Ogunji. Take heart, Governor Ikpeazu, Senator Abaribe and all stakeholders. The other source of sadness is thankfully not morbid, but it has also raised concerns. For several weeks now, Ababased lawyer and engaged citizen Emperor Ogbonna has shuttled between stay in prison at Afara to detention in EFCC custody in Abuja. The story is that Ogbonna defamed Governor Ikpeazu on

social media posts that he did not even originate. He was a trenchant critic of Government House, Umuahia. The Federal High Court granted Emperor Ogbonna bail on the charges brought under the Cybercrimes Act 2015. As the story goes, once Barrister Ogbonna finalised his release papers, the Chief of Staff to the Governor A.C.B Agbazuere led federal officers to arrest him again. This time the offence is supposed to be for criticisms of President Buhari. Agbazuere issued a statement confirming these facts in response to the Nigerian Bar Association. “As Chief of Staff to the governor, who was also mentioned in the press statement, I am compelled to put the records straight that the NBA press statement confirmed that at least Ogbonna has accepted that he re-shared a post in his Facebook page that Governor Ikpeazu went to India and took an oath before a Hindu god to mortgage Abia State. He also made other posts on this. Governor Ikpeazu has never visited India all his life and as a law-abiding citizen, he took recourse to the law instead of self-help. The governor reported this case of cybercrime to the Police and the Police arrested Mr Ogbonna and charged him before the Federal High Court in Umuahia for cybercrime and not terrorism as the misinformation from NBA Aba opines.” Agbazuere added, “I have asked questions and I understand that the said Emperor Ogbonna was now arrested because he had made other divisive and subversive comments on his Facebook page against the President and the Federal Republic of Nigeria referring to

‘

It is an unfortunate turn of events for these Aba folks who walk in the same circles. There is a human angle to the story as Emperor Ogbonna’s wife is heavy with child. I join the many voices that have appealed to the governor to look beyond legalism in this matter

n my article, judging the parts from the whole which centred on the life of the former Chief of Staff, late Abba Kyari, I did promise to write some relationship lessons from the tribute of Geoffrey Onyeama, the minister for foreign affairs. Geoffrey Onyeama was the first person to publicly eulogise Abba Kyari following his demise to the cold hand of death. He, without mincing words, wrote generously about his late friend and extolled the value of the 43years old friendship he shared with Abba. His tribute has many relationship lessons for all and sundry, especially in this age where your network determines your net worth. In one of my online seminars focusing on how to sustain mental health and balance at this time, I have used the word relationship as a vital noun that link many aspects of lifefinance, career, marriage and other callings together. The dictionary defined relationship as to how two or more people or things are connected, or the state of being connected. A relationship has varied meanings and forms ranging from those between family, spouse, ethnic groups, nations, and business organisations. The relationship between Abba Kyari and Geoffrey Onyeama is legendary. Abba will forever live in the life of Onyeama till he breathes his last given his tributes and the emotional connection he must have developed with Kyari. Having a good relationship is key to surviving and even succeeding in any area of human endeavour. It is like the silver-lining that could make or mar our efforts as well as the bedrock upon which our emotional and mental state rest. Take a supportive relationship out of many human equations, and you will see life becoming meaningless to people. Life is ignited on a healthy relationship, be it at work, home and elsewhere. The agitation for self-determination by some tribes in Nigeria is due to failed or overburdened or misman-

aged diversity among the federating nations. From Onyeama’s tribute to his beloved friend, late Abba Kyari, here are few of the relationship lessons to learn. Geoffrey and Abba met in 1977 at Warwick University, United Kingdom. They might have been attracted to each other because they are compatriots. However, religion is a major dividing factor in Nigeria. But these two friends, possibly due to their education and perspectives, became friends with mutual respect. Abba ensured he handed over Geoffrey to some safe hands when Geoffrey moved to Cambridge. For anyone to keep an enduring relationship, religion must be private and respected. If Abba or Geoffrey have been myopic on religion that is common nowadays, they will not have been friends long enough to maximise the mutual benefits available in their friendship. A critical lesson is that a relationship can be birth in any circumstance. Abba and Geoffrey’s relationship with a history of 43years were birthed in an academic environment. Your most trusted relationship could start from the office, or social events or an unusual place like a police station. The key to starting and keeping a mutual connection is to respect each other’s religion. Abba was Geoffrey best man and his first son’s godfather. By implication, he was open-minded to have nothing against being in the church for his friend. This is not rare but scarce given what Boko Haram stands for, its effects and the disposition of some political leaders in Nigeria, especially where ethnicity and religion are guiding appointments into public offices against the dictates of the constitution and national unity. The second lesson is to develop along with your relationship. Imagine Abba was the one who mentioned Geoffrey Onyeama’s name as a nominee to the President. Would he have been appointed and saddled with a portfolio like foreign affairs without requisite experience and qualification? The answer is capital

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no. We must develop with our relationship not to be left behind or limit the benefits it could offer in the future. The starting point is to intentionally go into relationships that could support you in your development and that are relevant to your aspirations. Personal development adds values to relationships if growth as joint and deliberate. You will always see lions around lions not among sheep except during hunting expeditions. So, it would be best if you deliberately build relationships with people going on the same journey with you. This doesn’t mean you should abandon people who are either not on the same route or page with you. I have posited it severally in my coaching engagements that relationship is like a rubber band. A rubber band is flexible. It can be stretched to some limits, but if overstretched, it has no choice than to break. What destroys most relationships is the divergence of inputs and outputs. Geoffrey made a lot of sacrifices in return to Abba’s efforts in the last 43years. For every visit, or event, there are mutual sharing of thoughts, holidays, felicitations, or condolences between them. Abba will make it a task to visit Onyeama whenever he is in Nigeria from his base in Switzerland. He travelled vast distances to attend to his friend’s wedding in Ondo state, followed by a foreign trip for child dedication where he was the godfather. Sacrifice in a relationship no matter how unequal it might be is symbolic, without which the elastic rubber of the tie will be loosened. In any friendship, there is something to give. It could be moral, emotional, or financial support in time of need. The essence is to be able to count on the other person as well. I have seen great friendship destroyed simply because one party has an entitlement mindset and see no need to make a sacrifice for the other even if they can. There is no one that has nothing to offer in return for a good deed. Communication is critical for enduring friendship and relationship. Regular contact

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Nigeria as an Islamic Republic, among others.” It is an unfortunate turn of events for these Aba folks who walk in the same circles. There is a human angle to the story as Emperor Ogbonna’s wife is heavy with child. I join the many voices that have appealed to the governor to look beyond legalism in this matter. We will speak to the challenge of the open manhole that is the Cybercrimes Act 2015. It goes beyond the current case of Okezie Ikpeazu and Emperor Ogbonna. Across the land, government officials are locking up citizens deploying the hydra-headed Cybercrimes Act for what would have been libel cases. Some legal drafter smuggled into the Cybercrimes Act a section on reputation. The Act turned defamation, a tort that still exists in our books, into a criminal offence rather than a civil one. Since then, offended parties no longer go through the civil liberties route of lawsuits. All they do now is involve the police who do the perfunctory duty of taking it through a magistrate’s court and then incarcerating the offender. Kemi Olunloyo spent more than a year without trial. The National Assembly should consider it for urgent review with the removal of some elements. The Cybercrimes Act 2015 is a utility hole in the middle of an expressway. Anyone can drive into it, even in broad daylight. Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@ gmail.com.

Between Abba Kyari and Geoffrey Onyeama-5 relationship lessons

Positive Growth with Babs Babs OlugbemI helps build bonds, but no matter how irregular it is, it must be mutual and connected to create a memory of friendship. Geoffrey and Abba share a socialist idea of a society which reflected in their discussions of politics and policies since 1977. The centre point of communication is to find what both parties have a mutual interest in and explore ways of doing things along the area of common interest. Without connection, a relationship is like a train that will never leave the train station because the track to ride on has long been removed. Assumptions are the termites of relationships, according to Henry Winkler’s famous quote. To keep a relationship the way Abba and Onyeama did requires the ability to identify the similarities and the differences between both parties. The similarities are the strengths of the links and must be intentional nurtured to increase bond and mutuality. The difference is the tiny line, the terminates known as the boundaries. No relationship will survive if the boundaries are not identified and respected. The limitations could be religion, beliefs, culture, and some multitude of habits and routine. It is the personal space that must not be invaded and disrespected for the relationship to thrive. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Babs Olugbemi FCCA, the Chief Responsibility Officer at Mentoras Leadership Limited and Founder, Positive Growth Africa. He can be reached on babs@babsolugbemi.org or 08025489396.

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The Epicentres of Coro-politics: Still on Rivers state… The other side of Governor Ayade

ik MUO

ost of us would remember what happened years ago, (2003+) in the days of Amaechi, when the Federal Government almost established a parallel government in River State, with Joseph Mbu, the Commissioner of Police as the alternate governor and chief enforcer. That was during the era of free-for-all war and “attempted coup” in the Rivers State House of Assembly. It got so bad that the nascent APC directed its members in the National Assembly to boycott executive bills, including the 2014 budget, until the presidency resolved the Rivers’ crisis. That was in the aftermath of the formation of nPDP, when Amaechi and 6 other rebel-governors joined the APC, were immediately celebrated as progressive change-masters, and all their sins were washed away and everything became anew( Ik Muo, From nPDP to nAPC and then what? 14/5/18). Then, Amaechi had accused Mbu of colluding with the presidency to undermine his government. This is 2020, the APC is now in power at the centre (with Amaechi as one of its stalwart) and another Mbu Scenario is rearing its ugly head You all recall how the Commissioner of Police, Mustapha Dandaura, forgot that he was a federal employee and brazenly joined Wike in the onslaught against the federally empowered Caverton. At the height of the Caverton saga, the unfortunate cop became a victim of the high-wire intrigues, got redeployed to the Force Headquarters, as the provost and was replaced with Joseph Mukan. The first act of the new COMPOL was to establish a “Technical

Committee to ensure the movement of agricultural products and other essential items into Rivers State”. In effect, the FG has established a parallel Task Force in River State, where Wike is the GOC of the state taskforce. Is this history repeating itself? Is this the era of another Mbu, who proudly declared himself the “tamer of Amaechi”? It is an ironic twist of history that the first one was Joseph Mbu and this one is Joseph Mukan and that Frank Mba, the Police PRO during that period is also the current Police PRO! And our politicians have been behaving true to character. The River State caucus in the NASS (peopled by PDP), asked the President to disband this taskforce because “This development is sour and highly confrontational not only to the authorities of the Rivers State Government but to her citizens and residents. The APC, through its South-South Zonal Secretary, David Okumagba, asked the president to “carry go”, because disbanding the federal taskforce, would “plunge Rivers residents and indigenes into further economic hardship and psychological trauma!” Both parties are responding to the same matter and in the interest of the same residents and citizens! So, now, there are two task-forces in PH. The State Task Force, directly commanded by Governor Wike himself and the Joint Task-Force, commanded by ComPol Mukan. One interesting thing is that the state and federal units are both “forces”. So, what happens when an irresistible force confronts an irremovable force? This is a federation and ideally, the federating units have their powers and limits. But Nigeria is the only centralised federation in the world where the FG is the author and finisher of everything. In this case, a state “boldfacing” for the FG is like nza the tiny bird, whom under the influence of alcohol, challenges its chi to a wrestling contest. This is not a normal situation, even now when everything is a new-normal. Our people advise that it is better to uproot that evil tree, which, once it bears fruits, people MUST die, before it bears fruits. Our people also advice that he who

wants to separate a fight should step in during the preparatory push-me-I-push -you-I think an evil tree is growing in River State, I think the two-fighting are almost past the push-push stage Meanwhile, our people say that whenever the witch cries at night and the baby dies in the morning, it becomes necessary to count our teeth with our tongue! There is a report that EFCC is seeking to investigate some River State officials over some suspicious cash withdrawals between 2015 and 2018 and that the RVSG has reminded them of a subsisting order of perpetual injunction (lawyers go chop now!), explicitly stating that EFCC cannot probe the accounts of River State and its officials. To those of us who ate not initiated, this is a weird injunction! However, EFCC should do its job and RVSG should let it do its job but this strange injunction needs to be sorted out first. There are other matters arising for last week’s article. The first is that the manager of the hotel, which Wike demolished recently for flouting the lockup and lockdown order has tested positive to the disease of the moment. This may or may not be true but that does not change my views on that highhanded action. Secondly, the Benue index case, our longest “serving” Coro patient, who complicated matters by refusing to cooperate with medics at Makurdi and Abuja, Susan Okpe, has been “discharged from detention”, after 58 days, almost two months in the Isolation Centre. I do not know whether a test has been carried by World Health Organisation as she demanded. Finally, Anambra State Government, has, in consultation with Delta State, locked up the Niger Bridge to minimise the influx of “illegal immigrants” into the state. The “gates” are opened up at the periods agreed by the two governments. I do not know whether Wike consulted the Governor of Abia State before closing their inter-state boarders

‘

We continue with our discussion on the political dynamics of this interesting war against oga- Coro, which we started last week. However, we have to start with some matters arising from last week’s intervention, were we mostly focused on Governor Wike’s unique corowar strategy. There have been certain strange developments in PH in the past one week

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

Other matters: The other side of Ayade Politics is a vehicle for acquiring power so as to serve the interest of the society. In Nigeria however, politics is a

Dr Muo is of the Department of Business Administration, OOU, Ago-Iwoye

Rejoinder – Compelling case for withdrawal from employees RSA

Oguche Agudah

“There are no short cuts to anywhere worth going” – Beverly Sills

e feel the need to respond to an opinion by Olusegun Vincent published on BusinessDay’s site sometime in May titled “Compelling case for withdrawals from employees RSA”, calling for withdrawals from employees Retirement Savings Account (RSA) in order to boost the local economy in view of the COVID- 19 pandemic. Whilst we understand the reasoning behind such calls, we believe that the thinking shows a lack of understanding of the Contributory pension Scheme (CPS) we run in the country. Furthermore, we see this as an opportunity to continue on our education series to various stakeholders, because we’ve realised that a number of people do not have a thorough understanding of the pension industry in Nigeria. The article in question essentially calls for withdrawals from employees’ pension accounts in order to boost local consumption. Specifically, the article alludes to the fact that “we have a poor consumer credit system and have no choice than to use what we have to get what we want. Since credit opportunity is not available and scarce, it is better to leverage pension savings to augment Government stimulus” – The folly of this thought process is one of solving a long-term problem with a short-term solution that creates another long-term problem. While we acknowledge the hardship that has been brought upon many citizens because of the economic fallout of the COVID-19 pandemic, this is likely to be a temporary setback for most. The

economic hardship of living in retirement without an adequate pension to rely on will be more devastating than whatever individuals have faced in the past month or two. Poverty in retirement is often compounded by advanced age, health challenges and the risk of longevity which could put a retiree in economic hardship for decades. The more long-lasting solution is to ensure that we build a robust and effective private credit and social security system in Nigeria that rides on the back of effective national identity. It is also important to distinguish who can or cannot benefit from the savings in the pension scheme. The article in question also alludes to the fact that only about 8.41 million Nigerians (12 percent of the labour force) currently contribute to the pension pool. By our own records, only about half of these numbers are active and consistent contributors to the scheme. As of today, the largest segments of the contributors into the pension scheme are the formal sector workers in both public and private sector. These are mostly workers in stable and salaried employment. These individuals are arguably the least affected by the economic fallout of the COVID-19 pandemic. For those who are affected in this category, there is already a mechanism to access a portion of their retirement savings (25 percent) if they have been out of work for 4 months. There are already talks to shorten these 4 months qualification period. The question is: when 25 percent of pension assets are withdrawn and the next recession comes, what happens?

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Economic cycles come and go, and viewing pension savings as a first line of defence is very dangerous. Beyond endangering the long-term viability of the scheme, it puts the long-term financial security of the contributor in jeopardy. It was just a couple of months ago that there were calls for compulsory withdrawals from the pension funds for investment in infrastructure. As expected, there are now calls for withdrawals from pension funds to boost private consumption in the light of the COVID-19 pandemic. It seems the pension funds are an easy and soft target that removes the need to make the tough and structural choices we need to make as a nation. It is pertinent to note upfront that the Contributory Pension Scheme (CPS) we now run was established in 2004 after the passing of the Pension Reform Act of 2004 (which has since been replaced by the Pension Reform Act of 2014). This scheme is one of the signature achievements and success stories of reform since Nigeria returned to democratic rule in 1999. The scheme provides a uniform pension system for employees in the private sector who, hitherto, were largely not covered by any pension arrangements. It also significantly improved the pension experience of public sector workers who were in the past covered by an unfunded defined benefit scheme marred with fraud, stress and significant difficulties for retirees. Since the enactment of the pension reform act, we have witnessed enviable growth and stability of the system. The level of disclosure and transparency from operators and the regulator is very

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DIRTY game, in which people adopt door-die strategies for self enrichment and aggrandisement. At times they go beyond self to other levels of “myonisation” (my relations my town, my state, my tribe, my church, my friends). In this equation, the people, who are at the centre of the political calculus, are not even mentioned, not to think of being considered. When they mention the people, it is tokenistic, to play to the gallery or to fulfil all righteousness. Even people who are good as individuals, get irreparably contaminated once they join the political industry. That is why most Nigerians, apart from those who have access to the crumbs, hold politicians in disdain. Last month, Ayade signed an “executive order” (that is the in-thing nowadays) on no-facemaskno- movement in Cross River state and then went ahead to distribute facemasks, gratis, to his people, saying that, “As governor…I can’t, at this difficult moment when you are asking people to stay at home, also task them to put on masks at a cost. We as a government have to find a way to reduce the burden on the people.” I noted that compassionate statement, gave it as a model to the PTF-COVID (Other Matters: KITA, by-fire-by- force and the Management of Covidity: Business Day, 7/5/20) and life went on. Recently, (21/5/20) Ayade wept on National TV as he bemoaned the hardship which some government agents inflicted on the people through obnoxious taxation. He was so concerned that he established an anti-tax task force, made up of pastors, asking them to ensure that the poor are not taxed out of existence. He declared that it was the greatest injustice to tax people “who don’t have scholarship for their children, who struggle to have security in their small businesses and struggle to get water with their boreholes… struggle with generators and government is providing almost nothing”.

high. Furthermore, the accumulated savings in the scheme is unrivalled by any other pool of private long-term capital in the country. Unfortunately, like many things in Nigeria, individuals and organisations seem to be “penalised” for doing things the right way, in a disciplined, professional and transparent manner. We seem to forget that pension contributions are not the only deductions from workers monthly salaries. Every month, by law, a certain amount of money is supposed to be deducted from the Nigerian worker’s salary – some of those deductions (8 percent of salary) go to their retirement savings accounts (RSAs) as pension contributions, others go the National Housing Fund, while others go to the government as tax. The pension deductions, in the current form, only began in 2005 while the other deductions have been occurring for longer than the pension deductions. However, unlike the Contributory Pension Scheme, there is limited disclosure and transparency regarding the total value of funds deducted, or capital accumulated, thus far. It is easy to point to the pension assets that have grown to over N10 trillion in just 16 years. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Agudah is the CEO Pension Funds Operators Association of Nigeria (PENOP).

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Ben Ayade, his tears and the social contract CHRISTOPHER AKOR

ometime last week a video emerged on social media showing the governor of Cross River state, Ben Ayade, inaugurating what he calls an antitax agency to enforce the tax exemptions already contained in the state’s tax code for the largely poor people of the state struggling to make ends meet. To make the comedy complete, he made the point of shedding some tears to show his utmost concern for the poor people who struggle against all odds, without government help, amenities or even basic infrastructure, to survive but who are still being subjected to taxation. Speaking amidst tears, the governor said: “I never knew that five years as governor, there would still be people living in thatched houses in Cross River. I almost cried because I knew how prepared I was but it didn’t end the way I dreamt for the state. I wish God would intervene because I really wish I could help. It’s very painful.” The governor listed the group of people, who should be exempted from payment of tax in the state to include “all Okada riders, taxi drivers, airport taxi drivers, small saloon owners, small catering and restaurant points popularly called mama put. All those people who sell basic things struggling to earn a living, they have been exempted today from paying tax. We have exempted them because it is better for me as governor to rather task my brain, than to tax my people.” Apparently, many Nigerians were moved by the governor’s tears and his

concern for the poor people of his state and have been showering praises on the governor on social media, calling on other governors to emulate him. Aside the tendency among some Nigerians to view the social contract between them and the state only from a rights-based approach – a point I will return to later – it shows a worrying trend by public officials to resort to populism to hide their incompetence and mismanagement while appealing to public sentiments. Aside the obvious fact that the creation of the anti-tax agency was a useless and wasteful move - creating a whole new agency to enforce a part of the tax code, which is the remit of the state’s Board of Internal Revenue – it is a hypocritical move meant to hoodwink people and win public sympathy for his abysmal failure in governance. For those who may not know, it was about the fourth time the governor was crying publicly since he became governor in 2015, not counting his various crying episodes during the campaigns that helped deceive the people of the state to trust him. Unknown to those praising the governor, on January 17, 2017, the governor also shed tears as he made the show of announcing the same thing he announced last week – abolition of all forms of taxation for low income earners in the state. Three years down the line, the same people the governor exempted from taxes were still not only being taxed but were being burdened by multiple and illegal taxation from different agents of the government. According to Agba Jalingo, the recent announcement was a verbatim repetition of the governor’s orders in January 2017 complete with tears. But as usual, many Nigerians cried along with him. In 2018 the governor also broke down in tears on the occasion of signing his nonsensical N1.3 trillion budget of “Kinetic Crystalisation” into law. The most comical part of the whole show was that Cross River’s entire revenues –both from federal allocation and in-

ternal tax revenue for 2018 was a mere N52 billion. Of course, the budget was as useless as it was comical. Not even 10 percent of the budget was implemented. Sadly, Ayade has turned budget exercises and even governance in his state into a comical show. In 2017, he gave the state a “Budget of Infinite transposition.” Of course, in 2018, it was “Budget of Kinetic Crystalisation.” In 20019, it was a N1.043 trillion “Budget of Qabalistic Densification.” Still in 2020, it is another N1.143 trillion “Budget of Olimpotic Meristemasis” which, according to the governor, was to “shift Cross River from the third world to the first world.” As usual, the state House of Assembly, like all others in Nigeria, except Lagos where the governor has no control of the state assembly, are in the pockets of the governor and would indulge the governor’s wishes no matter how outlandish. For a state where the net federal allocation has not exceeded 50 billion in years and where the annual internally generated revenue is less than N20 billion, it is clear the governor’s grammatically bombastic budgets are not worth even the papers on which they were written. No wonder the government has never released the details of the budget to the public till date. But I digress. In August 2016 and again in March 2017, the governor shed tears to show solidarity with the displaced people of Bakassi and promised to do everything to ensure that they are resettled. Till date, nothing has been done to resettle the people. It was all a show. It is a shame that Ben Ayade, who claims to be a Professor of Environmental Microbiology, has turned governance into a farcical show of shame where he equivocates rubbish everyday as government policies and demands absolute and unquestioning obedience from everyone in his state because of his so-called academic credentials. He is particularly noted for his intolerance of criticisms and abhorrence of accountability.

‘ It is a shame that Ben Ayade, who claims to be a Professor of Environmental Microbiology, has turned governance into a farcical show of shame where he equivocates rubbish everyday as government policies and demands absolute and unquestioning obedience from everyone in his state because of his so-called academic credentials

Disaster management gaps: Recipe for incessant building collapse in Nigeria

hile countries all over the world including Nigeria are currently battling with the deadly COVID-19 pandemic, there are other environmental disasters throwing punches on the faces of Nigerian citizens on a regular basis. One of these environmental disasters is the incessant building collapse. The cases of building collapse have become a common phenomenon in recent years in major cities of Nigeria. A year hardly passes by without some cities in the country experiencing series of building collapse cases. It has become one of the prominent and devastating disasters which have resulted into loss of many lives while several families are rendered homeless and traumatised. Currently, there seems to be no official statistics on cases of building collapse in the country since independence. However, the most notable and devastating building collapse cases in the country include the collapse of the guest house of the Synagogue Church of All Nations in 2014 that killed at least 115 people of which 84 of them were citizens of South Africa. It was also reported that the country recorded 27 cases of building collapse in 2015 with no fewer than 175 deaths recorded. In similar vein, more than 54 cases of collapsed buildings were recorded in 2017 across the country. The fight against building collapse suffered a setback in 2019 as the country recorded not less than 43 incidents within the year. Top on the list was the collapse of a three-storey building at Ita-Faaji area in Lagos Island killing about 20 persons including primary school pupils. The latest collapse in Owerri was the third so far in

2020. These and many more have characterized Nigerian cities as epicentre of building collapse. Drawing from the knowledge acquired in building technology courses while in the university, a building should be able to last for 99 years with the exception of accidents, terrorist attacks and natural hazards in climes with standard procedures for building construction. However, it is a different experience in Nigeria as there are recorded cases of building collapse during and after construction. This could be attributed to human error. Human error can further be viewed from individual and government perspective. Individual error is directly linked to bypassing of basic professional procedures of getting building plan approval, engaging quacks in building construction, and use of substandard building materials, illegal conversion or alterations to existing structures and dilapidating structures and lack of coordination among built environment professionals in the country. The advent of building developers in construction industry who are expected to engage the services of certified professionals as consultants but failed to do so, largely due to an unhealthy profit motivation further compounded the issue of building collapse in the country. For instance, buildings with foundation for bungalow structures that are later elevated into three or even four storeys without any development permits from the relevant agencies to ascertain whether the foundation is fit to carry such loads. This scenario clearly depicts reasons for frequent cases of building collapse cases in major cities of Nigeria. On the part of government, ineffective mon-

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itoring of building development as a result of lack of manpower and insufficient equipment to operate, recruitment of unqualified technical officers in local authorities; unnecessary delay in development approval process and deployment of incompetent staff in an inappropriate position are all to blame for the persistent building collapse in Nigeria. Other challenges include corruption, undue political interference and the lack of public awareness of the existence of building regulations by the relevant agencies. The various disaster management agencies that are supposed to be championing the course of proactive approach of preventing building collapse in the country are busy distributing relief materials to disaster victims in haphazard manner. This process over the years has also been characterised with series of allegations of relief materials been diverted by the officials in charge for their personal use. Drawing from the above cited developments, the citizens, built environment professionals and government must act accordingly to prevent and mitigate the occurrence of incessant building collapse in Nigeria. The starting point is the sensitisation of citizens/building developers by the emergency management agencies and professional bodies in the built environment on the need to obtain planning permit and engage professionals in construction of their buildings. Professionals in the construction industry should maintain their integrity, code of conducts and professional ethics, and work in accordance to practices and procedures laid down by the standard form of building con-

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Now, to the question of the social contract. Like I have argued on previous occasions, Nigerians seem to have a rights-based approach to the social contract – one that sees itself more as receiving from, and not giving to the public domain. Ken Amaeshi, Adi Bongo and Godson Ikiebey and Neil McCulloh demonstrated in a recent study about corporate tax responsibility in Africa show, even a significant proportion of business entities would like to premise their payment of tax on the government’s ability to fulfil its own part of the social contract. Perhaps that is why most Nigerians on social media were swayed by the governor’s theatrical performance. But Nigerians need to understand the interplay of rights in a typical social contract. The social contract typically confers rights and privileges on each party – the government and the governed and there are implicit consequences for the abdication of those duties. A government that abdicates its duties risks losing support and ultimately removal. For a people that abdicate their duties, it risks having a government that will not be accountable to them in any way. The situation in Nigeria was that since the discovery of oil, the military regimes have championed a gradual disintegration of the taxation system in place in Nigeria. It was not coincidental. It was done to remove the last vestiges of accountability in the system. Consequently, Nigerians too, who were too happy to be relieved of their tax duties, lost the rights to fully demand accountability from their government. So, payment of tax is not so much a burden as a right to participate fully in the social life of the state and to demand the full rights due them. And the sooner we begin to view the social contract in that light, the better for us, because it is only then we will begin to take back our country and insist it be governed according to the agreed set of principles of good governance and equality of all.

Olasunkanmi Habeeb Okunola tracts. In line with this, the professionals must also operate within their area of competence. In order words, Architects are not trained to supervise construction work and builders are not expected to design building plans and structural details. Furthermore, all relevant building regulating bodies should ensure constant and continuous education and development of its members as this will help them update their skills and knowledge. Government of various states in Nigeria should also prioritize resourcing/funding all the agencies in charge of building development with capable and qualified professionals to ensure implementation of building code regulations in their various states as this would go a long way towards effective and efficient building development in the entire country. Equally important is the provision of modern facilities such as drone and GPS for effective monitoring and enforcement of building regulations. Finally, strict punishment such as heavy fine, forfeiture of property and jail terms should be enforced and implemented on erring building developers, landlords, and built environment professionals found contravening building control regulations or engaging in activities and unethical practices that could lead to the collapse of buildings in the country. Okunola is a scholar in disaster risk reduction and community resilience with cross-cutting research and programme experiences on climate change adaptation and inclusive education in sub-Saharan Africa.

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BUSINESS DAY

Thursday 28 May 2020

Editorial Publisher/Editor-in-chief

Frank Aigbogun

Nigeria’s lockdown easing must protect lives and livelihood Communicate, calibrate, implement and enforce the measures

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

Bashir Ibrahim Hassan

he persistent surge in the number of COVID-19 patients in Nigeria should prompt a proactive response to redesigning lockdown easing strategies aimed at protecting lives and livelihoods. While it is almost impossible to permanently halt economic activities given the peculiarities in Nigeria, we must seek to reinvent ways to also curb and ultimately stop the spread of the deadly virus. As at midnight, the 25th of May, 229 new COVID-19 patients were reported in fifteen states, raising the total in Nigeria to 8,068. Although confirmed fatalities account for a meagre 3 percent and discharged cases roughly 29 percent of total cases, each new infection increases the risk of losing another precious life. That COVID-19 poses a grave threat to Nigerians is evident in the data above. However, despite the accelerating numbers and the healthcare challenge it poses, the federal government

thought it wise to ease restrictions with caution as economic pain becomes more acute for households and firms. The question it must answer is, how can we effectively curb the spread of the virus while trying to fix our economy? In a report, “Reopening and re imagining Africa: How the COVID-19 crisis can catalyse change”, consultants at McKinsey & Company suggest a “three-step process to reopen economies in a way that safeguards lives and livelihoods”. According to the report, the process starts with defining a tiered set of local response measures, from the least restrictive to the most restrictive. Each tier would include measures to protect both the general population and high-risk populations (the elderly and people who have weak immune system), and would also specify which sectors can open and operate. In the Nigerian scenario, a close look at the Nigeria Centre for Disease Control’s (NCDCs) situation report reveals those between 20 and 60 years account for the largest

ratio of total cases; not the elderly who probably have no business going out. Those who are more likely to get infected is expected given they form the bulk of working age population. They have to make ends meet and ensure their daily survival, hence, highly exposed to contracting the deadly virus. The wearing of face masks has been mandated, a limit placed on the number of passengers in public transport, measures put in place to decongest market places by creating rosters for sellers of essential and non-essential goods in a bid to curb the spread of the virus; the enforcement of these measures remain a challenge. Market places are still congested with little respect for social distancing measures, some public transporters still overload their buses as all it takes to go scot-free is a bribe to police officials at checkpoints, most partially obey the face mask order and of course walk freely despite the fine introduced, policemen extort drivers who flout the 8pm curfew leaving pedestrians to walk freely. Also according to McKinsey,

regions can be triaged by both outbreak severity and health system readiness. To achieve this, the NCDC must increase testing capabilities across regions in states. Accurate data on the severity of outbreaks could inform unique strategies on curbing the virus outbreak in these regions. This will also better inform the federal and state governments on the status of healthcare systems in these regions. Finally, continuous monitoring of progress and adherence is required. It is important to note that applying these steps is not a one-time process to move beyond the pandemic. Ongoing capabilities are required to manage both the public health response and the economy through a prolonged recovery. Considering the bleak economic outlook of Nigeria and concerns about rate of spread of the COVID-19 virus, Nigeria must adopt smart approaches while reopening its economy in a calibrated way that brings key industries back into operation while ensuring safe ways of working.

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COVID – 19: Tier 1 banks’ deposits up by 24% amid covid 19 pandemic ISAAC ESOWE

mid the global health crisis that took its toll on the Nigerian economy, the deposits of the tier 1 banks – Access Bank Plc, First Bank of Nigeria (FBN), Guaranty Trust Bank (GTB), United Bank for Africa (UBA) and Zenith Bank mobilized from customers and other financial institutions grew by 24 per cent from N18.6 trillion in Q1 2019 to N23 trillion in Q1 2020. Banks deposits are common occurrence in which customers deposit funds into their accounts, and if it not withdrawn; banks use the funds to create additional funds through investments or loans to other customers. The growth recorded shows a significant level of resilience, indicating a positive shift to bank deposits during the lockdown. The five big banks which control not fewer than 70 per cent of the total banks’ deposits continue to dominate

Sources: Banks Financials, BRIU

March 30th 2020. This represents a 20 per cent increase when compared with the preceding year 2019. Growth in the bank’s deposits can largely be attributed to the acquisition of the defunct Diamond Bank, as that move increased the bank’s customer base and profit for the reference period. A breakdown of the bank’s deposits shows that term deposit, a type of deposit account held at financial institution where money is locked

Source: Bank Financials, BRIU

the banking space amid the recent global pandemic that disrupted economic and financial services sectors. Access Bank recorded the highest deposits from all tier 1 banks to the tune of N5.6 trillion for the period ended

up for period of time usually on a short-term basis with maturities ranging from one month and few years, constitutes the major chunk of the bank’s deposits accounting for 33 per cent of the total deposit. It is followed by the demand de-

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posit, a type of account where deposited funds can be withdrawn at any time, accounts for 31 per cent of the total deposits, while money deposit amounts to N1 trillion and represents 19 per cent of the bank’s deposits for the period ended March 2020. The savings deposits and trade related obligations to foreign banks accounted for 15 per cent and 2 per cent of the total deposit for the reference period respectively. FBN had a 29 per cent growth in its deposits from N4.2 trillion in March 2019 to N5.4 trillion in March 2020. Customers’ deposits of N4.18 trillion, up by 6.8 per cent ytd (December 2019: N3.91 trillion). Savings deposits accounted for 33 per cent of the total deposits for the period which is the most among other classes of deposits – current deposits, 27 per cent; term deposits, 22 per cent, and domiciliary 18 per cent in the same period, and N12.2 billion were deposited to electronic purse. Findings show that the bank recorded an impressive growth in its key financial ratios. Commenting on the financial results, UK Eke, the Group Managing director said: “The current situation demonstrates the importance of the deployment of appropriate technology and effectively validates our recent

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investment in enhancing our capacity in technology innovation and digitalization of our products and services” A review of the GTB’s financial results for the first quarter of this year shows a positive performance across all key metrics. The bank’s deposits rose by 14 per cent from N2.5 trillion in Q1 2019 to approximately N2.9 trillion in the corresponding quarter in 2020. Breakdown of the bank’s deposits shows that the current deposits had the largest share accounting for 55 per cent of the total deposits; saving deposits, 26 per cent; term deposits, 15 per cent;

strength of our businesses. We are appropriately positioned to cope with emerging economic realities, as it is reflected in our first quarter results” Financial results of many businesses showed a downward trend due to the recent pandemic that almost halted businesses. UBA, among others, shows positive appreciation in its books of account judging by the performance of its key financial ratios. Total deposits increased by 27 per cent from N3.6 trillion in Q1 2019 to N4.6 trillion in Q1 2020. Retail deposits accounted for 72 per cent of customers’ deposits while cost -of-funds moder-

Source: Bank Financials, BRIU

other deposits from banks, 3 per cent, and money market deposits slipped by 45 per from N9.9 billion in Q1 2019 to N5.4 billion in first quarter of 2020. Commenting on the financial results, Segun Agbaje, Managing Director/CEO of Guaranty Trust Bank Plc said: “These are very difficult and uncertain times, not just for the financial services sector and the economy as a whole, but also for hundreds of millions people around the world whose lives and livelihoods have been put at risk by the COVID-19 pandemic. We know the impact may sustain for months to come but we remain positive that, by staying nimble and continuing to build on the

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ated to 3.3 per cent. Commenting on the performance of bank during the referenced period, Kennedy Uzoka, the Group Managing Director/CEO expressed satisfaction, despite the challenging business environment. “We are pleased with our top and bottom lines in the first quarter of 2020”, Uzoka said. A review of the unaudited financial statement of Zenith Bank shows a 25 per cent increase in customers’ deposits to N4.46 trillion in Q1 2020 from N3.57 trillion in the corresponding quarter in 2019. Customers’ deposits increased by 5 per cent when compared to N4.26 trillion recorded in December 2019.

Thursday 28 May, 2020

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

NSE All Share Index

Week open (15-5–20)

23,871.33

Week close (22-5–20)

25,204.75

Percentage change (WoW) Percentage change (YTD)

Market capitalisation

NSE Premium Index

The NSE-Main Board

N12.441 trillion

2,083.86

N13.136 trillion

2,191.80

5.59 -6.10

5.18 3.57

NSE ASeM Index

NSE 30 Index

NSE Banking Index

NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index

962.20

762.45

124.54

411.55

218.40

1,691.48

1,012.32

906.95

1,019.87

1,027.78 1,094.07

282.33

762.45

302.77

127.06

415.23

229.09

1,826.64

1,168.75

989.59

7.24

2.02

5.99 -11.45

0.00 0.00

6.45 -7.11

-15.15

0.99

0.89 -29.96

NSE Lotus II

4.89

7.99

-12.74

-0.44

NSE Ind. Goods Index

NSE Pension Index

15.45 8.66

9.11 -6.12

Nigeria’s Fixed Income, Currency market turnover decreases by 34.92% to N16.70trn ...FX, OMO bills remain most actively traded products Iheanyi Nwachukwu

urnover in Nigeria’s Fixed Income and Currency (FIC) markets for the month ended April 30, 2020 was N16.70trillion, representing a month-on-month (MoM) decrease of 34.92percent (N8.96trillion) from the turnover recorded in March 2020 (N25.66trillion), FMDQ Securities Exchange report shows. Year-on-year (YoY), it increased by 2.02 percent (N0.33trillion) from the turnover recorded in April 2019 (N16.37trillion). Foreign Exchange (FX) and OMO bills remained the most actively traded products, jointly accounting for 72.10percent of the total FIC market turnover recorded in April 2020. Total number of executed trades reported on the Bloomberg E-Bond Trading System in April 2020 was 4,474, representing a MoM decrease of 52.45percent (4,935) against the number of executed trades recorded in March 2020 (9,409), driven by the decrease recorded across all executed trade types on bills and FGN Bonds. Further, this represented a YoY decrease of 61.32percent (7,092) against the number of executed trades recorded in April 2019 (11,566). The general decrease in market activities is attributed to the Covid-19 pandemic and the associated exit by foreign portfolio investors, as well as the lockdown directive to curb the spread of the virus. Total FX market turnover in April 2020 was $11.36billion (N4.38trillion), representing a MoM decrease of 60.73percent ($17.57billion) from the turnover recorded in March 2020 ($28.92billion; N10.73trillion). This was driven mainly by the decline in economic activities and foreign capital inflows due to the

Coronavirus (Covid-19) pandemic, resulting in a decrease in FX supply, exacerbated by the temporary cessation of the periodic FX supply by the Central Bank of Nigeria (CBN) through its intervention sales in April 2020. FX market turnover by trade type shows that all categories recorded a MoM decrease in April 2020. The Member-Client category accounte d fo r 46. 16p e rc e nt ($8.11billion) of the total MoM decrease in FX turnover in April 2020, representing the highest decrease across all trade categories. Additionally, analysis of FX market turnover by product type indicated that FX Spot turnover and FX Derivatives turnover recorded MoM decreases of 79.76percent ($11.12billion) and 43.03percent ($6.45billion) respectively in April 2020. In the OTC FX Futures market, the near month contract (NGUS APR 29 2020) with an outstanding notional amount of $1.52billion matured and was settled, whilst a new far month (60-month) contract, NGUS APR 30 2025 was introduced at a contract rate of $/N413.36.

The total notional amount of open OTC FX Futures contracts as at April 30, 2020 stood at c.$15billion, re p re s e n t i n g a 3 . 2 3 p e rc e n t ($0.47billion) increase on the value of open contracts as at March 31, 2020 (c.$14.53billion), while the total notional amount of OTC FX Futures contracts traded to-date stood at $45.35billion as at April 30, 2020. The CBN Official Spot US$/N exchange rate remained flat at $/ N361, as at April 30, 2020 compared to the rate as at March 31, 2020, while the Nigerian Naira depreciated against the US Dollar at the Investors’ and Exporters’ (I&E) FX Window by $/N1.75 ($/N385.55 as at March 31, 2020) to close at $/N387.30 in April 2020. In the parallel market, the Nigerian Naira depreciated by $/N35 to close at $/N450 (March 31, 2020 - $/N415), increasing the spread between exchange rates in the I&E FX window and the parallel market by 112.90percent (N33.25) to N62.70 from the spread recorded in March 2020. In the primary market, average discount rates on the 91-day, 182-day and 364-day T.bills declined further in April 2020 to 1.99percent, 2.81percent

and 4.05percent from 2.40percent, 3.59percent and 4.95percent recorded in March 2020 respectively. Similarly, average marginal rates for the 5-year, 15 year and 30-year FGN Bonds decreased to 9percent, 12percent and 12.50percent from 10percent, 12.50percent and 12.98percent respectively recorded in March 2020, as FGN Bonds were oversubscribed by an average of 459.45percent at the April 2020 FGN Bond auction. As at April 30, 2020, total T.bills outstanding value remained flat at N2.65trillion; OMO bills outstanding recorded a MoM decrease of 4.79percent (N0.50trillion) to N9.94trillion, while the total FGN Bonds outstanding value also recorded a MoM increase of 1.80percent (N0.17trillion) to N9.64trillion from N9.47trillion as at March 31, 2020. Liquidity in the secondary market for T.bills declined further in April 2020 as trading intensity fell to 0.01 from 0.08 in March 2020, with T.bills turnover decreasing MoM by 85percent (N0.17trillion) to N0.03trillion due to investors holding their T.bills investments to maturity. Trading intensity for OMO bills decreased marginally to 0.75 in April 2020 from 0.76 in March 2020, the first MoM decrease in 2020 due to the MoM decrease in OMO bills turnover by 5.54percent (N0.45trillion). Trading intensity for FGN Bonds also decreased MoM to 0.16 in April 2020 from 0.26, as FGN Bonds turnover also decreased MoM by 34.85percent (N0.84trillion) to N1.57trillion, all as a result of lower activity due to the Covid-19 pandemic and its associated impact on financial markets globally. However, trading intensity for bills (T.bills and OMO bills combined) and FGN Bonds increased YoY to 1.20 and 0.16 respectively in April 2020, compared to 0.30 and 0.08 recorded in April 2019. In April 2020, bills within the 6M

- 12M maturity bucket remained the most traded across all tenors on the sovereign yield curve, accounting for 76.46percent of the total Fixed Income market turnover. FGN Bonds within the 20Y – 30Y maturity bucket remained the most traded debt capital market securities, accounting for 5.40percent of total fixed income market turnover. Weighted average yields on shortterm and medium-term maturities increased by 256 basis points (bps) and 754bps respectively in April 2020, due to sell-offs by foreign portfolio investors seeking to exit their Nigerian investments, while the weighted average yields on longterm maturities decreased by 86bps in April 2020. Additionally, inflation-adjusted yield remained negative across all short-term securities (1M - 3Y), while medium to long-term securities (that is 5Y - 20Y) excluding the 5Y and 15Y tenors, recorded positive inflationadjusted yields in April 2020. Total turnover in the Money Market segment decreased MoM and YoY by 26.88percent and 27.75percent respectively to N3.02trillion in April 2020. The MoM decrease in Money Market turnover was driven by the MoM decrease in the Repurchase Agreements/Buy-Backs segment which declined by 24.04percent (N0.94trillion) to N2.97trillion in April 2020 from N3.91trillion recorded in March 2020 Tu r n o v e r i n U n s e c u r e d Placements/Takings recorded a MoM decrease by 76.19percent (N0.16trillion) to N0.05trillion in April 2020, and YoY by 44.40percent (N0.04trillion) from N0.09trillion recorded in April 2019. Average over night (O/N) and open buy back (OBB) rates both decreased by 552bps and 531bps to close at an average of 5.74percent and 5.15percent respectively in April 2020 from 11.26percent and 10.46percent in March 2020.

can help enhance an entrepreneur’s business visibility, validation, and trust. When interested investors fund your campaign, it enhances interest and trust in your project. This demonstrates that potential customers believe in your idea or vision and have a real financial interest in sharing and empowering your success. Ultimately, this helps entrepreneurs learn the importance of customer retention. 4.Accessibility, affordabilty and efficiency

Crowdfunding is streamlined by using re gulate d plat fo r m that suppor ts crowdfunding. Crowdfunding platforms usually do not charge a setup fee and will only take a small percentage of funds raised. Leveraging a crowdfunding platform to reach a broad audience allows entrepreneurs focus on building the business rather than trying to figure out how to find big investors, get an introduction and present your pitch.

NASD Plc Investor Education: Benefits of Crowdfunding to MSMEs

rowdfunding has a lot of benefits to the entrepreneurs who use it, whether looking to raise funds for achieving business goals, expansion or gather helpful feedback from potential customers and backers. In this week’s edition, we shall discuss the accruable benefits to MSMEs who seek to raise capital via Crowdfunding. 1. Sourcing for capital to bring ideas to fruition Every idea requires resources to

become a reality. Before crowdfunding, entrepreneurs faced a long and difficult road to secure funding. Their options included applying for bank loans, searching for government grants, pitching venture capitalists and angel investors, borrowing money from family members and friends or tapping into their savings. Crowdfunding, however, provides a method to obtain the funds needed to launch an idea quickly and with the support of an engaged community. www.businessday.ng

2. Gaining insights from experts The traditional path from concept to market is time consuming and expensive. Crowdfunding is often a more efficient way to gather feedback and find valuable marketing insights. In many cases, insights from prospective Investors helps entrepreneurs to refine their ideas, think through their strategies and proffer solutions that make a bigger impact. 3. Customer retention A good crowdfunding campaign

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Thursday 28 May, 2020

BUSINESS DAY

Investor Helping you to build wealth & make wise decisions

Risks to sustaining stocks rally remain Iheanyi Nwachukwu

hough over N694billion was b o o ke d a s ga i n by Nigerian stock investors in the trading week ended May 22, the risks to sustaining this record in future still exit. Nigerian equities dealers reassembled for trading yesterday Wednesday May 27 after the public holidays to mark the Eid-al Fitr celebration. While many investors may choose to continue their bargains by taking advantage of some cheap counters, others may resort to taking profit on some other tickers that have gained substantially in recent times. The All Share Index (ASI) closed the last trading session of the review week higher by 1.80percent to 25,204.75 points, from week-open position of 23,871.33 points. From weekopen low of 12.441trillion, the value of listed stocks increased to N13.135trillion. Taking a cue from the improving events in the global space as well as the positive market breadth posted on the last trading session of last week, market watchers at Vetiva Securities expect the market to continue on its upward trend, “though at a slower rate upon resumption from the holiday”. While the market maintained its bullish run, 55 equities had appreciated in price last week, higher than 32 equities in the preceding week. Eight (8) equities depreciated in price, lower than 28 equities in the preceding week, while100 equities remained unchanged, lower than 103 equities recorded in the preceding week. “The question on the mind of investors includes whether

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators? Let us know and investor will help you investigate and report back. E-mail: iheanyi.nwachukwu@businessdayonline.com

Economy and Market

Neimeth profit growth excites investors Iheanyi Nwachukwu

the uptrend is sustainable and what exactly is driving this recovery”, said Lagos-based research analysts at United Capital plc in their recent note. In the analysts opinion, the recovery in share prices of listed stocks on the Nigerian Stock Exchange “is driven by: Rebalancing in the oil market which has resulted in a 94percent rebound in oil prices from $18/barrel to about $35/barrel within a month; increasing indications that governments around the world will reopen their economies regardless of the anxiety around Covid-19; cheap market valuation of high quality stocks; sustained dividend declaration by corporates – translating into attractive dividend yield amid poor rates on T-bills; and sizable market liquidity”. Coronavirus (Covid-19) pandemic successfully nullified a decade of global oil demand growth and the recovery remains slow lately. Many foreign and domestic stock investors have continued to price-in this risk amid others considering their near term impact on the Nigerian economy and businesses. In the latest report from the National Bureau of Statistics

(NBS), the overall consumer price index - a measure of the average change in prices over time of goods and services purchased by consumers - was up 12.34percent year on year (y/y) in April 2020 from 12.26 percent y/y in March 2020. The International Monetary Fund (IMF) predicted a negative Gross Domestic Product (GDP) of -3.4 percent for Nigeria in 2020, due to the ongoing disruptions caused by the Covid-19 pandemic. “In our opinion, risks remain on the horizon due to a combination of the increasing number of Covid-19 cases in Nigeria and weak economic conditions. “Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”, said equity research analysts at Cordros Capital. Oil prices have plummeted more than 40percent so far in 2020. The recent rebound was due in part to efforts by the Organisation of the Petroleum Exporting Countries (OPEC) and allies to reduce supply. OPEC+ is reducing supply by a record 9.7 million barrels per day from May 1.

Onyema highlights resilience of Nigeria’s Capital market amidst Covid-19 s corporations all over the world battle the impacts of the Coronavirus (Covid-19), the support of securities exchanges for capital market ecosystems has become even more relevant in building sustainable businesses and stimulating growth across Africa. The Chief Executive Officer, The Nigerian Stock Exchange (NSE) Oscar N. Onyema, shared some of the efforts of the NSE in this regard during the African Stock Exchanges panel session at the Brand Africa 100 Launch in commemoration of Africa Day 2020, organised by IC Events, Brand Leadership and Africa Practice on Monday, May 25, 2020. Onyema, alongside the CEO, Johannesburg Stock Exchange, Leila Fourie and

Investor’s Square

CEO, Nairobi S ecur ities Exchange, Geoffery Odundo, discussed the impacts of Covid-19 on their respective economies. The panelists expressed similar experiences in terms of volatility of the market, future expectations of issuers and the critical need for partnerships across Africa to boost productivity and project the continent’s best brands. Speaking to the impact of COVID-19 on Nigeria’s capital market ecosystem, Onyema said, “Since we transitioned to seamless remote trading and working in response to COVID-19, we have seen a lot of activity across diverse asset classes. Investors have enjoyed dividend payouts in double digits in the equities market; attained relative safety in the fixed income market ; and are reaping strong returns in www.businessday.ng

alternative asset classes like the Newgold ETF. On the part of the issuers, while there continues to be activity in the primary market, we foresee an increased inclination from governments and corporates to raise capital in the domestic market, particularly through bonds and secondary market issuances.” During the launch, Brand Africa 100 revealed the results of its latest survey and ranking of the most admired brands across Africa. In the 2020 edition, Dangote took home the prize of the Number 1 Most Admired Company Listed on the NSE; Guaranty Trust Bank bagged the Number 1 Most Admired Financial Institution in Africa; and brands like Maltina, Jumia, and Glo ranked among the top 100 brands in Africa

eimeth International Pharmaceuticals Plc has grown its h a l f- y e a r p ro f i t after tax by 938.5 percent as increasing market share and cost management strategies lifted the healthcare company to its best performance in four years. Investors reacted with a scurry for Neimeth’s shares, triggering a demand-driven share price appreciation that has seen the stock within the best-performing stock at the Nigerian stock market with capital gain of 79.2 percent in recent weeks. Interim report and accounts of Neimeth for the six-month period ended March 31, 2020 released at the Nigerian Stock Exchange (NSE) showed significant growths across key performance indicators with growing sales and operating efficiency driving operating profit by 225.28 percent. Total turnover crossed a record N1 billion mark with 19.4 percent growth to N1.165 billion by March 2020 compared with N975.98 million recorded in comparable period of March 2019. The top-line growth was driven by increased sales in its domestic Nigerian market. The company recorded growths across its two business segments of pharmaceuticals products and animal health products with the animal health products

Matthew Azoji

showing strong prospects for the top-line with 897.5 percent growth during the period. Gross profit rose by 22.74 percent from N450.74 million in 2019 to N553.26 million in 2020. While the company’s continued push for the market saw a relatively modest increase in marketing and distribution expenses, administrative expenses dropped by 10.84 percent to N228.71 million in March 2020 as against N256.52 million recorded in comparable period of 2019. Profit after tax leapt by 938.5 percent to N56.6 million by March 2020 compared with N5.45 million by March 2019. Earnings per share thus jumped from 0.29 kobo in March 2019 to 2.98 kobo by March 2020. Neimeth’s share price opened this week at the Nigerian Stock Exchange (NSE) at 86 kobo per share, representing an increase of 79.2 percent on market value per share of 48 kobo recorded by the period ended March 31, 2020. The price appreciation

might not be unconnected with increasing prospects of dividend payment in the current business year; after shareholders of the company at their annual general meeting earlier in March 2020 approved a balance sheet restructuring that would see the write off of accumulated losses and primed the company for dividend payment from net profit. Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Matthew Azoji, said the half-year results built on steady growths witnessed in recent periods and further demonstrated that Neimeth is firmly on an upward growth trajectory. He said the results showed early gains of the company’s f i ve - ye a r st rat e g i c p l a n noting that the company would vigorously expand and reposition its businesses to cement its position as a leading player in not only Nigeria’s healthcare industry but also in the wider West African region while simultaneously ensuring good returns on investment to shareholders. According to him, the strategic direction for 20202024 would see the company implementing bold and gradual expansion initiatives including the upgrade of its factory at Oregun, Lagos state; development of new manufacturing facilities and expansion of the company’s marketing drive to Sub-Saharan Africa (SSA).

Oando says over 21,000 Lagosians to benefit from its employees food relief initiative

n support of the efforts of both the Government and corporate entities, the employees of Oando Plc, popularly known as the #HumansOfOando have conceived an innovative solution, The Aggregator Platform (TAP), with the long term goal of ending hunger and alleviating poverty across the nation, one community at a time, through structured intervention. The employees of Oando identified that despite the financial contributions and efforts made by the public and private sector as well as Non-Governmental Agencies (NGOs) in feeding the less privileged there is still a huge gap between those who are in dire need and those who are eventually reached and fed. Since going live at the end of

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March the #HumansOfOando alongside other donors, through the TAP website taptoreachall.org have raised over N25 million and signed up nine NGOs including Lagos Food Bank, Project Ark, Child Protection Network, Grocedy, Lekki Food Bank and Abraham’s Tent to name a few, with an intent to sign one more NGO. With funding from TAP, these 9 implementing partners will feed over 24,000 Lagosians

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across 16 of the most deprived communities over a one month period. As at Wednesday, May 20, 2020 about 21,000 people had already been fed with the balance 3,000 to be reached and fed by the end of May. The Covid-19 pandemic has made it glaringly obvious to all that the poverty crisis cannot be solved by the Government alone. Despite the social palliative measures being implemented by the Government, food relief materials being provided by NG Os and financial contributions from private sector players it still doesn’t seem to be enough. For the employees of Oando, COVID-19 brought home the realisation that every single individual who has the means, must play an active role in alleviating poverty in Nigeria.

Thursday 28 May 2020

BUSINESS DAY

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Thursday 28 May 2020

BUSINESS DAY

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Thursday 28 May 2020

BUSINESS DAY

Markets + Finance

‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Zenith General Insurance’s underlying earnings surges BALA AUGIE

f Zenith General Insurance Compamy Limited was a quoted company, then its shares would been rallying following the announcement a few days ago that underlying earnings improved. The insurer’s financial leverage and capital metrics remains stable; also, it is one of the first Insurance companies to have met the recapitalisation requirements of the National Insurance Commission (NAICOM) by recapitalising its share capital from N3 billion to N10 billion. A significant improvement in working capital, efficient underwriting capacity, and higher investment returns makes it easy for the insurer to surmount head-

Kehinde Aborisade, managing director/CEO, Zenith General Insurance Company Ltd

winds as the industry is beset by a mirage of challenges. For the year ended December 2019, Zenith General Insurance’s gross premium written was up 17.26 percent to N16.14 billion as at March 2020, from N13.77 billion as at March 2019. Gross premium income followed the same growth trajectory as it increased by 18.39 percent to N15.52 billion in December 2019 as against N13.11 billion the previous year. “We are re-affirming our mission statement that Zenith General Insurance Ltd exists to ensure peace of mind and also create value to people in a world of uncertainties,” said Kehinde Borisade, the Managing Director/CEO the company. “This is evident in our strong financial performance showing improvement across the board through increased premium income, underwriting profits and investment income despite the economic headwinds witnessed in various sectors of the economy,” said Aborishade. Zenith General Insurance has an efficient underwriting capacity, and there is no threat to as its combined ratio (CR) improved to 70.0 4 percent in December 2019 from 78.81 percent the previous year. A CR ratio below 100 percent indicates that the company is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums. A double digit growth in premium income and contributions from investment returns resulted in an underwriting profit of N4.06 billion as at in the period under review, which represents a 46.07 percent increase from 2019’s N2.77 billion. Despite a low yield environment, Zenith General Insurance saw a 2.34 percent uptick in investment income

to N3.63 billion in the period under review, from N3.55 billion the previous year. Last year, the central bank lenders to stop participating in its Open Market Operations (OMO) auctions on behalf of local corporates and individuals, that sent rates on the Nigerian Treasury Bills (T-bills) crashing. Zenith General insurance has translated top line impressive performance into bottom line growth as pre-profit margin increased to 41.28 percent as at December 2019 as against 33.37 percent. Similarly, profit before tax spiked by 16.27 percent to N3.67 billion in the period under review from N3.16 billion as at March 2020. The insurer meets its obligation to policy holders, which validates its strong balance sheet and liquid position. Total claims expenses stood at N4.30 billion in the period under review, as the insurer spent less on underwriting and claims expenses in generating premium income. Claims expense ratio fell to 27.74 percent in the period under review from 39.41 percent the previous year. Zenith Insurance operates in a difficult and challenging environment. These hindrances includes: cultural beliefs and practices that do not support insurance; poor claim management experience of many policy holders; inadequate skills in some critical areas for instance actuaries; relatively poor showing of the sector in the capital market Little wonder the industry’s contribution is less than one percent, as penetration is abysmally poor when compared to other Sub Saharan Africa countries. To help bolster the weak capital base of many of the players relative to the risk they underwrite, the National Insurance Commission

BD MARKETS + FINANCE Analyst: BALA AUGIE www.businessday.ng

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(NAICOM) has asked them to hike their capital bases or have their operating licenses revoked. The revised paid-up capital requires life Insurance business operators to raise its capital from N2 billion to N8 billion; General business from N3 billion to N10 billion, while that of Composite business has been jerked up from N5 billion to N18 billion. For Reinsurance business, the revised minimum paid-up share capital has also been reviewed upward from N10 billion to N20 billion. Despite the protracted economic downturn, Zenith General Insurance’s liquidity position remains adequate. The insurer’s shareholders’ fund increased by 4.1 percent to N27.35 billion as at December 2019 as against N26.36 billion the previous year. Total assets were up 5.89 percent to N43.69 billion in the period under review as against N41.26 billion the previous year. The growth in total asset was largely driven by a 12.07 percent and 4.62 percent uptick in cash/cash equivalents and investment securities held to maturities to N11.14 billion and N23.74 billion as at December 2019 from N9.94 billion and N22.9 billion the previous year. The outbreak of the coronavirus pandemic has damped industry outlook as experts expect volume of transaction to reduce and record claims as a lockdown policy by government prevented customers from using their vehicles. Brent crude oil fell from $70 a barrel at the dawn of 2020 t0 $20 as of May, but a recent rally in oil has moved the price above $3o. The external reser ve foreign reserve has shed over 12 percent from $38.54 billion on January 1,2020, to $33.63 billion as of April 23, 2020.

Thursday 28 May 2020

Retail &

BUSINESS DAY

consumer business Luxury

Malls

Companies

Deals

Spending Trends

Supply disruptions, structural challenges push trade sector into deeper contraction …bleak outlook in coming quarters BUNMI BAILEY

he trade sector, Nigeria’s second largest sector by output contribution, contracted sharply in three months through March, battered by the earliest effects of global supply disruptions combined with unresolved structural issues challenging the sector pre-pandemic. Productivity in the sector fell by 2.82 percent in the first quarter of 2020, the worst performance in three years, according to recently released report by the National Bureau of Statistics (NBS). Trade ended the previous year in recession, having contracted 0.63 percent and 0.38 percent in 2018 and 2019 respectively. “The sector’s underwhelming performance could be attributed to significant disruption in global supply value chain which led to sudden halt in trade,” said

Damilola Adewale, a Lagosbased research economist. Adewale maintained that structural issues such as unfavourable foreign exchange policies, weak consumer demand, inflationary pressure and border closure are major headwinds tormenting the sector’s growth prospects. In real terms, trade’s contribution to GDP was 16.08 percent, lower than the 16.86 percent it represented

in the previous year, but higher than the 15.99 percent recorded in 2019 fourth quarter by –0.78 percentage points and 0.09 percentage points respectively The sector, which comprises of wholesale and retail trade been on a negative territory but on a marginal level over myriad challenges ranging from unpredictable government policies to weak consumer demand.

“Most of our trading partners were on lockdown in the first quarter of the year so it affected movement of goods in and out of the country. So, it was just normal to see that the significant contraction there,” Ayorinde Akinloye, a consumer analyst at CSL Stockbrokers said. China, Nigeria’s top trading partner shut down its economy in the previous quarter following a surge in

the pace of confirmed cases of the virus, leading to prolonged Lunar New Year Holiday as authorities strived to slow the spread. The impact of the action was profound on the economy as its GDP contracted by a whopping 6.8 percent three months through March. Figures from China’s General Customs Administration showed a 14 percent drop in China-Africa trade volume between January and March, reflecting a modest decline in trade activities at global scale. Analysts say the short term outlook for trade is bleak amid global and domestic economic uncertainties occasioned by the pandemic. “The impact of global supply disruption would be more profound on trade in coming quarters,” Adewale said, positing that the upward review of exchange rate for Customs duty and the continued border protection policy stance of the

Federal Government will push performance downwards. According to him, it is most likely for trade to maintain negative growth trajectory till year end. The general economy of Nigeria slowed to its lowest level in more than a year of 1.87 percent in the first quarter of 2020 compared with growth of 2.55 percent in the previous quarter, a development that means negative per capita GDP- which implies that Nigerians are growing poorer as the impact of the coronavirus pandemic took a toll on both oil and the non-oil sectors of the economy. The slower growth in the economy was reported in both the oil and the nonoil sector, as both sectors eased from 6.36 percent and 2.26 percent, in the previous quarter, from to a growth of 5.06 percent and 1.55 percent respectively, in Q1 2020, the Abuja-based NBS said on its website.

Spending Trends

Could movie streaming be the way forward for cinemas in Nigeria? BUNMI BAILEY

he global outbreak of COVID-19 is taking toll on movie cinemas worldwide as businesses shut down in an attempt to stem the rate of the infections. The social distancing measures aimed to combat the pandemic has made the movie business, a part of the creative sector to experience an unprecedented setback, as movie production and release have been stopped while cinema goers have been restricted from visiting. According stakeholders in the film industry, homebased media are likely to benefit from the new norms due the COVID-19 realities. Chioma Ude, Founder,

African International Film Festival, said that this is the time to start thinking of the bigger picture and seeing things differently by being innovative. “There is a growing culture for streaming movies and whether we like it or not streaming will hit the market soon. The I.T and the creative industry will strive in this COVID-19,” Ude further said. Streaming is the continuous transmission of audio or video files from a server to a client. In simpler terms, streaming is what happens when consumers watch TV or listen to podcasts on Internet-connected devices. With streaming, the media file being played on the client device is stored remotely, and is transmitted a few seconds at a time over the Internet. The last 10 years have www.businessday.ng

ushered in a rapid progression of at-home entertainment as Netflix, Hulu, Disney Plus, HBO Now, and more rack up millions of subscribers. As more people are forced to stay at home to try to curb the spread of the novel COVID-19, the concept of a bored, cable-

cutting consumer searching for things to constantly watch for weeks on end has become a reality. The film industry is one of the fastest growing sub- sectors of the Nigerian economy in terms of business opportunities, employment generation and earnings and

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the cinema is seen as a social medium and an integral part of the leisure sector. Earlier this year, Lai Muhammed, the minister for information and culture said Nigeria has become the power-house of African creative industry with the film industry being one of the main outputs. He said the industry is considered as a veritable platform for the propagation of cultural values, development initiatives and aspirations. The Nollywood industry was once confronted by piracy and couldn’t curb the menace until the cinema business became an attractive investment opportunity for investors. In 2019, Nigerians across major cities spent N3.7 billion on top 20 movies (weekends) at several @Businessdayng

cinemas across the country, according to Cinema Exhibitors Association of Nigeria (CEAN). But Patrick Lee, Chairman of CEAN believes that it is difficult to stream movie on demand as there is the uncertainty of whether it is a profitable business or not. “We don’t know whether streaming is a profitable business or not. Nigeria has not developed the level of infrastructure and customer base in terms of streaming. But for cinemas, we believe that we still have the platform that is profitable for businesses when they release their movies,” Lee added. In other countries, studios being forced to make tough decisions about which movies will be delayed and which will be sent to streaming and on-demand platforms.

Thursday 28 May 2020

BUSINESS DAY

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

The President as a repented democrat

EBUN-OLU ADEGBORUWA, SAN

lthough it has been a long winding road, we are closer now to our destination than when we began. Like a lone ranger on a mission, the President started a seemingly silent ‘revolution’ to grant autonomy to the legislature and judiciary of the States. This is a commendable development of the Muhammadu Buhari government, coming in the midst of its many challenges. It started with the 4th Alteration to the Constitution of the Federal Republic of Nigeria, which was initiated by the Saraki-led National Assembly. For sometime, there has been nationwide clamour for autonomy for the State Houses of Assembly and the judiciary of the States, from the stranglehold of the executive arm of government. Cases were filed in court, in one instance leading to an epochal judgment in the one filed by human rights activist and former President of the Nigerian Bar Association, Dr. Olisa Agbakoba. But the executive only obeyed the said judgment in breach, leading to a nationwide strike by the Judiciary Staff Union of Nigeria (JUSUN). As a way of overcoming this monumental constitutional challenge, a Bill was passed by the National Assembly, granting financial autonomy to the judiciary and the houses of assembly of the States, in 2017. In June 2018, the President assented to the said Bill and it became part of the laws of the Federal Republic of Nigeria. Even after that, the state executives would not budge. The President then decided to set up a 22-man Committee known as The Presidential Implementation Committee on the Autonomy of State Legislature and Judiciary, with the Honourable Attorney-General of the Federation as the Chairman. The mandate of the Committee was to ensure the full implementation of the 4th Alteration to the Constitution and thus free these important sectors of our democratic experiment, from the stranglehold of the executive arm. Last week, the President signed an executive order, to give effect to the 4th Alteration.We may gloss over this, or even deride the President for seeking to arrogate powers of the Constitution to himself, as some have done, but it takes patriotism and selflessness, for a sitting President to grant full autonomy to the other arms of government, in Africa.

Ebun-Olu Adegboruwa, SAN

The primary responsibility of the legislature under the Constitution is that of making law for the peace, order and good governance of Nigeria. It may clash with the executive arm at times, in the course of its oversight functions and during public hearings meant to prevent corruption and waste. The interface between the executive and the legislature also comes to fore during hearings for the confirmation of nominees for certain offices. In the recent past, this has generated huge controversies which escalated to a boiling point, at a time. Thus, it is expected that the executive should be in tandem with the legislature, for smooth administration and efficiency. But this was not so in the past, as a noticeable cold war had ballooned beyond control, between Aso Villa and the Green and Red Chambers led by Senator Saraki. The National Assembly was able to rescue itself from the grip of the executive by passing a law creating the National Assembly Service Commission to run its internal affairs and also to draw its budget directly from the Consolidated Revenue Fund. That has not been the case with the houses of assembly of the various States however, leaving them under the direction and control of the governors in those States. So that in most cases, the state legislature is more of an appendage of the executive, to the detriment of the people and indeed our democratic experience. But this administration decided to put an end to this. The judiciary on the other hand,

Hogan Lovells launches

INSIDE “A Perspective Podcast Series,” 21

is empowered by the Constitution to entertain and determine disputes between persons and persons, between persons and government and between governments and governments. The conflict margin is more on the executive-judiciary angle because of the obvious and excessive impunity of the executive arm, especially the law enforcement agencies. The general thinking of most governors is to cage the courts and starve the judiciary of funds, as a means of rendering it ineffective, so that lawlessness can thrive unchallenged or where challenged, unchecked. Most governors are therefore not comfortable with a viable and independent judiciary, which they dread as a veritable tool in the hands of the people, to challenge and overturn all manner of excesses. Through the office of the Attorney-General and Commissioner for Justice of the various States, the executive governors have perfected the style of holding the judiciary captive, starving it of needed fund and infrastructure. So, in most cases, the judiciary is forced to go begging cap in hand, for funding. And assuredly as we all know it, he who pays the piper calls the tune. This was the very ugly scenario before the ‘revolution’ of the 4th Alteration to the Constitution, seeking to free the legislature and the judiciary, from the very firm grip of the executive. Why should it be tagged a revolution? By the bold and innovative provisions of the Financial Autonomy of State Legislatures and State

Are retrospective employment policies enforceable in Nigeria?

Judiciaries (Fourth Alteration, No.4) Act of 2018, the road was cleared for the funding of the Houses of Assembly and Judiciary of the States, directly from the Consolidated Revenue Fund of the States. The Act then amended the existing section 121 (3) of the Constitution by stating that “any amount standing to the credit of the House of Assembly of the State and the Judiciary, in the Consolidated Revenue Fund of the State shall be paid directly to the said bodies respectively; in the case of the judiciary, such amount shall be paid directly to the heads of the courts concerned.” In order to actualize the letters of the 4th Alteration, the President set up The Presidential Implementation Committee, for the enforcement of the provisions of the 4th Alteration Act, comprising seasoned professionals and other stakeholders. The Presidential Implementation Committee on Autonomy of State Legislature and Judiciary (PICASOLEJ) was consequently inaugurated and charged to set the ball rolling. It later came up with a 12-point communique, some of the highpoints of which are as follows: • The 4th Alteration Act has been observed more in the breach than in compliance. • There are various levels of minimal compliance in various States but all fall short of the expected compliance, as budget performance across 36 States of the federation show that while the least allocations to state judiciary in the past three years was 0.6 per cent of the state budgets, the entire allocation was 4.89 per cent. • The governors as heads of the Executive Arm of Government should begin full implementation of the financial autonomy granted the legislature and the judiciary. • They should equally adopt the budgeting model operating at the federal level where the sum due to the judiciary and the legislature are captured as first line charge in the budget laid before and passed by the Legislature. • The budget proposal of the legislature and judiciary should be defended before the relevant committees of the legislature. • The total sum, both Capital and Recurrent, approved in the Annual Budget of the state, should be released monthly on a pro–rata basis by the Accountant General of the State, directly to the heads of the legislature and the judiciary, and heads of Judicial Service Committee or Commission. • The budgeted sum, Capi-

Medical Malpractice in Public Health Emergencies: A review of medical 22 response to covid-19 in Nigeria

tal and Recurrent, howsoever described, should be released to the Judiciary to be spent by the Judiciary on the projects, programmes and capital development of the Judiciary, including recruitment and training of personnel. And so for the Legislature. • The current practice in some states where appropriated recurrent expenditure due the judiciary and legislature in the budget were released to the judiciary and legislature and the capital components are warehoused in the Executive should be abolished. The executive order signed by the President is critical because it goes to the very root of the many problems associated with justice administration and the seeming docility and ineffectiveness of state legislatures. No matter the quantum of the amount of money released, the judiciary should have the power to determine its budget and spending, to prioritize its commitment level, all targeted at delivering justice to the people. The same goes for the State legislatures, to be more proactive, in deploying legislation to address the myriad of problems plaguing our land, especially in empowering the States to deliver durable infrastructure, to the people, starting with electricity. There is something missing in this ‘revolution’ however, as you cannot give autonomy with one hand and withhold it with the other. Judicial independence cannot be measured by funding alone, but also in the willingness to obey and abide by all decisions and orders of the courts. The integrity of the judiciary is better achieved through willful obedience to the orders and directives of the courts. In this regard, so long as judges are living under some mortal trepidation of persecution on account of their decisions, as long as we still require persuasion to get the executive to obey court orders, then the judiciary cannot be said to be independent, no matter the amount of billions of naira thrown at the courts. My charge to the President is to extend the executive order to include compulsory obedience to all lawful orders issued by the courts and to prohibit any form of harassment or intimidation of judicial officers, however subtly it may come. When this is achieved, then we can truly say that the judiciary is autonomous and independent, and the ‘revolution’ can then become true and real.

The legal Sector and Post-Covid-19: The front burner issues

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Thursday 28 May 2020

BUSINESS DAY

INDUSTRYFILE

LegalBusiness

Hogan Lovells launches “A Perspective Podcast Series,” featuring conversations on industry trends in Africa THEODORA KIO-LAWSON

lobal law firm Hogan Lovells has launched “A Perspective Podcast Series”, which features the Head of Hogan Lovells Africa Practice, Andrew Skipper, conducting open interviews with some of Africa’s most influential leaders, both on and off the continent. The podcast series is part of the law firm’s aim to strengthen its footprint in Africa. In the first episode of the podcast, Andrew Skipper speaks with Emma Wade-Smith OBE, the UK Trade Commissioner for Africa, who shares her thoughts on coronavirus, the gender lens and why the UK is 100% committed to Africa. During this session, she reinforces the importance of the trade partnership between the UK and Africa and their strategy to inspire more companies to invest in Africa. In her words, “I believe no one else in the world has the range and diversity that we have in the UK, not to mention the fabulous African diaspora community that exists across the UK. We also do good business in the right way and

Andrew Skipper, Head of Hogan Lovells Africa Practice.

it’s not just about making money, which companies must do otherwise they don’t exist, but it’s all about doing good business in the right way. This involves supporting the creation, the development and the enhancement of Africa’s talented people in local workforces and helping to build local supply chains.”

However, the current COVID-19 pandemic has led to increased uncertainty regarding the future of millions of businesses, mostly SMEs, in Africa. The UK government has therefore announced efforts to help African government and African businesses to see what more can be done. “The reality is that no one is

entirely sure about how this is supposed to play out. What we are doing in the British government is that we are looking at all the different angles we have, all the levels of relationships we have and how we can make sure that every single aspect of what we do in Africa is pulling in the same direction and really helping African governments and African businesses survive, recover and strive”, Emma continues. The UK government has recently stepped up efforts to enhance its working relationships with African nations, particularly with three of the continent’s biggest players, South Africa (the UK’s biggest African trading partner), Nigeria and Kenya. The British prime minister has reinforced the importance the United Kingdom places on Africa, their long-term partnership and their intentions to continue to grow UK-Africa trade relations. The second episode of “The A Perspective Podcast Series” features one of Africa’s leading industrialists, Kuseni Dlamini, Chairman of Massmart and Aspen Pharmacare. In this interview with Andrew Skipper, Dlamini discusses putting employees first in a crisis, staying nimble as a business and the opportunities of The

African Continental Free Trade Area (AfCFTA). The podcast series continues with Director of Chatham House’s Africa Programme, Alex Vines, who shares his thoughts on Africa’s response to COVID-19, the implications of the pandemic on UK-Africa relations and the importance of amplified African voices on the international stage. The fourth episode of the podcast features Andrew speaking to Ed Marlow, Managing Director of Global Markets at Credit Suisse, who shares his insights on prospects for medium-term growth, supply chain opportunities and the role of development finance institutions (DFIs) in a post COVID-19 world. The latest podcast features Andrew interviewing Lucy Quist, International Business Leader and Author about her new book ‘The Bold New Normal’. Hear from one of Ghana’s brightest exports as she reveals her own experience in mandatory quarantine and shares her observations on the key lessons that African governments can learn from Covid-19 and translating that into post-pandemic policies, the important role of the youth in African leadership and why we need to “rebrand Africa”.

Jackson, Etti & Edu unveils firm’s sector focus areas ONYINYE UKEGBU

t a recent event, Jackson Etti & Edu, a premiere fullservice law firm with offices in Lagos, Abuja, and Accra, Ghana six sector focus areas which covers its services to diverse clients. The event, JEE in Dialogue 2020, themed, “Maximising Business Opportunities & Positioning for Growth”, opened with a welcome address by Chinyere Okorocha and a Keynote Address by Okechukwu Enelamah, Founder & Chairman, Africa Capital Alliance & the former Minister of Trade & Investment. During his address, acknowledged the worldwide impact of the COVID-19 virus on the economy, and the reactions of the market as they conceptualize ways to remain sustainable. He stated that public-private partnerships where the government, provides the requisite regulatory environments, stakeholders invest in fundamental sectors, and service providers such as the legal industry provide accurate advisor y services will result in palliative and economic outcomes that can be sustainable. During the first panel, captioned, “Infrastructure Deficit, Investment Opportunities and Barriers to Growth”, the panelist explored the key role that reforms play in maintaining growth, what reforms the Nigerian government should be focused on. Suggestions included a sector-by-sector

Partners of the law firm, Jackson Etti & Edu at the recent ‘JEE in Dialogue 2020’

concentration on infrastructural developments, rural-urban migration issues, funding options for infrastructural investments, project merits of a profitable investments; as well as incentives for infrastructural investments in the country. Panelists included. Dr. Temitope Oshikoya, Founder, Nextnomics Advisory, Robert Grant, Senior Vice President, FCMB Capital Markets Ltd, Ope George, Head of PPP, LASG, Biodun Adedipe, Chief Consultant, BA Associates as well as two JEE sector heads, Taiwo Adesina and Kunle Soyibo. The next panel, on “Roadmap to Business Growth and Successes” discussed the relevance of strategy in managing changes within the business environment. The panelists shared the various ways in which strategy was effected in their organisations including its use as tool to address previous challenges. It was agreed that strategy was important in specifying direction and imbuing stakewww.businessday.ng

holders with a sense of shared purpose. Given the ever-evolving business environment, the most effective strategy is one that is adaptable, easily-digested with the same meaning at all levels of the organization. The discussants were Dr. Deji Amund, (Head of IB Compliance, Stanbic IBTC); Yinka Ogunsilere (CEO, Orange Island Development Company), Dr. Adebola Akindele (GMD, Couteville Business Solutions Limited) and the panel was moderated by Koye Edu, managing partner, Jackson Etti & Edu. The final panel on “Leveraging Technology for Growth and Inclusion” opined that technology was an equalizer and should be approached as a defining factor for the rapid economic development of the nation especially in the current pandemic climate. The current pandemic having pushed the need for innovative technological solutions to the forefront, organisations must adapt or die.

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The panel was moderated by Ngozi Adreribigbe, JEE’s Technology, Media & Entertainment Sector Head and had a lineup of erudite panelists: Bukola Oladapo, Financial & Transactions Adviser, KPMG; Olubayo Adekanbi, Chief Transformation Officer, MTN Nigeria; Clare Omatseye, Founder & MD, JNC International; Ola Brown, Founder & CEO Flying Doctors Nigeria and Odunayo Eweniyi, COO/Co-Founder Piggy Vest. The event also included a special presentation on Regulation & Compliance: A Sine Qua Non for Sustainable Development in Corporate Organisations anchored by Obafemi Agaba; a Fireside Chat with Mr. Walter Akpani, CEO of Providus Bank and a special guest address by the Rt. Hon. Femi Gbajiamila, Speaker, Federal House of Representatives. In unveiling the firm’s sector focus areas, Chinyere Okoracha noted that typically, law firms offer @Businessdayng

services to the public within designated practice areas, corporate commercial, dispute resolution, real estate, among others. Jackson Etti & Edu, however, in response to the dynamic business environment has opted for an innovative approach to providing services by opting for a sector focused service. In attending to clients, she said, it became more imperative to understand the industry within which the clients are operated, and what commercial issues affect certain decisions. As a result of the switch, the firm is better able to speak to the challenges affecting their clients as well as issues governing investments and developments in the nation, Africa and the world. Upon review of their clientele, the Nigerian economy and the world economy, and the type of investments coming into Africa and they chose 6 sectors with the following sector heads: Obafemi Agaba, Fast Moving Consumer Goods (FMCGs); Taiwo Adesina-Energy & Infrastructure Sector; Kunle Soyibo & Okey Onyemedu, Financial Services sector; Ngozi Aderibigbe, Technology Media & Entertainment sectors; Wale Fajola, Public Sector and Chinyere Okorocha, Health & Pharmaceuticals sectors Six sector-specific booths were set up around the hall, attendees were invited to visit them to learn more about how the sectors can be of service to their particular interests and Koye Edu, gave the concluding remarks.

Thursday 28 May 2020

BUSINESS DAY

LABOUR &INDUSTRIAL RELATIONS

LegalBusiness

Are retrospective employment policies enforceable in Nigeria?

n a notable decision by the National Industrial Court of Nigeria, in the case of Ekeoma Ajah v Fidelity Bank Plc, the court considered the propriety of an employer introducing and retrospectively applying a retirement benefits policy to an employee instead of the policy that was in place at the time of the employee’s notification of retirement. The Facts The Claimant was employed by the Defendant on 21st January 2002 as an Executive Trainee and rose through the ranks to become an Assistant Manager in the Risk Management Department of the bank. After working in the bank for an unbroken period of 14 years and 9 months, the Claimant expressed her intention to retire from the employment of the bank and intended to take advantage of the terminal benefits contained in the bank’s voluntary retirement benefits policy operating at the time. The policy was applicable to employees who attained an unbroken long service of 15 years and who were below 55 years of age and the Claimant fell into this category. On 2nd December, 2016 the Claimant gave to the bank notice of her retirement, which was acknowledged by the Bank on 23rd December, 2016. After receiving the Claimant’s notice of retirement, on the same 23rd December, 2016 the bank circulated an email cancelling the voluntary retirement benefits policy. The cancellation of the policy was retrospective and to take effect on 15th December, 2016. On the basis of this cancellation, upon the Claimant’s retirement, the bank refused to pay the Claimant any entitlements under the voluntary retirement benefits policy as a

Mofe Tayo-Oyetibo

result of which the Claimant sued. The position of the bank in the suit was that, on the authority of the decision of the Court of Appeal in the case of ECWA v Dele ((2004) 10 FWLR (pt.230) 297), it was entitled to amend its employment policies or conditions of service, especially when the policy is an optional benefit, as in this case. The bank also argued that when conditions of service are amended, the relevant provision will be the one that is applicable at the time of termination of employment. Therefore, since the Claimant was short of 15 years’ service at the time of her employment came to an end, she was not entitled to claim benefits under the cancelled policy. On the other hand, the Claimant distinguished ECWA’s case from hers on the ground that, in

ECWA’s case, the affected employee consented and agreed to be bound by the new policy introduced by his employer. The Claimant further maintained that in her case, the Claimant neither signed nor agreed to be bound by the policy cancelling the voluntary retirement benefits policy. For this reason, the Claimant took the position that the bank’s change of policy was unenforceable, done in bad faith and contrary to the Claimant’s legitimate expectation. The Court’s Decision The court identified the principal issue for determination to be whether the Claimant who had attained 14 years and 11 months in service at the time of the bank’s new policy and having served notice indicating her option to

retire and take benefit of the extant policy at the time of serving the notice be denied the retirement benefit under the existing policy or be switched over to the new policy which appears to be detrimental to her pecuniary interest in the service? In giving judgment for the Claimant, the court held that although in certain circumstances an employer is, as of right, entitled to vary any part of the contract of service without seeking and obtaining the consent of its employee, the Court will discountenance variations which have the effect of taking away any accumulated benefit of an employee. The court further held that the retroactive application of a policy variation will be ineffective against an employee where it divests the employee of accrued benefits because “the court does not protect retroactive action capable of denying accrued benefits.” The court held that It is part of its equitable jurisdiction to preserve earned benefits, particularly those of pecuniary nature, and the court will usually tilt towards resolving such emerging controversy in favour of the beneficiary rather than in favour of one trying to take away or expropriate the benefit. According to the court, retroactive action taken to achieve such expropriation always fail against the victim as the court will not protect retroactive action capable of denying an employee of accrued benefits, but holds both parties to their original bargain to save earned benefits at the point introduction of new policy regime. On this score, the court decided that the bank was wrong to have introduced a retrospective policy to operate as if the Claimant had not served her Notice of Retirement before the new policy came into effect.

On the question of whether the Claimant was qualified, having served for 14 years and 11 months and not 15 years as required by the voluntary retirement benefits policy, the court applied what it called the “principle of arithmetical approximation” and held that the Claimant must be deemed in law to have served for 15 years at the time the new policy was introduced on the 23rd December 2016. Commentary For employers, the consequence of this decision is that policies which are made to operate retrospectively to deprive employees of accrued benefits under existing policies are very unlikely to be enforced by the court, especially where the employees do not give their consent to be bound by the retrospective policies. As in the above case, the court is likely to construe such retrospective policies as those calculated by the employer to evade accrued obligations to employees. For employees, this decision will necessarily provide some sort of assurance that their legitimate expectations of employers to carry out their obligations under applicable polices will readily be enforced by the court. Finally, the court’s reliance on the novel principle of “arithmetic approximation” to sustain the Claimant’s claim against the bank is instructive of the fact that the court will readily invoke its equitable jurisdiction innovatively to ensure that employers do not avoid accrued obligations to employees on technical grounds.

MOFESOMO TAYO-OYETIBO, ACIArb is Managing Counsel of the law firm of Twelve Legal and an expert in dispute resolution practice.

LEGALINSIGHT

Medical Malpractice in Public Health Emergencies: A review of medical response to COVID-19 in Nigeria

he world has not experienced a pandemic with such ravaging effects in the 21st Century as the coronavirus pandemic (COVID -19). Needless to say, the world was caught unawares; every continent recording fatal casualties and deploying their best-known medical expertise to ensure preservation of life and reduced community transmission of the virus. The call to preserve lives is indeed a tall order especially in a situation where there are no vaccines or cures and the resulting complexities from contracting the virus are peculiar in each case. This Article examines whether there are instances when or where medical practitioners and medical institutions can be adjudged as negligent in the prevailing pandemic situation. Is there an overriding allegiance to self-preservation which can displace or override the sworn Hippocratic Oath to uphold ethical standards at all times? For context, story of Bertha Okey whose brother died of tuberculosis and ‘collapsed intestines’ (intussusception) after being rejected by a number of hospitals for the fear of him being a carrier of the

coronavirus brings to the fore the question whether medical malpractice can be excused or justified in a pandemic situation as that of COVID-19. What constitutes Medical Malpractice? Medical malpractice occurs when a hospital, doctor, or other health care professional(s) through a negligent act or omission causes an injury to a patient. Medical malpractice is founded on the principle of negligence in tort which places on every www.businessday.ng

medical practitioner the ‘duty of care’ to avoid foreseeable injury to every patient. A duty of care is owed wherever in the circumstances it is foreseeable that where care is not exercised, harm will be done. The ‘duty of care’ in a pandemic situation Medical professionals remain the vehicle by which laws and policies, processes and systems will be given effect for the prevention and treatment of infectious and communicable diseases present during a public

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health crisis. The Quarantine Act of 2004, the National Health Act, 2014 and the Nigeria Centre for Disease Control and Prevention (NCDC) Act, 2018 are the laws that govern disease detection, prevention, control and surveillance in Nigeria. The Quarantine Act makes no provisions for the function of medical practitioners in enforcing the laws. The National Health Act however highlights the obligations of health care personnel by stating that they are not to refuse anyone emergency medical treatment for any reason and anyone who does so is guilty of a criminal offence. The Act also states clearly that every health establishment shall implement measures to minimize disease transmission. Although the National Health Act was not promulgated in contemplation of public health emergencies such as COVID-19, it can be said to have general application which can be extended to cover public health emergencies. The obligation on health institutions to minimize disease transmission can be taken as the duty to prevent disease which is a part of the larger ‘duty to treat’. In the United States, when there is a mass casualty event, hospitals @Businessdayng

and medical personnel are expected to shift largely from individual patient care to population based care via well planned medical triage. Multiple medical triage protocols are created and the goal of the protocols is to save as many lives as possible with the limited resources available. What is most important is that there is a protocol which guides their action during the mass casualty event. In public health emergency situations such as that of COVID -19, the degree to which hospitals have prepared in advance may positively correlate with their ability to effectively respond to the pandemic. Hospitals in Nigeria in responding to the COVID-19 pandemic have taken a number of medical responses which calls to question the obligation to ensure there is no breach of the standard of care expected of medical institutions. We will now examine some of these responses. • To be continued next week

Tomilola Tobun, Temidayo Adewoye and Ibidoyin Aina are with the law firm of Perchstone & Graeys.

Thursday 28 May 2020

BUSINESS DAY

PERSPECTIVE

LegalBusiness

The legal Sector and Post-Covid-19: The front burner issues YEMI AKANGBE

t is no longer news that the Coronavirus pandemic continues to ravage the entire world since news of it broke in December 2019. While we thank our front liners and health workers for the assiduous and daunting, yet, life threatening, tasks that they embark upon everyday, we only pray that a cure/vaccine is found soon. But for now, there are predictions that these unprecedented times may remain with us for a longer time spanning into 2021 and beyond, and if that is the case, mankind would have to learn to live with what is now called “the new normal” way of life. Over the past few months, every sector locally and internationally has been impacted by the knock-on effect of the infection. This has led to massive disruptions and sudden collapse of industrial and commercial activities. Certainly, the Nigerian legal sector is not left out and the existence and sustenance of most law firms have been threatened because of little or no work , largely due to the fact that the judicial system, which is a major play point in the legal sector has had its functions and activities disrupted in a manner that is unprecedented.. There is therefore the need to work towards the so-called new normal and many epoch changes are being set in place by Law Firms, Lawyers, the Judiciary and the Alternative Dispute Resolution Bodies. According to Albert Einstein, ‘in the midst of every crisis, lies great opportunity’, Covid 19 has certainly not been an exception to that saying. It is interesting to note, therefore, that Covid 19 has brought about some desirable innovations that most forward thinking legal practitioners have always been clamouring for. For instance, Courts are now talking about scheduling of cases that most progressive practitioners have been advocating for over time. Virtual hearings also now appear to be a real prospect. Let us now consider how the legal sector has reacted to Covid 19 and its impact going forward. What is the Judiciary doing? In the past weeks we have seen how the court systems have moved from being completely shut down to opening for skeletal activities to attend to urgent matters (like bail applications in criminal matters, fundamental human rights matters), adoption of final written addresses and delivery of judgments and rulings. Heads of Courts, under the directives of the National Judicial Council and the Honourable Chief Justice of Nigeria have risen to the task of filling the exist-

Yemi Akangbe

ent colossal gap that Covid-19 has both revealed and dented into our existing legal framework. Much as we would like to say that our legal system is evolving, it is not in doubt that this pandemic has exposed the fact that our legal system did not embrace digitalisation or the state of technology today until recently. Regardless, hereunder is a list of steps taken Post-Covid by the Judiciary: Issuance of Practice Directions and Guidelines which supports the use of free and or cheap technology platforms in judicial service delivery. On 4th May 2020, the Lagos State Judiciary issued its Practice Directions to guide proceedings during the COVID-19 period. This was followed by Ogun State Judiciary and the High Court of the FCT, Abuja. Also, the National Judicial Council through the CJN released more of such Guidelines and Protocols following the Presidential Directives easing the lockdown set in place before now. Also, on 7th May 2020, the Lagos State Judiciary organised a virtual legal reform workshop which had stakeholders in attendance all in a bid to move the legal sector forward during these unprecedented times. These rapid developments are still in their crawling stages but it is certainly refreshing to see that the judiciary is awake to the reality that the so-called new normal has come to stay and business/ institutions and the society at large must set bespoke mechanics to fit the situation. Virtual Hearings: Judges in Nigeria and indeed all over the world have now resorted to dewww.businessday.ng

livering justice virtually, through platforms like Skype, Microsoft Teams, Zoom etc. As far as Nigeria is concerned, such procedures seemed unlikely as at January 2020. However, recent judgments, rulings and proper court proceedings have held virtually in the past few weeks and the legal sector is the better for it. A lot of Courts are now issuing protocols for physical hearing of matters, by scheduling cases (allotting time slots for lawyers), in a bid to avoid having crowded court rooms. This welcomed development and is seen by practitioners as one of the desirable innovations brought about by Covid. This may be a lasting solution to the problems in some of our courts. In some Courts, in the Federal High Court, Lagos for instance, it is a rare privilege to find a standing space in Court, let alone, a place to sit down. But with scheduling, we may not experience this inconvenience going forward, as lawyers would have time slots and be able to plan their time better and not just sit in court for many hours. The opportunity cost of the way things were being done previously was obviously enormous and the effect could only have been detrimental to law businesses and their clients. The above points made, a lot is still evolving, but it would be better for the Judiciary to see the Bar as their partners in this journey. There has not been as much engagement or consultation (in my opinion) in the steps taken by the Lagos State Judiciary, in issuing these Practice Directions and Protocols. Stakeholders engage-

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ment is always productive. Going forward, it would be advisable for the Judiciary to carry the Bar along, through the various NBA Branches within jurisdiction, as the Bar and the Bench are partners in the justice delivery sector. We need one another. What are law firms and lawyers doing? It is worth mentioning that, as a matter of strategy, law firms and lawyers need to re-position themselves and have their value propositions (re) evaluated in order to position themselves to retain client’s trust on service delivery or make themselves attractive to potential clients who would be on the look-out for law firms who have displayed strong Business Continuity Plans during this period and cannot be considered to have rested on their oars. For law firms, the innovative steps taken, using the business model adopted by my firm, Sofunde, Osakwe, Ogundipe & Belgore and some other firms as an example are: Remote working: While some law firms are unfortunately unable to have any work done because they are unable to physically work from their offices, other forwardthinking law firms have (even before Covid-19) embraced “flexible and integrated working arrangement”. By this arrangement, the legal team are empowered to work from anywhere in the world on their work tools. This model enables law firms to provide realtime solution to clients and give the assurances that they are able to carry out their functions without necessarily being confined to their law offices. One crucial lesson from this pandemic for stakeholders in the legal marketplace is the need to have alternative means and methods for doing our jobs and the dynamism of the law and society should assist law firms to adapt to the changes that have come with the new world order and even after the pandemic is over, these changes/adaptive practices will become a larger part of our practice. For example, we, as a law firm have recently held many Virtual Preliminary Meetings to progress our clients’ arbitral reference. We have equally attended several video conferencing from the courts just to better prepare us for what is soon to become the new way of practising law. Ability to stay in touch with clients and assure them of your readiness to support and advise them during these times is essential. This is for the simple reason that lawyers thrive on patronage from clients and clients on the other hand, need lawyers for guidance and support. The relationship should be predicated on a synergy and one that is, at the very least, potentially reward@Businessdayng

ing . So, a forward thinking law office will appreciate that client consideration and top-of-mind strategies are important for its existence. This is first, so that the client is guaranteed of a genuine trust/business relationship which transcends the bad times and second, so that a client continues to know that its lawyers are available to render legal solutions as it may affect its business from time to time. The experience of the post 2008 recession which triggered the launch of new businesses and several lawsuits for stakeholders who wanted to mitigate their losses is indicative of the fact that prioritizing knowledge acquisition and sharing in preparedness for emerging new opportunities is key. It is safe to assume that there would be a lot of contractual disputes post Covid, hence, lawyers should position themselves in a way to be able to take those opportunities. There are many lowhanging fruits that will emerge during and after Covid-19 due to strained, unfulfilled legal obligations and unmalleable business deals due to dwindling/receding or at best generally unstable market forces e.g. availability of FOREX to fulfil a supply chain distribution contract etc. Clients will require lawyers for legal advisory, dispute resolution, negotiations and compromise and everything in-between in order to transition into a better, leaner business structure, thus, the prospect of tackling such unprecedented cases means that a lawyer should reposition himself or herself for impact from a place of knowledge and experience and must be seen to be responsive to the dynamics. Conclusion In conclusion, where this leaves the legal profession as a sector is a place of metamorphosis, transcending expectations as we have always known it. It is important to focus on strategy, functionality, management, leadership and a general repositioning of our legal sector and especially our legal framework to be better prepared for future crises (because crises will continue to plague the world and its economy), helping us to emerge from the ugly situations into an improved sector. To achieve this, we need the common will to ensure that we do not throw away the positive gains of COVID-19. We should not see the positive achievements recorded as mere interim measures but as permanent solutions.

Yemi Akangbe is a Partner with Sofunde Ogundipe and Belgore (SOOB) and the current Chairman of the NBA Lagos branch.

Thursday 28 May 2020

BUSINESS DAY

BUSINESS TRAVEL

IATA outlines roadmap for aviation industry restart Stories by IFEOMA OKEKE

irpor ts Council International (ACI) World and the International Air Transport Association (IATA) have called on governments to ensure any new measures introduced for airports and airlines in the wake of COVID-19 are supported by scientific evidence and are consistent across the world. The aviation sector has been brought to a standstill and a balanced and effective restart and recovery depends on collaboration among the key participants in the global aviation ecosystem. ACI and IATA have jointly issued a paper laying out a pathway for restarting the aviation industry - Safely Restarting Aviation - ACI and IATA Joint Approach. Airlines and airports have cooperated to build a roadmap for resuming operations which reassures the travelling public that health and safety remain the overall priorities. The joint approach proposes a layered approach of measures across the entire passenger journey to minimize the risk of transmission of COVID-19 at airports and onboard aircraft, and to prevent aviation becoming a meaningful source of inter-

national re-infection. Such measures should be globally consistent and subject to continued review, improvement, and removal when no longer required, to ensure an even recovery. ACI and IATA are both central members the COVID-19 Aviation Recovery Task Force (CART) being led by the Council of the International Civil Aviation Organization (ICAO). CART enables the collaboration - among governments and between governments and industry -that is vital to ensure the harmonization and consistency of measures that are essential to restoring air connectivity and passenger confidence in air travel. “Airports and airlines have

come together with ICAO and the wider aviation industry to address the biggest challenge ever faced by commercial aviation in restarting a global industry while continuing to halt the spread of COVID-19,” ACI World Director General Angela Gittens said. “There is currently no single measure that could mitigate all the risks of restarting air travel but we believe a globally-consistent, outcomebased approach represents the most effective way of balancing risk mitigation with the need to unlock economies and to enable travel.” Alexandre de Juniac, IATA’s Director General and CEO said, “Safety is always our top priority and that includes public health. Restoring air

COVID-19: Arik Air donates palliative items to Lagos communities

rik Air has donated palliative items to some communities in Lagos state to cushion the effect of the lockdown occasioned by the COVID-19 pandemic. The items donated were mainly food items such as rice and beans. These areas covered by the donation were Ewu-Tuntun/ Mafoluku community around the Murtala Muhammed Airport and Arigbanla community in Orile-Agege, both in Lagos

The presentation of the food items was made on behalf of the management of Arik Air by a team led by the airline’s Head of Business, Central/ West Africa, Sylvester Egogo and Manager PR & Communications, Adebanji Ola. Roy Ilegbodu, the Chief Executive Officer of Arik Air, said the donation of food items to the communities was part of the airline’s Corporate Social Responsibility (CSR) and its contribution to government’s efforts at amelio-

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rating the impact of the pandemic on the most vulnerable in the society. Receiving the items, the representative of the EwuTuntun/Mafoloku community and Chairman of Abolaji/ Osundeyi Community Development Association (CDA), Otunba Nathaniel Osho commended Arik Air for its show of love and promised that the palliative will get to the poorest of the poor in the community. At Orile Agege, the First Vice Chairman of Ifelodun CDA, Pastor Abe Kehinde described the airline’s move as highly commendable and worthy of emulation. “This is the first time we are receiving such items in this community and we are grateful,” Pastor Kehinde said.

connectivity is vital to restarting the global economy and reconnecting people. Our layered approach of measures recommended by airports and airlines safeguard public health while offering a practical approach for a gradual restart of operations. “It is important to remember that the risk of transmission on board is very low. And we are determined that aviation will not be a significant source of re-infection. “We are working continuously with governments to ensure that any measures put in place are done so consistently and with scientific backing. That is key to restoring public confidence so the benefits of safely re-starting aviation can be realized.”

Post COVID-19: Air Peace to stop inflight services, downsize operations

he managing director and chief executive officer, MD/ CEO, of Airpeace airline Allen Onyema has said it will stop inflight service on domestic routes and down size its operations when flights resume in the country. Onyema further disclosed that it also plans to downsize workforce. Speaking during a webinar organized by Aelex partners with the theme: “Survival Strategies for Nigerian Airlines”, Onyema said these decisions have been taken to cut cost by the airline due to the impact of the COVID-19 on the Industry, adding that some staff may be asked to stay home until the situation improves He said on resumption, passenger traffic would be low due to fear passenger may entertain regarding air travel and to this end, a lot has to be done to encourage people to travel again. The Airpeace boss said few of its aircraft would be deployed at resumption as well as reduction in the number of flights. “Out of our 13 Boeing 737 in Airpeace aircraft, we are only going to deploy four , out of our 8 ERJ’s, we are going to deploy only six because those ones are just 50 seater, so we will manage with those ones.

Allen Onyema

“From 100 flights per day, Airpeace is going down to 42 flights. So going to Abuja will no longer be every hour. So, we are downsizing our operations to almost about 60 percent, we are going to do about 40 pwrcent of our operations and even in that 40 percent, we are not going to carry 40 percent of the passengers we use to carry before. “Passenger figures are not going to be the same again like what it used to be years back, everything has changed, so going into operations, a new set of regulations will emerge. According to Onyema, with the reduction in the number of flights, few staff would be required for the operations. He emphasized that Airpeace was not sacking any staff, adding that when flight increases more staff would be brought in.

Air France progressively increases flight schedule

ince the outbreak of the COVID-19 crisis, Air France has been adapting its network and flight schedule in realtime in line with travel restrictions and demand. Since end-March and at the present time, Air France is operating between three and five percent of its usual schedule, with a focus on maintaining a service to the French regions and links with key destinations in Europe and worldwide, to both transport passengers and goods. In this capacity, Air France currently serves 43 destinations. Between now and the end of June and subject to travel restrictions being lifted, Air France plans to gradually resume its flights, with a gradual increase in the number of frequencies and destinations, especially to/ from metropolitan France, the French Overseas Depart-

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ments, and Europe. This flight schedule will be equivalent to 15 percent of the capacities usually deployed at this time of year and will be operated by 75 aircraft in the Air France fleet, which comprises 224 aircraft. To assist its customers as traffic picks up again, Air France regularly adapts its flight schedule and updates it daily across all distribution channels. As of 18 May 2020, the flight schedule is up to date until 30 June 2020. This flight schedule is likely to change and remains subject to obtaining the necessary governmental authorizations. Days of operation and the resumption date of these different services can be consulted at airfrance.com Details of the flight schedule for the months of July and August will be published at the beginning of @Businessdayng

June 2020. This updated flight schedule implies the cancellation of bookings for flights that will not be operated. Commercial measures available for consultation on airfrance.com and at all points of sale allow concerned customers to reschedule or cancel their trip at no extra cost. Prior to travelling, Air France encouraged its customers to contact the competent authorities for information on the formalities for entering and residing in their countries of destination and transit, as these are likely to have been modified following the COVID-19 epidemic. Air France reminds that wearing a face mask is compulsory on all its flights and that temperature checks have been implemented on departure of each flight.

Friday 22 May 2020

BUSINESS DAY

Corporate Social Impact

Onuwa Lucky Joseph Editor, (08023314782)

Localizing Sustainable Development: What It Means For African Businesses TEMITAYO ADE-PETERS

n recent times, a number of articles have been written to explain what localizing the Sustainable Development Goals (SDGs) mean. Billed to be achieved by 2030, the 17 SDGs were launched by the United Nations in 2015 as a roadmap for global development at all levels of government and governance. Going by this understanding, some experts have stated that localizing the goals is about ensuring Local Governments’ effective involvement in the implementation of the goals. This makes logical sense, considering that Local Governments are fundamentally the closest to the affairs of the everyday common man, who make up the largest cluster of stakeholders facing most of the challenges the SDGs were set up to address. My submission, however, is that this thinking only addresses the aspect of government without paying attention to governance from a more holistic context. A major group of key players required for the achievement of the SDGs are not in Government. They are in business and according to the United Nations and other global commissions and institutions set up to support the UN’s 2030 sustainable development mission, the private sector has a central role to play in this mix. In fact, it has been established that without the leadership, skills and resources of its private sector, no nation can successfully achieve sustainable development. Looking more closely, a number of the SDGs are addressed largely, if not solely by the private sector, with the government only serving as umpires or enablers as the case may be. Take Goal One, No Poverty or Goal Eight, Decent Work and Economic Growth as examples. It is a known fact that businesses are the key drivers of

wealth and job creation. When you visit regions without thriving businesses, the direct result you notice is poverty, unemployment and high levels of underdevelopment. How then can the private sector effectively contribute to sustainable development? The hallmark of the private sector is entrepreneurship. The private sector is made up of people who have identified specific problems, which they are either solving directly, or through investing their resources into powering other people’s solutions. Whichever route they choose, the focus is on the return on investment. By its natural make-up, the private sector cannot actively contribute to sustainable development except there is a compelling business reason to do so. It is very easy to talk about doing things because it is the right thing to do, which of course is right. However, without the business mindset, the sustainability matrix is incomplete. There is indeed a reason the three Ps of sustainable development are People, Profit and Planet. The economic aspect of sustainability cannot be neglected and this is largely a burden shouldered by the private sector. Thus, considering the need for

increased focus on the role of the private sector in sustainable development as it relates to governance, we need to ask an important question: what does localizing the SDGs or sustainable development mean for business? It means adapting global best practices to our local nuances. In practice, what this means is that in a country like Nigeria, diversity in the workplace, for instance, will have little to do with reporting the variety of nationalities working within an organisation, except of course the organisation is an MNC. Even then, why would it matter to Nigerians that a multinational company has Indians working for them in Nigeria? Amongst other issues that diversity addresses, it will be more about tribal diversity. Is your bank tilted towards a certain tribe, employing based on favoritism without recourse to merit? Are you running your organisation based on man-know-man, focusing only on short-term face saving? In effect, localizing the goals will be about transposing sustainability issues to our local and cultural context at a relatable level for our market in a way that creates sustained value and ensures longterm business success.

The private sector is skilled at making money. In fact, they excel at identifying opportunities and monetizing solutions. The challenge is that the way business has been run over the years has been unsustainable. We see it in the level of economic disparity between the rich and the poor, in the level of global environmental degradation, in the restlessness of our youth and the warming up of our climate. While this is not primarily an African problem, our vulnerability heightens the negative impact of the consequences on the continent. The COVID-19 pandemic has further exposed what we have always known, often admitted but not done enough about: most African nations have unbelievably weak economic systems, fuelled by many factors including corruption. In spite of our natural and human resources, and the number of businesses on the continent, there’s huge infrastructural deficit and high levels of household poverty. Most African countries have not been able to effectively implement lockdown measures, even though survival depends on it, because the economies are not structurally resilient enough to withstand such pressure. Entrepreneurship provides the building blocks for economic progress and has indeed been applauded as the messiah of most developed countries’ financial prowess. However, without building businesses that can effectively localize a well thought through sustainability framework like the SDGs, Africa will continue to grapple in the darkness of poverty under the weight of underdevelopment. Our local African businesses need to understand that times are different today and there is a better way to do business in a manner that creates shared value. This is not about sharing part of the profit made in charitable contributions or philanthropic feats but about

how it was made in the first place. Organisations must fully appreciate their roles as sustainability drivers who meet the needs of the present without compromising the ability of future generations to meet their own needs. While making this transition to a new way of doing business might seem challenging, it is not impossible. It requires innovation and a new level of thinking that goes beyond profit to incorporate considerations for the people and the planet. When done right, the trade offs will also be minimal with the gains enormous. In fact, according to the commission on business and sustainability, there is 12 Trillion Dollars worth of economic value to be unlocked within the SDGs by 2030. Businesses that make the switch to sustainable models now will be those that will lead the future, both on the continent and on the global scene. As much as sustainability makes business and economic sense, while driving innovation and differentiation, the goal is not to have business leaders just jumping on board to be a part of the bandwagon. It is about a more holistic value: sustainable businesses make sustainable economies. Without a thriving private sector, a nation will only continue to strive, making marginal progress, if any. It is therefore in the best interest of everyone, that we not only have more businesses spring up on the continent to create more jobs for our ever growing youth population, but that new and existing businesses entrench sustainable business strategies into their models. Verily verily I say unto you, Africa cannot rise above its present misery if its private sector does not work, and sustainably so.

(Temitayo is CEO, WeForGood International)

Now Is the Time for Philanthropy to Give More, Not Less (Part 2) AARON DORFMAN AND ELLEN DORSEY

number of foundations have begun announcing plans to give more, many notably altering the terms of their grant making by turning funds earmarked for programs into money for general operating expenses. This is a good start, but others must join them. We simply cannot justify leaving our vast resources — whether they be held in foundations, private investment accounts, or donor-advised funds — on the table this time around. The stakes are too high. Philanthropy has a particular responsibility to give more to support these organizations given that the last several years have been highly profitable for wealthy donors and philanthropy. These gains — a significant portion of which are ill-gotten gains from the Trump administration’s tax cuts, if we are honest — never reached the

middle class, much less the most vulnerable members of society. And today, to add insult to injury, service-industry workers face the lack of paid sick leave, shortened hours or layoffs, and jobs that put their health at risk. Gig-economy mothers are forced to deal with an inability to afford or secure care for their children who are out of www.businessday.ng

school. Immigrant families, many of which are of mixed status, are grappling with the fear of going to the doctor or hospital because of draconian immigration policies that place entire communities in harm’s way. Given this reality, our increased funding must focus squarely on promoting social justice — and provide immediate support those who have been most negatively (and disproportionately) harmed by the public-health crisis. As well, we must continue supporting existing programs and projects for needed long-term social and systemic change. Philanthropy must give more in unrestricted funding, give strategically to organizations that are filling gaps in the society safety net, and support efforts to undergird the temporary protections put in place for Covid-19 and make them permanent. That is the only way to ensure we are better prepared the next time a pandemic comes along.

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One potential silver lining of Covid-19 is that it has revealed broad public support for a government that works for the people. Government officials — including elected officials on both sides of the aisle — are calling for subsidized or free health care, paid sick leave, reduced public travel and consumption, and economic policies that support the working class, not the billionaire elite. It has also revealed the extent to which governments can take drastic action in response to a public health emergency. After weeks of reduced global travel as a result of quarantines, closures, and government policies, pollution is so much lower that it is noticeable from space. Our actions are, for once, having a brief positive impact on the environment. Can you imagine if we took the same public-health approach to planetary crises like the climate emergency? Philanthropy can and must help governments and @Businessdayng

activists lead the way as we work to simultaneously address a publichealth crisis and the catastrophic risks of climate change. This response cannot be a oneoff, either. Even beyond Covid-19 responses, philanthropy must double down on its investments in public health, social justice, and economic and environmental justice. We must understand, too, that these investments have far-reaching returns and will help society prepare to address a climate emergency that will likely kill many more people. It will be a hard fight, but we have both the resources and the capacity. For the world, now is the time to consume less, travel less, and prepare for change. For philanthropy, it is the time to spend more. Aaron Dorfman is CEO of the National Committee for Responsive Philanthropy. Ellen Dorsey is executive director of the Wallace Global Fund.

Thursday 28 May 2020

BUSINESS DAY

NEWS

National Assembly to resume Thursday over passage of revised 2020 budget

Solomon Chukwulobelu (l), secretary to Anambra State government; Chiedu Ebie (r), secretary to Delta State government; Charles Aniagwu (behind the SSG, Anambra) Delta State information commissioner, at the Asaba end of the Niger Bridge during the inter -state boundary committee (COVID-19) meeting to sort out the gridlock on the bridge as a result of border closure between the two states.

SOLOMON AYADO, Abuja

Why Merit Abode’s new developments are destinations for yield-hungry investors, home buyers CHUKA UROKO

or mid-income home buyers and investors that have yield appetite, Merit Abode, a new generation real estate investment company, is creating opportunities with its new developments across four main locations in Lagos and Ogun states. Known as Emerald Garden City Series, these developments are compelling destinations for reasons of their accessible locations, good roads infrastructure and return on investment potential for those who will be buying for investment purposes. Apart from being a set of affordable residential properties promising to be safe havens for individuals and

families, Emerald Garden City Series is designed to be Nigeria’s first privately owned estate series in suburban communities aimed to provide middle class Nigerians with luxury, comfort and security similar to what obtains in highbrow neighbourhoods in Lagos. Simawa, Mowe-Ofada, Ikorodu, Agbara and Ibeju Lekki where the properties are being developed are green, high-growth areas which, unlike the built-up city centres, hold promise for high demand and good return on investment due to the development of new infrastructure and industrial growth that will require facilities for living, working and leisure. Simawa is a green but fastgrowing area where property value is still relatively low but with strong expectation of ap-

preciation, meaning that buying in that location today for investment purposes guarantees significant value appreciation tomorrow. For the expansion of the Lagos-Badagry Expressway into 10-lanes with a light rail, any property bought along that axis is a very wise investment decision. Infrastructure is a great enabler of property value appreciation. This explains why three-bedroom bungalows that were sold for N7.5 million each five years ago in one of the estates along that expressway now sells for between N12-15 million. Ibeju Lekki where Emerald Garden City Series is also coming up is described today as the fastest growing neighbourhood in West Africa, and the reason is simple. The Lekki Free Zone and the up-coming over 600 barrels per day

Dangote Refinery are part of the reasons property demand in that axis is already rising. The Alaro City being developed by Rendeavour in partnership with Lagos State government was launched in January 2019 and, only 12 months later, its residential plots of land were fully sold out, which underscores the level of demand in that axis. It is expected that Dangote Refinery alone will be employing about 10,000 workers who will be needing houses to live and offices to work in. There are so many other industries that will be coming up in and around the Free Trade Zone. “What we offer are innovative real-estate based investment solutions that intelligently and ethically leverage the current crises in the economy; we are out to empower

he National Assembly has announced that it will cut short its break and resume on Thursday to consider passage of the revised 2020 budget. Both the Senate and the House of Representatives had adjourned to observe the Eid-el-Fitr and were to resume on June 2. However, the National Assembly decided to change the earlier scheduled resumption to enable it pass the Appropriation (Amendment) Bill 2020 sent to it by President Muhammadu Buhari. The sudden National Assembly resumption was announced by the Clerk to the National Assembly, Mohammed Sani-Omolori, in a state-

ment issued in Abuja. It read: “This is to inform all Distinguished Senators and Honourable Members that resumption of Plenary Session earlier scheduled for Tuesday 2nd June 2020, has been rescheduled for Thursday, 28 May 2020, to enable Members to consider the Appropriation (Amendment) Bill, 2020. “All Distinguished Senators and Honourable Members are expected to resume in Plenary by 10.00 are on Thursday, 28th May 2020,” the statement stated. Meanwhile, Chairman of the Senate Committee on Appropriation, Senator Barau Jibrin has confirmed that the Senate “has received copies of the revised 2020 budget from the Minister of finance and will give it accelerated passage.”

SystemSpecs unveils judges for 2020 Children’s Day essay competition SEGUN ADAMS

fter receiving an overwhelming number of entries, SystemSpecs has officially closed the window on submission of entries and announced judges for its 2020 Children’s Day essay writing competition. The firm made this disclosure as it revealed it received about 2,000 entries within two weeks from participants in public and private schools between the ages of 9 and 16 in the junior and senior categories of the competition. “We are really excited at the interest shown by young Nigerians in transforming the country through the positive application of technology. The large number of entries received within such a short time validates our assumptions that young Nigerians are yearning for the opportunities to contribute to making the country better,” said Akor Akpenyi, SystemSpecs’ CSR

programme administrator. To evaluate and select winning entries for the top prizes in the two competition categories, SystemSpecs has unveiled a panel of judges made up of distinguished individuals from Nigeria’s technology and education ecosystems. The judges are technology entrepreneur and business coach, Chukwuemeka Fred Agbata; longstanding technology education and empowerment expert, Banke Alawaye; senior technology journalist of repute, Ifeoluwa Ogunfuwa; technology development manager, Stella Chibuike-Ezike, and technology publisher and co-founder of TechPoint Africa, Muyiwa Matuluko. “We believe the competition has stretched the minds of younger Nigerians and provided them an opportunity to see themselves as being relevant to the emergence of a better Nigeria,” said John Obaro, SystemSpecs’ managing director.

Ahmad succeeds Pascal Dozie as president, board chairman of SCGN Lagos moves to revive primary healthcare system ENDURANCE OKAFOR

he Society for Corporate Governance Nigeria (SCGN), an organisation committed to the development of corporate governance and best practices in Nigeria, has appointed Muhammad Ahmad as its president and chairman of board. Ahmad’s appointment follows the retirement of Pascal Dozie. With over 35 years of distinguished experience leading and working in various public sector organisations and financial services institutions in Nigeria, Ahmad was figured out as the most suitable for the position. As the pioneer directorgeneral and CEO of the National Pension Commission, Ahmad oversaw the establishment and growth of the Pension industry in Nigeria. Before that, he had worked as a Bank Supervisor at the Nigeria Deposit Insurance

Corporation (NDIC) where he rose to become a Director and member of the Interim Management Board, and at the Central Bank of Liberia. Ahmad is currently a member of the Board of Directors of MTN Nigeria Communications and Chairman of the Interim Management Board of International Energy Insurance. He is the founder of Jewel Development Foundation, a graduate assistant platform, and Certium Consulting, a strategy advisory and business applications company. He has also been a member of the Boards of Directors of FBN Holdings PLC, and FATE Foundation, a non-profit private sector-led organisation whose mission is to foster wealth creation by enabling aspiring and emerging Nigerian entrepreneurs. Ahmad also chairs the Technical Committee of the National Council on Privatisation (NCP) of which the www.businessday.ng

Vice President of Nigeria is the chairman. He chaired the Technical Committee of the Financial Reporting Council of Nigeria, which produced the Nigerian Code of Corporate Governance 2018. He is a member of the Presidential Committee for the North-East Initiative (PCNI), and was chair of the Technical Committee that produced the North East Transformation Strategy (NESTS), a mediumterm regional development strategy promoted by the governors of the six constituent states of the region, for its socio-economic transformation and reconstruction. The current Chairman of SCGN has a Masters Diploma in Innovation and Strategy from the University of Oxford and has also attended courses and programs in various firstrate business and management schools, including Harvard Business School, IMD and INSEAD.

… identifies 329 PHCs for upgrade post-COVID-19 JOSHUA BASSEY

hallenged by the outbreak of the COVID-19 pandemic and its devastating impact on the nation’s healthcare system, Lagos State government is seen in a move to upgrade its primary healthcare facilities. The expected upgrade would ensure that low and middle-class residents have access to medical services offered by Primary Health Centres (PHCs) at reasonable distance. To drive the process through, the state government said on Wednesday it had identified and carried an assessment of some 329 PHCs most of which were in a comatose state, for upgrade and improvement of service delivery. The upgrade, according to Akin Abayomi, the state commissioner for health, would

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focus on infrastructure, data management, power supply, water supply, drug supply, sewage management and adequate staffing. Other areas to receive attention include Immunisation, bridging of communication gap between the state ministry of health, local government and primary healthcare board, facility management, monitoring, financing mechanism, insurance scheme. These, the commissioner said, have been the challenge for third tier of healthcare delivery in the state. “We are not unmindful of the challenges facing primary healthcare system. This is the reason why we embarked on the assessment exercise as part of our plan to effect major and lasting transformations that will make access to healthcare facilities at the grassroots hitch @Businessdayng

free,” said Abayomi. The commissioner said the government equipped with knowledge of identified gaps, had already started renovating some PHCs across the state to bridge the gaps. He said: “23 of these PHCs are completed and ready for commissioning while others are at various stages of completion.” Recognising the prime place of PHC in the overall healthcare delivery system, the commissioner advocated for greater synergy between the ministry of health, the local government authorities and the National Primary Health Care Development Agency (NPHCDA) to have a robust and viable service delivery at the grassroots level, stressing that it would only amount to an exercise in futility if all stakeholders work at variance.

Thursday 28 May 2020

BUSINESS DAY

news From Boko Haram’s bedroom plaything... Continued from page 3

other household chores. But the torture does not end with the captors. Women and girls who spend time in captivity are nailed and tamed; they’re called different names such as “Boko Haram wives,” “Sambisa women,” and “Boko Haram blood”. This animated stigmatism reveals fears that the victims’ exposure to the terrorist group could spread to others. People still strongly hold the belief that these girls and women were brainwashed and radicalised while in captivity, and that they might recruit others if allowed to reintegrate into their communities. Now, many of the women have narrowly escaped slavery; some of them were rescued in a series of Nigerian military operations that dislodged the insurgents from some of the territories in their control. However, there have only been few joyous family reunions for the victims. ‘I’M PAINED THAT THEY KILLED MY FAMILY BUT DIDN’T KILL ME’ Even when she giggles, tears stroll down Aisha Ali’s face. It is evening on a Tuesday at the Bakassi IDP camp. Pariah children play noisily round the camp while Aisha gently sits inside her shattered shelter. She wears a blank look and speaks in a full monotonous voice. The 30-year-old is bereft of the joys of womanhood

us all into the bush,” she recalls. Aisha’s moments of torment came five months after she was abducted by the terrorists. She was battered for refusing to marry a terrorist. “They asked why we didn’t want to marry them and we insisted we were not ready to marry. Then they said we were refusing to marry them because we had the plan to escape. We told them we had no such plans. They tried to persuade us into marriage but we insisted we wouldn’t, so they made us their slaves. We worked for their wives, we swept and washed their clothes and utensils.” AN UNWANTED PREGNANCY AND ITS UNFORTUNATE LOSS Swallowing the rulings of the terrorists became impossible, says Aisha. There was too much of torture, force and hardship. One drizzling evening, Aisha and other women were almost falling asleep when some gunmen invaded their jagged hut. It was time for them to get married, whether they liked loathed it. “They brought some men and asked us to pick our husbands amongst them. They said if we didn’t marry them, we would escape. We told them we weren’t going to escape, that we had nowhere to go. But they wouldn’t listen.” But then, one year into the forced marriage, their husbands went to war and

30-year-old Aisha Ali at the Bakassi camp.

but she believes it is pointless to sob every day, thus her occasional smiles. The Boko Haram crisis has taken everything from her, including her father, mother and other siblings. “What pains me the most is how they killed everybody but refused to kill me,” shelaments.“They’vedestroyed everything and everyone I have. They burnt our people and bombed our homes.” BETWEEN A ROCK AND A HARD PLACE Aisha was told to choose between marrying a terrorist and enslavement that comes with torture. She was caught between a rock and a hard place. “When Boko Haram captured Gwoza, we spent eight months with them. When they heard that the Nigerian soldiers were coming, they took

most of them never made it back. Aisha’s husband fell into the unlucky category. Sometime later, the women were brought another set of men to marry. They did. “I was forced to marry a second man named Abdullahi. I was with him for five years and he got me pregnant. But I lost the pregnancy as a result of running helter-skelter from one bush to the other as the soldiers kept attacking. There were times I hardly drank water; that was how I lost the pregnancy.” FROM SAMBISA TO DRINKING SANDY GARRI Another turbulent day in Sambisa Forest, the sky was cloudy and there was a violent wind. There were air strikes too. Nigerian soldiers www.businessday.ng

had invaded the bush to fight the terrorists. Everybody was on the run. Aisha and other women in the bush ran for their dear lives until they found a village that was familiar to one of them. “We kept running until we found ourselves in Gwoza. We were there with the soldiers for one week. Then we were taken to Giwa Barrack; we spent two years and three months in the barrack before we were brought to this IDP camp,” she says. “Now, we are here doing nothing. I have a card for food but the food is not sufficient at all. At times, they give us sandy garri without water.” S A L A M AT U , T H E 16-YEAR-OLD ‘WIFE’ OF THREE BOKO HARAM FIGHTERS Salamatu Musa is not alone at the Bakassi IDP Camp yet she feels so lonely. The 16-year-old girl loves to work and walk in isolation, every time, and doesn’t like to talk to anyone, not even her neighbours. Some three months ago when she arrived at the camp, other internally displaced persons like her had thought she was deaf and dump. “I really don’t like to talk to people; I’m always scared, especially when I see men around,” she says, somewhat shyly. Her anti-social behaviour is a reflection of her terrifying encounters with the insurgents who enslaved her for five years. “It haunts me; it’s really hard to forget!” she sobs. SEPARATED FROM PARENTS AT 11, REPEATEDLY RAPED BY 13 Although Salamatu is now free from captivity, the young girl believes she is not free. “I don’t feel free at all. I don’t know anyone here. I don’t know where my people are — whether they’re dead or alive. I don’t know.” Her plight isn’t slight in any way. As young as she is, Salamatu’s sexual world has been cruelly invaded. She was only 11 when terrorists raided their village in Gwoza and pillaged it, capturing them in their hundreds. At the age of 12, while with the terrorists, her virginity was taken from her in a gang rape masterminded by four insurgents. By 13, she was already accustomed to repeated sexual assault, most times at gunpoint. But the terrorists weren’t just content with raping her; they would soon force her to marry them. AN ARROW OF SORROW Salamatu’s teenage years did not spare her the arrow of sorrow shut by the brutal Boko Haram fighters. “One day,” she recalls “they came and said they were going to marry me out. I told them I was too small for marriage but they forcefully did it. They took me to Sambisa, where I was married to three different Boko Haram members.” https://www.facebook.com/businessdayng

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Thursday 28 May 2020

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Thursday 28 May 2020

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Thursday 28 May 2020

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Investing for Millennials- Practical Ways to Build Wealth in Your 20s and 30s management of their finances as they assume that they have nvesting is very important in today’s world, and yet many time and can save for the future later. There is a need to be millennials only manage to save a bit, rather than investing financially prudent and remain disciplined because as the years (as revealed in a survey by the Bank of America). Millenials roll by, responsibilities increase and unless conscious steps are are however very unique, being the first generation to grow up taken, by the time retirement is around the corner, there won’t with modern technology which translates to them actually having be any nest egg to fall back on. It is never a smart move to live growth opportunities and information at their reach. However, beyond your time means. a survey by Pwc has revealed that eveneconomic with more than he U.Sworld turned activities, only 229 million sources counsel, with for now, China “as of it investment were” on its each willavailable tell. But a single click on the internet, a great percentage of millennials head within the appears to be COVID-19 free, do not invest and in fact have faced economic challenges such spate of just ONE and economic activities have as the financial recession of 2007-2009. Millennials are more MONTH and wethanare resumed across the country. likely to spend their money they still are to save. Many are more watching and gasping un- in the Clearly, inclined to value experiences overatsavings hopes of the “livingChinese economy their best lives” rather than while young an of what other folding events. As investing the global (inand a building foretaste he for world turned economic only globe time investment retirement. economyportfolio reels like a drunken economiesactivities, across the

“as were” on its will for now,suffered China sailor, there areithuge economare tell. now But witnessing, head across withinindusthe appears to be COVID-19 ic implications significant devastation infree, the spate of just ONE economic activities have tries and sectors and of course and first two monthsRule of No 2020 and 1 in managing your finances is to stop living from MONTH and we are still across the country. as always, there are losers and resumed the general feeling is that the paycheck to paycheck! No matter how much income you make, watching and gasping at unClearly, the Chinese economy winners. Now officially denightmare is far iffrom over.it all, In you won’t be able to save, or to invest and you spend folding events. As the global (in a foretaste of what other your fell wealth. clared as areels Pandemic global this period, across retailgrow sales bySelf-control and having a good and monitored economy like a of drunken economies the plan globe financial early in life is very key. The simple formula below impact, projections of poten20.5% year on year, industrial sailor, there are huge economare now witnessing, suffered is the key:tialimplications global infections range significant output wasdevastation down 13.5% ic across indusin and the Income – Expenses Savings >Investments > Wealth between 500m at its most fixed asset investment by 25%. tries and sectors and of course first two months of 2020 and =people travel across the globe The first step in achieving this goal would be to go through your conservative andare over halfand of Leading sectors like is its that aviation as always, there losers the general feeling the economic leisure acexpenses, calculate yourfor regular or recurringand expenses and figure the isworld’s (close and motor winners. officially deThere a needNow topopulation take the next step and focusnightmare on other streams is vehicle far fromindustries over. In tivities. out how to cut unnecessary costs. You would have to decide on toearning fourasincome billion of ashuman the keyof tobeings) millennial wealth is “investing”. which are collapsed during this clared a Pandemic global this period, retailhow sales fell by to save more money at the of each monthcrisis by developing As theend coronavirus rages Investing isprojections the act of usingofaseem percentage your income with at its highest. There to of 20.5% period. impact, potenyear on year, industrial cost cutting measures, on, havingmedical a budget and a monthlyin savings facilities the the aim of helping it grow by buying assets that might increase tial be noglobal doubt infections in anyone’s range mind output was down 13.5% and liabilities but rather assets- If the expense goal. Stop acquiring most advanced nations are in value, such500m as stocks,atproperties or shares while savings on between its most fixed investment by 25%. that this is the most drastic fate Otherasset major economies like is not helping to generate more income, cut it. It won’t happen overwhelmed. Leaders and people travel across the globe the hand is putting money aside gradually into a bank account. conservative and over half of sectors like its overnight as sacrifices have to be made. It could be sharing an that has befallen the world in Leading the United States of aviation AmeriWith investing in stocks , one gets the benefits of compounded for economic and been leisurecomaccitizens alikecosthave apartment with housemates to reduce or reducing eating the world’s population (close and motor vehicle industries the lastwith century to todate. ca, the United Kingdom and tivities. interests, the ability comfortably accommodate more risks pletely blindsided. Nigeria’s out in order to have a positive cashflow. The more money you to four billion beings) arehave collapsed during this Europe not fared much as opposed to whenhuman in your 40s and 50s ofwhich which you would As the coronavirus rages stock market shed are able to save, the more money you can use NGN2.2Trn forcrisis investments. at its highest. There seemcastoThis article period. be conservative in your strategy.. aimswith to give Asmore at the last count, global better, theseThemarkets still on, medical facilities thea in two and the in bloodhardest part in achieving thismonths goal would be making saving be doubt anyone’s mindlasting practical steps for in millennials creating wealth. es no were 402,054 within 17,507 counting their habit losses as of the most advanced nations are as years consumption andfrom pressures by society to lettinghabits is far over. that this is the most drastic fate Other major economies like deaths, with all 195 countries Coronavirus pandemic overwhelmed. Leaders and look and act cona certain way don’t helphas you outnow with living a frugal Nigeria recorded What has Are the Common Mistakes Millennials Make? that befallen the world in the United States of Ameriof the world affected. The tinues to cause massive human have been comlifestyle. This is why it’scitizens important tocases set goals you have over 40alike of before COVID19 The challenges facing to millennials from the the last century date. differ from those faced United Kingdom and financial to makein important choices.blindsided. The big picture or end game pletely Nigeria’s top 3 hit countries are China, ca, andthe economic losses these including very senior public older generation as the workplace of this generation has changed. Europe have notwillfared much helpof you say no to unnecessary expenses that derail you from stock market shed NGN2.2Trn Italy and the United States of nations. On the back these Economic is slower, incomecasinequality has escalated, officers and personalities. Our As at thegrowth last count, global better, with theseyour markets still investment goals. in two months and the bloodAmerica with 81,171, 63,927 developments, the Internacheap labour has increased, employment benefits have also been economy has also witnessed es were 402,054 with 17,507 counting their losses as the letting is far from over. lowered. Even with infections all these challenges, millennials still make and 46,168 and tional Monetary Fund (IMF) other drastic adverse impact deaths, with all 195 countries 2. PAY YOURSELF Coronavirus pandemic con- FIRST. has now recorded mistakes that addand up to582 the economic factors. are; 3,277, deaths re- Some has ofinwhich acause statement issued on Nigeria ina the shortest with crude of the6077 world affected. The tinues to massive human over 40 casesoftime of •spectively. Spending wayIn over income thereby accommodating a lifestyle This involves saving percentage yourCOVID19 income for Africa, the worst Monday 23 March forecasting oil of prices crashing over top 3 hit countries are China, and economic losses in these they can’t afford investment. A percentage your income tofrom be set aside including very has senior public hit are Africa, Egypt that COVID -19 will help trigger Italy andSouth the States of that USD60to below USD30 and nations. On the back these • Accumulating badUnited debts. These are debts do not increase so as toof grow your net worth and make passive income. officers and personalities. Our and Algeria. a global recession that could America withincreases 81,171, 63,927 developments, the Internapredicted to fall USD20 income but rather liabilities. Irrespective of the income you’re making, you to have to make economy has also witnessed bein worse than global fi- other and infections and tional Monetary Fund (IMF) • Having46,168 no Emergency Fund to fall back to situations of athe decision, a decision we could term as adverse the whilst the yield on most FGNimportant 6.75% drastic impact China,6077 where pandemic nancial offinancial 2008-2009, incapabilities or recession. decision life, shortest which issued is totime takeatawith of 3,277, and the 582 deaths rehas in a crisis statement issued on of your Eurobond aminimum yield of in the crude •first Having no Retirement 10% or even more keep it inspiked a savings for broke outAfrica, hasPlan today been Monday but with 23 a hope of recovery in and spectively. In the worst March forecasting 7%, has to account 12.8%. In oil prices crashing from or over Do note that, the more you save – the more hit are South declared whollyAfrica, free ofEgypt CO- that 2021.COVID -19investments. will trigger response, the Central Bankand of USD60to below USD30 funds you could have available for investments. and Algeria. that VID19 bringing both a ray a global recession Nigeria, CBN marked predicted to has fall now to USD20 worse than the global fiOnce again, the world’s econoof hope that the virus can be be whilst on FGN down the yield exchange rate6.75% of the China, where pandemic of 2008-2009, mies are crisis witnessing the under- Eurobond fought to a haltthe(not without nancial issued at aNGN360 yield of USD for NGN from first broke out todayand beena but hope of recovery in 7%, has spikedtotoNGN380 12.8%. In bellywith of aglobalization. Hand significant loss has of lives) to NGN376 to declared free of ofCOthe Central of in hand with opportunities response, specter ofwholly the huge costs the 2021. USD1. With the fallBank in deVID19 a ray CBN has now such as access to both global Nigeria, attack ofbringing the virus both to a Nation. mand from China andmarked Saudi/ again, world’smarkets econoof hope will thatbe thelong virus can be down exchange of the funding andtheglobal If there lasting ef- Once Russiathe price war, rate Nigeria is mies are witnessing the underfought to a halt (not without for NGN fromchallenges NGN360 for domestic companies, come USD fects of the nature and quanreportedly facing belly of globalization. Hand significant loss of lives) and a NGN376 to NGN380 to vulnerability to borderless cri- to tum of antiseptics sprayed moving its crude at an acceptin hand with opportunities specter of the huge costs of the With the fall in desis such as “imported” finan- USD1. liberally, drugs administered able price. such as access to both global attack of the virus to a Nation. mand from China and Saudi/ cial crisisand and global now borderless We appear headed back to to the victims and of the near funding markets If there will be long lasting efRussia price war, Nigeria is How can Millenials build wealth despite these challenges? Don’t you everas think recession that you earn too half little to able to with of be the prodiseases easily transported total shut down of domestic for domestic companies, come fects of the nature and quanreportedly facing challenges invest, as even small contributions to an investment account vulnerability to borderless critum of antiseptics sprayed moving its crude at an accept1. Prudent Financial Management. can build over time. The important thing is to start early and sis such “imported” finanliberally, able price. This is the firstdrugs and mostadministered important step millennials need toas take. remain consistent. crisis and now Welessappear headed backthey to to victims and of people the near Thethe biggest mistake young make is cial putting off active Whileborderless Millennials save than older generations, recession of the diseases easily transported as time total shut down of domestic benefit from having on theirwith side. half Retirement is prolikely

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Brought

A variety of different assets exist today, including certificates of deposits, corporate and government bonds, real estate, corporate securities, commodities, and precious metals. The aforementioned are available, each with distinctive investment of safety, return, and liquidity. Though each asset tcharacteristics o you by has its proponents, only those with the knowledge, experience, and risk profile can invest. However, as millennials, it is best to seek professional advice in creating a proper investment portfolio.

When investing: • Think long term Investing is a game of risk and reward. Some assets are essentially risk free - meaning you will not lose money. As a result, they don’t earn a lot over time. Equities, on the other hand, are more risky, and they historically return more over time. 3. HAVE AN EMERGENCY CUSHION As an investor, your age is a big factor that determines the level shopping. As we all change down of supplies of drugs, of risk you can take. People who are younger have more years This is another great step in building wealth. Most financial our mode of work, school and manufacturing tools, proof earning and growth available, which allow them to take more experts have advised that one should play, alwaysthe haveTechnology, a Online duction etc. from financial risks by building aggressiveequipment portfolios subject to volatile minimum amount of your 3-6months salary saved and Online in Education, GamesLater andin life,China a huge lesson on the fluctuations. you mayis favor lower risk investments or interest yielding investment. imperative oflastbackward inteDigital Technology and Netf- such risk-free investments, as bonds. The thing you want is a big drop in your portfolio right before retire. Set yourself up gration andyouhaving control of lix could be winners. for success by starting early, investing equities, and watching supply lines.in With government yourall portfolio grow for decades. Why should you start as shopping. AsLessons we change down of local supplies ofas early drugs, backing, manufacturers Investment possible? Because speed up compounding. our mode of work, school andyou can’t manufacturing tools, pro-

30 to 40 years in the future, so establishing a savings program today, maximizing contributions each year, and wisely investing the proceeds should allow them to enjoy their golden years without financial worry.

It is essential in investing to

play, the Technology, recognize the impact ofOnline boom Education, Online and (when luxuries likeGames cars, perDigital Technology Netffumes, fashion items,and holidays, lix could be winners.

should explore opportunities

duction equipment etc. from to redesign their models. China is a huge finally lesson on the As governments underimperative of backward intestand the critical importance gration having control of of the and entire health sector resorts and cruises thrive) and supply lines. With government value chain particularly pharburst markets when only essenNow more than ever before, the importance of this cannot Lessons backing, local manufacturers Investment maceuticals, medical investigatials are required. This means be stressed enough in these COVID-19 times. A lot of in investing should explore opportunities It is essential to tions, equipment production your faced diversification decisions people have lost their jobs and/or have recognize been with to redesign their models. the impact of boom andgovernments primary healthcare. The income loss in the past few months all must becausegoof the beyond As finally under(when luxuries like geographicars, perjected oil revenue in jeopardy, shutdown. An emergency fund is that lifesaver would Nigerian government which cal, that asset classitems, (equity versus stand the critical importance fumes, fashion holidays, andindividuals foreign exchange help stay afloat inreserves this period ofdebt) job losses sectoral and has the traditionally investedsector very the of entire health resortsand and cruisesissues thrive)toand uncertainties. It willpressure prepare you setbacks under intense if for theunexpected little in health and education nature of thewhen products of the value chain particularly pharburst markets only essenand reduce Government your dependencecontinon borrowing money, most Federal is clearly facing theinvestigaimplicacompanies whoseThis securities maceuticals, medical tials are required. means likely at defend high interest It should be assessable, liquid ues to the rates. Naira. tions ofequipment such choices now. The you invest in. This way you en- tions, production diversification decisions and put in a low risk investment vehicle. your Everyone seems to be count- must Central Bank healthcare. of Nigeria The has primary sure that entire portfolio and go your beyond geographijected oil revenue in jeopardy, ing losses as economic activi- cal, signaled a government changing approach Nigerian which class (equity is notasset losing at the same versus time. 4. INVEST IN YOURSELF Compounding returns are the driving force that makes investing and foreign reserves tiesbest grind toexchange a halt, businesses The investment you can make is not indebt) real estates norerosion has traditionally invested with its recent decision, (as very part and sectoral issues to the when The global of especially value powerful, you’re young and you have time on under pressure if the face reduced instocks or intense business activities but rather inand one’s self”- Warren Buffet. little in NGN3Trn health and COVID19 education nature of This the the oflet its on account ofproducts ayour major disasside. of The longer you your money grow in the market, the Federal Government continquote is very you cannot invest companies or build wealth ifwhose securities comes yet practical higheras operational is clearly facing theand economic package) workter like this doesmore notlikely erase youthe are to have a positive outcome. Bear inimplicamind that ues to defend the new Naira. you are not yourself. There are skills that needin. to This way you encosts to developing meet governtions of such choices The you invest ing iswith the Bankers’ Commitinvesting for theoflong term more likely to providenow. you with a underlying intrinsic value be learnt, investing confidence should gained as well as Everyone seems to be that countCentral Bank of Nigeria has ment-imposed standards (e.g besure that your entire portfolio better outcome. The stock is a volatile the place — however, tee,market to support country’s of well-run compahabits. All the as most successful people in the the worldstocks understand ing losses economic activisignaled a approach notwith losing at the same for Public Transporters, banks, is over time, time. it tends upward pharmaceutical andchanging provide positive returns. leading comnies viable products andto trend that investing self helps create higher returns. The more ties grind in toone’s a halt, businesses its to recent decision, (as part The global demand erosion over of value shopkeepers) where they’re panies import and produce established time. with skills learn, theactivities more moneyand you make the line. If you faceyou reduced in- down Invest on a regularof basis its NGN3Trn COVID19 account a• major disasnot tocompletely needed drugs, through FX fawant earn more, you shut todown. learn more.on Read widely andof prices So depressed offer an comes yet higher have operational be successful in anyeconomic facet of life, there is one thing which is package) and ter like does Tonot erase the Restaurants, Clubs, seek to gain knowledge on wealthPlaycreation, stocks, readthis about cilities. As initiatives likeworkthis opportunity to invest again in costs to meet new governmost important – discipline. By regularly investing, Commitrather than ing with the Bankers’ underlying intrinsic value of sectors that interest you. grounds and businesses concontinue, it is expected that, companies with strong fundahaving your money idle,tee, you’llto havesupport more money available in the ment-imposed standards (e.g the country’s the stocks of well-run compasidered non-essentials are shut thisgetspace is expected to open mental. long run, even if you don’t goodpharmaceutical investment returns. for Public Transporters, banks, leading comnies with viable products and 5. CREATE A PORTFOLIO down. Others like banks are to up immediately. Investing in equities that you don’t have immediate The current crisis isover likely to means shopkeepers) panies to import and produce A portfolio is a groupwhere of financialthey’re assets such as equities, bonds, established demand time. access your money, and this is a good thing. 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As we continue, funds. grounds businesses conit continues is expected that, companies with strong fundaspending. the huge the scourge with When you non-essentials invest, you needinadequate toare knowshut how to split yourhow portfolio sidered learn effectively we can this spacehumanitarian is expected toimpact open mental. up between equity income, versus bonds. To COVID19 pandemic, the ecoresources andand at fixed great risk down. Others like banks areortostocksThe work and learn remotely, the up immediately. current crisis is likely to Investing part of your excess monthly income on a regular basis figure that out,skeletal youfor need to knowgoods more than just how you feel nomic also life. Demand luxury maintain operations. potentials certain technolbring in itsofwake accelerintoan mutual funds is how retail implications investors should cannot ideally access about investing, endeavor to get a financial advisor to assist be In increase managing The medical operators are and fashion items and groomthe financial markets inConclusion orderoverlooked. to spread their risk, their ogy products become evident. ated shift in the way we work, you in creating a portfolio. A portfolio is important in order to thethe adverse fallouts, markets open butnaturally struggling to battle As world battle gains and capital continues they can useto for their ing has dropped as learn do As we Thisin could be business. a potential good time to accumulate share the risks of each security. 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Thehas pharmaceutical industry, may funds, look at harnessing and rethe more your capital will compound and the greater and Emerging investors must critically exchange-traded (ETFs). issues people tacklefunds existential VPN, online edAfrica Capital laboratories, medical equip- invest tainingmore the in efficiency gains your final returnsof will be.The The EAC Group can help you set up your examine for artificial Group strategy, isthea opportunities leadingaround African ownintelligence regular monthly designed your ment, home delivery food, ucation, remote and flexible working by investment realignment of investment priAre there any Winners at and digital technology. personalphysical needs. We willprovider help you putofyourCapital money to Raising, work so it food marts, supermarkets and reducing office space, asset of all? looking companies can grow over the long orities, term. 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Thursday 28 May 2020

BUSINESS DAY

news Patients shun hospitals on coronavirus... Continued from page 1

BusinessDay. “What scares

me is people saying it’s going to take years before the virus fades out and things are not ever going back to normal.” In the wake of the coronavirus crisis, Nigerians have been increasingly anxious of a higher risk of exposure to the pandemic in hospitals than in other public places. Many still summon the courage to use public buses or visit crowded markets but seem especially fearful of seeking medical intervention in hospitals even when needed. Some, such as Kachi, have had their elective surgeries deferred on the altar of fear, while others even with terminal and underlying illnesses demanding routine medical check-up have left their health to suffer longer than necessary before presenting their case at hospitals, a trend which Oluwajimi Sodipo, a family consultant, warns is dangerous. Major government-run hospitals, including the Lagos University Teaching Hospital (LUTH) and General Hospital Bwari, Abuja, have long restricted operations to essential services like accidents, hypertensive, diabetic, cancer emergencies, and acute conditions. The National Health Management Information System (NHMIS) data show outpatient visit dropped from 4 million in pre-coronavirus period to about 2 million; antenatal visits from 1.3 million to 655,000, skilled birth attendance from 158,374 to less than 99,000, while immunisation services reduced to about half. Patients needing nonessential care including elective surgeries now have to look in the direction of private hospitals. But instead of an expected surge in patient presentation, few private hospitals can attest to having their facility overrun. In fact, there appears to be less incentive for private hospitals to run at a time when testing kits are scarce and the cost of arming health workers with PPE has shot up unimaginably. BusinessDay in an April 28 report found that many hospitals couldn’t afford to kit their doctors and nurses as it cost N25,000 or more to kit a doctor or nurse properly each day with PPE. “Patients are afraid to come to the hospital, seriously. No business. They think they will contract the virus in the hospital,” a Lagos hospital owner said. “And no one is giving us palliatives like PPEs to be bold to even attend to those who brave it and come. No testing kits.” Babatunde Palomeras, managing director, J-Rapha Hospital, Lekki, had the

same to story tell. In the Federal Capital Territory, Abuja, hospital owners lamented that the pandemic has led to a decline in patients’ inflow with most patients resorting to self-medication. The few who manage to approach hospitals struggle to pay bills, Jonathan Esowanne, founder of Summit Hospital, said, explaining that his businesses had been battered. The situation isn’t different for Finbas Odey, manager and founder of Brighter Life Hospital, who says it is easier passing a camel through the eye of a needle than convincing some patients to approach the hospital. Only those who are in critical condition which self-medication can’t handle seek help – a situation he describes as an offshoot of ignorance of the implications of staying away from the hospital. Odey fears that Nigeria risks more infections should people who contract the virus avoid the hospital and end up transmitting it to others. BusinessDay’s visit to some FCT hospitals found that most do not have PPEs and some do not adhere to preventive guidelines, particularly hand hygiene, social distancing or the mandatory use of face masks. Strategies devised However, all is not a tale of gloom as hospitals are equally devising strategies to maintain communication with patients and keep their health under control. Brighter Life Hospital in Abuja, for instance, has devised a strategy to use an online platform in interfacing with patients without hospital visits. Lanre Yusuf, a medical doctor at a private hospital in Lagos, confirms some doctors have found a new way of working – conducting appointments by video and phone. Though a state-run hospital, the Lagos State University Teaching Hospital (LASUTH) is also using the technology of telemedicine to monitor several cases and guide them on measures to be taken. “We need to start using some of the mechanisms we have, especially e-medicine and telemedicine, so that if people cannot present physically, they can still reach healthcare experts,” said Sodipo, who was quoted earlier. “In my clinic, we call those who have registered to find out about how they are doing, discuss the medications they are on, and check complaints. For those that need to come to the hospital, we advise them and it has been working out fine. It is something every hospital should try to key into,” he told BusinessDay. www.businessday.ng

L-R: Shina Olukolu, Oyo State commissioner of police; Rauf Olaniyan, deputy governor, Oyo State; Seyi Makinde, governor; Abdulmajid Ali, deputy inspector-general of police (operations); assistant inspector-general of police for Zone XI, Bashiru Makama, and Oba Oyetunji Kofoworola, Aare of Ago Are, at the inauguration of patrol vans and No. 72 Squadron Police Mobile Force in Ago-Are area of Oyo State, yesterday. NAN

Gambari in quiet push to re-direct the... Continued from page 1

aside established collab-

orative working protocols. He also centralised considerable policy-making and executive power in himself far beyond what had become known and through three presidential tenures as the established role of a chief of staff to the president. This antagonised many in government and ensured that only what he (Kyari) wanted got the attention of President Muhammadu Buhari. The late CoS was said to have set up a secretarial clearing house with three key staff deployed during the tenure of Lawal Daura as DG of SSS and who worked as secretaries to Abba Kyari. This system bypassed the entire administrative/document-processing system institutionalised in the State House over the previous three presidential tenures. This structure was supported by a court of senior aides, including Fola Oyeyinka, Faruk Gumel and Abdulmuttalab Mukhtar who had the official titles of senior special assistant to the president but who, by virtue of their being part of Kyari’s working inner circle, exercised power far beyond their titles, job descriptions and authority. A fourth member of the group is one of the president’s special assistants co-opted by Abba Kyari to ensure the flow of documents to the president as preferred by him. This group of special assistants is led by Oyeyinka, who first came to Kyari’s attention by virtue of his marriage to a lady who happened to be very close friends with Aisha, Kyari’s daughter, herself a vice-president at the Nigerian Sovereign Investment Authority [EE1]. BusinessDay learnt that Gambari has been studying the internal workings of State House, Abuja (better known as The Villa) and examining how memoranda on various

policy and executive matters are prepared and sent to the president. Gambari may have been pushed to act after controversy erupted following the dismissal of the erstwhile managing director of the Transmission Company of Nigeria (TCN) by the minister of power, Saleh Mamman. The sack of Mohammed and his replacement by Sule Ahmed Abdulaziz in acting capacity was communicated via a one-page memo by Gambari titled “Re-aligning the Transmission Company of Nigeria with the Presidential Power Initiative”. The interesting thing, however, is that this Presidential Power Initiative is actually a euphemism coined by the late Abba Kyari and his team for the equally controversial $2bn Siemens equipment supply contract being put up by them as the silver bullet to solve Nigeria’s power sector problems. This contract did not pass through known procurement procedures under Nigerian law, was not requested by any of the companies in the electricity sector, was not and still is not part of the Federal Government’s Power Sector Reform Programme and had never been known to be a subject of consideration or approval by the Federal Executive Council. In fact, until the ill-fated trip to Germany by a Federal Government delegation led by the late chief of staff to negotiate terms of this contract, even the minister of power himself was excluded from any intimate knowledge of the deal. This is said by those familiar with standard working procedures of the Federal Government and the Federal Executive Council (FEC) to be not only unusual but also highly irregular. Even before the demise of Kyari, the MD of TCN, Usman Gur Mohammed, was seen as an opponent of the Siemens deal and so before Gambari’s

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arrival, a memorandum was written by the minister of power, accusing the MD of being an obstacle to a deal that essentially had no foundation of support either in the electricity sector or in the Federal Government’s electricity sector reform plans. BusinessDay understands that with the knowledge of aides including Oyeyinka, the minister of power wrote the required memo to the president. It is now not clear when the president actually saw and approved the memo, but it was treated with lightning speed. Gambari who, immediately upon resumption, was presented the letter conveying the purported presidential approval of Mohammed’s dismissal by a member of the Oyeyinka-led group of aides, is now keen to locate all the originating documents supporting the minister’s allegation against Mohammed and the request for his termination. The new chief of staff wants to be sure that the process of the sack aligns with extant, well-articulated “approved disciplinary procedure against chief executives officers of Federal Government parastatals, agencies and departments”,which were summarised in a May 19, 2020 circular to all ministers by Boss Mustapha, secretary to government of the federation. In that memo, the SGF said, “Upon receipt of the submission from the Minister (to request a disciplinary action), the Secretary to the Government of the Federation shall without delay cause an independent investigation and advise Mr. President on the appropriate course of action, including interdiction or suspension in accordance with principles guiding sections 030405 and 030406 of the Public Service Rules, pending the outcome of the independent investigations and it shall be the responsibility of the Secretary to the Government to further advise Mr. President @Businessdayng

on the next course of action, based on the outcome of the final investigation.” Gambari, it is believed, has also made a general call for the location and delivery of all supporting documents that will usually accompany requests and advice to the president. Days ago, a Lagos newspaper reported that as many as 150 memos without the president’s authorisation may have been uncovered. It is now understood that there are also hundreds of memoranda from various ministries, departments and agencies to the president that, for unknown reasons, were left untreated since 2015 by the former chief of staff and so were never delivered to the president for his attention. “There is no power grab in any of the actions of the new CoS,” a senior official told BusinessDay. “The new helmsman simply seeks the effective functioning of the presidency so that the key objectives of the president can be delivered and promptly too.” Abba Kyari had a completely different way of carrying out his duties and was accused by some of emasculating the office of the vice president. He virtually usurped authority from various key MDAs of government and aggregated the powers in his office. This led to gross inefficiency which resulted in the phrase “go-slow” used by Nigerians to describe the pace of action at the presidency. Those with good knowledge of the goings-on over the last four years say rather than be a facilitator of an efficient presidency, Kyari became an initiator and direct executor of government policy. It is into this near chaos that Gambari, the 75-year-old diplomat, has now arrived. With no time to fight anyone but with a firm insistence on getting the presidency to function properly, the new chief of staff is now quietly enthroning his mark on the presidency.

industry Insight

BUSINESS DAY Thursday 28 May 2020 www.businessday.ng

Changing Nigeria’s approach to industrialisation (4) ... of import waivers, value chain Odinaka Anudu

he last three articles on the series have clearly shown that Nigerian cannot continue to do the same thing over and over and expect a different result. They have dwelt upon some of the development errats that have stymied Nigeria’s industrial prosperity. Issues such as inappropriate application of funds, protectionism and policy flip-flops have been discussed and tapped as factors that have caged Africa’s most populous nation’s industrialisation. This week’s piece centres on two other critical issues that have been clogs in the wheel of Nigeria’s industrial progress. This article focuses on the wrong use of waivers and lack of a clear understanding of value chains as critical challenges that have dogged the country’s economy over time. Let’s start by looking at waivers. All countries in the world use import waivers to encourage local manufacturers and make them competitive. In an article entitled ‘Economics of Waivers in Nigeria,’ Nkechi Anyadike and Okechukwu Eme spelt out the objectives of import waivers to include boosting local industries, making essential inputs or goods available in the short-term and generating employment. Several countries have deployed waivers to achieve these objectives. India has waived import duties on open cell panel, which is the most important input used in the production of televisions. The component accounts for almost 70 percent of the entire production cost of TV manufacturers. Before the coronavirus invasion, Indian government had planned to extend this waiver to support Samsung and LG that are producing TVs in India and exporting to countries around the world. Also, Malaysia, in September 2015, announced five to 30 percent import duty exemptions on 90 raw materials used by manufacturers in the country. Import waivers are indubitably tools for supporting local investors to ensure they are competitive in both local and international markets. Nigeria has also deployed import waivers in pursuit of its development targets. Perhaps, one of the most prominent of all the import waivers in Nigeria was that of the cement industry during the time of President Olusegun Obasanjo. The method of deploying the waivers was novel. The Obasanjo administration in 2005/2006 announced intentions to grant all investors who set up local cement plants

import waivers up to a certain quantity and year. This meant that local investors in the cement industry were allowed to import certain quantities of cement without paying duties up to a certain year. The policy produced Dangote Cement. It yielded fruit owing to discipline in the monitoring process and sincerity of the investors. The success of the cement industry today could be attributed partly to this innovative waiver process. However, this same policy was tried in 2012/2013 by the Goodluck Jonathan’s administration on rice production, where local investors were given limited quotas and the maximum period in which they could import rice. However, this generated a lot of controversies as the then Minister of Agriculture and now president of the African Development Bank, Akinwunmi Adesina, accused the beneficiary companies, particularly Asian firms in Nigeria, of sabotaging the policy. More than N20 billion fine was imposed on about seven companies for breaching the waiver agreement, with the Customs fighting to recover the money. No one knows whether the money was eventually paid by the companies or not, but this singular event destroyed a policy that had earlier worked

on cement. It must be admitted that some Nigerian businesses, including foreign companies and their accomplices in the civil service, have always connived to abuse waivers. Perhaps, one sector where import waivers were handsomely abused was in the steel sector with respect to cold rolled coils. A group was granted import waivers to bring in raw materials for making cold-rolled steel during the Jonathan’s administration. This group was to produce cold-rolled steel and supply to another group of local manufacturers who would use it directly to produce drums and other aluminium-related products. The upstream group that was granted waivers, according to allegations, resorted to importing full-fledged coldrolled steel and supplying to the downstream group—contrary to the agreement earlier reached. Of course, such would not be possible without accomplices in the Federal Ministry of Industry, Trade and Investment and the Customs. In fact, there were allegations that waivers granted to manufacturers and local investors were sold to full-fledged portfolio importers who then dubiously used them to bring all sort of illegal goods into the country. In some instances in the past, waivers were provided

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Apart from waivers, Nigeria’s industrialisation framework is also devoid of proper value chain intellectus. This may sound simplistic but it is one of the biggest reasons why Nigeria is making little headway on its industrial drive

to one company to the detriment of other players in the same industry. This is why the Manufacturers Association of Nigeria (MAN) during the Obasanjo, Yar’Adua and Jonathan’s administrations canvassed that import waivers should be given to all players in an industry, rather than one or two players connected to the powers-that-be. More so, there were allegations that some businesspeople got certificates from government officials and presented them to the Customs as waivers. The Customs eventually honoured same. Hence waivers have proved to work when the players are few—perhaps one to three. This, perhaps, ensures easy monitoring. But it is also dangerous as it can lead to monopoly, duopoly or oligopoly. Apart from waivers, Nigeria’s industrialisation framework is also devoid of proper value chain intellectus. This may sound simplistic but it is one of the biggest reasons why Nigeria is making little headway on its industrial drive. In the cassava value chain, for example, anyone interested in cassava flour needs to consider the quality of seed, inputs, the farmer, the labour, harvesting, processing, logistics, marketing, sales, and industries, among others. Any time a government looks at cassava as a mere product or an end in itself, it will end up repeating past mistakes. This accounts for why the Cassava Bread Policy failed. The policy was made with the mere belief that Nigeria was (and is still) world’s largest producer of the tuber. Less attention was paid to the fact that for bakers to use cassava flour, they must get high quality cassava flour, which should first of all start with the quality of seed planted by the farmer. But mere lip service was paid to research institutes, which should convey high quality seeds

to the farmer. In all countries of the world, research institutes are funded with billions of dollars. In the United States and China, universities are well-funded and they serve as research institutes where farmers can get such high quality seeds. But this is not so in Africa’s most populous country, where lawmakers are better funded than universities and research institutes. Nigeria may not have billions of dollars like the US and China, but how it is allocating its scarce resources is questionable and regressive. “We have a total of 13,000,000 staff members and 90 percent of the yearly allocation goes into salaries and emoluments. Only 10 percent goes into research. This is why the institutes have not been able to improve farmers’ output,” Baba Yusuf Abubakar, former executive secretary of the Nigerian Agricultural Research Council (ARCN), told BusinessDayin February this year. “We cannot conduct effective research with such stipends. Research plays a pivotal role in transforming the agricultural sector and that is why we must take it very seriously,” Abubakar further said. Apart from research institutes, think about other issues in our case crop, which is cassava. To produce cassava bread, farmers must process cassava into flour. Only very few farmers can afford good processing equipment for flour, added to the fact that the process is technical. How many Nigerian smallholder cassava farmers can afford equipment that costs above N5 million to N10 million? Assuming that big-ticket processors are involved in cassava processing, will they be guaranteed quality cassava crops? Will they even make profits from their ventures, considering the cost of energy to power their machines? Also, consider the logistics. Should bakers move their trucks to the farm or will farmers hire trucks to move the cassava to the bakery? These are many questions which are often unanswered. Unfortunately, they end up hurting industrial policies in Nigeria. In other countries of the world, cassava is used to produce beer. In tiny Mozanbique, cassava is used to produce Impala beer by SABMiller, which is also in Nigeria. Diageo is also producing beer from cassava. Why then is it difficult for brewers to produce beer from cassava, especially when Nigeria is world’s largest cassava producer? The simple answer has been highlighted, and except issues around the value chain are tackled with policies, Nigeria’s industrialisation dream may continue to drag.

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