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Nigeria, Saudi Arabia advance talks on stabilisation of global crude prices Collaborate to revamp Nigeria’s refineries N M

Nigeria economy to grow slightly below 2% in 2018 – World Bank ... says country’s poor investment in human capital of concern

HARRISON EDEH, Abuja

ONYINYE NWACHUKWU, Abuja

inister of petroleum, industry and mineral resources of the Kingdom of Saudi Arabia, Khalid Al-Falih, Wednesday held talks with the Federal Government as parts of efforts to bring about stability in the crude oil price and in the

igeria’s economy is projected to grow slightly below 2 percent in 2018, largely driven by non-oil industry and services, according to the World Bank Nigeria’s bi-annual Economic Update released on Wednesday. Titled Investing in Human Capital for Nigeria’s Future, the World Bank, in the report raised concerns that, Nigeria, like many other countries, has underinvested in human capital and remains very low compared to other countries. The World Bank also notes that Nigeria’s emergence from recession remains sluggish, and sectoral growth patterns are unstable. In the second quarter of 2018, the oil sector contracted by 4 percent, the usually-resilient agricultural growth slowed significantly to 1.2 percent as well,

international crude oil market. Speaking at a visit to Ibe Kachikwu, minister of state for petroleum resources, in Abuja, Al-Falih said Saudi Arabia was in consultation with Nigeria and a host of other countries to address the volatility in the global

crude oil market. Al-Falih said the discussions with Nigeria was geared towards ensuring all petroleum producing countries present a common front in the forthcoming meeting of members of the Organisation of Petroleum Exporting Coun-

tries (OPEC), scheduled to hold in Vienna next month. He said, “We are going through a period of volatility. In the last few weeks, we have seen oil market go through great vola-

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Inside L-R: Adesola Adeduntan, managing director, First Bank of Nigeria Limited and subsidiaries; Ibukun Awosika, chairman, First Bank of Nigeria Limited; Arunma Oteh, vice-president/treasurer, World Bank; Nimi Akinkugbe, CEO, Bestman Games, and Francis Shobo, deputy managing director, First Bank of Nigeria Limited, at the second anniversary of FirstGem, the FirstBank product designed to promote female entrepreneurship and independence, in Lagos.

FG slashes cost of JAMB, NECO exam fees in response to parents’ P. 2 outcry

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Elections impact on prime office market activity negligible ... as 40,000sqm space supply expected in 12 months CHUKA UROKO

T L-R: Oye Hassan-Odukale, chairman, Lagos State Security Trust Fund (LSSTF); Akinwunmi Ambode, governor, Lagos State; Idiat Oluranti Adebule, deputy governor, and Abdurrazaq Balogun, executive secretary/CEO, LSSTF, at the 12th annual town hall meeting on securities with the governor, with the theme ‘Security in Lagos State: Progress and Challenges’ in Lagos, yesterday. Pic by Olawale Amoo

FG slashes cost of JAMB, NECO exam fees in response to parents’ outcry ... Approves N14.7bn for ECOWAS Biometric Cards ... Continues negotiation with ASUU on Friday ONYINYE NWACHUKWU, Abuja & Faminu Gbemi, Lagos

he Federal Government on Wednesday slashed the cost of the Joint Admission and Matriculation Board, JAMB and National Examination Council, NECO, registration and examination fees. Applicants will now pay N3, 500 as JAMB examination fees against the previous N5, 000; N9, 850 for Senior Secondary Certificate examination SSCE, which is handled by NECO

from the current N11, 350 being paid and N4,000 instead of N5, 500 for Basic Education Certificate which is also handled by NECO. The Minister of Education, Adamu Adamu announced the cut after the weekly Federal Executive Council (FEC), meeting presided over by the Vice President, Yemi Osinbajo at the Council Chamber, Presidential Villa, Abuja. Following JAMB’s announcement that it remitted N7.8 billion to the federal government as proceeds from sales of Unified Tertiary Examinations (UTME) application forms in 2017, the

House of Representatives resolution in May urged the Federal Ministry of Education to slash the cost of JAMB application forms, accusing the institution of gradually becoming a “revenue generating agency.” Adamu, while briefing State House correspondents said that the reduction was approved by the FEC after presenting the memo council members on the reduction of fees for JAMB, SSCE and BECE, explaining that the reduction followed the pleas from parents. He said, “Since the new administration came into office

and a change in management and prudent management by JAMB, we have been able to see that most of what have been charged doesn’t have to be because a lot of it have been siphoned by corrupt officials. “So, in answer to yearnings by parents, the President directed that we should look into the possibility of reducing the charges. On the ongoing strike by university teachers under the umbrella of Academic Staff Union of Universities, ASUU, Adamu said that the Federal Government would resume

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Senate probes N177bn NPA operating surplus OWEDE AGBAJILEKE, Abuja

he Senate has mandated its Committee on Marine Transport to investigate the alleged N177 billion operating surplus of the Nigeria Ports Authority (NPA). This was sequel to a motion moved by Mohammed Hassan (PDP, Yobe State) at plenary on Wednesday. Relying on Order 42 of the Senate Standing Order 2015 (as amended), the lawmaker told his colleagues that the Nigerian Ports Authority reported a gross revenue of N303 billion in 2017, out of which N177 billion operating surplus was unaccounted for. According to him, he made the discoveries when the Authority appeared before the Committee on Marine Transport during the 2018 statutory budget defence of NPA. Hassan who is also a member of the committee, wondered why the panel is yet to present its report, seven

months after the management of the agency appeared before the committee. He said: “You will recall that seven months ago, the budget of the NPA was presented to this Senate. And since then, the committee swung into action. And very serious observations were raised at the committee level. One of such was that NPA recorded a gross revenue of N303 billion. “Meanwhile, its expenditure for that year was N125 billion. Therefore, N177 billion operating surplus that was recorded by NPA. Not a single dime was reported to have been remitted either to the Consolidated Revenue Fund or to the General Reserve Fund. “We raised these fundamental observations to the management of the Nigerian Ports Authority and six months later, we have not heard anything from them. “So the question is: where is this N177 billion? Seven months after, we have not

heard from the committee, we have not heard from the Management (of NPA)”. In his defence, Chairman of the Committee, Ahmed Sani attributed the delay to harmonisation of the panel’s report with that of the House of Representatives. He also defended NPA’s action, citing Section 82 of the 1999 Constitution (as amended). The section which deals with ‘Authorisation of expenditure from Consolidated Revenue Fund’ provides that: “If the Appropriation Bill in respect of any financial year has not been passed into law by the beginning of the financial year, the President may authorise the withdrawal of moneys in the Consolidated Revenue Fund of the Federation for the purpose of meeting expenditure necessary to carry on the services of the Government of the Federation for a period not exceeding months or until the coming into operation of the Appropriate Act, whichever

is the earlier: “Provided that the withdrawal in respect of any such period shall not exceed the amount authorised to be withdrawn from the Consolidated Revenue Fund of the Federation under the provisions of the Appropriation Act passed by the National Assembly for the corresponding period in the immediately preceding financial year, being an amount proportionate to the total amount so authorised for the immediately preceding financial year”. In their separate contributions, Deputy Majority Leader, Bala Na’allah as well as Mao Ohuabunwa, submitted that the matter be referred to the committee, expressing surprise that the committee would wash its dirty linens at plenary. Ruling on the matter, Senate President Bukola Saraki who presided over the session, asked the Marine Transport Committee to look into the matter and report back in three days.

hough the residential segment of the property market is already feeling the upcoming general elections in Nigeria scheduled for February 2019, the elections are expected to have a fairly negligible impact on prime office market activity, a new report has said. The report insists that relative to the impact that the 2015 electoral process had on the market, 2019 elections will not be quite impactful, pointing out that private investment decisions are not necessarily conditioned on the time leading up to or the aftermath of the elections. This is amply reflected in the volume of supply which is anticipated to rise in the coming months. Expected prime-grade supply over the next six – 12 months is in excess of 40,000

square metres, comprising Cornerstone Tower (15,700 square metres), Kingsway Tower (14,800 square metres), Number One Lagos (11,200 square metres) and Waltersmith (6,000 square metres). But unlike this (office) segment of the market where market fundamentals, especially demand and supply, are anticipated to remain fairly stable with slight upticks in transactional activity, the residential market is already witnessing distressed sales which analysts say are not unconnected with the elections. “Expectation is that many new assets will be coming to the market from people who want to run for elective positions. By simple economics, when supply outstrips demand, especially in an environment where you don’t have liquidity,

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Investors pay higher for Nestle, International Breweries as growth outlook for consumer firms fade BALA AUGIE

nvestors are paying a higher premium multiples for Nestle Nigeria Plc and International Breweries Plc compared to peers even as growth outlook for consumer goods names fade on the back of a barely growing economy. Nestle and International Breweries are trading at price to earnings ratio (P/E) ratio of 30.80 and 32.20 times earnings, this compares with Dangote Sugar; (4.4), Guinness; (14.10), Flour Mills; (4.90), P Z; Cussons (10.10), UACN; (17.60), Unilever; (21.80), and Nigerian Breweries; (23.40). A higher valuation or P/E ratio means investors are willing to pay a higher share price today because of growth expecta-

tion in the future. It also means that they expects growth from the consumer goods names compared to overall market. The trend in the last two to three years may justify the high multiples. International Breweries full year 2016 and 2017 net income grew by 36.28 percent and 38.10 percent while it surged by 592.95 percent at nine months September 2018. Nestle Nigeria’s full year profit fell 66.61 percent in 2016, but it rose 85.23 percent and 35.41 percent in full year 2017 and third quarter of 2018. “Investors are attracted to Nestle because it is in the foods industry and it produces essential goods that have been

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6 BUSINESS DAY NEWS Nigeria’s pension market value rose 16.5% in September ENDURANCE OKAFOR

he Assets Under Management (AUM) or the total market value of Nigeria’s regulated pension industry increased by 16.5 percent in the 12 months to September 2018, figures from the National Pension Commission show. The amount rose to N8.35 trillion from about N7.17 trillion a year earlier, according to the commission. Pension funds’ assets are the assets bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits. The pension fund is a pool of assets forming an independent legal entity. Nigeria has the highest population in Africa, but had

7 percent as pension contribution to its GDP in 2017, according to BusinessDay survey. The survey shows that among six African countries Nigeria has the third-lowest pension-to-GDP ratio. Namibia with 91.7 percent topped the ranking, followed by South Africa, the region’s second-largest economy, with 75.1 percent, while Kenya came next with 13.9 percent. Ghana and Egypt rank in the bottom list of the pyramid with 3.8 percent and 1.7 percent, respectively. “We are running well behind many emerging markets. Nigeria was relatively slow (2004) with its legislation creating a sound structure for regulated pensions,” FBNQuest Capital said in its Daily Morning Note, Tuesday. Eguarekhide Longe, chief

executive of AIICO Pensions, believes that the Nigerian pension industry can do a lot more than it is doing currently, saying, “When you look at South Africa’s pension industry, you can see the intricate impact it is making on their economy, and that is where Nigeria should be going.” Another industry analyst also said the local pension industry can grow larger. “That is to say it can have more impact on the individual lives of the citizens, if more people are covered for pension,” the analyst said on the condition of anonymity. “The role of the PFAs in local debt markets remains pivotal. Their holdings of FGN bonds at end-September represented 48.5% of the stock of the instruments at end-June,” FBNQuest Capital said.

186 persons murdered in Lagos in 1 year … 43 suicide/attempted suicide cases recorded JOSHUA BASSEY

t least, 186 persons have been murdered in Lagos State, Nigeria’s commercial capital, in the last one year. The murder cases are in spite of huge investment by the state government in security, running into several billions of naira, including the purchase of helicopters, gunboats, patrol vehicles and power bikes in addition to cash donations by corporate organisations and high net-worth individuals. Official statistics made available to the public on Wednesday also noted that the state recorded 43 suicide and attempted suicide cases within the period under review - November 2017 to September 2018. Recalled that some attempted suicide cases have been averted on the Third Mainland Bridge, from where ‘frustrated’ citizens chose to jump into the lagoon to take their lives. Imohimi Edgal, the state commissioner of police, who reeled out the statistics at the 12th Lagos Town Hall meeting on security, organised by the Lagos State Security Trust Fund (LSSTF), said 290 armed robbers were arrested, with 15 shot dead during encounter with the police. According to Edgal, 233 robbery incidents were foiled by the police while 701 arms and ammunition were recovered, with nine kidnappers and 669 cultists arrested in various parts of the state. Meanwhile, the state governor, Akinwunmi Ambode, has challenged security agencies to take practical steps to be ahead of criminal elements and as well build on the successes recorded so far in making the state the safest in Nigeria. Ambode, at the meeting, said though the security agencies deserved commendations

for their efforts in securing the state, but more strategies and policies had to be adopted to outsmart hoodlums, especially during the yuletide season as well as in the period preceding the 2019 general elections. “As long as we want to go

out in the night, as long as we want to enjoy Christmas and have night out, these other guys (criminals) are thinking, so we have to be two steps ahead of them in terms of strategy and reforms we need to make.

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FG explains delay in executing Port Harcourt-Maiduguri Eastern rail line OWEDE AGBAJILEKE, Abuja

inister of transportation, Rotimi Amaechi, says bureaucratic bottleneck is responsible for the delay in executing the Port Harcourt-Maiduguri Eastern rail line project. Appearing before the Joint Senate Committee on Land Transport; Local and Foreign Loans on Tuesday, the minister attributed the delay in executing the project to the tedious procurement processes in the Public Procurement Act passed by the National Assembly. He also debunked insinuations that the Federal Government has abandoned its earlier plans to include the South East geopolitical zone in the Eastern rail lines captured in foreign loan obtained by President Muhammadu Buhari. The Senate had last week mandated its joint committee to summon the Minister on the alleged exclusion of Eastern rail line in the ongoing nationwide construction of railways, captured in the foreign loan rail project. But appearing before the committee, Amaechi explained that the Federal Government lacks the resources to build rail lines in every village, adding that the Port Harcourt to Maiduguri rail line is about $12 billion. He said: “The President insists on rule of law and the law passed by the National Assembly in terms of public procurement is very tedious and not easy to conclude, it takes a very long time. Similarly, the law passed by the National Assembly on the Bureau for Public Procurement is very tedious. We have met with both GE and the consortium handling the project for nearly two years. “Secondly, in that meeting we had in 2017, I reassured our people that they are not more Igbo than I. Let me make it clear, the country does not have the resources to do railway in every village. It is not possible. $2.7 billion is one trillion naira. “So, for the railway you want to do from Port Harcourt to Maiduguri is about $12billion and that is one year budget of Nigeria. Therefore every thing is done systematically, we can’t do all the projects at the same time. What we are doing is as we get the loan approved, we execute the project. Currently, we are following due process for the one of South East”.

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Lendable, FMO caution on data privacy, security in Nigeria’s financial sector MODESTUS ANAESORONYE

endable, the first debt platform designed for African non-bank lenders, in partnership with FMO, the Dutch Development Bank, has urged Nigerian business community to take data privacy and data security serious. The two organisations state this while hosting its latest event on data privacy and data security in Lagos as part of a series of workshops on Responsible Lending after adopting the Responsible Finance Forum’s Guidelines for Responsible Investing in

Digital Financial Inclusion. The first workshop, Data Privacy and Data Security for Alternative Lenders, took place in Nairobi, Kenya, on September 18, subsequent to the adoption of the guidelines. Lendable and FMO felt the need to translate these principles into actionable implementation steps for the company and other fintech companies, and launched this series of workshops in East and West Africa in response. This workshop was organised to educate alternative lenders, lawyers and experts in the financial industry on best practices for imple-

menting policy and practice lending business; and to share understanding of the responsible lending and regulatory reasons consumer protection is important, potential risks and global regulatory trends related to data privacy and security. Daniel Goldfarb, chief executive officer and co-founder of Lendable said, ‘If we can make sure that our lending partners are being responsible about how they find customers, how they lend and how they communicate with their customers, we will ultimately have less credit risk and better partners. At Lendable, we are passionate about

making African consumer and SME credit a competitive asset class. We build technology and financial products to bring finance to borrowers that deserve it. We are flexible and help financial institution grow.’ Yinka David-West, academic director and senior fellow, Information Systems, Lagos Business School, highlighting the importance of data protection, noted that, “In a country like Nigeria that is seeking to use data and technology, we have to educate early-stage companies on the right guidelines and practices for responsible management. It is important

that we secure our data in the most appropriate way to ensure that consumers’ data is protected from the point of collection through usage in order to prevent unwanted access.” Lendable is a technology-enabled deal platform, which invests in lending companies across East and West Africa. Lendable’s technology assesses alternative lender customer collections and payment histories, using payment patterns and secondary data to predict future payments and to automatically price and monitor financing facilities.

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comment Positive Growth with Babs

Babs Olugbemi Olugbemi FCCA, the Chief Responsibility Officer at Mentor as Leadership Limited and Founder, the Positive Growth Africa

ast week Thursday, I identified teachers as the major drivers of the sustainable development goals. The objectives of the SDGs are people-related and without the buy-in of the teachers, any outcome from the efforts toward the SDGs will not be sustained. Teachers are the custodians of society. No society attains modernization, development, industrialization and prosperity without a pool of good and dedicated teachers. Therefore, the offices setup to advance the SDGs at the federal, and the states’ levels must initiate programmes and collaborate with the relevant stakeholders in equipping our teachers and create an institutionalized environment for the teachers to beat their best for Nigeria. It is not uncommon to hear teachers saying they are trying their best teaching in difficult situations where students are distracted, where basic infrastructures are not available in the schools. I was once quoted while speaking to some teachers when I said: “no teacher has the right to give up on any student.” One of the participants wants me to explain why a teacher cannot give up on a student having tried all her best. My response was simple. Maybe you should refer the student to a special school or to teachers with specialized skills to handle his or her situation. I insisted no teacher has the right to give up

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Teachers and the sustainable development goals on any student in his or her care. The students in the care of the teachers are Nigeria’s sustainable development goals. They must, therefore, be prepared to achieve the objectives of the goals. The teaching techniques teachers adopt will determine if the students’ interest in learning will be activated or deactivated. With whole lots of distractions confronting the 21st-century learners, teachers must be crafted to get the attention of the students, reduce distractions from social media and achieve the learning objectives for the students. In the word of Ignacio Estrada “if a child cannot learn the way we teach, maybe we should teach the way they learn.” The learning objectives are the six core skills and by extension, the achievement and sustainability of the seventeen themes of the sustainable development goals. Therefore, learning is the rail tracks while the teachers are the train drivers in the journey to a better society as captioned in the SDGs objectives. For learning to take place, the teacher who wants to cause a change must devise a way to get the attention of the students despite the poor state of infrastructure and condition of service. This is what I titled the wisdom for teachers to be at their best in my book, the teachers’ fortress using the story of one of the influential teachers, Clem. Clem was a new teacher in the United Kingdom where the teaching standard is high. As a foreign teacher, he must be certified and this involves teaching in front of the examiners to assess his teaching techniques and communication skills. The students in this environment are known to claim they did not hear foreign teachers due to their intonation and accent. Most often the teachers might not pass the test for this reason. Clem knew he had to deal with this difficult situation if he is

‘

For teachers to make an impact, the teaching styles must take the uniqueness of the students into cognisance. Teachers must not send the duck to eagle’s school, otherwise the duck will be frustrated, and the teachers’ time wasted

’

to be certified. Clem devised a mean to tackling the opposition from the students just like wading off the distraction of the social media in this dispensation. At the start of the class, Clem asked the students to stand up, shake hands with their friends, and to raise up their hands. The students complied in the presence of the examiners without the knowledge of Clem’s intention. Then he said, “I am sure you can hear me clearly. There is no communication problem, and you can understand this topic if you listen and fix your mind on what I will be teaching you. At the end of the test, Clem passed and got certified by the examiners. Thanks to his exceptional wisdom. As teachers, we can only make an impact if our teaching techniques do not see the students as empty vessels. The 21st-century students are multi-tasking, adaptive and have the instinct for instant gratification. Teachers must, therefore, tap in to the existing resources in the students via collaborative teaching techniques that voraciously engage the

students’ emotional and mental faculties. For teachers to make an impact, the teaching styles must take the uniqueness of the students into cognisance. Teachers must not send the duck to eagle’s school, otherwise the duck will be frustrated, and the teachers’ time wasted. Teachers must understand the various learning styles of the learners and explore this in achieving the set learning and other developmental objectives. One of the ways to teach with impact is to have a predetermined learning objective for each class or lesson. The achievement of the six core skills of critical thinking and problem solving, collaboration and communication, creativity and imagination, citizenship, digital literacy and student leadership and personal development is necessary for survival in the 21st century as identified in my article last week. This is synonymous with the objective number two of the sustainable development goals. To achieve these skills also known as the Higher Order of Thinking Skills (HOTS) in students, the SDGs focused teacher must have adequate knowledge of the learning pyramid and the average retention ratio of each of the teaching styles, and act in alignment with the students’ expectations and styles of learning. An SDGs oriented teacher must have knowledge of the expected outcome of the sustainable development goals and devise the appropriate teaching style suitable to the intended learning outcome. For example, you cannot use lecture style effectively where the learning objective is to encourage teamwork and impart critical thinking and problem-solving skills in the students. The learning outcome will determine the choice among the lecture, coach, activity, group and hybrid styles of teaching. The average retention ratio for each of the styles is different and must be considered in line with the

targeted learning outcome. I admonish you as the teacher to take ownership of your students and their learning with a focus on the SDGs. This is a requirement if your teachings are for impact and relevance to the future. You must teach for tomorrow. To ensure you achieve the learning outcome in each of your students, see them as athletes going to the Olympics and you as the coach preparing them for the gold medals. This mindset will enable you to pause, stop, test understanding and the application of what you are teaching. The teaching style of yester-years where teachers are the sage on the stage cannot be used in today’s world. Conclusively, for your teaching to be of maximum impact, your classroom engagement must be productive. I have defined effective classroom practice as the product of the teachers, students’ engagement and motivation. The classroom must be seen as and is the incubation room where leaders are made and where learning is in two ways: teachers to the students and students to the teachers. For teaching to cause a change in this age and century, teachers must apply wisdom to conquer difficult situations like Clem did. They must achieve the six core skills as stated, inculcate Higher Order of Thinking Skills (HOTS) in the students and prepare the students for all the seventeen themes of the sustainable development goals. With this, Nigeria and Africa will be on the right pedal and compete well in the future. Babs is the author of the students’ fortress with the subtitle, ten practical rules for passing your exams excellently and the teachers’ for fortress with the subtitle, a simple guide to becoming an efficient teacher and school leader of impact.

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Resolving religious intolerance in Nigeria: the European example

Martin Ihembe Ihembe is a Political Scientist with research interest in political development. He can be reached via 08023688848

f you want to know how much of a rabble-rouser a typical pious Nigerian is, just broach a conversation on religion. In the last eighteen years of electoral democracy practice in Nigeria, nothing has threatened the corporate existence of this fragile entity like religious intolerance. After the Sharia crisis of the early 2000s, there have been pockets of religious crisis here there, before the hydra headed monster which is currently ravaging the North-East reared its ugly head

– Boko Haram. With the separatist movement in the South-East, the militants in Niger Delta, and the herders/farmers crisis in NorthCentral, the six geopolitical zones were considered unsafe, except South-West. The latter, which had been considered the post child for the ability to reconcile Islam and Christianity co-existing peacefully, is gradually becoming like the North, considering recent development. For instance, Ibadan International School (ISI) which is located inside the prestigious University of Ibadan has been closed indefinitely over an issue (wearing of hijab) I consider trivial. Trivial because such an issue does not constitute sufficient reason that necessitate closing an institution of learning. Now, keep in mind that this is not the first time wearing of hijab in an institution of learning is creating such problem. There was the case involving one Firdaus at the Law School, and that of post-primary

schools in Lagos State. What this says most clearly about the Nigerian state is that, as a people, the more cosmopolitan we become the less accommodating and tolerant we are. This is an incontrovertible fact. If in doubt, check our history. The question now is: is wearing of hijab the problem? I don’t think so. What adherents of both religions make of this issue in an attempt to either justify or kick against wearing of hijab not helping matters. I mean, I’ve read incendiary remarks by friends and professors concerning this issue that left me thinking what kind of kids are raising for the future given our attitude, knowing full well the dangerous effect of what religious identity for the wrong reasons has done to us as a nation. Since this is becoming a recurring issue, I think it’s about time our leaders did the needful before we slid into another bloodshed. There is enough lesson for us to learn from the European experience. For students of history, you would agree

with me that 17th century was a terrible period in European history. People brutally murdered each other for religious reasons during the Civil Wars in England which involved 3 kingdoms – Scotland, Ireland, and England. This is aside the thirty years Wars in Europe – essentially fanned by religious intolerance – which ended with the Treaty of Westphalia in 1648. In the case of the Civil Wars in England, it ended with a compromise in Britain which went like this: you practice your religion and teach it to your children; let me practice mine and teach it to my children. That is why today in places like Germany and Italy, it is absolutely forbidden to invoke a deity. No politician is allowed to do that for any reason. It is called secularism. In fact, in the countries conquered by the Napoleonic Wars, the aim was to drive religion from the public sphere, and to a large extent, that has been achieved. Conversely, this is not the case

in America where the separation of religion from the state has not worked. This failure is not unconnected to the fact that religion was specially favoured by the country’s founding fathers. In the same vein, successive American leaders followed what the founding fathers did when a joint resolution passed by Congress and approved by President Dwight Eisenhower went a step further to imprint In God We Trust on the country’s currency. Even with the Establishment Clause which prohibits government from making laws religious matters; or favour one religion over another, government institutions in America have stopped at nothing in observing religious worship, unlike Europe. Note: The rest of this article continues in the online edition of Business Day @https://businessdayonline.com/

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Benefits of transport infrastructure investments in Nigeria

FESTUS OKOTIE Okotie, a maritime transport specialist, writes via fokotie.bernardhall@gmail.com

t has become a truism that our nation is at a crossroads in its transportation systems and policies. Some of the benefits of transportation infrastructural investments are discussed in this article but not limited to the following; travel time savings, improved transportation system reliability, vehicle operating cost savings, reductions in crash-related costs, improved mobility and availability of travel options. The benefits of transportation infrastructure investments to Nigeria at this time is of utmost importance because of the high dependence on crude oil which is the major source of income and has been experiencing consistent decline in its price in the past years. Transportation is the gateway to the economy of any nation and business organizations globally, so the need to invest hugely in the sector is of utmost importance if our nation must succeed. It also creates job opportunities and a leeway out of a slow growth in any economy because of the increase in activities it brings about in businesses and organizations operating within the sector. The call for urgent actions in transportation infrastructural in-

OLUWADARA ALEGBELEYE AND OLUWATOSIN ALEGBELEYE Alegbeleye (Oluwadara) is a PhD student at University of Campinas while Alegbeleye (Oluwatosin) is a medical doctor at University College Hospital, Ibadan

n October 25, 2018, UN member countries unanimously agreed to the Declaration of Astana, a reaffirmation of the landmark Alma-Ata edict promulgated to strengthen primary health care systems globally. The Alma-Ata decree was in 1978, shortly after which Prof. Olikoye Ransome-Kuti became Nigeria’s health minister. During his tenure, Nigeria’s health care system received significant boost, making it a model for several African countries and other parts of the global south. While some critics may disagree, the current rotten state of our health sector effectuated by knaves and reprobates makes Prof. RansomeKuti’s health care system despite its flaws, oh so desirable at this point. It is November 2018, and we all know that Nigeria’s health care system has virtually collapsed. However, to put things in proper perspective particularly for those who might for whatever reason

vestments in Nigeria is to open up the economy, boost productivity and wealth generating potential, to bring about the needed growth depends largely on the desire and drive of this present government to change the status quo of our nation and this is a timely opportunity to write its name in gold in the history of nation. All major economies globally have a properly structured policy, plan, blue print, adequate manpower, highly qualified and well experienced trained personnel in the transportation sector to run the affairs within the sector, modern use of latest technology in achieving higher results, timely delivery of set goals and objectives which are the key factors which attract investors to this sector. Transportation infrastructure investments increases personal mobility, quality of life of the people in the nation and also indicates the level of development of that nation. It also helps in the ease of doing business and makes individuals in that nation more

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Transportation infrastructure investments increases the economic wellbeing of the citizens of any nation and Nigeria loses billions of dollars annually as a result of consistent gridlock within the major cities

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productive across the geographical landscape of the nation like Nigeria. It helps to increase overall productivity both in terms of reducing travel time and reliability, it also makes freight flows faster, efficient and dependent. It also enhances productivity by increasing connectivity and reduces congestion such as the case in Apapa and other major areas within Lagos State, Port- Harcourt, Abuja and other major cities which links the nation. Transportation infrastructure investments increases the economic well-being of the citizens of any nation and Nigeria loses billions of dollars annually as a result of consistent gridlock within the major cities, it also has a long term effect of improving safety and environmental sustainability, the number of road accidents daily within the highway is alarming which has claimed

thousands of lives and has been consistent over the past 20years. This calls for urgent actions by the government in addressing it once and for all by attaching the Federal Road Safety Corps to the Federal Ministry of Transportation, as assessment of its overall benefits has been insignificant compared to the resources and energy allocated to it, the Federal Ministry of Transportation is the body created to manage the entire transportation systems in our nation and should be given the opportunity to manage everything that has to do with the entire sector and should be adequately funded to ensure it delivers on the set goals and objectives given to it as a responsibility. Assessments of the economic benefits of transportation infrastructure investments to our nation are critical to good policy decisions and more of such assessments depends on the cost-benefit analysis and national econometric analysis, the first takes a partial equilibrium perspective while the other is focused on providing much guidance concerning specific infrastructural projects and programs. High transport costs of moving around and doing business magnify the impact of distance and reduces trading opportunities thereby limiting potential for growth. But with efficient infrastructural investments in place it reduces transport costs and freight services of goods will be more affordable and thus will help developing economy like Nigeria to build more viable supply chain structure that will facilitate and enhance trade and business opportunities.

The desire and drive by this current government to succeed especially within the transport sector calls for commendation and encouragement as it is entirely impossible for any government to do all by itself and this article points out some of the grey areas which needs attention. It is difficult for the government to monitor all its operations or determine revenue leakages daily without the use of the necessary modern equipment, technology and experienced manpower. The revenue lost daily both in fees and taxes runs into billions of dollars annually and the need to create Nigerian Intelligence Transport Regulatory Agency (NITRA) should as a matter of urgency be created to block the leakages and harmonise the losses, regulate the entire intermodal systems(Road, Railway, Maritime, Air, pipeline) connectivity, monitor the operations and employment of personnel within the sector which must be experienced and trained specifically with the right skills in the transport sector. Most appointment and employment done within the sector are more of political affiliation which has not benefitted the sector and the economy at large. I believe strongly if the present government moves swiftly into action by acting on the above points in this article, it will be bring about accelerated growth in the output economically in the transport sector, the Nigerian economy at large and create more job opportunities.

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A reminder of the need for quality, accessible healthcare for all Nigerians be disillusioned, it is necessary to provide a few facts for reckoning. According to certain reports, Nigeria provides healthcare for only about 3% of its population with millions lacking access to essential health services. There is a high, albeit poorly documented prevalence of infectious and noncommunicable diseases, high maternal/infant mortality rates, malnutrition and general low life expectancy (45 years for men and 49 years for women).Some infectious diseases that have been vanquished in other parts of the world are still endemic in Nigeria. For instance, Nigeria is one of three countries-Afghanistan and Pakistan still grappling with Polio. Nigeria is reportedly the fourth most dangerous country in the world to give birth, ahead of only Sierra Leone, Central African Republic and Chad. Poor public health response, poor hygiene, inadequate safe water provisions, weak infrastructure, poor record keeping, insufficient personnel are some of the other problems plaguing the system. The country practically has no systems for disease prevention, public health enlightenment, mental, sexual and reproductive health. As a result, many Nigerians die or are

rendered morbid from preventable causes. The essence of the Astana conference is simple- to reinforce the need for efficient primary health care globally. The participants very likely gleaned important lessons from attendance. Who were these participants and can it be taken for granted that they have the inclination or proper understanding of what it takes to translate this agreement into meaningful growth? More importantly, do they have a work plan or strategy? Are they committed to influencing change in the health sector? Admittedly, revamping Nigeria’s healthcare sector is an arduous task. There are however, simple, pragmatic steps that can be taken to realize these goals. Political will is necessary as every determinant; ranging from critical appointments, infrastructural development, capacity building, to enacting policies is hinged on political decisions. In its absence however, it can be stimulated. It might be a little late in time to talk about electing visionary leaders. However, we have seen how social media activism has influenced political decisions in recent time, even in certain cases where the outrage was misguided. Nigerians should therefore, be enlightened

and encouraged to engage with and advocate for achieving the goals stipulated in Astana. We need to prepare to task the next President to seek a reformer, in the ilk of Ransome-Kuti who will make bold political choices for health across the entire country, rather than a vacillating, inept Professor with ‘glowing’ credentials. Other activists, academics, philantropists, members of press, patient advocates and health workers must not forget this commitment. The obligations of the government, ministry of health and other relevant authorities or partners are clear. If these stakeholders have lost sight of these, patriotic experts need to update them periodically. These experts can disseminate sound information on social or other media platforms so everyone can be aware and propagate the information. The need to empower individuals and communities cannot be overstated. The country has to prioritize the welfare and continued training of medical doctors and other healthcare workers. Nigerian trained medical doctors leave the country in droves and no one seems to care. This is the worst form of brain drain considering the resources that goes into training

these doctors. Other sane countries want to retain their talent, not flush them out. These doctors are needed to serve the country particularly the rural areas. With the right incentives, working conditions and career development opportunities, it can be expected that many more doctors will be encouraged to stay. Adequate funding for medical research, equipment and other amenities, bookkeeping and disease prevention schemes is necessary. In addition, the country’s health insurance program needs to be improved. Countries like Kenya with laudable initiatives such as National Hospitals Insurance Fund designed to ensure health care for the impoverished may be emulated. We need national, state and local policies, as well as workable strategies to develop and maintain sustainable healthcare systems throughout the country. These policies should ensure accessibility to quality healthcare, improve the health, overall wellbeing and longevity of Nigerians, while contributing meaningfully to the sustainable development of the country.

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

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

Thursday 29 November 2018

Another round of ASUU strike: Time for introspection

cademic Staff Union of Univ ersitie s (ASUU), once again, on November 4, 2018 embarked upon an indefinite strike action over the non-implementation of the Memorandum of Action (MOA) signed with the federal government September 2017. According to the body, all entreaties made to the federal government to honour the agreement with the union fell on deaf ears and they had no other option than to begin an indefinite strike action. The MOA was signed in September 2017 after more than a month of strike action by ASUU. Then, the grievance was alleged breach of the Memorandum of Understanding (MOU) for the 2009 FG/ ASUU agreement on financing of state universities; breach of the conditions of service; refusing to honour the Earned Academic Allowance (EAA) and re-negotiation of the agreement. As a background, the 2009 agreement was reached after a series of standoff with the government that started in 2007 at the tail end of the Obasanjo regime. Even after signing the agreement government still reneged on the implementation of the agreement and it took another round

of strikes in 2011 and 2012 before the agreement was renegotiated in 2013 where the government agreed to release N1.3 trillion over six years. Since the government released the first tranche of N200 billion in 2013, it has not released any more funds to the system in line with the agreement. It was obvious to all that the government reluctantly signed the MOA to get the lecturers back to the classroom and this current crises was bound to happen. True, the government has not fulfilled its duty of adequately funding public universities and ASUU is within its right to demand that the government live up to its responsibility. However, the strategies employed by ASUU have not been the most effective and have become obsolete, aggravating rather than helping to solve the problem. First, we believe, like former president Obasanjo, that ASUU merely stampeded the Yar’adua government into signing the 2009 agreement even when it knows from the first day that government will not honour the agreement. Second, we think the some of the contents of the agreement are self-serving, impractical and inimical to the development of education in Nigeria. It is perplexing that part of ASUU’s demand is to create a separate pension system and for the federal government to

continue to fund staff schools in the various universities. How does a progressive union expect to tear up a very progressive and workable pension law that took years to enact and which is working seamlessly just for the benefit of its members? How does a progressive union expect the federal government, despite the cash crunch in the country and the call for restructuring, expect the government to take on additional responsibility of funding all the university staff schools? But beyond the often trumpeted adverse effect of ASUU strikes on students and the education system, ASUU strikes fasten the degeneration of ASUU members themselves, making them lose track of and unable to participate in conversations within their disciplines thus turning them into quacks operating in silos in Nigeria. Anytime ASUU goes on strike, it directs its members to completely halt teaching, research and all academic activities. The world over, research is known to be the life-wire of serious academics. How does a serious academic therefore halt his/her research activities and picks it up after months of inactivity and still expects to be an academic to be reckoned? It is not surprising therefore that our universities are bereft of any serious academic

endeavours and our so-called academics are lost in the conversations within their disciplines. Haven cut themselves off from ‘the conversations’ with their global colleagues, Nigerian academics now create illusory ‘fiefdoms’ in the various universities where they are lords, create their own journals where they ‘converse’ with themselves, assess themselves and award themselves phony professorships with relish. It is so bad these days that Nigerian academics can’t even participate reasonably in national discourse. They now hold their discourse in beer parlours and staff clubs over beer and pepper soups. At a time when progressive universities are outlawing any form of sexual or romantic relationships between students and teachers, our universities are centres of sexual harassment, rapes and transactional sex. Pray, how can any meaningful knowledge be learnt and transmitted in such an environment? We have been deceived all along by the ASUU to think that the major problem of our universities is that of government neglect or insufficient funding. Sadly now, even when the universities are properly funded, we will be faced with a bigger problem – total lack of academics worth their salt. ASUU needs to do a thorough introspection!

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Thursday 29 November 2018

BUSINESS

COMPANIES & MARKETS

DAY

Shell rolls out 2018 multibillion naira education scheme

Pg. 14

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

INDUSTRIAL GOODS

The curious case of cement company CCNN LOLADE AKINMURELE

ement Company of Northern Nigeria (CCNN), will be seeking s h a re h o l d e r s’ approval for the terms of a proposed merger with Kalambaina Cement Company at an Extraordinary General Meeting today Nov. 29. The cement maker, majorly owned by BUA cement, needs a 75 percent buy-in from minority shareholders. The curious terms of the merger, which has drawn interest from analysts and investors over the past month, means the deal could prove a tough sell to shareholders, even though the meeting will hold in Northern Nigeria, Sokoto, where only a few them are domiciled. According to the scheme of merger seen by Business Day, 11,886 million new shares will be issued at a price of N26 which translates to an equity value of N308 billion ($855 million) for the 1.5 million metric tonne Kalambaina plant which was constructed by BUA. However, a raft of valuations done by investment banks from Renaissance Capital to ARM, imply the plant may be overvalued. Drawing from Kalambaina’s unaudited income statement, Renaissance Capital estimates full year 2018 earnings of N12.7 billion.

That implies a price to earnings ratio, which is a widely used valuation metric, of 24 times. That’s a 49 percent premium to the frontier peer average of 16 times. The largest producer of the building material in Nigeria, Dangote cement is trading at a 2018 PE of 14.7 times. Given the cost to construct an integrated plant is $200 per ton, the cost of the 1.5 million metric tonnes Kalambaina plant was estimated to be worth $300 million by Renaissance Capital, 185 percent higher than the plant’s $855 million valuation. ARM research values the plant at $350 million, using an exchange rate of N360 per US dollar, which implies a 144 percent premium. “In our view, CCNN paying $855 million for the plant is a steep premium even with its efficiency benefits,” analysts at Rencap said in a note to clients. “Nonetheless, we agree that shareholders of CCNN will become shareholders of a larger and more profitable entity,” the note read. The downside however is that post-merger, CCNN’s minority shareholdings will shrink from 34 percent to 3 percent, while BUA will directly and indirectly own 97 percent. CCNN is the best performing stock on the NSE, having gained over 100 percent since the start of the year. The stock is however

Source: Bloomberg

down some 25 percent to N18 per share Nov 26, from N24 at the start of November. R e n c a p, C h a p e l H i l l Denham, ARM are among investment banks to have downgraded CCNN stocks to Sell on the back of a material dilution of shares. “Examining the impact of the proposed consideration on shareholders, using our estimated proposed conversion cost of N308.9 billion and overlaying that on the VWAP, we arrived at additional shares of 11.9 billion (in line with the scheme of merger document) which cascades total shares out-

standing to 13.1 billion from current of 1.3 billion. “Thus, we see a significant dilution to shareholders from the proposed consideration of the merger,” analysts at ARM said in a note to clients. The enlarged CCNN post-merger Property, Plant and Equipment (PPE) is expected to increase by N107.5 billion (implying that management adopted an exchange rate of N307/1$ in treating the construction cost of $350 million) to N119.8 billion. However, the enlarge CCNN’s intangible assets

increased to N207.3 billion from just N499 million in 2017, and that has not sat well with analysts. “While we find the value of the increase in PPE quite justified, as it is closely related to the construction cost of $350 million using an exchange rate of N301/1$, we believe the associated premium in terms of the goodwill requires more explanation on the part of management as we understand it is not associated with any right – in the form of mining of limestone – as the plant is situated in the same location as CCNN,”

analysts at ARM noted. CCNN’s total assets stood at N30 billion as at end-June 2018, only 10 percent of the N308 billion equity value of the Kalambaina plant. The merger, if approved by shareholders today, could take the company’s assets to N338 billion, more than a third of Dangote Cement’s total assets of N1.69 trillion. The last time a reverse takeover, wherein a small company acquires a larger one, was when Nigerian cement maker, WAPCO acquired a South African plant in 2014.

OIL & GAS

NLNG boss says Nigerian content will drive $4bn Train 7 project Ignatius Chukwu & Innocent Eteng

he Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Tony Attah, in Port Harcourt, November 22, 2018, said the company was 100 per cent committed to a Train 7 project valued at $4Bn that would be delivered with the involvement of competent Nigerian companies. He made this statement at a workshop titled “Public Workshop on Nigerian Content for NLNG’s Train 7 Development” held at Hotel Presidential in Port Harcourt, targeted at giving Nigerian companies information on how Nigerian Content could be maximised in NLNG Train 7 project. The project is expected to ramp

up the company’s production capacity by 35 per cent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. Dignitaries at the event include the Executive Secretary of the Nigerian Content Development Monitoring Board (NCDMB), Simbi Wabote; top executives of the board; chief executives of Nigerian companies; NLNG’s Coordinator, Expansion, Suleiman Umaru; representatives of business across the country. The workshop is the third held by the company in its bid to ensure Nigerian companies and the Nigerian economy derived maximum value from its Train 7 project. The project, valued at over $4Bn, is expected to commence as soon as a Final Investment Decision (FID) is taken. In his welcome remarks, Tony Attah, said “NLNG is

underpinned by its vision of being ‘a global LNG company helping to build a better Nigeria’. The global play is about the business itself and helping to build a better Nigeria is consist with our partnership with NCDMB. “I will like to invite Nigerian companies to please participate in Train 7, which is the purpose of this workshop. It is consistent with our partnership with NCDMB. It also opens up the opportunities for local companies to play, starting with understanding the scope of the project. In addition, it creates an opportunity to meet the two consortia we are currently working with, B7 JV and SCD JV. They are the key players tasked with the Front End Engineering Design (FEED),” he added. In his keynote address, the NCDMB Executive Secretary,

Wabote, commended NLNG for the workshop, saying “we had one of it in Bonny community and another in Abuja. Today, we are here in Port Harcourt. It shows the sense of responsibility of the company to ensure that all stakeholders are taken on-board and are informed about the various opportunities in the project. “The workshop goes to show that there is adequate information and communication. We have gone through the three levels from Bonny community where we assembled the Bonny contractors to talk about this to this moment. This is a strategy we have put in place to ensure that all upcoming opportunities are well communicated to all stakeholders at all levels. “I share the sentiments with the NLNG MD on the 30 years anniversary of the com-

pany and 20 years anniversary in operation. You hardly have businesses that survive for that long apart from businesses that are well run. NLNG has paid back the loans they took to build the plant and now it now sees more opportunities and seeks further investment. This is a good thing,” he added. He remarked that “the public workshop on Train 7 has two objectives: the first is to sensitise interested stakeholders to the upcoming Nigerian Content opportunities in the project. The second objective is to create to a platform for identification of local supply chain capacities and capabilities that are available incountry. It is very important to have clarity of what local content is about. Local content is not Corporate Social Responsibility (CSR). It is not a favour that a company does to a country or a people. It is

purely business. It is about giving local companies an opportunity to deliver value through the value chain. “As we go into the development of NLNG’s Train 7 project, we believe it will bring about opportunities for utilising local goods and services in addition to affording local companies the prospect to enhance their capacities and capabilities. We expect that the train 7 project will provide a platform to expand existing businesses and create opportunities for new businesses like in the cryogenic space as we push the boundaries of local capabilities. NLNG is owned by four Shareholders, namely, the Federal Government of Nigeria, represented by NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N. V. S.àr. l (10.4%).

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Thursday 29 November 2018

Business Event

EDUCATION

Shell rolls out 2018 multi-billion naira education scheme Ignatius Chukwu

total of 1,032 scholars won different categries of scholarships in different parts of the world under the sponshrship of the Shell Petroleum Development Company (SPDC) who have unveiled their 2018 education day. On Tuesday, November 27, 2018, Shell, unveiled its multi-billion naira education package for 2018, and also revealed how it has so far spent N1.7Bn ($55.3m) on 79 post graduate scientists and engineers in the UK. SPDC managing dircetor and country chair, Osagie Okunbor, said in a speech delivered on his behalf by the external relations manager, Igo Weli, that 532 scholarship slots have been awarded to secondary school bright students in th regular Shell Scholarshi scheme for colleges ; 430 went to undergraduates ; 60 went to the innovative Cradle-toCareer (C2C) scheme which lifts bright pupils to highbrow (Ivy) colleges in Port Harcourt and later to other parts of Nigeria. He also mentioned the special undergraduate scholars scheme that takes 10 Niger

Delta top graduating engineers and geo-scientists to the UK. Okunbor said : We also showcase the SPDC JV-supported Professional Chairs in Geophysics, Centre of Excellence in Marine & Offshore Engineering ; and Geosciences and Petroleum Engineering, the Eco-Marathon ; Sabbaticals and Research Interns among others. These initiatives are all aimed at enhancing collaboration with the academia to produce industryready graduates ». The MD said Shell companies in Nigeria have had a long history of supporting education in Nigeria through scholarships and other social investment initiatives and that their scholars hold leadership position in several key sectors of Nigeria economy. He agreed with Nelson Mandela in saying that education is the most powerful weapon to change the world. The change most urgented needed in the oil region, according Weli who explained in later remarks, is moving away from aggression and violence to dialogue. The GM, a son of the oil region, said the exodus of multinationals and businesses from the oil region would deny the schol-

ars the opportunity to exercise their gifts through worthy jobs. He mentioned the refusal of the Dangote group to built their multi-billion dollar refineries and petrochemicals in the Nigeria as a case that should prick the youth of the region into a new thinking. He lamented the difference between the Port Harcourt of today and the one of the past where jobs were plenty and most graduates flocked to the Garden City in search of jobs and career. Now, he regretted, Trans-Amadi looks like a shadow of itself, but said a new thinking led by scholars and young intellectuals can restore hope and create a new atmosphere of peace and industialisation through dialogue and constructive engagement because, acccording to him, Shell is listening and taking corrections. Some of the best performers in the C2C scheme who were rewarded include Zebulon Favour from Bloombreed with 4.90 average ; Jepghthah’s Awongo Johnbull with 92.2 average ; ABEC’s Praise Seimode with 89 per cent average ; and Brookstone’s Joel Iboro whose scores were not imediately disclos

L-R: Bamidele Adedeji, lead consultant, Youthniversity Consult; Adebimpe Adedayo-Ojo, wife of Keynote speaker; Linda Obidike, consultant, Youthniversity Consult, and Adedayo Ojo, MD/CEO, Caritas Communications Limited and Keynote speaker, at the maiden edition of the Leadership Launchpad orgainised by Youthniversity Consult in Lagos recently.

BANKING

Diamond Bank introduces XclusivePlus, highlights benefits to customers MODESTUS ANAESORONYE

n its quest to go beyond banking inservingitscustomersbetterand impactingontheirlives,diamond bank has introduced a premium lifestyle subscription service for its affluent banking customers called Xclusiveplus. Speaking on the Xclusiveplus proposition, kari tukur, head, consumer banking, diamond bank plc. said“wehaveseenariseincustomer spend in the past few years for luxury travel,luxuryexperiencesandluxury products among the emerging affluentclientsegment.ourpropositionis well positioned to further enhance their lifestyle and provide them with the most satisfying rewards.” She went on further to explain. “Xclusiveplus membership comes with an automatic card upgrade to the diamond visa signature naira

debit card. Diamond bank is the first bank in Nigeria to go to market with this card. this is a naira card with higher spend limits and enabled for international spend. with this card, our customer will enjoy lots of world class travel and lifestyle benefits such as free access to over 800 premium airport lounges globally, great discounts and vip treatment at luxury hotels around the world, free travel insurance cover for them and their family for medical emergencies, lost luggage, flight cancellation and much more anytime they travel. this insurance is also valid for foreign visa applications.” there are also benefits closer to home, including free cinema tickets all year around for the movie lovers, free premium events tickets such as concerts, comedy shows and art exhibitions and lots of great offers and discounts from a wide range of

merchants across the country ranging from restaurants, bars, hotels, shopping and much more Xclusiveplussubscribersarealso invited to various seminars, conferences and round table discussions covering a wide range of topics such as wealth management & investment, economic outlook, financial planning, assess to finance and lots more. these events will give them the opportunity to acquire knowledge from industry experts and network with like minds. She concluded by saying with the Xclusiveplus, diamond bank is always available to the customer wherever and whenever you need usthroughthemobileapp.withover 3 million users, the mobile app is loaded with exciting features such as local and foreign currency transfers, bill payments, airtime top-up, esusu, events and movie tickets purchase.

INSURANCE

L-R: Ali Fawaz, senior financial controller, Midis Group; Olufunke Odunta, managing director, Task Systems Limited; Joel Egbai, chief executive officer, Edgebase Technologies Limited; Joyce Obih, channel manager, HPE operated by Selectium (Nigeria); Edwin Callen, general manager, HPE operated by Selectium (Nigeria) and Louis Guelette, member of the advisory board, Midis Group, during the HPE Partner Event in Lagos.

L-R: Tayo Orekoya, president/CEO, PEARL Awards Nigeria; Gabriel Ogbechie, group managing director, Rainoil Ltd; Eniola Fadayomi, memeber, PEARL Awards Nigeria, and Faruk Umar, chairman, PEARL Awards Nigeria, at the 2018 PEARL Awards Nite in Lagos

AXA Mansard sponsors Lagos Kids’ Mini Maraton IFEOMA OKEKE

XA Mansard Insurance plc, a worldwide leader in insurance and asset management, has continued to deepen its penetration in Nigeria especially with its recent partnership of the 2018 Lagos Kids’ Mini Marathon as the official insurance sponsor of the event. The Maraton which was held in Lagos recently, themed “Active Kids Rock”, was the 2nd Edition of what has become an annual family event promoting sports and healthy living. It was an opportunity for families and friends to bond and create memories that will last a lifetime, while promoting a charitable course and inspiring kids to become more physically active for a lifetime from an early age. Speaking at the event, Kola Oni, group head, strategy and marketing at AXA Mansard In-

surance plc said “we are excited to be a part of this iconic event as we once again partner with St. Saviors School to further promote wellness in the society. Beyond this, it is also an opportunity to contribute towards helping disadvantaged children and ultimately promoting excellent primary education in Nigeria.” Commenting further, Oni said, “At AXA Mansard, we will continue to be at the forefront of health improvement and look forward to making a difference in the lives of kids, young adults and the community at large. Supporting the Kids’ Marathon is our way as a leading insurer, of throwing our weight behind the leaders of tomorrow. We remain resolute in making Nigeria and the world at large a healthier place” AXA Mansard Insurance plc is a member of the AXA Group, the worldwide leader in insurance and asset management with 166,000 employees

serving 105 million clients in 62 countries. The AXA Group is a worldwide leader in insurance and asset management, with 160,000 employees serving 105 million clients in 62 countries. In 2016, IFRS revenues amounted to Euro 100.2 billion and IFRS underlying earnings to Euro 5.7 billion. AXA had Euro 1,429 billion in assets under management as of December 31, 2016. The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA). AXA’s American Depository Share is also quoted on the OTC QX platform under the ticker symbol AXAHY. The AXA group is included in the main international SRI indexes, such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.

L-R: Neil Papae, general manager Next Cash & Carry Port Harcourt; Ugwu Martins Onuoha, winner of Pepsi Pack Up & Drive, and Emeka Udeh, accounts manager, Seven-Up Bottling Company Limited, Aba, at the presentation of grand prize(Kia Rio car) in Port Harcourt recently.

Thursday 29 November 2018

Research & INSIGHT A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU)

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08098710024

Ways to tap the enormous opportunities in Nigerian aviation sector UJU IKEDIONU

Source: BRIU Analysis

aircraft fly out of the country to get those services in other countries, making them very expensive. The way forward Aviation is a commercially viable enterprise, so it is important to create a safe security environment for passengers and operators. Government cannot afford to finance the management and operation of the aviation sector because of limited funds. Hence, we advocate a trustbased partnership between the government and the private sector (in the form of Public-Private Partnerships – PPP - and/or other similar models) to unlock the needed funds for the provision of critical infrastructure in the sector. By so doing, the government will no longer be concerned with financing infrastructure and maintenance of the airports, but will only restrict its activities to making effective regulations to guide the activities of the operators of the airports. The Nigerian Government has taken a step in this direction as it plans to concession four viable major airports in the country through PPP. Private sector involvement will help ensure that the nation’s

airports are of high international standards with world-class facilities. Transparency in the concessioning process: Transparency in the system is very important as PPPs can be susceptible to corrupt activity if not carefully planned and designed, as with general public procurem ent. The government should also strive to rebuild confidence in the concessioning process given the problems that attended some of the recent attempts in this regard. A strong will and desire to keep to the terms of the PPP need to be demonstrated, while provisions that will address financial and material harm for any attempt by the government (or any party for that matter) to reverse the terms are put in place. Routine maintenance of runways: Runways are the biggest asset in airports and therefore routine maintenance of the runways is very crucial. There is also the need for runways de-rubberization. De-rubberization is the process of removing the rubber deposits left by aircraft tyres on airport runways. This is a crucial part of routine maintenance of airport runways as it helps to improve landing grip

(friction between the plane tyres and the road) as well as reducing the chances of runway overruns and aircrafts sliding off the runway. There should be constant use of runway pavement coefficient to measure the runways in order to find out the effect of the breaking friction of the aircraft. Maintenance of these runways at the right time reduces cost and ensures safety and best international practises. Navigational Aids: These should be upgraded to the best category available in the world such that with performance based nav igation and GPS, aircrafts can land at zero visibility using instrument landing rules. Efficient navigational aids will enable the aircrafts to land, operate and take off as at when due and guarantee cost efficiency for both the airlines and the airports as the airlines will attract more passengers and the airports attract more airlines. Nigerian airports also require expanded functional LED compliance terminals that will meet the increasing passenger traffic, create business opportunities and jobs, create befitting airport experiences for the travellers and ensure a seam-

12734BDN

igerian airlines are beginning to make impact in the global aviation industry as many of them have begun to expand their fleet capacity, venture into several routes, and adhere to strict safety rules. Nigeria also signed the open skies (Yamoussoukro) agreement, giving domestic airlines better opportun ities to compete with foreign airlines. For instance, Arik airline, Medview Airline, and Air Peace are expanding their routes to include Accra, Dubai, Conakry and Abidjan and others. These airlines have been able to compete with other foreign airlines by identifying and improving on key success factors such as attracting customers, managing their fleet, people as well as their finances. Air Peace, with 2.60 million passengers 2017, had the highest volume of passengers among the eight local carriers, followed by Arik Air that airlifted 1.43 million passengers. Dana Air carried 1.19 million passengers while Med-View Airline transported 0.98 million passengers and Azman Air airlifted 0.69 million passengers within the period. Aero Contractors airlifted 0.41 million passengers. First Nation Airways with just one operating aircraft since late 2016 transported 0.19 million passengers while Overland Airways was patronised by 0.14 million passengers. BusinessDay Research and Intelligence Unit (BRIU) in its report titled “Nigerian Aviation Industry Report 2018” stated that the population and the geographical location of Nigeria present strategic advantage for the aviation sector, but this advantage has not crystallised into meaningful gain due to a number of challenges. Some of the outlined challenges discussed in the report include poor infrastructure, absence of routine maintenance culture and de-rubberisation of runways, and lack of Maintenance Repair and Overhaul (MRO) facility which causes capital flight as

less facilitation of passengers from drop off to check–in. There should also be provision of automated security systems that will facilitate communications, coordination, intelligence gathering and surveillance through linkages as well as adequate control towers, conveyor belts, constant power supply, appropriate cooling system, comfortable waiting areas as well as efficient taxiways. Continuous trainings should be given to the aviation security personnel, engineers and pilots to get their skills to international standards. Provision of suitable storage, processing and transportation systems for massive export of farm produce to international markets should be emphasized as this is anticipated to increase the wealth of the country and improve the agricultural value chain. There is also a huge need for setting up MRO in Nigeria. This will remove the cost of flying out the aircrafts to other countries for scheduled maintenances as well as the cost of buying forex. With the commencement of Aero Contractors’ Maintenance Repair and Overhaul (MRO) facility Nigeria will be able to save N22.3 billion the airlines spend on C-checks alone in every 18 months, given that the country operates about 73 Boeing aircrafts. Nigeria is an import-dependent nation. This can serve as an advantage to the Nigerian Aviation Industry as lots of these imports are done through cargo and air travel. With Nigerian aviation facilities brought up to global standards, more international airlines will be attracted to the country, which will open Nigerian aviation sector to the foreign markets. There are presently 15-18 million Diaspora Nigerians that send close to $21 billion remittances annually. This is a pointer to the immense opportunity that an enhanced aviation sector could create for the nation as well as achieve its long desired dream of being an aviation hub for West Africa with good infrastructure, safe environment and pleasant customer experience.

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BUSINESS DAY

C002D5556

Thursday 29 November 2018

BUSINESS DAY

C002D5556

Investor

In association with

Helping you to build wealth & make wise decisions NSE All Share Index

Market capitalisation

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,564.13

1,713.69

1,087.32

38,243.19

N13.609 trillion

Week open (16 – 11–18)

32,200.21

N11.704 trillion

2,328.25

1,419.49

787.55

Week close (23 – 11–18)

31,678.70

N11.565 trillion

2,258.21

1,425.65

787.55

Year Open

Percentage change (WoW) Percentage change (YTD)

-1.18 -17.17

-3.01 -11.93

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

330.69

2,560.39

1,975.59

1,379.74

726.61

290.21

2,229.21

1,359.65

1,173.69

734.44

290.94

2,222.56

1,287.83

1,180.25

NSE Banking Index

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

1,746.68

475.44

139.37

1,442.98 1,430.07

413.86

119.05

410.74

120.69

NSE 30 Index

0.43

0.00

-0.89

-16.81

-27.57

-18.13

-0.75 -13.61

976.10

1.38 -13.40

1.08 -24.76

0.25

-0.30

-5.28

0.56

-12.02

-13.19

-34.81

-14.46

Analysts maintain bearish outlook on stock market …as political uncertainty continues to weigh on equities Iheanyi Nwachukwu

s political uncertainty continues to weigh on investors’ confidence at the stock market, many research analysts seem to align in their short-to-medium term outlook on Nigerian equities. Analysts’ views “Stock market will decline further (4 percent to 5 percent). Corporate earnings will remain flat”, said analysts at Lagos-based Financial Derivatives Company in their November and year-end outlook on equities market. “In the short-to-medium term, we expect the negative performance for the equities market to persist, amidst growing political concerns ahead 2019 elections, and absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” said Cordros Research analysts. “This week, we expect an u n d u l at i n g t re n d i n ma rk e t performance as the impact of bargain hunting in fundamentally sound stocks is expected to be countered by subsequent sell offs. However, we maintain our bearish outlook on the market over the near-term,” said Afrinvest Research analysts. The most notable activity in an otherwise dull equity market in the review week was a block trade on Zenith Bank which drove total value traded for last Thursday November 22 to N15.2billion. The record dismal outing last week on Custom Street came on the heels of FSDH research

analysts expecting the Nigerian stock market to close in the green zone this month. FSDH research analysts are also advising investors to position in stocks that have good fundamentals; see opportunities in the banking, consumer goods, food and beverages, building materials, and oil and gas sectors of the equity market; and buy stocks that pay dividends. “The performance of the equity market in the last six years shows that the market recorded positive performances between October and November in three of the six years. Looking at the oversold position in the equity market, the equity market may appreciate in November 2018”,

according to FSDH analysts in their November monthly economic and financial market outlook. Meanwhile, Vetiva Capital research analysts noted that excluding the block trade on Zenith Bank shares, “investor sentiment remained weak”. Vetiva analysts foresaw a muted close to the review week’s trading, “with a likely tilt to the negative”. They linked their expectation to weak investor sentiment. “Looking ahead, our outlook for the rest of the month remains tilted to the downside amid a paucity of bullish triggers, as well as jitters surrounding events in the polity”, said United Capital Plc research analysts

in their recent investment views. Weak sentiment continues to play out This week’s stock trading took-off on a negative note. This is despite that more investors had moved into Custom Street Lagos last week in cautious mood to pricing stocks. The benchmark performance indicator of the Nigerian Stock Exchange (NSE) – the All Share Index (ASI) – decreased by 379.58 points or 1.18percent last week. The NSE ASI closed the review week lower at 31,678.70points as against a high of 32,058.28points recorded the preceding trading day. Investors at the Lagos Bourse booked huge loss of about N140billion

at the end of trading week to Friday November 23, which had pushed the year-to-date (YtD) returns further into the negative region of minus 17.17percent. There are just two stock trading days to end of November. Also, the value of listed equities on the Nigerian Bourse depleted to N11.565trillion at the sound of closing gong due to investors’ waning appetite for stocks. In the preceding week, the value of listed equities stood higher at N11.704trillion. The third-quarter fact sheet The remarkable disinterest shown on Nigerian stock by both foreign and domestic investors became glaring in the recently released equities trading “fact sheet” for the third-quarter (Q3) of 2018. The Total Volume of stocks traded in the Q3 period decreased to 16.26billion, representing 20.10percent drop from 20.35 billion units traded in the corresponding Q3 period of 2017. Also, the market witnessed decline average daily volume at 258.07 million, which is 20.10percent decline from 322.97 recorded in the same period of 2017. The average daily value of stocks traded decreased by 42.98percent to N3.26billion, down from N5.72billion in Q3’17. Average daily transactions stood at 3,444 from 3,999 in Q3’17. The value of stocks listed on the NSE decreased by 2.11percent to N11.97trillion, from N12.23 trillion in the comparable period. The Fact Sheet revealed equities turnover velocity in Q3’18 at 6.85percent against 11.79 percent in Q3’17. Number of Listed Companies decreased from 166 to 164.

BUSINESS DAY

C002D5556

Thursday 29 November 2018

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United Capital investment views

Bearish sentiment lingers; NSEASI down 1.2%

he bearish theme that plagued the domestic bourse at the previous week’s trading session gained further ground at the close of the holiday-shortened trading week to November 23. The NSE-ASI declined for the second consecutive time week-on-week (w/w) after dipping 1.2percent which led the index point to exit its 32,000-point thresholds and close at 31,678.7 points. Market capitalisation shed N138.6billion to N11.5trillion while year-to-date (YtD) return sank to -17.2percent. Activity level rebounded as average volume traded rose 24.8percent to 320.6million units while average value traded leapt 150.7percent to N5.8billion. Despite the seemingly bearish theme, sectoral performance was evenly mixed between the advancers and decliners. The Industrial Goods (-5.3percent), Agriculture (-3percent) and Banking (-0.3percent) sector indices bore the brunt of the sell-off on the bourse as declines in WAPCO (-12.5percent), DANGCEM (-4.2percent), CCNN (-1.6percent), PRESCO (-6.2p ercent), ACCE S S (-3.9percent) and GUARANTY (-1.4percent) dampened the indices’ performance. On the other hand, the Insurance (+1.4percent), Consumer Goods (+1.1percent) and Oil & Gas (+0.3percent) indices were the week’s gainers as price appreciation in CHIPLC (+15.2percent), NESTLE (+1.4percent), INTBREW (+1.8percent) DANGSUGAR (+1.6percent) and MOBIL (+10percent) outweighed d e c l i n e s i n WA P I C (-4.2percent), NB (-1.6percent) and Forte Oil (-6.8percent). Investors sentiment as indicated by market breadth (1.2x) closed positive as 28 stocks advanced and outpaced 23 stocks that declined. Looking ahead, our outlook for the rest of the month remains tilted to the downside amid a paucity of bullish triggers, as well as jitters surrounding events in the polity. Money Market: A tale of two themes The week to 23rd November was a tale of two themes for the T-bills market. At the beginning of the week, sentiments were guided by prospects of a possible monetary tightening at the MPC meeting as well as an expected higher October inflation reading. Nonetheless, sentiments turned bullish as the week progressed, amid inflation surprising positively by 2basis points (bps), the unanimity at the MPC meeting to maintain status quo on policy rates and the liquidity delude (the CBN continued its netliquidity injection - issuing

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N199.6billion worth of OMO sideways on average to close bills relative to N409.0billion at 15.5percent. On another maturities). Overall, system note, the average yield for FGN liquidity remained afloat as Eurobond inched higher from money market rates (the Open 7.7percent to 8percent while average REPORT yield in corporate WEEKLY Buy Back and Overnight rates) Eurobonds also edged higher averaged 8.1percent. O n t h e o t h e r ha n d , to 10.1percent from 9.4percent. Making 23RD sense secondary market NTB yields STOCK MARKET REPORT FOR NOVEMBER 2018of the DMO’s continued to track higher by stance at the auction – which an average of 8bps to close at gives some guidance on its The market opened for 91-day four trading days this week as the Federal on Government Nigeriagoing declared position local ofdebt 14.0percent: (down Tuesday 20th November 2018 a Public Holiday to mark the Eid-el-Maulud celebrations. 6bps to 13.4percent), 182-day forward - we expect to see some buy-side activity (up 88bps to 13.6percent) Meanwhile, a total turnover of 1.282 billion shares worth N23.142 billion in 11,467 deals werethis traded which may this week364-day by investors on the floor of the Exchange in contrast to a total of further 1.285 billiondrive shares and (up 14bps to week, a yield curve valued at N11.539 billion that exchanged hands last week in 13,245 deals.inversion. 16.5percent). Foreign Exchange: Naira Iheanyi Nwachukwu In this coming week, The Financial Services Industry (measured by volume) led the activity chart with depreciates at 1.058 thebillion I &shares E system maturities to the tune of valued at N18.744 billion traded in 6,558 deals; thus contributing 82.48% and 81.00% to the total as global oil prices N150.6billion entirelyThe Oilwindow equity turnover volume – andmade value respectively. and Gas Industry followed with 96.818 million he turnover in the Fixed further. of NTB as thirddip shares worthmaturities N644.178 million- inas925well deals.The place was Consumer Goods Industry with a Income and Currency In deals. the Foreign exchange turnover of 83.134FAAC million shares worth N3.244 expected inflows, arebillion in 2,114 (FIC) market for the all expected to hit the system market, the local currency month ended October 31, Trading in the Top Three Equities namely Zenith Bank Plc, Diamond Bank Plc, and Oando Plc, against the dollar and weby expect the tempo ofmillionweakened (measured volume) accounted for 877.505 N16.146 billion in 1,423 deals, 2018 represents a decrease of atshares the worth Investors & Exporters 19.81percent or N3.30trillion these events to69.77% guide trading contributing 68.43% and to the total equity turnover volume and value respectively. market, down by 19bps w/w month-on-month (MoM) sentiments. Market: DMO allots to close the week at N364.7/$1. as against the turnover of EquityBond Turnover - Last 4 days The naira also depreciated N16.65trillion recorded in only 39percent of offer Turnover Turnover Valuemildly TradedbyAdvanced UnchangedSeptember. But year-on-year 2bps atDeclined the Official In the primary market, Date Deals Volume (N) Stocks toStocks Stocks while Stocks (YoY), the record N13.35trillion market N306.75/$1 the Debt Management Office 19-‐Nov-‐18 2,853 148,101,533 1,796,075,043.84 98 27 5 66 turnover in the FIC market the parallel market rates traded (DMO) its monthly 21-‐Nov-‐18 conducted 3,359 237,746,984 3,503,007,036.93 93 10 22 61 represents 9.60percent increase sideways at N362.5/$1, even auction of FGN bonds for 22-‐Nov-‐18 2,436 672,560,253 15,215,516,705.05 98 16 13 69 its71 or N1.17trillion when compared November. DMO was as the 23-‐Nov-‐18 2,819 The 223,844,856 2,627,610,184.49 100 CBN 14 maintained 15

Debt capital markets

Fixed Income, Currency market turnover rises by N1.17trn

initially looking to raise weekly FX intervention in N115billion, which attracted the wholesale and retail FX an underwhelming bid of market, in a bid to supporting For Further Inquiries Contact: Market Operations Department Page 1 N102.7billion (Average bid- the naira. Also, FX reserves eased to-cover: 0.9x, 5-year bid-tocover: 0.1x, 7-year bid-to- marginally by 0.2percent weekcover: 0.5x, and 10-year bid- on-week (w/w) to $41.5billion as at Wednesday. Additionally, to-cover: 1.8x). C o n s e q u e n t l y , t h e the CBN governor during the monetary authority ended recent Nov-18 MPC meeting up selling only N39.5billion reiterated the Apex banks (38.5percent of the amount it willingness to continue to was looking to raise) – as the support the naira even at range of bids were beyond the the expense of the reserves. monetary authority’s target for Meanwhile, benchmark Brent price dipped further during the the auction. In our view, the DMO week, trading below $60.0/b is clearly able to take this at the end of the week (the position, taking comfort from first time since Oct-17) after its successful Eurobond issue Saudi Arabia signaled that its (which has covered all of its output might have reached a external funding target for record high and growing U.S. the 2018 budget), and also stockpiles stoked concerns of being well armed to meeting a potential supply glut. Looking ahead, we expect its domestic financing target within the 2018 budget. the sustained weekly FX Overall, the auction was carried intervention by the CBN to out at the following stop rates: continue to support the local 5-year (15.20percent versus unit at N360-N365/1$. In the 15percent at the last auction), meantime, the downside 7-year (15.50percent versus volatility in global crude oil 15.15percent at the last auction) prices remains a potential and 10-year (15.83percent dark cloud for reserves while versus 15.32percent at the last the recently issued $2.9billion Eurobond remains positive auction). In the secondary market, for overall reserves position FGN bond yields traded by year-end.

with same period last year, according to FMDQ OTC latest monthly report. Treasury Bills (T. Bills) and Foreign Exchange (FX) transactions remained the major drivers of the record N13.35trillion turnover seen last month in the Over-TheCounter (OTC) fixed income and currency (FIC) market. Treasury Bills (T. Bills) and Foreign Exchange (FX) turnover jointly accounted for 73.98percent of the Fixed Income and Currency turnover in October, despite being lower by 5.02 percentage points from their level of contribution in September (79percent). The total T. Bills and FGN Bonds outstanding recorded month-on-month increases of N210billion and N100billion respectively to close at N12.87 trillion and N8.21 trillion as at October 31. Also, the domestic debt mix by tenor as at October was 39:61 (long versus short term) as against the planned ratio of 75:25 outlined in the Debt Management Strategy (2016 -2019). Monthly Trading Intensity in the T.bills and FGN Bonds markets decreased from 0.52 and 0.17 in September, to 0.40 and 0.09 in October respectively. YTD trading intensity in both markets stood at 4.39 and 1.29 respectively compared to 5.70 and 1.17 as at the same period in 2017. T. Bills within the 6-12 months maturity bracket remained the most actively traded, accounting for 24.82percent of the total Fixed Income market turnover in October. The total FX market turnover in October was N4.55trillion ($12.52billion), representing 34.08percent of FIC market turnover and a 31.62percent ($5.79billion) MoM decline from the turnover recorded in September ($18.31billion). Turnover at the Investors & Exporters (I&E) FX Window

Patience Oniha, DG, DMO

recorded a 37.94percent ($2.9billion) month-on-month decrease to close at $3.91billion from the $6.30billion recorded in September. Year-to-date (ytd) turnover at the I&E FX Window closed at $49.39billion as at October 31, 2018. The decrease in FX turnover in October was largely attributed to the decline in Member-Clients and Member-CBN trades (32.82percent and 40.71percent respectively) against the marginal increase in InterMember trades (0.22percent). Analysis of FX turnover by product type showed that FX Spot was the main driver of the MoM decline with a drop of 34.67percent ($4.62billion). However, FX Derivatives also recorded a MoM decline of 23.45percent ($1.17billion), driven mainly by a 49.14percent decline in FX Futures turnover. In October, the 28th Nairasettled OTC FX Futures contract (NGUS OCT 31, 2018) with total open contract of $371.49million, matured and was settled on FMDQ, whilst a new 12-month Futures contract (NGUS OCT 30, 2019) with a notional principal of $1billion and price of $/N365.74 was listed on the OTC Exchange. In October, the Dollar/Naira rate at the I&E FX Window appreciated by 38 kobo to close the month at $/N363.54 (from $/N363.92 recorded in September), while the CBN Official Spot rate depreciated by $/N0.25 to close at $/N306.60 (from $/N306.35 recorded in September).

The $/N rate at the Parallel market rate also depreciated between September and October by N1 to close at $/ N362, closing lower than the rate at the I&E FX Window for the fourth consecutive month. Turnover recorded in the Repos/Buy-Backs segment of the Money Market was N2.64trillion in October, representing a 24.70percent (N0.52trillion) MoM increase from N2.12trillion recorded in September, and a 22.85percent (N490billionn) year-on-year increase from the turnover recorded in October 2017. Si m i l a r l y , Un s e c u re d Placements/Takings closed the month with a turnover of N66.90billion, representing an 81.02percent (N29.94billion) MoM increase from N36.96billion recorded in September, and a YoY decline of 66.21percent (N130billion). Av e r a g e O / N N I B O R increased by 669ppts to close at 15.30percent in October from 8.61percent reported for September, indicative of the tight liquidity experienced in the inter-bank market Market Surveillance Total number of executed trades reported on the E-Bond Trading System in October was 10,715 representing a 41.56percent (7,619) MoM decline in the number of trades executed, driven by a MoM decrease in T. bills and FGN Bonds trades by 6,640 ( 4 1 . 1 2 p e rc e nt ) a n d 9 7 9 (44.74percent) respectively.

Thursday 29 November 2018

C002D5556

BUSINESS DAY

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Agusto assigns ‘Bbb’ rating to C&I Leasing N600m bond Iheanyi Nwachukwu

gusto & Co. has affirmed the ‘Bbb’ rating assigned to C&I Leasing Plc’s N600 million fixed rate unsecured bond maturing in 2020. The issue is the second tranche under C&I leasing Plc’s N10 billion debt issuance programme. The rating assigned to the C&I Leasing Plc N600 million fixed rate unsecured bond reflects the Company’s relatively long operating history, good market position in key leasing business segments and good asset quality – upheld by good capacity utilisation. The rating which expires on June 30, 2019 is however constrained by rising leverage, sub-par profitability and the capital position – which Agusto & Co believes requires improvement. Agusto also considers the possible impact the fragile economy and political uncertainties may have on the C&I Leasing’s short-term growth prospects. It noted that growth in business volumes for C&I Leasing Plc is likely to be sustained by the current upswing in the crude oil

L-R: Abolaji Oyebo, head, technology, The Nigerian Stock Exchange (NSE); Tinuade Awe, executive director, regulation, NSE; Bola Adeeko, head, shared services division, NSE; Oscar N. Onyema, chief executive oOfficer, NSE; Michele Carlsson, managing director, Middle East & Africa, Nasdaq; Meyer Sandy Frucher, vice chairman, Nasdaq and James Martin, general manager, Europe, Middle East & Africa, market technology, Nasdaq, during the signing of Memorandum of Understanding (MoU) between The Nigerian Stock Exchange and Nasdaq on technology at ASEA Conference in Lagos.

market – “which should drive significant investments in crude oil & exploration. In addition to tapping into growing opportunities in Nigeria, the Issuer is nurturing expanding beyond the shores of Nigeria.” C &I Leasing Plc is managed along three business lines C&I Fleet Management, C&I Outsourcing and C&I Marine. C&I Leasing Plc recorded lease rental income of N13.9 billion in Q3 of 2018 which indicates an increase of 17.5percent year-on-year against N11.8 billion in Q3’17.

In its unaudited results for the third-quarter (Q3) period ended September 30, 2018, C&I Leasing Plc recorded profit before tax (PBT) of N1.3 billion, up 11.4percent yearon-year (September 2017: N1.2 billion). The company’s profit after tax in the review third-quarter (Q3) 2018 period stood at N1.2 billion, up 25percent year-on-year (September 2017: N950million). C&I Leasing Plc consolidated income statement shows gross earnings of N19.9 billion, up 15.6percent year-on-year

against N17.2 billion in the corresponding third-quarter of 2017. Personnel outsourcing income increased by 10.4percent to N5billion yearon-year against Q3 2018 level of N4.5 billion. Lease rental expense grew by 32.9percent to N6.3 billion year-on-year (September 2017: N4.8 billion); net operating income of N5.7 billion, up 8.6percent year-onyear (September 2017: N5.2 billion). Basic earnings per share increased to 73.45 kobo, up 25percent year-on-year

(September 2017: 58.75 kobo). Total assets of N58.1 billion, up 29.2percent year-to-date (December 2017: N45billion); and operating lease assets of N35.6 billion, up 31percent year-to-date (December 2017: N27.2 billion). Shareholders’ funds increased to N10billion, up 10.1percent year-to-date (December 2017: N9.1 billion). “This result was achieved on the back of increased efficiency from all the business units as well as improvement in capacity utilisation of both marine and non-marine assets”, Andrew Otike-Odibi, managing director/chief executive officer, C&I Leasing Plc noted. “This continued progress of our business units and brands is the result of our dedication to quality service delivery and efficient processes coupled with increased visibility following some successful strategic marketing activities. “As at 30 September 2018, the capital adequacy ratio still stood at 8.9percent below the CBN minimum requirement of 12.5percent and this is due to the pending conversion of $10 million loan stock from Abraaj which is expected to be completed through 2018 and result in our CAR returning to normalized levels,” OtikeOdibi said.

Linkage Assurance wins Pearl Sectoral Leadership Award in insurance

nder writing firm, Linkage Assurance Plc has won the 2018 Pearl Sectoral Leadership Award in the insurance i n d u s t r y o n c o r p o rat e excellence in the capital market. Linkage emerged winner, having been nominated with NEM Insurance Plc and Continental Reinsurance Plc at a prestigious event held in Lagos with key stakeholder in the country’s capital market in attendance. Linkage Assurance Plc alongside other sectoral winners were companies that despite challenges in the economy in the 2017 financial year weathered the storm, outperform others, and sustained leadership of the market, according to the organizers, Pearl Awards Nigeria. Tayo Orekoya, President/ CEO, Pearl Awards Nigeria, said the award has recognized and rewarded over 85 quoted companies for outstanding operational

and stock performance since inception. While commending L i n kag e A ssu ra n c e f o r standing tall amidst challenges undermining growth of insurance business in Nigeria, Orekoya said “As partners in progress with capital market regulators, we shall continue to engender h e a l t hy r i va l r y a m o n g other initiatives aimed at deepening the vibrancy of the market.” Daniel Braie, Acting Managing Director/CEO of Linkage Assurance plc who led top management of the Company to receive the award thanked the organizers for recognizing the efforts that the Board and management of the company weremaking to ensure value creation for shareholders. Braie said, as a company “ w e a re c o m m i t t e d t o sustaining the rules and regulations of the capital market, ensure regulatory compliance and good

L-R: Tony Saiki, head, Oil & Gas; Joyce Ojemudia, general manager, marketing; Daniel Braie, acting managing director /CEO, all of Linkage Assurance plc, receiving Pearl Sectoral Leadership Award in Insurance Category from Adedapo Adekoje, president, Chartered Institute of Stockbrokers during the 2018 Pearl Nigeria Awards held in Lagos

corporate governance practice” He noted that the company will continue to deploy strategies and measures to increase insurance penetration and grow the business such that its shareholders will continue to earn good returns on their investment. According to Braie, the potential of the insurance industry is huge, calling on the general public to embrace insurance as the most effective and efficient means of managing their risks against unforeseen circumstances. Linkage Assurance Plc in the 2017 financial year recorded a 431 percent growth in Profit After Tax (PAT), growing from N544.6 million in 2016 to N2.89 billion in the review period. Total assets during the period also rose by 15 percent, moving from N20.33 billion the previous year to N23.31 billion in 2017.

Renmoney creates convenience to drive fintech business

ommitted to creating the right ambiance that provides convenience for customers and employees in the drive to deepen fintech business in Nigeria, Renmoney has opened its new corporate head office in Lagos. Tobi Boshoro, Renmoney CEO, summed up the rationale behind the move with one word: ‘convenience’. “Convenience is extremely important to us as a fintech business. Convenience for our esteemed customers - making loans accessible anywhere, anytime, from your mobile phones and computers or our phone lines and branch network”, she said. Renmoney has experienced remarkable growth since 2012 from a single office at inception, to five branches across Lagos. Tobi said: “Our staff strength has increased and we have in turn experienced exponential growth in our customer base. It became imperative for us to move into an office that would not only comfortably accommodate our people, but more importantly, enable us build more convenient service experiences for our customers”. The leading consumer finance company officially declared open its new corporate headquarters now located at 23, Awolowo Road, Ikoyi, Lagos. From contemporary meeting rooms to alternative work spaces, the building has been designed to spark creative energy and innovation as employees work to build more convenient solutions for customers. Partitions/ cubicles are a thing of the past and the new open space architecture enables easier communication across the company, while maintaining the privacy required by certain departments. Meeting room names are drawn from some of Renmoney’s core values: integrity, service, innovation, data and excellence. The new Renmoney office was designed by Spacefinish, a Nigerian design agency that also designed the Andela, Google and Venture Garden Group offices, among others.

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Seasonal harvest slows Nigeria’s inflation to 11.26% in October after two-month rise Bunmi Bailey

his year’s harvest of crops may be responsible for the marginal drop of October’s Consumer Price Index (CPI), otherwise referred to as inflation rate of 11.26 percent, analysts say. The change in the CPI, which measures inflation rate, fell to 11.26 percent, from 11.28 in September 2018 and 11.23 percent in August, the National Bureau of Statistics (NBS) says.

Analysts at Chapel Hill Denham believe that Nigeria’s on-going harvest season reduced food prices. Philip Anegbe, a macroeconomic analyst at Chapel Hill Denham said that from his analysis of the report, inflation moderated because of the temperance of the reduced pressure on food prices because this is usually harvest season. Anegbe said, “And this is harvest period in the northern and southern part of the country. So that is what really drove it. On a (month –onmonth) and (year- on- year) basis, food inflation moder-

ated. In November we expect some sort of moderation because of the harvest period.” From the NBS report, food prices reduced slightly to 13.28 percent in October from 13.31percent in the previous month. Ayo Akinwunmi, Head of Research, FSDH Merchant Bank, believes that the control of the flooding problems and herdsmen’s attack on farmers and the harvest season moderated the inflation rate. “We should be having moderation in food prices because this is harvest season. The fact is that the issues (flooding and herdsmen) are now under control and we should be having moderation in food prices because this is harvest season,” Akinwunmi said to BusinessDay in a telephone interview. Since January last year, inflation rate has been on the decline from 18.72 percent till it picked up to 11.23 percent in August this year and dropped to 11.26 percent. Akinwunmi expects the current inflation rate to pick up slightly this month and December, on the back of money coming into the country due to the election season. Ayodele Teriba, CEO, Economic Associates, expects inflation to continue to trend

Consumers rush for Black Friday sales on discounted prices

n this season of discounted promotional sales, where selected products are sold at knocked down prices, this is known as black Friday, Nigerian retailers and consumers on Friday, 23 November 2018 rushed to grab the opportunity. A visit by BusinessDay to Ikeja City Mall (ICM), popularly known as Shoprite showed how consumers and retailers rushed and fought for items which were extremely cheap. One of the major items that they struggled for was indomie, a popular instant noodle which was discounted at 50 percent. Furthermore, at the car park, cars struggled for space, as indomie distribution vehicles occupied almost half of the space. A video trending on instragram showed how shop-

pers at Shoprite, Ibadan, the capital of Oyo state and Akure, the capital of Ondo state fought to catch cartons of indomie being thrown at them randomly from the storage room. Black Friday used to be the day after the US holiday of Thanksgiving, the fourth Thursday in November. Year 2018 Black Friday, therefore, was Friday November 23. Worldwide, Black Friday is regarded as the first day of the Christmas shopping season, a day on which retailers make many special offers and a period retailers sell off old stock at significantly discounted prices with shoppers taking advantage of the reduced prices to shop for Christmas. The day is tagged Black Friday because so many people go out to shop to the

extent that it causes traffic jams, accidents and sometimes violence. Top online stores like Jumia Nigeria, Konga and other online sale patforms are not left out, as they also partake in Black Friday. Jumia did the unthinkable by starting its Black Friday sales on Nov 2, 2018, three weeks before the worldrecognised Black Friday. It claims its Black Friday sales will continue till last Friday of November, November 30. Konga, one of the leading retail brands in Nigeria declared its black Friday sales for eight days which was tagged as Real Friday deals. Its fifth edition of the sales which is discounted at 70 percent commenced on November 22 and ends on the 29th , across all 14 stores in Lagos; Abuja; Port Harcourt; Enugu and Calabar respectively

downwards. “I do not see any inflationary pressure building up because of wage increase and election,’’ he noted. ‘‘When inflation was high, it was because of devaluation and since inflation has been sliding down it will continue to come down.’’ Additionally from the report, the urban inflation rate increased by 11.6 percent (year-on-year) in October 2018 from 11.7percent recorded in September 2018, while the rural inflation rate increased by 10.93 percent in October 2018 from 10.92percent in September 2018. On a month-on-month basis, the urban index rose by 0.8 percent in October 2018, from 0.9 percent recorded in September, while the rural index also rose by 0.7 percent in October 2018, down from the rate recorded in September 2018 (0.8) percent.

Consumers pay higher for kerosene, diesel, cooking gas in October 2018

igeria households s p e nt m o re o n kerosene, automotive gas oil (diesel) and Liquefied Petroleum Gas (Cooking Gas) in October 2018 than in September 2018, a report from the National Bureau of Statistics (NBS) shows. According to the report, the average price per litre of kerosene increased marginally (month-on-month) by 3.4 percent, to N307.2 in October 2018 from N297.3 in the previous month and the average price per gallon rose by 12 percent to N1159.3 in October 2018 from N1127.1 in September 2018. Additionally, average price paid by consumers for diesel increased by 2.4 percent (month-on-month) to N216.8 in October 2018 from N211.6 in September. The typical price for the refilling of a 5kg cylinder for cooking gas increased by 1.8 percent to N2, 145.3 in October 2018 from N2, 107.5 in September. Similarly, average price for

the refilling of a 12.5kg cooking Gas increased by 1.4 percent to N4, 437.5 in October 2018 from N4, 376.2 in September 2018 Consumers living in Ogun, Enugu and Abuja paid the highest average price per litre of kerosene in October, which was N346.3, N348.3, and N360.7 respectively while Kogi, Abia and Borno had the lowest with N261.1, N248.1 and N240.4 respectively. States with the highest average price of diesel were Lagos (N238.6), Oyo (N231.3) and Sokoto (N231.3).The lowest were Bayelsa (N189.4), Zamfara (N200.7) and Plateau (N203.9) Bauchi (N2, 550.0), Gombe (N2, 500.0) and Borno (N2,488.9) had the peak average price for the refilling of a 5kg cylinder for cooking gas States with the lowest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Enugu (N1,918.18), Ebonyi (N1,916.67) and Kwara (N1,900.00).

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Go for fruit juice when you miss breakfast - expert By our reporters

celebrated health and fitness expert, Bisi Abiola has recommended 100% fruit juice for professionals who are denied

the opportunity of regular breakfast as a result of tight job schedules. Abiola also noted that adding fruit juice to the breakfast table gives individuals who are often too busy to eat regularly the needed nourishment to start off their daily activities. She made these observa-

tions during the November Edition of her monthly discourse on the health benefits of 100% fruit juice, a platform aimed at promoting the NoAdded Sugar initiative of Chi Ltd. Abiola noted: “The consequence of our modern lifestyle has forced many people to resort to unhealthy

L-R: Bariyat King-Anyam, private sector consultant for The United Nations Office for the Coordination of Humanitarian Affairs; George Polymenakos, managing director, Nigerian Bottling Company (NBC) Limited, and Sade Morgan, legal, public affairs and communications director, Nigerian Bottling Company (NBC) Limited, during the launch of the Nigerian Humanitarian Fund Private Sector Initiative which held in Lagos.

BUSINESS DAY

Nigeria’s beauty products contributes N380bn to GDP in 2017 IFEOMA OKEKE lifestyle and feeding habits, which are now frequently linked to the development of an increasing number of diseases like osteoporosis, high blood pressure, high cholesterol, respiratory infection, obesity, asthma, cancer, cardiovascular disease, diabetes, stroke and thyroid. “In most homes, both parents have jobs, whether working for someone else or self-employed, leaving little or no time to cook. So, the norm is grab-on-the-go meal or going without breakfast. One of the things that come handy in this situation is 100% fruit juice.” According to the expert, individuals who adopt unhealthy food habits often skip breakfast, eat little fruit and vegetables or stick to one meal a day. A healthy attitude towards fruit juice, she stated, is a convenient way to prevent health challenges associated with busy lifestyles. “An intake of food balanced with essential nutrients, which include 100% fruit juice, will help improve our immunity level and keep us healthy,” she noted.

ki no la O law o re, president, Nigerian British Chamber of Commerce, has disclosed that the beauty sector contributed 0.47% to the country’s Gross Domestic Product (GDP) in 2017 which amounts to 380 billion naira. Olawore who disclosed this at the just concluded West Africa Beauty exhibition at the Landmark Centre, Victoria Island, Lagos, said that the stated figure shows that Nigeria beauty sector has contributed immensely to the growth of the country’s economy with the sales and export of beauty products. Also speaking at the event, Jamil Hill, managing director, B to B UK Ltd explained that the purpose of the exhibition is to connect the global market with the Nigeria market. “We are really excited to be hosting Beauty West Africa here in Nigeria. The regional beauty sector is unrivalled globally, in my opinion, with such an emphasis on looking and feeling great. “There is a wealth of natural resource exclusive to Nigeria that really has global appeal. We hope that Beauty West Africa will be the first step towards global commerce for a number of our SME exhibi-

tors,” he said. In her speech, Tokunbo Chiedu, the CEO Compass Consulting, ran a quick analysis of statistical data of 2.47 million Euros spent by Nigerians on beauty products from other countries. According to Chiedu, the interpretation of the data shows that Nigerians are growing the economies of other countries through spending and buying on these products. She therefore called on Nigerians to refrain from adding to the GDP of other countries by buying their products and redirect the spending and buying by making other countries spend and buy Nigeria’s beauty products, hence, adding to the country’s GDP. However, Olawore pointed out that the beauty industry is the only industry that anyone can easily go into without much struggle because the country has the raw materials in abundance. He therefore advised Nigerians to see the beauty industry as a huge blessing to the country and should take advantage of it. The three days free to attend beauty exhibition which runs from November 21st -23,2018, host over 100 exhibitors from countries like UK, United States of America, Dubai, Turkey, India, South Africa, Thailand and Nigeria.

Living under poverty line How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 8155184838 chinwe.agbeze@businessdayonline.com

Trader in dire need of funds for dialysis, surgery Name: Mrs Ugbede Kehinde Oluwatoyin State of Origin: Ogun Age: 35 Dependents: Mother and three siblings Occupation: Trader I deal in eggs and foodstuffs at App market, Abuja. Before I ventured into this business, I worked in the bank having graduated from University of Abuja where I studied Economics. In 2008, I was employed at Oceanic Bank (now Ecobank) where I worked as a teller before I was moved to the customer service desk. I served in different branches of the bank before I was relieved my job. From App market, I moved to Kubuwa where I was trading until I was diagnosed of kidney failure in 2018. How did it start? It started in August, 2017

but like malaria and typhoid. I had the same experience every two weeks. By November, 2017, we were treating ulcer but unknown to us, what I had was bigger than ulcer. I was short

of blood and was given two pints of blood. Before I got married in December, 2017, I was referred to Maitama Hospital for endoscopic but my fiancé did not allow me to go because of the

cost. Two months after the wedding, my condition deteriorated and that was why I was diagnosed of kidney failure. The situation got worse in January, 2018 when I started bleeding through the nose and vomiting two or thrice a week. Second week in January, I was at Kubwa General Hospital. I asked the doctor the result of the general tests carried out on me and she said they were all good. But, I wasn’t getting any better. The bleeding and vomiting still persist. I also lost appetite, had sleepless nights and coughed profusely. I was given antibiotic, malaria drugs and cough syrup. With the medication, it even got worse. On February 23, 2018, I was diagnosed of Chronic Kidney Disease (CKD) at Kubwa General Hospital. I was referred to Gwagwalada Teaching Hospital for further treatment and

Analyst: Chinwe Agbeze, Graphics: Fifen Eyemisanre Famous

dialysis. I spent six weeks at the hospital before I moved to Zenith Medical and kidney centre in Abuja, where I have been receiving treatment till date. What is the cost implication? I was told the best treatment option for my condition is kidney transplantation and it would cost about N13.3m. This sickness is really capital intensive. My husband and I cannot bear the cost. I do dialysis twice a week and the treatment drugs cost N110,000 per week. On every dialysis, I take injection for blood because I’m anaemic and infusion because I lack vitamins and glucose. How have you coped so far? We get assistance from family, friends and good spirited individuals. This sickness

is really capital intensive. A plea for help My husband work is a mathematics teacher at ElisAngel model school. From the time I was diagnosed of this sickness till now, it has not been easy for him. My husband’s salar y couldn’t take care of the sessions of dialysis in a week. Since I was diagnosed of this disease, I couldn’t do any work to support my husband and the family. On monthly basis, I spend N1m dialysis, drugs and admission. The doctor said the lasting solution is the kidney transplant. N10m is required for the transplant but I sincerely do not know where or how to get that kind of money. I am calling on Nigerians to come to my aid and help me raise the funds for my kidney transplant.

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BUSINESSTRAVEL DHL enhances delivery capabilities in West, Central Africa region with Airbus A330-200 Stories by IFEOMA OKEKE

HL one of the leading international e x p re s s s e r v i c e s provider as part of its drive to enhance its delivery capabilities in the West and Central Africa region has launched a new Airbus 330200 cargo aircraft on the Brussels, Belgium to Lagos, Nigeria Intercontinental route. The aircraft will carry out flights 6 days per week from Brussels, Belgium to Lagos, Nigeria, providing a seamless trade link between West and Central Africa and the rest of the world. This development further strengthens DHL’s Sub-Saharan Africa dedicated air network and improves connectivity between key country trade partners in Sub Sahara Africa and the rest of the world. The DHL A330-200 aircraft, which is the first of its kind for DHL in the West Africa region, will carry out flights six days per week from Brussels to Lagos. The new aircraft has a pay-

load of up to 65 tons which provides over 10 tons additional capacity than the B767- 300 aircraft previously operating on this route. In addition, in an industry where every minute counts for the customer, the reliability and efficiency that this new acquisition provides will significantly enhance the quality of DHL services in the West Africa region. Richard Gale, vice president, DHL Aviation Middle East and Africa said the “The increase in capacity of the new aircraft brings a new level of reliability and qual-

ART president canvasses promotion of tourism attractions, inducted fellow of ITP

benga Olowo, the President of Aviation Round Table (ART) has called on government at all levels and private sectors in the country to promote tourism and make Nigeria a tourism destination. Olowo said that once tourism is made attractive to tourists, especially foreigners, the contribution of the sector to the nation’s Gross Domestic Product (GDP) would increase and create more jobs for the teeming populace. He made the statement at the weekend in Abuja where he was inducted as a Fellow of the Institute for Tourism Professionals (ITP) in Nigeria. Olowo insisted that Nigeria had a lot of tourism destinations to promote, but decried that some of these sites remain untapped by various bodies across the country under the wrong perception of insecurity, but stressed that despite the continued wars in Israel, tourists still trooped into the country ditto with Brazil in spite of recorded crimes and wondered why the reverse was the case in Nigeria. He said: “We already have tourism on ground, but we need to package, brand and market what we have. Practitioners have to get serious and turn tourism to good economic investment. “The travel agencies, tour operators and by extension, the Ministry of Information and Culture, should do more. Information remains grossly inadequate both at our embassies and all media.

“I landed at night in Kano State recently and surprisingly found everywhere lit. Kano is so beautiful and there are several cities like that in the country today. A tour of Kano, Lagos, PHC by night with dinner and show lasting three hours or there about will be an attractive package any day. As we speak, Uyo is hosting lady golfers in Africa. Tour packages should be part of such tournament. “We should begin to market our tourist sites. Israel is fighting wars yet tourism, Medicine and agriculture remain their primary economic strength.” On his induction as a fellow of ITP, Olowo said that the honour was a challenge to do more for the industry. “With over 45 years in travel trade sector, the President and Council of ITP have not misplaced their judgement as Fellowship is the highest level of a practitioner in any professional institute and an honour well deserved. “For me, tourism is still not where it ought to be, it is far behind simply hinging the wrong perception that Nigeria is not save. I beg to disagree,” he added. Also speaking at the ceremony, Mallam Abdullahi Sheriff, the lead quality assurance Verifier, ITP said that formation of the institute was necessary in order to ensure professionals speak in unison, noting that there were several self-styled experts in the industry. Sheriff noted that ITP’s membership cuts across the entire value chain of tourism, transportation, hospitality and culture industries among others.

ity of service to the market. We will also have the capability to adjust our aircraft operations to accommodate future increases in demand from the market. These developments will allow us to even better fulfill our obligations to our customers both in Sub Saharan Africa. “The growth in business activity across the region, the ongoing development of international trade relations, and the rapid expansion of companies into new markets require the express delivery industry to provide simple, fast and effective delivery solutions.”

Randy Buday, DHL Express regional director for West and Central Africa opines that the addition of this new aircraft reaffirms the commitment of DHL to develop and drive the express delivery market in Africa. “We are incredibly pleased to welcome this new aircraft to our fleet and believe it’s an important step to further amplify and support connectivity in the region,” concluded Buday. The Airbus 330-200 is one of the core aircrafts in DHL’s dedicated air network in Sub Saharan Africa. It complies with the strict

quality, safety and environmental standards to which the company adheres to. The operation of an Airbus 330200 by DHL Aviation within the Western Africa region will allow the company to broaden the service offering for its customers, and will further reinforce the service reliability and delivery performance of the company. “Our DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management,” Buday said. With about 360,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets.

Ethiopian Airlines, Only Merit partner to promote medical tourism in Africa, India

thiopian Airlines, one of the largest and the leading Pan-African airline group has announced appointment of Only Merit (Merit Healthcare & Hospitality Solutions) India as its “Promoter” for Medical Travel Packages from African Territories to India, Malaysia & UAE. Rahel Assefa, vice president Marketing, Ethiopian Airlines, remarked “To enhance the medical travel facilities across African territories, our vast network in the continent coupled with Only Merit’s expertise shall be of a great advantage and further strengthen the growing demand of Medical Tourism from Africa towards India. Manil Mathew, director of Only

Merit, on his part commented, “Our association as promoter with the largest Africa carrier, Ethiopian Airlines will further strengthen the promotion of unique medical travel facilities to India”. Medical Travel Passengers of Ethiopian Airlines can avail twice daily non-stop services to Mumbai & New Delhi from more than 50 African destinations. Apart from Mumbai and New Delhi, Ethiopian Airlines offers convenient and economical connections on its code share and SPA to almost all metro cities in India such as Ahmadabad, Chennai, Bangalore, Hyderabad, Kochi, Trivandrum etc. Ethiopian Airlines is the fastest growing Airline in Africa. In its seventy plus years of opera-

tion, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. Ethiopian airline commands the lion’s share of the Pan-African passenger and cargo network operating the youngest and most modern fleet to more than 116 international passenger and cargo destinations across five continents. Ethiopian airline’s fleet includes ultra-modern and environmentally friendly aircraft such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing 777-300ER, Boeing 777200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years. In fact, Ethiopian is the first airline in Africa to own and operate these aircraft.

L-R: Abubakar Suleiman, MD/CEO, Sterling Bank; Bolatito Ajibode, GM, Stanbic IBTC Bank; Ini Abimbola, Business Consultant; Aisha Bello Tukur, Founder, FID Networks; Raliat Oyetunde, Business Consultant; Saidat Otiti, CEO, Baytuzzeenah, and Wale Sulaiman, the moderator at the “FID HUB 2018” organised by Friends For Islamic Development (FID) networks for Muslims who are in Small and Medium Scale Enterprises (SMEs) in Lagos recently

BUSINESS DAY

Thursday 29 November 2018

CITYFile

Policemen nabbed over illegal movement of arms

wo policemen have been arrested by the National Drug Law Enforcement Agency (NDLEA) for alleged involvement in the shipment of 1, 250 rounds of live ammunition. Head, public affairs, NDLEA, Jonah Achema, disclosed this in a statement issued in Abuja. Achema named the arrested officers as Jacob Jalwap, an Assistant Superintendent of Police (ASP) attached to the police command headquarters, Jos, Plateau and Nandul Seizing, a Corporal attached to Angua Rogo, Jos. He said that the consignment was intercepted by NDLEA command in the Federal Capital Territory (FCT) during a motorised patrol at Gwagwalada end of Abuja-Lokoja Expressway. “The consignment was sent through a transport company from Lagos to be collected by the policemen. They were arrested in Jos in a follow-up investigation of the live ammunition accompanied with a way bill containing the phone number and name of Nandul Seizing. Achema said that the two policemen were arrested when they turned up to claim the consignment, adding that the suspects and exhibits have been transferred to police authorities.

Accident claims 5 on Sagamu/Abeokuta road RAZAQ AYINLA, Abeokuta

ive persons have lost their lives while two others sustained injuries in an accident involving a Subaru car and a Honda bus at Orile Imo area on the Sagamu/Abeokuta expressway. Babatunde Akinbiyi, the public relations officer, Traffic Compliance and Enforcement Corps (TRACE) in Ogun, confirmed the incident on Tuesday to journalists. Akinbiyi alleged that the accident was caused by over-speeding which caused the driver of the Honda bus with registration number EKY 365 FB to lose control. According to Akinbiyi, the driver veered into the other lane and collided with the Subaru car with registration number KTU 246 AT inbound Abeokuta. He said that seven males were involved in the accident and five of them died while two others sustained injuries. “The accident happened around 7:15 a.m. The Honda was coming from Abeokuta, lost control, veered into the other lane and collided with the Subaru car which was going toward Abeokuta. “Three people were initially injured and four died instantly. However, post crash report indicates that another of the injured victims has also died bringing the number of the dead to five and two injured,’’ he explained. The corpses of the dead were said to have been deposited at the Olabisi Onabanjo University Teaching Hospital (OOUTH) morgue, while the injured were receiving treatment at the same hospital. He urged motorists and other road users to be cautious and ensure that their vehicles were in good condition before embarking on any journey.

L-R, Front: Femi Adeshna, Special Adviser to the President on Media and Publicity; Esther Kumuyi, wife of the General Superintendent, Deeper Christian Life Ministry; Pastor W F Kumuyi, General Superintendent; General Yakubu Gowon (rtd), former Head of State and The Convener, Nigerian Prays; his wife, Victoria; Onari Duke, and Donald Duke, former governor of Cross Rivers State, with other dignitaries at the Special National Prayer Service held at Deeper Life Bible Church Headquarters, Gbagada, Lagos.

Edo: Police kill kidnap suspect, arrest 46 IDRIS UMAR MOMOH, Benin

he police in Edo have killed a suspected kidnapper and arrested 46 other suspected criminals in the last few weeks. Johnson Kukumo, Commissioner of Police (CP) in charge of Edo, who spoke at a news conference on Tuesday, said police operatives also recovered 126

assorted arms and ammunition from the suspects. Those arrested included 17 suspected kidnappers of clerics at Urhonigbe near Agbor, Delta. According to the police chief, investigations so far revealed that same suspects were responsible for the kidnap of one Anthony Atemagbo, his wife and daughter on Ubiaja-Uromi road in Edo. Kukumo said that while detectives

successfully arrested the criminals in their hideouts, they also rescued their victims unhurt. He added that nine robbery suspects and 20 suspected cultists were also among those arrested in different parts of the state. Kokumo said that the command recovered about N300,000 from some of the kidnap suspects, and reiterated the commitment of the command to rid the state of violent crimes.

Ambode harps on cost-effective public procurement JOSHUA BASSEY

overnor Akinwunmi Ambode has stressed the need for Lagos State civil servants to prioritise costeffective public procurement, as this, according to him, can serve as an instrument to chart the way out of economic depression. Ambode spoke at a two-day training for civil servants, tagged: “Public procurement in a depressed economy: emerging issues and challenges,” held on Tuesday, in Lagos, as part of efforts to reposition the state’s civil service for an effective service delivery in a complex and sophisticated environment. He pointed out the need to examine how procurement decisions could be creatively tailored to fit into available lean resources in a depressed

economy. According to the governor, who was represented by Benson Oke, his commissioner for establishments, training and pensions, procurement, as a public service function must be given exceptional attention, especially when there is paucity of funds and economic depression. “Today procurement is seen as a crucial pillar of service delivery for governments and a strategic tool for achieving key policy objectives: from budget accountability, to spending efficiency, to buying green and improving outcomes in health, and promoting socially responsible suppliers into the global value chain,” said Ambode. The governor added that strategic public procurement could also significantly support a more circular economy and transform supply-chain

business models, given the magnitude of its size in government spending and its predominant role in delivering some of the most resource-intensive public services such as infrastructure. “In arguing for the pursuit of quality in the face of a depressed economy, I proceed on the basis that the delivery of value to citizens is the fundamental objective of any democratically-elected government and that, in contemporary times, the delivered value must be delivered to the highest possible standard because citizens have become sophisticated.” Oluwatoyin Ogundipe, a professor and vice chancellor of University of Lagos, who also delivered a paper during the session, said the training provided value for money in a competitive world of depressed economy following due process.

BUSINESS DAY

Thursday 29 November 2018

INTERVIEW Nigeria can triple Diaspora remittances with formalised framework – Adejugbe-Williams Badewa Adejugbe- Williams, coordinator, Nigeria Diaspora Alumni Network (NiDAN), expresses optimism that with formalised framework, the Diaspora remittances to Nigeria currently at $22 billion, can triple and be invested into key sectors that will diversify the Nigerian economy and create the needed jobs in the country. Badewa, who is leading other Nigerians in the Diaspora to host a Diaspora Investment Summit in Abuja soon, in this interview with John Osadolor, Onyinye Nwachukwu and Innocent Odoh, says the summit will look at harnessing the country’s potentials and transforming them into actual wealth. Excerpts: Can you talk us through the Nigeria Diaspora Investment Summit? he Nigeria’s Diaspora Investment Summit is inaugural. The reason for this is that we have been noticing that we always have foreigners come to invest in Nigeria and at the end of the day, it is cheap labour for them, they take their money back to their respective countries. We need something that is sustainable for our own people. The other thing is that there are a lot of Nigerians in the Diaspora, who do come in once in a while looking at opportunities to invest in the country and sometimes they hold investment summits outside the country but when the summit is outside the country, they don’t really see what is on ground. And then we are exporting our people over there spending our money over there for their hospitality industry. But we figured out that it is better to reverse that. Instead of sending all our people to meet with them, let them come to Nigeria to see what is on ground and let them come and spend some of their money on the hospitality in Nigeria and at the same time they are helping the economy of the nation. Another thing we also noticed is the remittances. We always hear the big figures that are formally recorded but here are so many that are not recorded. So I am sure it is way beyond $22 billion that Diaspora Nigerians are remitting to Nigeria. Now the remittances go to the informal channel, they go to pay school fees, help somebody who has challenges or they send money home to have somebody help them build houses and a lot of time there is nothing to show for it. The money goes and is not sustaining. So we said, what can we do to help them to still be able to remit money to their families in Nigeria but in a formal way for it to be more sustainable? So we came up with the idea of having this investment summit, to invite Nigerians from the Diaspora to come look at all the different sectors that we are showcasing, talk to the private sector, the people who have projects, who are looking for investors, the MSMEs and see if we can put them together to do business matchmaking with the hope that they will be able to invest. Some will actually have the opportunities to see these businesses, go on sight visits to make sure they are legitimate and we have organisations like the Nigerian Investment Promotion Commission (NIPC) that are also helping to vet to make sure that these are credible businesses, so that is our goal to match them with appropriate businesses and also formalise the money they are sending home that will create jobs definitely because with this Investment Trust Fund that we are hoping will come out of it, we will send money into it. We are looking for counterpart funding to be domiciled in a specific

Badewa Adejugbe- Williams

bank and they will be able to add their family members to be stakeholders in some of the companies they are investing in. So it is a win -win situation, they are getting funds , through remittance and it is going to be formalised, it’s yielding profits, the families will be getting sustainable income and they are creating jobs for more Nigerians. So it is encouraging and I think that the youth will also buy into this because we are creating job opportunities for them, people don’t need to be leaving Nigeria because they want to go and find greener pastures. Nigerians are coming to make the pastures green for them in Nigeria. Are there specific areas? Yes, we have many targeted areas. We have agri-businesses; we have extractive industries, entertainment, hospitality and tourism, education, training and skill development, transportation, healthcare, infrastructure and real estate, manufacturing, telecommunications technology and innovation, waste management and environmental remediation. These are the sectors we are targeting for this summit and we have gotten many positive responses. People are saying that the summit is long overdue, it is fantastic, a great initiative of the office of Abike Dabiri, Special Adviser to the President on Diaspora Matters. So, we are hoping that it will really make a big impact in the lives of the private sector. Some people may be interested in government as well. Government project will be there to present what they have, may be PPP arrangement can be made but we really want to build the private sector with us. In your planning, how many participants will be at the summit? We targeted 200 but the way we are going from the responses, we may have more than that, we will not turn anybody back if we get over 200, because we are getting a lot of

interests. Where do you expect they are going to be coming from? They will be coming from all over the world. We have people coming from South Korea, from China, from the UK, from Europe, from America and South America. And there are non-Nigerians who are interested, some of them have partners, they are coming together, some of them belong to consortiums or some kind of business networks and they have been spreading the word. Furthermore, non- Nigerians are even calling us to ask if they can come and we say why not. We just make sure that local impact and national character will be there. We have to make sure our people get jobs from this and we are encouraging them to partner with other Nigerians because the real goal is for the money to stay in Nigeria and not for them to cart it away back to their countries. At the end of the day what will be the measurable take away? We definitely will have a monitoring and evaluation panel set up that will continue post- summit. We are going to keep track of all the memoranda of agreements that have been reached. We are going to track the business development and follow up with the business promoters to make sure that investors do what they are supposed to do. We will also check with the investors to make sure that the business promoters are meeting their end of the bargain and we are to track the actual investments that are coming into Nigeria. So at the end of the day, when you look at the informal remittances, you look at the formal, you now look at the data, we will get accurate data as to what is coming into Nigeria. Traditionally we look at people coming from everywhere to invest in Nigeria in terms of Foreign Direct Investments, but the fact is that other

countries development is by their own people, there is a lot of nationalism going on around the world. If you look at China for example, it is a whole idea of lets develop our country, lets develop our economy and you see their own people doing that. When I went to China, you would see the young people working hard, the businessman, everybody is so aggressive about developing China. If you look at what China is today in comparison to ten years ago, there is a big difference. So we believe in all of us coming in and hoping that we can pull our brothers and sisters to join us and believe that we are the people that can make a difference in our own lives. The foreigners are coming here and robbing us blind, in fact not blind they are robbing us with our eyes wide open. They get the raw materials, package them and we are paying a premium to buy them. They package shea butter, black soap, ginger, call them different names and we pay premium on them. All of these make us think that this could be colonialism in a different form, because you are beginning to pay a premium to buy what your grandmother used for you. If you look at agro-business, there is a lot of arable land; over 33% of the land in Nigeria is still very arable. So we are hoping that this can actually trigger the transformation we need. If you look at the title we gave this summit, you will see that we want to activate these Diaspora funds into proper channels to make a difference. One of the major focuses of the programme is to diversify the Nigerian economy. The country has so much focus on the petroleum industry, whereas there is so much that could be gained from so many other sectors. We also have in mind that Nigeria’s greatest asset is not petroleum, it is not arable land, it is the minds of its people. A large number of Nigerians outside this country are doing great things; you have them in international organisations, and everywhere doing great things. Why are they not here doing that? We need to create that necessary atmosphere that will enable them put something back here and create a situation that Nigerians don’t need to go out to actualise their potential anymore. So this is a step in that direction. Take entertainment for example, Nollywood is doing great things all over the world, it is recognised everywhere. But how much has that helped to change our economy? This is because there is no fromalisation of its engagement with the Nigerian economy and we look to be able to change that narrative, to be able to get our industries active without anybody looking and thinking how much we are selling a barrel of crude oil and how much our budget is predicated on that. California has crude oil but that is not the focus. The focus is entertainment, technology, innovations, that is where they are making the billions from. Why can’t we do the same thing to be able to change the focus on the

way we look at our economy, diversify and grow it and activate that latent capacity that already exists? Great ideas like this usually meet some challenges. Do you think that the systems and structures we have in place are enough to drive this process? I truly believe that Nigerians are the most incredibly smart and talented people worldwide. And I think that a people that are unified in purpose that is one thing that may have been missing before now. But there are many of the Diasporan organisations that are coming together to do this and the government is putting its stamp of approval because it is being done differently. The fact is that this is not going to be tied to any administration, it is not tied to a political party because that is one of the things that make what we do to extend beyond who is sponsoring it. And the other thing is talking about infrastructure, the Diaspora Investment Fund is new, it has never been done and the Diaspora Bond is there to address some of the issues. One of the things that the Diaspora fear a lot is that many of them have gone for so long, they are coming back but they don’t’ know how to start or who to trust, so trust is the problem. Everybody has some bad story. But with a structure like this in place, we are going to have monitoring and evaluation. I will not be surprised if every year has a different focused area. So, when a people set their minds to accomplish something as one, you cannot stop them and that is my hope in this one. So it is not as if one deep pocket is funding this, it is not tied to anything like that. It is the Diasporas themselves that are driving it and government is coming to enable them. You also know that our business environment has been very tough and that toughness means that people have refocused their minds on what needs to be done, rather than the traditional way of doing things. The Government has the ERGP and part of it is that they have been working on the ease of doing business. You and I know the changes that have taken place in the Corporate Affairs Commission (CAC) and on this programme, we have collaboration with the Nigerian Investment Promotion Commission, the Export Promotion Council the Infrastructure Regulatory Commission. These are agencies charged with promoting business growth in the country and they are there to identify areas where there are challenges from governments. They are on board as government agencies to work with the Diapora, to address those areas where there are challenges and because they are government they know who to reach out to, they know who to speak to to get these things done. The structure of the programme is that we have government agencies speaking during the programme, so they will be able to Continues on page 27

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INTERVIEW ‘ExxonMobil supported us with training, positive feedback and huge patronage’ OBIDIKE UZU is the Managing Director of Global Process and Pipeline Services Ltd (GPPS), the only Nigerian company focused solely on process and pipeline product service line for the oil and gas sector. In this interview with FRANK UZUEGBUNAM, he talks about the company’s brand new office complex/operations base, local content in the oil and gas sector amongst other issues. Excerpts: Congratulations on your brand new office complex/operations base in Port Harcourt. How did the company get to this enviable position? lobal Process and Pipeline Services Ltd (GPPS) was formed in 2002 but commenced operation in 2010 as a frontline oil services company, showcasing Nigerian indigenous capability on land, swamp and offshore terrains. Over the years, we have built our reputation on professionalism and quality service delivery in the oil and gas sector, without compromising safety and quality standards. We have continued to provide value, reliability, and technically effective solutions to our ever-increasing clientele base. Our critical success factors include, massive in-house capacity in terms of fit for purpose equipment; competent, dedicated and resilient workforce; extremely commendable track records; and unbroken focus in our core areas of competency. Our robust and successful collaborative management style is tied to strict ethical standard adherence. We have encouraged our worker force to own and adopt high safety awareness and environmental consciousness. GPPS currently has the largest in-country pumping, process and pipeline services’ equipment fleet, capacity and competency with uncommon focus within this product service line in Nigeria. Beyond that, our top-down approach to Health, Safety and Environment, fosters a companywide “safety first” attitude suited to the needs of our clients. Obviously, the new office complex and operations base will further enhance our operational efficiency for a superior service quality delivery in line with the highest industry standards and best practices and in accordance with the tenets of ISO 9001:2015; with attendant commendations pouring in for such a young and dynamic company acknowledged by the oil industry giants like - Exxonmobil, Total, NLNG, Shell Companies in Nigeria just to mention a few. We use the most fit for purpose equipment on all our projects. Anyone can rent equipment but using GPPSL equipment means reliability, efficiency, deliverability based on the best in-class industry preventive maintenance standards. What will you say are the achievements of GPPS since the take-off of the company? We are proud of our rapid growth and this has been attested to by African Business Review report listing us among the top 10 fastest growing company in Africa in March 2014. I can boldly say that we own the

Obidike Uzu

SNEPCo. There are times we have shown superior capacity ahead of the multinational service competitors. In one of the cases, we were told that it is not possible for a local company to score higher in technical bid (capacity) than a multinational service provider, even though we did scored higher. Secondly, some operators are afraid of insurance liability and escalated project cost that may arise if the said local company becomes unable to deliver as required. Some local companies just want to be agents without capacity. Some of these issues are being addressed by the new dynamic NCDMB team who are assuring competent Nige-

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We are a great success story of collective collaboration of Nigerian talents that is strategically organized to harmoniously work together for the continuous development of a high standard brand in Africa

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largest fleet of resources in Nigeria for our line of business. We have become a superior brand name in the pre-commissioning and pumping industry with numerous awards and we have ramped up our safety and quality operating delivery to the admiration of our clients. We are a great success story of collective collaboration of Nigerian talents that is strategically organized to harmoniously work together for the continuous development of a high standard brand in Africa. GPPS is the only Nigerian company focused solely on process and pipeline product service line with major projects completed in the deep-water applications and has attracted the best hands in the industry from the multinationals to work for her with an expansion plan into other Sub-Saharan Africa countries. There are accusations that most International oil companies (IOCs) operating in Nigeria devise various means to evade complying with the Nigerian Content Act but here you are, reeling out IOCs who believe in you. We came from the background of having been employed by IOCs, multinational service companies and now as a service provider, I can frankly tell you that IOCs are happy to patronize competent and reliable local companies once they are sure that the local companies will deliver at acceptable ethical, safety, quality and industry specific standards and best practices. ExxonMobil for instance have greatly supported us from origin with training, positive feedback, and huge patronage which catapulted our growth to this enviable capacity; and also delivering good services to Total E&P, Chevron and

rian companies of patronage, fair evaluation and strict adherence monitoring. How would you assess process and pipeline services as it concerns competency and capabilities of local companies in Nigeria? Despite their unsteady start, locally owned firms continue to play a significant part in the oil and gas ecosystem in Nigeria. There is still depth of competence and capable of local companies in Nigeria for this product service line; however, GPPS has differentiated herself with her top-down exceptionally competent management team. We have attracted the best hands in the industry from the multinational companies to work for us. Our Competency level is very high with unrivalled capabilities. Our strategic focus is foster a culture of continuous learning and competency program for our people development and human capacity enhancement. We have trained our next level managers in some world best institutions like Harvard and Cambridge Universities. We are increasingly becoming the resource base (equipment and people) for this product service line in the Nigeria market. So can we say that GPPS is a product of Nigerian Content initiative? Absolutely yes; we are proudly Nigerian; and a product of the Nigerian Content Initiative. The leading Nigerian company operating on international standards and industry best practice in her product service lines. This is a brand that should be promoted into other parts of the world. I must commend the Nigerian Content Development and Monitoring Board (NCDMB) led by the Executive Secretary, Simbi Wabote, for the giant strides recorded under his leadership. They are aggressively propagating the clear essence of local content in creating opportunities and local engagement for very organized and capable Nigerian companies. What do you think should be done to deepen local content adoption in the country? The future for Nigeria’s oil, gas and energy industry is very promising comparatively. The sector is relatively open, the regulators, operators and service providers must learn to work with each other and create value under a common and transparent set of rules for years to come. Prior to the content ACT, the local and in country capability was only in a sort of closed environment; and a supportive governance structure did not exist while foreign firms monopolized all the specialist management and technical teams including access to capital. Today,

we have increased participation of capable local companies in the sector. More importantly, to deepen local adoption, we should put in place proven systems for monitoring and assessing performance of the local companies; demanding feedbacks from the operators on the performance of the local companies post-work completion. We should have an incentive to encourage and drive technology transfer from multinationals to local companies and finally, we need to establish a transparent template for competency and capacity verification; with a repository of in-country database which will form the basis to subject IOCs to use them. Apart from the Nigerian Content Act, do you see any other policy that is helping to shore up indigenous participation in the industry? A logical first step to shore up indigenous participation is the mixing of local and international expertise, consultants and local graduates. In the oil and gas, it is almost the norm to have multicultural and multidisciplinary teams, especially in technical and operations areas. Despite the logic, finding and maintaining the right talent and mix is one of the hardest parts for an oil services firm to get right. There is no doubt that the private sector and the government have much to do in the area of human capital development. We need to further equip our higher institutions with the millennium teaching aids and curriculum to be in tandem with industry needs. In terms of access to capital, given the size, attractiveness, and openness of the Nigerian economy, and fundamentally the NCDMB intervention fund, we potentially have funding options. However, historically the local market has not had the experience in providing funding capital to the process and pipeline services business area and in some cases the banking rules classify us as high-risk ventures because of the fragmented contract structure, although this is changing. Where do you hope to take GPPS in the near future? Our goal is to turn GPPSL into a global brand, spreading into other countries. We have no doubt that GPPSL would become the obvious market leader in her product service line, especially in Africa. I see GPPSL expanding her footprint and geography into other Sub-Saharan Africa countries in the nearest future. And in terms of financial success, I see GPPS doubling her current revenue base with massive ramp-up on operational deliverability and efficiency in the near future. Thank you.

BUSINESS DAY

Thursday 29 November 2018

Corporate Social Impact

Onuwa Lucky Joseph (08023314782) Editor.

Why Bill Gates’ new obsession with toilets? slab covering the soak-away and drain the waste using their pipe. A notable pioneer of this trend, his with mobile public toilets, was the guy popularly known as Otunba Ghaddafi, the late Otunba Isaac Durojaiye. He popularized that Yoruba saying “Owo Igbe Kii Run”. It’s difficult to straight translate that to polite company but you could paraphrase it as meaning the financial gains from waste evacuation is the ultimate deodorant. Today, there is a National Union of Sewage and Waste Waters Disposal Association. They are in on the money, no matter what all the snooty noses think.

Onuwa Lucky Joseph

t’s possible that your reaction after reading the headline was, “these White People self”! That’s except you’re one of those who already heard about it and know for a fact that the second richest man in the world has not suddenly developed a revolting fixation with bowel movements. As it turns out, it is not really about Bill Gates, or even about the West. It’s about the deaths caused everywhere by lack of access to good toilets. It has been that way for centuries, which is why the United Nations saw it fit to dedicate a day to commemorating the world’s need for functional toilets that leave people relieved but healthy thereafter. The slogan for this year’s campaign is ‘When Nature Calls, We Need A Toilet’. The unsavoury thing about nature’s call, as we all know, is that it is usually without prior notice; and I’m sure we all can relate. Stories have been told of that time when someone was traveling inter-state and had to make a mad dash for the bush after prevailing on the driver and other passengers to have mercy. Or those times in traffic when you made strenuous effort to hold it in, seeing as there was nowhere to go. But how long can anyone hold in something so intent on being evacuated? I remember back when I worked in Victoria Island and had to go through Obalende on my way back home on the mainland. It was always a stomach churning sight to see street urchins perched indelicately on the bridge railings to defaecate right there by the bus stop. It was, to say the least, sickening. It’s easy to brand the urchins as never-do-wells who would rather the freedom of open defaecation than the confinement that civilized folks put up with when nature calls. The question is, how well does our society help those of us who would rather be ‘civilized’? Most cities in Nigeria leave you no choice but to get street smart and look for corners out of sight where you can help yourself. There still exist offices that have no provision for toilets. While that is unlikely to be the experience of many reading this piece, that’s still the way it works in some places. Been to some of our tertiary schools? I shouldn’t belabor the

point. But there again, it’s sickening. Most students avoid their toilet altogether, in view of their unsanitary conditions and lack of water. You hear students mouthing some aberrant coinages like ‘short put system’, etc. which should have no place with the human experience in the 21st century. It is a shame when ASUU would leave out important matters like these and dwell solely on salaries and allowances whenever they decide to down their chalks or whiteboard markers. Our public tertiary institutions are, collectively an eyesore, especially for anyone who while there has to undergo the unfortunate experience of heeding nature’s call. WHAT’S BEEN DONE ABOU OUR TOILETS AND WASTE MANAGEMENT? Are we doing anything about it? You bet, not much. Toilet management does not sound like one of those important things that the state or any serious concern should devote resources or time to.

It just sounds rather crude to even be discussing it. It’s too private a matter and individuals have or should find their individual ways around it. Please leave the state out of it, thank you. Leave the authorities, out of it, thank you. Unlike in the developed world where the sewer system brings water in and takes away the waste to clean up in a processing plant, undertakings of such nature are not attractive to the Nigerian state, self-acclaimed Giant of Africa. Even though there are a few waste water treatment plants, public and private, they are dreadfully inadequate considering the ever bourgeoning population. And so, waste water finds its way, having not been treated, back into general bodies of water which are used for drinking, bathing, cooking, etc. thereby increasing the potential for epidemics. A few gutsy entrpreneurs saw potential in this overlooked area and launched themselves big time as private waste evacuators. They drive in their tanker, tear open the

BILL GATES’ REINVENT THE TOILET CHALLENGE We know Bill Gates to be interested in the eradication of polio and malaria. He’s pumped in 100s of millions of dollars to help achieve that. In fact, but for the tragic trio of Nigeria, Pakistan and Afghanistan, the war against polio would have been well and fully won. However, the new tilt towards toilets is because toilets are a major cause of diseases, namely diarrhoea and schistosomiasis. In fact, it’s as well been proven that stunted growth can be a result of people being exposed to human faeces either due to lack of toilets or refusal to use available toilets. In view of these adverse health conditions being wholly preventable, Bill Gates is deploying his considerable war chest to seeing that humanity makes progress along that line. He instituted the Reinvent the Toilet Challenge, an ‘effort to develop “next generation” toilets that will deliver safe and sustainable sanitation to the 2.5billion people worldwide who don’t have it. The awards recognize researchers from leading universities who are developing innovative ways to manage human waste, which will help improve the health and lives of people around the world. At the end of the first round, the following universities were adjudged winners California Institute of Technology (Caltech) - $100,000 first prize for designing a solar powered toilet that generates hydrogen and electricity Loughborough University, UK - $60,000 second prize for a toilet that produces biological charcoal, minerals, and clean water. (Clean water!) University of Toronto, Canada

- $40,000 for a toilet that sanitizes faeces and urine and recovers resources and clean water. (Clean water again!) The Round 2 Winners of the Challenge got a lot more: Cranfield University - $810,000 grant to develop a prototype of its unique toilet that removes water from human waste and vapourises it using a membrane system Eram Scientific Solutions Private Ltd – $450,000 – to help make public toilets more accessible to the urban poor via the eco-friendly and hygienic eToilet. (Doesn’t sound much different from Otunba Ghaddafi’S idea) RTI International – N$1.3million – to develop a self-contained toilet system that disinfects liquid waste and turns solid waste into fuel or electricity University of Colorado, Boulder - $780,000 to develop a solar toilet that uses concentrated sunlight The way the toilet works is this: After someone uses the toilet, the lid is closed. The bowl turns 270degrees to deposit the waste underneath. Solid waste falls to the bottom. It’s then deposited in a chamber where the waste is then burned to ash The family empties the waste tank once in a week Liquid waste filters through a series of membrane filters The resulting water is then stored in a reservoir, though it’s still not clean enough to drink. It can be used for cleaning or watering plants Clearly, Nigerian universities and polytechnics are missing out on a good deal. Imagine if one of them won any of the prizes. The talk about government subvention, etc. would not be as loud as we hear it. We need to be a lot more ingenious rather than being the ones needing help from everybody. Our young capable, rightly incentivized can do a whole lot. Even our old folks. But our priorities are in the wrong places. Toilets don’t get any rich Nigerian’s attention. Hardly even gets government’s attention. But solving that one problem has potentials for making the country a much healthier place. Going forward, Nigeria’s rich people, corporates and well-endowed foundations should find ways to address issues that have existential consequences for Nigerians.

Thursday 29 November 2018

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BUSINESS DAY

Corporate Social Impact

Mutual benefits assurance sponsors national badminton championships R

emember the days of Samson Egbeyemi? Nigeria was quite a force then, in the 80s. The man Egbeyemi was a fixture on the local and international badminton circuit for years until age took its toll and since then, Nigeria has not been able to produce another top notch player like him. Thankfully, Mutual Benefits Assurance is trying to fix that with its sponsorship of the National Badminton Championships. At the event, Mutual Benefits chairman, Mr Akin Ogunbiyi said re-launching Badminton nationally and to a new generation is his company’s way of giving back to the society which is in sore need of becoming competitive again. He also said “Youth empowerment through the development of sports has been a key focus of the company’s of Mutual Benefits CSR activities”, its commitment “driven by the need to provide an avenue through which gifted youths can develop their talents, receive mentorship and ultimately do the nation proud at international competitions”. While volunteering that the company was sponsoring different youth empowerment programmes in the country, Ogunbiyi said that the championship was an expanded event that featured 20 more players than the 140 that participated last year. Francis Orbih, chairman Badminton Federation of Nigeria was full of gratitude that Mutual Benefits Assurance had kept its promise of ensuring that the Championship would be an annual event. We look forward to next year. NIGERIA BREWERIES REVS UP DON’T DRINK AND DRIVE CAMPAIGN End of year has a way of increasing fatalities on the road. While 2018 may have been a tough year, all things considered, end of year is end of year. So even if just out of sheer gratitude for seeing the end of it, people are likely to lower their guard and imbibe a little too much for their own good even as they hit the road.

Nigeria Breweries Plc, conscious of its status as one of the top brewers and marketers of alcoholic beverages in Nigeria, is doing its best to ensure that people don’t drink and drive this season. Especially this season. Drinking and driving is wrong at any time but more so at end of year when more people are likely to be driving under the influence. This Don’t Drink & Drive campaign has been on for 11 years now and always activated at yuletide. This year, as it’s been for some time now, it’s being done in collaboration with the Federal Road Safety Corps (FRSC). And at the kick off in October, with the National Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN), Tanker Drivers, Luxury Bus Drivers, as well as Keke NAPEP and Okada Riders and NYSC members in attendance, Jordi Borrut Bel, MD Nigeria Breweries, reiterated the purpose of the campaign which he described as a corporate social respon-

sibility initiative to ensure safety of lives on the road. The campaign, he said, is a national one comprising, amongst others, enlightenment rallies for drivers in various cities, awareness messages on print and electronic media, free blood pressure and eye tests, etc. Boboye Oyeyemi, Corps Marshal of the FRSC commended the ‘laudable campaign’ and urged other corporate organisations to emulate it, saying that the impact on road users, especially commercial vehicle drivers, has been tremendous. OAU Wins First Bank-Sponsored Ethics Challenge Ethics is a big deal in Nigeria, the predominant feeling being that Nigerians, especially the younger folks, have no appreciation of what it represents. Nigeria is clearly ethics challenged; no feel for right and wrong. A growing proportion of Nigerians do what they feel they must in order to survive, the end fully justifying the means.

It should not be so. No society goes far that has no clearly defined sense of right and wrong. More serious societies codify this in such a way that it’s easily accessible and comprehensible and with government approved bodies to monitor compliance. Well, that yawning gap now has First Bank to contend with. And the bank is going at it via the Ethics Challenge, originally conceived by the CFA Society of Nigeria, a competition amongst Nigerian universities that is aimed at promoting the highest standards of ethics, education and professional excellence with particular regard to the investment industry. Don’t forget, that’s the First Bank catchment area. At the preliminary round held in Abuja, (the other one was held in Lagos), the University of Nigeria, Nsukka (UNN) and University of Ilorin emerged winners. Those dropped were University of Abuja, University of Maiduguri and Madonna University. From the Lagos preliminary

round, University of Lagos, Obafemi Awolowo University, University of Benin and Babcock University made the qualifications. All in all, 15 universities took part in the Challenge. The obviously elated Team Leader of the Obafemi Awolowo University (OAU), Lawal Quadri was glad that his school moved up from its second lacing of last year to emerging tops at this year’s edition. “We are very grateful to CFA and First Bank. First Bank is an excellent host…other organisations should emulate First Bank in promoting ethics and bringing out the best in students”. Ini Ebong, First Bank’s Group Executive, Treasury and Financial Institutions, while assuring the CFA Society of its continued support could not help but blow his bank’s trumpet a little: We will be celebrating our 125th anniversary next year, and we wouldn’t have survived this long without ethics and corporate governance as vital components of our operations. The FCA Ethics Challenge aims to promote the highest standards of ethics, education and professional excellence in the financial and investment sector. DUNCAN MIGHTY SHOWS HIS GOOD BOY SIDE Port Harcourt First Son, Duncan Mighty made an old woman believe again. Obviously, being a senior citizen, she’s bound to have had her share of stress and disappointments. But she still had enough spirit left to dance to a Duncan Mighty track. The dance was picked up via Instagram and the music star decided to look for and surprise her. When they met, Duncan handed over the keys to a new car. All hers. She was beside herself, hardly believing her good fortune. Needless to say, she will do some Thanksgiving this November for the gift of dance. And health. And the young man who changed her perspective on things. Life is good for Mama the fan. You can say that again!

Nigeria can triple Diaspora remittances with formalised framework – Adejugbe-Williams Continued from page 24 speak and have people ask questions on the challenges of doing business, not political speeches. Tell us what is the challenge, what are the areas of intervention of government? We expect that this interaction will create the necessary interface for government and business to meet and talk on a technical level not as politicians. Once we can get that going, you find out that the challenges that have been hampering good businesses will begin to ease off and that is one of the goals of this programme which we shall be monitoring. When you have a collection of people with the same purpose and shared vision there is no stopping them. Different Diaspora organisations are coming together and we are in millions outside the country, we are enough to form a state. So you know that we are a formidable force that can make impact. We should start fixing what is wrong and eventually everything will fall into place. So we need to change our mindset about Nigeria and stop fixating on the negatives and look at what can be done to

encourage others to come in and that is the fantastic thing about what is going on now. The ease of doing business is better, is more conducive and people are seeing it and believing in it. What are the projections around the Diaspora fund? That is a hard one to answer as we said right now it is about $22 billion and we are thinking that by the time the Investment Trust Fund comes on and people buy into it, we are going to triple that figure very easily. However data comes and goes, subject to a lot of things on what people are doing but our hope is to triple the figure. Can you speak a bit on the Investment Trust Fund? It is still s teaser, right now we are developing it. We are going to launch it at the summit, and to launch it we are going to get stakeholders together pre-summit to meet with some of our collaborators and start discussing. We are also going to take lessons from what has worked in other nations to make sure that ours will be successful, we don’t want to make mistakes. In the process of doing the framework for the summit is it just for the Diaspora

Nigerians, or there is a meeting point between them and the people at home? How will it be managed, where will it be domiciled, who are qualified to be part of it and are there conditions? It is a collaborative effort to put this all together. I actually should not be talking so much about it because it is still in the works right now, that is why I say we will launch it and by that time, we will have all the modalities in place to give you accurate information . You are taking on a lot of sectors at the same time? Yes, ten sectors but some of them are in four clusters and within the clusters we give people opportunities. Take for instance the extractive, the challenges that we have is that most people, when you talk about extractive they are only looking at oil and gas but that is not all. For instance, mining is a huge field which we have done very little on here. Most mining is illegally done, it is done on a small and low scale but a lot is going off and there is no benefit to government from it. So if you take extractive as a sector you cannot also say you want to discuss extractive and not talk oil and gas, it is not possible. So within extractives, you have

different sectors coming in. So what we have is that we have clustered them into four main clusters but these are the ten main areas we are expected to look at. One other way to look at it is that when you think about the post oil economy, over these years, we have always been talking about GDP of Nigeria depending on how much a barrel of oil Nigeria is producing. But we are talking about a healthy economy and a post oil economy that we are now forced into. Maybe if there was no disruption in the oil economy we will not be talking about a post oil economy. But thank God that happened and it presents an opportunity so now we are looking at ourselves as one of the blessed nations on earth, there are lot of things we can do. But think about agriculture, I don’t know if anybody outside of this country would believe the amount of arable land uncultivated that we have. So if you have a Diaspora investor coming back home and wanting to invest in agriculture, the opportunities are just endless, whether in terms of inputs, technical tool and industrialisaed farming. If you look at the history of some of the countries, agriculture has lifted them up at moments of crisis.

In the 1930s America came out of the terrible Depression through agriculture. So it is like a free gift that we have that we are not tapping into yet. We are still at best may be 80 -90% farming is at the subsistence level, how do you turn that around to even creating the market. I like going back to the grassroots, to the people and enable them. By 2050 we will become the fifth most populous country in the world so how are going to feed all these people if we don’t have young people going into farming now? When you think about the entertainment sector, Nollywood is probably the biggest film producing industry in the world, but of course we have to work on our technicalities to make sure that it meets the standards. However when you make one film, you are directly employing about 150 people and they work for like two weeks and then within that, look at all the different sectors. The indirect jobs are in their thousands by making one film. So if we build that sector, it will grow further and they can now start generating the revenue that they deserve with the movies they make. So this summit is a fantastic initiative that we have built to yield greater things not for government but for our people because it is all about the people.

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Shaping people into a team

Green bonds benefit companies, investors and the planet vironmental score rose 6.1 percentage points on the Thomson Reuters’ ASSET4 scale, which is based on more than 250 key performance indicators such as CO2 emissions, hazardous waste, recycling and so on. They reduced their emissions by 17 tons of CO2 per $1 million of assets. Moreover, they increased their green innovations ― measured by the ratio of the number of “green” patents filed to the total number of patents they filed in a given year ― by 2.1 percentage points.

Caroline Flammer

he past five years have seen explosive growth in “corporate green bonds” issued to finance climatefriendly projects. While investors bought just $3 billion of these bonds in 2013, they scooped up $49 billion worth in 2017, bringing the total sold since 2013 to $113 billion at an average of $308 million per offering. A wide range of companies including Apple, Unilever and Bank of America have issued green bonds in recent years, and the trend is likely to continue. Despite this boom, little is known about the impact of these bonds. Have they delivered positive environmental results? Do they contribute to the issuing companies’ financial performance? The answer to both questions is a resounding yes. In a recent analysis of the 217 corporate green bonds issued by public companies globally from January 1, 2013, to December 31, 2017, I show that they yield a positive stock market reaction, improvements in financial and environmental performance, an increase in green innovations and an increase in stock ownership by long-term and green investors. HOW THE STOCK MARKET RESPONDS The issuers’ stock price increases around the announcement of green bond offering, indicating that investors expect the bonds to contribute to shareholder value. (New information is provided to the market on the announcement date, as opposed to the issue date. Further, the analysis includes the announcement date and the previous trading day to account for the possibility that some information may have been known to the public before the announcement.) In

this two-day event window the average cumulative abnormal return, or CAR — that is, the stock return in excess of the “normal” market return — was 0.67%. So, if the stock market (say, the S&P 500 index) goes up by 1% over these two days, the stock of the green bond issuer increases, on average, by about 1.67%. All other periods before and after the two-day event window yield insignificant CARs, which confirms that the results are not driven by unrelated trends around the time of the announcement. These results hold virtually steady even when adjusted for industry-specific performance and potentially confounding events like the announcement of equity issues, regular bond issues or quarterly earnings. Results do differ, however, depending on several variables. First, the stock price increase around the announcement of the bond issue is about twice as large for green bonds that have been certified by independent third parties such as Sustainalytics, Vigeo Eiris, Ernst & Young and CICERO. Some 69% of corporate

green bonds were certified by independent third-parties to establish that the proceeds are funding projects that generate environmental benefits. Certification is rigorous and costly, so certified green bonds likely represent a more credible commitment toward the environment, which could explain the stronger stock market response. Second, the stock price increase is larger for companies operating in industries where the natural environment is financially material to the firms’ operations. For those companies, green projects contribute more substantially to financial performance. Third, the announcement returns are larger for first-time issuers, compared to seasoned issuers. Arguably, first-time green bond issues, compared to seasoned issues, are more likely to provide new information to the investor community about the firm’s environmental commitment going forward. The second and third time around investors are already aware of the firm’s commitment to sustainability, which is reflected in

a weaker stock market reaction. IMPROVEMENTS IN FINANCIAL PERFORMANCE Green bond offerings are also associated with a 2.4% increase in long-term value, measured by the ratio of the firm’s market value to the book value of its assets. (All results are averages across all green bond issues.) Moreover, issuers of green bonds, compared to a control group of companies that issue bonds but not green bonds, saw an improvement in operating performance as measured by the return on assets, or ROA. In the long run (two years after the green bond issue), ROA increases by 0.6 percentage points. Because investments in green projects take time to pay off, higher operating profits only appear after two years, while no effect is found in the short run. BETTER ENVIRONMENTAL PERFORMANCE AND MORE GREEN INNOVATIONS Several measures suggest that after issuing green bonds companies improve their environmental performance. Their en-

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

INCREASE IN OWNERSHIP BY LONG-TERM AND GREEN INVESTORS Companies that issue green bonds also appear to adopt longer time horizons — which is particularly important given rising concerns about corporate short-termism. The long-term index (a measure of long-term orientation based on a textual analysis of the firms’ annual reports) of green bond issuers increases by 3.9 percentage points. Corporate green bonds also help attract investors who care about the long term and the environment. The share of long-term investors increases from 7.1% to 8.6% (a 21% increase), and the share of green investors from 3% to 7% (a 75% increase). Taken together, the findings that green bonds trigger a positive market response, improve financial and environmental performance and attract longterm and green investors, suggest that this relatively recent innovation in impact investing holds significant promise for fighting climate change globally — whether governments act or not.

Caroline Flammer is an associate professor of strategy and innovation at the Boston University Questrom School of Business.

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LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

Tax substitution: what the law says as FIRS seeks to recover taxes through commercial banks Jerome Okoro

ollowing its earlier expression of interest to go after alleged tax defaulters with huge funds in Nigerian banks, the Federal Inland Revenue Service (FIRS) recently started issuing letters to commercial banks, appointing them as tax collection agents for such customers. The letters contain directives to the banks to freeze the named accounts in order to facilitate tax recovery. This mode of tax recovery through third parties, known as ‘tax substitution,’ especially with the account-freezing dimension that FIRS introduced to it, has raised diverse reactions from various commentators. Some view the measure as a laudable scheme with good prospects of raising substantial revenue for government and blocking tax leakages. Others air their reservations on the appropriateness of FIRS’ approach when viewed in the mirror of relevant laws and its far-reaching economic implications for the Nigerian investment climate. This article identifies and responds to the legal controversies of tax enforcement through tax substitution with a highlight on the status and role of the notice appointing banks as taxpayers’ agents. POWER OF THE TAX MAN TO APPOINT AN AGENT FOR A TAXABLE PERSON Before the enactment of the Federal Inland Revenue Service (Establishment) Act, 2007 (“FIRS Act”), Sec-

tion 49 of the Companies Income Tax Act (“CITA”), 1990 and Section 50 of the Personal Income Tax Act (“PITA”), 1993 provided for tax substitution by the tax authorities. Section 31 of FIRS Act reproduced these already existing provisions as follows: “(1) The Service may by notice in writing appoint any person to be the agent of a taxable person if the circumstances provided in sub-

section (2) of this section makes it expedient to do so. (2) The agent appointed under subsection (1) of this section may be required to pay any tax payable by the taxable person from any money which may be held by the agent of the taxable person.” From the wording of the above provision, appointment of the agent is discretionary as it depends on the consideration of the tax authority

that such appointment has become expedient. However, the actual recovery of tax through an agent so appointed is subject to 2 conditions implicit in the above-mentioned laws, namely: That money is held by the agent; and That tax has become payable by the taxable person. WHEN IS TAX PAYABLE?

The second condition in Section 31(2) of the FIRS Act embodies the knotty issues of tax substitution. It raises the cardinal question: when does tax become payable by a taxable person to warrant tax recovery through a FIRS-appointed agent of the taxable person? Generally, the process of income tax payment commences with tax assessment – computing the tax liability of a taxable person. Section 65 (1) of the Companies Income Tax Act (“CITA”) by which companies are taxed enables FIRS to raise an assessment on a company when the time allowed for the company’s submission of its audited accounts and returns has expired. Section 54(1) of the Personal Income Tax Act (“PITA”) which applies to individuals and other unincorporated entities, makes a similar provision. There are two broad types of tax assessment namely: assessment based on a taxpayer’s returns and Best of Judgment assessment. The former is computed with information from the tax payer’s returns and audited financial statement which can be verified by the tax authority. With the introduction of Tax Administration (Self-Assessment) Regulations, 2011, self-assessment provisions in existing tax laws like Sections 52(2) and 53 of CITA and Section 44 of PITA came to life as taxpayers started embracing the self-assessment mode. The selfassessment regime offers taxpayers a voluntary compliance opportunity whereby they compute and pay their Continues on page 31

Legal practitioners must prepare for massive technological advancements – Supreme Court Judge …As industry experiences major shifts in practice development

onourable Justice Amina Adamu Augie of the Supreme Court, has said that the apparent shift and pace of legal practice and client expectations is compelling lawyers all over the world to make critical changes to their practices and Nigeria should not be left out. The Supreme Court Justice, made this observation at a colloquium to mark the silver jubilee celebration of Kenna Partners, themed, “Footprints in Law & Society: Towards a paradigm shift. Justice Augie, who made the lead presentation at the event, stated that the traditional ways of law practice is gradually evolving and lawyers in Nigeria who do not advance with these developments would naturally be left behind. According to her, critical issues, such as attorney-client communication, client acquisition, analysis of legal documents and most importantly, and conduct of proceedings in court beginning to take a totally different

shape with the use of technology She said, “Technology is the driving force behind this evolution. In this day and age, lawyers have to contend with technological advancements that threaten to render obsolete, the ways that previously characterized the practice of law. “There has been an apparent shift, change and increase in the pace of legal practice and client expectations, which has compelled lawyers in every clime to shape up or shape out,” Augie said. Quoting Professor Richard Susskind, the Supreme Court justice affirmed his position that the legal profession has until early next decade to prepare itself for massive technological advances that will reshape the industry. According to her, the social functions of law depend largely on the effectiveness of the law in that society, and this further depends on the relevance of the law to the society. “There is no gainsaying the fact

that there have many distinctive footprints in the development of law that have triggered a paradigm shift in the society. The adjustment towards the better dispensation of justice is a collective effort,” she said. She thus, urged members of the society not to use the law as a means of mischief or frivolity, and lawyers not to aid their clients in these acts. “Lawyers must constantly keep in mind that their first allegiance is to the law, as society’s organ of justice, and Judges must remain uncompromised and unwearied in administering justice. Going forward, all of us must put our hands together to promote the common good through the laws in order to bring about social and economic equilibrium in the society that will be a good lesson for the next generation to ponder over,” Justice Augie said with a note of finality. Earlier, in her remarks, the Chairman of the occasion, Chief Folake Solanke, the very first female Senior Advocate of Nigeria (SAN) noted the relevance of the anniversary theme as it challenged lawyers, judges and even

court users to consider their present footprints in law and society, and contemplate where the legal profession is going, in order to have a paradigm shift to ensure the efficacy of the law and society. Solanke said, “Judges and lawyers should relate to that shift. In so doing, we must be careful not to throw away the baby with the bath –water. Not everything that we do now is bad.” She continued, “Currently, there is unanimity on the poor standard of professional practice, particularly of some new wigs. Recently, I discovered one of the reasons for the poor quality of some graduates in our beloved country. This is it- Educational authorities now descend to the low, substandard of the indolent students in the universities and the Law School, by fixing the pass marks in examination below 50%. Last century, I taught Latin and Mathematics in England and Nigeria, and I am resolute in my conviction that any percentage below 50% is a failure. “I understand that the Joint Admissions and Matriculation Board

(JAMB) itself scores 120 out of 400. That is 30%! “Infandum” (Unspeakable). Woe upon woe, our institutions in their discretion, erroneously accept 40%, 45% and 48% as pass marks. No wonder, em-

WORDS ON MARBLE I appeal to the Federal Minister and State Commissioners of Education, Nigerian University Commission, JAMB, Dean of Faculties of Law, Vice Chancellors, Principal of Schools and Colleges, parents, grandparents, the Media organizations, NGOs, the great and the good here present, and the public to protest vociferously that the policy of a pass mark below 50% must end NOW in order to the end the unacceptable deterioration of educational standard. Here, we need not only a paradigm shift, we need a paradigm swift shift. Continues on page 31

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BDLegalBusiness

Courts to begin vacation December 24th Magistrate brutally murdered in Imo State Theodora Kio-Lawson

he Lagos State High Court will be on vacation from December 24 to January 4 next year. The Chief Judge Justice Opeyemi Oke approved the vacation in accordance to powers conferred on her, pursuant to Order 45 Rule 4 (c) of the High Court of Lagos State (Civil Procedure Rules, 2012. A statement by the Chief Registrar, D. T. Olatokun said work would resume on January 7, 2019. The statement said arrangements had been made to deal with urgent cases during the vacation. It said: “Arrangements for dealing with urgent cases during the Christmas vacation are that each judge will deal with all urgent applications related to any substantive cause already assigned to him/her. “Any urgent application, the

substantive cause of which has not already been assigned will be dealt with by the judge to whom the application is specially assigned. “Notwithstanding the provision of Order 45 Rule 4, any cause or matter may be heard by a judge during the period of the Christmas vacation where such a cause or matter is urgent and provided that the condition prescribed by Order 45 Rule 5 shall be observed and complied with.’’

NBA-SBL Council celebrates outgoing Chairman, Olumide Akpata in style SEE PHOTOS:

Magistrate, presiding over the Magistrate Court in Ubulu, Orlu-West, local government area of Imo State, R.C. Ogu was brutally murdered over the weekend in Imo State. The lifeless body of the magistrate was said to have been found lying on Amucha road in Njaba Local Government Area of Imo state on Friday November 23rd, 2018. Giving an account of this development, a member of the Nigerian Bar Association (NBA), Orlu branch, Chukwura Onuora said, “The sight of his lifeless body lying in the pool of blood has been very upsetting. The deceased was well known to me. This is a very sad and unfortunate incident. Our hearts are really heavy. There are too many unanswered questions.” BusinessDay learned that the deceased father and siblings are also members of the legal profession. While his younger sister is a member of NBA Owerri branch, his younger brother is a member of the Orlu branch of the association. Further reports reveal that his father is also a veteran of the legal profession. Commenting on the incident and the protection of judicial officers, the Publicity Secretary of

NBA Orlu branch, Nnamdi Okafor, stated, “We have a situation in Imo state where even High Court judges struggle for court duty police officers/orderlies, talk more of Magistrates. We have taken some resolutions at an emergency meeting yesterday and shall be writing officially to the National Body of the NBA shortly. Colleagues and members of the association have described the killing as heartless. “I pray that the perpetrators of this dastardly act be brought to book. May the Holy Spirit comfort all those he left behind,” the a member of NBA, Orlu branch said. Since the incident on Friday, there has been an outpouring of condolence messages from colleagues and well wishers to the

deceased family and the local NBA branch. One of such messages read, “On behalf of Oleh branch, I send our heartfelt condolences for this tragedy. We pray Jehovah grant the branch, Judiciary and family the fortitude to bear the irreparable loss, and this untimely death not happen again.” This was the official Condolence of the Publicity Secretary of NBA, Oleh branch, on behalf of the members. Ogunjide Gbemiro of Gwagwalada branch said, “Highly pathetic and seriously disturbing. Please accept our condolences to the Bar and Bench in Orlu. May God comfort the family and strengthen the Branch. The entire Gwagwalada Branch of the NBA are with you in prayers.”

Thursday 29 November 2018

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LegalBusiness

GreyMatter

What Changes does the Revised FX Manual 2018 bring to the FX Regime in Nigeria?

he Central Bank of Nigeria (“CBN”) recently released a “Revised Edition” of its Foreign Exchange Manual (“revised FX manual”). The CBN has powers – pursuant to section 1(2) of the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act, 1999 [Cap. F34, Laws of the Federation of Nigeria 2004] (“Forex Act”) – to issue from time to time, subject to the approval of the Minister of Finance, guidelines to regulate transactions in, and operations of, the Nigerian Foreign Exchange Market. According to a Circular dated July 26, 2018, issued by the Trade and Exchange Department, CBN, and referenced: TED/FEM/FPC/GEN/01/004, the revised FX manual has, with effect from August 1, 2018, repealed and replaced the Foreign Exchange Manual 2006 (“old FX manual”). The revised FX manual was necessitated by the need to review the old FX manual, with the aim of incorporating into the Nigerian foreign exchange (the “FX”) regime various policies and contemporary developments, which had taken place in the Nigerian FX market since 2006 when the old FX manual was issued. The revised FX manual

(“eCCI”) has replaced the use of the physical Certificate of Capital Importation (“CCI”) for the confirmation of inflow of foreign currency or goods. Another change of a general nature is the replacement of the physical Form “M” with Electronic Form “M” (“e Form M”) for import of goods and capital while Certificate of Origin (“CO”) has replaced the Combined Certificate of Value and Origin (“CCVO”) used under the old FX manual. In line with the CBN’s current FX rate liberalization policy, the revised FX manual defines Exchange Rate as “the prevailing market rate as published daily by the CBN” whereas there was no specific description of what comprised the “exchange rate” under the old FX manual. In order to enhance regulatory compliance among FX market participants, the revised FX manual made amendments to Appendix II of the old FX manual. Appendix II outlines offences and sanctions applicable to FX transactions, in accordance with sections 29 and30 of the Forex Act. Accordingly, from the effective date of the revised FX manual: Where a bank fails to deliver to the CBN funds (FX) sold by the bank, the sanctions applicable

with inadequate documentation is also an offence under the revised FX manual. For this offence, the penalty is the same as the offence of failure to return unutilized balance of FX to the CBN. Non-compliance with the requirements/provisions of the Export Guidelines is an offence under the revised FX manual. Accordingly, new sanctions have been imposed in respect of Exports-related contraventions. Thus, non-repatriation of export proceeds as required (within 180 days for non-oil exports and 90 days for oil & gas exports) shall attract a penalty of 1% of the amount of the outstanding export proceeds. Similarly, delay in the issuance of the Clean Certificate of Inspection (“CCI”) by any PreShipment Inspection Agent (“PIA”) later than 72 hours (for non-oil exports) and later than five working days (for oil & gas exports) after inspection and receipt of all relevant documents, shall render the PIA liable to a fine of 25% of the service fee due to the PIA on the affected transaction. Also, any export (both non-oil and oil & gas) done without the proper Application Form for commercial export of goods and services (“Form NXP”) and proper

Legal practitioners must prepare... Continues on page 29

ployers now say that some Nigerian graduates are unemployable,” the Senior Advocate said. Solanke, therefore, appealed to the Federal Minister and State Commissioners of Education, Nigerian University Commission, JAMB, Dean of Faculties of Law, Vice Chancellors, Principal of Schools and Colleges, parents, grandparents, the Media organisations, NGOs and the public to protest “vociferously” that the policy of a pass mark below 50% must end NOW in order to the end the unacceptable deterioration of educational standard. Here, we need not only a paradigm shift, we need a paradigm swift shift. Also speaking of paradigm Shifts, Odein Ajumogobia, SAN who was also a panelist, held the view that lawyers by their very nature were the architects of transformation and reforms. He said, “It is the law and lawyers by their advocacy and conduct that have enabled the transformation, development and reform of human society and its institutions to create an orderly and predictable environment in which all can thrive and where the right to swing my arm cease, where to do so would constitute an assault or battery, and the attainment of justice according to law in each individual case is assured,” In his remarks, Damian Dodo, SAN said, “The time has come for a paradigm shift in our attitude, our conduct as lawyers and our role as advocates of the rule of law.” The 25th Anniversary Celebration of the law firm held at the Oriental

Hotel, Victoria Island, Lagos, with key members of the legal profession and the business community present. As part of anniversary celebrations, the firm also unveiled a book titled: Brief Insights: a Selection of Milestone Cases, which chronicles some notable decisions of the Nigerian Courts. Among those who graced the occasion were, Chief Folake Solanke, SAN, Honourable Justice, Amina Adamu Augie, Odein Ajumogobia, SAN, Damina Dodo, SAN, Dele Adesina, SAN, Seni Adio, SAN, Pascal Dozie of MTN, Jim Ovia of Zenith Bank, alongside several other distinguished members of the bench, the bar, and the business community. According to the Principal Partner, Professor Fabian Ajogwu, SAN, the occasion of the firm’s anniversary marks its growth and achievements for the last 25 years, - these achievement he said, includes its people, as well as its culture of excellence in the practice of law. In his words, “The past 25 years, has been interesting. We have been privileged to work on several significant assignments of national importance and milestone essence, all as a team within the firm. We have built capacity and credibility and improved our operations and efficiency with heavy investments in our people and information technology enhanced platform. We have indeed been able to continue with the pursuit of excellence.” CHIEF ‘FOLAKE SOLANKE, SAN, CON First Female Senior Advocate of Nigeria At the 25th Anniversary of Kenna & partners.

Tax substitution: what the law... Continues on page 29

was also intended to streamline documentation requirements, enhance transparency of transactions and engender compliance by stakeholders in the FX market. This article highlights some of the notable changes which the revised FX manual introduced to the regulation and processing of FX transactions in Nigeria. GENERAL CHANGES The revised FX Manual comprises several changes; some of which are general (rather than specific in nature). These include (i) the mode and form of certain required documents (ii) revision of offences and sanctions; and (iii) inclusion of two new schedules; the details of which are outlined below. Some of the general changes introduced in the revised FX manual reflect the technological, innovative, administrative and policy measures which the CBN has taken, in recent times, to align transactions in the FX market with the overall goal of the extant Monetary, Credit, Foreign Trade and Exchange Policy Guidelines in the country. Accordingly, a few concepts have been redefined under the revised FX manual. For instance, Capital Importation now denotes the “inflow of foreign currency or goods (plant, machinery and equipment) mainly as equity/loan”. This was stated to be “mainly as equity” only under the old FX manual. Similarly, the Electronic Certificate of Capital Importation

shall include interest to be charged at LIBOR plus 1% or 2% (as may be determined by the CBN) until funds are credited, and these sanctions also now equally apply to Forward Contract transactions. The applicable LIBOR rate was not specified under the old FX manual. Failure or delay by banks to render appropriate returns to the CBN on their FX transactions (Nonrendition/Late Rendition) attracts penalties. Whilst non-rendition of daily returns attracts same penalty of Four Thousand Five Hundred Naira (N4,500) under both the old and revised FX manuals, the sanctions on monthly returns have been amended. Accordingly, monthly returns not rendered by the tenth day following the reporting month (this used to be the day following the reporting month under the old FX manual) now attracts penalty of Ten Thousand Naira (N10,000) daily until the returns are rendered (this used to be N4,500 daily under the old FX manual). Failure by a bank to return unutilized balance of FX to the CBN, as required, is now an offence under the revised FX manual. For this offence, the bank shall return the unutilized funds (FX) with interest charged at LIBOR plus 5%. A penalty of Two Million Naira (N2,000,000) shall also be imposed on the erring bank in addition to the CBN repurchasing the funds at the ruling rate/CBN buying rate at the time of such repurchase, whichever is lower. To be continued next week Consummating FX transactions

issuance of CCI due to the fault of a PIA shall have the affected PIA queried and warned. Persistent defaults in like manner for six months shall have the contract of the PIA terminated. Where it is established that this fault is not that of the PIA but of the shipping line/agent, it shall be reported to the Nigerian Shippers Council for appropriate sanctions. Furthermore, failure of a PIA to report attempts to export substandard goods attracts immediate query, warning and subsequent suspension; defaults in filling Form NXP by any oil & gas exporter and/ or in the payment of Nigerian Export Supervision Scheme (“NESS”) levy would result in the non-processing of such an exporter’s export permit by the Department of Petroleum Resources while non-payment of NESS levy within thirty (30) days of the shipment date, for oil & gas exports, shall attract a penalty of 25% of the outstanding NESS levy; among other sanctions.

taxes, and then file self-assessment returns with evidence of the payment. The essence of formal assessment here is to confirm the accuracy of the payment. Where the taxable person fails to comply with self-assessment requirements, the self-assessment tax provisions still require the tax authority to raise administrative assessment prior to tax recovery. This indicates that in the absence of voluntary compliance, tax assessment and the opportunity of objection are indispensable. Sections 65 (2)(b) and 65 (3) of CITA; and sections 54 (2) (b) and 54 (3) of PITA make similar provisions on Best of Judgment Assessment. In both cases, the two circumstances warranting a Best-of-Judgment assessment are that: (a) The tax authority refused to accept the audited financial statement and returns filed

by the taxable person; and (b) The taxable person has not submitted returns within the prescribed period or might not even have been in the tax net (i.e. has not registered and obtained Taxpayer’s Identification Number) but the authority has cause to believe that the person is liable to tax. Best of Judgment assessment also buttresses the tax law position that with or without returns or financial statements from a taxable person, FIRS must first issue an assessment and let the objection and appeal periods run out before any attempt at enforcing payment. To be continued next week Dr. Jerome Okoro is a Senior Associate at AELEX, a full-service commercial and dispute resolution law firm in Nigeria and Ghana, and a member of the firm’s Tax Practice Group.

PHOTOFILE

To be continued next week The Grey Matter Concept is an initiative of the law firm, Banwo & Ighodalo DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm or serve as legal advice. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.

Mining partner, Warren Beech was discussing the Mining Charter & “key themes that hve affected the mining industry in 2018” at the Council of the South African Human Resources Association (SACHRA)’s breakfast seminar.

Hogan Lovells Partner, Osborne Molatudi together with Phetheni Nkuna, senior associate, talked about the strike law & the new LRA amendments & Cannabis ConCourt judgement implications for the workplace at the South African Human Resources Association (SACHRA)breakfast seminar recently.

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Ethiopia overtakes Dubai as top source of air traffic to Africa

thiopia has overtaken Dubai as a conduit for longhaul passengers to Africa, highlighting the success of the state airline’s expansion drive and the reforms of its new prime minister. Travel consultancy ForwardKeys said on Wednesday that Addis Ababa airport had increased the number of international transfer passengers to subSaharan Africa for five years in a row, and in 2018 had surpassed Dubai, one of the world’s busiest airports, as the transfer hub for longhaul travel to the region. Analysing data from travel booking systems that record 17 million flight bookings a day, ForwardKeys found the number of long-haul transfers to sub-Saharan Africa via Addis Ababa jumped by 85 percent from 2013 to 2017.

Transfers via Dubai over the same period rose by 31 percent. So far this year, Addis Ababa’s growth is 18 percent, versus 3 percent for Dubai. Dubai has long been a major global air travel hub because it is the base of Gulf carrier Emirates. Given the lack of an “open skies” deal smoothing flights across Africa, many passengers travelling between one part of the continent and another, or from Asia or Europe to Africa, must often transit through Dubai. But this is changing. Ethiopian Airlines, the country’s most successful state company, is accelerating a 15-year strategy it launched in 2010 to win back market share on routes to and from Africa that are dominated by Turkish Airlines and Emirates. It is also weaving a patch-

work of new African routes to rapidly expanding and lucrative Asian markets. ForwardKeys also attributed the recent jump in bookings via Addis Ababa in part to a positive international response to the broad reforms introduced by Ethiopian Prime Minister Abiy Ahmed, who came to power in April and has upended politics in the Horn of Africa country of around 105 million people. It cited two changes in particular: a move to allow visitors to apply for visas online, and Abiy’s pledge to open Ethiopia’s largely statecontrolled economy to foreign investment. The rise of travel via Addis Ababa looks set to continue. International bookings via Ethiopia are up 40 percent year-on-year for November to January 2019, ahead of all other destinations in Africa, ForwardKeys said.

Edo advocates stronger Yellow fever: Edo adopts multi-agency response, stakeholders’ synergy to urges residents to embrace vaccination, sanitation tackle security challenges do State government demiology Team, to contain

overnor Godwin Obaseki of Edo State has made a case for stronger synergy among all segments of society to tackle the security challenges facing the country. Obaseki made the submission during the Nigerian Army’s Research and Innovation Exhibition/Trade Fair, organised by the Nigerian Army as part of activities lined up for the Chief of Army Staff Conference, taking place in Maiduguri, the Borno State capital, earlier scheduled to hold in Benin City. Security is all encompassing and requires the sustained collaboration of the different segments of society and “cannot be viewed from one prism,” the governor said. He described the exhibition as “illuminating and promising, particularly when you look around and see that majority of the people who are exhibiting their products here today are Nigerians who have defied all odds to overcome the challenges facing the nation.

has urged residents in the state to take advantage of the state’s vaccination drive against Yellow Fever, assuring of a multi-agency response, in collaboration with the World Health Organisation (WHO) and the Nigeria Centre for Disease Control (NCDC). In a statement issued on Wednesday by the special adviser to the governor on media and communication strategy, Crusoe Osagie, the state government said nine cases had been reported in Ekpoma, Ehor and Igieduma towns, assuring that the government was on top of the situation. He explained that a combined team of experts drawn from WHO and CDC are working with the Irrua Specialist Teaching Hospital (ISTH) and the Edo State Epi-

L-R: Adewale Martins, Catholic Archbishop of Lagos; Doja Otedola, wife of former Lagos State governor; Femi Otedola, chairman, Forte Oil plc, his daughter Tolani, and Steve Omojafor, former chairman of Zenith Bank, at the foundation laying ceremony of the Faculty of Engineering building, Augustine University, Ilara, Epe, donated by Femi Otedola.

Atiku’s South East gambit aims to outflank Buhari

for autonomy. The numbers appear tempting. There were 7.5 million registered voters in the five states of the southeast out of 67.4 million nationwide at the last election, in 2015. The number of new voters registered in the southeast has grown faster than in other regions, according to electoral commission figures seen by Reuters. The opposition will still need to overcome voter apathy in the southeast, where people have long felt there is little point in voting since presidents tend to be northerners from the Hausa ethnic group or Yoruba people from the southwest. While presidential elections in Nigeria are usually cast as a fight between the mainly Muslim north and

the predominantly Christian south, victory may depend on a candidate attracting votes from outside his ethnic and religious base. At this stage, most analysts expect a closely fought contest on Feb. 16, with some predicting a narrow victory for Abubakar. Buhari is popular across the north, so it suits Abubakar to target a region where the president lacks support. Buhari’s unpopularity in the southeast stems from his decision to send troops on to the streets last year to crack down on secessionists. The issue is sensitive. For many, the deployment was a reminder of the 1967-70 war over Biafra, a short-lived breakaway nation that was predominantly Igbo.

Around a million people died, mostly from starvation and disease, before central government forces prevailed, and many in the southeast feel Igbos have been marginalised ever since. An Igbo has not been president or vice president since Nigeria’s most recent transition to civilian rule in 1999. If there are votes for Abubakar in the southeast, he may also win support among the many Igbos living elsewhere in Nigeria. Abubakar named Peter Obi, a former southeastern governor, as his running mate in October and proposed devolving more power to regions in a policy dubbed “restructuring” that promises to give states greater control over their finances.

the outbreak. Osagie said that an Emergency Response Protocol is being finalised to ensure similar epidemic or pandemics are contained in future. Senior special assistant to the governor on primary health care, Aanu Fakunle, said Primary Health Care Centres (PHC) across the state were being repositioned to be the first responders for these kinds of outbreaks. She emphasised that it was important for parents and children to get vaccinated, as that was one of the ways to prevent the ailment “Other measures include good sanitation as the virus is spread by mosquitoes. So, we encourage people to keep their environment clean by cutting the bushes, draining our gutters, wash their hands and maintain good hygiene.”

FG approves N1.8bn for remedial work in arterial roads across country HARRISON EDEH, Abuja

he main challenger in Nigeria’s election next year aims to outflank incumbent Muhammadu Buhari by campaigning in a sometimes neglected part of the country where the president is deeply unpopular, the southeast reports Reuters. With a tight race in prospect, a strong showing there could give Atiku Abubakar the votes he needs to deny Buhari, a former military ruler, a second four-year term as the elected leader of one of Africa’s most powerful nations. Abubakar is targeting regional voters who are mostly members of the Igbo ethnic group through his choice of a local running mate and policies designed to meet calls

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ederal Government has approved N1.8 billion for remedial work in major roads across the country. Minister of power, works and housing, Babatunde Fashola, who confirmed this approval in a statement issued on Wednesday, said the gesture was to ensure remedial works on the major arterial roads across the country, while further facilitating ease of movement and reduction in travelling hours during the festive period. Fashola confirmed further that money would be released to the 37 Federal Controllers of Works to effectively carry out the reconstruction works in the identified heavy traffic routes frequently used. The minister stated this while declaring open the Capacity Building Workshop for the Federal Controllers of Works with the

theme: “Learning and Development for Greater Stature,” organised by the ministry recently in Kaduna. He encouraged the Federal Controllers to apply the principle of emotional intelligence and project management taught during the workshop, adding that zonal directors of works from the ministry would be deplored to all the zones to oversee their activities and performances during this period. Speaking earlier at the workshop, Rufai Mohammed, coordinator/director of Highways, North East Zone, said part of the aims of the workshop was to discuss ways to tackle the challenges of the ember months and make necessary repairs where applicable. He said the workshop was to enable them achieve the set goals and accomplish government programmes and get value for money.

UK-based Hype and Steam debuts in Nigeria

ype and Steam, a UK-based online fashion retailer, officially launched operations in Nigeria this November, with an exclusive runway show and after party at the Hard Rock Café, Victoria Island, Lagos. Looking to bring the latest global trends to fashion enthusiasts in Nigeria at affordable prices, the high-street brand has commenced full operations in Nigeria, with a delivery turnaround time of between one to five days across the country - a welcome alternative to foreign online platforms with long waiting periods and exorbitant shipping costs.

Speaking at the event, Adebola Ukaiwe, business head, Hype and Steam Nigeria, states the fashion retail brand is committed to providing the best service to the Nigerian market by selling en vogue, quality clothing items and accessories at affordable rates. The launch event, compered by Maria Okan, included appearances by Mimi Onaloja, Titi Oyinsan and Olumide Oworu, among others, is definitely one of the fashion highlights of the year. Guests were treated to popup sales, a live performance from Vector Tha’ Viper, and a runway show that showcased over 40 flagship outfits.

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GARDEN CITY BUSINESS DIGEST Shell wants Niger Delta youth to reduce tension and attract more investors ... AS GM fears that negative operating environment may continue to block reduce employment windows to brilliant scholars ... Abia school makes waves, wins quiz trophy for second year running IGNATIUS CHUKWU

hell managers fear that opportunities to absorve most brilliant scholars being churned out through many scholarship schemes in the oil region may be gettig slimmer due to harsh operating environments that now drive away investors away from the Niger Delta. By the exodus, Shell’s General Manager, External Relations, Igo Weli, said jobs are lots and other cities especially Lagos keep exploding in job creation and investments. Weli, who hails from Elelenwo in the heart of the Garden City of Port Harcourt, said at the conclusion of the 2018 Seconadry Schools Quiz contest in Port Harcourt that it is in the interest of the youth of the region to open the business and investment space for prosperity to return. He said Shell is in the forefront of absorbing scholars produced through their vari-

ous scholarship schemes and rejected a notion bandied about at the event that those brilliant students fielding tough questions thrown at them by Emma Dorgbaa, the famous Quiz Master from the oil region, would hardly be employed by SPDC. « Shell is known for employing most of the Shell scholars. Over 60 per cent of the workforce in Shell are from the Niger Delta and the oil communities already. We have many Shell scholars here. Edafe is a glaring example. The data some people may not be the entire picture. Some former MDs were ex-Shell scholars. We encourage feedback and we note the suggstions made by the Rivers State Education Commissioner on the need to employ the scholars at last. It lends credence to what we preach, that the communities should help make the environment better to create more jobs. The contest seemed firesome as other schools gave fight to Community Second-

ary School, Owaza, Abia State, the defending champions, but the Owaza team ensure they returned to Abia with the trophy. Others from Community Secondary School, Aleto Eleme, Rivers State ; Community Comprehensive Secondary School, Rumukwurushie, Port Harcourt, Rivers State ; and Community Secondary School, Rumuopara, also Rivers State, made impressive showings.

The GM said the quiz contest is part of the scheme to support education and excellence in the Niger Delta region and boost human capital reseroir. He said the choice of community schools is to show that there are brains at all levels in the Nigerian society and to further deminstrate that brillaince is not a reserve of the rich. He went on : « We want to do more but the budget is lean, caused by many nega-

tive factors including bunkering, violence, damage to facilities, etc. If we earn more, we do more. Requests flood the tables of the few companies still operating in the region. If we encourage more companies to come to the region, we would have more options to send requests to. » Weli said he was a product of ‘something like this’ and that Shell has huge belief in the future of Nigeria. « We

hope to eventually get the manpower to run the corporate world, though it is not only for SPDC but for other IOCs. The region can be much better than where it is as a state and region. We must stop doing the wrong things. He named factors affecting the multinationals from reaching full potentials to include illegal refining, sabotage, community disruptins, internal strife within communities where money for social amenities have to wait for long court cases to end, etc. « Our people must show that we are ready for development. Even when contracts are for communities, there is always a big fight instead of putting heads together on how they could share it. Often, the communities write us to stop their project to enable them fight first. The idea of other regions oppressing us is becoming untenbale because we exhibit greater tendencies to disrupt development. » His message to the youth of the region : « Think about tomorrow. We seem to be a bit too tranactional. That thing we destroy today could become N20Bn tomorrow. That is why businesses run to Lagos.

Austine Nwikinaka: To die, but to live

Port Harcourt by Boat With

IGNATIUS CHUKWU

ast week, nothing mattered to newsmen in Rivers State anymore, just because they had on their hands, the corpse of their beloved veteran and pen leader, Augustine Nwikinaka, who became famous as the Chief Press Secretary to two different governors, Sam Ewang and Peter Odili. Wednesday was Service of Songs at the Ernest Ikoli Press Centre while Saturday morning witnessed a very solemn moment, the lying in state, whereby the great Austin Power came in a coffin to bid farewell to the place he helped to acquire for journalists in the state, just for 30 minutes. What was of utmost significance was that at the end of the day, the ceremonial pen with which Nwikinaka changed the world was handed over to his only son, in the presence of his wife, Ezinne, and three daughters. The long convoy proceeded

in blaring siren that Austin was used to all the years he rode with governors to various places. The most significant moment was when the convoy rode through Odili Road (constructed by the governor he served) and went through the new road that snakes through to RSTV area on Old Refinery Road to hit Akpajo. Austin wrote the first press statement announcing government’s decision to construct that road. Odili, those days, used to pride himself with the project that would make his deputy, Gabriel Toby, to drive to Opobo for once. The major road then was through the hectic Aba Road to Eleme Junction, a turn by the right to Akpajo, Eleme, Bori, (Ogoni), and from there to wherever one wanted to go in the broad waters (Opobo, Bonny, etc). For Austin, we rode from Bori to Kpean in Khana LGA. Augustine Nukpughi Nwikinaka achieved many things in his 65 years of existence on mother earth. He is a man who lives in the hearts of the people. This is because he lived for others and served humanity in various capacities till death. Austin Power was indeed a boisterous child and showed this all through his primary, secondary, and university education years. As a school monitor, he was talented in flute and band, such that if he did not come to school any day, there

would be no marching. He took this leadership and creative quality to his secondary education level where he a Senior Prefect in St Pius X College, Bodo. He was a born teacher and exhibited this at the Catholic Seminary in Port Harcourt where he taught immediately after his secondary school education. NWIKINAKA joined the

Late Austine Nwikinaka

Ministry of Information as Information Officer and served in Eleme Local Government Area. He later joined the Rivers State Radio Corporation (Radio Rivers) where he rose to the position of Director, News & Current Affairs. His desire to make changes in the way journalism was moderated led him to serve the Nigeria Union of Journalists (NUJ), Rivers State Council, as

chairman for two terms, coming out with outstanding achievements that linger to this day, as are often testified by his professional colleagues. It is on record that he led the NUJ executives to fight for the introduction of Mass Communication Studies in the then young institution, Nigeria’s premier University of Science & Technology (UST), now called Rivers State University (RSU). This remains to this day, the only Mass Communication study department in any university in Rivers State. Nwikinaka’s rich and domineering voice especially in news & current affairs presentation spiced with deep intelligence graced the airwaves in his time and attracted quality listenership in the heydays of Radio Rivers. It was from that position that he was drafted to serve as Chief Press Secretary. He excelled in this position and created legacies and traditions, one of which is managing Dr Odili to win the Best Governor award after the national assessment tour by Nigeria’s top journalists coordinated by the Federal Ministry of Information. During his time, Rivers State came into national limelight and has remained so to this day. A man of versatility and creativity, Nwikinaka was posted from the Government House to manage the Rivers State Newspaper Corporation, publishers of The Tide. A man who easily attracts favour and talents, he

was able to turn around The Tide which became a reference point in the Niger Delta. The Tide returned to a daily newspaper, reached back to most cities in Nigeria, increased in pagination, and above all became the first state government-owned newspaper in the Niger Delta to go full colour. He also laid a blueprint for growth and path to financial autonomy for the newspaper. He was a member of some sensitive committee in the Newspaper Proprietors Association of Nigeria (NPAN), a position that gave him insights which he used to develop a plan for The Tide. In fact, some state governments sent delegations to understudy The Tide. He later served as Director in the Rivers State Government Printing Press. In his 35 years of service, he worked in various committees where he distinguished himself in the service of the state. NWIKNAKA was a man for his community. There many he supported with intervention through school fees. He would never leave you once he has started helping you on any matter. He was a key elder in the community. He played a prominent role in the 2014 cultism crisis. He worked behind the scene to resolve that crisis and went ahead to bring the two factional chief councils together. The youths in the area renounced cultism and came together under one platform to forge ahead.

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Investing in Rivers State $4bn Train - 7:

NLNG outlines plans to scale up production from 22m to 30m tonnes per year - NLNG Ignatius Chukwu & Innocent Eteng

he Nigeria Liquefied Natural Gas Limited (NLNG) has revealed how it intends to achieve its plans of scaling the production of liquefied gas from its current 22 million tonnes capacity to 30 million tonnes per annum. The Managing Director of the company, Tony Attah, gave the revelation last week in Port Harcourt during a public workshop to sensitise local companies on how to participate in the construction of its proposed “Train 7” facility. He said: “Part of it, first of all, is to work in partnership with our gas suppliers to develop the gas upstream. Our suppliers are Shell, Total and ENI. So we need that gas from the upstream and they (suppliers) are already working to deliver the 1.5 BCF (billion of cubic feet) of gas that we need.” More so, Attah said the company needs plants-capacity-upgrade beyond its current trains (six) that produce only 22 million tonnes, hence the need for the construction of train 7. “We on our own side need

Tony Attah

to build additional capacity, which is the train 7 that you hear about. We need to build that plant in Bonny (in Rivers State) so that we can receive that gas and liquefy it before we can take it to the market.”

An NLG train is a plant for the purification and processing of natural gas into the required liquid form fit for such use as cooking gas. In July 2018, NLNG revealed that the proposed Train 7 construction would

We have reduced gas flaring by 55% - NLNG …Your effort not enough - NACGOND Innocent Eteng

f the Nigeria Liquefied Natural Gas Limited (LNGN) thinks it deserves accolades for its proposed construction of train 7 that is meant to shore up production, then it is a child-like self praise buried against current environmental and health realities. This is the position of the National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGOND), a coalition of 24 civil society organisations fighting the problems of gas flaring and oil spills in Nigeria’s delta region. “NLNG is doing the much they can, but we have surplus quantities of gas. NLNG can be expanded. There should be eight, nine, ten to 12 (trains). It costs money, but it is an investment,” Edward Obi, the national coordinator of NACGOND, said. NACGOND’s opinion came the same day - Thursday, November 22, 2018 - NLNG said it has reduced gas flaring by 55 per cent since its inception. NLNG had organized a workshop where it showed delegates from local companies how to participate in the construction of the Train 7, a natural gas purifying and processing plant, which, when completed, is aimed to increase Nigeria’s production of liquefied gas from the current 22 million

tonnes to 30 million. “Because of Nigeria LNG existence, we have created a sink for the gas which otherwise would have been flared to be gathered and that is why, today, we have helped reduce gas flaring by more than 55 per cent. Today’s gas flaring compared to 20 years ago (when NLNG formally started operations) is about 20 per cent but we are on the back of this Train 7 creating more opportunities for the upstream companies to gather whatever is left and we would take it from them,” the Managing Director of NLNG, Tony Attah, had told journalists during the workshop. NLNG currently has six trains and at 22 million tonnes production rate per annum, it ranks fourth among top ten exporters of liquefied natural gas (LNG), a clean cooking energy. NLNG’s biggest global competitors are Qatar, the world’s number one exporter of LNG at 77.2 million tonnes per annum; Australia at 44.3 million tonnes (second position) and Malaysia at 25 million tonnes (third position). Obi, who made the remark during a summit NACGOND organized to launch its action plans for Niger Delta states against climate change, said failure to adequately capture flared gas is not only worsening conditions of climate change in the region, but also contributes greatly to

gulp at least $4Bn. With the current 22 million tonnes produced annually, according to Energy Digital - a digital platform providing current trends in the energy industry across the globe - Nigeria sits fourth among top 10 largest exporters of LNG, trailing third-positioned Malaysia (with 25 million tonnes), second-placed Australia (44.3 million tonnes) and firstranked Qatar (77.2 million tonnes). If the proposed Train 7 facility construction goes as planned, with 30 million tonnes of annual production, Nigeria could come third ahead of Malaysia in the gas export ranking, in the coming years. Meanwhile, according to Attah, the reason for the workshop, strictly attended by delegates from local companies, was to give local firms an idea on how to participate in the process in line with local content demands. “First of all, you need the people. We are not about importing people from overseas to do this project. And for you to be able to have Nigerians to do this project, you need to scale them up. So skill acquisition development, people upgrading, is one key area. “But most importantly, we want

Nigerians to participate because we believe that having been in operation for what will be 20 years next year, we have grown capacity by our corporate social responsibility. We have been able to help companies grow and we have a lot of this companies that we have sponsored, especially in the back of our Bonny vocational centre where we train Nigerians to be able to participate in our kind of industry. So the scope is immense and we are at the back of this workshop inviting Nigerians to participate.” However, the Executive Secretary of the Nigerian Content Development Monitoring Board (NCDMB), Simbi Wabote, during his keynote address, said in complying with the local content law, a would-becontracted local company must have the capacity to deliver on quality and where no such capacity exists locally, foreign expatriates could be contracted; but would be strategically used to train local talents that would take over in the process of time. “If the capacity exists locally in Nigeria, we would utilise it. It is not about ‘Nigerianization’, it is about domestication. It is not an entitlement issue, it is about giving you the opportunity to deliver value through the value chain itself,” he said.

End soot now then investments would come - NACGOND tells Rivers state govt …#Stopthesoot campaign to sue UN

dangerous health challenges Niger Delta residents face - like different types of cancers, asthma, respiratory infections and heart diseases. ….. Climate Change: NACGOND launches action plans for Niger Delta Moved by the devastating effects of climate change that has resulted to food insecurity, flood and low agricultural yields - especially in the Niger Delta - the National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGOND) has launched a “Policy Framework” that details state-based action plans. The action plan - a document launched on November 22, 2018 in Port Harcourt during an event titled, “Niger Delta Environmental Protection Submit on Climate Change Policy Framework and State Action Plans for the Region” - targets the states of the Niger Delta where, due to many years of environmentallyunsafe practices in the oil sector, the effects of climate change have been most telling. At the submit were delegates and representatives of the governments of Rivers, Akwa Ibom, Cross River, Delta, Bayelsa and Edo states. However, according to the national coordinator of NACGOND, Edward Obi, the policy framework is a derivation from the federal government’s policy on environment, which NACGOND studied and discovered to be too broad.

Ignatius Chukwu & Innocent Eteng

ailure to take state-level actions aimed at ending the black carbon (soot) that has blighted Rivers State since 2016 is having an economic bite on the state, the National Coalition on Gas Flaring and Oil Spills in the Niger Delta (NACGOND) has said. The coalition of over 24 environment-based civil society organisations says given the present poor air quality in the city, one cannot, with clear conscience, advise investors to come in and risk their lives and those of their families to the killer particles. “If we are looking for tourism, if we are looking for investment in Rivers State, the matter of soot must be dealt with and then we can now proclaim to the world, ‘yes Rivers State is a haven for investment. Yes Rivers State is a place to visit’. “But for now, I cannot with conscience tell somebody to come and invest in Rivers State when they (investors would) come here and find out that their lives and those of their children and wards are not sustained,” Edward Obi, the National coordinator of NACGOND, said. Obi made the statement during an interview with BusinessDay in Port Harcourt, when NACGOND launched its policy framework and action plans on climate change for Niger Delta states. Soot is one of the

outdoor air pollution that the World Health Organization (WHO) says kill at least seven million people every year, globally. It comprises several liquid and solid gaseous particles including burnt acids, metals and chemicals. The Port Harcourt situation is linked to long and sustained acts of gas flaring, illegal oil refining and bunkering, uncontrolled emissions from industrial plants and obnoxious acts of burning tyres and other fumesemitting substances. The situation in Port Harcourt is particularly worrisome because the soot particles are as tiny as “a thirtieth of the diameter of a single human hair, which allows it to enter into people’s lungs easily and deeply when they breathe in dirty air,” says Bhekisisa, a health-specific department of the Mail and Guardian in South Africa. This implies that the particles are below PM (particulate matter) 2.5, which is an extremely small size of the haze, violating the WHO’s air quality guidelines. Health conditions traceable to the soot include different kinds of cancers, asthma, respiratory infections, bronchitis, birth defects and several lungs-related ailments. A recent study done by Agnes Fienemika, a consultant pediatrician, shows that between 2016 and 2017, respiratory infections among underfive children in Port Harcourt rose to nearly 50 per cent.

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2019: For me, I am not worried about my re-election at all - Ayade The governor gave the hint on Wednesday at the Executive chamber of the Governor’s Office in Calabar while speaking to journalists in a media chat. “I rather lose the election than to smear my name. what is government all about because government comes and goes but my name remains,” he insisted. Ayade said he came into office at the height of deep economic recession in the country which was difficult time for most state governments, but that he has been able to keep faith with his promise. Ayade said that even under recession, the state workforce has

MIKE ABANG, Calabar

head of the 2019 governorship elections in the state, Governor Ben Ayade of Cross River State has said that he was not worried about the election in the state He said that having employed over thousands of aides in his cabinet, employed over one thousand in the garment factory, provided jobs for the unemployed widows and youths, provided a platform for political stability in the state with his philosophy of politics of ethics, he sees no rival in 2019.

Ayade

Group hails Buhari on new police welfare package

group, Buhari Media Organisation (BMO), has commended President Muhammadu Buhari over the increased wages and allowances for the personnel of the Nigeria Police. The group said in a statement jointly signed by Niyi Akinsiju and Cassidy Madueke, chairman and secretary, respectively, that the approval would have a significant impact in improving the morale and attitude of the members of the Police Force. Reacting to the increment, the group noted that the move would ensure a more secure polity. “As a matter of fact, and across the world, the Police Force of any country is its first line of defence and thus, the well-being and welfare of its officers and men is critical to the discharge of their duties in ensuring a more secure country,” it said. According to BMO, “President Buhari’s recent approval of an improved welfare package for the

members of the Nigerian Police Force is a commendable masterstroke that goes to the root of Nigeria’s internal security challenges.” It noted that the President understood that an underfunded security apparatus like the Nigerian Police Force would result in poor character and poor performance by their personnel. “The increased wages as approved by President Buhari is a morale booster to our police personnel. With this we are sure to see improved character and attitude in our security personnel,” it further said. The group pointed out that previous administrations had neglected the welfare of the police, forgetting that without a well-paid police force, Nigeria’s security could be compromised. It went further to note that the President Buhari administration has shown, in just three years, unprecedented attention to the welfare of the most neglected Nigerians.

Army massacre: Afenifere condemns killings, asks Buhari to sack service chiefs YOMI AYELESO, Akure

he Pan-Yoruba SocioPolitical Group, Afenifere has called on President Muhammadu Buhari to immediately sack all the nation’s Service Chiefs, following the recent killing of over 100 soldiers by the terrorist group, Boko Haram insurgents at Melete, Borno State. The group, who stated this on Tuesday at the end of its monthly meeting in Akure, Ondo State capital, also lashed out at the Federal Government for being indifferent and insensitive to the killings by the Boko Haram insurgents. The group said: “First, it kept quiet for six days after the incident and when it found its voice, there were no soothing words for the bereaved

families “We were more pained at this tragic and monumental loss by the high insensitivity the Federal Government displayed on this matter.” Afenifere also expressed concerns over the massacre of the ill-equipped Nigerian troops despite the injection of $1billion by the Federal Government few months ago, to equip the military to fight the Boko Haram. Reading the group’s communiqué after its meeting, the Publicity Secretary of the group, Yinka Odumakin, explained: “The massacre of our ill-equipped troops by the evil sect raises serious concerns about the state of our armed forces combat-readiness in spite of the unappropriated $1billion the government claimed it disbursed months back to equip our military against insurgency.”

never known salary challenges, and that even with a huge debt burden, he has been able to decouple the state from a civil service state to an industrial hub within three years in office. The governor stated that tourism is good but can help the state at this point because the purchasing power of the people is low. He said that the state needs to support tourism with industrialisation which, he said his administration is pursuing vigorously through the garment industry, Pharmaceutical Industry, Rice seedling factory, Cocoa factory, tooth pick factory, among others.

Agbakoba writes Buhari, urges him to sign Electoral bill 2018

lisa Agbakoba, a senior advocate of Nigeria (SAN), has urged President Muhammadu Buhari to urgently sign the Electoral Act (Amendment) Bill 2018 into law. Agbakoba made the call in a letter he wrote to the President yesterday. He was worried that the document has not been signed into law three months into the general election in spite of the fact that it has long been transmitted by the National Assembly.

“The Electoral Act (Amendment) Bill 2018 is the legal regime for the 2019 election. It is therefore, important that every person is familiar with its provisions,” the former president of the Nigeria Bar Association (NBA) said. According to him, “If you recall, the late signing of the Electoral Act (Amendment) Bill 2015 created so much confusion and resulted in widespread electoral malpractices. If you also recall, the late signing resulted in conflicting decisions in

the courts, especially on the use of card readers. “The Electoral Act (Amendment) Bill 2018 was passed by the National Assembly to address all the challenges created by the Electoral Act (Amendment) Bill 2015. It is therefore, important that you sign into law, the Electoral Act (Amendment) Bill 2018.” Agbakoba believes that “This will enable INEC, political parties and the courts discharge their responsibilities effectively.”

2019: Ezekwesili cautions women against voting failed politicians Iniobong Iwok

he presidential candidate of the Allied Congress party of Nigeria (ACPN), Obiageli Ezekwesili, has cautioned women in the country against voting for politicians who she said had failed the country in the past in the 2019 general election. The ACPN presidential candidate urged women not to lose hope, appealing to them to stand up for their rights as the 2019 election draws nearer. In a statement to the media on Wednesday to commemorate the #ViolenceAgainstWomenDay, the presidential candidate regretted

that despite the hardship confronted by women in Nigeria, they were subjected to violence. She assured them of equal representation in her cabinet if she emerged the president of the country in the next year’s presidential election. “Nigerian women are going through the toughest challenge in the world. The recent takeover of Nigeria as the world headquarters of corruption justifies that Nigerian women are facing disappointing moments. “A situation where women are molested, beaten, and harassed is not acceptable and should be condemned by all. Instead of the

government of the day to work on eradicating violence against women, it is busy passing the buck. “The situation of women is now so bad that they have become preys in the hands of terrorists and negotiating tools of the Federal Government. Lamenting the continuous detention of the Chibok School girls by Boko Haram terrorists. Ezekwesili added, “Each time I remember that some of our beloved daughters and mothers are still with the terrorists, I feel extremely sad and uncomfortable that our government has failed us by prioritising politics and power beyond security of lives.”

Ondo council election postponed indefinitely YOMI AYELESO, Akure

he Ondo State Independent Electoral Commission (ODIEC) has postponed indefinitely the local government clection earlier scheduled for this weekend. Chairman of ODIEC, Yomi Dinakin made the announcement while addressing stakeholders in Akure, the state capital. According to him, failure was occasioned by the inability of the

Independent National Electoral Commission (INEC) to send voters’ register to ODIEC on time. “We had some hiccups, but the major challenge is that we did not receive the voters’ register on time. We need time to produce and display, and as it, by the time we got the version from INEC, it was too late. “Secondly, we discovered it was incomplete, so as it is, we cannot continue with using that one, we have to go back to INEC for a complete set of voters’ register.”

He also dismissed insinuations that moving forward the date was to favour the ruling All Progressives Congress (APC). The APC had been enmeshed in crisis on which of the factions was eligible to present candidates for the polls. A group led by factional Chairman, Idowu Otetubi had approached an Ondo State High Court to restrain ODIEC from accepting list of candidates sent to it by Ade Adetimehin-led faction of the party. However, the court in its ruling,

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Oby Ezekwesili: My plan to fix healthcare, MSMEs, infrastructure Obiageli Ezekwesili is the presidential candidate of the Allied Congress Party of Nigeria (ACPN). Ezekwesili unveils her plans to fix the decayed healthcare system, struggling MSMEs and bad roads. She also has a strong position on restructuring. Read on.

e all know that an unhealthy populace is a poor populace. Therefore, no antipoverty agenda can stand without a solid health strategy. The key plank of our health agenda is to reverse the negative trend of maternal and infant mortality, child mortality, needless deaths in noncommunicable diseases and medical tourism which has President Muhammadu Buhari as grand patron. We would champion engagement with international pharmaceutical companies on cost-effective vaccines and medicines that will effectively tackle disease burdens especially malaria and other tropical diseases that hit us disproportionately. Our government will broaden the National Health Insurance Scheme (NHIS) to ensure universal coverage in a decade. Every Nigerian has to be in the system, starting with those currently earning an income. We would also attract at least three top quality global health providers linked to the NHIS in each subregion. At the level of primary health care, we intend to provide incentives that would make primary healthcare a market- based system. We would adopt a PPP model that would outsource the management of these primary health centres to private providers, where the payment to these providers would be linked to performance. We will target subsidies to the poor in our rural communities such that only a tiny social fee needs to be paid while the federal and state governments shoulder the cost. Improving economic productivity Under the @ACPNHOPE government, we would run a results-based health system. We will pursue a Produce More, Earn More vision that will result in higher productivity, greater competitiveness, higher income, more diversified export earnings from wider sources of economic growth in the economy. While Nigeria’s productivity stands at less than $3/hour, countries like Brazil, Russia and Turkey have productivities at $10.7/hour, $24/hour and $28.9/hour respectively. Under our Produce More, Earn More initiative, our government will partner with the private sector to identify critical measures necessary to increase Nigeria’s productivity to at least $10/hour over the next four years. By introducing a range of policy measures, cutting a wide variety of bureaucratic and regulatory bottlenecks in all sectors, providing the right mix of critical infrastructure and

progress, the things that are too complicated, and the things that must go. And then after all the feedback has been received from business people, stakeholders, and the general public, my cabinet will have three months to go through them. If a minister wants to keep any regulation, he must defend it and explain why it is useful to keep it. If there is no defence or if the defence is weak, then such a regulation must go. It’s as simple as that.

Obiageli Ezekwesili

relevant training, skills and capacities for the business sector, we shall unleash higher labour productivity and consequently improve the income growth for individuals, households, businesses and government. Through the Productivity and Competitiveness initiative, we shall seek to achieve sectoral economic structural transformation. What this means is that we will identify the industries that are of strategic value to our economy and support & promote them through sound policies on trade, tax, infrastructure, skills, training, and research and development. This is how it is done in every major economy of the world, and that is how we would do it to ensure inclusive growth. We expect productivity boosts and expansion in new opportunities that create jobs from some key sectors like agriculture, fisheries, livestock and agribusiness where more than two-thirds of Nigeria’s active labour population is found.... light manufacturing industries, construction, housing and public works, renewable solutions, services including trade, telecom and technology, domestic tourism, and creative industries. A majority of those operating in the economy are in the informal, low productivity sectors. People like the barber in Bori, the cobbler in Dutse, the petty trader in Onitsha or the tea seller in Kano. At the end of each day, by the time their business costs are removed, they make - maybe - N200 or N250. How do we ensure that that figure is jacked to at least N1000 daily for a start? The @ACPNHOPE government would take away the barriers

to the productivity of our citizens in the informal sector. Embracing the informal sector— the MSMEs We are committed to providing the critical infrastructure, training, access to finance, connectivity to the market and to use policies and targeted public investments to ease the Doing Business environment for both the formal and informal sector firms. We would also provide the incentives that would move them from informality to formality, and enhance their productivity and competitiveness. MSMEs play a key role in our economy. Right now, based on NBS data, they account for almost half of the country’s Gross Domestic Product (GDP) and employ over 80 percent of the labour force. If they are doing poorly, then our economy and our people will do poorly. Yet, the government punishes them and makes everything so difficult for them. The government has turned these honest, hardworking citizens into suffer-heads. You must have heard that when the World Bank released its Ease of Doing Business rankings last month, Nigeria dropped in rank to 146th out of 190 countries. My administration will do better for our MSMEs. Within our first 100 days in office, we will launch a Suffer-Head Challenge. We will choose one of our priority sectors every few weeks and publicly publish every single rule and regulation in that sector. We would then throw it open to the general public to tell us the things that are not working, the enemies of their

Bizlift Most SMEs are operating without business plans; most are unaware of available tools that can make them more productive. Many are swamped with paperwork and most are so uncompetitive that they cannot export. The contribution of MSMEs to Nigeria’s exports is less than 10 percent. Our @ACPNHOPE government will launch BizLift, which would be an online portal & national telephone helpline that would offer guidance and advisory services to SMEs employing between 10 and 199 people. We will also support MSMEs to improve their access to markets. A crucial way we intend to do that is through massive road construction and rehabilitation. We intend to increase the paved road network from 65,000km to 120,000km. Road construction I want to run an honest government, so I would be the first to tell you that the government budget will not be sufficient to meet our infrastructural demands from roads to rails to power to schools. That is why our emphasis on partnership with the private sector is so crucial. For instance, on the issue of increasing our road network to ease access to markets for MSMEs, we intend to work with states, businesses, communities & stakeholders to agree on new financing models, how they would be paid for and the accountability that goes with nonperformance. If the @ACPNHOPE government introduces tolling on roads or any other initiative that has potential to raise rates on citizens, we would use biometrics and e-ticketing to target customers who made payments for those services, and if we fail to fulfil our own end of the bargain, refunds will be made. Economic growth strategy We will pursue a Six Growth Poles strategy, which will be at the heart of our diversification agenda. We will focus on optimising the economic performance and expanding the

economies of the six geopolitical regions. The federal government will work with the regions and the private sector to produce and implement robust regional economic strategies that will foster sustainable growth. In the North East, we will invest in the reconstruction and the reclamation of the Chad Basin for economic expansion. We will also restore communities and livelihoods. In the North Central, we will restore law and order while optimising agriculture productivity. In the South South, we will implement a regeneration agenda for land, communities and people for a Niger Delta beyond oil. In the South East, we will undertake reconstruction for innovation, enterprise and trade development. In the South West, we will place emphasis on optimising and positioning the region as a magnet for global talents with the aim of becoming a hub for manufacturing and services. In the North West, we shall reignite the competitiveness of value added leather and textile clustering by attracting light manufacturing industries to the comparative advantages of sources of raw materials for production. Across board, we would pursue an economy of agglomeration, whereby similar economic activities are clustered together to ensure that businesses and cities can scale and have good connectivity. Restructuring Our focus on regional development is strategic. The conversation for political restructuring has to begin with fiscal restructuring. We would actively lead the national conversation on restructuring & devolution of powers which must be had if we are to make progress. Over-centralisation only favours the most powerful. Our governance philosophy will be one that favours the many, not just a powerful clique. We cannot abide this excessively powerful centre that overwhelms and reduces the regions with paternalistic ties to Abuja evident in the frequency of begging bowls and bail-out funds to states. The excessive powers of the federal government are partially responsible for the stunted growth and poverty of the states and regions. We shall lead an economic-based dialogue for correcting the structural imbalance that has hobbled the regions and states and created the failure of our fiscal federalism in practice. Edited by Odinaka Anudu

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tility. That has also been amplified

by new political tensions and this has brought about speculations, specifically in the activities of international investors resulting in the decline in crude oil price. “Our consultations today with Nigeria is very important, it would prepare us well for the OPEC meetings. All of the consultations we have had with different countries would lead us to reach a consensus. Once again I am confident that the producers that would be gathering in Vienna would do the right thing in stabilising the market and giving some comfort for 2019.” Confirmingthis,Kachikwusaidthere was an absolute resolve of both nations to ensure that during the meeting in Vienna, they speak with one voice and that whatever action needed to be taken to stabilise the prices would be taken. “Obviously, we agree collectively that the interest of the whole is what will guide us when we get to Vienna. “We are looking forward, not without some level of trepidation, but certainly with a lot of resolve to find a closure to some of the things we see have caused the volatility all over the world,” Kachikwu said. Furthermore, he disclosed that the Federal Government was seeking ways to collaborate with Saudi Arabia to revamp Nigeria’s refineries and also restructure the downstream sector of

the Nigerian petroleum industry. The Nigerian petroleum minister said during the discussions, he was able to secure an understanding with his counterpart from Saudi Arabia in terms of understudying the Arabian nation’s model in refining and downstream operations. He said, “You know the refineries are very close to my heart. I did bring up the issues of the experiences we have had so far and he shared his own experiences in terms of the successes they have had and we have got an understanding to come and look deeper into how they did their own trajectory to get where they are today and what experiences we can get from there. “No formal thing was agreed yet, we need to collaborate and learn from one other. These are usually very strong business decisions and at the appropriate time we would nosedive into the details of that.” Confirmingthis,Al-Falihsaidlessons tobelearntfromitsdownstreampolicies were reflected in the fact that its national oil company, Saudi Aramco became successfultoalargedegree,turningdeficitintermsoffuelproducts,tobecoming a major exporter by building a number of large refineries through joint venture approach,byattractinginvestmentsand finding and attractive financing scheme for foreign direct investments. He said, “There are technical and financial successes among others, followed by operational success that

is needed for Saudi Arabia becoming a major exporter of value added products integrated with petrochemicals which improves the profitability of these manufacturing companies.” He stated that the company was looking to increase its presence and invest in the West African market and was looking at beginning with Nigeria. He said, “Saudi Aramco being a global company, the largest upstream company, with a clear approach to be the largest downstream company, that all over the world, we would have playgrounds. Africa is very close to us, it is a very important market going forward and if Saudi Aramco believes it would invest in this market in Western Africa, we welcome this approach. There is no better place to start than Nigeria. There is a huge market and a bridge to other countries.” In addition to refining and marketing of refined petroleum products and petrochemicals, Al-Falih noted that there was an opportunity for gas and gas to power. “We have announced recently that Saudi Aramco would march its global skill in oil with a large presence in natural gas. “The company is looking to invest in gas in every continent of the world including in Africa, and there is a way not only to invest in gas upstream, but to monetise that gas domestically within the continent. Putting gas to power creates investment opportunities, and it is worthwhile for Saudi Aramco to look at it the opportunities,” he said.

lenges in the Northeast and Middle Belt regions. But the non-oil industry and services, which constitutes over half of Nigeria’s economy, picked-up to 3.1 percent and 2.1 percent respectively, driven by growth in construction, transport, and ICT. The Update reports that the Nigerian economy remains dependent on the small oil sector (under 10 percent of GDP) for the bulk of its fiscal revenues and foreign exchange earnings. Although oil revenues are increasing with recovering oil prices in 2018, distributions from oil revenues to the three tiers of government are constrained by the petrol subsidy and other prior deductions. In the first half of 2018, the current account surplus surpassed 4 percent of GDP, driven largely by higher oil exports, while non-oil revenue collections have come in lower than envisaged.

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negotiations with the lecturers tomorrow (Friday), stressing that he was optimistic that contentious issues would be resolved. Meanwhile the council members also approved 11 ecological interventions projects valued at N9.6 billion. The Special Adviser to the President on Media and Publicity, Femi Adesina, who also briefed journalists, announced the approval, saying that the projects are spread in Lagos - Jetty and Shoreline Protection Facilities, flood and erosion control in Oyo town, Oyo State, erosion control of flooded areas/road improvement in Owo, Ondo state, erosion control of flooded areas in Akampa in Cross River and road and stem water defiance in Federal College of Education in Yola, Adamawa. Other projects are road and bridges at Dutse Saki village in Buguru local government in Bauchi, erosion control at Kazaure in Jigawa, intervention at Main Campus Phase II Site at Ahmadu Bello University (ABU), Zaria, Kaduna, Erosion and flood control at Kontagunra local government are of Niger State, Gully erosion and road improvement at Army Post Service Estate, Kurudu Abuja and Erosion and flood control at Asharawa area council in Phase II in FCT, Abuja. Adesina said Council also approved three industrial wastes combined incinerators for environmental friendly destruction of counterfeit and substandard regulated products.

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Nigeria economy to grow slightly below... Continued from page 1

FG slashes cost of JAMB, NECO exam fees in... It was approved for NAFDEC at the sum of N267, 585,160. He also said that FEC approved N267 million for three environmental friendly incinerator for NAFDAC which will help in the destruction of fake drugs by the agency. The Minister of Interior, Abdulrahman Dambazzau, on his part said FEC approved N14.7 billion for the new Economic Community of West African States, ECOWAS, travel certificates. According to him, the project was based on the recommendation of West African regional leaders since 2016 as the ECOWAS travel papers can easily be faked. He said that the certificate will carry security features like the picture and fingerprints of the holder which the current certificate which could be easily forged by anybody does not have. The Interior Minister also said that the new project is for the security of the Nigerian borders and that the agreement for the contract would be signed at a later date. He further said that it is a contractor financed project that will last for ten years and that 13 million cards will be produced within the period. The contractor, he said is “the Army Corps of Engineers that have a limited liability company, Sappers Engineering Limited. Why we gave to Sappers Engineering is because of the security concerns, no civil contractor will want to go there insecure,” he explained.

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Elections impact on prime office market...

R-L: Mohammed Jimoh, managing director; Laurent Perez, country cluster commercial lead; Temitope Banjo, country sales manager, all of Bayer Middle Africa Limited, with Olusegun Obasanjo, former president of Nigeria, during the presentation of Lagon, the company’s product for Cassava/ Maize weed management to Obasanjo, at his residence in Ogun State.

impacted by the security chal-

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Despite sustained efforts to improve the business environment, Foreign Direct Investment (FDI) inflows remain stagnated, the World Bank said. According to the update, the fiscal deficit will likely widen in 2018 due to increased spending and sustained revenue shortfalls. But the current account balance is expected to remain positive, benefitting from the rising value of oil exports and limited growth of non-oil imports. “The capital account faces significant uncertainty, as external portfolio investors may exercise further caution, especially during the pre-election period, despite rising domestic yields,” the Bank warns. The Bank, however, commended the government for establishing a Human Capital Working Group to develop a unified vision for human capital development and drive implementation of interventions within the ‘Investing in our People’ pillar of the Government’s Economic

Recovery and Growth Plan (ERGP). “The World Bank welcomed the Government of Nigeria’s recent ‘Call for Action’, requesting all stakeholders to join the Government’s effort to address Nigeria’s alarming human capital outcomes,” said Rachid Benmessaoud, World Bank Country Director for Nigeria. “As a member of the Human Capital Working Group, the World Bank stands ready to support the Government of Nigeria in its bold steps to improve the lives of its citizens.” Given the clearly challenging economic backdrop, the World Bank suggests certain key policy reforms would be important to support macroeconomic resilience for Nigeria. These include among others, the acceleration of the economic diversification agenda, the reform of petrol subsidy regime to improve the fiscal space, improvements in the domestic revenue (particularly non-oil) to reduce volatilities in government revenues and increased investment in human capital for a truly sustainable growth.

prices will fall. Again, because these people want quick cash, they will sell the assets at very low prices,” Gbenga Ismail, an estate surveyor and valuer, confirmed on phone. “Already the market has seen over 10 percent drop in prices and it can only get worse as we move closer to the election proper,” he added. Adetokunbo Ajayi, CEO, Propertygate Development and Investment Company, agrees, saying that the marketwillbereceiving‘distressedassets’as the electioneering campaign heats up. “Those who want to contest elections and need money desperately will resort to selling their assets, more so if they have no other sources of credit”, he noted. The office market is different. According to the Q3 2018 report by Broll Property Services, a relative improvement in office market dynamics has been evident in the first three quarters of 2018 with a slight rise in the frequency of enquiries. “Even though elections are forthcoming, in 2019, this is not expected to have a significant impact on occupier

demand. Longer term investors tend to be more bullish with regards to the Nigerian economy and, as such, continue to drive activity in the market”, Opuda Sekibo, a researcher at Broll, said. Sekibo noted, however, that requirements have evolved to incorporate less barriers to exit as against the past practice where some occupiers would take on space with an additional ‘growth space’ for future growth in operations. In place of this are flexible and functional spaces. “The market in the quarter under review witnessed notable spikes in demand from smaller multinational corporates in B- and C-grade buildings for morefunctionalspaces”,hesaid,adding that the oil and gas sector recorded the largest frequency of enquiries. Other industries that also contributed to market activity within that period included fast moving consumer goods (FMCG), pharmaceutical, technology, finance and consulting. On average, the demand for office space fell between 200 square metres - 500 square metres.

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Investors pay higher for Nestle, International... Continued from page 2

dominating the market for over 5 decades,” said Kayode Tinuoye, Fund Manager at United Capital Asset. “Because over time investors choice are limited, a lot of them concentrated on the firm at a point,” Tinuoye said. “Investors are attracted to the stock of International Breweries because of beer makers’ aggressive mergers. They see growth prospects going forward. I think price to earnings of 31 times is justified fundamentally more than Nestle,” said Tinuoye. Indeed the firms have been embarking on aggressive expansion with a view to increasing market share and magnifying shareholders earnings. International Breweries- indirectly owed by the largest world’s largest

brewer AB Abser- merged with INTAFACT and PABOD Ltd to form a stronger entitytogiverivalsarunfortheirmoney. The beer maker’s flagship brand Hero has dominated the South East market while beer lovers in the South West are enamoured to Trophy, another premium brand. These two region forms the large chuck of drinkers in the country. International Breweries has commissioned a $250 million plant in Otta, Ogun State. Similarly, in February, Nestlé Nigeria launched a new beverage production plant in Ogun state, Nigeria, following an N 4.1 billion ($11.4 million) investment.

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‘Nigeria’s refineries can’t perform optimally even with rehabilitation’ OLUSOLA BELLO & DIPO OLADEHINDE

espite being Africa’s leading crude oil exporter and a regional leader in installed crude oil refining capacity, Nigeria remains the continent’s largest per capita importer of refined petroleum products. This is as stakeholders say the country’s four main refineries be sold off as against revamping, which is being described as an exercise in futility and a huge wage of government funds. Stakeholders bemoan government insistence of going ahead with the rehabilitation of the refineries when private investors can do better and make profit, as it is obvious that government cannot run them in a businesslike manner. The reactions of the stakeholders came on the heel of a statement credited to the minister of states for petroleum resources, Ibe Kachikwu, talking of plans to fix them and make them work to ut-

most capacity, would not happen until 2020. The minister had earlier stated that if the country was not self sufficient by 2019 in terms of petroleum product refining and stop petrol importation he would resign his appointment, even when he knew by that time the tenure of this current government would have elapsed. Stakeholders say further that none of the four refineries with 445,000 capacity can reach utmost capacity of 90 percent even if they are revamped under the current government, as they express doubt if the government can mobilise enough resources to carry out the necessary rehabilitation works. According to them, the only problem with the refineries is the lack of political will on the side of the government to privatise them. Babajide Soyede, a former general manager of Warri Refinery, told BusinessDay that selling the refineries was the best option, adding that fundamentally refineries were

potentially profitable if they were upgraded and handled professionally. “The refineries can be upgraded. It is the size of refinery that is most important, and unless all the units are upgraded we cannot have 90 percent optimisation from these four refineries,” he said. If they are rehabilitated they could effectively refine 350,000 barrels, and anything above this would be fuel oil, he said. “The problem is not that the refineries are old or obsolete; the oldest refinery in Nigeria is younger than the oldest refinery in Europe, the problem is who is managing them,” Ademola Henry, team leader at the Facility for Oil Sector Transformation (FOSTER), asked. Although the team leader at the Facility for Oil Sector Transformation (FOSTER) admitted that the upcoming Dangote Refinery might make it difficult for government refineries in local market however it will make it more attractive for private in-

vestors to run if the industry is deregulated. “If the efficiency ratios of Nigeria refineries are strong why can’t Nigeria supply petrol to Ghana, Togo, Benin or Niger republic?” Henry, team leader at FOSTER asked. He noted that refineries are not only meant for refining petrol alone but at least eight other petroleum products including diesel which will have a positive multiplier effect on Nigeria economy if the sector is deregulated. Previous governments have made spirited efforts to revamp the refineries but they failed because of corruption and lack of political will. It was only former President Olusegun Obasanjo that attempted to revitalise the refineries by selling them to Aliko Dangote, who lead a consortium of investors that had paid $750 million for two refineries, as the Federal Government was finding it difficult managing the facilities. However, the sale was unfortunately overturned by late President Shehu Musa Yar Adua. L-R: Michael Deelen, head of Lagos office Netherlands Embassy; Folusho Olaniyan, director, Agra Innovative Programme/ managing director, Contact Consulting; Kayode Fayemi, Ekiti State governor/special guest of honour, and wis wife, Bisi Fayemi, during the Agra Innovative Agric Exhibition at the Landmark Event Centre, Lagos.

UK’s CDC may invest $1bn in Nigeria in post-Brexit Africa drive

he UK’s development finance arm, CDC Group Plc, may invest more than $1 billion in Nigeria over the next four years as the government looks to increase business ties with Africa after it leaves the European Union in March. CDC, which has investments ranging from listed Nigerian banks to an Ethiopian winemaker and a safari lodge in Zimbabwe, aims to put as much as $4.5 billion into the continent in that time, which would almost triple its existing African portfolio of roughly $2.6 billion. “A reasonable figure

for Nigeria, given the size of its economy, would be about $1.2 billion,” Nicholas O’Donohoe, CDC’s chief executive officer, said in an interview in Lagos, the nation’s commercial capital. CDC already has stakes in Nigerian lenders including Diamond Bank Plc, Guaranty Trust Bank Plc and Zenith Bank Plc, and will probably invest more in the banking sector, according to O’Donohoe. “If you look at the larger banks, there’s a strong case that they’re through the worst,” he said. “It’s more problematic when you look elsewhere.” CDC will also open

offices in Lagos and Nairobi, Kenya’s capital, adding to one it has in Johannesburg. The Nigerian office will open early next year and have around 10 people, O’Donohoe said. The group has been active in Nigeria, where it has $400 million of investments, for 70 years. It has injected money into companies directly as equity or debt, or through private-equity funds. U.K. Prime Minister Theresa May visited South Africa, Nigeria and Kenya earlier this year, saying she wanted the country to become the G7’s biggest investor on the continent by 2022.

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Dijo Group appoints Tunde Asekun as account director

ijo Communications, a marketing communications firm led by Innocent Oboh, its president/CEO, has announced the appointment of Tunde Asekun as its new account director for Dijo Communications and Dijo Group. Tunde joined the business in September 2018 from Chain Reactions Nigeria where he worked as the consultant, Strategy and Business Management. He will be responsible for planning and implementing strategic marketing plans with cross-agency and brand team collaboration to execute clients’ briefs across advertising, media buying and placement, digital, events and experiential. CEO of Dijo Group, Oboh said, “It is a great pleasure for us to welcome Tunde to the Dijo team. The marketing communications industry is in a critical mo-

ment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead. “Tunde is a marketing communications visionary with a proven track record of execution and we are certain that his wealth of experience will be exploited to retain current clients and win new businesses.” Dijo Communications and Dijo Group is an indigenous privately owned Nigerian group of companies committed to driving Nigeria economy forward through industrialisation.

FG working towards early completion of 3 modular refineries -Folasade MIKE ABANG,Calabar

ermanent secretary, Ministry of Petroleum Resources, Folasade YemiEsan, Tuesday, said the Federal Government under the ministry was working towards early completion of thre out of the 40 planned modular refineries before the end of 2019. Yemi-Esan disclosed this in Calabar while declaring open the third National Council on Hydrocarbons with the Theme Oil and Gas Reform, the Key to unlocking the potentials of Nigeria’s Hydrocarbons. According to Yemi-Esan, in spite of the progress recorded so far, a lot needs to be done to develop and implement sound policies that will serve as backbone for rapid development of the

oil and gas sector. She said the uncertainties and risk associated with oil price volatility and their global economic impact witness recently was creating a new thinking in terms of hydrocarbons utilisation and energy security. In addition, she said the ministry through the Department of Petroleum Resources (DPR) has achieved improved LPG penetration with local consumption growing from 390,000MT to 470,000MT with a potential to hit 500,000 MT milestones. In his welcome address, Itaya Asuquo Nyong, the state commissioner for petroleum resources, said the government of Governor Ben Ayade would continue to assist the organised private sector for the development of oil and gas in the state.

AFC to invest in Cameroon’s €1.2bn Power Project, Corp says

frica Finance Corporation (AFC), the continent’s leading infrastructure development finance institution, will invest in a Cameroonian €1.2-billion power generation project, the corporation says. The Nachtigal Hydro Power Company, located 65KM north of Yaounde, the capital and second-largest city, will consist of a 420MW hydro-electric power station as well as a 50KM transmission line, AFC said in an emailed statement. The project will be financed 76 percent with debt and 24 percent via equity, with AFC providing €50 million in debt and an additional 18-year interest rate swaps of

up to €75 million, the corporation added. Other lenders in the investment consortium include the International Finance Corporation (IFC), the private-sector arm of the World Bank; European Investment Bank; Proparco; Société Générale, and Standard Chartered. The sponsors of the project are Electricité de France International, which is globally recognised for its expertise in hydro-electricity power (has 40% shareholding in NHPC); InfraVentures, the World Bank’s infrastructure project development fund (30% shareholding in NHPC), and, the Government of Cameroon, with 30 percent shareholding in the project.

This investment into Cameroon’s power sector follows a steady rise in the demand for electricity in the country for both domestic and industrial use, AFC explained. It said that during the 2012 – 2016 period, demand grew at a Compound Annual Growth Rate of 7.6 percent, from 4.2TWh (Terawatt hour) to 5.7TWh in the grid to which Nachtigal will connect. Currently, demand in that grid will be connected is expected to more than double from 5.7TWh in 2016 to above 13TWh by 2030, the organisation said. AFC’s decision to invest in the Nachtigal hydro project was based on NHPC’s potential to drive economic development as well as its wider impact, the corporation said.

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Thursday 29 November 2018

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BUSINESS DAY

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Thursday 29 November 2018

FINANCIAL TIMES

World Business Newspaper

Powell says US monetary policy not on ‘preset’ path Fed chairman defends interest rates as Trump administration ramps up criticism SAM FLEMING

he Federal Reser ve chairman has insisted US policy is not on a “preset” path as he defended the central bank’s gradual interest rate increases amid political pressures and turbulent markets. Jay Powell said rates are still low by historical standards, hovering “just below” estimates of neutral — the level that neither causes growth to accelerate or slow down. He stressed there is “no preset policy path” for rates ahead, and that the central bank will be watching new economic data very closely as it decides what to do next. Mr Powell underlined that it may take more than a year for the economic effects of the Fed’s past rate rises to become apparent, in an argument for the central bank to tread carefully as it tightens further. His comments at the Economic Club of New York on Wednesday come as the Fed is under intensifying pressure from the Trump administration to hold back from further rate rises. The president’s latest intervention came in an interview with the Washington Post, in which he said the Fed, which next month is expected to lift rates for a fourth time this year, “is way off base with what they’re doing”. Mr Trump added: “So far, I’m not even a little bit happy with my selection of Jay.” In his speech Mr Powell did not directly reference the presi-

dent’s comments. But he noted that the Federal Open Market Committee had around three years ago judged that the economy was no longer “best served” by extraordinarily low interest rates. “Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” said Mr

South African lawmakers accuse McKinsey of possible crimes

Parliamentary report adds to consultancy’s woes over fallout from political scandal JOSEPH COTTERILL

outh African lawmakers have accused McKinsey of possible criminal wrongdoing in a report that condemns the consultant’s work for the state power monopoly over its links to a political corruption scandal. The global management consultancy acted as a “de facto legitimising vehicle” for Trillian, a company linked to the Gupta business family, to siphon money from the Eskom utility, according to the report published by a South African parliamentary committee on Wednesday. “McKinsey’s potential use of Trillian to extract rents from Eskom may constitute criminal conduct,” the report added. McKinsey has already apologised for mistakes and repaid

fees of about R1bn ($72m) over the scandal affecting its biggest ever African contract. But the report is likely to damage its image further in South Africa, where it has lost clients over the fallout. The Guptas are accused of using a friendship with Jacob Zuma, the former president, to take control of state-owned companies and their public contracts — claims they deny but which are being probed under Mr Zuma’s successor as leader, Cyril Ramaphosa. McKinsey has previously admitted that it should never have worked with Trillian at Eskom between 2015 and 2016. It ended ties after questioning Trillian’s ownership. Kevin Sneader, the firm’s global head, also said this year that McKinsey overcharged for its work, a Continues on page A7

Powell. “My FOMC colleagues and I, as well as many privatesector economists, are forecasting continued solid growth, low unemployment, and inflation near 2 per cent.” The Fed’s gradual pace of rate rises was an exercise in balancing two risks, Mr Powell said. “Moving too fast would risk shortening the expansion,” he said. “We also know that moving too slowly — keeping interest

rates too low for too long — could risk other distortions in the form of higher inflation or destabilising financial imbalances.” Mr Powell’s speech came after the release of the Fed’s new Financial Stability Report. He said that overall indebtedness in the financial system was not “abnormal or excessive”. Even though some asset valuations were high, the Fed did not see “dangerous excesses” in the stock market.

The Fed chairman also offered a sanguine view of financial market risks, saying that while policymakers were keeping an eye on areas including rising corporate indebtedness, the overall system was resilient. The Fed’s latest financial health checks suggested there are a number of areas that officials needed to keep an eye on, “but all things considered you are in good health,” Mr Powell said.

Danske Bank charged over €200bn money-laundering scandal Danish prosecutors file first criminal case against bank accused of failures in Estonia RICHARD MILNE, NORDIC

anske Bank was hit with its first criminal charges over a €200bn money-laundering scandal after Danish prosecutors accused it of failing to investigate and report suspicious transactions and having inadequate controls and checks on customers. The Danish public prosecutor for serious economic and international crime laid four preliminary charges against Danske on Wednesday under the country’s anti-money-laundering act. Prosecutors accused the bank of not having reported “a significant number of suspicion transactions” to Danish and Estonian authorities over several years. They also criticised the bank’s board for closing down the Estonian non-resident business at the heart of the scandal “without ensuring that investigations into the customer relations and transactions were made”. Danske said it expected to be charged by Danish prosecutors following the release of its own report — much criticised by investors — into the scandal in September.

“It is in our interest that the case is fully investigated, and we will, of course, co-operate with [prosecutors] and make ourselves, and the knowledge we have, available in relation to the ongoing investigation,” said Jesper Nielsen, interim chief executive. Danske has lost both its chief executive and chairman as a result of the largest money-laundering scandal yet uncovered. The Danish bank said €200bn of Russian and other ex-Soviet money had flowed through its small Estonian branch between 2007 and 2015 with a “large part” of that thought to be suspicious. Rasmus Jarlov, Denmark’s business minister, said of the charges: “The money-laundering case is extremely serious, and it is therefore natural, reasonable and necessary that Danske Bank should be charged by the fraud squad.” Danske is facing other criminal investigations in Estonia and most notably by the US Department of Justice, raising the spectre of multibillion-dollar fines. Bill Browder, the UK-based financier and Kremlin critic, has called on the US Treasury to invoke the patriot act to stop banks clearing dollars for

Danske, a draconian sanction that led to the winding up of Latvian lender ABLV earlier this year. Danske has argued that its situation is different to ABLV, which was accused by the US of institutionalised money laundering. Mr Nielsen said that Danske had taken a number of initiatives against money laundering. “The situation is now quite different from what it was at the time of the suspicious activities in Estonia. We will continue to give high priority to this area.” The four preliminary Danish charges included allegations that the bank had inadequate controls, staff were not trained in anti-money-laundering procedures and nobody was responsible for compliance at management level for some time; that the bank failed to integrate the Estonian branch into its central risk system and check customers’ identities properly; that it failed to check the source of customer funds and whether they posed an increased risk of money laundering and terrorism financing; and that the bank should have investigated and reported suspicious transactions several years earlier.

Thursday 29 November 2018

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BUSINESS DAY

NATIONAL NEWS

FT South African lawmakers accuse...

Argentines feel the squeeze as living standards fall

Continued from page 6

turnround plan for Eskom to overcome recurrent blackouts. Wednesday’s report from the portfolio committee on public enterprises joins other official probes in finding that Eskom executives improperly issued the contracts to McKinsey and Trillian. This month an investigation commissioned by South Africa’s Treasury found that McKinsey’s appointment violated the constitution. Eskom is regarded as the single biggest target of the alleged Gupta conspiracy. It provides nearly all of the electricity for Africa’s most industrialised economy. Contracts to supply coal to its power stations dominate the mining industry. Gupta family members and Duduzane Zuma, Mr Zuma’s son who went into business with them, exerted “undue influence” on Eskom’s decisions, the MPs’ report said. Mr Zuma and his son deny wrongdoing. Mr Ramaphosa has launched a clean-up at Eskom, including replacing implicated executives, but corruption and waste have brought the monopoly and its R336bn of governmentunderwritten debt close to financial collapse. Eskom faces “severe financial difficulty”, its chairman Jabu Mabuza said while unveiling interim results on Wednesday. McKinsey’s work at Eskom is already the subject of a number of regulatory probes in South Africa, including a criminal investigation launched by anticorruption police. Wednesday’s report will renew questions about its role. “It is highly improbable that a company as sophisticated as McKinsey could, in good faith,” have assumed that the contract with Eskom was lawful given red flags such as fees that the consultancy could effectively set for itself, the report said. “The remuneration model for McKinsey was based on hypothetical cost savings that were attributed to McKinsey’s intervention by McKinsey itself,” it said. A spokesperson for McKinsey thanked the committee for its work and said it was studying its recommendations. “We welcome the report’s acknowledgment of the steps that we have taken and recognise the committee’s report highlights some areas, particularly concerning public-sector contracting processes, that we have already sought to address.” McKinsey’s own investigation of its Eskom work found no evidence of corruption.

Reformist president’s standing has all but evaporated at home as inflation soars

BENEDICT MANDER

The 3.9 per cent hit to the economy would represent a roughly £100bn annual blow in 15 years’ time in today’s prices © AP

Theresa May’s Brexit plan would result in 4% hit to GDP Government forecast shows annual £1,100 per person reduction in living standards CHRIS GILES

rime minister Theresa May’s Brexit plan will make people worse off than if the UK remained in the EU, the government’s own assessment of the agreement concluded on Wednesday. Officials did not model an exact representation of the deal agreed with Brussels, but the published variant closest to the deal, including restrictions on migration and some new trade frictions, suggests a 3.9 per cent hit to national income in the long term compared with staying in the EU. In a move that will raise sharp criticism of the assessment, the government did not model the backstop, which will leave Great Britain in a bare bones customs arrangement and Northern Ireland in a much closer arrangement, if the UK and EU do not strike a separate deal in the years to come. The 3.9 per cent hit to the economy would represent a roughly £100bn annual blow in

15 years’ time in today’s prices, equivalent to about an annual £1,100 per person reduction in living standards compared with an assumption that the UK stayed in the bloc. The assessment, produced by a cross Whitehall team of economists, is not an economic forecast but an attempt to examine the effects of increased frictions to trade and regulatory changes after Brexit. It suggested that a Canadastyle free trade deal would be significantly more costly, producing a 6.7 per cent hit to the economy, and leaving the EU with no deal would be the worst scenario, with a 9.7 per cent hit to the economy. Philip Hammond, UK chancellor, put a brave face on the figures on Wednesday, but he accepted that the results suggested Brexit would make people poorer. “If you look at this purely from the economic point of view, there will be a cost to leaving the EU because there will

be impediments to trade,” Mr Hammond told the BBC’s Today programme. The pound reached a session high as investors absorbed the report, although it remained within its established trading range between $1.27 and just over $1.28, rising 0.4 per cent to $1.2795. The government produced multiple estimates, mostly based on the Chequers White Paper, which, the analysis accepted, was not necessarily likely to be achieved. If the UK secured frictionless trade at borders and kept free movement, the economic hit would only be 0.6 per cent of gross domestic product, it concluded, and a 2.5 per cent hit if it was able to retain frictionless trade and net restrict migration of European citizens to zero. Seeking to minimise the impact of the government’s own assessment of the deal, Mr Hammond said “the economy will continue to grow so this is a very modest impact on the overall size of the economy”.

Netflix to ramp up productions in Europe in 2019 Streaming service alarms rival broadcasters with move to make 221 projects in region next year MATTHEW GARRAHAN

etflix will ramp up the number of series, documentaries and movies it produces across Europe in 2019 as it steps up its competition with broadcasters on the continent. The streaming service is on course for 141 projects in Europe this year consisting of 81 original productions and 60 co-productions or programmes licensed from other producers. In 2019 it will make 221 projects, including 153 originals. Netflix has sharply increased its content investment in Europe this year and will spend close to $1bn on original productions across the continent. But its ambitions have alarmed European broadcasters, which are struggling with the migration of audiences to on-demand services from “linear” viewing, when audiences tune in to watch

at a particular time. “A year ago we had one or two shows in Spain, next year we will have six or seven,” said Erik Barmack, Netflix’s vice-president of international originals. “We are ramping towards 10 to 12 in each country . . . it could be more in particular markets.” ItsnewEuropeanprojectsinclude The Eddy, a musical drama series from Damien Chazelle, the director of La La Land, which will be filmed in Paris in French, English and Arabic. Netflix at present has 40 projects in production or being produced by partners in the UK, including acclaimed hits such as The Crown and Black Mirror. Its latest series, Sex Education, about the teenage son of a sex therapist, is set in Wales. The company is a big buyer of programming from UK producers. The recent hit The Bodyguard was made by ITV and screened in the UK on BBC One, but Netflix owns the international rights and is showing it on its service.

“We’re seeing a need in our biggest European markets for more local series and regional programming,” Mr Barmack said, adding that the shows were crossing borders and attracting large audiences across Netflix’s international customer base. It has about 130m subscribers worldwide. The UK’s media watchdog this week urged the country’s public service broadcasters to collaborate on a jointly owned streaming service that could showcase the best British programming. Sharon White, chief executive of Ofcom, warned that “cord-cutting” — the cancellation of pricey cable or satellite subscriptions — was growing in the UK. “Cord-cutting is no longer just a US phenomenon,” she told the Out of the Box conference in London. “In the UK, for the first time ever last year, the amount spent on traditional pay TV fell, and the number of subscriptions was overtaken by the streaming services.”

lorencia Bulacios says it has been too long since she last splashed out on a cut of Argentina’s famed beef as she walks home clutching a couple of shopping bags holding the bare minimum she needs to feed her family this week. “No treats for us. I have to rely on the promotions,” sighed the 45-year-old cashier and single mother, explaining that her wages are failing to keep up with inflation that is expected to reach almost 50 per cent this year. “I used to think that this government was going to be able to fix the economy. Now I’m not so sure.” As President Mauricio Macri prepares to host the annual G20 summit in Buenos Aires on November 30, with some 10,000 visitors already experiencing a taster of Argentina’s runaway inflation as hotel prices soar, the favourable reputation that the reformist president still enjoys among world leaders has all but evaporated at home. When Mr Macri swept to power three years ago promising to put an end to decades of economic volatility, most Argentines were optimistic about their future. But this year that optimism has begun to fade amid a currency crisis that saw the peso lose about half of its value, forcing a $56bn bailout from the International Monetary Fund. Examples of how Mr Macri’s “Let’s Change” coalition has struggled to change the country abound. Trade unions remain as powerful as ever — on Monday the state airline went on strike grounding 371 flights in protest against the suspension of 367 employees earlier this month. With interest rates until recently higher than 70 per cent, small and medium-sized businesses and the lower middle class in particular have suffered from the continued economic volatility. High inflation means that real wages are expected to fall by 11 per cent in the last four months of 2018, according to Ecolatina, an economic consultancy. As a result, Mr Macri’s approval ratings of about 30 per cent are scarcely higher than those of former president Cristina Fernández de Kirchner, who left power with the country on the brink of an economic crisis. “Business was hardly great before [Macri came to power], but it is certainly no better now. Our sums just aren’t adding up, and it’s not like we can borrow to smooth over the cracks. We are in danger of having to close down,” said the manager of a clothing store just off a noisy avenue in central Buenos Aires, requesting anonymity. The IMF predicts that Argentina’s economy will contract by 2.6 per cent in 2018, and by 1.6 per cent in 2019. That has cast doubt over Mr Macri’s ability to win in presidential elections next year, when he will run for re-election.

BUSINESS DAY

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Thursday 29 November 2018

BUSINESS DAY

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news you can trust I thursday 29 november 2018

Opinion How does Nigeria avoid the coming anarchy? Christopher Akor Chris Akor, a First Class graduate of Political Science, holds an MSc in African Studies from the University of Oxford and is BusinessDay’s Op-Ed Editor christopher.akor@businessdayonline.com

he politicians may tell us otherwise, but data shows us that Nigeria is currently sitting on a keg of gunpowder with over 40 million of its working population either unemployed or underemployed even as 2.6 to 3 million people join the labour market yearly. If Nigeria hopes to escape the coming anarchy, it must begin to think of how to provide jobs for these millions of young, angry Nigerians. That was my main concern as I went through the policy documents of the two presidential frontrunners. I was eager to see how they planned to tackle the jobs challenge, especially considering that a record nine million people lost their jobs over the last three years and the unemployment rate doubled from 8.9 percent in the second quarter of 2015 to 18.8 percent Q3 2017. But, just like in the past, Muhammadu Buhari and Atiku Abubakar have only vague and

bogus promises to create millions of jobs without going into specifics of exactly how those jobs would be provided and by whom. In the Buhari APC abridged manifesto “Next Level: We are all going higher”, the president promised to scale up job creation a cumulative of 19.5 million jobs in the next four years. A breakdown of the promised jobs include employment of additional 1 million N-Power graduates, skill up 10 million Niger ians under a voucher system in partnership with the private sector, 1 million additional jobs through the Anchor Borrowers Scheme, 1.5 million jobs along dairy, beef, hide & skin, blood meal, crops, 5 million jobs through agriculture mechanisation policy with tractors and processors, 700, 000 jobs in the tech and creative sector through provision of $500 million innovation fund and the training of youth for outsourcing market in technology, services and entertainment, and another 300, 000 jobs through up scaling the school feeding programme. But the document is notoriously silent on the specific details of how the jobs are to be created. This new manifesto is a perfect replica of the 2015 manifesto where the president also promised to “make our economy one of the fastest growing emerging economies in the world with a real GDP growth averaging at least 1012% annually”, and to create three million jobs annually, or as another policy document of

the APC avers “to embark on vocational training, entrepreneurial and skills acquisition

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...the plans of the frontrunners for the top job are so nebulous and difficult to pin down and track since they are mostly heavy on broad policies and not specific and detailed plans on how these jobs would be created

scheme for graduates along with the creation of Small Business Loan Guarantee Scheme to create at least 5 million new jobs by 2019”. The manifesto then was silent on specifics and strategies. Ho w e v e r, s i n c e c o m i n g to power, the economy has not grown above 2.5 percent. Indeed, Nigerian witnessed its first recession in 25 years under the administration and even after exiting recession, has not grown beyond 1.7 percent, far below the population growth rate of 2.6 percent, a

factor in the endemic spread of poverty in the country. Indeed, some months ago, the Brookings Institution declared Nigeria the poverty capital of the world with a record 87 million people living in extreme poverty and another 8,000 people sliding into extreme poverty on a daily basis. Regardless, the government has been stubbornly trumpeting its own facts : that since coming to power in 2015, it has successfully lifted 10.073 million Nigerians out of poverty to prosperity (according to minister of budget and national planning Udoma Udo Udoma) and that it has created up to seven million jobs (according to Chr is Ngige, minister of labour and productivity) with many of those jobs domiciled in the rice production sector where the presidency claimed the nation is almost becoming self-sufficient in its production. However, the United States D e p a r t m e nt o f A g r i c u l tu re busted the government’s bubble when it released figures showing that rather than reducing, Nigeria’s rice import has rather increased and is projected to jump next year to 3.4 million metric tons, making Nigeria the world’s second biggest rice importer after China. On his part, Atiku promised to “Target the creation of up to 3 million self-and wage-paying employment opportunities in the private sector annually, across all the economic sectors, including agriculture, manufacturing, MSMEs, ICT and Sports and Entertainment.”

He also promised to create “opportunities for large corporates as well as for small farm holders and microenterprises to nurture entrepreneurs and create jobs.” Unlike Buhari though, Abubakar got some fundamental principles right by promising to first stimulate the growth of the economy by firmly committing to promote a “private sector-driven, competitive and open economy supported by efficiently run public institutions.” Only this can unlock the economy and enhance its capacity to provide opportunities for the economically active population to participate in the economy through wage or self-employment. It is also heartening that he has committed to the religiously pursue the active participation of the private sector in the economy through public private partnerships since government do not have the needed resources to provide infrastructure and only the private sector holds the key to providing the millions of jobs needed to absorb the over 35 million unemployed and under-employed Nigerians and also absorb the over 2 million Nigerians entering the job market annually. Haven said that, and although the policy document lists the steps the aspirant will take to bring this about, the steps are desperately short of clear cut, workable plans and innovative strategies on how to unlock these jobs across the various sectors of the economy. For example, in his plan on

“what we will do”, he talks about skills acquisition, creation of incubation centres, clusters and industrial hubs and using a four pathway agenda to job creation, the plans says nothing about the current jobs various sectors create, the untapped job-creation potentials of the sectors and specific plans on how to open up new sectors or expand existing ones and give numbers to the jobs that could be created from each of those sectors. In this, Buhari’s plan does better than Atiku’s. Besides, the plans of the frontrunners for the top job are so nebulous and difficult to pin down and track since they are mostly heavy on broad policies and not specific and detailed plans on how these jobs would be created. Like we have seen in the past, the government could easily claim to have fulfilled its promise by making some policy announcements or creating some agencies to implement the policies regardless of the number of real jobs that are created through those policies. Jobs are central to the econ o m i c d e ve l o p m e nt o f a ny nation. Economists have long established a link between the employment rate and economic growth. When citizens are gainfully employed and produce valuable goods and services, both the citizens, the economy and the society prosper and vice versa. And that is the first indices with which leaders are judged in advanced economies is the number of jobs created and how low the unemployment rate is.

Corruption, rule of law and another undiplomatic diplomat

Ik Muo Ik Muo, PhD. Department of Business administration, OOU, Ago_Iwoye 08033026625, muoigbo@yahoo. com, muo.ik@oouagoiweye. edu.ng

omething has gone wrong with the theory and practice of diplomacy. I don’t know what it is but I will soon find out. Whatever the ailment is, it has one key feature: diplomats are now telling their hosts the unadulterated truth and devoid of niceties. On 2/8 18, we discussed the undiplomatic utterances of the then outgoing ambassador of France to Nigeria, Mr Denys Gauer, who identified impunity and injustice as the factors driving the killings and bloodshed in several parts of the country and declared with a straight face that foreigners were not involved (see Ik Muo, Acute cluelessness, Benue killings and the undiplomatic diplomat BusinesDay, 2/8/18:,). Recently, it was the turn of the United States ambas-

sador to Nigeria, William Stuart Symington, to say his own blank truth. On 2/10/18, he told an audience in Ilorin that “What many consider as the great corruption is stealing of money but what to me is the great corruption is when people are deprived justice, when you do things without regard to the rule of law.” That was as he delivered a lecture on “Citizen Leadership and the Link between Economic Diversity and Democratic Good Governance”. The diplomat had unknowingly addressed two contentious issues. The first is our very narrow definition of corruption, which is limited to stealing. Under this worldview, the executive protection accorded by the presidency to the Executive Secretary of National Health Insurance Scheme, is not corruption. Well, there may not be much wrong with this as an Executive Secretary is receiving Executive protection!)Secondly, he highlighted the unrepentant disdainful attitude of our PMB to Rule of Law( ROL) and by extension his failed attempt introduce his own version of court-packing plan. On February 5, 1937, President Franklin Roosevelt of US announced a controversial plan to expand the size of the US Supreme Court, ostensibly to make it more efficient. Those who usually read between the

lines believed that Roosevelt was trying to “pack” the court and thus neutralize Supreme Court justices hostile to his New Deal. Even though Americans liked the new deal, they refused to allow him achieve it by diluting judicial independence, a core element in the rule of law matrix. And that was how the plan failed. Recently, President Trump, the author and finisher of Trumpocracy, considered breaking up the 9th Circuit Court of Appeals because they flatly rejected his travel-ban policy. That was another courtpacking plan though it was dead on arrival. In Nigeria, our dear president earnestly wanted to introduce a court-packing plan. We all recall how PMD lamented ad nauseam that the Judiciary was the only stumbling block to a key item in his change-agenda: to ride Nigeria of corruption. We also recall the gestapo-style invasion of some judges( who may or may not be guilty), in the war against judicial corruption. That was a prelude to PMBs court-packing plan, which was captured succinctly by the ‘troublesome’, Abraham Ogbodo, when he raised this alarm: there is an undeclared campaign to cleanse the bench of unwilling judges and retain only those who can rapidly create evidence to punish corruption suspects and sponsors of irresponsible groups that disturb the polity

with agitations for restructuring and self determination ( Buhari and his theory of relativity, Guardian, 8/10/17, p10). On the disdainful disregard for the ROL in Nigeria, the Word Justice Project passed its judgment when it downgraded Nigeria to 97 out of 113 countries in the 2017/2018 Rule of Law Index (RLI) released on 31/1/18. The RLI measures rule of law adherence across 113 countries worldwide. I cannot remember whether the government reacted to that ranking in its characteristic manner: savouring favourable rankings while lampooning unfavourable ones. But neither the ranking nor the US Envoys comments came as a

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This is the only country where the president (or the presidency), will blatantly ignore the ROL and have the audacity to justify such an aberrant position

surprise to the son of man! This is the only country where the president (or the presidency), will blatantly ignore the ROL and have the audacity to justify such an aberrant position. We have been told repeatedly why Dasuki should not be allowed to enjoy the bail granted him by 1001 courts in the land; the same fate that that befell the belligerent Nnamdi Kanu before he escaped by an act o f G o d . Ju s t t h e o t h e r d ay , President Buhari continued to propagate his theory of convenient ROL ( respecting ROL when it is convenient to him or his government) when he told Nigerian lawyers under the aegis of Nigerian Bar Association, that “Rule of Law must be subject to the supremacy of the nation’s security and national interest.” That was in his address at their 2018 annual Conference. Because President Buhar’s body language supports convenient ROL, the various agencies under the government has been committing grievous ROL infractions. This is evidenced by the activities of various agencies like DSS (Sambo Dasuki, Nnamdi Kanu, El-Zakzakky, Jonas Abiri Ifeanyi Ubah, Babatunde Gbadamosi, Core TV, teachers of Federal Government Girls College, Calabar); CCT ( Saraki, whose charges were amended 10 times and Orubebe); EFCC ( various account-freezing antics and

by-fire-by force convictions as in the cases of Omtseye, former NIMASA DG Oronseye-former Head of Service), the Nigerian Police( Invasion/Blocking the residences of Saraki, Ekwerenmandu and Edwin Clark, IPOB members Premium Times publisher and parallel Market operators); and the Attorney general( Justice Ademola et al) There are other areas in which we have suffered ROL aberrations. Our Press freedom index has fared badly in recent times, as Nigeria dropped from 111 in 2016 to 122 in 2017, out of 180 countries, as compiled by Reporters Without Borders. President Buhari sent soldiers to Gambia and spent money from the National coffers without approval. Of course he has retained Maku in office in the Permanent Acting boss as EFCC, probably because among other things, he is the only living Nigeria that can manage EFCC. During an address delivered at the Commonwealth meeting in May, 2016, Mr. Buhari declared his respect for ROL, saying to the global audience, “I am committed to applying the rule of law and to respecting human rights,” But what the US envoy and all the issues raised here have reminded us is that in a body-language regime, action speaks louder than voice. I am awaiting another diplomat to tell us another truth.

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: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.