Businessday 29 jun 2018 by BusinessDay

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news you can trust I **FRIDAY 29 JUNE 2018 I vol. 15, no 86 I N300

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World Bank approves $2.1bn for health, power projects

NNPC remittance to federation account unacceptable - Adeosun

HOPE MOSES-ASHIKE & Tony Ailemen

he World Bank said on Thursday it had approved a total of $2.1 billion in concessionary loans to fund projects in Nigeria aimed at improving access to electric-

9 feared dead, 53 vehicles burnt as tanker explodes in Lagos JOSHUA BASSEY & MIKE OCHOMA

bout nine persons were on Thursday feared dead as a petroleum tanker laden with fuel upturned and exploded on Michael Otedola Bridge, near Berger, on LagosIbadan Expressway. Adesina Tiamiyu, the general manager of Lagos State Emergen-

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Inside

CCNN announces merger plans as stock becomes top performer in H1 2018

IHS shelves $10bn IPO until after Nigerian presidential election P. 2

EMEKA UCHEAGA & DAVID IBIDAPO

ement Company of Northern Nigeria has officially disclosed plans of a proposed merger with Kalambaina CeContinues on page 4

World Cup Result Senegal 0 - Colombia Japan 0 - Poland England 0 - Belgium Panama 1 - Tunisia

1 1 1 2

Babatunde Fashola (2nd r), minister of power, works and housing; Aliko Dangote (r), chairman, Dangote Group; Segun Awolowo (l), executive director/CEO, Nigerian Export Promotion Council, and Femi Otedola (2nd l) chairman, Forte Oil plc, during the maiden edition of the conference of ideas tagged BRF GABFEST 2018 with the theme, “The Youth in Nigeria: Mapping the Future,” to mark the 55th birthday of the minister at the City Hall, Lagos, yesterday.

Anambra targets number one investment destination Emmanuel Ndukuba, Awka

….to double rice production in three years

nambra State is targeting to become the number one destination for investment in the country even as the state may have attracted investments worth $4 billion over

the last four years, Commissioner for Information and Public Enlightenment, Don Adinuba has said. He said this during the courtesy visit to the state by Charles Nworji the Director; National Orientation

Agency (NOA). Adinuba said that the state has been able to attract significant amount of investment because of

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See inside

2 BUSINESS DAY NEWS

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Nigeria must grow non-oil sector by 15% for 10 years to recalibrate economy – Duke Zebulon Agomuo

or Nigeria to recalibrate its economy, it must grow the non-oil sector by 15percent for 10 consecutive years, Donald Duke, a former governor of Cross River State, has said. Duke, who spoke exclusively to BusinessDay, said the need to recalibrate the economy became necessary because in another 10 years Nigeria’s population will be 230 million. “Our GDP today is under 500 billion dollars; we need to be a 2.5 trillion-dollar economy to sustain the growing population,” he said. The former governor, who recently declared his intention to contest the 2019 presidential election, on a yet-to-be-disclosed platform, also noted that the restiveness in some parts of the country and feeling of discontent in Nigeria have some correlation with the current biting economic realities in the country. “A lot of the discontent in Nigeria is triggered by economic dislocation; people have no stake in this country. So, you need to get people to see themselves as stakeholders in this country,” Duke said. According to him, “Whether it is Boko Haram, herdsmen crisis, militancy – it is purely economic.” He also pointed out that part of the reasons for the restiveness in the North East was the death of textile companies in those areas. “The North East used to be one of the world’s largest cotton belts. States

such as Adamawa, Taraba and Borno competed with Mississippi. We had textile companies in those areas, but as long as we allowed cheap imports from emerging China and South East Asia and India to come in, our local factories could not compete; and as long as they could not compete, they shut down, when they shut down cotton growing ebbed in Adamawa. “That was the genesis of all these Boko Haram crises. So, agriculture and industries are related. One must be there to drive the other. You cannot develop industries because of the high interest we are having. Some of the companies that claim they produce locally import and repackage. They cannot compete if they manufacture in-country,” he said. He emphasised job creation as solution to youth-related crimes, citing his experience while as governor of Cross River. “We did something in Cross River when we wanted to build the water scheme. They were going to use mechanical diggers to put the pipelines all over; I called the contractor and said to him, you are not going to spend all this money and people won’t feel it; so, we are going to get people to dig the trenches for you to pass the pipelines; he said no; it would take too long; but I insisted and say I am the client, it is either you do what I want or… So, he agreed. I tell you, for the 12 months that the programme was going on there was no reported crime in Calabar,” he said.

he Central Bank of Nigeria (CBN) has ruled out an interest rate cut in near term, expressing fears that loosening its monetary policy stance at this time could exacerbate fiscal challenges in the economy and worsen inflationary pressure which it is trying to contain. Moses Tule, CBN Director of Monetary Policy at the Central Bank ofNigeria (CBN) told journal ists on Thursday in Abuja that cutting the Monetary Policy Rate (MPR) which the apex bank has retained at 14 percent and kept for the 10th straight time as well as other benchmark lending would trigger adverse consequences, including the demand for increased wages. “When you reduce MPR, of course, the way the fundamentals are today, you are going to have the impact of that in other ways; which means the demand is going to be higher on the government to increase wages because inflation will erode the living wage.” The CBN announced last month that it was waiting to see how far the huge anticipated spending from a combination of the over N9 trillion 2018 budget, expanded monthly disbursements by the Federation Accounts Allocation Committee (FAAC), election spending, among others could have on price stability before deciding on how to move rates. “We have to choose between

IHS shelves $10bn IPO until after Nigerian presidential election

HS Towers has postponed an initial public offering that would have valued the company at as much as $10 billion, Bloomberg reported citing people familiar with the matter. The delay comes on the back of concern the sale may take place too close to an election in the home market of IHS Towers in Nigeria. Africa’s largest tower company, whose shareholders include Goldman Sachs Group, Wendel

and MTN Group was seeking to raise about $1 billion in New York. The share sale may now be postponed until 2019, the sources said. A representative of IHS Towers declined to comment. IHS Towers joins Helios Towers and Eaton Towers in deferring plans for a listing in 2018. All three had been seeking to cash in on a booming African phonemast industry, boosted by rising wireless device use amid growing

populations and a surge in mobile subscriptions on the continent. The listing of Lagos-based IHS will be deferred until at least after the Nigerian presidential elections scheduled for February. Investors are also seeking additional certainty around the planned sale of struggling HIS customer 9mobile, Nigeria’s fourth-biggest mobile-phone company, to Teleology, according to one of the people.

Continues on wwwbusinessday online.com

CBN fears rate cut will heighten monetary, fiscal challenges Onyinye Nwachukwu, Abuja

Friday 29 June 2018

having to improve infrastructure and interest rate will come down overtime and the whole economy will benefit or reduce interest rate now and then worsen inflation,” Tule argued, fielding questions from journalists. Reacting to concerns that there is no convergence between monetary and fiscal policies, Tule explained that this was not true, and that the fiscal and monetary authorities have rather come up with measures that helped the country restore economic growth. Citing the nation’s reserves now at about $48 billion, Tule said it was CBN’s tactical foreign exchange measures that led to the steady accretion being celebrated and had provided buffers in the past few weeks to temper the pressure caused by the normalisation of interest rateS in the United States of America. Tule equally commended fiscal measures put in place by the government, particularly the decision to look towards offshore borrowing in order not to crowd out the private sector. But speaking earlier at the colloquium, and in a panel discussion on “Fiscal and Monetary Policies for Deepening the Capital Market in Nigeria,” Tule had pointed out that one of the derivatives of the structural policies is that “the market determines what the interest rate is. Continues on wwwbusinessday online.com

L-R: Audu Ogbeh, minister of agriculture and rural development; Ibukun Awoshika, chairman, First Bank of Nigeria Limited (FBN); Okechukwu Enelama, minister of industry, trade and investment; Adesola Adeduntan, MD/CEO, FBN, and Remi Oni, executive director, corporate banking, FBN, during the opening ceremony of First Bank Agric Expo 2018 - Innovating for Sustainable Green Economy in Lagos, yesterday. Pic by Pius Okeosisi

Nigeria’s Oranto Petroleum acquires two Zambian oil blocs

ranto Petroleum and its sister company Atlas has signed an agreement which gives it 90 percent stake in two onshore Zambian blocks 17 and 27, a deal which increases the company’s operation into 12 jurisdictions from 11 and raised its oil and gas licenses by two to 24. This is the company’s first investment in a country that has ambitions to diversify its economy from copper production to oil. By virtue of the agreement, ZCCM Investment Holdings, investments holdings company with diversified interests in mining, energy and other sectors of the Zambian economy in which the country has significant shares, will control a 10 percent share, on behalf of the Zambian Government. The agreement requires conducting geological and geophysical studies for first two 2-year sub-periods “Oranto Petroleum is committed to an aggressive work program to increase the level of prospectivity in one of the world’s last true frontier markets,” said Prince

Aurthe Eze, Chairman of Oranto Petroleum. “Our specialty at Oranto Petroleum is discovering the vast potential of Africa’s frontier oil and gas markets, and we are very pleased to add Zambia to our extensive portfolio. We are committed to developing Zambia into an oil and gas producing nation, as we have many times with other countries on the continent.” However, the company’s strategy is unclear because while it is ramping up acquisition of oil and gas licenses across the continent, there are many companies bidding to snap its African oil assets. Indian firms Bharat, ONGC (state-owned), China’s Yanchang and Russian oil major, Rosneft are jostling to acquire the oil assets of Oranto Petroleum in African countries according to Africa Energy Intelligence reports According to the rep or t, Bharat, ONGC, and Yanchang were also eyeing Oranto’s Senegalese assets: Cayar Shallow, acquired in 2008, and Saint Louis Shallow, signed in 2015. In Ivory coast, the government

cancelled some of the firm’s permits due to lack of activity giving the impression that it maybe amassing more portfolio than it can manage. Oranto Petroleum and its sister company Atlas Petroleum International comprise the largest African independent by acreage, with active exploration and production programs across the continent, including Benin, Equatorial Guinea, Ghana, Liberia, Namibia, Nigeria, São Tomé and Príncipe, Senegal, South Sudan and Uganda. Current operators in Zambia include Tullow Oil and Bowleven. Though only marginal finds have been discovered, the underexplored market shares basins with Tanzania to the northeast and Angola to the west — both of which have hosted mega oil and gas discoveries. Operating as sister companies in the West Africa region since 1991, Atlas and Oranto now operate throughout Africa, with regional offices and representatives in all our core investment locations.

Friday 29 June 2018

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World Bank approves $400m for Nigeria’s erosion, watershed management project CYNTHIA EGBOBOH, Abuja

he World Bank has announced an approval of $400 million to help facilitate the implementation of the Nigeria Erosion and Watershed Management Project, among others. According to the World Bank, the project is aimed at supporting Nigeria in building its climate resilience and meeting her National Determined Contributions while scaling up the issuance of Green Bonds to leverage more financing for sustainable development and promote innovative. The project also targets integrated approaches based on international best practices and community participation to tackle land degradation and major gully erosion formations in participating states. “The Federal Government of Nigeria’s Economic Recovery and Growth Plan identifies human capital investment, restoring growth, and building a competitive economy as its key pillars,” Rachid Benmessaoud, World Bank country director for Nigeria, noted on Thursday in a statement from the bank’s office in Abuja. “This vision for a healthy, educated, productive and resilient population must be complimented by credible governance in order to attract private sector participation and ensure sustain-

able growth. “The approved projects support the implementation of the government’s growth plan,” he said in the statement mailed by Olufunke Olufon, senior communications officer at the bank. In the statement, Olufon also confirmed that that the World Bank Group had extended its Country Partnership Strategy for Nigeria until June 30, 2019. During FY2018 and FY2019, the Group’s support will focus on revenue diversification and mobilisation, addressing the binding constraints for attracting private financing, and improving social services delivery for building the human capital needed for inclusive economic growth, in alignment with the Economic Recovery and Growth Plan. Other projects approved by the World Bank group include: Nigeria’s investment in nutrition, access to electricity, states’ fiscal transparency, polio eradication, women’s economic empowerment, public finance and national statistics. The State Fiscal Transparency, Accountability and Sustainability Project will help increase efficiency in spending, strengthen revenue mobilisation (of critical importance for the delivery of health, education, water and other services) and debt sustainability in participating states. This will help build trust in government, enhance the

monitoring of fiscal risks and facilitate accountability in public resource management and to be financed by an International Development Association (IDA) credit of $750 million, while the Fiscal Governance and Institutions Project will improve the credibility of public finance and national statistics in the country. Fiscal governance, a key foundation for all other publicsector reforms will help increase revenue and capital expenditure outturn, strengthen fiscal accountability including for expenditure effectiveness and to improve the quality of statistical information, which would contribute to evidence-based policy making and financed through an IDA credit of $125 million. Also included is the Nigeria Electrification Project, which, according to Olufon, will leverage private sector investments in solar mini grids and standalone solar systems to provide electricity to 2.5 million people and 70,000 micro, small and medium enterprises. It will also provide publicly funded reliable electricity to seven universities and two teaching hospitals and will support the development of a sustainable framework for expanding electricity access in Nigeria over the long term and financed through an IDA credit of $350 million as well.

3 NEWS

BUSINESS DAY

Wike wants reorganisation of security architecture to bring in fresh ideas … says BusinessDay merits ‘Voice of Business’ status, right to economic summits IGNATIUS CHUKWU

ove r n o r Nye s o m Wike of Rivers State has called for the reorganisation of Nigeria’s security architecture in the face of persistent killing of innocent Nigerians, saying a re-jig would enable people with fresh ideas to come in. The governor said it was wrong for armed herdsmen to continue slaughtering communities from town to town. According to Governor Wike, BusinessDay merits the status and appellation of ‘Voice of Business’ in Nigeria, and that Nigeria’s only daily business and financial newspaper is eminently positioned to host investment or economic summits and roundtables around Nigeria. Wike spoke Thursday morning when he played host to BusinessDay management that visited to communicate result of the 2018 States Competitiveness and Good Governance Award. The newspaper disclosed that Wike won as the Best Governor 2018, after a research-based but painstaking screening system. He said: “We must talk of re-jigging the security archi-

tecture. The present setting is not yielding results. We must introduce persons with new ideas and new thinking to check the ugly trend of insecurity.” Speaking on the adverse effects of insecurity and terror on the economy, Wike said that the current approach to national security was no longer functional. “This time, criminality is targeted at some communities. “Every time when they kill over 100 innocent Nigerians, the security agencies claim that three persons have been arrested. After the deaths, they announce that special forces have been deployed to invaded communities. Will the special forces revive the slain persons?” He regretted that most of his colleagues (governors) were not interested in working for the people as they are now more concerned with battling for second term. To him, some governors, rather than stand for the people in terms of the growing insecurity, prefer to hobnob with the President, begging for second term support. On the BusinessDay Newspaper Governor of the Year Award, the governor

said it would spur him to greater service, saying the criteria used by BusinessDay made it worthy to be associated with the final result and the award itself. While dedicating the award to the people of Rivers State, he noted that the success of his administration was a function of the support of the people. Earlier, Publisher of BusinessDay Newspaper, Frank Aigbogun, who was accompanied by top editors and managers, said Governor Wike emerged Governor of the Year because of his outstanding developmental strides that were thoroughly verified. Aigbogun said the organisation researched into key performance indicators and reached the verifiable resolution that Governor Wike deserved the honour. Aigbogun said the award ceremony would hold in Abuja on July 19, 2018. He said that BusinessDay would collaborate with the Rivers State Government to hold an investment summit to drive economic growth and make a case for the return of businesses and return of Port Harcourt as an investors’ hub.

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Friday 29 June 2018

CCNN announces merger plans as stock... Continued from page 1

L-R: Adetunji Oyebanji, MD; Ramesh Kansagra, chairman; Paul Obi, director, legal services, and Ramesh Virwani, executive director, all of 11 plc (formerly Mobil Oil plc), during the company’s annual general meeting in Lagos, yesterday. Pic by Pius Okeosisi

World Bank approves $2.1bn for health, power... Continued from page 1

ity, promoting governance and empowering women.

Most of the projects will be financed through the International Development Association, the concessionary-lending unit of the World Bank, the Washington, D.C.based institution said Thursday in a statement. “The approved projects support the implementation of the government’s growth plan,” World Bank Nigeria country director Rachid Benmessaoud said, according to the statement. Nigeria’s 2017-2020 “Economic Recovery and Growth Plan”, released last year, seeks to revive the oil-reliant economy which contracted in 2016 due to a drop in crude revenues. President Muhammadu Buhari, who signed a record-high 9.1 trillion-naira ($25 billion) budget last week, is pushing to increase investment in roads, power and ports in a bid to boost economic growth to 3.5 percent this year. The largest of the seven projects, with $750 million of World Bank financing, seeks to help increase efficiency in government spending and improve accountability, according to the World Bank’s statement. Another $400 million was earmarked to tackle land erosion and support Nigeria’s climate resilience, while $350 million was allocated to solar power projects and the supply of electricity to several universities and hospitals. Nigeria’s energy output per capita is said to be one of the lowest in the world. It also approved a $7 million grant for nutrition. “The FGN cannot cover the huge infrastructural deficit on its own, hence the agreements with multilateral and other agencies. The power sector is clearly a priority,” said Gregory Kronsten, head macroeconomic research, FBNQuest. As for the borrowing costs, Kronsten said the loans will attract sub-market concessional rates which are cheaper than the Eurobonds and naira bonds. After six success quarters of negative GDP growth, Nigeria turned the corner in second quarter of 2017. GDP growth is projected at 2.0 percent in 2018 by Rand Merchant Bank Nigeria’s

research. However, growth slowed again in the first quarter of 2018, as the country’s non-oil sector struggled. The government expects growth to rise to a pre-recession level of 7 percent by 2020. “Investment in power sector will be very beneficial to the country,” said Johnson Chukwu, managing director/CEO, Cowry Asset Management Limited. Nigeria privatised most of its power sector in 2013 but retained control of its dilapidated monopoly transmission grid, often blamed for hobbling growth. Africa’s largest oil producer plans to raise $2.8 billion Eurobond to help part-finance its 2018 budget and looks at exploring all options to lower costs. Responding to the World Bank loans, Ayodele Akinwunmi, head of research, FSDH Merchant Bank Limited said “This is positive for the Nigerian economy and the electricity sector. World Bank, being a development institution, usually lends money to projects and countries at a rate that is lower than the market rate and the tenor is usually longer than what most countries can access from commercial banks”. Meanwhile Finance Minister Kemi Adeosun said, contributions from the NNPC to the nation’s Federation Account were not in line with expectations and deemed “unacceptable.” “Based on oil price, oil quantity you can pretty much calculate what you are expecting to see in the Federation Account and if the figure is less, then the right question that any stakeholder must ask is why?” the minister said. Nigeria’s Excess Crude Account, which holds the country’s oil savings, has a balance of $1.9 billion dollars, she said. The intervention according to the Minister is to ensure that sala-

ries are not delayed “ Further negotiations and interactions is going on with NNPC as we speak. However, We did brief both the President and Vice President on the deadlock and asked for their support and their forbearance in this because the consequence of this is that, salaries might well be delayed in many states as a result of this.” Continues on wwwbusinessday online.com

9 feared dead, 30 vehicles burnt as... Continued from page 1

cy management Agency (LASEMA) confirmed that 53 vehicles burnt in the accident. He said nine people were burnt beyond recognition while four others were rescued, with two in critical condition and two others with minor injuries. Motorists and passengers were seen scampering in different directions to escape the conflagration. The petroleum tanker was said to be travelling outward Lagos when the accident occurred at about 5:30pm. The driver, according to high witnesses, was said to have lost control on top speed as he attempted overtake other vehicles. Officials of LASEMA and Lagos Fire Service backed by the Rapid Response Squad (RRS) were mobilised to the scene and were seen battling to bring the situation under control. Operatives of the Federal Road Safety Corps (FRSC) were also deployed to divert traffic as they warned road users to avoid the inferno scene. Some of the victims were said to be car owners and passengers heading home after the close of work for the day. An official of Federal Road Safety Corps (FRSC) told BusinessDay reporter who was at the incident scene that the tanker driver may have lost control after a brake failure in the process of overtaking vehicles just opposite a petrol station. As at the time of filing this report, officials of the FRSC and Lagos State Fire Service were still battling to put off the inferno while the combination of rescue team from LASEMA, Federal Fire Service, FRSC and Lagos State Ambulance were removing the remains of bodies burnt. The explosion caused heavy traffic flow after the Lagos toll gate and extended to 3rd Mainland Bridge while officers of the Nigerian Police and the Lagos Neighbourhood Security Corps cordoned off the area for security reasons, as thick smokes enveloped the atmosphere. “We are trying to extinguish the fire from the vehicles and check for possible causalities from the explosion,” Tiamiyu told BusinessDay as the time of filing in this report

ment Company Limited to the Nigeria Stock Exchange (NSE). Kalambaina Cement is a wholly owned subsidiary of BUA Cement Company of Nigeria whose cement plant produces up to 1.5 million metric tonnes per annum. The merger is expected to strengthen the stronghold of CCNN in the northern Nigeria cement market. CCNN in a letter to NSE asserted that “the proposed merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue from the proposed merger.” The combined company will have a total cement producing capacity of 2 million metric tonnes which will help increase their market share and solidify their position as a major producer of cement in Nigeria.

Both companies currently operate in Sokoto and are located in the same axis which will make the company integration relatively easy. CCNN stock has been a highflyer this year, returning 147 percent. The stock jumped 4 percent yesterday on official announcement of the proposed merger as investors cheered the news. CCNN reported a strong growth in revenue and profit in their 2017 annual report. Profit after tax for the company in 2017 increased by 157 percent from its 2016 level while revenue increased modestly by 39 percent. The company has already shown sustained growth in profitability in the first quarter of 2018 as company profits increased 111 percent quarter on quarter. A merger of both companies could push the company to perform even better in future years as the firm ramps up production after the merger process is completed. CCNN proposed that for each share in Kalambaina Cement Company Limited, shareholders of Kalambaina Cement will receive approximately 198 ordi-

Anambra targets number one investment... Continued from page 1

the relative peace it enjoys. Anambra, he said, was the only state pursuing a development vision that takes into account generations yet unborn, stressing that with the cooperation of NOA, there would be no doubt that the state would succeed. Responding, Nworji, the Director General of the NOA said that there were many ways that the NOA can cooperate with Anambra state to promote the state as an investment destination. “They are organisations that cooperate for the common good, and that is why we are here to solicit for your cooperation,” Nworji added. Meanwhile, as part of the efforts to attract investment into the state, Willie Obiano, the governor of the state, announced plans for the state to produce 613,000 metric tons of rice annually from its flourishing agricultural investments. He disclosed this during a tour of JOSAN Giant Rice Mill in Umumbo in Ayamelum Council of the state. Obiano who recalled that when he assumed office in 2014, total rice production in the state stood at 80,000 metric tons per annum, said that has since more than doubled to 302,000 metric tons per annum. “We want to move to 613, 000 metric tons in the next three planting seasons.” “And to be able to achieve that, we must renovate the irrigation system in Omor also in Ayamelum Council Area, in partnership with the federal government,” he said. He said that JOSAN Rice Mill in Umumbo had a capacity to produce 50,000 metric tons of rice but that his administration had plans to beef up the production output of the mill to 100,000 metric tons. The Umumbo Rice Mill which was built during the reign of

former President Shehu Shagari had been abandoned for decades until the Obiano administration handed it over to JOSAN Integrated Farms and Mills Ltd in 2017. According to him, the plan to revamp the moribund irrigation system would guarantee yearround rice production in the Ayamelum agricultural belt and boost the overall output in rice production in the state. Obiano expressed confidence that when fully reactivated the Omor irrigation system would add vigour to the ongoing agricultural revolution in the state. The traditional ruler of Umumbo, Igwe Simeon Chidubem and his Omor Counterpart, Igwe Chidume Oranu commended the governor for his interest in repositioning the agricultural sector of the state to become a major income earner Already the state is getting support from the World Bank and the African Development Bank (ADB) which are implementing a Rural Access and Agricultural Marketing Project (RAAMP) to build access roads and markets in rural areas leading to major farmlands. The Anambra State Coordinator of RAAMP, Joe Onyejekwe said that the work plan was to maximize agricultural production in the state. Onyejekwe said that it was discovered that many food crops were wasting because there were no access roads to farms in the hinterlands noting that not less than US$8.9 billion was lost yearly in the country due to under harnessed farm produce. “The World Bank and ADB have already selected roads that meet their qualifications to be built without interference of any person from the state. `They will come up with designs and check the quality of roads to be constructed,” he said. The state coordinator said that three communities from Idemili

Friday 29 June 2018

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BUSINESS DAY

6 BUSINESS DAY NEWS

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NIS violates TSA policy with implementation of Biometric Visa-on-arrival IFEOMA OKEKE

n what has been characterised as a gross defiance against one of the few outstanding achievements of the Buhari administration, the Nigerian Immigration Services (NIS) has implemented the issuance of a biometric visa-on-arrival, with proceeds that are not remitted into the Treasury Single Account (TSA). Although the visa-on-arrival process has been suspended, but while it lasted all the collections did not go through the TSA. From earlier investigation, the introduction of the visa-onarrival policy at the Muritala Mohammed International Airport by the NIS reportedly costs foreigners coming into Nigeria about $110. Investigations reveal that these funds were not being remitted into the TSA, which is the stipulated receiving system for all government agencies, but were being collected by thirdparty private agents.

The fees were being collected by two companies Online Integrated Services (OIS) and New Works, who were service providers appointed by the Ministry of Interior to collect the charges. OIS collects $90, while New Works collects $20 for the issuance of the biometric visas. Further investigation reveals that the use of these companies in collecting funds for the NIS is questionable. A quick search result on the internet reveals that New Works may be a completely fictitious firm as there is no information about it online. Although the implementation of the policy was suspended a little after kick-off by the comptroller-general of the NIS due to complaints about charges, many people are wondering why the NIS continues to violate the TSA policy without hindrance. Although conceived under the regime of Goodluck Jonathan, the implementation of the TSA policy commenced in 2015 when President Buhari ordered all commercial banks to remit all Federal Government funds

with them into a central account domiciled with the Central Bank of Nigeria. Since then, over N8.9 trillion has been remitted into the TSA for the Federal Government. Official sources say it saves the government over $11 million monthly from bank charges. While increasing transparency and accountability and blocking leakages. This will not be the first time that the NIS will be flouting the TSA. There has been an ongoing controversy over the passport payment system. In December 2017, the Federal Government sought to prosecute 33 agencies, which have not been remitting funds to the TSA. According to reports, over N450 billion have been accumulated outside the TSA. Prominent among the heavy defaulters was the NIS, which was threatened to be reported to the EFCC. Despite this, fees from passport processing continue to be surreptitiously remitted to other accounts in gross violation of the TSA.

CJN urges SANs to uphold integrity, rule of law

hief Justice of Nigeria, Walter Nkanu Onnoghen, has urged all senior advocates of Nigeria (SAN) to shun corruption and avoid all forms of misconduct by upholding the practice of rule of law and integrity in the legal profession. Onnoghen made this remark Thursday during the maiden annual lecture of the Body of Senior Advocates of Nigeria (BOSAN) where he stressed on the need for senior advocates to exhibit and promote high standards of conducts at all times. “We need to discharge our duties with competence and decorum both in court and in our private lives. I urge you all to shun corruption and avoid all forms of misconduct, because if one is not qualified to wear silk as a judicial officer, he remains unqualified to wear same as a SAN. “We must therefore realise that whatever reform to be embarked upon must start from the mind-set and attitude without which the effort remains an exercise in futility,” he said. He explained that the success of judicial reforms depends not

only on how senior advocates collectively identify and deliberate on fundamental issues affecting the justice sector but on how they can ensure the pragmatic implementation of such reforms to the latter. The chief justice noted that actions of some members of the Inner Bar have recently been called into question. He said, “Let us remind ourselves that integrity is crucial to the Judiciary and reputation her most important asset. The public have confidence not only in the Courts but in the members of the Bar, who are the bridge between the Courts and the public. “Therefore, it is of necessity to come together to address the challenges you encounter and to incorporate your contributions towards the justice sector reforms, thereby expediting speedy dispensation of justice. We are not unmindful of the numerous challenges you face.” Fidelis Oditah, the guest speaker at the occasion, said the theme of the lecture which is ‘The evolving role of senior advocates in the administration of justice and nation building’

was apt, especially at a time when the country is faced with economically, social and political challenges. Oditah mentioned some of the challenges to include devaluation of the Nigerian currency, unemployment, political intolerance, economic downturn, greed, indiscipline and recklessness of the political class. He added that the legal system is also bedevilled with challenges around administration of justice at all levels of decision making,weakcasemanagement, inefficient court registry and inability to bring criminals to book. In tackling these challenges, Oditah suggested that senior advocates must be the voice of reason and moderation; should not be pompous and arrogance; must be role models and groom the young lawyers to uphold integrity; must conduct themselves well in and out of court and ensure the prestige of their ranks as senior advocates. “We need to be honest and professionals indeed. Our rank faces existential threat over lack of integrity by a few practitioners,” he stated.

11 Plc rewards loyal customers, promise to expand scheme

ustomers of 11 plc, formerly Mobil Oil Nigeria plc, from the Western part of Nigeria who participated in the ongoing “Mobil Peel and Win promo and raffle draws for Mobil Super 1000 4-litre range of lubricants,” had a field day recently as they carted away various gift items in the first draw held in Ibadan, the Oyo State capital. The raffle draw witnessed by senior officials of the company and the Ibadan zone of the Consumer Protection Council (CPC), saw over 50 customers going home with gift items ranging from engineering tools, gas cookers, generating sets, motorcycle, tricycle, popular called Keke NAPEP, as well as cash prices. The event, which is the first series of Mobil Peel and Win promo and raffle draw, is designed

to reward lubricants consumers who are loyal to the Mobil brand of lubricant. In his welcome address, manager, lubricant sales and marketing of 11 plc, Steve Ezendiokwere, said the promo was a part of the company’s efforts to appreciate their loyal customers as well as an opportunity to interface with them. He promised that the company will not only continue to was engage in marketing promotions of this nature, but assured that the draws of the promo will be held in all the six geopolitical zone of the country. Expatiating the rationale behind the promo, he said, “The Mobil ‘Peel and Win’ promotion was conceived as our little way of rewarding those end-users with enduring faith in the Mobil

brand; such end-users who have truly demonstrated their loyalty to the brand despite the lure of some cheap and low quality lubricants in our market. “These categories of endusers include the car owners, motorcycle and tricycle owners/riders, generator operators/ owners and most importantly auto-repairers and mechanics who constitute the membership of Nigeria Automobile and Technicians Association (NATA). We are indeed grateful for their unwavering patronage and loyalty to our premium engine oil, the Mobil Super 1000 x1 20W-50. Speaking on the implications of the promo in the phase of recent developments in the company, he said the move is a clear testimony that things are beginning to change for better.

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Scarcity of petroleum products looms as Ejigbo depot shut JOSHUA BASSEY

ension is building up over a possible petroleum product scarcity, as there has been no loading at the Ejigbo depot for over three weeks. The depot was shut to allow for the repair of system B pipeline network said to have been affected by vandalism and rupture. BusinessDay gathers that although the repair had been carried out, the Pipelines Products Marketing Company (PPMC) was yet to resume product pumping to the depot due to heavy indebtedness to pipeline surveillance and security agencies. The surveillance officials are said to have pulled out, insisting on payment of outstanding salaries to return to work. “If they sourced for money to repair the ruptured pipeline, why can’t they pay the security,” a source told BusinessDay on Wednesday. Already, Independent Petroleum Marketers Asso-

ciation of Nigeria (IPMAN) has expressed concern over the development and warns of its implication on product supply if the situation is not addressed. Salimon Oladiti, president of Petroleum Tanker Drivers (PTD), told BusinessDay that members were beginning to feel the impact because of the difficulty associated with driving into Apapa to load from other depots, due to the ongoing repair of Ijora-Apapa road. “Our members are suffering looking for where to load,” Oladiti said. Also, Ayo Alanamu, chairman of Ejigbo Satellite depot, said the disruption to loading at the depot could cause fuel scarcity within the metropolis, if not urgently addressed. According to Alanamu, an official of Nigerian National Petroleum Corporation (NNPC) who confirmed the maintenance work on system 2B pipeline network, said non-payment of salary to the pipelines surveillance security affected the pump-

ing of products. “We have not loaded a single product from the depot in the last three weeks and this has increased the ex-depot price in most private depots in Apapa,” he said. The IPMAN boss urged the management of NNPC to urgently intervene to avert another round of scarcity that could arise if not carefully managed before the weekend. “Today, the situation has worsened as Mosinmi, and Ibadan depots now have low stock. The two depots which usually load 200 trucks each on daily basis now load between 10 to 12 trucks daily,” he said. He said marketers would not hesitate to sell petrol above pump price of N145 per liter if private depots failed to sell petrol at the official ex-depot price. He said it had been a serious challenge for trucks coming from Kwara, Ilorin, Ekiti, and Kogi to load at Apapa due to the ongoing road repairs.

Friday 29 June 2018

SON, JETRO, others renew fight against counterfeiting OGHOGHO EDOSOMWAN

roduct counterfeiting in Nigeria is receiving more attention, as the Federal Government, through the Standards Organisation of Nigeria (SON), in collaboration with the Japan External Trade Organisation (JETRO), are leading other stakeholders in a renewed fight against the menace. Others involved in the push to reduce the activities of product counterfeiters, denying government much-needed revenue and hurting genuine manufacturers, include Nigeria Customs Service (NCS) and Nigerian Copyright Commission, among others. To renew the fight, JETRO, in collaboration with SON and with the support of the Embassy of Japan in Nigeria, organised the “Nigeria-Japan Anti-Counterfeiting Seminar.” At the opening of the seminar in Lagos on Wednesday, Shigeyo Nishizawa, trade commissioner/ managing director of JETRO, said theseminarwasaimedatpromoting mutual understanding on intellectual property protection and strengthen anti-counterfeiting between Nigeria and Japan. He said seven Japanese companies operating in Nigeria and other countries were on hand to showcase and differentiate their original products from the fake ones so as to create awareness to the Federal Government’s standard enforcement agencies and the general public. Some of the Japanese com-

panies that made presentations include Brother Int’l (Gulf FZE), maker of consumable parts of laser printers, Multi-Function Centres (MFCs), fax machines and label printers; Canon Europe Limited in the EMEA region, manufacturer of inkjet printers and professional printers for business and home users. OthersincludeJapanTobacco International (JTI), producers of tobacco/cigarette; NGK Spark Plug Middle East FZE, makers of genuine engine spark plugs; aircondition giant Panasonic Marketing Services Nigeria Limited. Also on hand to help Nigerian consumers spot the original productsfromthefakewereSharp Middle East FZE, maker of consumable/spare parts for digital MultifunctionPeripheral(MFPs)/ Printers; TOSHIBA Gulf FZE, specialising inhard disk drives, USB flash drive, SD card, printer, home appliances, etc. According to Nishizawa, the numberofJapanesecompaniesin Nigeria has continued to increase, and with a total of 40 Japanese firms currently operating in the country, there is need to educate and enlighten consumers on how to identify genuine products from counterfeits. Osita Abaloma, directorgeneral of SON, expressed the agency’scommitmenttopromoting quality in all its ramifications through diligent implementation of policies and initiatives on standardisationandqualityassurance. “The need to protect genuine investors, manufacturers, import-

ersanddealersinqualityproducts in Nigeria from the damaging effects of purveyors of substandard and life endangering products cannot be over-emphasised,” Abaloma said. Abaloma, who was represented by Bede Obayi, SON director, inspectorate and compliance, said counterfeiting was one of the known sources of substandard products across the world. Describing counterfeiting as illicit trade, he said it had been a major source of worry to governments, businesses and regulatory institutions in developed and developing economies. The SON boss, however, said Nigeria’s case, given her population and market in the West African region and the continent, presents a worrying scenario for the negative effects of counterfeiting and the illicit trade associated with it. He said apart from depriving industry of legitimate sales and eroding long-term sustainability of business, other effects of counterfeiting include promotion of unemployment,drainonnational income through tax evasion and threat to national security, as the proceeds are not easily traceable. He also added that because counterfeited products usually do not meet quality and safety requirements, they are, therefore, life endangering. Besides, purveyors of such products, he added, do not give value for money, as the quality is usually far below those of the genuine products and brands.

Killings: Nigeria becoming a failed state - Oyebode JOSHUA BASSEY

professor of international law, Akin Oyebode, says the unchecked spate of killings in Nigeria portrays the country as a failing state before international community. Oyebode made the assertion on Wednesday, insisting that a government that had so far been unable to stop the killings or brought the killers to justice, had no basis for continued existence. He spoke with journalists shortly after delivering a lecture at the 2018 Public Lecture/ Book Presentation of the Nigeria Union of Journalists, Lagos State Information Chapel, in Ikeja, Lagos. According to Oyebode, “Nigeria is a failing state, although it has not completely failed, but it is failing and we have to quickly address that. Things are getting worse in the country and all hands must be on deck to save Nigeria from total destruction. The statistics are very bad.” The professor of law, who retired from University of Lagos

(UNILAG) in December 2017, expressed concern that the government could no longer safeguard the lives of the people. “It is an embarrassment for the President Muhammadu Buhari’s government because the whole essence of government is to protect lives and property of the people. The government that cannot protect its citizens definitely has forfeited its reason for existence. Unfortunately, not many people want to say the truth because they are afraid of the power that be, but some few people still have the courage to talk,” he said. He, however, gave the Lagos State government a pat on the back for a vision to transform the state from a mega city to a smart city, but noted that much needed to be done to actualise the vision. He called for the support of the people to enable the Akinwunmi Ambode-led government push the vision into a reality, saying, “Ambode has done well and I think his works can speak for him, but more is required to transit to a smart city.”

L-R: Wole Oshin, GMD/CEO, Custodian Investment plc/past chairman, Nigerian Insurers Association (NIA); Oye Odukale, MD/CEO, Leadway Assurance Company Limited/past chairman, NIA; Tope Smart, MD/CEO, NEM Insurance plc/new chairman, NIA; Eddie Efekoha, MD/CEO, Consolidated Hallmark Insurance plc/immediate past chairman, and Mohammed Kari, commissioner for insurance, at the 47th AGM and election of the association in Lagos, yesterday. Pic by Pius Okeosisi

Nigeria records N97.4trn increase in transaction value – CBN HOPE MOSES-ASHIKE & CHINWE AGBEZE

igeria’s e-payment industry recorded increases in both transaction volume and value by 59.72 percent and 40.95 percent, respectively, in 2017, according to the Central Bank of Nigeria (CBN). The transaction volume stood at 1.4 billion valued at N97.4 trillion in 2017, which were higher than 869 volume of transaction valued at N69.1 trillion recorded in 2016. Transactions increased in both volume and value across all months in 2017. November recorded the highest in transaction volume with August as the highest in transaction value.

This has been usual trend as these are months of summer holidays, school fees and festive holidays. January recorded the lowest volume and value of transactions. Speaking at the 2018 general meeting of the Nigeria electronic Fraud Forum (NeFF), Adebayo Adelabu, Deputy Governor, Operations, CBN, said the Forum has played a leading role in ensuring that the Payments System in Nigeria remains secure and well protected from fraudsters in a very proactive manner. “We must also not lose sight of the fact that leading circulars have emerged from the deliberations at meetings such as these,” he said. Represented by Tokunbo

Martins, director, Other Financial Institution department, CBN, (OFID) Adelabu said the import of this years’ theme speaks to the essence of collaboration and how it has brought critical players in the payments system (banks, consumers, telecom operators and law enforcement) together under one umbrella objective – fighting electronic fraud! This collaboration will no doubt bring to bear, increased knowledge and information sharing and deepen the payments industry’s capacity to succeed in this fight against e-fraud. Dipo Fatokun, director, banking and payments system/chairman NeFF, said

there is an upsurge of electronic fraud especially in recent times, despite the concerted efforts to check fraud in the country. “It has therefore, become necessary to review and strengthen the existing rules, and enact new regulations to stem the problem. Taming fraud will continue to be a focus for the Forum, as we know the impact fraud has in diminishing trust which is an essential ingredient in building an internationally recognised and nationally utilised payments system. Hence, we remain committed in ensuring that the Nigerian Payment System is not only easy to use, but also reliable and trustworthy,” Fatokun said.

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Does integrity pay? SOJI APAMPA Olusoji Apampa is the CEO of The Convention on Business Integrity. Twitter: @sojapa E-mail: aviga@ cbinigeria.com

ocial Media is typically not a reliable source for any fact one expects to be taken seriously because of “fake news” and multiplicity of “alternative facts.” However, for the humorous and bizarre, it is quite the treasure trove. I recently came across a piece titled, “the weakness you ignore will take advantage of you,” which I found very instructive. The story goes that there was a man, a local activist in a major Northern Nigerian city who incessantly accused his State government of massive corruption through the Media. He wasthen one day invited to the Government house by the Governor, who directed him to arriveby motor-tricycle taxiand that he (the Governor) would pay thefare. The said fellow reportedly arrived as instructed and the Governor told him to let the motor-tricycle go as he would be given a lifthome after the meeting. According to the story, he gave the activist the equivalent of£420 to

pay the taxi as a way of “empowering” the driver and as a memorial to the dayhisvehiclebrought a passenger to the Government House. The Governor reportedly asked the activist, ‘’what was the reaction of the driver after giving him such a huge amount? And the activist reportedlyreplied,“the man was actually dazed with shock!” Unknown to the activist, the security detail at the 2nd gate had in the story, been instructed to stop the taxi and bring him right back. When the driver was brought back to the Governor, the Governor asked him, ‘’how much did Mr. so-and-sopay you? He replied, “£42.”This happened in the presence of the activist. The Governor reportedly smiled and said, ‘’You see, from £420 to £42, you have pocketed £378 in a matter of seconds!You have lost the chance to own a brand-new car. Look,here are the keys!I thought you were an honest man. I was even looking forward to working with you, but you have messed up, you are worse than those you accuse! You can leave now with your £378. Thank you very much for coming!”Since that very day, according to the story, the activist’s voice has disappeared from the airwaves!” I did warn this was a story from social media. It therefore contains the usual aspects that don’t quite add up. Why would anyone be instructed to arrive by motor-tricycle; why would the Governor attempt to pay such a huge sum as the fare?

This state of affairs, where people do not subscribe to principles but act merely to achieve short term, narrow interests, and they appear to achieve their ends, leads many Nigerians to the question, “does integrity pay?” Why was a brand-new car awaiting the activist; why would the government now want to work with him and so on? But, the story, probably designed as a propaganda piece, illustrates the duplicity we find today in public and private life in Nigeria. Agitations for change are very often to further very narrow interests of the agitators and those on the receiving end understand this and offer what the agitators seek to quell any agitation in the “public interest.”This state of affairs, where people do not subscribe to principles but act merely to achieve short term, narrow interests, and they appear to achieve their ends, leads many Nigerians to the question, “does integrity pay?” There was once a Director of Pro-

grammes of the Nigerian Broadcasting Corporation who in the military days (circa. 1970) was accused of complicity in airing a play perceived to be detrimental to the government of the day. As was the practice in those days, the government came to arrest all those involved with creating the play. This Director was asked to finger all those “involved” so they could be arrested but he refused to do so because as the Director of Programmes, as a matter of principle, he was responsible. He was duly arrested and locked up in Force Headquarters (Moloney), Lagos. While in incarceration he was told to write a statement. He did but the Officers were dissatisfied as they wanted a particular assistant of his to be included in his statement as a “troublemaker” who “wanted to bring down the government,” giving them a scapegoat, in exchange for his release. He refused again on a matter of principle and spent 7days being held by the police. They eventually picked up several of his staff and they were all remanded in Kiriki (Nigeria’s maximum-security prison) for another 10 days before they were released suddenly. They went back to work. Over a year later, the same government that incarcerated this Director appointed him the new Director-General of the broadcasting corporation (for which he was one of those next in line). During his courtesy call on the President as was customary for such appointees in those days, he learned that when

he had been picked up, the Headof-State was out of the country and only learnt of it upon his return. At the first meeting of the Supreme Military Council thereafter, his immediate and unconditional release was ordered by the Head-of-State who asserted it was a mistake to have arrested him in the first place. He then further remarked during the courtesy call how he marvelled at this Director’s composure and ability to return to work despite the wrong that had been done to him. He had been watched for a while. The Head-of-State was clear that this was a principled, competent man and when the time came, elevated him. Dr. Christopher Kolade, CON, Nigeria’s Former High-Commissioner to the UK, former Chief Executive and Chairman of Cadbury Nigeria Plc, and Chairman of the Governing Council of the Pan-Atlantic University is that man who was incarcerated 17days for an offence he did not commit and that refused to sell out his colleagues but got elevated by the same regime in in due course, in recognition of his integrity and professionalism. I wonder what history would have said of him had he taken the path of expediency over principle as so many Nigerians today do by reflex? So, does integrity pay? Find out at the 6th Annual Christopher Kolade Lecture on Business Integrity, taking place in Lagos tonight.

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NEM Insurance Plc 48th AGM and associated governance issues

NONSO OKPALA Okpala is Group Managing Director/ CEO of VFD Group Limited. He wrote via nonso.okpala@vfdgroup.com

n integral component of the long-term strategy of any company is corporate governance, epitomised by transparency and accountability. By extension, it is also the single most important means of sustaining the vibrancy and relevance of any capital market in the world. Furthermore, it has been observed that regulated markets with that adhere to best corporate governance practices have attracted and retained the confidence of investors, local and foreign alike. As the CEO of VFD Group Limited, a company implementing a long-term investment strategy in the financial services industry, I basically assess companies on three cardinal points. First, the presence of a visionary and selfless leader as espoused by Jim Collins in his book, “Good to Great”. I also look for companies that have strategically positioned themselves within the context of their operating economy. These are companies that have developed a niche, either by way of technology,

regulations, efficiency,etc., and established a moat around their business, as a barrier against competitors. The last cardinal point I consider is the company’s adherence to best practice in corporate governance, regardless of the local governance standards or regulatory requirements. In the course of our operations, we have invested in a few listed companies – despite being mainly focused on private investments – and we intend to increase our capital allocation to this class of investments. One of our early investment picks was NEM Insurance Plc. The company had been a diamond in the rough for years with its market price then below N1. However, our valuation of the company, on a futuristic earning basis, was conservatively about N4 per share. This valuation has subsequently been validated by market trends; as at 21st June 2018, the market price of the stock was N3.04. We invested in the company based on our confidence in the long-term prospects of the company and its high score on our three-assessment parameters (i.e. strong leadership, strategic positioning and best practice in corporate governance) particularly the first two parameters. NEM Insurance has a visionary leader, Tope Smart. He stands out as an extraordinary leader and is remarkably humble at it. He took on a struggling company in 2007 and bootstrapped it into one of the top five insurance companies in the

industry. The company has doubled shareholders’ funds in the last five years and consistently paid dividends over the stated period. He has also built a team of remarkable lieutenants who rank as the best in the industry on a cost basis consideration. As a result of their strategic positioning within their operating economy, the company not only enjoys the insurance regulatory environment, but has further enhanced its economic moat via efficient performance in a sector that is spectacularly known for inefficiency and poor regulatory compliance. Unfortunately, it appears that the company is not nearly as strong on governance practices, relative to its stellar performance on the other two counts as stated above. I will elucidate with the organization of the company’s purported 2018 Annual General Meeting (AGM). As a background, the Directors of the company collectively own less than 23.73% of the company’s issued shares. 22.98% of the 23.73% of the shares attributed to all Directors are held by four Directors (the “ruling 4”) out of ten Directors (source: NEM 2017 Annual Report & Accounts). On closer examination, the situation gets even more interesting. The same audited financial statements reveal that only 16 shareholders, inclusive of the “ruling 4” Directors, have up to 50m shares each and this group of 16 shareholders collectively controls 52.11% of the company’s issued shares. The implication is that there are 12 shareholders who collectively control 29.13% of the

company’s issued shares that are not included in the management of the company. VFD Group is one of the 12 shareholders, with a 2.11% stake. In recent times, we have made efforts to identify the other 11 shareholders and observed a trend of exclusion of these shareholders from the activities of the company. For instance, as a run up to the 2018 AGM of the company, most of these shareholders did not receive notice of the meeting, the proposed special resolutions, proxy forms and audited financial statements as required by CAMA. This is extremely suspicious, particularly if one considers the special resolutions proposed for consideration and approval at the purported AGM. First, special resolutions are usually passed by 75% of the votes of shareholders present and voting in an AGM. In the case of NEM, none of these resolutions can be passed if the 12 excluded shareholders were present and voted against the resolutions. It will be mathematically impossible because if all shareholders are in attendance, the 12 shareholders would represent 29.13% of the possible votes. This will preclude the possibility of achieving the 75% approval that is required for the resolution. This is further compounded by the fact that 100% attendance of its shareholders in NEM’s AGM is impossible. Thus, the only way to assure the passing of such resolutions (if management is not sure of the position of the 12 shareholders) is to tactically exclude them so as to ensure victory if a poll

is conducted. I am certain the question running through your head is, why go through all of these, at the risk of regulatory sanctions? Why risk the company’s reputation and particularly jeopardize the otherwise stellar achievements and track record of the Group Managing Director? The answer is simple: the company is run by a minority group of shareholders, “the ruling 4” Directors, who want to secure their hold on the company, at all costs. The Directors, at the purported AGM, sought a resolution to issue 1.056bn shares of the company by way of private placement, at a price of N2.50. Looking closely at the proposal reveals why, in the words of former President Olusegun Obasanjo, “it is a do or die” affair for this ruling group of Directors. By maintaining the status quo and buying up shares on the floor of the stock exchange, it is currently impossible for anyone with minority holding to gain majority shareholding, and neither is it possible through fair and equitable rights’ offers. Nevertheless, the proposed special/ private placement makes it possible for “the ruling 4” Directors plus the “special interest” beneficiary of the special/private placement to achieve a super majority.

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So, Nigeria is world’s poverty capital? ZAYYAD I. MUHAMMAD Muhammad wrote from Jimeta, Adamawa state zayyad.com.ng zaymohd@yahoo. com, 08036070980

ccording to a report by the Brookings Institution, data from the World Poverty Clock show that Nigeria now has over 87 million people living in poverty. YesThe average Nigerian is a poor man, but Nigeria is a country of riches and poverty all in one; splendid wealth in few hands and abject poverty at most people’s doorsteps. The number of people living in poverty has increased due to rising disparities in the distribution of resources in the country. However, the basic cause of poverty in Nigeria is the absence of an enabling environment that will free the people from the prison of poverty, uplift their living standard and provide ways to assist them turn their dreams into reality.It is a fact that the primary factors that lead to poverty, such as overpopulation, unequal distribution of resources, lack of basic education, absence of employment opportunities, as well as environmental degradation, are quite intractable and not easily eradicated. But the average Nigerian’s living standard can improve once the routes to achieving basic

CHIKA NWOGU Chika Nwogu is a Business Strategist/ Project Manager and also a Volunteer Research Assistant with the Christopher KoladeCenter for Research in Leadership and Ethics(CKCRLE) at Lagos Business School.

n the ecommerce industry, trust is the currency that binds all actors in the ecosystem. Ordering for an item online and receiving a different or sub-quality product has been one the reasons ecommerce platform customers prefer payment on delivery options. On the flip side, merchants of these ecommerce platforms fear returned goods, the associated sunk costs of delivery, and possible damage of goods in transit. These underscore the trust quotient as a critical factor in ecommerce transactions. Loosely defined, ecommerce is the buying and selling of goods and services over the internet. Buying and selling could be through direct online retailing (e.g. Slot Nigeria’s online store or Walmart’s online store) or online marketplaces (e.g. Konga, Amazon marketplace) or online auctions (e.g. E-bay, Deal Dey). The buying and selling activities are performed via online storefronts built using information technology solutions. This enablement provided using information technology to engage in commerce over the internet is predicated upon the fact that all actors involved in the process would perform

living conditions are smoothened. Who should create these conditions? The three tiers of government. How? By imbibing the political will that propels new thinking within the leadership as well as bringing allinclusive economic growth. For the nearly 60 years of Nigeria’s existence, various governments have put in place poverty eradication programmes and policies. Yet, the average Nigerian is worse off. Most of these policies and programmes are good, but not excellent enough to eradicate poverty, for example, subsistence farming and low income manual jobs cannot remarkably improve a country’s GDP. A country’s level of poverty depends greatly on its level of population density and agricultural productivity. Bangladesh, for example, is one of the world’s densely populated countries with 1,078 persons per sq km. A large majority of the people of Bangladesh engage in manual farming, which contributes little to the country’s wealth therefore the country’s extremely high level of poverty. However, some of the smaller countries in Western Europe, such as The Netherlands and Belgium, have high population densities as well. But these countries practice mechanized farming and are involved in both high-technology and small industrialization; they therefore have high standards of living. Then what needs to be done? Eradicating poverty can be done through embracing holistic and reductionistic approaches to development. This is the time Nigeria needs both approaches– approaches that

The hallmark of poverty in Nigeria is the high level of unemployment. If Nigeria can tackle the high rate of unemployment in the country, then one of the most important ways to smoothen the path for prosperity in the land has been found and poverty eradication can be achieved easily. We must acknowledge that even in developed countries, unemployment rates may be high and availability of employment also tends to fluctuate, creating periods of high joblessness. Nigeria being a country with high population, an unemployment level of only a few percentage means that millions within the working-age will be unemployed and unable to earn an adequate income. This should be an issue of great concern to the political leaders and managers of Nigeria’s economy. Nigeria can create productive employment for its millions of unemployed citizens and those engaged in low income manual jobs through various means. The country has artisans such as shoemakers, fashion designers, carpenters, goldsmiths, woodcrafters, welders and technicians, etc. who have the skills but lack the resources to setup productive and sustainable businesses. Offering assistance to such group of people, by bringing them together as business partners, will have huge impact on the country’s economy. For example, Turkey, Morocco and Iran are enjoying huge foreign exchange from handmade carpets made by small firms owned by individuals living in urban, semi urban and rural areas of these countries. Equally, there are thousands of

graduates in Nigeria who never dream of a pay-job either from the government or private sector, but their zeal is to be entrepreneurs. Government can assist such groups of young people. The Federal government intervention funds designed to boost the operational capacities in the manufacturing industry, small and medium scale enterprises, the power sectors as N-Power programm are good steps toward the empowerment of the citizens. The accessibility of such funds should be flexible and part of it should be used in developing many sectors including the movie, music, I.T. sport, advertising, farming and technicaldevelopment industries. Also, the effort by the federal government in the regularization of the hundreds of illegal miners in Nigeria will create legitimate wealth and employment, in addition to increasing revenue for the government. The Brookings Institution’s report may be right, but we shouldn’t forget the fact that it is a little difficult to determine the poverty level of Nigerians due to many factors including lack of reliable data and statistics; however, there is a general agreement among Nigerians that the hallmark of absolute poverty in the country is the high level of unemployment. If the level of unemployment can be reduced by half, Nigeria’s dream will be achieved. This thought should be close to the hearts of Nigerian leaders. They should start thinking of the people on the streets, because it is time to reduce poverty in Nigeria.

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Trust as the currency for ecommerce platforms or deliver what is expected of them. Trust is what fuels the effectiveness of the process; thus, trust forms the basis for communication and exchange among actors. Trust is important for everyday interactions and businesses. More so, when it is internet based, it becomes a key factor for internet businesses, merchants, customers and payment companies. While the merchant would expect the customer to make necessary payments on goods ordered without undue cancellation or return after dispatch, the customer expects to see desired item ordered delivered on time, payment made through a secured channel, as well as some form of assurance that personal information is properly managed. Today, e-commerce platforms have changed the way products and services are evaluated and purchased. As internet penetration deepens, conversion and growth for ecommerce platforms largely depend on trust because they now act as the agents between the merchants and customers, creating a marketplace by providing the ability to search for items from a vast selection, from the comfort of the home or office, and to evaluate them based on specifications, customer reviews and ratings, and pricing, as the case may be. Because of its intangible nature, trust in ecommerce is capricious – difficult to gain and easy to lose. The unavailability of the physical

experience that brick-and-mortar stores present leaves actors to rely on trust as the social mechanism for ecommerce business transactions. Unlike brick-and-mortar commerce where transactions are done physically, ecommerce transactions ride on a high level of uncertainty as the customer has no idea of the merchant ownership, location or quality. Therefore, customers would rely on reviews and ratings to make a purchase decision. Furthermore, online buyers have concerns regarding payments, which have led to use of the platforms as online catalogues either to increase the visibility for the seller or as ‘product yellow pages’ for buyers and not necessarily as venues for financial transactions. In a recent data collection exercise, conducted by a research team led by faculty of the Pan-Atlantic University and driven by IT for Change’s project, ‘Towards Inclusive Platformisation in Nigeria – The Regulatory Framing’, sellers on the platforms cited increased visibility as an economic benefit the ecommerce platforms have provided. They seemed comfortable with completing financial transactions offline or through direct payments with customers after their products have been seen on these platforms. While stating convenience as the major benefit of online shopping, respondents in the survey still preferred going physically to stores to purchase items. Two major reasons for this are cyberthreats as well as

faulty order fulfilment especially for fashion items and home appliances. For example, one respondent expressed concerns in this manner: “What you see is not what you get, that kind of thing, especially when it comes to items like fashion. Like you see a really pretty bag and then you buy the bag and it’s just some flimsy material. But in the picture, it looked very good. So, you know, it’s not always what it seems.” While some scholars have detailed that improved design and user experience, availability of information, as well as security certificates are some ways to improve customer trust in ecommerce platforms, the data collection exercise, also revealed that responsiveness to customer complaints and feedback, consistent policies over a period of time, delivery of exact order made, as well as explicit assurance of safe and secure platforms, are more ways to address the concerns. Also, lack of timely response by ecommerce platform operators has further fueled user (both merchants and customers) tendency to engage the platform mainly to increase visibility of products and services offered (for the merchants), and a catalogue that compares prices and options available in the marketplace (for the customers). Trust influences conversion to purchase a product or service, as well as repeated visits on the platforms. Simply put, customers feel

they can trust your business if their personal financial data is safe and if timely delivery of the exact item ordered is given priority. During the survey, respondents opined that they still preferred the touch and feel experience that traditional brick-and-mortar stores give. However, before they purchase, they would visit ecommerce platforms to check for latest models available as well as the prices, before proceeding to purchase at the brick-and-mortar stores. A respondent stated that:“it is more convenient to go online and check several platforms and compare prices before going to the store to buy”. The recent acquisition of Konga by Zinox, led to the merging of Yudala (a Zinox subsidiary company) and Konga. The “marriage” has produced an interesting mix of online and offline store components, such that customers can walk into a Konga physical store and examine the item before placing orders. This might be a step in improving customer confidence regarding placing and receiving exact orders made. A further step would be deliberate reassurance to the customer that personal financial data imputed on the platform is safe and secure; as most users still preferred to use their cards on Point of Sale and ATM terminals than input the same details online.

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Editorial PUBLISHER/CEO

Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North)

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

Friday 29 June 2018

Preventing other Akindeles in our universities

sad saga ended on a redemptive note on June 20, 2018, with the release of a report on a sexual scandal by the authorities of the Obafemi Awolowo University, Ile Ife. In the matter of sexual harassment by a professor against a graduate student, the Obafemi Awolowo University acted courageously in line with the best traditions across the world. We commend the management of the University for their courage and conviction. The challenge before Obafemi Awolowo University and the higher education system in Nigeria is that of instituting policies and procedures to ensure that such occurrences no longer happen or take place very sparingly. The scandal hit the public space in April this year as an audio playback on the number one messaging platform in the country, WhatsApp. The conversation revealed a bargaining session with a lecturer asking a student to submit to five sessions of intercourse in exchange for better grades in a course the student allegedly failed. The student, in turn, demanded to know if she would get the highest possible grades for that number of sessions. The lecturer disagreed,and she backed out. The clip spread quickly round Nigeria’s social media population, put by researchers at over 19 million. Citizens reacted with

outrage. There were many questions. Where is the location of this misconduct? How could this possibly be happening? When did the rot in the university system get this putrid? The student entrapped the lecturer in an entrapment scheme he set up for his student. The local matter assumed national and global dimensions due to the influence of the new environment of mobile and social media and their broad reach. University Management at Obafemi Awolowo University took the appropriate step by setting up a panel to investigate the matter. That panel submitted its final report on June 14,and the University Senate acted decisively on the findings of the committee five days later. The report makes sad yet interesting reading. First, it submitted that Professor Richard Akindele had an “inappropriate relationship” with his student, Miss Monica Osagie. It established this fact “through their conversation in the audio recording; his reply to the query; the oral evidence; and the printed WhatsApp conversations tendered before the committee”. The lecturer “compromised his position as a teacher and examiner” as his conversations with the student were about examination scores “and inducement of favour for the alteration of examination scores.” Even as the student scored 45 percent in the paper, the lecturer made it seem she scored only 33

percent and offered to change that to a pass mark in consideration for sexual favours. The panel dismissed as unsupported by any evidence the professor’s claim that the student knew she passed with a score of 45 but sought an A grade as the reason for his sexual harassment. The action of the professor, the panel submitted, is “scandalous behaviour that has brought ridicule to the name of the University and has tarnished the reputation of the University, as it portrays the University as an institution where its teachers and examiners trade marks for sexual favours.” Teachers play a significant role in the lives of students. They have legal and moral authority over the wards in their care. They also stand as exemplars for students in higher institutions concerning the conduct and practices that should guide their behaviour on graduation. The Ife university situation touched a raw nerve in the country because of widespread allegations that such conduct is rampant in higher institutions with colleagues and authorities covering up. In the wake of the social media outing, many reports surfaced of similar incidents either with the disgraced professor or concerning others at OAU and other institutions. It is commendable that Obafemi Awolowo University has committed to “further steps to ensure the total elimination of Sexual Harassment (SH) in the OAU Community”. It said it would create more awareness

of what constitutes sexual harassment, even as these are in its Sexual Harassment Policy approved in 2013, and emplace an implementation framework for rapid redress of such incidents. It will also add Zero Tolerance to Sexual Harassment among its core values. Sexual harassment is usually unwelcome sexual advances, request for sexual favours and or solicitation in verbal, graphics, or physical forms as a condition for action that should not ordinarily attract such. It creates a hostile environment for learners. Educational institutions around the world battle with sexual harassment on a regular basis. The presence of a large body of young people of both genders traditionally excites and triggers hormonal responses. Best practice across the world has been to manage it through spelt out codes of conduct and, fundamentally, decisive action to curb malpractice. Responses range from procedures by specificinstitutions to those of a group such as the American Association of University Professors. The Teachers Service Commission of Kenya Code of Conduct prohibits outright any sexual relations between students and teachers regardless of consent Codes should be clear on standards of ethical conduct in this area including definitions of sexual harassment in its many forms, conflicts of interest, reporting and remediation procedures. End this scourge, please.

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Friday 29 June 2018

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BUSINESS DAY

MoneyInsight Personal Finance: Investing Retirement

Taxes

Credit Cards

Home Buying

Consumer spend on IT, telecoms to reach $4 trillion FRANK ELEANYA

onsumers’ appetite for traditional hardware, software, and telecommunications is expected to grow by only 3.7 percent to $4 trillion, a drop when considering the 4.2 percent it recorded in 2017. The latest Worldwide Black Book: Standard Edition from the International Data Corporation (IDC) shows that weakening economy due in part to tariffs, rising interest rates, and sluggish Chinese growth, along with the end of a capital spending cycle, will see decline to less than 3 percent as tech spending lags behind GDP growth. The IDC report predicts that annual spending will exceed $4.5 trillion. The strongest growth over the period will come from software and services related to third platform and digital transformation projects. Hardware investments will be led by cloud service provider spending on server and storage infrastructure. It also expects weaker growth from sell of PCs and tablets, peripherals, external storage

systems, and traditional outsourcing. “The infrastructure market is increasingly stable because a large proportion is now tied to the service provider model and overall demand for cloud services, which shows no sign of slowing down even in the event of a weakening economy,” Stephen Minton, vice president, Customer Insights & Analysis. “To some extent, this spending will be more insulated against economic downturns than end-user capital spending. Therefore, the IT market will be less vulnerable than it was in the past when any kind of GDP slowdown would translate into big declines for hardware

spending. Nevertheless, economic risks are now higher than three months ago.” He also noted that slowing growth in China could be a result of astronomical growth of mobile adoption which is currently dominating the market. Strong growth in software and services will only represent a very small proportion of average ICT budgets. “Cloud and mobile are still the big drivers for traditional ICT spending, as legacy products and services like desktop PCs and fixed-line networks either stagnate or begin to decline,” Minton said. Every region, including subSaharan Africa saw uptick in technology demand in 2017 due to stronger economic performance. The Middle East and Africa posted improving growth of over 2 percent, benefiting from business and consumer confidence, which enabled ICT players to work off the pent-off demand that had swelled in previous years of subdued growth.

Small Business Shopping

Financing

EM Central Banks to tighten monetary policies after US rate hike ...Nigeria unlikely to follow suit SOBECHUKWU EZE & EMEKA UCHEAGA

entral Banks in Emerging markets are scrambling to control the capital outflows out of their economies as the American Federal Reserve Bank has raised interest rates for the second time this year and fifth in the last two years. Jerome Powell, chairman of the Federal Reserve Bank of America also indicated that there is a possibility of two more rate hikes this year, as the Feds continue on the path to normalization of interest rates. Many emerging market companies have benefited from the low U.S. interest rates by refinancing expensive local debts with cheap ex-

the Fed’s rate decision. “Investors still view the Nigeria market positively. Foreign investors aren’t worried about the economy except for the naira risk,” he added. Afrinvest in their weekly report last week, stated that the fed rate hike mounted pressure on EM bond assets as the bond yields of Nigeria, Ivory Coast, South Africa and Ghana all rose last week after the interest rate announcement. They however also do not expect CBN to cut interest rate at the July 2018 MPC meeting because “it is important for the policymakers to keep Nigerian assets attractive in the face of the massive flow of hot money in the second half of the year.” The US rate hike although expected will likely still cause a ripple effect on emerging markets. Fred-

ternal borrowings. According to the Bank for International Settlements (BIS), there was about $2.4 trillion in dollar-denominated bonds issued by emerging markets outstanding in Q4 2017 compared to just $576 billion at the end of 2008, a significant increase during this period of ultra-low interest rates. According to Financial Times after the first interest hike early this year, the Bloomberg index of eight high-yielding EM currencies favoured by carry traders who borrow in the dollar or other lowinterest rate currencies to invest where interest rates are higher turned negative for the year with a decline of three percent in April. The index which includes Mexico, South Africa, Turkey, Brazil, India, Hungary and Poland has fallen almost 5 percent from its January peak as US bond yields have climbed. This is a strong sign of capital outflow from emerging markets which is causing currency weakness in these countries. Bongo Adi, an economist at the Lagos Business School, told BusinessDay in an interview he isn’t too worried about the effect of the fed rate hike on Nigeria. He said Nigeria had a better market performance compared with most other emerging economies last year, and so he does not expect the CBN to raise interest rate in response to

eric Neumann, the co-head of Asian economics research at HSBC holdings in Hong Kong, noted that “When the Fed’s on the move, central banks in emerging markets try to play catch-up”. HSBC now believes that two rate hikes may be expected from the Reserve Bank of India after it had earlier on predicted no change in their interest rate. It also forecasts that Bank Indonesia will propose a contractionary monetary policy against its earlier prediction that it will hold rates and just recently the bank increased its rates by 25 basis points. Some countries that were cutting rates are poised to hold off on further reductions, like in Brazil, where the central bank surprisingly kept its key rate unchanged this year after twelve consecutive cuts, reneging on its own guidance. Furthermore, Turkey’s central bank increased its interest rate after an emergency meeting by 300 basis points in May and in June increased by 125 basis points, surprising investors as it was the third increase in less than two month. Bank of Mexico and the People’s Bank of China (PBOC) could be expecting an increase in their interest rate, with Mexico expected to increase its interest rate this week and the PBOC less likely as it already has one of the highest rates according to a report from Reuters.

Singapore to cut cash usage, eliminate cheques by 2025 FRANK ELEANYA

ingapore is stepping up push towards digital payment with the reduction of cash withdrawals from automated teller machines (ATMs) and elimination of cheques by 2025. According to the country’s education minister, Ong Ye Kung, who is also a board member of the Monetary Authority of Singapore, explained at the 45th annual dinner of the Association of Banks in Singapore (ABS), that the goal is to protect consumers from epayment risks. The government is also hoping that the latest step will encourage more Singaporeans to adopt epayment technology. “Our aim is not to be a cashless society, but to use less cash and more e-payments,” Kung said. “When the level of convenience and confidence crosses a critical tipping point, adoption will rise across our population within a short time and become pervasive.” Presently, more than 8 in 10 Singapore consumers have adopted e-payments and nearly three in five merchants are compliant. The value of e-payments has been growing by more than $10 billion every year.

The country has also seen a drop of more than $300 million in ATM cash withdrawals. In 2015, customers’ cash withdrawals were almost 60 percent of e-payment transaction values. But this went down about 40 percent in 2017. Ong Ye Kung disclosed that the government hopes to reduce the number further to 20 percent in 2020. It also wants to cut cheque usage to 15 percent in 2020 and become an entirely cheque-free society by 2025. Analysts also believe that the country is accelerating the push to enhance its position as a regional financial hub and be able to com-

pete with other major cities including Hong Kong and London. A Bloomberg report revealed that local competition has also intensified as its largest bank DBS Group Holdings Limited engage ridehailing service Grab for digital payments. There is also potential competition from Chinese digital payment giant Ant Financial which is planning to expand its services in Southeast Asia. PayNow, the biggest service in Singapore, is reported to have over 1.4 million registered users who have transferred nearly $662 million since the service launched in 2017.

14 BUSINESS DAY Policy

Investments

Market

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Insight

Friday 29 June 2018

Influencers

INSIGHT

Highlights from Hogan Lovells renewable energy report ISAAC ANYAOGU

ne of the biggest law firms in the world, Hogan Lovells has published an important research on the Renewable Energy sector in Africa with the theme: Africa and Renewables Wholesale change or short term surge? According to the firm, the scale of need and opportunity for power and infrastructure project development in the continent remains colossal. In the 49 countries of sub-Saharan Africa, only approximately onethird of people have access to electricity. The estimated investment need for Africa is USD 50 billion per annum with two-thirds of that needed for power and transportation infrastructure This report explores how utility-scale renewable energy projects are being deployed across sub-Saharan Africa. It covers the decisions that have been taken and their successes and failures; the persisting hurdles and new opportunities; and how experiences in individual countries are informing deployment decisions in others. Off grid Business will presents the key highlights of the report in three sections beginning with Governments and regulators. Lessons for governments and markets Policymakers across Africa face the difficult task of weighing up a multitude of options to spur the deployment of power from renewable energy sources to supplement their existing generation mix. Much is at stake; creating the right frameworks

and clear policies has a huge impact on renewable energy deployment and usage rates. Structural considerations For governments, the report notes that one of the first key decisions, from a procurement perspective, is choosing whether to procure renewable power through a feedin tariff (FiT) regime, through competitive auctions, or through directly negotiated transactions that continue to feature in some jurisdictions. Analysing experiences across the world, the report found that FiT regimes, while opening the door for renewable energy projects, may risk burdening utilities and offtakers with expensive power if tariffs are set too high.

This is the case right now with the 14 solar PPAs the Nigerian government signed with solar energy operators since 2016 but has not reached financial close largely due to disagreements on tariff and their insistence on PCOA Using the experience of the Middle East as a case study, the report urges governments to set up systems that allow competitive auctions and observes that many African countries are shifting their approaches accordingly. As a consequence of the use of utility-scale energy projects, offtakers are often required to accept intermittent energy into their grids – this may require grid enhancements, the funding for which remains an issue that may affect the growth of

renewables in Africa, the report notes. It also says that connectivity to demand centers is also important. In cases where the relevant resources are far from demand centers decision makers need to consider interconnection constraints in transporting the energy to end users. Other considerations include, the report highlighted includes development of local industries, transfer of technology, training, use of local content, employment of nationals, stimulating growth of local capital markets (through share retention in the project) and availability of foreign currency. Other factors include managing any exchange control restrictions, addressing credit support issues, and trying to

overcome the challenges facing rural electrification. Another key decision is whether to stay on-grid or move off. in many parts of Africa, the decision is informed by cost, proximity to energy sources and availability of technical resources. The landscape is evolving such that developers are coming up with increasingly creative project proposals that combine different energy source including crowdfunding and microlending. According to the report, technological advances have facilitated even more paths for development and will continue to do so. Procurers can be overwhelmed by the wide range of options they face – for example, not only in relation to the type of technology but also in relation to maturity of the technology – and this has the potential to lead to project structuring issues, and delay overall procurement and funding timelines. Harnessing the power of the sun Africa has enviable solar irradiation levels almost everywhere across the continent, along with excellent wind, hydropower, and biomass resources, while geothermal potential is distributed less evenly. African countries have high solar potential, of around 10,000 GW, with the potential for solar PV alone estimated at 6,500 TWh per year. Coastal countries have high wind potential amounting to around 109 GW. Some east African countries have huge geothermal capacity estimated around 15 GW of geothermal capacity the Great Rift Valley, mainly in Kenya and Ethiopia. As the continent is

home to the powerful Nile and Congo rivers, hydropower potential is also apparent with an estimated capacity of 350 GW. Once lack of capital or renewable resource used to be a barrier of entry but with so much interest from developers willing to invest equity and capital from private sources and Development Finance Institutions (DFIs) available, that is no longer the case. While some of the challenges facing renewable energy deployment are country specific, the experiences of one country do inform decisions and outcomes in others. According to Svetla Stoeva from the European Investment Bank, renewable energies have increasingly become a sustainable and competitive choice for improving African countries’ security of supply and independence from fossil fuel imports. With the appropriate institutional and regulatory support and proper tendering practices, renewable energy projects can also achieve the best possible outcomes in terms of tariff levels and overall project quality, for the benefit of the local consumer. However, even in countries that have the political will and prior experience with Project Finance and PPPs, and that have set up adequate legal & regulatory frameworks, the negotiation of bankable legal documents (starting with Power Purchase Agreements) can be a lengthy and complex process. Many challenges point to the necessity of ensuring continued assistance to governments in the area of PPP project preparation, tendering and implementation.

PROJECTS

EU-funded solar heaters provide succour for Plateau students

he European Union (EU) and Germany has provided access to hot water to 1000 secondary school students in Nigeria’s north-central Plateau state. Coming through its Nigerian Energy Support Programme (NESP) – €33 million financial cache provided by the EU and Germany to promote investments in renewable energy, energy efficiency and rural electrification in Nigeria. According to the NESP, 68 units of solar water heaters were supplied, installed and commissioned as a pilot project at the Government

Science School (GSS), Kuru in Jos-South local government district of Plateau. It explained the solar water heaters were provided as a

grant, adding that they will supply hot water to 1000 students and staff of GSS, Kuru. Solar-heated hot water to warm school boarders

Jos is typically a cold state when compared with the rest of Nigeria. At an altitude of 1,217 meters (3,993 feet) above sea level, the city enjoys a more temperate climate than much of the rest of Nigeria. Also, average monthly temperatures in Jos range from 21 to 25 °C (70-77 °F), but from mid-November to late January, night-time temperatures drop as low as 11 °C (52 °F). Equally, in Jos, Hail sometimes falls during the rainy season because of its cooler temperatures at high altitudes. The solar heater would expectedly come handy to pu-

pils in GSS Kuru, who should be able run their early morning baths with ease. NESP explained the initiative was a pilot scheme to demonstrate the economic and technical viability of solar water heaters in Nigerian boarding schools. “It aims to save electricity and improve the students’ living conditions. The results of the pilot projects could serve as a basis for developing standards and incentive mechanisms for a widespread rollout of solar water heaters in Nigeria,” said the NESP. It noted that the Governor of Plateau State, Mr. Simon Lalong, officially commis-

Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378, Graphics: Joel Samson

sioned the pilot project in the presence of the Minister of State for Power, Works and Housing, Mr. Suleiman Hassan Zarma; Head of Development Cooperation at the European Union Delegation to Nigeria and ECOWAS, Mr. Kurt Cornelis; Deputy Ambassador of the Federal Republic of Germany; Ms. Regine Hess, and officials of the Plateau State sovernment and members of the benefitting communities. NESP is also implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with the Federal Ministry of Power, Works and Housing.

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COMPANIES & MARKETS

BUSINESS DAY

Nigeria has the lowest budget deficit among top 10 African economies

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Co m pa n y n e w s a n a ly s i s a n d i n s i g h t

12 banks made N126.90bn from fees and commission in Q1 BALA AUGIE

welve banks have raked in a total of N126.90 billion in net fees and commission in the first quarter, which represents a 13.45 percent increase from N111.98 billion recorded last year, according to data gathered by BusinessDay. The banks are Zenith Bank Plc, Access Bank Plc, Fidelity Bank Plc, First City Monument Bank (FCMB) Plc, Guaranty Trust Bank (GTBank) Plc, Stanbic IBTC Holdings Plc, First Bank Nigeria Holdings Plc, Sterling Bank plc, Wema Bank Plc, and United Bank for Africa (UBA) Plc, Diamond Bank Plc, and Union Bank Plc. Lenders in Africa’s largest economy have been seeking alternative ways of bolstering earnings as a drop in short term government securities signals end of free money. The fees and commission income by the banks were derived from account maintenance fees, fees from electronic banking channels, ATM charges, letters of credit commission, remittances fees, card-based fees, fees from brokerage commission, financial advisory fees, among others. A glimpse at the books of lenders shows Zenith Bank’s

fees and commission income dipped by 1.37 percent to N20.83 billion in March 2018 from N21.12 billion the previous year. Expectedly, noninterest revenue was down 10 percent to N26.57 billion in the period under review from N29.64 percent the previous year. Access Bank’s fees and commission income increased by 34.54 percent to N15.71 billion in March 2018 from N11.67 billion the as at March 2017. Stanbic IBTC Holdings Plc made N17.84 billion in fees and commission income in March 2018, which represents 35.26 percent increase from N13.19 billion made last year. FirstBank Holdings fees and commission income rose by 6.31 percent to N19.17 billion in March 2018 from N18.03 billion the previous year. UBA’s fees and commission income was up 15.39 percent to N15.13 billion in March 2018 as against N13 .15 billion the previous year. GTBank made N14.48 billion in fees and commission income in the period under review, from N13 billion the previous year as the lender continues to bolster noninterest revenue. Diamond Bank’s fees and commission income was down 1.69 percent to N6.87 billion in March 2018 from N8.27 billion the previous

year. FCMB’s fees and commission increased by 38.64 percent to N4.78 billion in March 2018 from N3.45 billion as at March 2017. Fidelity Bank’s fees and commission income increase by 4.60 percent to N3.63 billion in March 2018 from N3.47 billion as at March 2017.

Analyst say lenders will have to intensify their revenue generation strategy as a sharp drop in yields on short term government securities are expected to damp future margins. Fitch Ratings had stated that Nigerian banks might find it difficult to sustain their profitability this year, given

the decline in net treasury bill issuance by the federal government. It pointed out that Nigerian banks were highly reliant on net interest income to remain profitable, saying treasury bills was an important source of the banks’ profitability in 2017. In addition, Fitch stated

that its 2018 rating outlook for the Nigerian banking sector was negative, forecasting that some tier two banks would struggle to remain profitable this year. “We expect falling treasury bill yields and lower issuance to put pressure on Nigerian banks’ profitability in 2018,” it said.

MainOne’s MDXI achieves TCCF, now most certified Data Center in Nigeria Modestus Anaesoronye

ainOne’s Data Centre subsidiary, MDXI has received its Tier III Constructed Facility certification (TCCF) from the Uptime Institute. With this new milestone, MDXI becomes the leading Data center in West Africa with the top 5 certifications in the industry, being the Tier III Constructed Facility certification, TCCF, the PCI-DSS certification which certifies the Data center to process payment card infor-

mation, the SAP Infrastructure Services license which certifies the Data Center as ideal for running SAP applications and infrastructure, and ISO 27001 and 9001 certifications. This TCCF certification is awarded by the Uptime Institute as a performance-based evaluation of a data centre’s concurrently maintainable site infrastructure. Tier Certification of Constructed Facility is a progression from Tier Certification of Design Documents (TCDD) and goes beyond the review of paper designs to rigorous on-site testing to root out discrepancies between the

actual installation and design. The multiple certifications of MainOne’s MDXI demonstrate compliance to globally accepted standards on high availability, commitment towards the security and protection of the information assets of the company and its customers, and provides assurance of the quality of the Data Centre’s infrastructure and ability to react to disruptions due to unplanned activities. MDXI’s 600 rack facility in Lekki is the premier commercial Data Center in West Africa built to meet the rapidly growing demand for Colocation,

Managed Hosting and Cloud services within the region. General Manager of MDXI, Gbenga Adegbiji announced that the certification further validates the company’s investment in critical infrastructure to grow West Africa’s Digital Economy. “With the increased recognition of Africa as home of fast growing economies, it is important that we have the infrastructure required to establish, enhance and sustain effective business performance in today’s global digital economy. Outsourcing of Data Center services

to a reputable provider such as MDXI ensures businesses can adopt more cost effective models of consuming technology to allow increased focus on business development and growth. As we build a data centre ecosystem spanning facilities across West Africa, we plan to launch new Tier III data centres in Sagamu, by Q4 2018, Ghana in 2019 and Cote d’Ivoire in 2020.” Speaking on the presentation of Tier III Constructed Facility certification (TCCF) documents, President of Uptime Institute, Lee Kirby said “We congratulate MainOne’s

Data Centre Company, MDXI on receiving their Tier III Constructed Facility Certification Documents. This is indeed a significant step for the region and we look forward to working with them as they build multiple facilities across West Africa”. MDXI is West Africa’s largest full-scale data centre provider offering colocation, interconnection and cloud services to OTTs and major network, content and financial providers, as well as access to multiple Internet exchange points in Nigeria, Ghana, Amsterdam, and London

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COMPANIES & MARKETS

Nigeria has the lowest budget deficit among top 10 African economies EMEKA UCHEAGA

igeria’s estimated 2018 budget deficit is N1.95 trillion making it one of the country’s highest ever fiscal deficit. Sizable as it looks, the Nigeria’s budget deficit which is only 1.73 percent of Gross Domestic Product (GDP) is the lowest among the top ten economies in Africa according to BusinessDay findings. Behind Nigeria were Sudan (2.4%), Ethiopia (2.5%), Morocco (3.5%) and South Africa (3.6%). The South African and Nigerian governments are seeking to increase government spending this year to bolster economic growth after they both recovered from economic recession last year. Libya had the highest budget deficit among the top economies with a deficit to GDP of 23 percent as the oil production level is down 30 percent from its 2013 levels due to supply disruptions in the country. Other

Northern African economies such as Algeria and Egypt also had very high budget deficit to GDP ratio of 9 percent and 8.4 percent respectively. Most countries had a projected a lower budget deficit in 2018 than in 2017 as overall economic fortunes improved in Africa. Last week, President Buhari signed into law Nigeria’s highest ever budget with government expenditure expected to reach N9.12 trillion. Despite the increment of N1.8 trillion in 2018 projected budget expenditure from its 2017 level of N7.3 trillion, the current budget surprisinglystill had a lower deficit than it did last year. The budget deficit for 2017 was N2.36 trillion (about 2.18% of GDP) compared to 2018 budget deficit of N1.95 trillion (about 1.73% of GDP). The government was able to reduce the budget deficit despite the 24.6 percent increase in expenditure size for 2018 thanks to higher crude oil prices and a projected revenue growth of more than40 percent from its 2017 levels. Due to the late signing of the

budget, it may be unlikely that the economy will grow by the projected 3.5 percent this year. International Monetary Fund

earlier in the year forecasted that the economy will grow at 2.1 percent. First quarter economic growth in Nigeria was

AXA Mansard Health gets sector recognition for contribution to industry, economy

he nation’s leading health insurance company, AXA Ma n s a rd He a l t h has emerged as the Health Maintenance Organization (HMO) of the year at the 2018 Nigerian Healthcare Excellence Awards (NHEA). The awards ceremony which took place in Lagos was presented to AXA Mansard Health in recognition of its contribution to the Nigerian health care sector.

Nigeria Health Excellence Award is an annual event that recognises and celebrates outstanding personalities and organisations for contribution to the health sector through innovative, efficient and qualitative healthcare delivery services. Speaking on the recognition, the Chief Executive Officer, AXA Mansard Health Limited, Tope Adeniyi said, “We are truly delighted to be recognized as the Health

Maintenance Organization (HMO) of the year by the Nigerian Healthcare Excellence Awards (NHEA). This recognition is indicative of our unwavering commitment to provide effective healthcare solutions to Nigerians.” AXA Mansard Health recently launched Easy Care health insurance plan which allows subscriber to access various health care services with as low as N12, 000. Some of the available services on

the plan include, In and Out Patient Care, General and Specialist Consultation; XRays; Laboratory & Diagnostic Tests. Other health care benefits accessible to subscribers on the plan are NPI Immunizations; Prescribed Medicines & Drugs; Accidents & Emergencies; Dental care; Evacuation of patients to the hospital; HIV/AIDS – to the Extent of Diagnosis and Treatment at Free Specialist Centres nationwide.

Ecobank MD task auditors on sound banking system HOPE MOSES-ASHIKE

cobank Nigeria has called on audit executives of banks to the take advantage of their independence and unfettered access to their respective boards and management, and industry sector regulators to showcase their potentials and competencies and entrench a sound and wholesome governance environment in banks to stem potential bank failures. Charles Kie, managing director, said the Auditors has a strategic role in instituting sound corporate governance

culture in the banks. Kie, who gave this advice while presenting a paper titled: The Role of Audit in Promoting Good Corporate Governance in the Financial Services Industry’ at the 39th quarterly general meeting of the association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), observed that the recent warning by Nigeria Deposit Insurance Corporation (NDIC) that another bank failure is imminent in the country on the back of weak corporate governance culture and weak internal control must be taken seriously. He pointed out that the

last two decades have been eventful in terms of changes in the corporate governance landscape. He stressed that abuses at the executive suites and governance failures have led to unprecedented changes in regulatory frameworks and how businesses are controlled and directed locally and globally. “My dear auditors, the expectations are high and you must justify the confidence reposed on you by investors and other stakeholders. The social cost of banking crisis is difficult to estimate, but the public funds used to bail out

distressed banks run into billions of naira. The time to act is now.” he stressed. Further, the Ecobank boss observed that internal auditors are increasingly being criticized for their effectiveness in instilling a proper control and governance environment, urging them to stand up and be counted on the side of integrity and professionalism. Earlier, Chairman of the association, Yinka Tiamiyu, stated the readiness of the auditors to continue to enhance corporate governance in the banks to make the industry safer.

only 1.95 percent. Economists have warned that the sharp increase in budget spending may bring about

higher inflation as spending is expected to increase in the country as the general elections draw closer.

Heritage Bank partners NANTA to launch Nigeria Travel Practitioner Identification card

eritage Bank Plc, Nigeria’s most innovative banking services provider, has partnered with the National Association of Nigeria Travel Agencies (NANTA) to launch the Nigeria Travel Practitioners Identification Card (NTPIC). Fela Ibidapo, head of corporate Communications of Heritage Bank, said the bank partnered with the travel agencies in a bid to help to sensitize and sanitise the industry. He said in an industry with unconfirmed member list of about 60,000, they felt they could help to create a platform that would enable them to provide better services to their clients in a bid to separate the genuine agents from the fraudulent ones. Ibidapo said the initiative would help the bank to put in place services that could help the genuine operators and the economy in the long run. Bernard Bankole, President of NANTA said the idea of the identification card was birthed by the Nigeria Civil Aviation Authority (NCAA) and other stakeholders in the

industry because of the need to sanitise and decontaminate the downstream sector of the industry. He said the initiative has become imperative because the travel business in Nigeria has become one for all and sundry with absolute disregard for professionalism, adding that the global nature of the business has been adulterated by fraudulent people who have little or no regard for the business. Bankole noted that this appalling act has continued for several years, undermining the professionalism of serious minded consultants within the industry, thereby threatening the existence of a business whose primary focus is to distribute inventories on behalf of the principals, who are the airlines. The president noted that worried by this development, the executive council of NANTA, the umbrella body responsible for all travel agencies in the country, decided to find a lasting solution to the industry which contributed about N504 billion to the Gross Domestic Product (GDP) in 2017.

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BUSINESS DAY

COMPANIES & MARKETS Demand picks in prime office market as investors aversion for risk drops CHUKA UROKO

ue to a combination of factors including improvement in macro-economic environment and less risk aversion by investors in the economy, the prime office market has seen renewed demand for space even in Grade A office buildings where the market has been quite slow. Available report on the office market transaction in the first quarter 2018 shows that the majority of enquiries recorded during the period, as strong as they were in a few cases, could not translate into concluded transactions. This was reflected in the average time taken to close a transaction from first enquiry falling within 12 to 18 months being slightly higher in comparison to the 6 to 12-month period in pre-recession 2016. As against 1000-1,500 square metres pre-recession demand, occupier demand for space has reduced to units

between 200 square metres – 500 square metres, with most of the concluded transactions in the quarter falling within this range. Nnenna Alintah, Head, Occupier Services at Broll Nigeria, points out that there were, however, a few exceptions, with strong enquiries in the oil and gas, FMCG, healthcare and other industries that were above 1,000 square metres. “The oil and gas sector dominated demand and enquiries in the first quarter of 2018, however, there is strong demand from a diverse number of sectors such as power, marine logistics, finance, media and professional services”, she says Many entrepreneurs and startups continue to channel their demand for space towards shared work spaces (co-working), a trend observed in the previous quarter and one that is expected to continue to expand with more service providers entering the market. The office market has seen challenging conditions, but the level of activity in the market,

although limited, has triggered some optimism amongst certain landlords. This has been evident in revised asking rents that some landlords are offering in the market. In the first quarter of 2018, the median average asking rent for A-grade spaces in Ikoyi was US$750 per square metre per annum which has remained constant relative to Q4:2017. In the Victoria Island commercial node, the median average asking rent was US$650 per square metre per annum, a hike from the previous quarter’s median average of US$600 per square metre per annum. Upward rent revisions also underpins optimism about the country’s economic prospects as well as renewed investor confidence which landlords expect to translate into increased activity in the commercial real estate market. But with the current level of supply in the market, landlords remain price takers. This explains why many concluded transactions have recorded achieved rents that are a fraction below the initial asking rents.

Business Event

Abiola Ajimobi, governor, Oyo State; Vice President Yemi Osinbajo as he receives a gift from some Government Enterprise and Empowerment Programme (GEEP) MarketMoni beneficiaries at the Oyo State Micro Small and Medium Enterprises (MSME) Clinic in Ibadan, Oyo State.

Flour Mills reward major distributors for contribution to growth AGNES IBOROMA

lour Mills of Nigeria has rewarded its key distributors for their contributions to success and growth of the company. Paul Gbededo, the GMD and some of the senior management team members of the Food Division including the MD Foods, Delvin Hainsworth were at hand to appreciate and celebrate with some of the key distributors who won several prizes at the award ceremony. Head of consumer sales for the company, Nick Pearson speaking at the event in Lagos said it was mainly to appreciate their major distributors across the country for what they are doing with them over the years

and also to give them an update on what the company intends to do. He added that the company has some new products in the market and will be advertising them soon. The head of sales FMN, Paul Udochi spoke that the company will be rewarding three of their top customers by giving them trucks to support logistics and redistribution efforts, and added that they deserved the gifs because they have invested in the business and partnered with them through thick and thin. “They have been consistent with their delivery and investments and the gift was to make them happy so that they will invest more as 80 percent of the company’s business was driven by the distributors. The Managing Director, Foods FMN Delvin Hainsworth,

said that the company planned to increase their partnership in the new financial year, and regardless of the economic situation in the country they are determined to maintain their strategy of feeding the nation by ensuring that their products are available and affordable. The top awardees (national foods customer) received brand new Isuzu NQR-8 Tons Diesel Engine Trucks, while other categories received brand new Isuzu NQR-7 Tons Diesel Trucks, Isuzu QKR 5.2 Tons Diesel trucks and Mitsubishi Fuso 6.5 Tons Diesel Engine Trucks. The awardees in all expressed their appreciation to the management of FMN, and expressed excitement on efforts of the company towards empowering its customers.

L-R: Adelaja Adeleye, regional head, South-West, First City Monument Bank (FCMB); Bukola Smith, executive director, business development; Omolewa Ahmed, first lady of Kwara State, and Modupe Oyekunle, president, NECA Network for Entrepreneurial Women (NNEW), during a capacity building programme for women entrepreneurs in Kwara State organised by NNEW in partnership with FCMB and office of the first lady of Kwara State in Ilorin, Kwara State.

Fintech helping banks to meet financial needs of their teeming customers

L-R: Muyiwa Majekodunmi, coordinator, Down Syndrome Foundation; Anthonia Nduka-Jones, head business support services, FirstBank; Gbenga F. Shobo, deputy managing director, FirstBank; Solomon Omere, member of the Down Syndrome Foundation family; Rose Mordi, founder Down Syndrome Foundation, and Abiodun Famuyiwa, group head, products and marketing support, during the Bank’s donation/visit to the foundation as part of the Bank’s CR&S Week activities.

In a statement, the Chairman, CIBN Lagos branch, Kola Abdul, was quoted as saying that “as relevant and transformative as financial technology is to the financial service providers globally, the threat it poses to the traditional banking industry is huge and must not be overlooked.” The chairman stated further that the branch, in collaboration with its parent organisation, was willing to collaborate with relevant stakeholders to embark on sensitisation of banking industry on the real threats posed by Fintech. The statement quoted the Publicity Secretary, CIBN Lagos branch, Jide Iyanda, as noting that the financial innovation brought by the emergence of

L-R: Nicolas Poire, sale regional manager,ONESPAN Mike Odusami, chief executive officer, MAXUT Consulting, Christian Hertsens, vice president of sales, EMEA South ONESPAN and Olumide Ajayi- Obe, senior vice president, MAXUT Consulting during the 3rd annual banking security summit organised by the firms in Lagos recently.

HOPE MOSES-ASHIKE

he Chartered Institute of Bankers of Nigeria, Lagos State branch says the financial space has been revolutionalised with the deployment of financial technology by Deposit Money Banks in meeting the financial needs of their teeming customers. It said recent reports indicated that investment in the technology in the Sub-Sahara Africa was witnessing growth. This, it said, had thrown up the need to carry out study on the real threats the growth portends for the nation’s banking industry and allied service providers.

Fintechs also came with its opportunities and challenges. According to Iyanda, the developments informed the reasons the Lagos branch of the CIBN , in its forthcoming “2018 Bankers and Stakeholders Nite” is focusing on Fintech. According to the statement, the one day event which has the theme, “Big data, Fintech and the future of banking,” will hold in Lagos in July. The annual Lagos bankers and stakeholders’ event has become a veritable platform where topical national issues bothering on economy, banking industry and enterprise risk management are being thrashed out by experts in the fields.

BUSINESS DAY

FINTECH News

Products Review

Technology Review

Personality Review

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Friday 29 June 2018

Company Review

PRODUCTS REVIEW

Piggybank goes bullish on interest rate payment Stories by FRANK ELEANYA

iggybank has announced an adjustment to its interest rate for savers on its platforms from 6 percent to 10 percent annually for normal savings. Safelock savings has also been increased from 10.95 percent to 12.4 percent. Effectively, Piggybank’s move renews pressure on banks’ digital services such as Alat by Wema and core fintech startups like CowryWise, which also provide savings services to the estimated 26.5 million low and middle income savers in Nigeria with a market size of $2.2 billion. Piggybank customers will also start receiving interest on their savings every first day of the month. This is against the old practice of paying interest at 2.5 percent on July 1st. The company have also introduced a new feature called Piggy Flex Account – a

sub-account where all interests earned on Piggybank.ng will be paid.

“All funds in your Piggy Flex Account are yours and can be accessed anytime, at

no charge. This is separated from your normal savings,” an email from the company

stated. The company had on May 31, announced $1.1 million seed funding it raised from high net worth individuals, led by Olumide Soyombo, founder of LeadPath Nigeria, with participation from Village Capital and Ventures Platform. During the announcement, Piggybank’s co-founder and Chief Marketing Officer, Joshua Chibueze, noted that the funding will fasttrack their expansion projects and help them capitalise on many opportunities that the market presents. He also disclosed that Piggybank was at the verge of securing a microfinance institution licence from the Central Bank of Nigeria. The increase in interest rate may come as a welcome gift for it’s over 53,000 registered users and encourage them to save for longer with the hope of earning higher interest. It could also surprise some industry experts, given that the company generates its revenues through

asset management, which currently stands at 5 to 7 percent. “We pay interests from revenues generated after our float is invested in instruments such as government bonds and treasury bills,” Piggybank told BusinessDay via email. Yields on treasury bills are down presently from about 14 percent to around 12 percent. However the company believes that this will not affect its new strategy in the long term. “While yields are indeed down, investing as a corporate institution and in bulk with financial houses affords us higher interest rates than investing as individuals would,” the company explained. “Also, establishing relationships with other financial institutions has given us the opportunity to diversify our portfolio and open up more revenue streams. Our operational costs are also relatively low because a lot of our processes are automated.”

services by offering products that are commercially viable yet not predatory,” Tayo Oviosu, founder and CEO of Paga noted in a statement. He disclosed that Paga leverages on human interaction to ensure that its services are clear to end users. It is also investing in consumer financial literacy programs in communities where Paga outlets are located. “There is still a long way to go, and the government

has to get involved with creating initiatives such as “Financial Literacy Week” which is now practiced nationally in India, a country that has aggressively tackled financial inclusion and has seen the growth from 53 percent to 99 percent of households having at least one member with a bank account. Problems such as lack of national identity also hinder services like lending and credit facilitation,” Paga stated on Medium.

TECHNOLOGY REVIEW

Paga joins global fintech alliance to map industry guideline

igerian online p a y m e n t p l a tform, Paga has joined an alliance of over 50 financial technology (Fintech) investors and innovators to map guidelines for the benefit of players in the space. The global fintech landscape is exploding as startups in the space increasingly attract investments and become major partners in the drive for financial inclusion. In Nigeria, fintechs

such as Lidya, Flutterwave, Paystack, Paylater, and Piggybank have the industry at attention. These companies have at various times announced significant product adoption, which clearly underscores the potential of the space. Nevertheless, the players, investors and consumers are also seeing rise in risk factors which in most ways undermines the growth of fintech industry. This has also engendered the need

for a framework that will guide all stakeholders in the ecosystem. The alliance is the brainchild of by Goodwell Investment and Alitheia Capital with partnership with International Finance Corporation (IFC). The goal of the alliance is to develop a set of guidelines for investors who are invested in funding inclusive digital financial services in a responsible way. The Guidelines for Re-

sponsible Digital Financial Services as they will be known, a voluntary framework that organisations can sign up to and use as guidelines when they invest in responsible financial services. The guidelines will benefit digital financial service providers and their customers by helping investors to better evaluate and manage risks associated with digital transformation. “Paga is committed to responsible digital financial

Friday 29 June 2018

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BUSINESS DAY

7 out of 10 women have fibroid says expert ...as RISEN support 63 nursing mothers with relief materials SIKIRAT SHEHU, Ilorin

n expert in health sector have called for more proactive measures in managing the rise in prevalence of fibroids saying that seven in every 10 women in Nigeria have fibroids. This assertion was made known by Robiu Olayinka Balogun, a professor and chief medical director, Surulere medical centre , Ilorin, Kwara State at the 7th Ridwanullahi Islamic Society of Nigeria (RISEN), annual Ramadan Baby Programme 2018, held recently discussing on the topic, “types, causes and cure of fibroid”. “Fibroid affects women when they reached puberty stage until they stopped menstruating. Nobody

know the cause of fibroid but we know it is very common among the black people. We also knew that in every 10 women, at least, seven will have fibroids,” said Balogun. Balogun added that Fibroids are common and usually have no cause. It affect females between puberty and menopause

stages in women. Thus, it does not occur in girl child nor seen in woman after menopause. “Fibroid also known as uterine myomas, fibromyomas or leiomyoma’s vary in sizes. Some are the same size as a pea and some can be as big as a melon”. He explained that fibroids can increase in size,

Kasi Healthcare partners University of Georgia, Tbilisi Europe to train 10,000 Nigerian health professionals over the next 10 years KEMI AJUMOBI

asi healthcare, a Lagos based healthcare company doing more for healthcare in Nigeria by designing, organizing and operating healthcare facilities and services according to international safety guidelines, has announced a partnership with the University of Georgia Tiblisi in Europe to train 10000 NIgerian health professionals in the area of Medicine, Dentistry, Nursing and Pharmacy over the next 10 years. The announcement was made by the Director of Kasi Healthcare, Dayo Osholowu at the opening of the University of Georgia Tiblisi Europe

the health sector where there is a ratio of 1 doctor to 5,000 patients as a result of mass exodus of doctors abroad. So, Kasi Healthcare, through its partnership with the University of Georgia Tibilisi, is seeking to bridge this gap by helping to raise a new generation of doctors, and professionals in other fields, who are equipped with the global training in line with our vision for Nigeria. The Rector of the University of Georgia, Konstantine Topuria also commented on the opening, stressing that the University of Georgia has a vision beyond just enrolling students to the University, they also seek to establish academic ties with Universities in Nigeria.

David Oyeniram, Education Specialist, Kasi Healthcare, interacting with a prospective student at the University of Georgia Tbilisi Europe Representative office located at Kasi Center for Telehealth Lagos.

Representative Office located at Kasi Center for Telehealth Airport Road Lagos. Through the partnership, Kasi Healthcare will be using technology to train doctors via teleeducation at Kasi Center for Telehealth, Lagos Airport which has a world-class telemedicine suite powered by Fiber Optics internet broadband service which is 50 times faster than the fastest LTE service available in Nigeria. Osholowu added further that “Nigeria has lost a lot of specialists to foreign countries. The situation is dire in

“I believe the partnership with Kasi will be the beginning of a mutually beneficial cooperation in the area of medical education between Georgia and Nigeria. We look forward to having a productive and fruitful cooperation with mutually beneficial terms”, Topuria said. Explaining the importance of the partnership and the admission process, the Education Specialist of Kasi Healthcare, David Oyeniran said “The Nigerian Office of the University of Georgia is excited to announce, over the next two

months, on spot admission to the University of Georgia, Tbilisi. UG is an institution that offers quality education and a dynamic university life. The partnership with Kasi Healthcare affords Nigerian students the opportunity to study at the university with low fees rates, and a chance to undergo clinical attachments at our clinics in Nigeria while undertaking training in Europe. Also, I would like to add that from July - August 2018, UG will have presentations, as well as offer spot admission in medicine, dentistry, pharmacy and nursing in Lagos. The interviews will be held at the Kasi Center for Tele Health Airport Road, Lagos.” He further adds “Finally, UG has partnerships with universities of high repute in the European Union (EU) and around the world. It is also part of the Erasmus+ program which allows students to be part of exchange programs in leading American and European universities for one or two semesters, therefore the student’s experience is not limited to Georgia alone.” Kasi Healthcare has also announced a pre-medical school summer programme for secondary school students in Nigeria with the aim of fostering knowledge and transforming to reality the dream of becoming a health professional for students in SS1 and SS2, especially those who may consider it out of reach. This, according to the healthcare company, will be done under its Kasi Cares Initiatives, with the goal of raising a new generation of doctors and health professionals who are equipped with the right training and mindset for the country.

decrease in size or even go away with time. They can occur anywhere in the womb and are named according to where they grow. Like Intramural fibroids grow within the muscle tissue of the womb which is the most common place for fibroids to form. “A fibroid is an overgrowth of smooth muscle cells, and other cells from the lining of the womb (uterus). The womb is mainly made of smooth muscle. It is not clear why fibroids develop. “Fibroids are sensitive to oestrogen and progesterone, the female hormones that are made in the ovary. It tend to swell when levels of female hormones are high.” He identified prolonged and heavy menstrual circul, tummy (abdominal) swelling and urinary problems, and lower back pain among others as symptoms of fibroid. Balogun, further ex-

plained that, “fibroid does not stop women to conceive or getting pregnant, it does not affect if it is properly managed. “In the whole world, there is no treatment for fibroid than operation. Whatever treatment given to the patient will only prevent it from growing bigger before operation because if it is in the womb, it spoils the uterus.” He warned that if the fibroids grow into the cavity of the womb they can sometimes block the Fallopian tubes and may press on the bladder which lies in front of the womb (uterus), then you pass urine more often than usual. “As long as you delay the treatment, the longer it creates problems in the womb. So, it is better when discovered in patient to treat it as early as possible. Only pregnancy is a remedy. As long as that woman has the womb, the factor

that brought about fibroid, is still there and the woman doesn’t get pregnant, it will continue to develop. “Pregnancy automatically discourage it from growth. Therefore, anybody that has gone through fibroid operation are advised to go and get pregnant because that can only suppress what make fibroid grow frequently.” Also speaking is Abdulrahman Usman, the founder and National President of RISEN, who disclosed that the initiative was borne out of concern and care to celebrate the children that were born during the Holy month and supported 63 parents. “We distributed 95 of cards to about 12 different hospitals and we were able to support 63 nursing mothers today. This is a yearly programme and will continue. So we plead with well to do individuals or groups to assist us financially.”

CENTER FOR T E L E H E A LT H Lagos Airport

CAN’T GET ADMISSION INTO A SCHOOL OF MEDICINE? Become a doctor at one of Europe’s leading universities! University of Georgia, Tbilisi, Europe Representative ofﬁce now open at Kasi Center for Telehealth, Lagos Airport On the spot admission to study Medicine, Pharmacy, Dentistry and Nursing Personal consultation with experienced health professionals in student's area of interest Admission interviews via tele-consultation with advanced technology

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Call for your appointment 08177777650 www.kasihealth.com

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ARC Nigeria: Private sector collaboration will strengthen public health care … private sector expertise, talent development key to solving supply chain challenges

xperts in the private health sector are worried over the huge supply chain and logistics challenges and are offering opportunities for massive impact, saying that collaboration with other key stakeholders will strengthen public healthcare of the country. Recent World Bank ranking shows Nigeria underperforms global and regional peers on key levers of logistics and supply chain efficiency. Lagos State Chamber of Commerce and Industry (LCCI) transport and logistics survey conducted in 2014 showed that 25 percent of annual profit of industrial operators in Lagos State is lost to the clumsy transportation system. More worrisome is the fact that studies confirm shortage of logistics staff and managers, however universities in Nigeria are not aligned well with industry or government needs in supply chain capacity. To change the paradigm, Muntaqa Umar-Sadiq, CEO, Private Sector Health Alliance of Nigeria, speaking at the maiden ARC Partnership Forum revealed that the private sector has the expertise, resources, and capabilities that the public health sector can benefit from to increase availability of medicines and health commodities at the last mile by building efficient, effective and resilient supply chain systems. “The impact ARC aims to achieve is an improved performance of the supply chains to increase availability of medicines health commodities at the last mile. “Collectively, the private sector possesses both tangible and intangible assets that give it a distinct advantage in tackling specific health issues, including

L-R: Muntaqa Umar-Sadiq, CEO, Private Sector Health Alliance of Nigeria, Jim Coughlan, Global Solutions Director, UPS Foundation, Azuka Okeke, Regional Director, Africa Resource Centre, Jarrod Goentzel, Founder and Director of the MIT Humanitarian Supply Chain Lab in MIT, USA, and Bronwyn Timm, Strategy and Partnership Lead, Africa Resource Centre, South Africa at the maiden ARC Partnership Forum in Lagos, Nigeria.

building efficient, effective and resilient supply chain systems,” Muntaqa explained. ARC Nigeria, which is a collaboration of Private sector Health Alliance of Nigeria and Bill and Melinda Gates Foundation, is calling on private sector collaboration in Nigeria to strengthen public health supply chain especially in availability of vaccines, essential medicines, and medical products. Azuka Okeke, regional director, Africa resource centre for supply chain revealed that ARC Nigeria is currently working to build a centralised and regional supply chain resource centre that can provide independent advice, develop partnerships and share experiences and learnings across countries to help ministries of Health meet their public health goals. “ARC is focusing on areas that collectively leverage supply chain expertise, tools and capabilities to support performance improvements in the public health system. These areas include supporting supply chain strategy, advocate for sup-

ply chain investments and provide independent advice and expertise; support ministries of Health to shape investments and align donors and implementing partners, access private sector expertise, tools, methods and capability to improve supply chain transformations and supply chain management as well as broker partnerships to strengthen ministries of Health capability and build long-term talent for supply chain in Africa,” Azuka explained. Jim Coughlan, global solutions director, UPS foundation, pointed out that the biggest opportunity is finding ways to engage the private sector given their knowledge level or intellectual capital in supply chain management. “Supply chain leadership is a skill set that requires development. UPS and Global Alliance for Vaccine and Immunisation (GAVI) worked together on a program called Strategic Training for Executive Programme (STEP) which is currently running in Nigeria. That STEP program is about leadership in supply

chain leadership. It also is a program for mentorship where organizations like UPS can be a part of the mentor program which stays engaged with the participants and shares that knowledge space. “The STEP programme is based on a framework of professional competencies for supply chain managers. It brings in private sector innovation from logistics leader United Parcel Services (UPS) with the intent to help participants develop their problem-solving skills and foster effective team building approaches”, Coughlan explained. The ARC Partnership forum brought together corporate private sector partners from pharmaceuticals, FMCGs, logistics and transport, telecommunications, etc. including government and development partners with an aim of sharing experiences, and exploring new ways of partnering with the public sector to achieve measurable results in healthcare. Also, the forum brought to the fore how private sector is strengthening public health supply chain.

Unilorin spends N40m on drug purchase SIKIRAT SHEHU, Ilorin

n its sustainable effort to provide the staff and students of the University of Ilorin with quality health care services, the authorities of the institution have released a sum of N40 million for the purchase of drugs for the University Clinic. Abdulrasheed Odunola , the acting director of the university health services who disclosed this in Ilorin the state capital said that,

HBL TEAM

“the vice-chancellor, Sulyman Age Abdulkareem, recently approved the release of N40 million to equip the university clinic with adequate drugs to ensure that staff and students have access to quality and affordable health care system on the campus”. He revealed that about 14 companies were contracted to supply the drugs, saying that many of the companies have already delivered their consignments while the remaining

few companies are expected to deliver their drugs very soon. The medical director also disclosed that the University administration has equally concluded arrangement to employ more doctors and other health personnel for the University Clinic to make sure that the health of members of the University community is adequately taken care of. According to him, the University Board of Health has mandated all staff of

the University of Ilorin to visit the University clinic for medical check-up on their respective birthdays. Speaking on the World Blood Donor Day that was marked recently, Odunola encouraged staff and students of the University that are within the age range of donating blood to willingly and freely do so to save lives of those in critical health conditions but could not afford the cost of blood purchase for their sick relatives.

ANTHONIA OBOKOH and ANI MICHAEL / Reporters I David Ogar, Graphics

Friday 29 June 2018

Multi –speciality hospital takes step towards advancing health of Nigerians ANTHONIA OBOKOH

o coincide with the ‘soft opening’ of its purpose built MultiSpecialty Hospital in Port Harcourt Nigeria, Princess Medical Centre, a leading private multi-specialty hospital group with over 30 years history of advancing the health of Nigerians has taken major steps by opening its doors to Nigerians for services they would have normally paid for. The new hospital in Port Harcourt, Rivers state Nigeria called THE SIGNATURE is designed to be the first hospital to combine the Patient-Hotel concept with care giving in Nigeria, built on six floors with technologically advanced medical equipment and patient concierge system. With plans to launch a mobile application that will allow patients to book appointments to see a specialist or schedule care from the comfort of their home and offices, personalised healthcare delivery is taken to a whole new level. Emi Membere-Otaji, chairman of princess medical centre said “the hospital group is poised to contribute its quota towards reversing the over 1billion dollars lost as capital flight yearly by creating an effective and efficient health system that addresses healthcare for all”. “As part of its corporate social responsibility initiative we seeks to provide free medical screening and consultations to Nigerian

citizens at THE SIGNATURE Hospital in Port Harcourt. This is to be accompanied with free eye checks and free drug prescriptions. “This exercise is slated to hold at Princess Medical Centre - THE SIGNATURE on 5, Ndahbros Street, Trans Amadi Industrial Layout from Thursday 5th July to Saturday 7th July, 2018 between the hours of 8am - 4pm daily. It is expected to offer free healthcare services to hundreds of Nigerians to cover general practice, women and children’s health, eye care, laboratory diagnosis and other core medical specialties”, Membere – Otaji said. According to Ademolu Owoyele, chief operations officer, the only way to curb medical tourism is to improve Nigerian hospital infrastructures, improve health outcomes and this is exactly what Princess Medical Centre has been doing for over 30 years and taking several steps further by being the first hospital in Nigeria to combine the patient-hotel hospital concept with caregiving where personalised patient healthcare is not just a science but also an art. “Over 60 per cent of the loses to medical tourism is spent on 4 major clinical areas and we have taken the bold step to set up centres of medical excellence in two of these specialties – Cardiac and renal as part of our mid-term plans, said Ugochukwu, medical director, Princess Medical Centre.

Prevalence of HIV/AIDs in Edo state declines to 4.1% IDRIS UMAR MOMOH, Benin

do State Government has expressed worry over the Human Immune- deficiency Virus/ Acquired Immune- deficiency syndrome HIV/AIDs prevalence to 4.1 percent in the state against the National rate. Florence OyakhilomeEdemode, executive director of Edo State agency for the control of AIDS (SACA), gave the hint in an interview with newsmen in Benin-City. According to Oyakhilome-Edemode, “As at 2012, when we came on board the prevalence rate of HIV/AIDS in Edo State was 5.3 percent but with the implementation of intervention programmes put in place by the state government such as empowerment of about 20 organizations with grants, by 2014 survey, the prevalence rate has dropped significantly to 4.1 percent of the state’s population.

“This is still worrisome because it is still higher than the National prevalence rate of over 3 percent. That is why we are worry, but all hands are on deck to ensure that we get to zero percent”, she said. BusinessDay recall that, Isaac Adewole, minister of health in August, 2017 disclosed that a total of 173,600 persons were living with HIV/AIDs virus in Edo state. The minister, who referred to the 2016 statics during a visit to the state governor, Godwin Obaseki in government house also disclosed that 25,730 persons living with the virus were on antiretroviral treatment. Edemode, said plans have been concluded by the agency to embark on aggressive sensitization enlightenment in rural communities across the three senatorial districts in the state on safe sexual relationship especially the youths and using unsafe sharp objects.

BUSINESS DAY

Friday 29 June 2018

AgriBusinessInsight Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in News content and your Commentaries to caleb.ojewale@businessdayonline.com

Expert Views

Analysis

Innovating the cattle business ‘out of violence’ (1) CALEB OJEWALE Twiiter: @calebtinolu report by Mercy Corps, sponsored by the British Department for International Development (DFID) noted that, the farmers-herdsmen conflict in Nigeria has lasted for more than a decade with no gaze on a lasting solution. The conflict has further worsened the prevailing insecurity in the nation, contributing immensely to poverty and food insecurity even in regions, such as Benue, Kaduna, Nasarawa, Plateau and Taraba state purported as the food basket of the country. The report also noted that, since 2006, more than 1,400 people, including farmers, herdsmen, and locals from the host communities, have been killed as a result of the clashes related to cattle grazing (including more than 70 farmers recently killed in Benue - January 2018), and over 100,000 casualties in form of farms, houses and other valuables, have been recorded over the years with property worth $14 billion lost between 2013 – 2016 only. The herdsmen-farmers violence has been discussed exhaustively in recent time, with a lot of anger being

expressed at the loss of lives and property. Equally important however, is the need to map out innovative, feasible alternatives in the cattle business, and what stands out is that; cattle rearing needs to become a business, one driven by the private sector, and not by the government setting up ranches. The cattle business, like other agricultural e n d e av o u r s re q u i re s innovation and allinclusiveness for every Nigerian to take up, and not a sort of exclusive venture for the Fulani. Audu Ogbeh, minister for agriculture and rural development, affirmed this when he said, “many of you who may go into ranching, don’t have to be Fulani at all; you don’t have to be a Fulani man to keep cattle. And it is something I am asking you to think of especially because we are now going into massive cattle breed

improvement through artificial insemination. We are buying semen from Holland and Brazil.” Ogbeh explained that while in Brazil a few months ago in a state called Mato Grosso do Sul, he found out that with a population of only three million people, they had 30 million cows, and produce good beef and good milk. “There is no quarrel between herdsmen and farmers in Holland, New Zealand, Brazil or Australia. Many of you going into agriculture should have this foresight,” he said. This is however possible, only because these countries have made cattle rearing a proper business, one where ruminant animals do not roam the country’s length and breadth. The decision by herdsmen to migrate in search of greener pastures has also been described as counterproductive. The

north south movement, and later the south north movement in search of pasture, consistently leads to losing whatever weight has been gained during grazing periods. In the dry season, cattle could potentially lose as much as 50 percent of their weight, if there is no adequate feeding. “Within the confines of the ranch, the animals can be sustained. You will be sure you can get feed and water for them, providing all these within the ranch. That then will minimise the movement outside the ranch in search of water and feed, in the course of which destruction of farmlands and communal clashes occur,” says Chryss Onwuka, a professor of ruminant animal nutrition and president of the Nigerian Society for Animal Production. As Ogbeh also remarked; when your cow in Nigeria marches from Adamawa to Lagos that is a little more than exercise, therefore we have to confine Nigerian cows in ranches willy-nilly. And when we do, you young Nigerians here, I can assure you if you have just 20 milk cows behind your house, well secured, feeding the cows with at least 10kg of fodder per day, and 40 litres of water, then you will collect enough milk to be a very comfortable Nigerian without looking for a job.

Delta state flags off 2018 pig multiplication, farmer support programme ADEROJU JONATHAN

hisyear ’spig multiplication and farmersupport programme has been flagged off in Delta State as a way of incentivising more people to go into animal husbandry, and bridging the protein supply deficit. Austin Chikezie, the state’s commissioner of Agriculture and Natural Resources, described the programme as designed to “address the major challenges facing pig far mers in the state, including difficulty in acquiring highly g enetically improve d breeds of pigs, high cost

of good and quality feeds, lack of appropriate production skills and inadequate finance.” These challenges have been noted to reduce productivity and profitability of farms resulting to farm failures and joblosses Studies have shown that there is a huge gap in the animal protein intake of Nigerians, which has also been affirmed by reports of the Food and Agricultural Organisation ( FA O ) o f t h e U n i t e d Nations. The observed gap is as a result of the low level of livestock production in the country, and programs such as this are

expected to bridge these gaps. The program is to yield a production leap of over 120 metric tons of pork per annum compared to previous years. This program seeks to empower 30 youths who will be selected and attached to the participating farms for training and mentorship in the business for a period of 6 months. On successful completion the youths will be considered f o r c re d i t u n d e r t h e program, and this will be a continuous process as the vision is to create a population of young, well trained pig farmers that

will drive the industry to the next level. Asides the pig production project, there are others also geared towards increasing animal production including a broiler out grower scheme, which aims to promote sustainable poultry production under a public private partnership arrangement. The PPP arrangement will serve as a mechanism for integrating small scale poultry farmers into the mainstream poultry value chain by facilitating their access to productivity enhancing inputs and linking them to ready markets.

The benefits of small ruminants (Goat and Sheep) production OLUWAFEMI ABIOYE Co-founder/CEO, Agricmedia Twitter: @agricmedia Email: oluwafemia@ agricmedia.com

mall ruminants include Goats (Capra hircus) and Sheep (Ovis aries).They form an integral and important component of the pattern of livestock farming in Nigeria. The importance of small ruminants is primarily associated with their small size, which is significant and to the advantage of mankind for three important reasons: i. Economic: the advantages include low initial investment and correspondingly low risk of loss from individual deaths. ii. Managerial: goats and sheep can be reared by unpaid family labour, and allowing deployment of limited resources for the supply of meat and milk in quantities suitable for immediate family consumption iii.Biological: the biological factors include possible preference over large ruminants, food and reproductive efficiency, and in turn, economic use of the available land for maximum product output in terms of meat, milk, fibre and skins from both species. However, the fact remains that despite the wide importance and apparent advantages, both goats and sheep have not been accorded adequate attention, compared to cattle production as the dominant livestock animal in Nigeria. Inadequate emphasis and development are reflected in both species, and especially goats, not making an impact on food production despite wide recognition of their value during the last decade. It is therefore pertinent to consider the opportunities for further developing both species in the context of their potential, current and future economic importance. Common Breeds Goats breeds include: - West African Dwarf (WAD) - Sudanese Desert/Nubian - Maradi (Red Sokoto) - Black Bengal and Barbari While sheep breeds are: - WAD sheep - Y’ankassa - Ouda/Uda - Balami ManagementofSmallRuminants Young males may be used for breeding when they are 7 months old. Generally, ratio 1:10 is considered adequate for male: female population. InaPenmanagementsystem, do not put 2 or more males in one pen as this will leads to fighting and less attention to mating the females for reproduction. Housing: This is most important and also an expensive item in commercial Sheep and Goat ranching. This is to prevent animals from climate hazards like excessive temperatures, humidity, which could lead to

loss of animals. The housing can be either lean-to type of gable roof. The floor should be concrete and sloppy. Raise woody boards from the floor where the animals can sleep. This will keep your animals clean from getting contact with their wastes in order to prevent diseases and infections. You must consider the following before starting your small ruminant farming 1. Sales/Marketing 2. Availability of preferred breeding stock 3. Animals with multiple birth records 4. Skills and trainings in ruminant animals Feeding: Pasture establishment can be added to support as supplementary feeding in addition to prepared feeds for quicker growth and returns. Animal feeds should contains ingredients like: Carbohydrates, Vitamins, Minerals, Proteins, Fat and oils, Water etc. Record Keeping: For a successful agribusiness in livestock farming, you are required to keep the following records: - Income and expenditure records - Animal inventory - Production records - Sales records - Mortality records You should note that well fed animals should be ready for sale between six to nine months. Economic Benefits of Small Ruminants The animals are averagely priced in Nigeria even as they largely sustain small holder farmers and women. Goats and Sheep provide household meat and restaurants, milk for family use and consumers, and skin for the local leather industry. Milk Production: Milk from Sheep and Goats have been accepted in most developed countries as an alternative to cow milk. Goat milk for instance has been reported to contain more p-casein and less a-casein than cow milk. The milk is easily digestible, because it contains a higher proportion of short and medium chain fatty acids with smaller globules than cow milk, which makes it promising in relieving stress and constipation. Meat Production: Goats have been reported to contribute 16.0% and Sheep 5.0% of total domestically produced meat in Nigeria, which has been estimated at 813,000 tons per annum. Sheep and goat skins have been estimated at 7,500 tons and 20,400 tons annually respectively. Leather Production: Goats and Sheep are vital to our local leather production. Other economic importance of the small ruminants includes wool production, organic manure, religious purposes, and plays a vital role in our cultural systems such as family gifts during wedding ceremonies.

BUSINESS DAY

Friday 29 June 2018

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BUSINESS DAY

Meet Akin Omotosho, the self-taught filmmaker, business mogul Stories by OBINNA EMELIKE

n 1995, an ambitious student made a decision at a drama school to become a filmmaker. Without a mentor, he started reading everything he could find about films and watching as many films as he could. With the little knowledge he gained from the literature he read and films he watched, he set out to shoot his first amateur films using his classmates. Today, the proudly self-taught filmmaker has gone ahead to become a movie director and producer with many awards to his credit. His name truly rings bell in African movie industry, especially with his crowd funding business model for his films. Welcome to the world of Akin Omotosho, a Nigerian movie producer and director, who is based in South Africa. The self-taught filmmaker, who left Nigeria to South Africa in 1992 at 17 years when his father got a job at the University of the Western Cape, is good storyteller, producer and director of movies across several themes, cultures and times on the African continent. His creative ingenuity is amazing, especially his ability to adapt movies to African realities as seen in ‘Tell Me Sweet Something’, a movie inspired by Love Jones,

Akin Omotoso (centre) at the shooting of Vaya, his latest movie.

which also won him the Best Director Award in the Africa Magic Viewer’s Choice Awards 2016. Recalling his encounter with the film industry, the director who owes his success today to his high school classmates who volunteered to be his guinea-pig, says, “After

graduation I got a cast role in a TV series and I used the money from that television series to fund my first professional short film called ‘The kiss of milk’. That short film became my calling card when I moved to Johannesburg. That short film got me an opportunity to make

two short films: The Night Walker and The Caretaker”. With the three short films under his belt, Omotosho and a group of friends co-funded ‘God is African’, his first feature film shot in 2001. “Since then, I have directed a lot of episodic television programmes, two more shorts, two documentaries, produced six feature films and directed three more feature films”, he says. For Omotosho, filmmaking is a marathon when you consider what a director goes through in bringing the vision to life. “If you can imagine what goes into the preparation for a marathon (the stamina, the patience, the exhaustion) then you can imagine what the filmmaking team has to do in order to take something that started in someone’s creative mind, to be written on paper, to be funded (which takes years), to be cast, shot, edited, marketed and presented. You have to be ready to commit five years or more of your life to a project. That is an extra mile”, he explains. Comparing the Nigerian and South African movie industries, the filmmaker who juggles and tells stories across the two countries, says, “I think both film industries are exciting and both have a lot to learn to from each other. It is great to see more collaboration between the two countries”. He also recommends his crowd funding model to budding film-

makers across Africa saying that every film has a cost and the challenge is to be able to make it and make your investors happy. “Tell Me Sweet Something” was funded by a team of crowd funders; The National Film and Video Foundation, The Gauteng Film Commission, Mvest Media, Ladies And Gentlemen, Pana TV and the South African Department of Trade and Industry”. Omotosho, who looks out for honesty when casting actors for roles, recognises that piracy as a big challenge worldwide, and supports all initiatives to end piracy. However, his success so far did not come without challenges. For him, there were moments of doubt, but his approach is usually not let the doubt cripple the creative process. “Every film has its challenges. In our case, there were two moments were we were not sure if we were going to make the film. Two major funders dropped within months of each other and it really seemed like the film was not going to be made. Fortunately, this is a team effort and along with the team we were able to recalibrate our process and we held a crowd funding evening to raise the additional funds”. Omotosho is truly blessed to still be making films. When he thinks back to that young man on campus dreaming of telling stories, he thanks him.

that it will soon be ready. From then till now, much water has passed under the bridge but the

most important thing is that my label and myself have finally delivered on that promise. We delivered the Osinachi album. I am extremely grateful to Nigerians and my fans all over the world who have been extremely patient with me. I am certain that the album was worth the wait.” He also spoke on whether he had a favourite in the album. “I know it sounds like a cliche but all the song on that album have different stories and feels that make it difficult for me to choose the best one. Is it the one that tells my Abakaliki2Lagos story with Olamide or the new song with Davido or is it that monster sound with Tiwa Savage. The truth is that when you settle down to listen to the album, you will find it hard to choose a favourite because we did a good work on each of them”, he concluded. Humblesmith’s new album can be streamed from all music platforms both local and international.

Humblesmith grows fans with latest album

n 2016, the Nigerian music industry was agog with the monster hit song, Osinachi from Humblesmith. Weeks and months went by with fans demanding for a body of work that epitomise the artiste. The answer to that request is an album by the artiste titled OSINACHI. The album was released on Friday, June 22, 2018 and available in music platforms nationwide. Humblesmith, who hails from Abakaliki, Ebonyi State, has since become a force in the entertainment and music industry. He goes by the monica, the Golden Prince of Africa, probably a reflection of the colour of his skin. His new album titled, OSINACHI is a 22-track album with star studded feature appearances from some of Africa’s music greats such as Tiwa Savage, Davido, Rudeboy, Patoranking Phyno, Umar Shareef, Nura m Inuwa, Harrysong, Olamide and Flavour.

He was discovered and promoted by Bob Ovie Kelly led Ntyze Entertainment. He came to limelight after his hit track, Osinachi featuring Phyno and later Davido. The album carries some of his already popular songs like; Osinachi Reloaded, Attracta featuring Tiwa Savage, Jukwese featuring Flavour Nabania, Abakaliki 2 Lasgidi featuring Olamide and more. The talented musician is set to make a statement with this album. In 2017, he was nominated as Next Rated Artiste at the Headies Award and he has since grown to carve a niche for himself in the industry. One of the top artistes on the album, Tiwa Savage recently gave kudos to the body of work on Instagram. While also reacting to finally releasing the album, Humblesmith was full of gratitude to Nigerians for their patience with him. “Since my single, Osinachi

became a national anthem many people had been asking me for an album. I kept promising them

BUSINESS DAY

C002D5556

Friday 29 June 2018

Business Etiquette

Movie Review - JURASSIC WORLD – FALLEN KINGDOM

f you being following Jurassic world, then you might enjoy this new episode from the producers, bringing the story back to life again, after last episode in 2014. Typical kinds of storyline like always, of the two main actors trying to save the dinosaurs from extinction. This time around they invented a whole new twist to it, telling us that some kind of volcanic eruption would destroy what’s left of the Jurassic world and kill all the animals left, leading to extinction. Although the movie was nice and filled with excitement and action, there was just something missing here from the previous ones, the suspense and screaming aspects were lost, you could actually watch all through and not be scared unlike the past editions, where you were screaming all through. This edition of the Jurassic world was written by Colin Trevorrow and Derek Connolly and directed by J.A. Bayona. It was an amazing story, nice graphic designs, production crew, production, animation, costumes, decorations and sets. It was absolutely adorable and for some parts of it, you were almost convinced that it was real. The movement of the animals from jungle to earth also looked real and the fact that they could usher us into expecting another edition of the Jurassic World Series was brilliant. My thoughts how could you bear to save this wild animals and let them lose into earth considering how dangerous they could be, all because your heart won’t let you. Well fans brace up for yet another edition of the Jurassic world movie coming to your cinemas soon. Just like any Jurassic world movie, it always starts slowly then ushers itself into the suspense and action side of the screaming and racing back and forth. In the previous edition we thought it was over with Jurassic world, but we were wrong as they always had a way of adding another story in at the right time. This time around “Claire” as she as called the in movie also known as “Bryce Dallas Howard” played a lead role, this time she was trying to raise

with Janet Adetu

Mix & Mingle Dilemma

Cast: Chris Pratt, Bryce Dallas Howard, Rafe Spall, Justice smith, Daniella Pineda, James Cormwell Genre: Action, Adventure, Drama, Science-Fiction & Fantasy Director: J.A. Byona Ratings: PG 13 (for intense sequences of science-friction violence, and peril) Written by: Colin Trevorrow, Derek Connolly Runtime: 129 mins Studio: Universal Pictures funds and fight for a bill that will protect the rights of this unique animals and protect them from going extinct. Then she gets a call from an old associate who wants to donate to the foundation to assist them raise funds to go get the animals out, with or without the aid or knowledge of the government, little did she know that she was only going to be used for a negative mission. She had to convince “Owen” also known as “Chris Pratt” to join her on this scary and dangerous mission, after much cajole he agreed to follow her and they went back to Jurassic world after so many years. The movie went on the next dimension when they arrived at the Jurassic world, in the process of trying to save the animals, only to find out that the guy who they both thought was a good guy, was only trying to use them the get the animals out and sell them to rich men across the globe for funds to run away with and start a new life. By the time Claire and Owen released what was going on, most of the animals have being captured and taken to the city, and many others killed by the terrible volca-

nic eruption that occurred in the Jurassic world. Claire and Owen found a way out, got to the city and wrestled with the bad guy to see how they could save the animals from being sold off to faraway lands. The movie ended with so much action and they were lucky to save the animals. As usual we should be expecting another twist to the next episode of the Jurassic world. To my verdict, I would score this movie 7/10, they were a few things nice about this movie, but it wasn’t just as scary or as exciting as the previous ones, where the action starts from the start to finish. They had some scenes which were also unnecessarily prolonged, to while away time. Generally I would say the movie was okay and I would be recommending this movie to all the adventure and animal movie lovers. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline. com and stand a chance to win a free movie ticket Linda Ochugbua @lindaochugbua

t JSK Etiquette Consortium we started a new initiative the Unique U Network all to boost the confidence of women. The platform is to encourage women, to mix and mingle more in a bid to share and gain knowledge, promote individual professions, products, services, tap into the experience of others and ultimately to grow personally and professionally. The network is to provide that platform for easy discussions, building relationships and moving businesses to the next level. There are many occasions when you are invited to events, many reasons affect the decision to attend, a lot depends on your values, objectives and willingness to do things differently. It is probably easier when you arrive at the event and you find yourself among those you know. Most times this may not be the immediate case, you may step into a gathering and you do not recognize anyone you know, this can make you switch off impromptu. I find that for many it takes a little while to gain your momentum and feel comfortable with the environment before you eventually open up. This is simply human nature, others find it easier some just cannot cope at all. The truth is “why are you there?” Is it a social invite, a business gathering or a one off event, a formal occasion or a function you had no choice but to be in attendance? What is your goal for the day? Could it be any of the following? • To meet new people • To hang out with old friends • To let your hair down. • To de stress after a long day • To listen to good music • To socialize as a hobby. •To gain new insight and knowledge • To know what is trending. • To discover great opportunities • To move your business forward. • To get new acquaintances • To build your relationship network • To spread the word • To gain business opportunities • To market your business, product or service. • For promotion

• To move to your next level Whatever your goal is I find the art of mixing and mingling still has not been mastered. I also discovered that when it comes to networking there are numerous dilemmas that should be avoided. They may appear intrinsic or go unnoticed but have the potential to make or sabotage a possible relationship, read on. FOOD Easiest advice I can give here is to eat something small before you go to a mix and mingle event. You do not want to spend the whole evening eating your way through because you are hungry. You will not find a full meal on a plate at a networking event, except for nibbles and bites. The essence is not about the food, it is about you seizing

the opportunity to meet people who can grow you, your career or your business. DRINKS. Just like food, we love free things, but caution must be practiced so as not to over do it, especially where there is alcohol. Eyes are all over you even when you cannot see them. Excess drinking leads you to excess talking, and loose lips, the walls do have ears so watch it too. CONVERSATION What are you saying? is it relevant? In conversing it is not time to name drop or tell us all the important people you know, you met or you are related to. It is also not the time to make it a Me, Myself, and I affair, no bragging, no boasting, no bullying. Create a chemistry with the person or people you are among, find what interests you all or strike a chord. Pay each other compliments to build momentum, talk

about something fun, flexible, fashionable or flowing. The outcome of the day depends on the conversations you create. Begin to throw in business talk when you are comfortable with those you are with. It is not always about business, be relaxed too and just build acquaintances, friends, business relationships as you deem fit. Go with the flow, be expectant but don’t overdo it. PROXIMITY Avoid getting too familiar or too close to people while standing you will know this when there is discomfort in your stance. All forms of intimate, confidential gestures are prohibited. Avoid offending others with the wrong remarks or negative body language, be pleasant to others, courteous, kind

and polite and considerate. Try not to appear flirty by being overzealous. It is important to act professional where necessary. Keep a reasonable distance when you are standing talking, be approachable, authentic, affirmative, and attentive. APPREARANCE What type of event is it? What is being celebrated? Who is likely to be there? Is it social, formal, businesslike? What should you wear? Do not be nonchalant about what to wear to networking events. Keep it neat, dress to fit in and not to belong. It is not a fashion show so do not overdo it. Be professional, follow your own style, be comfortable. Follow the dresscode as much as possible. Have fun while you are there and be your true self. Good luck! Janet.adetu@gmail.com

BUSINESS DAY

Friday 29 June 2018

Hotels Top BusinessDay Partner Hotels

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

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

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

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

You can save on hotel accommodation this summer OBINNA EMELIKE

nce again, summer is knocking at the door, but the increasing cost of travel is likely going to holdback many who did not plan ahead or those with lean pocket from enjoying memorable holiday this year. Going by the economic realities across the globe, it is imperative to prioritising one’s travel plans according to budget. Of course, hotel accommodation cuts deep in travel budget. For guests who are mindful of saving on their accommodation this summer, it is no longer five-star hotels, world-class restaurants and luxury spa, except if you have the means. You can travel on purpose and have a comfortable stay without breaking the bank, even with the weak naira. Globally, hotel rates are notoriously blurry. The rack rates quoted on hotel websites are not necessarily the lowest rates available, so it is always worth contacting a hotel directly to ask what their best price is, and then asking whether that really is their best offer. In other words, you should

bargain. In doing so, you will save some money at least for chocolate or souvenir. But the ultimate way to save money on hotel accommodation is to book far ahead of your travel. Then, the hotel may not have many guests engaging its booking machines and demand for rooms for that period is usually less, hence the cheaper rate. You are sure of good rates when you are booking months ahead to your trip. Planning one’s trip during the low seasons also saves money. Most hotels hardly sustain good occupancy during low seasons which differ from country to country. At this period, guests can get the best price for the room. So, you can plan you trip during low season to get good discounts. By becoming a member of a hotel reward club, you can save lots of money on accommodation. For instance, by becoming a member of Starwood Preferred Guest (SPG), Hilton Honours among others, one is constantly reminded of the hotel’s deals and best prices at all times. At every stay in hotels you are a member of their reward system, you gain points that translate into cheaper accommodation or even

discounted flight tickets. But if you are not a member of a hotel reward system, always look out for special promotions and take advantage of them. Most hotels sell the rooms half the price during promotions. While room charges represent substantial percentage of hotel expenses during travel, there are other charges. Cutting down on your expenses at the restaurants, spa, business centre, and especially bars, helps in keeping you on budget while on trips. In the face of the downturn, especially if you do not have the means, there is no need for expensive champagnes, staying longer in luxury spa, ordering room services, making international calls with the hotel phone, or watching x-rated movies, which incur additional bills. If the restaurant is very expensive, ask the locals working in the hotel where they eat when not at work. You will be surprise to explore a good place with good price, and same for bars. It is normal for hotels to fill the room bar and mini refrigerator with drinks, leaving the price list on the table. Though the prices are very expensive, you should

either avoid the temptation of taking drinks from the fridge if you do not budget for it, or drinking and replacing with cheap ones you bought from nearby shopping mall. But it is risky as most hotels do not allow guests to bring food and drinks to the hotel, apart from the ones they serve. There could be food poisoning, and they would claim it was from the food or drinks you brought from outside. If you are traveling outside the country, choosing apartments over hotels will save you money because apartments, which usually come with kitchenette, are cheaper abroad and offer you opportunity to buy food condiments and cook the way you want it; if you can cook. If you are loyal to a brand, sometimes you have to try something new to enable you review services and also take better decisions. It is not always a five-star fiesta; you can go for middle level offerings in your cherished hotel brand chain, after all, nobody knows where you sleep on your trip except you tell them. If you try some of these tips, you will definitely make the most of your stay, and most importantly save money.

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

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

Best Western Hotel Hotels 12, Allen Avenue C/O Funmi (Front Office Manager)

Protea Hotel (GRA Ikeja) GRA Ikeja

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

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

BUSINESS DAY

Tuesday 26 June 2018

FEATURE Reaching disadvantaged Nigerians through METKA Off grid technology

Rural electrification has remained a hard nut to crack and Nigerians living in these environments have been deprived of the benefits that electricity offers. To correct this anomaly through off-grid technology a contractual agreement has been signed with METKA Power West Africa. Olusola Bello examines government’s aims and objectives.

he Rural Electrification Agency (REA) is dedicated to increasing electricity access to rural and underserved communities in Nigeria, and it supports off-grid development mainly through the deployment of Solar Home Systems and Mini-grids. As part of the ‘Energising Education’ programme of the Federal Ministry of Power, Works and Housing, the REA is seeking to develop off-grid Independent Power Plant (“IPP”) projects for the generation and provision of adequate power supply to thirty seven (37) federal universities and seven (7) university teaching hospitals across the country. In April 2018, METKA Power West Africa, a subsidiary of MYTILINEOS S.A., leading international EPC contractor and industrial manufacturing group, signed an agreement with the Federal Government for the first phase of the Energizing Education programme, which is to help nine (9) federal universities and teaching hospitals get off the national grid and generate their power independently either through gas or solar sources. Under the agreement, METKA will provide full EPC services for power generation plants, street lighting and training centres, as well as operation and maintenance services, for four (4) universities. All four universities will be powered by hybrid power plants utilising renewable energy sources integrated with energy storage and diesel generation as backup. While commenting on the partnership agreement, Damilola Ogunbiyi, managing director of REA noted, “The benefits of the Energizing Education Programme are immeasurable, as improving the quality of education and ensuring safe and conducive learning environments, through access to reliable power, training centres and streetlights, would result in the churning out of excellent graduates, thus the multiplier effect on all facets of society. We are looking forward to this objective being realized through our strategic partnership with METKA Power West Africa.” In his response, Vangelis Kamaris, chief executive officer of METKA Power West Africa stated: “We are very pleased to be able to support REA in the Energiz-

ing Education initiative, and we are committed to supporting the energy needs of Nigeria and its people. In total, 7.5MW of off-grid hybrid power will be installed, incorporating the EXERON technology – the most advanced hybrid off-grid system.” Hybrid energy systems support power grids that combine one or more sources of power generation - solar, wind, diesel generator and grid - with battery storage to deliver a consistent level of electricity and/or store unused energy in a battery or future use. The rapidly decreasing costs of renewable and battery storage have made hybrid power systems more affordable than diesel-based generation in most places around the world. Recently the company formally launched EXERON in Nigeria. During the launching, Vangelis Kamaris noted that with the scalable capacity from 2kW to 65MW, EXERON is designed to derive optimum efficiency from all energy options. The EXERON technology can offer power independence for areas with limited access to the grid or bad grid connection, while providing significant cost savings. It is an efficient solution suitable

for a wide range of applications, including residential, industrial, oil and gas, telecoms, defense and security.” “The award-winning technology features stringent modular design, easy-to-maintain hot plug technology, advanced battery management as well as the increased availability, thanks to excellent system redundancy.” Kamaris assured that the EXE-

Hybrid energy systems support power grids that combine one or more sources of power generation - solar, wind, diesel generator and grid with battery storage to deliver a consistent level of electricity and/or store unused energy in a battery or future use

RON range of off-grid power systems, developed and manufactured by IPS (International Power Supply) fulfils all the necessary requirements for effective energy management, communications and modularity, creating an optimal solution for off-grid locations. EXERON is designed to generate, store and provide power for remote and rural areas. The system can be installed indoors or outdoors. It is also perfectly suited to locations with limited or bad grid power. It can secure continuous uninterruptible power and operates also as an UPS system. The power system achieves significant electricity bill reduction; a backup power capacity for the unusual case of power outage; the best protection for the connected loads is guaranteed since the EXERON output is galvanically isolated and supplies pure sine wave voltage. The aim of federal government’s Off Grid Electrification Strategy is to provide access to clean and sustainable electricity to millions of Nigerians. The objectives are as follows: To develop a data driven off grid model for Nigeria that will

become an exemplar for Sub Saharan Africa; utilise the funding from the Nigerian Electrification Project (NEP) as a catalyst to scale up rapid implementation of offgrid solutions across Nigeria and to increase gender Inclusion in the Nigerian power sector. It is also intended to be used to promote the use of a decentralised, multi-demographic approach to power infrastructure delivery; to develop 10,000 mini grids by 2023 which will provide power to 14% of the population; increase economic growth in critical sectors such as Agriculture. Another important and strategic objective of the government in respect of the off grid scheme provide reliable power supply for 250,000 Small and medium enterprises (SMEs); to provide uninterrupted power supply in Federal Universities and University Teaching Hospitals and deploy five million solar standalone systems for residential and SMEs by 2023; it is also intended to supports the FGN’s climate change obligations under the Paris Agreement. Commenting recently on the off grid scheme of the federal government, Anita Otubu, head of Special Projects, Rural Electrification Agency (REA) noted: “Our sole mission at the REA is to provide access to reliable electric power supply for rural dwellers, and the launch of EXERON in Nigeria is a welcome development as it would contribute significantly to the realization of our objectives.” Off-grid applications represent a quickly growing segment of the global power solutions market, and Nigeria is no exception. To this end, the federal government instituted the Rural Electrification Fund (REF) to enable more private sector participation in power projects such as grid extension, interconnected mini-grid, isolated mini-grid, isolated micro/nano grids and stand-alone systems. A minimum of $10,000 (N3.5m) and maximum of $300,000 (N106m), or 75 per cent of the total project cost, whichever was less, could be given as grant. The world Bank investment in Nigeria’s off grid electricity market is one of the banks largest ever $350 million leveraging on expected $1 billion investment. Under this arrangement there is $150 million for mini off grid, a $300 million opportunity for private investors.

Friday 29 June 2018

C002D5556

BUSINESS DAY

BUSINESS SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

How Nigerian youth entrepreneurs may overrun the global scene - ICNT …Govt must emulate the Austria model on entrepreneurship Ignatius Chukwu

igerian youth entrepreneurs could overrun the world with innovations and the power of enterprise if encouraged by the various state governments and the federal government. They could do so by adopting the Austria model, so declared a Vienna (Austria)-based Niger i a n f e ma l e bu s i n e s s c o a c h and resource person, Chinwe Ukuku. Ukuku, CE O and founder of Incubation Centre for New Technologies Nigeria Limited (ICNT), disclosed to BusinessDay in Port Harcourt, Rivers State, that because Vienna seems to be the centre of the world due to the presence of UN agencies, the home government seems to have first hand access to global best practices, technology and innovations. She said Austria has combined innovation, technology and entrepreneurship to drive a citizen-focused economy that leaves no one out of the economic growth module. Practically speaking, the CEO says in Austr ia, the government discovers you early, processes you and helps those going into entrepreneurship f ro m s t a r t t o s u c c e s s. T h e y w a n t t o g r o w t h e n a t i o n ’s gross domestic product (GDP) by helping to grow each entrepreneur on a steady basis. She said she began to wish t h i s f o r Ni g e r i a a n d i n f a c t set up the incubation cent re t o h e l p Nig e r i a n you t h s start and grow like Austrian entrepreneurs and take over the global scene. She said her firm, ICNT, has the network world wide to connect Niger ian entrepreneurs and encourage them to produce with global standards and satisfy what she called a huge market out there hungr y for Nigerian products. She said the Diaspora market alone is huge enough to absorb whatever Nigerian youths can throw into it. She also wants to help reduce the influx of Nigerians into Europe and America by showing them opportunities at home. U ku ku w e n t o n : “ We a r e into developmental projects, into renewable energy, a bit into agric. My motivation in ski l l a c q u i si t i o n a n d e nt re -

CEO of ICNT, Chinwe Ukuku, flanked by resource persons in Port Harcourt training

preneurship was because of m y c o n c e r n f o r e m p o w e rment. In the past eight years, I have been coming to Nigeria and each time I come, everybody who comes around you w ou l d b e c r y i ng ‘n o j o b s’. I began to ask ; how do I do something, how may I help?” In Austria, she said, they do not attach much concern to certificates but ability to do things. You could easily study

nursing as a vocation without many certificates but you could be a damn good nurse. You could also continue with academic aspect of it later. According to Ukulu; “Austria and Nigeria have different peculiarities, but Austria has advanced over the years. They may have also struggled l i k e Ni g e r i a , b u t t h e y h av e this attitude that should be emulated by Nigeria. They

CEO of ICNT, Chinwe Ukuku with a trainee

encourage people to work in their natural talents and Godgiven destinies. If you are good in anything, they push you i n t hat d i re c t i o n . F ro m a v e r y y o u n g a g e, y o u hav e a mentality of ; oh, I can be good in the mechanical, electr ical, academics, etc. Even i f you a re n o t st ro ng i n t h e academics, they will discover your other force and push you there. That is why unemployment is very low there. I also benefited from this support. If you are an entrepreneur, the system supports you.” She gave examples; “For instance, if you are identified as an entrepreneur, the government will set you up from the beginning, as long as it agrees w ith what they are doing at that moment. They give you training so that you would be prepared and they would work through with you all through t h i s j ou r n e y . Th e y g i ve you t a x re l i e f, f a c i l i t i e s, e t c . I n Nigeria nobody seems to care; you are a semi-government of your own. I know we are very resilient, we work hard, but I know it will get better. The government will continue to improve. We will get there. We are encouraging ourselves; we keep pushing, no matter what. We know the government is trying but we know they can do better for entrepreneurs.’ On the exact way for ward, she said; “I want the government first realize that entrepreneurship is a long journey, not a one-off thing. First, let the government help entrepreneurs to jump the

many huddles on the way. My e x p e c t at i o n i s t o c re at e an enabling environment to enable businesses to keep jumping the huddles. Moving on is what is called economic growth. Businesses contribute to a nation’s gross domestic product (GDP). When I talk about support such as two y e a r s t a x re l i e f, m o b i l i z i n g relevant ag encies to b e fair to the new business, create a c c e s s t o l o a n s, m a k e s u re that payback time has a good window. High interest is killing businesses in Nigeria. The nation should not go above single digit in interests.” She said though there are s ome laggards, but that the y o u t h s a re v e r y h a rd w o rking. “Every year, I go around the world, I find that Nigerian youths are creative and hardworking. Some however think that money falls from the tree. What I exp e ct from them is that hunger to be better than y e s t e rd ay . T h i s p u s h e s y o u t o b e b e t t e r, a n d n o t w a i t for anybody. Those that are p u s h i n g a r e p u s h i n g . S o, I encourage them to keep this u p, l e v e r a g e c o l l a b o r a t i o n and partnership, and work on netw orks. At the end of the day, Niger ian youths w ould t a k e ov e r t h e g l o b a l s c e n e. T h a t i s w hy I h av e t a k e n i t upon myself to contribute my own quota. Those encouraged should encourage others. The sky will not even be our starting point.’ Ukuku’s ICNT is right now executing a training programme in Port Harcourt for two weeks, dealing on skills that make young ones busy. She wants to connect smart one to firms abroad to export their products. She says NCNT is to be a platform to display what she has learnt in the city of ideas. “Schools in Nigeria will graduate you, but those in oversees would process you. It is about skills, not certificates. ICN T has car r ied out train ings in Nigeria in the past two years, now doing so in Por t Ha rc o u r t . Ye a r O n e w a s o n renewable energ y; Year tw o was on Business Innovation, all in Lagos. Now, Year three going on in PH is a mix of all relevant skills a young adults needs to explode in Nigeria at the moment. Ph is chosen b e caus e it is a new hub for entrepreneurs. We have found keenness in the city and we want to close the skills gap.”

BUSINESS DAY

Harvard Business Review

Friday 29 June 2018

ManagementDigest

Research: Women ask for raises as often as men, but are less likely to get them ELLA MIRON-SPEKTOR

enjamin Artz is an Associate Professor at the University of Wisconsin at Oshkosh. Amanda Goodall, Ph.D., is a Senior Lecturer in Management at Cass Business School. Andrew J. Oswald is a Professor of Economics and Behavioral Science at the University of Warwick. It’s a concrete fact that women earn less than men do. The true gender pay gap is not known with certainty, but, when comparing equally qualified people doing the same job, most estimates by labor economists put it at 10% to 20%. The crucial question remains its cause. One common explanation is that women are less likely to negotiate their salaries. We’ve seen this in both bestselling business memoirs like Sheryl Sandberg’s “Lean In” and in previous studies like the research-based “Women Don’t Ask.” Gaining access to a more recent, and more detailed, dataset allowed us to investigate this question anew. What we found contradicts previous research. The bottom line of our study is that women do, in fact, “ask” just as often as men. They just don’t “get.” Even we were surprised by the results. We had expected to find less “asking” by the females. Instead, we found that, holding background factors constant, women ask for a raise just as often as men, but men are more likely to be successful. Women who asked obtained a raise 15% of the time, while men obtained a pay increase 20% of the time. While that may sound like a modest difference, over a lifetime it really adds up.

We also examined the idea that women act less assertively in negotiations for fear of upsetting their relationship with their boss or colleagues (some evidence for this has been found in previous research, notably by Emily Amanatullah and Michael Morris in a 2010 paper). We found no support for this notion in our data. Instead, we found that although employees do sometimes say they don’t ask for a raise out of concern for their relationships in the workplace, this is equally true of men and women. Both 14% of males and 14% of females say they have done this. In our project, we examined 4,600 randomly selected employees across 800 workplaces. The sample was from Australia and the survey was completed in 2014. To our knowledge, Australia is the only nation with really good information on asking behavior; although a small country, it arguably has an interesting advantage for our work in that it is representative of a mixture of cultures (with British, Southeast Asian, American, and European influences). Most of the statistical sources used by management researchers and labor economists do not record asking behavior, and do not record peo-

ple’s motivations for refraining from asking; our dataset included this information. First, the individuals in our data were questioned in detail about their motives, behavior and histories. Unlike in standard data sources, therefore, it was in principle feasible — admittedly in an imperfect way — to inquire into why women and men choose to act in the ways observed. Second, our data were from matched worker-employer surveys in which random samples of male and female employees can be studied. This is a valuable feature, as it made it possible to control for a large number of background factors about workplaces that are not observable to the statistical investigator, and would be impossible to allow for properly in many conventional statistical sources. As might be guessed, lots of different factors seemed to influence the rate of asking. Older workers did so more often. Long-tenured employees did so more often. Full-timers did so more often. Perhaps unsurprisingly, all part-timers, whether male or female, tended both to ask, and to get, less often. We wondered: do elite men ask more than elite women?

But when we split our sample of workers into high-education and low-education, we find no difference in the females compared to males. Even when we split based on those with and without postgraduate degrees, we did not detect significant differences. We did, however, find intriguing differences across age groups. The younger women in the labor market appear statistically indistinguishable — even in terms of getting — from the younger men. Hence it could be that negotiating behavior through the years has begun to change. Future research may be able to decide whether true changes are going on in the modern labor market. Perhaps the world really is beginning to transform. That is the hopeful explanation for why our findings differ from others. Another is that our dataset is based on actual employee behavior, not on laboratory experiments or surveys. Another is that Australian women may be more likely to ask than women from other countries. There have been some prior hints in the literature that women’s asking behavior is not as different from men as commonly described. In a field experiment, Andreas Leibbrandt and John List provide interesting and nuanced results. The authors find no disparity between men and women in the special circumstance that workers are explicitly told that wage negotiation is permitted. When the “rules of wage determination” are left ambiguous, however, Leibbrandt and List conclude that men do tend to negotiate higher pay. When there is no explicit statement that wages are negotiable, females are more likely

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

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than males to signal their willingness to work for a lower wage rate. One earlier study in Great Britain (McGovern et al., 2007) also fails to find evidence to favor a women-don’t-ask view. However, they were unable to control for a number of important factors including hours worked or firm size, variables that we were able to include in our study. When early reports of our work appeared in the press, the research was criticized by Sara Laschever and others, in part for not having been subject to a full peer review. That peer review has now been completed and the article will be released this month in a major journal, “Industrial Relations,” published by Berkeley. Journal referees were persuaded by our key conclusion, but we were asked to do a number of extra checks, and these proved valuable to our case. At referees’ request, after the further analysis, we were able to demonstrate to them that our main finding — that women do ask — holds true in both large and small companies, and holds true for women with and without advanced levels of education. We also demonstrated that the finding is not a result of female workers haing shorter lengths of job tenure or behaving differently than men when they have dependent children. Perhaps women have always asked more than they’ve gotten credit for, and more detailed data just allows us to finally see it. The bottom line is that the patterns we have found are consistent with the idea that women’s requests for advancement are treated differently than men’s. Asking does not mean getting, at least if you are a female.

Friday 29 June 2018

C002D5556

IMPACT INVESTING

BUSINESS DAY

In Association With

Impact Investing and Financial Inclusion: The Imperative for Alliance Innocent Unah & Abisinuola David-Olusa

inancial services have a major role to play in the activities of individuals and the economy as a whole. Achieving financial inclusion is not an end in itself, but a means to an end. It is broadly recognized as an important tool for reducing poverty and achieving inclusive economic growth. Regardless of the income level, individuals and businesses should have access to the appropriate financial services products but with problems around financial literacy, perception of financial products, disability and selfexclusion; this has led to the huge financial exclusion numbers. According to World Bankâ&#x20AC;&#x2122;s 2017 Findex Report, about 1.7 billion adults remain unbanked; the unbanked are consumers who do not have access to basic financial services and products. Most of these people are resident in regions where there is a huge proportion of informal economy as opposed to formal such as Africa, Asia and Latin America. Due to the widespread of account holders in developing economies, most of the unbanked adults are concentrated in the developing countries with about half of this number living in 7 countries namely: Bangladesh, China, India, Indonesia, Mexico, Nigeria and Pakistan with Nigeria having a record high of 100 million adults who are non-account holders. Financial exclusion tends to increase the risk of poverty and social exclusion as studies have shown that people who are unable to access basic financial services, tend to incur high costs when trying to manage their money and often makes them vulnerable to illegal or high lending costs. Exclusion from the formal financial system has been identified to be a major barrier to ensuring the poverty-rid world. Poverty extends beyond the lack of money to a lack of access to the products or channels through which the poor could meet his basic needs so as to improve his wellbeing. As at early 2018, Nigeria had over 87 million people living in extreme poverty with extreme poverty growing at 6 persons per minute. This is the highest in the world as it recently overtook India who had 73 million people in this group. Inclusion has become very necessary topic as we talk about eradicating poverty in the world and financial inclusion seeks to provide solutions to the constraints that exclude people from participating in the financial sector. With the advent of technology, results have shown an improvement in the access to financial services which has notably lowered costs and extended financial products to areas that physical bank may not exist. Consequent upon the foregoing realities, impact investors have intervened in various parts of the world in or-

der to ensure that previously excluded members of the population are availed access to financial services. One of the impact investors currently embarking on financial inclusion investments is Ford Foundation, the foundation dedicated $1 billion out of its endowment of $13 billion over 10 year period to explore mission-related investments among which is financial inclusion across the world. In Cambodia also, PG Impact Investments, a global impact investment firm, has made debt investment to a microfinance institution facilitate the growth of loans to low income clients living in rural Cambodia. Similarly, NN Investment Partners, the asset manager of the Dutch

financial corporation NN Group, has also deployed global equity impact strategy for investing in companies that are helping to unlock the social and economic potential of previously financially excluded people. Over the years, many countries in Sub-Saharan Africa have also taken great steps in extending financial services beyond the formal structure, as Kenya the lead with its mobile money payment M-Pesa to reach about 80 per cent of Kenyan households in 4 years, and ensure that over 30 million users in 10 countries and processed over 6 billion transactions in 2016 alone. Financial inclusion policies that focus majorly on transactions and mobile money platforms rather than the whole

intermediation process such as access to credit may not effectively lead to financial deepening which should aid economic growth. In a bid to increase access to finance in Nigeria, one of the major strategies is to boost the microfinance sector since the sector has a strong potential in promoting entrepreneurship. It should be noted that some impact investors have been committed to increasing the dragnet of financial inclusion in Nigeria by making significant investments in microfinance services, which account for up to 50 per cent of capital deployed in financial services. Microfinance institutions are the major providers of finance to the Micro, Small and Medium Enterprises

(MSMEs). MSMEs being the largest job creators and contributors to economic growth have placed microfinance institutions at the centre of financial inclusion. Institutions such as LAPO Microfinance Bank have focused mainly on the social and economic empowerment of low-income households through the provision of access to responsive financial services on a sustainable basis. With growing population, potential for economic growth combined with other equally favourable factors, Nigeria is laden with opportunities for impact investing that can be deployed as a vehicle to fund, galvanise, and increase measures that improve millions of lives; financial inclusion is definitely beckoning on impact investing in this regard.

BUSINESS DAY

C002D5556

Friday 29 June 2018

SPORTS

Aiteo commends Super Eagles for remarkable World Cup outing ANTHONY NLEBEM, reporting from St. Petersburg/Russia

igeria’s leading energy solution company and the Official Optimum Partner of the Nigerian Football Federation (NFF), has commended the players and officials of the Super Eagles of Nigeria for the efforts put into their performances at the 2018 FIFA World Cup in Russia. Despite bowing out of the tournament at the group stage, Aiteo is very proud of how the Eagles won the hearts of Nigerians, and how in this short period, they have been able to magically pull a nation of over 180 million people together, attesting to our belief

that football remains a major unifying factor in Nigeria. Commenting on the out-

ing, The Executive Vice Chairman of Aiteo Group, Benedict Peters says; “The moments

of anxieties and excitements shared when our nation plays are priceless and unforgetta-

ble. Whilst it is disheartening that we did not proceed to the next round, we are confident that with this same passion and more preparation, victory awaits in coming years. Aiteo is motivated to continue to invest in football, having watched the Super Eagles play their hearts out and fans across the country lay their common defences aside to cheer them. Now is the time to put the World Cup exit behind us and move towards building a stronger team and a stronger nation together.” A i te o no tes t hat t he players put in their utmost with patriotic fervour and were so close to getting the needed draw against twotime world champions, Argentina. They epitomized the essence of the Nigerian Spirit: result-driven commitment to excellence and grit in the face of daunting challenges, all hallmarks

of Aiteo’s commitment to empowering Nigeria’s burgeoning youth population. We have only compliments for the Board of the NFF, led by Amaju Pinnick which provided effective work tools in the critical areas of: securing sponsorships, high level and adequate preparations, provisions for improvement through modern technology, hiring of quality technical staff and payment of the team’s World Cup bonus long before they kicked a ball in Russia. Aiteo Group stands committed to fulfilling its bonuses to the Super Eagles in addition to its long-term investment in Nigerian Football. We also remain unquestionably devoted to working with Nigeria’s Football leadership to provide Nigerians with a team that will compete for the global crown by the next World Cup. Long live the Federal Republic of Nigeria!

Pinnick says preparations for AFCON 2019 to start immediately … apologises to Buhari and Nigerians for Super Eagles World Cup exit

resident of the Nigeria Football Federation, Amaju Pinnick was still somewhat downcast, but assured that heartfelt disappointment over elimination from the FIFA World Cup finals has given way to fresh determination of ensuring qualification for the 2019 Africa Cup of Nations. The Super Eagles lost narrowly 1-2 to perennial bogey team Argentina in Saint Petersburg, even when it appeared they were cruising with five minutes left in the encounter. Pinnick said the depression was more about getting so close to a place in the knockout rounds and yet having to go home early from football’s biggest house party. “It was sad losing out when it appeared easier to progress from the group stage. I believe the players did their utmost

and wanted to get the better of Argentina for the first time at the World Cup. Losing that way, with few minutes to go, really dampened the spirit. “We apologise to His Excellency, President Muhammadu Buhari and all Nigerians from far and near, those who came to Russia to support the team and those who watched on television. Our expectation was for a place in the knockout rounds but that didn’t happen. We will go home and prepare harder for the next finals. In truth, ours is a young and vibrant team capable of learning and getting better, and these attributes hold that the future is bright.” Pinnick insisted that elimination from the World Cup would do nothing to unhinge the vision of the present NFF administration to build a

sustainable football culture for Nigeria. “We have a population that is truly passionate about the game. It is that wonderful equity that we are happy to engage and build on for the good of the Nigeria game. Development of the game at the grassroots will proceed apace and our focus on the Future Eagles (U13/U15) competition will become even more painstaking. “For the moment, we have to start preparations for the 2019 Africa Cup of Nations, which is only 12 months away, as well as intensify the preparation of the Falconets (U20 Women Team) and the Super Falcons (Senior Women Team) for major championships coming up soon.” The U20 girls will participate in the 9th FIFA U20 Women’s World Cup taking place in France 7th – 26th August, while eight –time African champions Super Falcons have qualified for the 11th Women Africa Cup of Nations taking place later this year. Pinnick said the Super Eagles deserve commendation despite defeat in the hands of Argentina, their fourth loss to the South American giants at the World Cup in as many confrontations. “Different people would naturally hold different opinion. But I think the technical crew, just like the players, gave their all. They wanted to stay much longer at the FIFA World Cup but it just did not happen.”

L-R: Eden Vindah, Sustainability/ Regulatory Relationships Manager, Nigerian Breweries; Franco Maria Maggi, Marketing Director, Nigerian Breweries; Patrick Olowokere, Corporate Communications and Brand Communications Manager, Nigerian Breweries and Eric Olaleye, Head HR Services, Nigerian Breweries at the Super Eagles Dome, Lagos.

Sports minister Dalung blames Rohr for Eagles World Cup exit

he Minister of Youth and Sports, Barrister Solomon Dalung has blamed Nigeria’s 1-2 loss to Argentina to poor technical competence of the technical crew of the Super Eagles. The minister, who led Federal Government’s delegation to cheer the Super Eagles, said the team failed to convert its chances of qualifying for the round of 16. Dalung said: “The loss was painful to Nigerians who felt it was a game that should have been easily won with everything going for the team until the dying moments of the match. “I wish to apologize for disappointing Nigerians by our early exit from the World Cup, leaving many football

loving fans devastated. “We know the passion and football followership of Nigerians, but it is unfortunate that we couldn’t make it even to the next round. “The players did their best in this game but the technical glitches cost us a second round ticket. How we couldn’t hold the ball for the last five minute is still a shock to us.” Dalung attributed the loss to poor game management on the part of the technical crew and inexperience of the young team. He said that the team would need more experience in future from a more technically sound tactician. “I have interacted with Nigerians here in Russia and it appears the technical crew

could not manage the 1-1 draw with just five minutes left. “It is time to go back to the technical committee and technical department for future assignments. “The Super Eagles technical crew cannot work independent of the Nigeria Football Federation’s technical committee and department,” he said. “We just need to analyze what went wrong, take the positives, learn the vital lessons for future purposes and then move on.” The Minister advised that attention must now be turned to the 2019 Africa Cup of Nations Qualifiers (AFCON) as he charged the NFF to ensure that the Super Eagles book a ticket for the tournament.

Friday 29 June 2018

C002D5556

BUSINESS DAY

TRIBUTE BRF at 55: Greying gracefully, going on with gusto HAKEEM BELLO

n November 2010, in a tribute to Stephen J. Solarz, a former nine-term New York congressman, Douglas Martin wrote that he was a “torrent of activity” supporting it with a statement issued by the late lawmaker’s office that “during his first six months in Congress, he made 12 speeches on the House floor, co-sponsored 370 bills, held 11 news conferences, made 24 trips to his district and attended 99 events there, visited 23 subway stations, sent constituents 513,720 pieces of mail and took an 18-day tour of the Middle East.” In October 2015, Babatunde Raji Fashola, SAN, was honoured amongst seven distinguished personalities with an award named for Stephen J Solarz by the International Crisis Group. From his eight-year tenure as the governor of Lagos State to his two-year-plus as Nigeria’s minister of Power, Works and Housing, our own BRF has, as the global conflict-prevention organisation acknowledged in conferring the honour on him, been a “relentless fighter for the improvement of people’s lives….” Barely a month after the global recognition of BRF’s “commitment to resolving social, economic and security challenges in one of the world’s most challenging urban environments”, President Muhammadu Buhari tapped him to join him in tackling the nation’s multifarious infrastructural challenges. Ever since, the three-in-one ministry has witnessed a “torrent of activity” towards the making life more meaningful for Nigerians of all strata. Has he lived up to the recognition of the ICG and the confidence reposed in him by President Buhari to deliver? His 55th birthday on 28 June affords us the opportunity to not only answer that question but also look at The Essential BRF. For BRF, results rather than excuses should count towards measuring a leader’s gravitas. So, not for him any argument which suggests that , comparing an executive position with an appointive capacity within a complex federation such as Nigeria is like comparing apples with oranges. Not even if you illustrate with the now-common fiasco over the national budget as an example of a barrier to effective delivery of much-expected services to the people. Any unbiased but informed observer would, unhesitantly, proffer that, within those constraints, and with the unwavering support from his principal, the minister has demonstrated unflinching commitment to reducing Nigeria’s

Babatunde Fashola

infrastructural deficit to the barest minimum, one project at a time, across Nigeria’s 36 states. One thing you can’t take away from BRF is his penchant for, to use a favourite word of his, dimensioning any problem, no matter how seemingly gargantuan. He is the master of drilling down. His staff at the ministry will attest to how, from the day of his inauguration, he has been engaging everyone in marathon consultations, sometimes into the night, to be able to put every problem in proper perspective and then ensuring that the job gets done - without any short-cut. A DEVELOPMENT MATRIX For him, nothing should be done superficially. Let’s take work on roads. He starts with the premise that good roads will help reflate and grow the nation’s economy, reduce travel time, cost of transportation of goods and services, and create jobs which will provide the economic means for the worker to live meaningfully. To achieve this, in the short term,

would mean starting with roads which can be quickly completed to facilitate connectivity. This should further be guided by choosing first the roads which connect states together and bear the heaviest traffic such as the Lagos-Ibadan expressway, and working the way across Nigeria gradually. By sticking religiously to, and developing this plan, enunciated with his team in the Ministry with necessary policy

One thing you can’t take away from BRF is his penchant for, to use a favourite word of his, dimensioning any problem, no matter how seemingly gargantuan

and budgetary support from the Cabinet led by the President and National Assembly, albeit, with all the “constituency complications,” Fashola has been delivering on his mandate. On Power, Fashola believes that predictable supply achieved through incremental, stable, and, ultimately, uninterrupted supply of electricity, availability will be a critical and defining component of our economic renaissance, job creation, GDP growth and reduction of income inequalities. This has formed the basis of the Federal Government’s Roadmap to Power with the accompanying policies and plans like the Power Sector Recovery Programme (PSRP) aimed at strengthening the responsibility of the Ministry as a regulator through the National Electricity Regulatory Commission (NERC), so that the GenCos and DisCos can be held to their contracts with citizens; getting the support needed to complete stalled power projects in the generation, transmission and distribution value chains;

and improving the liquidity in the sector. Coming with a practical experience from Lagos, Fashola believes the construction of houses will complement the economic growth drive by direct and indirect jobs in the housing value chain from construction companies, to artisans, labourers, vendors and many more. The Federal Government’s housing project is currently going on in 34 States of the Federation which have provided the required suitable land for the programme, currently at its pilot stage and poised to address the issues of affordability, acceptability and climatic/cultural diversities which have been the bane of the previous housing programmes. What used to be the standard question about how one man can cope with the leadership of three ministries comes less frequently in its monotony now because Fashola has continually demonstrated that tackling challenges is his second nature. Never mind that he has had to sleep less than the averagelyrequired hours and do unusual things - for instance in 2017 during an inspection of projects in the North East, he led the team to drive on the road by the dreaded Sambisa Forest in the thick of the night - whilst greying graciously but achieving results. By the way, Hamza Idris of the Daily Trust, who was on the trip, had asked him what gave him the courage to travel at that time, he answered as only a BRF would: “Well, I don’t think it is courage. I have a job to do and it has to be done well. If you are building and managing roads, you can’t manage them from slides, you can’t manage them remotely. You must at least see how good or bad those roads are. It gives a sense, either of urgency, enthusiasm, or a combination of both, to be able to really deal with it. The Ministry of Defence is aware that we are here, but the security arrangement is just precautionary. We have seen ordinary Nigerians travelling in their buses. I have seen the Taraba Mass Transit Services, Adamawa Express, Bauchi Express and others. So, life is going on and we just have a job to do.” There is no better way to end this birthday tribute to this quintessential man who is extremely loyal to his principal, political party and his principles, than quoting his answer to another question on that North East inspection trip: “I am never satisfied with anything I am involved in; I just keep going. It’s difficult to satisfy me, and if you ask me to assess myself, I would continue to push myself.” • Bello is Special Adviser, Communications to the Hon. Minister.

32 BUSINESS DAY NEWS NEXIM Bank sees investment opportunities for private sector in non-oil sectors’ challenges CHUKA UROKO

hallenges in the nonoil sectors of the Nigerian economy, notably agriculture and solid minerals, are major investment opportunities for private sector operators, Abba Bello, managing director/CEO, Nigerian Export-Import (NEXIM) Bank, has pointed out. The downturn in the international oil market, especially at the pick of economic recession in Nigeria, coupled with the country’s current economic structure and resource endowment, has revealed that the country has the capacity to boost its non-oil export revenues and promote sustainable inclusive growth and development. This, more than anything else, explains the decision of the Federal Government to diversify the economy with emphasis and close attention to these non-oil sectors. But challenges remain. The key challenges to developing these non-oil exports sector, according Bello, who spoke at the sixth convocation lecture of Achievers University, Owo, Ondo State, range from low productivity, particularly in the agricultural sector, to low

value addition towards ensuring that better value is received from exports. Non-oil sector played key roles in the Nigerian economy before and the immediate post- independence period. This time, non-oil exports, which were mainly agricultural and solid minerals, made up 97 percent of the country’s exports. Crops like cocoa, cotton, palm oil, palm kernel, groundnut, and rubber were major export commodities. But between 1970 and 1974, non-oil exports dropped from 43 percent to 7 percent due to rapid increase in the international oil price and Nigeria’s production. However, with the present state of the economy, the country needs to diversify its economy, as it has already undertaken, to achieve the diversification objectives and promote non-oil export growth, some decisive actions need to be taken. Bello recommended that there should be increased capitalization of development finance institutions which is very necessary given that the real sector, particularly agriculture, solid minerals and, indeed, the export sector, require concessional long term funds for investment, which

are rarely available in the commercial banking system. “Human capital needs to be developed through increased funding to support education, particularly science and technology education, as well as promotion of research and development to enhance innovation and boost the competitiveness of our exports sector,” he said. He explained that Science, Technology and Innovation (STI) policy needed to be fully implemented to enhance the level of funding to research and development, currently at 0.22 percent of GDP, according to data by UNESCO, thereby enhancing Nigeria’s intellectual property rights and patent registration. Given the critical role of infrastructure in promoting value added exports, strategies should be evolved to support the establishment of industrial parks and build more/improve existing Export Processing Zones. This appears to be the fastest way to address the huge funding requirement to bridge the infrastructure gap, recently estimated at US$100 billion annually over the next six years by the Nigerian Infrastructure Concession Regulation Commission (ICRC).

NNPC differs with governors on additional N40bn remittance to FAAC … June salary likely to be delayed due to differences HARRISON EDEH, ABUJA

igerian National Petroleum Corporation (NNPC) and the Nigerian governors are currently not on the same page due to additional remittance demand of N40 billion to the Federation Allocation Account Committee (FAAC). The corporation regretted the governors’ additional request of N40 billion, saying it was unfortunate, given the fact that the NNPC was set to exit the cash-call phenomenon. It has however justified its N147 billion June remittance to the FAAC, saying it is in line with the terms of agreement it had with governors on the matter. Ndu Ughamadu, NNPC group general manager, group public affairs, clarified in a statement issued on Thursday that the agreement the NNPC had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC, subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of Premium Motor Spirit (PMS) - cost under recovery and pipeline main-

About 70% of Nigerian importers do not comply with trade rules - Customs

igeria Customs Service (NCS), Tin-Can Island Port Command, said on Wednesdaythatonlyabout30percentofthetotalimportersbringing goods through Nigerian seaports comply with international trade guidelines. By implication, the remaining 70 percent do not comply with rules and regulations guiding international trade in Nigeria, with the intention of short-changing the Federal Government of the revenue that ought to have accrued from import duty collection. Musa Baba Abdullahi, Customs area comptroller of Tin-

Can Customs Command, who disclosed this to members of the Shipping Correspondent Association of Nigeria (SCAN) during a courtesy visit to his office on Wednesday, said it was mostly blue chip and manufacturing companies that comply with the trade rules. Abdullahi, who said compliance to trade rules was very imperative to facilitation of trade by Customs, also noted that Customs created a clearing window known as ‘Fast Track Lane,’ which allows importers with good track record to clear their consignments without delay. “We really need to let traders know that there are rewards for compliance. The rewards

for compliance include faster, cheaper and quicker turnaround. These complaint companies are placed on the Fast Track examination process, where their cargoes are taken to their warehouse for physical examination take place,” Abdullahi said. According to Abdullahi, when traders comply with trade rules, there would not be any issue at the ports, but when we have traders who do not comply, itbecomesimpossibletoenjoythe benefits of trade facilitation. He further disclosed that most Customs systems operate on risk management based, which means that the system supposed to run on their own, but because

people do not comply, it becomes practically impossible to have this systems run on their own. Speaking on Ease of Doing Business at the port, he said it depends on three things that include procedure, infrastructure andlogistics.“Customshastriedto perfect its procedure with the introductionoftheNigeriaCustoms Integration System (NICIS 11) but the state of infrastructure around the port is beyond Customs. “For example, what has Customs got to do with lightening of theportsatnights?Wedo24hours operations at the ports, but when infrastructures that are supposed to be in place at the ports are not there, there is nothing Customs can do to facilitate trade.”

EMMANUEL NDUKUBA, Awka

nambra State government has attracted investment worth $4 billion over the last four years, a top government functionary said. Commissioner for information and public enlightenment, C. Don Adinuba, said when Anambra State director of National Orientation Agency (NOA) paid him a courtesy call on Thursday in Awka, the state capital. Adinuba said this was possible because of the relative peace enjoyed in the state within the period. Adinuba, who had earlier indicated his interest in partnering the NOA, said he had very special relationship between the NOA and the ministry. He said Anambra was the only state craving for a development vision that could lead generations yet unborn, stressing that with the cooperation of NOA, there would be no doubt that the state would succeed. He commended the kind of social harmony in the state, saying that peace was inevitable that the state was going to achieve Governor Obiano’s vision of becoming the number one investment destination in Nigeria.

Dogara: Why we are investigating allegations of misuse of $30bn NDPHC spending

Nigerian insurance industry premium estimated to hit N363bn in 2017

L-R L-R: Oladele Sotubo, executive director, investments, Stanbic IBTC Pension Managers Limited (SIPML); Louis Henshaw, senior manager, benefits and insurance, National Pension Commission (PENCOM); Eric Fejemisin , chief executive, SIPML, and Nike Bajomo, head, business development, SIPML, at the 2018 Stanbic IBTC Pension Managers pre-retirement seminar in Lagos, yesterday,

Anambra attracts investment worth $4bn in 4 years

tenance. The release stated that NNPC was able to surpass the terms of agreement with the governors on the monthly remittance for the month of June by N35 billion, having taken a cue from their postures by taking from the sum meant for settling cash call obligations. It would be noted that the monthly FAAC meeting, scheduled to hold Wednesday, was reschedule as members failed to reach agreement on certain issues, especially on remittances by the NNPC. Hassan Dodo, the director of information in the Ministry of Finance, said the meeting ended inconclusive and had been rescheduled for another date. The director told newsmen that as a result of the inconclusive nature on the remittance that, “We are sorry for the inconvenience this may cause you, but be rest assured you will be re-invited for the briefing on a later date.” “With this development, workers’ salary at both the federal and state levels for the month of June will likely not be paid as earlier planned until the matter responsible for the inconclusive meeting is resolved,” he said.

KEHINDE AKINTOLA, Abuja

AMAKA ANAGOR-EWUZIE

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peaker of the House of Representatives, Yakubu Dogara, on Thursday vowed that the House would not relent until all allegations on misappropriation of N10.08 trillion (about $30bn) by the Niger Delta Power Holding Company (NDPHC) was unravelled. Dogara, who stated this at the opening of a public hearing by an ad hoc committee on the alleged constitutional breaches, impunity and other infractions of the NDPHC and the need to ensure probity and statutory oversight functions, expressed concern that about half of the funds were reportedly sourced through the Excess Crude Account (ECA), which belong to the three tiers of government. “From the information made available to the National Assembly, the NDPHC Limited. has since 2005 invested over $30 billion, over half of which was sourced from the ECA belonging to the three tiers of Government, while the balance consists of funds from other investors. “As a Limited Liability Company, the operations, management and accounting procedures of the NDPHC Limited is subject to the overriding provisions of the Laws of the Federal Republic of Nigeria in general, and the Companies and Allied Matters Act, (CAMA), in particular. “However, the available information is that the Company has failed to comply with very serious and important provisions of the Law, such that the very essence of the company, and by extension the NIPP, is seriously threatened.

… as Tope Smart becomes new chairman of NIA MODESTUS ANAESORONYE

he nation’s insurance industry at the close of business in 2017 targeted an estimated premium income of N363 billion, representing an expected increase of 15 percent over 2016 figure. Eddie Efekoha, immediate past chairman, Nigerian Insurers Association (NIA), said at the 47th annual general meeting of the trade body held in Lagos. Efekoha, who is also the managing director/CEO, Consolidated Hallmark Insurance plc, said the insurance industry during the year under review had to contend with epileptic power supply and dilapidated infrastructure such as roads and other public facilities with high cost of operations. “The Nigerian insurance industry is not insulated from developments in the general economic space and had its fair share of the challenges facing the larger financial market during the year under review,” he said. Efekoha said these coupled with a suffocating tax regime impacted the bottom line of insurance companies, but however stated that in spite of these daunting challenges, the insurance industry continues to perform its role of financial intermediation and business restoration in line with its mandate. The Association has elected Tope Smart, managing director/ CEO, NEM Insurance plc, as its new chairman, while Ganiyu Musa, group managing director/ CEO, Cornerstone Insurance plc, becomes the new deputy chairman.

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33 NEWS

BUSINESS DAY

Edo banks on technology, synergy with private sector to drive agribusiness investment

d o S t a t e g ov e r n o r, Godwin Obaseki, says the state government will drive agribusiness investments in the state with the deployment of new technologies and strong participation of private investors. Obaseki said this in a chat with journalists after a meeting with the director-general of the International Institute of Tropical Agriculture (IITA), Nteranya Sanginga, on the sidelines of the International Workshop Water-Energy-Food Systems in Sub-Sahara, held at the IITA campus in Ibadan, Oyo State. He said, “The most important of the challenges is trying to re-enact and re-establish the culture of agriculture, to take out the drudgery of the past and bring in science and technology. We want to look at agriculture as a business with its value chain. People don’t grow crops for its own sake; it is because it has several uses aside food, such as agro-processing and as industrial goods. “As a governor, I am here to see how I can explore opportunities with the institute, which we are very proud of. In the last 50 years, they have been helping us to understand the crops we grow in the tropics. We are also here to see how we can go into partnerships and work on specific projects.” Noting that the state is paving the way for private investors to contribute in deepening investment in agribusiness, he said, “In Edo State, for instance, we

have shut down all the colleges of agriculture and are restarting them with new curriculum. We are getting the private sector to get involved, even in those schools, to train the required manpower.” According to Obaseki, “For us as politicians and as a government, I campaigned and promised that I was going to enhance the well being of my people and that I was going to create jobs. That is from a political perspective, I made a promise and I have to deliver. There are a number of things I need to do to deliver the result. The first thing is to identify the issues, challenges and problems. But more importantly, you have to get and mobilise resources to make that happen. He restated that Edo State is one of the foremost agricultural states in Nigeria, as it has some of the biggest investments in oil palm and rubber plantations in the country, assuring that he was intent on returning the state to its glorious days as an agribusiness hub. He said, “Don’t forget that before oil became a fad, we were firstly an agrarian country. Edo State was the largest producer of oil palm and therefore we had the oil palm research institute. We were also a major producer of rubber. When I mean producer, I mean global producer of things like rubber, so we had a rubber research institute 60 years ago in Benin. So, we have had a culture of agriculture and agribusiness.”

L-R: Ibrahim Usman, vice president, North West Zone, Manufacturers Association of Nigeria (MAN), representing MAN president; Sam Oweh, co-ordinator, Manufacturers Power Development Company Limited, and Roland Lwiindi, chief technical and commercial officer, North South Power Company Limited, at the special interactive forum on eligible customer regulations organised by Manufacturers Association of Nigeria and North South Power Company Limited in Lagos, yesterday. Pic by Olawale Amoo

Kachikwu, Baru, others tell foreign investors Nigeria committed to mid-wifing gas-driven industrialisation FRANK UZUEGBUNAM, Washington DC

he Nigerian oil and gas industry is creating an enabling environment that will enable investors to contribute their quota towards making Nigeria’s abundant natural gas resources serve as launching pad for the nation’s industrialisation take off. Minister of state for petroleum resources, Emmanuel Ibe Kachikwu, the group managing director, Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, as well as some critical industry stakeholders arrived at this consensus while speaking at the Nigerian Pavilion on the sidelines of the ongoing

27th World Gas Conference (WGC) taking place in Washington DC, US. Kachikwu, who was represented by Folashade Yemi-Esan, the permanent secretary in the Ministry of Petroleum Resources, said it was imperative for Nigeria to market its enormous gas resources at the global level because “we have to get our industries to work.” The minister noted that ideas, experience and lessons learnt from other countries at the conference would spur Nigeria to dismantle all obstacles, which, over the years, have been slowing down the nation’s gas-to-power aspirations and industrialisation. “Without power, we cannot

Global megatrends: How Prepared are we? (part 2) Continued from back page

first century. For millennia, the Chinese saw themselves as the Middle Kingdom – essentially the centre of the universe. That worldview weakened their ability to learn from others and to engage in that collective learning that goes into the making of what the British historian Arnold Toynbee termed “creative civilisations”. In terms of nominal GDP, the United States outstrips China by a considerable order of magnitude, with US$20.252 trillion as against China’s US$13.093. However, if we base the comparisons strictly on purchasing power parity (PPP) terms, we could say the two are already at par. The Chinese themselves are uncomfortable with such comparisons; strictly preferring to pursue their quest for growth through their policy of “peaceful development”. However one looks at it, the rise of China and the countries known as the BRICS (Brazil, Russia, India, China and South Africa), will transform the structure of world politics and economics beyond anything we have known. Today, at nominal GDP, the combined wealth of the BRICS currently stands at US$21.28 billion, which is way ahead of that of the United States. India has one of the world’s most rapid growth rates, averaging 7.5 percent while that of China is slightly lower, at 6.9

percent. These growth trends are considerably ahead of the current United States average of 2.3% and the EU average of 2.4 percent. At current growth trends, the world centre of economic gravity would have all but shifted to Asia and the emerging economies by 2030, by which time the emerging economies will account for 57 percent of world GDP. China and India will both account for 35 percent of world population and 25 percent of world GDP. We face not only a geopolitical shift in economic and political power, but also a shift in power from national governments increasingly to smaller players such as multinational corporations, international non-governmental organisations and rogue players such as armed guerrillas and organised terror groups. The rise of extreme ideological Salafi Islam and the hate-filled frenzy of those who dream of a world Islamic Caliphate will inevitably lead to a violent “clash of civilisations” as prophesied by Harvard political scientist Joseph Nye. Radical extremist zealots will force democracies to resort to “undemocratic measures” to control terrorist groups. The moral-constitutional foundations of the international liberal order will come increasingly under tension. Unfortunately, it is unlikely that the new emerging powers will be particularly committed

to structuring a more stable international equilibrium and may not commit to building robust institutions for global governance. Climate change will, of course, remain one of the great megatrends of our time. For the first time since Homo sapiens began to work on both feet on this planet, we have entered the Anthropocene Age -- the age in which humanity by its own independent action is able to alter the basic character of the biosphere and eco-system of the earth as a planetary body. Worsening climate impact will result in further loss in biodiversity, water shortages, water pollution, deforestation and desertification. In Nigeria we face the challenge of desertification which has been encroaching ferociously into our country while in the south we face the challenge of erosion and massive oil pollution in the creeks of the Niger Delta. Climate change is partly responsible for the Boko Haram insurgency as well for the violence and conflict associated with the militia herdsmen in the Middle Belt region. These challenges call for greater coordinated global action. This may prove particularly difficult in light of the Trump administration’s retreat from multilateralism. At regional levels, governments should also work together on projects for mitigation as well

as adaptation, while agreeing common norms for responsible action with regard to climate change and utilisation of natural resources. Finally, there is the reality of black swans. The concept of the black swan was first popularised by the philosopher and statistician Nassim Nicholas Taleb. Taleb analyses the phenomenon of unexpected random, highly improbable events and their impact on politics, economics and society in general. Concern for such outliers, according to Taleb, is aimed at compelling leaders to re-focus on preparing for the unexpected and to correct “our blindness with respect to randomness, particularly large deviations”. September 11, for example, was a “black swan event”. No one really saw it coming and the relevant agencies never prepared for it. Other improbable high-impact events of that kind could occur in the future: a nuclear accident; a massive attack on Iran by Israel leading to a conflagration in the Middle East; a new strain of manufactured Ebola wiping out millions in central Africa; technology breakdown wreaking havoc on banking systems across the world; and so on. In our integrated global marketplace, the possibility that black swan events will spread through contagion effect is more likely than ever.

have industrialization in our country. We are therefore committed to making the best use of what we have in terms of gas potentials and ensure that gas, indeed, drives the power sector,” he stated. On his part, Baru said NNPC was driving a number of initiatives which included collaborating with the National Assembly to address the fiscals; putting the required infrastructure in place as well as ensuring that new power plants are built. “We are keen on using some of the new projects like the 614km Ajaokuta-Kaduna-Kano Gas Pipeline Project to open up not only the gas corridor but also ensure that power plants that are

built can inject stability into the national grid,” Baru explained. The GMD stated that as part of the new gas development initiatives, investors were expected to come in and establish fertilizer and petrochemical plants. “On our part, we are keen on ensuring the sanctity of all our contracts. This, surely, will ultimately kick-start our industrial development,” he said. Also speaking, chairman Senate Committee on Gas, Bassey Albert Akpan, lauded the GMD for his support towards ensuring Nigeria’s successful outing at the conference, adding that engagements such as this would create the enabling environment for potential investors.

National governments and their leaderships must therefore always be on a high state of alert. Ahead of us, to echo Max Weber, is not the bliss of summer but an icy winter. There is hope for Nigeria and Africa. But we must also be prepared. Global structural changes will generate opportunities as well as negative fall-outs. Our na-

tions, being particularly vulnerable, will suffer more than others when push comes to shove. It calls for a new generation of leadership on our continent – leaders of high intellect, commitment and vision -- that will steer purpose-driven societies through new horizons of freedom and prosperity. Now as ever, eternal vigilance is the price of liberty.

The Chimamanda interview Continued from back page

achieving African women you know, it is not true. You consider the icons you grew up admiring. Pelewura – the first Iyaloja of Lagos, an illiterate market-woman before whom male colonial administrators quacked; Alhaja Abibatu Mogaji; Funmilayo Ransome Kuti – who virtually threw the Alake of Egba-land out of his palace. They were women who dominated their world but did not ask to be released from their gender role. They did not repudiate their feminity. If anything,they embraced it, and used it to their advantage. Further down the conversation, the Nigerian writer reveals she doesn’t think men should open doors for women because it implies women are weak. She’s offended by people speaking of protecting ‘women and children’ in disaster situations – she thinks the protection is derogatory and should

be reserved for the ‘weak’ of whatever sex. Parents of girls should not lead them to pick toys from dolls and other ‘girlie’ items in toy shops, but should tell them they can pick from anywhere, whether it is rugby balls or boxing gloves. Some weeks before the interview, Chimamanda had been in the news for upbraiding Hillary Clinton for listing ‘wife’ first among her attributes in her twitter profile. She felt it de-meaned womanhood, since Bill was not likely to put ‘husband’ first among his attributes in writing his own profile. The conversation between Trevor and Chimamanda flows like a song. Very soon, the time is up. Trevor holds up a copy of ‘Letter to Ijeawele…’ like a trophy, encouraging everyone to get their own. There is barely enough time left for him to deliver his parting Donald Trump joke.

BUSINESS DAY

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12TH ANNUAL BUSINESS LAW CONFERENCE Osinbajo: Nigeria will sign the AfCFTA if… Chuks oluigbo

ice President Yemi Osinbajo on Wednesday said Nigeria would sign the African Continental Free Trade Agreement (AfCFTA) once the government was satisfied that the full scope and consequences of the proposal make sense for the country. Osinbajo said though there have been a lot of concerns about Nigeria’s cautious approach towards signing, the agreement presented real opportunity for Nigeria to expand its reach in trade, in commerce and services

across Africa. He said this at the opening ceremony and dinner of the 12th Annual Business Law Conference of the Nigerian Bar Association Section on Business Law (NBA-SBL) in Abuja, where he was special guest of honour. “The theme of this conference, ‘Bringing Down the Barriers: The Law as a Vehicle for Intra-Africa Trade’, and its focus especially on the African Continental Free Trade Agreement (AfCFTA) is very germane. The AfCFTA and its focus on trade in goods, trade in services and rules and procedures for settlement of disputes presents a real opportunity for Nigeria to expand its reach in trade,

in commerce and services across Africa,” he said. Osinbajo said Nigeria delayed the signing of the AfCFTA in order to hold further consultations with stakeholders to ensure the country benefits optimally from the agreement. “Due to the prevalence of dumping on the continent and the potential for its escalation, one may argue that free trade in Africa may not necessarily be fair. Our vision for intra-Africa trade is for free movement of made-in-Africa goods – goods made by Africans using raw materials, not just free movement of goods,” Osinbajo said. “Our decision to delay

the signing of AfCTA and to extend consultations is to ensure that our participation does not adversely impact on the progress that we have made to date,” he added. Osinbajo said Nigeria was very much a part of the conceptualization of the AfCFTA and emphasised that the country took seriously and would subscribe to the agreement “once we are satisfied that the full scope and consequences of the free trade proposal make sense for us and especially our commercial institutes”. Walter Onnoghen, Chief Justice of Nigeria, who was represented by Justice Kay-

ode Ariwoola of the Court of Appeal, said the theme of the conference was timely, especially in light of the recent resolve by the African states to break the barriers to free movement of goods and services among the member states. He said though Africa is the second largest continent in the world, the continent is quite small when viewed from the perspective of its economy, adding that commercial engagement between African countries would be crucial to enhancing economic growth and raising the standard of living for many on the continent. “I must say that intraAfrica trade today is a pana-

cea for development. It can help the African countries to become more competitive by creating economies of scale and encouraging producers to be more productive in the marketplace. It can establish and strengthen product value chains and facilitate, through spillover effect, the transfer of technology and knowledge and also spur infrastructure development and attract foreign direct investment. “For these reasons, expanding intra-Africa trade is key accelerating economic growth on the continent. It is especially important for the continent’s small, land-locked countries that are faced with serious challenges,” he said.

L-R: Okey Egbuchu, chairman, 2018 conference planning committee; Gbenga Oyebode, former chairman, NBA-SBL, and Kunle Ajagbe, chairman, conference programmes sub-committee.

Pat Utomi, political economist, speaking at the opening session

Panellists at one of the sessions

Seni Adio (SAN), vice chairman, NBA-SBL, in a Q&A session with Olive of Wazobia FM

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BUSINESS DAY

12TH ANNUAL BUSINESS LAW CONFERENCE Osakwe, Akinterinwa, Utomi, others debate AfCFTA …the world will not end if Nigeria doesn’t sign – Sodipo CHUKS OLUIGBO

peakers at the opening session of the ongoing 12th Annual Business Law Conference of the Nigerian Bar Association Section on Business Law (NBA-SBL) yesterday said it was needful for Nigeria to sign the African Continental Free Trade Agreement (AfCFTA) owing to the huge benefits the country and the continent at large stand to derive from a one-Africa market. They also examined the implications for Nigeria in the event that the country does not sign. The session, with the topic ‘Bringing Down the Barriers: The Law as a Vehicle for Intra-Africa Trade’, spoke to the general theme of the conference and set the tone for the discussions in the other key areas such as financing intra-Africa trade and development, movement of goods, services and persons, transport connectivity, ecommerce, competition and consumer protection, ease of doing business and dispute resolution. Chiedu Osakwe, Nigerian chief trade negotiator/ director-general, Nigeria Office for Trade Negotiations, who was the lead speaker, said the AfCFTA establishes a legal order previously not had in intra-African trade relations and that the agreement establishing Continental Free Trade Area goes beyond just trade. “It’s about regional cooperation; it’s about continental cooperation; it’s about the geopolitical standing of the continent. Remember also that the AfCFTA is the number one litmus test of Agenda 2063 which is the flagship programme of the African Union for its evolution in the global economy,” he said. Giving an overview of the extent of consultations across Nigeria, Osakwe said following directive from President Muhammadu Buhari, he and his team went round the country from 15th of March to 14th of June to engage with stakeholders, MDAs, and private sector to explain the agreement to them and ask for their views. According to him, he and his team went to all the six geopolitical zones, had 27 dedicated consultations with particular groups, spent approximately 190 hours talking across the country and he personally spoke to about

900 natural persons. “What did we get? There is significant support that Nigeria goes ahead with this for much of the reasons they gave – our leadership, our geo-political standing, market access, an opportunity for growth, among others,” he said. He added, however, that stakeholders also raised longstanding competitiveness issues in Nigeria, such as power, transport infrastructure, difficulty in the domestic market arising from undue obstruction by security forces, transshipment and branding, how to integrate women and the informal market, etc. The panellists pretty much toed the same line. Stephen Karingi, director, Regional Integration and Trade Division, United Nations Economic Commission for Africa (UNECA), gave a global context for the AfCFTA, saying it was a response to the mega-regional trade arrangements, such as the Trans-Pacific Partnership, the Trans-Atlantic Partnership, and the Regional Comprehensive Economic Partnership that includes major Asian economies. He said at UNECA, they had done some work where they simulated what these mega-regional trading arrangements would mean for the world, and they found out that if those mega-regional trading arrangements came into force and Africa did nothing, Africa would actually be a net loser. “Then we ran another economic simulation whereby we said, let these megaregional arrangements be in force and at the same time let the African continent also have its own mega-regional arrangement in the form of the AfCFTA, and the findings were that Africa would actually gain significantly. To give a conservative figure, we found that when you have all these mega-regional trading arrangements including the AfCFTA, there would be an additional $27.5bn in terms of intra-Africa export,” Karingi said. He said while Brexit would definitely have implications for Africa because both the EU and now the UK are major markets for Africa, the AfCFTA is a good response to what is likely to happen and represents a demonstration of Africa’s ownership of its development agenda. “The African market today comprises 1.2 billion

people. Conservatively, the continental GDP is about $2.5 trillion. Now, by 2050, this market is projected to reach a population of 2.5 billion people and it is estimated that the African economy will actually be growing faster than the global average as we go to 2050. The African businesses today face higher tariffs within the continent than they face with the rest of the world. “So, if you have a growing market and economies that are growing faster and you are facing barriers within this market, then the AfCFTA is actually meant to address these barriers so that they can optimize the one-Africa market. So, in terms of the business case for the AfCFTA, it actually provides opportunities for enterprise and all of us Africans know how enterprising Nigeria is and how enterprising African businesses are,” he said. Pat Utomi, political economist and faculty at Pan Atlantic University, argued that while there was something to say for everybody’s position on the conversation around the AfCFTA, what was even more important was to ask where Nigeria and Africa wanted to be in a given number of years from now. “Trade leads to increased prosperity for all, but there is a short-term interest always to protect the gains that come. And this is how we need to understand the plight of manufacturers in Nigeria because many of the things they are dealing with are compounded by factors somewhat beyond their control. “But the question is, what track would we be travelling as a people if we were to give increased prosperity to this incredible population that is growing out of which we can reap a huge demographic dividend or from which we can create a time bomb that can threaten the whole region in a way that Robert D. Kaplan has predicted in his book, ‘The Coming Anarchy’? “There will be winners, there will be losers. The challenge is to make sure that we encourage those who see themselves as immediate losers to rethink and have a win-win abundance kind of mentality,” Utomi said. He emphasized that lawyers stand to reap enormous prosperity as players in the economy if Africa has a truly liberal continental marketplace. Also speaking, Bola Akinterinwa, former director

Chiedu Osakwe, Nigerian chief trade negotiator/director-general, Nigeria Office for Trade Negotiations.

general, Nigerian Institute of International Affairs, said a critical look at the provisions of the agreement shows that Ambassador Osakwe, who negotiated on behalf of Nigeria, had accomplished his mandate to a very great extent, which includes to ensure that the national interest is well protected and that Nigeria’s leadership in the conceivable future is guaranteed. He said whether or not Nigeria signs, the agreement would enter into force, but added that not signing has implications for Nigeria, especially in terms of its relationship with its francophone neighbours. “If the agreement enters into force without Nigeria, what is the likely relationship between Nigeria and particularly Benin Republic? Why Benin Republic? Benin Republic has a policy according to which the budget will never be passed, monetary policy will never be adopted until Nigeria has come out with its own policy. So if the tariff in Nigeria is $10 on a given product, then Benin Republic will reduce its own $4 or $5. “And in terms of business, you know quite well that you can travel by road to Benin Republic and get it cheaper; it is even possible to settle, find your way out without paying any tariff or anything. So for the businessman, there is no way they will not be going to Benin Republic. So by not signing already, the first implication is that smuggling that government is trying to prevent will find a very fertile land to grow,” he said. He put the blame for Ni-

geria’s non-preparedness to sign the agreement partly at the foot of lawyers, saying lawyers in those countries that had signed had been actively present engaging with the issues. Babajide Sodipo, Regional Trade Adviser at the African Union Commission, said there was every need to balance the ongoing debate on the AfCFTA. He said that rather than focus attention on what manufacturers in Nigeria may stand to lose, it was better to take a more holistic view and consider the opportunities that stare service providers like lawyers, bankers, designers, programmers, entertainers and others in the face in the event that AfCFTA comes into force. Sodipo said the AfCFTA was one trade agreement that African countries, and at some point led by Nigeria, agreed and created for themselves, adding that the process of the agreement was such that 55 African countries sat together in a room over the course of three years to negotiate, agree, determine every single line, every single word, every single comma, and even the paragraph length. Likening the scenario to a football match where you cannot shy away for fear that your opponent would foul you, especially since there are rules to deal with such contraventions, he said every single fear related to the implementation of the agreement has a built-in safeguard written into the agreement to address it. “So we must understand, and we must realize that every single fear, whether

it is related to transshipment, whether it is related to anti-dumping, whether it is related to smuggling, trade facilitation, every single thing, every single concern that have been raised in the debate about AfCFTA has something within the agreement that attempts to address it, that attempts to mitigate it,” he said. “What will happen if Nigeria does not sign the agreement? First of all, the world will not end. The agreement will come into force. The agreement will be ratified by 22 other countries apart from Nigeria, and it will come into force and it will work. So instead of having a market of 1.2 billion people, you have a market of a billion people, which is still a very large market; still a very fairly strong chunk of the African economy. “What that means is that the fact that Nigeria does not sign does not mean that anybody will wait for Nigeria; it will simply mean that life will go on without Nigeria, and then it becomes progressively much more difficult for you to catch up because eventually, to the extent that you do not want to cap your growth, to the extent that you do not want to lose the market opportunities that you have, you still have to sign.” Apart from this, he said, Nigeria’s competitive advantage as the largest market in Africa would be completely eroded in the sense that investors would have two options to either invest in Nigeria’s market of 200 million people or in an AfCFTAcompliant country with access to a billion people, adding, “It is an easy choice.”

Friday 29 June 2018

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Friday 29 June 2018

CityFile

Nurse dies of suspected Lassa fever in Edo IDRIS UMAR MOMOH, Benin

enry Ehimati, a male nurse at the Okomu Oil Palm Company Plc staff clinic located in Ovia South-West local government area of Edo State has reportedly died of Lassa fever. The nurse said to be in his early 30s allegedly died of Lassa fever at a private clinic in Benin, the state capital before he could be transferred to the Lassa fever centre at Irrua teaching hospital in Esan Central local government area of the state. Fidelis Olise, spokesperson of Okomu Oil Palm Company Plc, who confirmed the death, said the doctor at the private clinic where the deceased was on admission affirmed that the nurse died of suspected Lassa fever. It was gathered that the deceased lived with his family at Upper Sakponba area, in Benin whenever he was off-duty at the Okomu Oil Palm Company staff clinic. A source who pleaded anonymity said the doctor in charge at the Okomu Oil Palm staff clinic, observed that the late nurse was unusually weak and with high fever last week. According to the source, by the time they admitted him at the clinic and ran a test on him, they detected that he had ‘2 plus’ malaria, with protein in his blood. “As the fever got worse by the day, they then decided to transfer him to a private clinic in Benin last Saturday, where they also carried out several tests on him. “When they suspected that he might be suffering from Lassa fever, they then decided he would be transferred to the Lassa fever centre at Irrua teaching hospital. But he died at the private clinic even before they could finalise arrangements to take him to Irrua”, the source said. The state commissioner for health, David Osifo, could not be reached for confirmation, as his phone was busy. He did not also respond to a text message sent to his mobile phone.

Killings: Group urges governors to embrace community policing

group, Ndigbo Unity Forum (NUF) has advised governors to set up community policing networks in their various states to assist to protect lives and property. Augustine Chukwudum, the NUF president, gave the advice in while speaking in Enugu. Chukwudum observed that the security agencies might have been overstretched and needed the help of the populace to effectively nip these killings in the bud. He advocated for concerted efforts by all Nigerians, stressing that security remained everybody’s business and not only the Federal Government’s responsibility. “This is the time for every Nigerian to rise up and defend their homes by joining governments at all levels in strengthening security in their communities and neighbourhoods. “It is unpatriotic that a Nigerian will fold arms and allow his or her community and neighbourhood to be destroyed and people maimed mindlessly.’’ The NUF boss, however, extended the group’s condolences to those who lost their loved ones and property in the killings. “NUF will continue to pray that the Almighty God grants them rest and bring us peace in the country.’’ Suspected herdsmen killed over 100 people and burnt more than 50 houses as thousands of people fled their homes in Plateau on Sunday. (NAN)

Several vehicles burnt in the tanker fire on Michael Otedola Bridge outward Lagos on Lagos Ibadan Expressway, yesterday.

FG to complete 2nd Niger bridge in 2020 Oyin Aminu

he Federal Government says it is working towards completing the second Niger bridge within the next two years. Minister of information and culture, Lai Mohammed, gave the assurance during an inspection tour of the project with some journalists. The minister, who affirmed government’s commitment to ongoing government projects across the country, assured that funding constraints would not delay the completion of the bridge as there was presidential intervention infrastructural fund that ensured no major project suffers. Speaking at the Asaba end of the bridge during the tour on Tuesday, Mohammed stressed that the Federal Gov-

ernment wasn’t sleeping or politicising the project. According to Lai Mohammed, “the second Niger bridge would be completed, and it would change the socioeconomic situation of the country. We are working in a creek, what people want to see is that bridge, and before you see it you must have done a lot of work. He stated further that “the contract of the second Niger bridge was awarded in 2014. The Buhari’s administration has been funding the project. So far, a lot has been done and in the next two years, passengers would not have to queue on the first Niger bridge again. “The thing about this project is that because of the alignment, people from the old bridge will say nothing is going on, you have come here and you can see a lot of work is going on and I am excited

because with technology the challenges here are overcome. You could hear that in June/July the water level usually rises by 2-3 meters and it’s not like the way we use to have casualties like before. “It is important that you are here, because if you are not here l, you will not see the enormity or importance of what is going on. “The bridge consist a of two equal end spans of 40m each and 16nos equal intermediate spans of 55m each and 2 no of intermediate spans of 90m each, 3nos of navigational spans of 150m each. Total width of 30.1m. There are a total of 615 nos piles on the entire bridge, spanning from axis 100 to axis 330. 2 underpasses classified as secondar y bridges are planned at Amakom village in Delta State and Atani roads in Anambra State,” said Mohammed.

Court gives go-ahead to seal illegal abattoirs in Ibadan AKINREMI FEYISIPO, Ibadan

yo State government says it is executing an interim order issued by the state High Court to seal Bodija market abattoir, Aleshinloye market abattoir, and several other unlicensed abattoirs. The order was said to have been issued by court on Friday June 22 just as the government is insisting on no going back on its directive to butchers in Ibadan to relocate their businesses to the newly built state-of-art-abattoir in Ibadan. The National Union of Butchers (NBU) had kicked against moving all butchers within Ibadan to the multi-million naira abattoir recently commissioned at Amosun village in Akinyele local government of the state. The butchers also protested against the destruction of their abattoirs in some places in Ibadan last weekend allegedly by a combined team of soldiers and policemen. But the state commissioner for agriculture, rural and natural resources, Oyewole Oyewumi explained that gov-

ernment constituted a taskforce to enforce the relocation of slaughter services by all butchers to the central abattoir at Amosun village, to ensure that standards were met for commercial animal slaughter to protect citizens from obnoxious practices. The taskforce, according to Oyewumi, comprises of the police, civil defence corps, state security service, ministries of environment, agriculture, physical planning and bureau of investment promotions with the responsibility to identify and enforce the provisions of the meat law of Oyo State and other relevant laws. The agric commissioner reiterated that government decided to relocate the abattoirs in Ibadan to curb the unhealthy process of slaughtering of animals, offering of dead, sick and unwholesome animals in various markets, backyard slaughter slabs and make-shift slaughter houses in an unhealthy environment. He regretted that after giving the butchers five years to wind up without paying taxes, the ministry still observed that some persons among the butchers, rather than wind up, were in fact

establishing new slaughter locations in unhygienic environment without government’s approval and no veterinary presence for inspection of animals for slaughter. According to Oyewumi , “For the past five years, the ministry of agriculture has engaged all stakeholders in a bid to ensure cooperation of all parties with the new initiative meant to assure the populace of the quality of cattle meat and other animals offered for sale in our markets. “In 2014, the government had given all abattoirs operating in Ibadan a year to wind up their activities and relocate their slaughter operations to the new state-ofthe-art abattoir at Amosun village. Since 2014, the state had ceased to collect due rates and taxes from all abattoirs in Ibadan, in order to encourage compliance and ensure that the operators wind up and comply with the meat law of Oyo State which makes it illegal for anyone to operate any slaughter slab, abattoir or slaughter house without the authority and license of government,” he said.

Friday 29 June 2018

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FINANCIAL TIMES

World Business Newspaper

Trump and Putin to hold summit in Helsinki US and Russian leaders will discuss ‘national security issues’ in Finland on July 16 HENRY FOY

onald Trump and Vladimir Putin will hold their first bilateral summit in Helsinki on July 16, in a long-awaited meeting at a time of torrid relations between Moscow and western powers. The planned summit between the US and Russian presidents to discuss “a range of national security issues” has raised hopes in both administrations of some conciliation between the two countries. But it is likely to raise the ire of some of Mr Trump’s western allies, who have called for a tough line towards Mr Putin. It may also spark criticism from Mr Trump’s domestic political opponents amid an investigation into alleged collusion between the president’s campaign team and Russian officials. The two men will meet in the Finnish capital to discuss the war in Syria, Ukraine, and “the further development of Russian-American relations”, according to the Kremlin, while senior officials from both sides have suggested that talks on arms control could also feature. “I have said it from day one, getting along with Russia and with China and with everybody is a very good thing,” Mr Trump said on Wednesday. “It is good for the world. It is good for us. It is good for everybody.” John Bolton, Mr Trump’s national security adviser, who brokered the summit during a visit to Moscow on Wednesday, sought to lower expectations for tangible agreements from the meeting, saying that “the mere fact of the meeting already is a success”. Finnish president Sauli Niinistö, who will host the summit, said the agenda would be decided in the next fortnight “but they will certainly discuss the overall international situation and hopefully also arms control and disarmament issues”. “Even small steps in reducing tensions would be in everybody’s interest,” said Mr Niinistö, adding that he would seek to discuss “the tense situation in the Baltic Sea region as well as our Arctic objectives” with the leaders. Mr Trump and Mr Putin had two short meetings last year on the fringes of global summits, but plans for a full-fledged summit

have so far been scuppered by a US investigation into whether members of Mr Trump’s campaign team colluded with Russian officials during the 2016 election, military strikes on Syria and fresh US sanctions against Russians and their companies. The two presidents will meet the day after the World Cup final in Moscow, three days after Mr Trump’s visit to the UK and five days after the US president attends the annual Nato summit in Brussels. The timing risks irritating some western allies such as the UK who have sought to isolate Mr Putin diplomatically over the past year, and do not share Mr Trump’s keen desire to engage with the Russian president. This month Mr Trump suggested that Russia should be invited to rejoin the G7 group of powerful countries, drawing criticism from other leaders. Russia was evicted from the grouping after its invasion and annexation of Crimea. At the same time, the US in April issued its toughest sanctions yet against Russia, accusing Moscow of “malign activity around the globe”, including in Ukraine, Syria, cyber space and an attempt to “subvert western democracies”. Robert Mueller, the former FBI chief, is leading an investigation to assess whether Mr Trump’s campaign team colluded with the Russians to help secure his election, a move that the president derided as “the rigged witch hunt” in a series of tweets on Thursday morning. Russia’s deputy foreign minister Sergei Ryabkov said on Thursday that he hoped the summit would include talks on preserving the Intermediate-Range Nuclear Forces treaty, a 30-year-old agreement on reducing nuclear missiles that has been called into question. Plans are under way to arrange a meeting between US secretary of state Mike Pompeo and Russian foreign minister Sergei Lavrov before the presidential summit, Mr Ryabkov added. “We believe that such contact is a must, it is absolutely necessary, considering the agreement to hold a summit,” Mr Ryabkov told reporters. “We have made certain proposals to this effect and are waiting for an answer from our US colleagues.” Additional reporting by Richard Milne in Oslo

Greece is pillar of EU stability, says firebrand Alexis Tsipras Once the biggest threat to European unity, prime minister now preaches consensus JIM BRUNSDEN

lexis Tsipras almost pushed his country out of the eurozone, railing against German hegemony in Europe and its neoliberal consensus. Now, Greece’s prime minister is worried about populist political forces rocking the EU boat. Speaking to the Financial Times after Athens secured a historic debt relief deal from other eurozone governments,

Mr Tsipras said Greece was a “pillar of stability” in a turbulent region, and a solidly pro-European force in volatile times for EU policymaking. “I think the most important achievement is that Greece was for more than five years a part of the problem in Europe, now it’s part of the solution,” he says. It is a breathtakingly bold assertion from a prime minister whose policies Continues on page A4

According to the Kremlin, Donald Trump (left) and Vladimir Putin will meet to discuss the war in Syria, Ukraine, and ‘the further development of Russian-American relations’ © EPA

The ship tycoon, the con men and a €100m scam When fraudsters embarked on an elaborate sting, they made one big miscalculation: their victim JOHN GAPPER

ust after noon on a sunny day in June, a 51-year-old former car dealer called Paul Sultana stood in court number four at Southwark Crown Court in London to be sentenced for his part in one of the strangest crimes ever tried there. He was first arrested seven years ago for conspiring to defraud the owner of the world’s biggest ship of €100m, and the marathon proceedings had taken their toll. Sultana’s trial was not only the largest private prosecution known in the UK, but his second: he was originally tried last year but that jury could not agree on a verdict. He gave evidence in the first trial, donning glasses to examine documents as he swept back his brown hair. This time, he did not enter the witness box and looked exhausted as he was jailed for eight years after a six-week hearing. His victim, Edward Heerema, a 71-year-old Dutch shipbuilding tycoon, had finally broken him. Sultana might have escaped jail, despite being described by the judge in a civil trial in 2014 as “a patently dishonest individual”, who was a “willing participant” in a fraud that spanned three continents. Frauds are notoriously hard and expensive to prosecute and the

Crown Prosecution Service (CPS) did not bring criminal charges against him. He was only tried because Heerema was wealthy and relentless enough to pursue the loose-knit ring of fraudsters himself. Today’s fraudsters are often distant associates who come across each other on the internet. Their crimes are not only complex but each criminal has a ready defence — he or she was deceived, just like the victim. They draw in advisers, such as accountants and bankers, who do not realise that it is a fraud and may be bankrupted by innocently taking money, as some were in this case. Finding out the truth, and then getting any jury to understand it and to convict, is a huge task. An estimated £193bn was lost to fraud in the UK in 2016 but, according to the accountancy firm KPMG, only 220 cases worth £1.1bn in total got to court. Heerema’s pursuit is a spectacular example of a trend towards privately funded justice — more banks and other victims are prosecuting because it is their only hope. “Jail is the most potent form of sanction against a white-collar offender,” says Mark Button, a professor at Portsmouth University. “If you are upset, it is a way to get retribution.” But the private prosecution was only one of the

remarkable aspects of the crime. There was the ship itself — Pioneering Spirit, the largest in the world by volume, a €2.7bn twin-hulled vessel the size of two super tankers joined at the stern. It is as long as the Empire State Building is high. There was also the fact that Heerema caused outrage by originally naming it after his father Pieter Schelte Heerema, a brilliant shipbuilding engineer who became a Waffen-SS officer in the Nazi-occupied Netherlands. I first encountered the case more than three years ago, talking to a victim of Marek Rejniak, a 63-year-old PolishCanadian who was the alleged ringleader of the Heerema fraud, and has still not been arrested. Steadily, like those caught in the crime, I became drawn into the story by its sheer improbability. I could not write much about it because of the criminal trials but I came to know many of those involved — not only the victims and lawyers, but the fraudsters themselves. Sultana and I chatted casually during his first trial and he gave a friendly wave at the start of the second. Luis Nobre, a flamboyant Portuguese confidence trickster who was part of the ring, talked to me for two hours, and I wondered whether he was conning me too.

Foxconn tells the story Trump wants US to hear Manufacturer’s Wisconsin project is President’s good news counterpoint to Harley PATTI WALDMEIR

hen Foxconn breaks ground on Thursday on a $10bn LCD manufacturing complex in Wisconsin, President Donald Trump will be there to claim credit for securing the Taiwanese group’s promise to deliver 13,000 jobs. But while Mr Trump helps Foxconn celebrate in Racine county, Wisconsin — a key swing district that helped him win the presidency in 2016 — just up the road at Harley-Davidson, executives will be figuring out who will lose their jobs, after the company said it must offshore production to battle retaliatory EU trade tariffs. That landed Harley in the presidential doghouse. In a series of early morning tweets on Tuesday, Mr Trump lashed out at the company, gleefully forecasting more offshoring will be the “beginning of the end” for the iconic American brand. But Foxconn, the world’s largest contract electronics manufacturer and a key supplier to Apple, was sending exactly

the message that Mr Trump wanted to deliver, with its vote of confidence in US manufacturing, and in Wisconsin, part of the industrial heartland that Mr Trump had promised to save. So the timing could not be better for an event focused on the jobs story that Mr Trump wanted to tell: a $10bn deal that he brokered, with the not insignificant help of $3bn in state aid and a further $1bn in local incentives and highway funding. The project is controversial. Proponents claim it will jump-start the modernisation of an area hit hard by globalisation, while also creating tens of thousands of new jobs in construction and knock-on industries, on top of the 13,000 promised by Foxconn. Critics said Wisconsin offered too much state money to land the project. They also claimed the scheme was an environmental threat, although Foxconn last week announced a water recycling plan that could defuse some of that opposition. And a small number of landowners are still

refusing to sell their homes for the project, although the local village has threatened to take them by eminent domain if necessary, raising the risk of protracted litigation. Sceptics also point to a promised $30m Foxconn factory in Pennsylvania that never got built. “I don’t think it will fail to happen like in Pennsylvania” said Matt Montemurro, president of the local chamber of commerce, the Racine Area Manufacturers and Commerce. “We are down the road far enough now.” Mr Trump plans to hold a fundraising breakfast on the fringes of the event, after blitzing his followers with emails urging them to pay for the equivalent of online raffle tickets for the chance to break bread with the president. Only a few hundred Foxconn jobs are on the horizon so far. Construction is just getting under way on the 1,000 acre advanced manufacturing facility, which the Taiwanese company hopes will one day anchor a Silicon Valley-style high technology centre in the heart of the Rust Belt Midwest.

BUSINESS DAY

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NATIONAL NEWS

WPP hires lawyers to hunt down source of leaked emails Original messages between current and former staff were sent using WhatsApp MATTHEW GARRAHAN & MADISON MARRIAGE

PP has instructed two external law firms to investigate the source of several anonymous and intimidating emails, which were sent to current and former

employees after Martin Sorrell resigned as chief executive of the advertising group. The anonymous emails, which have also been sent to the Financial Times, contain extracts of messages between current and former WPP staff. Most of the

original messages were sent using WhatsApp, the instant messaging app. One was an email written by a senior WPP executive to a junior member of staff. In some of the messages, the employees discuss Sir Martin’s travel arrangements and

the company’s bonus plan. WPP has retained Slaughter and May and Milbank to investigate the leak of the messages, which were sent from a Proton account, an encrypted email service based in Switzerland that is commonly used by in-

dividuals seeking to protect their privacy. The author of the emails did not identify themselves. The WhatsApp messages were initially accessed by a technician who had physical access to a former employee’s work phone and extracted the messages while logged on to it, according to a person briefed on the company’s internal investigation.

Brussels steps up emergency planning for no-deal Brexit

Greece is pillar of EU stability, says firebrand... Continued from page A3 in the six months after his election in January 2015 precipitated the EU’s biggest political crisis since its inception and almost brought about the partial break-up of the eurozone. With Greece preparing for life without bailout funds, Mr Tsipras needs to send a reassuring message to his EU partners. Mr Tsipras’s comments are also a reflection of how the European political landscape has been drastically reshaped since the leftwing firebrand and his Syriza party were swept to power on an anti-austerity wave, promising to secure better terms for Greece after nearly five years of international bailouts. The election of a Eurosceptic, anti-establishment government in Italy, coupled with persistent tensions between eastern and western members of the EU over democratic standards and migration policy, mean that Mr Tsipras now finds himself allied with leaders such as France’s centrist president Emmanuel Macron in efforts to push ahead with European integration. Greece, whose reception facilities were overwhelmed in the 2015 refugee crisis, is also at the centre of discussions on reforming EU asylum and immigration policy. It is a shift Mr Tsipras is keen to underline. “The threat to Europe is these populist, extreme-right forces that are rising now,” he says. “I think that this is the real threat we are facing now with the refugee crisis. This model or faction that says, if this problem is not in our backyard, I do not want to contribute to the way to find solutions.” He and his government are firmly inside the “European framework”, says Mr Tsipras. “I am at, let’s say, on the left side of the framework. Someone else is in the centre, on the right, but we are in the same framework.” Mr Tsipras was speaking after what have been a momentous few days for Greece. The debt relief deal approved by eurozone finance ministers last week paves the way for the country to exit its euro area bailout in August, bringing an end to eight years of rescue programmes. Another move to turn the page on the past came earlier this month with a deal between the Greek government and Macedonia to end a near 30-year dispute over the western Balkan country’s name. The accord was hailed by EU leaders, even as other political forces in Greece labelled it as an attempt to curry favour with the US and fuel splits in the country’s main, nationalist, opposition party. Mr Tsipras says his government’s record includes increasing Greece’s “geopolitical role”. “We managed to enhance our relations with our strategic partners and to create new partners in the area,” he says. But while Greece seeks to move on to brighter economic times, Mr Tsipras’s political opponents and others in the country argue that Syriza should not be allowed to forget other parts of its record.

Friday 29 June 2018

Measures include keeping Channel tunnel open and sustaining financial services ALEX BARKER, ARTHUR BEESLEY & ANNE-SYLVAINE CHASSANY

Trump will be much more than a footnote in Obama’s ‘arc of history’ The president may be on the wrong side of history, but he is also rewriting it EDWARD LUCE

ne measure of what stunts America’s left — and western globalists in general — is faith in “the arc of history”. In spite of all that has happened, Barack Obama is still wedded to the phrase. The future is on our side, he believes — even if the present is stampeding the other way. Donald Trump is purging every vestige of Mr Obama’s legacy. From the Iran nuclear deal to post-racial America, he is the incinerator-in-chief. It is thus reassuring to know that he is destined for history’s ash heap. Mr Trump may not be aware of his fate but educated people are. Alas, the problem with the long run is that it can take a long time to come. Lots of stuff can happen in between. Even if Mr Trump were defeated in 2020, it could take years to restore confidence in the US. The world is not on pause as it awaits the return of America’s better angels. Facts on the ground keep changing. Mr Trump is doing a better job of reinventing those facts than his detractors acknowledge. Watch the “

populist internationale” springing up among hard-right parties across the west. Mr Trump is their Karl Marx. They show more savvy in creating affinities among themselves than the west’s retreating social democrats. Mr Trump may be on the wrong side of history. Yet he is also rewriting it. With the departure of Anthony Kennedy he can tilt the supreme court firmly to the right and transform US social policy for a generation. America is far more polarised than when he took office. The US is on course to become a majority-minority nation — when whites fall below half the population — within a quarter of a century. In theory, demography should help Democrats as time goes on. But time is a precious commodity. Forty three per cent of America’s voters today are whites without a college degree. If they are motivated, Republicans could retain control of Congress in November. Last week, Mr Trump’s approval ratings hit 45 per cent — the highest in more than a year. Until now, US presidents have a 60 per cent chance of being re-elected. Mr Trump may be an aberration. It

depends on what you choose from the past. About half of Hispanics in America would define themselves as white if they were given the choice, say polls. Former minorities, such as Irish and Italians, were also Democrats. Republicans demonised them as un-American. Today, Italian and Irish Americans are among the most loyal supporters of Mr Trump. Identity politics says whites should bear collective responsibility for the legacy of slavery. Does that cover descendants of those who arrived in America after it was abolished? Whatever your moral answer to the question, the politics is self-defeating. Guilt is not a voter winner. The same applies to globalisation. The arc of history bends towards Davos. In the 21st century, global elites are meant to figure out the technocratic solutions. Beggar-thy-neighbour nationalism is a relic of the past. Again, though, the past tells us what we choose to believe. The previous high noon of globalisation died in the trenches of first world war.

Amazon unveils plans to buy drug delivery group Shares in large US pharmacy chains drop sharply after PillPack deal announced ADAM SAMSON

nline retailing giant Amazon announced plans to purchase a deliveryfocused pharmacy on Thursday, driving the shares in large US drugstore chains sharply lower. The company said it has agreed to purchase PillPack, a pharmacy that focuses on customers that need to take multiple daily prescriptions. “PillPack delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time,” Amazon said. The deal comes as Amazon, along with JPMorgan Chase and Berkshire have joined together to enter the heath-

care industry with a not-for-profit healthcare company. When it was announced earlier this year, the trio of American heavyweight companies said they aimed to reduce bills for their employees and “potentially all Americans”. Amazon did not say whether this purchase was related to its healthcare venture. PillPack currently ships to 49 US states, according to its website. It is backed by several big-name investors, including Accel Partners and Menlo Ventures. Customers who order their medication through the company “receive a personalised roll of pre-sorted medications, along with a convenient dispenser and any other medications that cannot be placed into packets, like

liquids and inhalers.” The news sent shares in America’s biggest drug stores sinking shortly after the opening bell on Wall Street. Walgreens Boots Alliance dropped 10 per cent, while CVS Health declined 9.5 per cent. Express Scripts, a large pharmacy benefits manager, dropped 3.7 per cent. Mail-order prescription deliveries represent a small proportion of the overall market but has been a focus given the ageing Baby Boomber population that is expected to require higher levels of medical care in coming years. Amazon said it expects the deal to close in the second half of this year, pending regulatory approval. It did not disclose the terms.

he EU is quietly stepping up work on emergency plans to cope with the first days of a hard Brexit, including transitional measures to mitigate damage should the UK crash out of the bloc without an exit deal. Dubbed “the parachute” by some officials in Brussels, the provisions would in effect stagger the most severe effects of Britain’s March 2019 departure by using special arrangements for transport, financial services and customs. “Hard Brexit would be like a bomb that hits you,” said one senior European government official overseeing Brexit contingency planning. “When the pressure is so high everything becomes fluid. Once hard Brexit becomes a reality you have to do something.” At a summit on Friday, EU leaders will note the slow progress in talks and urge authorities to accelerate contingency plans for a nodeal Brexit. But so far in Brussels these have related to “preparedness”: the drive to raise private sector awareness of legal consequences and address post-Brexit anomalies in EU rules regarding the UK. The European Commission and member states have been less open about work on specific plans to cover the first days, weeks and months after Brexit, which would permit essential cross-border activity to continue for a limited period. Officials are also considering scenarios in which the formal UK exit date could be extended by a few months to buy time for preparations. Any unilateral EU provisions would be tailored to the bloc’s interests and would remain in force only until the EU develops the infrastructure to enforce rules for a no-deal Brexit that could last for years. “The commission is working on basic, bare-bones arrangements, the patches to avoid absolute chaos,” said another senior EU diplomat. “But they have been very coy about it, even with us.” All EU level work is being co-ordinated by a dedicated team reporting to Martin Selmayr, the commission’s secretary-general. The unilateral or “autonomous” measures under the EU’s consideration include grandfathering — or maintaining — regulatory permissions, such as safety certificates for airlines and ensuring the enforceability of financial contracts signed under UK law. Other arrangements could, for a short period, keep open the Channel tunnel, a main conduit for freight. One approach could be to apply tariffs in aggregate — based on estimates of the volume of trade on the route — rather than on individual items. EU diplomats differ on whether the arrangement should last for hours, weeks or months. Provisions would be made for basic levels of airline service to and from UK airports, but without full EU flying rights. “You’re going to have to think about the plane that takes off at 11pm in London on the eve of the cut-off date and lands after midnight in Paris,” said one senior French official. “Will it be allowed to land?” Separately, some of Britain’s closest trading partners are exploring which bilateral arrangements may be required.”

Friday 29 June 2018

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Stobart family scion criticises chairman and chief executive William Stobart says he is ‘saddened’ by ‘vindictive campaign’ against ex-chief Tinkler JOSH SPERO & HANNAH MURPHY

he scion of the Stobart family has hit out at the chairman and chief executive of the Stobart Group, which is embroiled in a public boardroom conflict. William Stobart, son of the founder of the Eddie Stobart truck haulage business, said: “It saddens me that the current stewards of the business have seen fit to pursue a vindictive campaign against the group’s former CEO, Andrew Tinkler.” In response to Mr Stobart’s statement, the Stobart Group said: “We fully refute these allegations from Andrew Tinkler’s childhood friend and former brother-in-law. “Stobart Group is now at a stage of operational maturity that requires a different kind of management, and this is something that Andrew Tinkler himself recognised when he chose to step down as CEO last year.” Mr Tinkler last month proposed ousting chairman Iain Ferguson and replacing him with retail billionaire Philip Day. Mr Ferguson, chief executive Warwick Brady and Invesco, the largest shareholder, oppose Mr Tinkler, who has the support of Woodford Investment Management, the second-biggest shareholder. Mr Stobart said Mr Brady and Mr Ferguson’s conduct had “made a bad situation 10 times worse — they have gone way too far. The

leaking of emails and the picture they are attempting to paint of Andrew is completely wrong — you can’t do that and expect to have the respect of senior colleagues.” Both sides in the dispute have been briefing the media. Mr Stobart concluded: “I fear that if this goes on much longer it will have a lasting effect on the company, its employees and its customers.” Stobart fired Mr Tinkler earlier this month after he started his campaign to replace Mr Ferguson. Mr Tinkler is pursuing a civil claim against Stobart in a Guernsey court, where the company is headquartered, to be reinstated as a director on the ballot at the annual general meeting next Friday. Mr Tinkler is arguing that shareholders should have the right to make a decision on his candidacy, while Stobart Group says that as he is no longer a director, it is not possible for him to stand for re-election. The case was heard at the Royal Court of Guernsey on Thursday and a result is expected by Friday. Stobart, which has been trying to improve its corporate governance following a spate of boardroom coups in 2013, has said it is issuing legal proceedings against Mr Tinkler alleging “breach of contract and breach of fiduciary duty”, while Mr Tinkler launched defamation proceedings against Stobart’s board this month.

Adidas warns of potential data breach MAMTA BADKAR

erman sportswear maker Adidas on Thursday said customers on its US website may have been exposed to a potential data security incident. “On June 26, adidas became aware that an unauthorised party claims to have acquired limited data associated with certain adidas consumers,” the company said in a statement. It added that it “immediately began taking steps to determine the scope of the issue” and is working with data security firms and law enforcement authorities to investigate the issue. Adidas said the data include contact information, usernames and

encrypted password but it does not believe credit card details or information on fitness was stolen. Adidas is just the latest in a string of retailer’s that have reported data breaches recently, with competitor Under Armour reporting a breach in March and Best Buy, Sears and Hudson’s Bay reporting in April that they too had experienced breaches. Adidas has been gaining market share in the competitive US sports shoe market challenging rival Nike’s dominance. The company has benefited from athleisure’s shift to fashion products and away from performance based apparel but some analysts have cautioned that North America sales have already peaked for Adidas.

SEC moves to loosen restrictions on exchange-traded funds KADHIM SHUBBER

he Securities and Exchange Commission moved to loosen the restrictions on the fastgrowing $3.4tn exchange-traded fund industry on Thursday by lowering the barriers for bringing the products to market. The agency voted to propose a new rule that would allow the creation of some ETFs — traded investment products that track baskets of stocks or bonds — without its prior approval. For years, the industry has complained about the length and cost of the approval process. “Many Main Street investors now use ETF

investments to meet their financial goals . . . we should embrace such innovation and ensure that our regulatory framework allows for it, while being unwaveringly true to our investor protection mission,” said Jay Clayton, SEC chairman, in a statement. The new rule would eliminate the need to get the SEC’s approval for requirement for open-ended ETFs if they provide daily portfolio updates online, adopt certain policies and procedures and disclose data like bid-ask spread. More complicated products, like leveraged or inverse ETFs, would continue to need to apply for approval.

Andrew Tinkler, former Stobart Group chief executive

Wall Street gains but trade concerns linger Dollar index retreats from 2018 high; sterling below $1.31 as EU summit starts DAVE SHELLOCK

verview Lingering concerns over global trade tensions continued to cast a shadow over world stock markets, with European bourses further unsettled by political worries as a critical EU summit got under way. And there was no respite for Chinese stocks as the CSI 300 index closed at a fresh one-year low, taking it deeper into bear market territory. The renminbi fell for a fourth successive session, hitting its lowest point against the dollar of 2018. Simon Derrick, chief currency strategist at BNY Mellon, noted that the dollar was heading for its biggest monthly rise against the offshore renminbi since the early 1990s. “Even though there are good reasons for believing that Beijing might prefer not to engage in a currency war, there is a growing risk the move seen this month…could prompt accusations from the US that this is exactly what China is doing,” he said. “This is potentially dangerous.” Meanwhile, sterling dipped below $1.31 to its lowest level against the dollar since November as EU leaders gather in Brussels against a backdrop of fresh uncertainty regarding Brexit. “The likely calls from Europe to increase preparations for a ‘no deal’ Brexit may well be simply part of the negotiating process,

but the reality is that the closer we get to March 2019 with this uncertainty continuing the greater the negative impact on the real [UK] economy will be.,” said analysts at MUFG. Worries about the potentially divisive summit weighed on European stock indices, with Frankfurt’s Xetra Dax sliding 1.4 per cent — taking its fall so far this week to nearly 3.2 per cent. Wall Street put in a slightly more positive showing — despite losses in the healthcare sector after Amazon announced plans to buy a drug delivery group. US tech stocks staged a modest rebound. The dollar index hit a fresh 2018 high but then retreated as data showed a downward revision to US first-quarter GDP growth, and the euro got a lift from figures showing that German inflation this month was still higher than the European Central Bank’s target. Oil prices continued to find support from supply concerns following US demands that all countries halt imports from Iran from November. US West Texas Intermediate hit its highest point for more than three years Equities By early afternoon in New York, the S&P 500 was up 0.3 per cent at 2,708, while the Dow Jones Industrial Average was 0.2 per cent higher and the tech-heavy Nasdaq Composite was up 0.4 per cent. Pharmaceutical retailers are suffering after Amazon announced plans to acquire a delivery-focused pharmacy. Wal-

greens Boots Alliance was among the hardest hit, down more than 9 per cent, while Amazon shares were up 2 per cent. Across the Atlantic, the latest decline for the Xetra Dax was largely driven by losses for tech stocks — as well as carmakers — and helped push the pan-European Stoxx 600 down 0.8 per cent. The FTSE 100 in London outperformed as it shed less than 0.1 per cent. Forex and fixed income The dollar index was down 0.1 per cent at 95.19 having earlier hit 95.53, the highest for 11 months. The euro was 0.2 per cent higher at $1.1578 while the greenback was up 0.1 per cent against the yen at ¥110.40. India’s rupee touched its weakest point on record against the dollar following a high-profile visit to New Delhi by US negotiators and amid a streak of broader strengthening by the greenback. The pound touched $1.3051 before pulling back to $1.3087 — still down 0.2 per cent on the day — tracking concern over Brexit politics following reports that the EU was stepping up contingency plans for the UK leaving the bloc with no exit deal agreed between the two parties. Government bond markets had a relatively quiet session, with the yields on 10- and two-year US Treasuries both nudging up 2 basis point to 2.85 per cent and 2.52 per cent respectively — keeping the gap between the two at the lowest in a decade.

Starbucks grinds lower as CFO announces retirement JESSICA DYE

tarbucks can’t get a break. Just a week after its shares plunged on growth concerns, the coffee chain’s shares hit a near three-year low on Thursday after it announced its chief financial officer plans to retire later this year. The news that Scott Maw — who has been chief financial officer since 2014 — will retire effective November 30 sent Starbucks shares down 4.4 per cent to $47.62. Earlier in the session they fell to $47.37, the lowest since August 2015, according to Thomson Re-

uters data. It’s been a tough June for the Seattle-based company. Last week, it said it is planning to close about 150 US stores next year amid sluggish sales growth and also flagged concerns about its ambitious expansion efforts in China, which it has become increasingly reliant on for growth amid slowing momentum in its home market. All three major rating agencies downgraded Starbucks after the trading update last week, citing the possibility it would have to take on more debt to keep its pledge to boost shareholder returns. The changeover in the top ranks could present yet

another challenge to Starbucks as it tries to regain the momentum that has made it one of the most recognisable brands in corporate America. Its longtime chief executive Howard Schultz last year handed over the top job to Kevin Johnson after nearly four decades of leading the company, and took another step back earlier this month by leaving his post as executive chairman — possibly to eye a political career. After a middling 3.44 per cent gain in 2017, Starbucks shares have in the past two weeks erased all their gains for 2018 and are currently down 16.7 per cent on the year to date.

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Politics & Policy Friday 29 June 2018

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BUSINESS DAY

Ekiti guber: PDP accuses INEC commissioner, two directors of plotting to rig poll for APC

that it is also “privy to the game plan of the APC to use INEC’s ICT Department to preload card readers and input false results through ECollation while also using dif-

ferent sets of Forms EC8A to enter fake results in over 503 polling units to authenticate the fake E-collation results. “The PDP wants Nigerians to note these INEC’s clandestine activities, particularly those of Zakari, who is fast earning notoriety in election rigging, as well as the manipulations going on under Mahmood Yakubu, who appears helpless in the face of the machination of the commissioners and directors of the Commission.” The party also alleged that “Amina Zakari was reportedly sighted in Lagos last Wednesday where she allegedly held meeting with some top functionaries of the APC, including the party’s National Chairman, Adams Oshiomhole. “Further investigations revealed that Uwakwe, in particular, has been positioned to act as courier for huge sums of money to be paid to INEC staffers that will

perpetrate the rigging. “The PDP, in no equivocal terms, therefore demands that Zakari and her gang must not play any active role in the Ekiti election. She must stay away from Ekiti State as there is no way we can have a free, fair and credible election, with her in the process. “We also call on the international community as well as anti-graft agencies to be watchful of the sinister motives of Zakari and her collaborators in INEC ICT department, as well as others in the Operations unit. “Finally, let it be known that the people of Ekiti State are not in any way ready to accept any manipulation of the election by anybody whatsoever. This caution goes to all compromised INEC and security officials, who may have been assigned to attempt to subvert the will of the people of Ekiti state in this election.

for it to be searched, in the warrant of arrest for the search of my house, what they said was that I was a sponsor of terrorism. And I wanted to know subsequently how I would sponsor terrorism and they put there in bracket that I was aiding and sponsoring a proscribed organisation ‘IPOB’. “And so, everybody in Nigeria knows that I signed the bail bond for Nnamdi Kanu of IPOB. And if signing the bail bond means that I’m now a sponsor of IPOB, what it means also is that every Nigerian should be ready. For

every little thing, they will find a reason to hold you because this government has lost the confidence of the people. And all that they are going now is nothing but intimidation and trying to make sure that strong voices and voices who are saying that enough is enough, they will like to silence the voices”. He also listed lawmakers who have been framed up by Federal Government to include: Senate President Bukola Saraki; Chairman Senate Committee on Federal Capital Territory Dino Melaye and his

counterpart in Local and Foreign Debts Shehu Sani. His words: “The National Assembly of which I’m a very proud member is now besieged. Yesterday, it was Senate President sponsoring armed robbers, the other day, it was Dino Melaye sponsoring some gun runners, the other day it was Shehu Sani sponsoring murderers. Today, my own is sponsoring terrorism. And so everybody should get ready. They will find something that they will hang on your head”.

REMI FEYISIPO, Ibadan

h e P e o p l e ’s Democratic Party (PDP) has raised the alarm over alleged plots by the National Commissioner in charge of Operations, Amina Zakari and two directors of the commission to manipulate the system and rig the July 14, Ekiti governorship election in favour of the All Progressives Congress (APC). The party said its investigation reveals that two INEC directors: Pascal Uwakwe, in charge of Information and Communication Technology (ICT) and one Abdulrasaq Agboola have been allegedly holding meetings with the APC candidate, Kayode Fayemi and Ondo State Governor, Rotimi Akeredolu to perfect their plot to rig the election. “The PDP has been fully made aware of how the

Former Vice President of Nigeria and presidential hopeful of Peoples Democratic Party, Atiku Abubakar and Governor Nyeson Wike during Atiku’s consultative visit to Rivers State in Port Harcourt on Thursday.

INEC directors have been meeting with Fayemi, Gov. Akeredolu and other APC leaders at the Ondo state Government House, Akure, in the last three weeks, on

the directives of Zakari, as well as details of their plot to manipulate the process and rig the election for the APC,” it said. The PDP further alleged

Nigeria descending into tyranny - Abaribe OWEDE AGBAJILEKE, Abuja

he Chairman, Senate Committee on Power, Steel Development and Metallurgy, Enyinnaya Abaribe has cautioned that Nigeria is descending into tyrrany under the administration of Muhammadu Buhari. The lawmaker, who was released on Tuesday after spending five days in the Department of State Services (DSS) custody, called on Nigerians to get their Permanent Voters Card (PVC) and vote

out Buhari in the 2019 elections. According to him, the decision of Independent National Electoral Commission (INEC) in the forthcoming election will determine the direction of the nation after 2019. Speaking with journalists on Thursday in Abuja after meeting with the leadership of the party, he however, explained that he was accused by the secret police of sponsoring terrorism. He, however, clarified that he was not maltreated by officials of the secret police.

The senator called on other Nigerians critical of the government to brace up as they would be charged for one offence or the other by the Federal Government. “Where we are today in Nigeria, I can only make one recommendation to Nigerians. And that recommendation is: get your PVCs ready because we have to vote out this government. There is no other way we can do it because as you can see, this government is descending into tyranny. And when I was arrested and I was taken to my house

Osun 2018: SDP suspends chairman over comment on Omisore’s membership status BOLADALE BAMIGBOLA, Osogbo

o r a d d re s s i n g a press briefing recently that Iyiola Omisore is not a member of Social Democratic Party (SDP), among other political matters, ten members of the state executive council of the party, on Thursday suspended the state chairman of the party, Ademola Ishola. Announcing the suspension, erstwhile state secretary of the party, Timothy Agboola, flanked by the assistant secretary and seven other members of the executives, also accused Ishola of

failing to render account of over N6 million accrued to him while in office as chairman. Agboola, who read the resolutions of the executive committee, listed the alleged misdeeds of Ishola to include “misrepresentation of the state executive committee to the public through unauthorised press statement. “Usurping the powers of the state executive committee by refusing to call state executive meetings for the past three years. “Refusal to implement party resolutions and decisions at the state and na-

tional levels on the constitution of the state steering committee. “Non-constitution of lawfully constituted organ of the party at the ward and local government levels by aborting party Congresses and failure to render account of party grants and subventions collected for the past 5 years”. He subsequently announced Ganiyu Babatunde as the acting chairman’s of the party. As at the time of filing this report, all efforts to reach Demola Ishola for reaction proved futile as his mobile line was unavailable to receive call.

We are poised to hit 2m voters mark - Abia REC UDOKA AGWU, Umuahia

oseph Iloh, resident electoral commissioner of Abia State Independent Electoral Commission (INEC) has said that he was poised to ensure that the state hits 2million voters at the end of the continuous voter registration exercise. Iloh, who disclosed this to BusinessDay in an exclusive interview in Umuahia, noted that so far about 380,000 persons had registered since the commencement of the exercise. The REC , who spoke through Achibie Godfrey Chigozie, head of Department, Voter Education and

Publicity, hinted that before now Abia had only 1.39million registered voters. He disclosed that the Town Hall meetings embarked upon by the commission had gone a long way to creating more awareness thereby boosting response by people in the state to come up and register unlike in the past. “We have an intervention programme about two weeks now whereby we cover all the major markets with our DDC machines (computers). Each Local Government Area also in the state has one computer,” the REC said. Iloh disclosed that religious leaders in the state have equally contributed

immensely to the success of the exercise through their enlightenment of members on the need to obtain their permanent voters cards (PVC). The REC, who disclosed that the exercise is still progressing, said the PVCs for those who registered between April and December last year were ready for collection. He enjoined those who are yet to register to avail themselves of the opportunity as there is every likelihood that the exercise may wind up by the end of July to enable the commission produce the PVCs for onward distribution against the 2019 general election.

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BUSINESS DAY Online

Highlight of the news reports on our digital platforms this week

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the number of its citizens living in extreme poverty became higher than that of India in 2018, as compiled from World Data Lab, a predictive analytics social enterprise. For more visit our website at businessdayonline.com to catch up on full news stories.

Buhari dithers as Miyetti Allah claims responsibility for Plateau killings The brutal and mindless killings in the country, especially those perpetrated by Fulani militias in the North Central states or middle belt of Nigeria may continue unabated as analysts say Nigeria’s President Muhammadu Buhari continues to dither, is afraid or unwilling to order a clampdown on the known perpetrators of the killings even as they openly take responsibility for the actions.

Foreigners squeezed at Lagos airport as immigration imposes $110 fee Foreigners coming into Nigeria are currently being squeezed by a new immigration policy, demanding a compulsory 110 dollar fee at the Murtala Muhammed International Airport (MMIA) which has caught many travellers unawares.

POLL RESULTS: In Ekiti, Olusola takes early lead over Fayemi - NOIPolls

The Poll question: What is the permanent solutions to the herdsmen’s killings in Jos over the weekend? #BDPolls 63% of Nigerians chose restructuring, 22% chose the Nigerian Army, 11% chose the police and 4% chose to quote and give answers. Visit our twitter handle @businessdayng to view the diverse answers.

Kolapo Olusola (ELEKO), candidate of the People’s Democratic Party and chosen successor of Governor Ayodele Fayose, has taken an early lead of Kayode Fayemi in poll of registered voters for next month’s gubernatorial election in the state according to a poll by NOIPolls.

Atiku may pick Peter Obi as running mate for PDP ticket

Write us with your opinion at digital@ businessdayonline.com to let us know what your preference is.

Poll of the week

Former Vice president, Atiku Abubakar may be set to pick ex-Governor of Anambra state, Peter Obi as his running mate ahead of the 2019 presidential election sources close to the Turaki of Adamawa revealed to BusinessDay.

Every minute 6 Nigerians enter extreme poverty: here’s why Nigeria received yet another blow as

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NEWS YOU CAN TRUST I FRIDAY 29 JUNE 2018

Opinion Global megatrends: How prepared are we? (part 2)

oday we conclude what we began with last week on the theme of global megatrends and how prepared or otherwise we are. Another observable megatrend is deepening interconnectedness. It has become a virtual cliché to say that our world has become a “global village” - global neighbourhood. The rise of Donald Trump has witnessed an American retreat from global neo-liberalism and globalisation. It is a great irony because the United States has been the driver of the new wave of globalisation that we have experienced since the 1944 Bretton Woods conference and the ensuing post-war international economic order. The revocation of the Atlantic Trade Agreement with Asia and Europe and the Brexit misadventure mark a retreat from globalisation and regionalism. But we believe that the forces of globalisation will survive. This is because global capital will always need access to bigger markets and global finance will always be attracted to areas outside its borders that bring the highest returns on investments. The reality of our interconnected world has its good as well as negative fallouts. Global interconnectedness brings different human communities closer together while opening up opportunities for new ideas as well as new networks and

opportunities. It will hasten the further reduction of trade barriers while encouraging increasingly sophisticated cross-border investment instruments. But it also portends risks. Nations that fail to realign their national systems to hook on to networks of economic opportunity will regress while the life-chances of their people will diminish. In addition, financial and banking contagion effects will become more difficult to contain in future. Radical terrorists, for example, can recruit followers using social media and other forms of electronic communications. Policing borders, patrolling cyber criminals and keeping out radical extremist ideas will become a nightmare for national regulators and governments alike. Poverty is forecast to decrease, although inequalities are likely to become even more pronounced as individual talent is increasingly rewarded. There will be fierce competition for workers with high skills and competencies. Fortunately, gender inequality is also expected to reduce, as more and more women assert their rights and enlightened governments put in place progressive legislation in terms of gender equity. Individual choice will also be enhanced. As individuals assert more rights, traditional communities and mainstream centres of power will come

increasingly under pressure. What these changes will also promise is more choice for “prosumers” in terms of lifestyles, entertainment and consumption. The primacy of the individual in our mass consumer society will become even more pronounced in the years ahead. Another megatrend that cannot easily be ignored is the rising global public debt. The average net ratio of public debt to GDP of the advanced industrial economies currently stands at 78 percent. By 2030 it is forecast to be 95 percent. Some conjectures project a rise to 213 percent for the USA and a whopping 386 percent for Japan by 2035. This trend is complicated by demographics. Meeting the health and social security needs of aging pensioners will require an average spending of 4.4 percent of the total incomes of developed countries. Africa will be on a comparatively better footing because its youthful population and the fact that its overall public debt figures are lower than the global average. But countries such as Nigeria will have to be more circumspect. Indeed, the IMF has already warned that our debt profile of N22.7 trillion is already heading towards the danger zone. The intermixture of debt and public pensions will mean that the fiscal space to manoeuvre for developed economies will reduce. The future of

HumanAngle FEMI OLUGBILE Physician, psycho-profiler and essayist

he other day, Nigerian writer and feminist Chimamanda Ngozi Adichie was in conversation with South African celebrity comic and talk show host Trevor Noah on his program‘The Daily Show’.‘The Daily Show’ is watched by millions of people across America, as well as several countries of the world, including Nigeria. Trevor always makes it fun, with his risqué jokes. He has a thing about the President of the USA, Mr. Donald Trump. He dislikes his guts, and never misses any opportunity to take him down. He has been on his back since his days as Candidate Trump, when thesmart word out there was that the man was a joke. Trump proved no joke – he went on to become President. Trevor, unmindful, has continued to pillory him. Every episode of ‘Daily Show’ starts and ends with a Trump joke. The guests are usually at the witty best. The studio audience has a great laugh, everybody has a good time – except,

the dollar as a world reserve currency may increasingly be imperilled. China alone holds over US$2 trillion of American treasury bills. For now, it seems to be in their mutual interest not to rock the boat. But if Donald Trump throws up enough tantrums to trigger a trade war between China and the United States it could force China to make a call on her investments, thereby triggering forces that could undermine the global economic and financial equilibrium. At current trends, Nigeria’s total debt outlay could mushroom in excess of US100 billion. That would totally be unsustainable. In 2005, our external debt had reached some US$36 billion. Financial profligacy had thrown us into a situation that amounted to debt peonage. The government was paying an average of US$5 billion on servicing the interest payable alone. The Olusegun Obasanjo administration entered into negotiation with the Paris Club which resulted in a settlement that enabled the country to get a new lease of life from its decades-long debt peonage. Unfortunately, it seems history is repeating itself. I believe that if we must borrow at all, it must be for infrastructure projects that guarantee a full return on investments. We also need greater discipline in our public finance and expenditure systems. Going forward, developed countries will need to drasti-

cally rationalise their social security systems to ensure a healthier balance sheet for their public finances. There is need for a new generation of leaders in both advanced and developing countries who have a better understanding of public finance and will help design fiscal and budgeting systems that ensure more prudent spending, cutting down on profligacy and pay sensitivity to intergenerational imperatives in fiscal policy. One of the megatrends that will define our future is economic power shift. Our twentieth century, as Walter Lippmann described it, was “the American Century”.American generosity through the Marshall Plan enabled Europe and some part of Asia to rise, Phoenix-like, from the ashes of war. American leadership was central to the construction of the post-war Bretton Woods international economic order. At its best, America has stood as a beacon of hope for a rulesbased international system and in the fight against poverty and disease. But unfortunately, also, the country has sometimes represented the forces of reaction and regression. Following the fall of the Berlin War in 1989 and the subsequent disintegration of the Soviet Empire, the United States emerged as the only superpower in what has essentially become a unipolar world. Ironically, the Cold

is a mouthful. ‘Dear Ijeawele, or a Feminist Manifesto in Fifteen Suggestions’ The bold unconventionality of the title is vintage Chimamanda, with an in-your-face use of the long Ibo name. Many black people in the Western world have felt com-

meaning at all. Deliberately, Chimamanda employs African names in her literature in authentic form, not caring whose ox is gored by the difficulty in pronouncing them. Stiff upper-lipped professors of Literature-in-Englishin Ivy League institutions are compelled to learn to pronounce Ibo names that are tough assignments even for fellow Nigerians. The book in focus is a letter to her friend, who has asked her advice on how to bring up her daughter to ensure she is a feminist, and, yes, her friend’s name is truly ‘Ijeawele’, as she explains to Trevor. She is in a white, closefitting dress that has square patterns cut in both sleeves. The dress shows off her beautiful well-rounded African figure, and as she perches on the chair, she flashes a sparkling white smile at her host across the table. Unfortunately, even the above favourable, and true, description, has already run foul of the feminist credo, of which Chimamanda is now a recognized world leader. By describing her figure, and her dress, and her smile, the writer is guilty of ‘objectifying’ the lady, and so diminishing her, or so the narrative goes. The clincher, in advancing their line of argument is the question they ask you - ‘Would you describe a man in the

The Chimamanda interview perhaps, Mr Donald Trump. An ever-increasing audience worldwide testifies to the popular appeal of our boy Trevor and his show. C h i m a m a n d a i s, o f course, that exciting Nigerian writer who has been making great waves in literary circles. She has soared to lofty

heights, becoming one of the most recognizable brands in world literature. Her name itself – Chimamanda, has a certain ring to it that is like no other. Only the other day, she addressed the graduating class at Harvard, the ultimate mark of cachet for the intelligentsia. But much of her most recent wavemaking has been - not on account of her literature, but because of her avowed feminism. Indeed, the book that is the ostensible reason for her appearance on Trevor’s show on this day is a slim volume with a title that

The clincher, in advancing their line of argument is the question they ask you - ‘Would you describe a man in the same way? pelled, sometimes unbidden, to ‘shorten’ or modify their names to suit the conventions, convenience, or – perhaps most aptly, the linguistic limitations of the Western tongue. African names have become so distorted that they have been lost in the translation. Unfortunately, such ‘nonsense’ names are then copied naively by African Americans seeking to be ‘authentic’. A ‘brother’ proudly flaunts an ‘African’ name that has been disconnected from its roots and left with no

THE NEW WEALTH OF NATIONS

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

War and the so-called “balance of terror” between East and West was a guarantor of the international equilibrium. Unilateralism, by contrast, has led to the emergence of a less stable international order. Napoleon Bonaparte long ago wisely counselled that we should let China sleep, because, when she wakes up, “the earth will tremble”.The rise of China is one of the defining features of our new twentyContinues on page 33

same way?’ Often in such situations, the person who does not wish to incur the full wrath of the Wakanda Warriors of feminism is apt to beat a hasty retreat, for fear of that crime which is accepted in intellectual circles as being fully deserving of capital punishment – misogyny. Chimamanda’s conversation with Trevor Noah flows smoothly. He likes her, and she likes him. ‘I read in your book about your mother…It’s clear that you inherited your best traits from her…’ she tells him, flashing her wide and very white smile. Trevor, never to be caught out, concedes that she is ceding ownership of the bad parts of his character to be shared between him and his father. Chimamanda’s definition of ‘feminist’ is not a female who fights for female rights but everybody, male and female, who accepts the total equality of human beings, whatever their gender. She cites Barak Obama as role model. ‘When we are released from gender roles, everybody is better for it…’ Chimamanda says. She is declaring it as a truism. It is the bedrock of her feminist world view. But in the eyes of many, and certainly in the world view of many highContinues on page 33

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

WOMENâ&#x20AC;&#x2122;S HUB Friday 29 June 2018

BUSINESS DAY

Ex Speaker encourages women to leverage on new law Teaching in Makoko, what an experience Setting goals for that summer body

TOLA AJAYI

The fertility tutor bringing hope to families in need

EDITOR’S NOTE

t’s the last Friday in the month of June and we are thrilled to bring you another edition of WOMEN’S HUB. Our cover personality and Leading Woman for this week is Tola Ajayi. Her passion for giving hope to couples challenged with having children is indeed commendable. There is more to Tola, find out in our interview with her. An Ex Speaker shares with Desmond on how women need to step up and participate in politics. For WARIF, it is about enlightening the boys to be better men in future, training and nurturing them to be better in life and protective of girls. We bring you details of our interaction with their team during their recent press briefing. Somtochukwu has some tips for those who intend to be fit for summer. His advice will be worth your time. These and more we have for you this week. Enjoy!

KEMI AJUMOBI kemi@businessdayonline.com

Graphics by David Ogar

BUSINESS DAY

WOMEN’S HUB

Friday 29 June 2018

ola Ajayi is Nigeria’s leading voice in sex and relationship management, a foremost trained Fertility, Sex and Relationship coach. She is the Clinic Manager at Nordica Fertility Centre Lagos, one of the leading IVF Centres in Nigeria. The centre is affiliated with Nordica, Denmark. Since its inception in 2003, the centre has expanded into three major cities in Nigeria; providing a range of assisted reproduction services across the nation. Ajayi has had over 40 years’ experience in clinical services in both public and private establishments. She has received training in outstanding institutions such as the prestigious Harvard University, Mind, Body Medicine College and WPF Therapy in conjunction with University of Roehampton UK in Counselling and Psychotherapy. She is a member of the Endometriosis Support Group (EDSG), Fertility Treatment Support Foundation (FTFS) and Fertility Awareness Advocacy Initiative (FAAI). Tola Ajayi is always committed towards managing the emotions of people, helping them come to terms with their situation with a view to making informed decisions that potentially benefits all concerned. She has remained committed to end the silence about Endometriosis for over a decade under the auspices of the ESGN, which is in the fore-front of raising awareness about the condition and providing support to these women challenged by Endometriosis. This has been done by annual awareness walks in Lagos, Abuja FCT and several fora for discussions and paper presentation. Quite recently, Tola Ajayi along with the trustees of the ESGN were honoured by Her Excellency, Wife of the Vice President of the Federal Republic of Nigeria, Oludolapo Osinbajo, Wives of State Governors of Lagos, Ogun, Oyo, and Kwara States, Global Ambassador of Endometriosis and Partner to ESGN, Nike Oshinowo, and many captains of industries, media practitioners, to discuss further steps in charting the path to discovering the root cause, creating enabling environment for diagnosis, treatment and management of Endometriosis, a laudable feat in the battle against a scourge that affects over 170 million women worldwide. Tola Ajayi, is happily married with 4 children and recently a grandmother. She is passionate about women and families in general in the all-important struggle to overcome the challenges of daily living in an ever dynamic society. Early Years Growing up was fun in a large family of 30 children under the same roof. It has helped me to understand people and appreciate each person for who they are. Why the interest in fertility, sex and relationship? Working in a fertility clinic for the past 11years made me see the need for support in marriages with infertility challenges. Sex is usually a major problem and of course relationship is affected. Fertility challenged couples need support In the African context, Nigeria in focus, there is the misconception that anytime a couple is challenged with having children, it is blamed on the woman. Kindly explain how this is not necessarily the case. In our culture, men are not infertile which of course is a myth. It is unfortunate that the blame is always on women but that is changing now as we know that infertility in men is the same percentage with women. Men are coming to terms with this reality now. What are the major causes of infertility and how is Nordica helping with this? There are different causes of infertility which can

TOLA AJAYI “ the fertility tutor bringing hope to families in need KEMI AJUMOBI

come from the man or woman. Some factors in women could be blocked tubes, hormonal imbalance, Endometriosis and so on. Some factors in men could be low sperm count or no sperm at all, hormonal imbalance and so on. Nordica has been educating the public on the need to know about fertility challenges and of course what to do about it. Nordica offers treatment and support for infertility management. With over 40 years’ experience as Head of Clinical Services in both public and private establishments, what has your experience been so far? What are your observations? What are your proffered solutions? My experience in both public and private establishments for over 40 years has been inspiring. The most important thing I will like to emphasise is for people to get educated on their health challenges and seek treatment at the appropriate facilities not approaching unauthorised places for treatment. Ignorance is a major issue in this country.

What advice do you have for couples challenged with childbearing? My advice is for couples to seek help early. One year of regular and unprotected sex with no pregnancy, the couple must seek help. Share on your passion for Endometriosis, your involvement and why? Endometriosis is a disease that it is commonly misdiagnosed. It affects the quality of life because of constant debilitating pain that makes life unbearable for the sufferer and it is also a major cause of infertility. We have been creating awareness for Endometriosis for about 13 years now and it’s getting better but we are not there yet. Hopefully, the government will look into this direction and help us to create more awareness. 30years in marriage, what is the secret to a successful marriage? Marriage is give and take. Love is not enough to sustain a marriage, friendship is what is needed. Communication and trust are two main ingredients of marriage. The hype of In-

stagram marriage is not the real thing. My advice to couples is to marry for the right reasons. A lot of marriages today are for wrong reasons. What will you like to see change in the healthcare system of Nigeria? Health insurance should be made available for people for better access to healthcare. Also, I will like the government to improve on facilities to improve health care. How have you been able to look this great and stay this stunning even as a grandmother? It is just the grace of God. But recently, I’ve started focusing on my diet and exercise. I also believe in staying positive no matter the challenges around me. How affordable is IVF? How is Nordica assisting those who intend to be part of the program but do not have the funds? IVF is not cheap anywhere in the world. Nordica is in partnership with Fertility Treatment Support Foundation (FTSF) in giving free treatment to people who cannot afford it. What are the chances of having children with IVF? A lot of children have been born through IVF. 1st IVF baby in the world will be 40 this year. Nordica has over 2000 babies and still counting. Our 1st baby will be 14 this year. So, the only obstacle to not having a baby from IVF if that is what you need, is you by not taking the bold step. Final words Like I always say, it is not over until it’s over. Don’t give up, your next attempt might just be the success you need. Also, I will like let you all know that people who are fertility challenged need support.

BUSINESS DAY

WOMEN’S HUB

Friday 29 June 2018

Ex speaker encourages women to leverage on new law

people financially. Many believe there is a high level of political apathy among the women which probably has led to the imbalance in gender representation. How can this be addressed to help groom young women for the next political revolution? There is no much grooming involved. Let them just ensure they get themselves involved with the people in their local governments right from their wards. Let all of them be involved in order to understand the system. They also need to have the interest of the people at heart. They need to know the dos and don’ts of the political sphere. They need to know what it is to be in charge of the people. Inasmuch as they look up to those in our political offices today, they should always see the good sides, not the negative sides. When they notice that such a person is not too good, they should think of other ways of doing things that will be for the interest and love of the people they want to govern.

Many youths in Nigeria have been declaring their interest in contesting for elective offices since some of the cumbersome and discriminatory provisions of the constitution have been relaxed in their favour through the passing into law of the NotToo-Young-To-Run bill. In this interview, ADETOUN, ADEDIRAN, a former Deputy Speaker, Lagos State House of Assembly, spoke with DESMOND OKON on how young women can take advantage of the new law.

hat is the implication of this for young women interested in politics? This means that those that have not been opportuned can now see themselves as eligible to stand in, provided they have the entire wherewithal to put up a stand. If they have what it takes to really ensure that they lead the people rightly, and they don’t allow any thuggery or unnecessary negative acts control them. With this bill, there is no nay saying that “I’m young, I’m not fit to be there, that’s why I need to go on with what I just do and follow suit”, this is now for the young ones with the right mind. Those ones that believe in themselves, that believe they can set the table

straight. This is the time for them to really come out. Let them showcase themselves positively, and let whatever they have in them be seen and be accepted by the people. What would you say are the barriers to female participation in politics? First, thuggery. Secondly, the issue of finances, then our background. As the female politician, people believe that when a young woman or a married woman gets involved

in politics, she’d probably begin to ‘sell’ her body, but it’s not like that. Everything depends on who you are. Gone are the days when we believe so much in thuggery or not being involved if you don’t have money. Show the people what you’re made of. There are people that will say “we believe in her”. It all depends on your past activities in your local government, your ward and within the people around you. These are the people that can promote you.

What can be done to promote gender balance in politics? First and foremost, we need to support ourselves. By supporting ourselves is not that because she is a female member then we just have to give her our support, No. We need to know her background, we need to know that she can really stand it, we need to know that her moral standing is okay, and we need to ensure that anywhere she is, she thinks about the people, and she needs the support of the

DESMOND OKON

non-governmental organisation, Women at Risk International Foundation, WARIF, in its effort to create a society free off sexual violence, recently launched the WARIF Boys’ Conversation Café, BCC, initiative which aims to change attitude of and the existing mindset of young boys about rape and sexual violence. This challenges the norm of heaping attention on young girls and women as the victims, while at the same time, neglecting the boys who are often the perpetrators. This means that boys can equally get adequate knowledge on how to avoid being both victims and perpetrators. Hence, the BCC intends to equip adolescents within the ages of 12 and 18 in secondary schools with the right knowledge (through education) and the tools (specifically empowerment) that will assist in the prevention of gender based violence, as well as help them grow to become the true protectors they are meant to be. “We quickly realized that a lot of emphasis is placed on protecting the girls, educating the girl, and expecting the girl to make the necessary changes to protect herself against the act of rape and violence, but there is nothing being done with the

WARIF launches Conversation Café to fight rape, sexual violence boys in educating them against raping and telling them to be the protector of ladies and not to be the perpetrator. So we decided that we would start by engaging the adolescent group, the boys between the ages of 13 and 18. And this was how the Boys Conversation Café was born,” Kemi Da’Silva Ibru, Founder, WARIF said. The implementation of the

first session of the Boys Conversation Café sponsored by Diamond Bank PLC during the second quarter of 2018 at Surulere Senior Secondary School, had significant results. At the end of first session, 98 percent of the beneficiaries strongly agreed to take a stand in any case of sexual abuse rather than just be bystanders. 85 percent of the boys strongly agreed that consent of a girl to

have sex is important and should be respected. “We have been able to caution and change their mindset on inappropriate behaviour. Based on the data, you could see that there was significant drop in activities such as drug and alcohol use, clubbing, in their attitudes towards what they believe as consent, in whether or not the mode of dress of a girl should impact on

What new challenge does the law bring? The challenge is that so many youths will want to aspire. Most of them will want to get to the upper most part thinking it’s the juicy part, not wanting to start from the scratch. They need to move around the people and be involved in their activities because these are the people that will vote them in. They should mix with the electorates in their immediate environments. They should start from somewhere, and avoid thinking unnecessarily high.

her being raped by a boy/man. The impact is huge and we are already changing the mindset and behavioural patterns of these young boys,” said Ibru, while commenting on the success of the BCC initiative. Expressing her views about the Boys’ Conversation Café, Lola Vivour Adeniyi, Coordinator of Domestic and Sexual Violence Response Team Lagos, DSVRT, said “We put a lot of awareness on girls and how we can protect them, teaching them how to be safe, and how they can protect themselves from sexual abuse. But we usually leave the boys behind, which should not be the case, as statistics have shown that it is mostly boys who grow to be perpetrators of abuse, and they also get sexually abused too.” “We are excited about the WARIF Boys’ Conversation Café, and we will be partnering with WARIF to cascade these café conversations across the 6 education districts in Lagos,” Adeniyi adds. In order to ensure sustainability in the transfer of knowledge, and to ensure students keep to the right moral standards, the Vice principal of Surulere Senior Secondary School, Adekoya Esther Oluwafunmilayo said that a platform called Train-the-Trainer has been set up so that the boys who have been trained and educated through the BCC, can continue to train other boys in the school and share the knowledge that they receive.

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BUSINESS DAY

Friday 29 June 2018

Setting goals for that summer body SOMTOCHUKWU EPUM

eople endlessly try to lose weight, get healthy, build a body that they would be proud of or even get better at sports but most of the time; they fail to set realistic goals. Setting goals sound pretty easy, but when it comes down to it setting the goal that will suit you, it is harder than we often think. Again and again, we set goals and they remain there, hanging over our heads, a constant reminder that we have not achieved them. Rather than working towards those goals, or setting more suitable ones, we end up reprimanding ourselves for not achieving our first goals. We often times like to think of a certain size we want to attend or a number on the scale we want to shed weight and get to, but that is not always the best approach because this could leave us frustrated when we eventually fail. The number on the scale is not and can never tell the entire story and anyone who has lost weight before knows that the process is not always linear. Weight fluctuates from day to day and hour to hour. If one really wants to get results, one must set goals that actually work. In any aspect of life, setting goals is necessary to achieve success. Dr Edwin Locke in the 1960s uncovered that employees were much more prone to be productive and motivated when they were given a clear objective. Goal setting aids a person’s need to achieve, and this fitness ambitions are no exceptions.

The Craft of Smart Anyone who has impact on any kind of goal setting probably came across the acronym smart goals. It teaches how to set actionable goals. The term SMART goals stands for; Specific Measurable Achievable Relevant Time-bound. If the goal lacks specificity, it is difficult to keep exercising and to track your progress. For example “lose weight” is way too unclear. “Loose 50 Ibs in seven months” offers much more direction and allows a way to measure progress. Similarly, if a goal is out of reach, for instance, getting back to a shape and size from 20 years ago, giving up is almost unavoidable if there’s nothing to keep motivation alive. Be Specific The weight loss/ fitness goal should be clear and specific, otherwise focus might be lost and this could bring a feeling of inadequacy because there will be a lack of motivation to achieve the goal. I drafting the goals, try to answer the 5 ‘W’ questions. * What do I want to accomplish? That is, the place you want to be after the attainment of that

WOMEN’S HUB

exercise goal. * Why is this goal important? Is it because I feel fat? Objectives must be clear. A very valid reason you should be given before embarking on certain weight loss goals. Decide why you are doing it. * Who is involved? People like family, friends, doctors, personal trainer, nutritionist, e.t.c. should be put into the process of setting weight loss goals. Personal trainers, for example, could be able to tell u that losing 20 pounds in a month is unrealistic but losing the same 20 pounds in 5 months is not. * Where is it located? Determine where you want to exercise. Consider joining a class to give an aspect of accountability that is not present if you exercise alone. * When do you exercise? When setting goals for fitness and exercise, it is important to consider when it will fit into your life. Measure to Stay Motivated It is important and essential to have measurable goals, so as to track progress and stay motivated. This is to ensure that progress is assessed and help increase focus and meet deadlines sit in the goal. This could help give a feeling of excitement for getting closer to achieving set goals. Aim for the Achievable Achieving weight loss goals is difficult if the goals are unrealistic and unattainable. This reduces the chances of success. When setting fitness goals, make sure they can stretch you to the limit of your abilities but still remain possible. When a set goal is achievable, you may be able to identify previously overlooked opportunities or resources that can bring you closer to it. Ensure Relevance This step is about making sure that your goal matters to you, and that it also aligns with other relevant goals. Support and assistance is needed in achieving our goals, but it is important to retain control over them. Talk Time-bound It is necessary for every goal to have a target date. This is to enable you have a deadline to focus on and something to work towards. This part of SMART goals helps prevent everyday tasks from taking priority over your longer term goals. Setting goals is all well and good but there are many other things involved with losing weight such things as the kind of workouts you should do. It is also important to note that the closer you get to your goal, the harder it is to reach. And the weight you want to achieve is not always the weight you can maintain. The best thing a beginner can do when starting an exercise program is to focus on the healthy behaviours coupled with the SMART goals. With this, weight-loss will not be a far stretch.

Women In Focus PATIENCE AKYIANU

REBECCA ENONCHONG

Managing Director, Barclays Bank Ghana Limited

Founder/CEO of AppsTech

ebecca Enonchong is founder and CEO of AppsTech, a leading global provider of enterprise application solutions. With offices on three continents, AppsTech counts clients in the private and public sector across the globe and works in more than 50 countries. A recipient of Enterprise Africa’s 2001 African Entrepreneurship Award, Rebecca Enonchong was also named a Global Leader for Tomorrow (GLT) in 2002 by the World Economic Forum of Davos, (Switzerland) as part of the annual award that recognizes outstanding leaders around the world. She served on the UN ICT Task Force and the UNIFEM (part of UN Women) Global Advisory Committee on the Digital Divide. Moreover, she founded and chaired the Africa Technology Forum, a non-profit organization promoting technology development in Africa. In 2003, the US State of Pennsylvania honored Rebecca

Enonchong and the rest of the AppsTech management team with the prestigious Benjamin Franklin award for SMEs. She is co-founder and board member of ActivSpaces (African Center for Technology Innovation and Ventures). She also sits on the board of Venture Capital for Africa (VC4Africa), the largest online community dedicated to entrepreneurs and investors building companies in Africa. Since 2002, she is a member of the board of directors for the Salesforce.com Foundation, one of the most award winning social enterprise of the USA and serves since 2013 on the UK Department for International Development’s Digital Advisory Panel. In order to support young entrepreneurs, she is currently a mentor and an advisor to several Africa based technology start-ups.

ppointed as Managing Director of Barclays Bank Ghana in November 2013, Patience Akyianu joined Barclays as Finance Director in November 2008 and became a member of the Board in March 2010. Prior to joining Barclays, she was the Chief Financial Officer (CFO) of Standard Chartered Bank, South Africa and was based in Johannesburg. She had previously worked in Standard Chartered Bank, Ghana in senior roles in both Finance and Corporate Banking departments. She has over 20 years in-depth experience in Finance, Accounting, Audit and Credit. Patience has a track record of excellence in regulatory reporting, Basel II implementation, establishing strong financial controls and general ledger cleanups. Her robust focus on execution and excellent implementation skills have resulted in satisfactory audits and a legacy of sound financial discipline throughout her entire career. Under her watch, Barclays Bank Ghana Limited was named Best Bank in Ghana – Eur-

omoney 2014 Excellence Awards, Best Domestic Cash Management House in Ghana – Euromoney Cash Management Survey 2014 and Best Investment Bank in Ghana – EMEAFinance Africa Banking Awards 2014. She was also featured by Euromoney in the May 2014 edition as one of Africa’s top Rising Stars. Patience is a certified professional accountant and a member of the Institute of Chartered Accountants, Ghana. She is also a member of the Barclays Africa Regional Management Executive Committee and the Diversity & Inclusion Council as well as the sponsor of the Women Network Forum in Barclays Ghana. Patience is married to Kwame Akyianu, a lawyer and they have two children, Awurama and Nana Banyin.”