BusinessDay 29 Sep 2020 by BusinessDay

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news you can trust ** TUESday 29 september 2020 I vol. 19, no 660

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Local founders allege forceful takeover by PEs, VCs

Odinaka Anudu

ounders of Nigerian businesses who brought in private equity (PE) investors and venture capitalists (VCs) two to 10 years ago are locked in ownership tussles with their investors, with most of the cases now at the behest of lawyers and courts. The situation portends danger for foreign direct investment into Nigeria, but also exposes the vulnerability of Nigerian businesses that are forced to Continues on page 30

Oluwole Oshin (l), GMD, Custodian Investment plc receiving the Top CEOs Awards from Ogho Okiti, MD, BusinessDay Media, during the presentation of 2020 Top CEOs and Next Bulls Awards organised by BusinessDay in partnership with the Nigerian Stock Exchange in Lagos. Pic by Pius Okeosisi

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HealthPlus, Chicken Republic, others locked in ownership tussles with PE investors Wakanow, AIC, PathCare on similar path

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How electricity tariff dispute could worsen cash crunch in power sector ISAAC ANYAOGU

igerian Labour Congress (NLC) along with its affiliate g ro u p s h a s c o m pelled the Federal Government to suspend the new electricity tariff increase that took effect September 1, calling for jusContinues on page 30

Inside

We are financially, economically stable - Lagos P. 31

Tuesday 29 September 2020

BUSINESS DAY

news Government to ban oil trucks with capacity above 45,000 litres

L-R: Olayinka Omigbodun, provost, College of Medicine, University of Ibadan; Ladi Balogun, group chief executive, FCMB Group plc; Subomi Balogun, founder, FCMB Group; Idowu Olayinka, vice-chancellor, University of Ibadan, and Jesse Otegbayo, chief medical director, University College Hospital (UCH) Ibadan, during the signing of a Memorandum of Understanding (MoU) and official hand over ceremony of the Otunba Tunwase National Pediatrics Centre, Ijebu Ode in Ogun State (solely financed by Otunba Balogun) to the University of Ibadan and UCH for administration and management, held in Lagos.

…decries level of carnage on Nigerian roads

Presidency that drew attention to the need to address orried by the businesses that had to do with carnage on the distribution of petroleum roads by unscru- products and the problems pulous petro- they constitute to human lives leum tanker drivers, the Fed- and infrastructure. eral Government has decided It is rather unfortunate that to ban fuel trucks with capacity we migrated from trucks carmore than 45,000 litres. rying 30,000 litres to 40,000, It means that those fuel 60,000, 90,000 litres capacity, tankers that have capacities to plying our roads and we can carry 60,000 to 90,000 litres of see how fatal accidents do fuel would be limited to load- happen, especially with the ing just 45,000 litres in order to big trucks on our roads, he limit the pressure they exert on lamented. the roads due to their weights. The DPR director said at the Because of the loads the meeting with the Presidency, trucks carry they are easily a decision was taken to see thrown off balance on the how the incidents of accidents roads thereby causing serious caused by these trucks could Titi Omobude accidents and damages to be reduced. infrastructure. igeria unexpectedly According to Auwalu, there Speaking during a visit of are about 45,000 of these high cut its monetary members of the Depot and capacity trucks plying Nigerian policy rate last week Petroleum Products Market- roads distributing petroleum in the hope it can ers Association of Nigeria products, and to curb their spur growth for an economy (DAPPMAN) to Department menace on the road the DPR reeling from years of under of Petroleum Resources (DPR) has created same registration investment in key sectors. in Lagos, director of Petroleum for haulage. Last quarter, Nigeria reResources, Sarki Auwalu, out“It has been agreed that ported its steepest drop in lined four cardinal focuses vehicle that would carry petro- gross domestic product in at for downstream operations leum products should be those least a decade, and the GDP as parts of efforts to continue whose capacities are 45,000 print out for the third quarter is to enable businesses create litres and below. Even when likely to show that Nigeria has opportunities in the oil and a truck has more than that ca- entered its second economic gas sector. pacity the standard would be contraction in four years. Auwalu disclosed to his that they cannot load beyond The cut to 11.5%, a rate not visitors that three years ago 45,000 litres. seen since 2016, was supportthere was directive from the ed by six of the 10 members of the monetary policy committee who attended its last meeting, is the second this year and came against the forecast of all six of Bloomberg’s economists who were surveyed prior to the … talks with new investor still ongoing MPC decision. Nigeria’s economy, which March 14, 1975 as a joint venMIKE OCHONMA ture between the government never really recovered from its sset Management of Nigeria, Automobiles Peu- last recession in 2016, has been Company of Nigeria geot of France and Nigerian hammered by the coronavirus (AMCON) has dis- shareholders. sociated itself from When the balance sheet some newspaper report that of the assembly plant began PAN Nigeria Limited (formerly to show negative after many Peugeot Automobile Nigeria years of struggle in the face of Modestus Anaesoronye Limited) has been sold to a new dwindling demand for new he need for flood core investor at N21 billion. vehicles up until 2005, ASD insurance cover that When contacted by text Motors acquired the plant unwill enable farmers message Monday, Jude Nwu- der the Federal Government’s and communities zor, head of corporate com- privatisation programme at prone to flooding recoup munications of AMCON, said, the sum of $32 million. their investments and also “The process is ongoing, but Later in the year 2012, the get indemnified in the event not fully consummated. We assembly plant came under of losses has been re-echoed. will issue a statement at the the receivership of AMCON, This is coming on the heels end of the transaction. AM- a recovery agency of the Fed- of recent flood incidents in CON does not announce as- eral Government that has been parts of Nigeria including set sale in the middle of a managing it pending the time Bauchi, Jigawa and Kebbi, transaction until the deal is a new core investor would be where over 500,000 hectares concluded. What you are read- found. of farm produce estimated ing in some media platforms When contacted last week, at over N5 billion were lost, are speculative reportage. I head of corporate communica- with a lot of people rendered also do not know where they tions for PAN, Oladeji Bamidele, homeless. conjured the N21 billion they would not confirm the developThe Nigeria Hydrological claimed we have sold PAN for.” ment to BusinessDay. Accord- Services Agency (NHISA) had PAN Nigeria Limited was ing to Bamidele, “AMCON has in February this year through conceived in 1969 by the then not communicated to PAN its director-general, Clement Federal Military Government officially” even as he disclosed Nze, warned and advised all under Yakubu Gowon, now a that he too had also heard the stakeholders to start preparretired general. news of the sale of the 45-year ing for the 2020 flooding The then sprawling au- old plant, saying that the picture season in order to avoid the tomobile assembly plant, would become clearer as the ‘Fire Brigade Approach’. employing thousands of Ni- days and weeks roll by. Nze urged the various levgerians built at the cost of Bamidele stated, “Until els of government in Nigeria N8.5 million with an installed AMCON communicates to the to begin to prepare for poscapacity for about 20,000 Peu- PAN management officially, sible flooding for 2020, open geot cars produced annually, everything we are hearing up the drainage system, or was later commissioned on remains a rumour.” create drainage paths where Olusola Bello

Nigeria delivers much-needed interest rate cut, but is there room for it to work?

PAN’s N21bn acquisition report misleading - AMCON

pandemic lockdown and the severe oil price collapse that it caused. The MPC also adjusted the asymmetric corridor, which means the cost at which lenders borrow was lowered to 100 basis points above the monetary rate. Add these measures to earlier interventions which raised the minimum loan-todeposit ratio for banks. It is yet one more step by the monetary authorities to kick life into an economy that has been better defined by structural bottlenecks and an acute foreign exchange shortage, which hold down growth. The classical response to a rate cut this is significant is for businesses to invest more, and it is why the authorities are banking on this measure. However, Nigeria’s economy is far from being in a classical state and so its response to the rate cut cannot truly be gauged until the results come in. While the authorities are

right to expect that the rate will lead to positive expansion in economic activity, some economists are betting on the contrary. Given business people are all rational, it is perhaps not far-fetched to predict that wearied investors in Nigeria troubled more by the macroeconomic disequilibrium may continue to hold or even seek the exit door as could be the case with foreign portfolio investors stranded in the country. In another hand, these investors may even compound the woes of the authorities by taking advantage of cheap naira to chase after the US dollar, a situation that will further sink the economy. After the rate cut announcement, Bloomberg published the view of its Africa economist Boingotlo Gasealahwe who said, “The rate cut is unlikely to achieve the desired effect.” According to Bloomberg’s economist, “What is more likely in our view is for growth to continue to be undermined by

ongoing currency restrictions, and for inflation to continue to accelerate. “This will intensify the current dilemma facing the monetary policy committee and weaken the effectiveness of monetary policy even further as the central bank adopts an ever-widening array of distortionary tools that pull in different directions in order to reconcile these competing objectives.” The same businesses that are being enticed with the rate cut are already traumatised and hurting from the debilitating effect of the pandemic and also from the acute foreign exchange shortage. That is the hard nut that has to be cracked. For Oluwasegun Akinwale, research officer at Nova Merchant Bank, “any policy that focuses on stimulating credit growth alone without a major revamp of the structural bottlenecks in the economy will do little to boost output.”

Need for flood insurance heightens as homes, farmlands wiped away

www.businessday.ng

… food security threatened there were none. “Remove the structures that are within the flood plains, and let there be adequate drainage paths,” he had advised. Eddie Efekoha, managing director/CEO, Consolidated Hallmark Insurance plc, had stated in an interview with BusinessDay that flood insurance before now was never taken seriously in Nigeria because the risk exposure was almost non-existent. So, insurers could dash flood cover for free to the insured when they buy fire, burglary and home owner’s insurance cover. “So, flood cover is given as policy extension for fire policy, and so covers damage or loss to a property because of fire. It is a specific form of insurance in addition to homeowner’s or property insurance,” Efekoha said. But the dynamics have changed since the recent incidents that resulted to huge

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claims for insurance companies, he said. “A lot of people are filling claims now as a result of damages caused by flood, and so flood cover can no longer be taken for granted, he stated. Nimi Akinkugbe, financial adviser and expert on money matters, said, “We live in uncertain times. Violent floods and storms, volcanic eruptions, earthquakes, tsunamis, hurricanes; the list goes on. Such disasters have one thing in common; they are ‘catastrophic risks’ that are not likely to affect you in your lifetime, but if and when they do happen, the consequences can be devastating. Because such risks are so rare and unpredictable, often striking without warning, they can be badly underestimated. Yet, just being prepared can save you from untold distress. “ According to Akinkugbe, insurance is a crucial instrument that sadly most Nigerians still ignore; that is, until @Businessdayng

they need it most. “Are you one of thousands of Nigerians who suffered terrible damage to your property from the recent deluge of rains? There is no better time to revisit the issue of insurance than when we have a live and practical situation that brings home this critical issue. How well are you protected against flooding and, indeed, other disasters? You will find that the insurance premium is a small price to pay for the peace of mind of having your belongings insured,” she said. Some of the operators, who spoke with BusinessDay Monday, stated that the exposure was big but still unquantifiable due to lack of data. “Insurers are willing to go full blast on providing cover, particularly for corporate institutions and farmers in exposed areas, but it could be very catastrophic because flood claims are borne between government and insurance companies in most jurisdictions, according to one of the players.

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The clamour for restructuring

Citizens’ voice matter Liberal Minded

MA JOHNSON

ll military problems are political; all political problems are economic; and all economic problems are technological - Carl Von Clausewitz, “On War” This piece you are about to read is slightly modified, but was first published in this column on 3 October 2017 with the title - “Statesmanship and the calls for restructuring of Nigeria.” Since then it has always been published in this column during independence anniversary celebrations to remind those in authority that there is a pending job which needs urgent attention- restructuring the country. Permit me to state that this article is about fostering peace and unity in Nigeria; it’s not on warfare. The perception of people about the government and its military is key in strategic thinking when a nation requires reformation. The strategy to be adopted must take into consideration prevailing socio-political and economic factors, and indeed the multi-cultural values of the people. Although strategy at the highest level and its broader sense covers both military and civil aspects of societal continued existence, it is the mode of survival of the people that matters. The people of Nigeria need to survive current political, economic and social complications. Regrettably, the mode of survival remains a challenge. The voice of citizens’ matter. Most Nigerians are clamouring for restructuring. The demand for restructuring is at different decibels with devolution of

power, resource control, constitutional amendment and regional autonomy being various stanzas of the demand. Some Nigerians say they want a brand-new constitution and some scholars of constitutionalism have suggested how the nation could get it. Some analysts said that the process for a new constitution reflecting the aspirations of the people can only be initiated by Mr President. They further argued that the National and state assemblies are not empowered by law to initiate the process for a new constitution. While some experts say that our federal and state lawmakers are only to carry out oversight functions, make laws and represent their people. Will the Senate empower Mr President to initiate the process of a new constitution in order to foster peace and stability? Maybe, maybe not. Brazil, Kenya and Zimbabwe are some of the countries that have new constitutions, according to reports. One thing is certain: There can be no development in any country without peace and stability. But there are those who want true federalism, in addition to resolving the North-South divide in Nigeria. Endless desires, you may say. Let’s turn our attention to the paraphrased quote above. The society, according to Clausewitz, is a “remarkable trinity” comprising the people, the commander and his army, and the government. One could argue in support or against the fact that the people constitute the centre of gravity of a nation with a population of about 200 million. If the people are prosperous, you have a rich nation. And when they are poor, you will have a poor nation laced up with agitations. So, when the military in any society is having problems particularly with the people that it is empowered to protect as reflected in the above quote, one should examine thoroughly the political leadership. The job of the military is pure and simple- defend the territorial integrity of Nigeria from land, sea and air. But when the military, as alleged,

embarks on torturing, harassing and intimidating “innocent” people as a way of carrying out its legitimate functions, then the commander and the army may have to explain to the people on how it arrived at the overzealousness exhibited in executing its mandate. Today, the population of Nigeria, which is about 200 million, is almost six times what it was at independence in 1960. The political challenges of the nation such as pervasive corruption and huge cost of governance amongst others have compelled the people to clamour for restructuring. Citizens believe these challenges are responsible for extreme poverty and a fragile economy which need to be squarely addressed. The oil boom of the 1970s has not only weakened the nation’s agricultural base, but has destroyed significantly the promising technological foundation which would have sustained the phenomenal upsurge in population. This was the genesis of Nigeria’s economic problem. The oil boom of the past became our oil doom instead of giving birth to technological boom. When a sick economy is not responding to various policy treatments, it only shows that technology is conspicuously missing in the nation’s quest for industrialisation. Due to Nigeria’s reluctance to emerge as an industrialised nation with a thriving capital goods sector, reducing inflation figures to single digit has been herculean. What do people need in a country as diverse as Nigeria? Each generation of Nigerians looks for leaders- statesmen and stateswomen- who will do what is right and just, build a consensus among the people, and who will bring about the required reformation in the nation. Unfortunately, statesmen and stateswomen are very scarce in the society. Where are we going to get political leaders who will take responsibility for their own actions in fostering unity between the north and the south in our country? It is time for men and women who are true democrats to stand in defence of the unity of Nigeria and the

‘

The oil boom of the past became our oil doom instead of giving birth to a technological boom. When a sick economy is not responding to various policy treatments, it only shows that technology is conspicuously missing in the nation’s quest for industrialisation

citizens. Strong-minded political leaders out there who possess egalitarian spirit must compulsorily display leadership qualities that we need to remember at this time of our nationhood. Nigeria needs honest and Godfearing leaders in the nation’s political landscape. This is because “when the righteous are in authority and become great, the people rejoice; but when the wicked man rules, the people groan and sigh.” Political leadership at all levels of the society is expected to set examples to the present generation. They are to work tirelessly to leave a legacy of greatness for the next generation to build upon. Since those in the Buhari-led political party have faith in restructuring, their word should be their bond. Restructuring must be done with all sincerity. Why? An energy which can neither be created nor destroyed has been generated through the demand for restructuring. If the call for restructuring is not attended to now with all sense of patriotism, it may metamorphose into something else in the future. Notwithstanding any political undercurrent, the clamour for restructuring reverberating across the nation cannot be treated with levity. The Federal Government must give the call for restructuring the attention it deserves in the interest of national peace and unity. The call for restructuring is beyond any political party at this stage. All institutions of the government led by President Buhari are urged to start working on the calls for restructuring. I suggest that the path of dialogue should be chosen as one of the ways to address all agitations. Blocking of roads, and disturbing the peace of the larger society will not make agitators achieve their objectives. Yes, “together shall we be,” but we should ensure that the labour of our past heroes is not in vain. Happy 60th Independence Anniversary to all Nigerians. Thank you. Johnson is an author and a retired naval engineer who has passion for African development and good governance

Learning from Imu Ahia

here is hardly anyone that can deny that Nigeria is struggling economically. Mediocre economic policy planning and implementation have copulated with the impact of the novel coronavirus pandemic, and given birth to a monster of an economic problem. Nigeria now has worrying rises in inflation, taxation, national debt, and unemployment being matched with crippling drops in productivity, a worsening security situation, and foreign investment drops. Bizarre ideas like border closures that cripple land-routed export channels have further hurt businesses and kept the pain and damage growing. Despite all of this, Nigeria has no choice but to work on a way to grow and develop economic solutions for its teeming youth population, which according to the latest estimates from the CIA factbook is put at just under 34 million people between the ages of 18 and 29. These solutions must cover and integrate a range of angles related to education, social organisation, social mobility, employment, wealth-creation, and capital availability. Nigeria’s federal and state governments have entire ministries devoted to education, planning, industry, finance, which on the face of it are committed to these issues, but have without a shred of doubt failed woefully at their primary briefs if we are to use our position as the world’s poverty capital and the current widening equality gap as a pointer.

The good news is that there is a unique system that sort of covers this matrix of angles and has been rather successful, at least on a relative basis. This system has developed marketoriented businesses that employ millions of people, creates wealth, and generate billions of dollars in revenue not just in Nigeria but also in other African countries that it has been able to export itself to. If Nigeria is really interested in coming out of the current economic morass, it will pay to look dispassionately at, and formalise this system. This unique system is the Igbo Trading Network that has in its DNA an apprenticeship scheme called “ịmụ ahịa”. “Ịmụ ahịa” is an Igbo compound word that literally means “learning about markets”. The ịmụ ahịa system is basically an apprenticeship scheme that has young people working with a business where they learn the nuances of that business and then leave after a period of apprenticeship to create their own start-ups. As Nigeria struggles economically and talks a lot about wanting to increase the rate of local manufacturing and production, it would make a lot of sense for the private and public sectors to conduct a deeper study and alignment with this ịmụ ahịa model especially when it is clear from results since the 1970s that it tends to lead to traders becoming manufacturers which is the end-goal. Companies such as Innoson make cars today, but the owner, Innocent www.businessday.ng

Chukwumah, started with trading in much less sophisticated items, and spent seven years of his life as a nwa boy, an apprentice in the ịmụ ahịa system. One largely overlooked aspect of the ịmụ ahịa model is how well it offers a localised and distilled version of an MBA program. The core curriculum of an MBA program offers training in accounting, economics, finance, human and organisational performance, marketing, market research, operations, and strategy. The ịmụ ahịa system does all this in a ruthlessly distilled way that enables even those with limited formal education to acquire a business education while working in what is effectively a start-up and eventually gets them start-up capital and market placements. There is also the angle of information on other African Markets that is shared through informal networks. Supply chains that go through entire African regions are developed in the process, and this helps with building informed business models that make for enhanced resilience and profitability in Africa’s harsh and unpredictable business environment. An MBA definitely has instances where what it offers is of more value than the distilled version of the ịmụ ahịa system but for our extant level of development, the ịmụ ahịa system is far more useful for a large majority of our rather indigent population. There’s no overstating the importance of

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Cheta Nwanze how it helps redistribute capital and opportunity. The availability of start-up capital and market access that negates the impact of low social standing has a significant impact on social mobility and psychological well-being. Inequality is a growing source of worry even in the most developed countries in the world as we can see with the increasing calls for socialist and communist systems in the West that come partly from a large portion of the population simply not seeing how they can get enough capital and opportunity to rise up on the socioeconomic ladder. Looking at Africa and even the world at large today, we can say that the ịmụ ahịa scheme was an idea borne on intelligence that was visionary even though it looked crude in its early stages. Nigeria would likely benefit from aligning with the system in whatever way it can if achieving economic success is truly a goal it’s committed to. Cheta Nwanze is the lead partner at SBM Intelligence and heads the company’s research desk.

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Shifting global demographics: An African opportunity? (2)

Rafiq Raji Africa’s unique demographics — a double-edged sword? (1) he demographic dividend is “the tendency for economic growth to be spurred by rapid growth of the working-age share of the population.” It emerges as the working age population (age 15 to 64) begins to outnumber child dependents (age below 15). With fewer dependents, families invest more in their children and build savings that feed back into the economy, creating a virtuous cycle. Reduced fertility and increased productivity and savings are the key drivers for the demographic dividend (Harper, 2016). SSA’s total fertility rate (TFR) is slowly but surely in decline. However, the levels of African productivity and savings remain far less than ideal. Without improvements in these factors, increases in the working age population may not become a sustainable engine of economic growth. To improve productivity and savings, African authorities must create and sustain an enabling environment that integrates good health, good education, good governance and good economics. The emerging global demographic shifts favour Africa. This may attract

global firms to focus on the continent either as destination consumers or labour markets. With Africa’s projected progression from its current 10 percent to 20 percent of the global population in only thirty years, many global companies would target Africa for consumption at scale. And since about 4 of every 10 human beings may be African by 2100, Africans would not only generate consumption, but also be a source of skilled labour. It is not farfetched to view the continent’s stomachs, hands and brains as the key driver for global economic growth in the 22nd century, when perhaps one out of every two humans may be African. Although Africa currently has the world’s highest birth, mortality and migration rates, it is still in the early stage of its demographic transition, characterised by high fertility but longer (albeit still low) life expectancy (Morland, 2019). In other words, Africa continues to have high birth rates, even as fewer die and more live longer. The outcome is a population boom. Africa’s population growth is likely to account for more than half of global population growth through to 2050, based on the

2015/2016 Global Monitoring Report. By 2050, about a third of Africa’s population would be children, while about a fifth would live beyond the continent. In fact, sub-Saharan Africa could account for more than half of the world’s working age population by 2050. Clearly, the implications of these projections, if realised, would be far-reaching, not only for the continent but for the entire world. But will more able bodies in Africa be assets if there are fewer entry-level jobs? Automation, artificial intelligence and the other digital technologies that drive the so-called fourth industrial revolution (4IR) will reduce demand for many kinds of labour. It may not be realistic to expect Africa to have its time in the sun through labourintensive manufacturing work in an era when digital innovations reduce labour requirements while increasing output quality. Recent reports suggest it may be quite some time before these new technologies become viable and scalable. Businesses find that adopting artificial intelligence at scale is difficult, data is less readily available than hoped, and deploying 4IR tools proves to be

‘

If the rich world’s population shrinks, and 4IR evolves too slowly to help their economies avoid labour scarcity and its effects, might potentially more reproductive regions such as Africa and Asia be able to exploit this gap?

Edited & published by the NTU-SBF Centre for African Studies at Nanyang Business School, Singapore. References, figures, tables, etc. in original article viz. https://nbs.ntu.edu.sg/Research/ ResearchCentres/CAS/Publications/ Documents/NTU-SBF%20CAS%20 ACI%20Vol.%202020-32.pdf “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

Source: United Nations, Department of Economic & Social Affairs, Population Division (2019). World Population Prospects 2019

Is strategy the next phase of banking?

relatively expensive. Humans may be a surer bet, especially in less-developed settings. Thus, Africa may still have time to follow the typical development progression from agrarian squalor to industrial wealth and sophisticated services. True, the window is closing. But enough time probably remains in the 21st century for African manufacturing to take off on the back of the labour advantages derived from its youth bulge, to build a substantial middle class, and to transition to the vast consumer market the industrial world needs to consume its excess output. This raises an interesting question. If the rich world’s population shrinks, and 4IR evolves too slowly to help their economies avoid labour scarcity and its effects, might potentially more reproductive regions such as Africa and Asia be able to exploit this gap? There is a strong logical basis for this reasoning. Morland (2019) views Britain’s population explosion as crucial to its global exploits. “Britain had the population scale to become the world’s factory and then, based on the wealth it accumulated, to become the world’s financier (Morland, 2019).” Is Africa positioned to evolve similarly?

t is about the changing marketplace, stupid! In this “war-zone”, value reigns in full. It determines depth, breadth and other market-based phenomena. Players in this space are thoroughly focused on the exchange of value. It is the definitive anchor for business to consumer and business to business interactions. Without value, no one has any player’s back. Be it ideas, novel product, people and, practice, it must succinctly reward in value for the marketplace to relate. The marketplace elevates, sanctions and kills corporate organisations, as it entrenches/ enforces alignment to its ideals. For continued subsistence, corporations must listen to its prevailing voices, for they are not hooplas. Business organisations must suffer belief in the capacity of the marketplace to determine their provinces. Anything short, they will suffer much. These days, marketplace calmness is rather short, somewhat uncharacteristic, driven by the rapidity of change. Turbulence, flux and disquiet, as longer lasting occurrences, more clearly define it. Corporations dare not buck the trend for many of yesterday’s champion-corporations are today’s laggard businesses. The cliché is quite banal and ubiquitous. Change does not suffer non-constant. Its doggedness kills winning formulas with time, exposes its enigmatic and worrisome posturing. Change acts as the femur-bone of the marketplace. Without it, the market takes a stodgier shape. It is a marker between the enduring and nonentity organisations. As the marketplace morphs, so do great corporations. Non-discerning organisations regard change with disdain, most times, paying the dire fee.

The Nigerian financial services environment travels mildly in the space of change benchmarked against its developed clime counterparts. Unnoticeably, its next evolutionary phase is about the door, rapping. Sadly, it is being ignored by many. Recall the era of the armchair bankers: laid-back, non-aggressive, poorly-suited professionals, who conducted the business of banking in old air-conditioned and dingy offices. Like ministry workers, they were insular to the changing needs of the marketplace. Clients called to engage in business dealings with them, appealed for their attention. Ask the very old banks! For three decades (this write-up assumes 1960 as base year), they ran the rules, poorly managed the stable. Given a slipshod attitude, they sat back, waiting for customers. Transactions were held up; their dynamics and speed were sloth-like. Fussing customers were at their mercy. Look up, at the sky. The once big, strong reliable bank has since been shaded behind a thick cloud. With the passage of time, most failed, except a negligible few, maybe, three. Any appearance of business enthusiasm was photoshopped. Data was discounted, pictured as time-wasting. The changing competitive landscape bore no signals. A transforming customer mindset alerted not. The need for a better understanding of the marketing concept went unheeded. And, when the tornado of change blew, tormented the marketplace, they were caught snoozing. Rather than take a step back to gird their loins, put up a serious fight, they jeered and mocked the new kid-bankers on the block with a marketing-driven template. For the

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arm-chair bankers, it was the massive erroneous assumptions of too big to fail; too little and too inexperienced to impact. All attempts to get them to embrace the echoes of change as whistles for corporate rebirth and rethinking always ended abortively. The subsisting marketing-based banking began its entry into the financial services scene in 1990. The marketing-based bankers are highly genteel in appearance, confidenceoozing, sharp-suited, fearless foot soldiers, trying the untried. With a new template which promised greater focus on customer satisfaction, it was truly banking unusual. With customers growing savvier and a better understanding of competition, the new-breed bankers offered a new service culture that delighted. Unlike arm-chair bankers, the marketingdriven apostles took business to clients. Their movements were generally tactical but short ranged, hinged on the immediacy of gains. Chiefly driven by market demand, product quality went up a notch. On the flipside, marketing-based banking, along the line, suffered shortness of breath. A largely reactionary approach, which hinted at undifferentiated plumage, it promoted the practice of strategic hiring, which led to poaching. The market evolves. At every stage of its evolutionary process, changing phenomena serve its need for renewal in terms of growth for particular organisations and the demise of others. Players’ actions in the eco-system motivate change. Yesterday’s predominating platform varies with today’s because change is sheathed in permanence. Ideas have lifespan; practices, like investments, have tenors.

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Tony Monye

Armchair banking once predominated. For another three decades, marketing-driven banking prevailed. Signs have begun emerging that too is about going down for the count. Premised on the hiccups and inadequacies of marketing-driven banking, the new mode is strategy-based banking. Suffused in critical market-based analysis and opportunity-seeking, strategy-based banking so easily presents the massive unseen marketplace breaks. While an enormous stepup on professionalism, customer satisfaction and outcome measures, its research-driven and foresighted bent can help outpace competition. It is the clear connector in the organisation, linking the hard and soft structures. Strategy-based banking supports proactive (rather than reactive), or orchestrated manoeuvres by practitioners for market edge. Given its deeper understanding that our ambition can be exposed by our concerns, it centres on the whole rather than the piecemeal approach of the marketing-driven bankers. In embracing analysis, it deftly evinces that when figures (data as the new crude oil) are whipped, the cries of opportunities are heard. It promotes the heart and mind capture for brand-building and optimality in outcomes. It is about the system rather than the individual, aiding subterranean manoeuvres. It is strategy-based banking, stupid!

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Tuesday 29 September 2020

BUSINESS DAY

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Fiscal approach to the virus: art or science?

Gregory Kronsten

s pa r t s o f Eu ro p e face a second wave of the Covid-19 virus on a large scale, it is timely to consider what makes an appropriate fiscal response. In the advanced economies, governments are throwing money at the problem in the hope that their borrowing costs will remain low for longer. We may rightly conclude on the basis of its new inflation targeting measure that the Federal Reserve will not raise its benchmark rate before 2023 at the earliest but we should be looking for comfort for at least another decade down the road, given the spending binges this year. To date, the additional fiscal stimulus in response to the virus in Japan has been 21.0 percent of GDP, compared with 2.2 percent in response to the global finan-

cial crisis in 2008; for the UK, the figures are 14.5 percent and 1.5 percent; for the US, 12.1 percent and 4.9 percent; for India, 10.0 percent and 0.5 percent; for South Africa, 8.6 percent and 2.9 percent; and for Brazil, 5.5 percent and 0.6 percent. These figures from a reputable source may well be further increased. Last week Jerome Powell, chair of the Fed, said that the US recovery from the virus could be jeopardised if Congress failed to approve a new fiscal package. As we approach a hotly contested US presidential election, such a bipartisan agreement looks unlikely. Elected politicians and policymakers are tempted by the idea that they can spend their way out of the crisis: they want to be popular and they want to be re-elected. Where there are no elections or they are not genuinely contested, the pressure is off the government. Because we are in uncharted waters, there is no right or wrong way to channel public money. We are all groping in the dark. When we faced lockdown in various forms in March/April (except in China), media commentators liked to say that government X had the best approach. It was too early to say then (because we now face a second wave) and it is too early now to pick government Y as making best use of public resources. Governments can pay the salaries of private-sector employees, they can guarantee loans to selected companies or industries,

and they can freeze or defer taxes. At some point, the rug must be pulled and the benefits withdrawn. Unemployment then rises or soars, depending on how many of the rescued firms prove to be zombie operations. Governments are not best placed to make this call because their skills tend not to include running a successful business. Ministers with this proven expertise are in a small minority in governments. Those who have worked in the private sector tend to have served in household names in investment banks or in management consultancy. (Nigeria is covered by this generalisation.) Under pressure from the political opposition and the media, governments rushed to provide loans to small businesses. We hope that we are off the mark but fear that the bill for loans turned sour because of market conditions or fraud will be substantial. We see the bold talk from governments that they will recover funds from criminals as delusional. Credit checks under many schemes in operation were minimal, such was the hurry. A harsher line would have been for governments to offer a smaller fiscal stimulus, and accept a quicker and larger increase in the bill for unemployment and other social benefits. The bill in question is far smaller in developing countries but a fiscal response for all jurisdictions is a programme of public works. As a result of climate change (negative) and the continuing IT revolution (positive), there is plenty of work to

‘

Under pressure from the political opposition and the media, governments rushed to provide loans to small businesses. We hope that we are off the mark but fear that the bill for loans turned sour because of market conditions or fraud will be substantial

Gregory Kronsten is the Head, Macroeconomic and fixed income research at FBNQuest Capital

Now that the votes counted!

ongratulations to the great people of Edo State who have once again, had their say in deciding their leader, congratulations to the serving Governor of Edo State, Godwin Nogheghase Obaseki on the victory of your election into Office for the second term. This is by far the most strenuous and deserving journey, as you were made to go through the mill to convince the people of what you can and have achieved in Office. It will be noted that this has also brought out the politician in you; some have always been career politicians while you have learnt on the job. Congratulations to the President of the Federal Republic of Nigeria who showed that we can expect a free and fair Election from him come 2023. Congratulations to the teaming actors in the political arena who put in their work and worth with time and sweat to have the people’s voice prevail. Well-done to all and sundry! Now that the work has been done, the work to be done has just commenced; Mr. Governor you need to ensure that (1) the people’s dethronement of a “godfather” does not become your enthronement as one. (2) The mandate given to you is not taken for granted since it is your second and last tenure in office as a Governor. (3) That your MEGA manifesto is followed to the letter because posterity will judge

Matthew Ogieva

you based on this. You have seen how the people can turn against a son that refuses to acknowledge their common interest. It is clear to me that your time has steered up a renewed thinking within the political architecture of governance as well as the direction the state affairs is expected to take henceforth. You have undoubtedly demonstrated that politics is not business as usual and the role of thugs and touts should be drastically reduced to the barest minimum while intellectuals are allowed to stir up ideas in guiding the people to their prosperity and social economic safety. This as you know comes with renewed challenge as the cost of the electioneering battle will impact on the war of benefit to the people. The stake has never been higher for you - with the turn of events - which will manifest in the coming months, as interests and gratifications mount from your new found partners. It is on this backdrop that the people of Edo State will ever demand that they come first as always; the sympathy of your victory is that you choose them first and that choice must continue in the light of the aforementioned. We will ensure that we protect the mandate we gave you from being hijacked or misrepresented. We will ensure that the works you have started are continued and surpassed, we will demand that you look closely into the concern of the

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be done in advanced economies. It is too soon to call out the winning fiscal approach, as we have indicated. Our hunch is that governments in developed economies overreacted under pressure when they opened their wallets and are likely to repeat the mistake in the face of the second wave. To quote Mario Draghi, the last president of the ECB, out of context, elected governments are seemingly minded to spend “whatever it takes” to overcome the virus, and its impact. Public debt in many developed jurisdictions is approaching 150 percent of GDP or more. Whenever inflation takes off and monetary authorities finally respond with tightening, the chickens finally come home to roost. There is another approach to mitigate the blow to the public finances but governments are reluctant to take it. This is a generational shift in wealth that would soften the legacy for today’s young. It could be presented as a non-discriminatory property or pension tax, for example, that would help to free future generations from the fiscal straitjacket that threatens to stifle our economies for years to come. Because most elected governments are conservative in outlook and draw their support disproportionately from older voters (ourselves included), they are unlikely to buy into this approach.

people by looking inward for proficiency and engagement. Four years has been enough for you to look closely at the capacity of the people and ensure that they come first in engagement. During the last few months, we have seen a different side of you, we have seen the dexterous side that wanted to win an election against all odds by truly placing your destiny in the hands of your people renouncing the political infrastructure and mechanism that brought you into power in your first term - and the people did not fail you; it is only natural to expect you do not fail them now that their destiny is in your hands within the next four years. Many things were in contention with you, not the support that the masses had for you, it was sure and unadulterated as can be imagined; you are seen as a true hero and a lasting hope, we will ensure that you do not dash that hope of that petty trader at Oba Market for a better tomorrow. Like the family you are from, the Obaseki’s have been known over the centuries to defend the course of the common man. You must reflect that heritage. We as a people have high hopes for you in the next four years, expecting that this will be the foundation that will birth the revival of Edo as a state and as a people; which is the true mandate that the people voted for. A belief that their tomorrow will bring them joy and prosper-

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ity, that their children will have a life better than theirs, that the land will flourish again; in spite of the struggles that have bedeviled them over the decades. They have always seen themselves taking the front seat when progress and development are mentioned, “Edo odion” it is believed that you’re here to make all this happen. The good people of the state, home and abroad appreciate your victory and expect you to deliver on your many promises as the slate is out to tick the items you pledged in the MEGA manifesto. It is worth knowing that this is a golden opportunity for you to inscribe your worth in the hearts of Edo people and print your name in the sands of time. This we believe would be made possible by your able team led by Mr. Phillip Shaibu. “Nedo ghama ma ye” We are all for the betterment of Edo. Congratulations once again!

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Tuesday 29 September 2020

BUSINESS DAY

EDITORIAL Publisher/Editor-in-chief

Frank Aigbogun editor Patrick Atuanya

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

Bashir Ibrahim Hassan

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

Labour unions strike over petrol, electricity tariff hike, bad for economy

For strikes to matter, they must be for the right reasons

he Nigerian Labour Congress (NLC) and its affiliate organisations have resolved to proceed on a twoweek strike to protest the removal of fuel subsidies which resulted in higher petrol prices and the hike in electricity tariffs. While we understand the outrage, we urge restraint considering that the country’s economic situation demands these policies and there are myriads of other issues demanding collective outrage. Suffice to say, there are many reasons to be angry right now. Nigeria eerily looks like a rudderlesship in an open sea. Worse still, those who pretend to steer the ship behave as if the ship’s anchor is added for decorative purposes. It’s why this government is building a rail line to Niger instead of from Kano to Lagos or Onitsha; It’s why it is not treating the murderous herdsmen as a national security threat as if it’s not food security and national cohesion that are at stake; its why Emefiele’s CBN is playing kalo kilo with exchange rates as if it’s not the lives of people that are involved; its why the service chiefs remain in office while the country burns; its why electoral reforms have stalled even as elections have morphed into mini warfare. Oh, there are many things to

be angry about and Nigerians are justifiably outraged. These issues have a greater effect on their lives than what labour unions are protesting. The government has shut the borders for one year ruining small businesses and causing untold hardship. It is spending billions of dollars to artificially prop up the naira while keeping away foreign investors. It is not creating sustainable new jobs, it is not opening the country for investments or pushing for diversification of our exports. Despite all the noise about agriculture, it only contributes less than 2 percent of exports in 2019. This government thinks N30,000 N-power jobs or sharing N5,000 for market women or turning the Central Bank into a development bank are smart economic policies, when in reality they are the things you do when you’re trying to overtake Venezuela from the rear. The APC-led government has multiplied poverty in the land, increased corruption and further damaged the country’s reputation. Nigeria is at the bottom of every social and economic indicator and the last place on earth to eradicate polio. While the government continues to fumble from one catastrophic policy to another, young people now believe the solution is to flee the country. This president may have fought hard to rule, the reality is he was never prepared.

However, the country is haemorrhaging and we need to stop the bleeding. This is what policies like fuel subsidy removal and electricity tariff review were meant to address. It is not sustainable to continue to spend trillions of naira yearly to subsidise petrol when our clinics lack face masks. Even rich countries do not subsidise electricity for their people and we are a dirt, poor nation despite the maddening binge on Chinese loans. In 2016, we urged this government to remove fuel subsidies as fuel prices were below $30 and the price of refining products were at an all-time low. Several times, we urged this government to review electricity tariffs so the power sector can be viable. But in their characteristic arrogance fuelled by ignorance, they refused, egged on by a horde of nescient supporters. Now the cookie has crumbled and there is no way out. Some of these same reforms we have consistently advocated for were implemented by Egypt around 2016 when its economy suffered a slump as Nigeria’s. It cut subsidies, floated the exchange rate, reformed the business environment and attracted foreign investments including in electricity generation. The results have validated these reforms. In 2019 the economy grew by 5.6 percent up from 4.3 percent in

2016, according to the IMF. Income per capita reached $4689 per adult in 2019, according to Credit Suisse estimates. It is ranked 114th out of 190 countries in the World Bank’s “Doing Business” report, up from 131st in 2016. Unemployment fell from 12.6percent in late 2016 to 8.1 percent in 2019, its lowest level since 2011. Buhari and his economic managers stopped short of full reforms. The government did a partial subsidy removal, fixed prices and called it ‘price modulation’. It devalued the naira but kept manipulating the rates. It shut borders and scared off foreign investors. Today unemployment has reached 27 percent from 14 percent in 2016, over 90 million are in deep poverty. The economy in 2016 contracted by 1.6 and grew by almost 2 percent in 2019 according to IMF figures. It is the shame of a nation that after 50 years of discovering crude oil we import petrol from countries without oil. The refineries can’t refine enough petrol to keep the plants on and labour unions were among those who opposed its sale in 2007. Labour unions must get out of the funk that the solution is a large government. Nigeria has been unfortunate with governments that are terrible at governing and cannot be trusted with a business. The world has moved on and so should you.

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

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Tuesday 29 September 2020

BUSINESS DAY

Media business We have strong passion to leverage technology to take Outdoor industry to new height - Lanre Ashaolu, CEO FPL OOH Lanre Ashaolu is the MD/CEO of Four Pulley Limited, FPL, a foremost outdoor advertising agency in Nigeria. In this interview, he dwells on how the agency is leveraging technology to take outdoor advertising to new pedestal. Ashaolu, alumnus of London School of Economics and School of Media and Communications, Pan Atlantic University who has worked across different sectors of the economy also takes a look at the industry. Excerpts. Could you assess the Outof- Home advertising industry in Nigeria? he industry is a subset of marketing communications industry in general. It doesn’t exist in isolation. It offers a means of exposure of a brand’s information to their target audience. It exists alongside other platforms of exposure like electronic, print and digital. The OOH industry in Nigeria is an interesting industry in the sense that despite the encroachment of digital media replacing the role of traditional media, the outdoor is the only arm of traditional media that is going to witness the test of time and can co-exist with the digital media through the fusion of digital out of home advertising. It is an existing industry that is here to stay and will be here for a very long time. What would you say are the challenges of the OOH industry in Nigeria? The challenges are multifaceted. We look at it from the regulatory aspect, from the buying power of the advertisers, and from the level of options that advertisers are faced with in terms of how they want to expose their message to the public. It’s a keenly contested and highly competitive industry. Over 50% of advertising expendi-

ture is made in Lagos and every single operator would like to have their presence in Lagos because of the competitive and attractive nature. This could be a positive challenge because if competition is keen and fierce, innovation will stand out. On the regulatory part, there is the issue of firm regulation. Sometimes, it could be extremely high. In that case, there is need for a continuous dialogue between the regulators and operators so that there could be a common ground. We (operators and regulators) are using the same ecosystem and the purpose of our existence is to complement each other. How can these challenges be addressed? Continuous dialogue and innovation would go a long way to address the problems. I would always implore operators and practitioners to be on top of their game in terms of innovation of services and offering to the public because gone are the days when you establish an outdoor platform somewhere and expect brands to jump on it. It doesn’t work that way anymore. So, Innovation through the introduction of technology to actually be able to deliver accurate information to your clients. For example, a lot of people always ask, how do we

Lanre Ashaolu

measure the effectiveness of our campaign? How do we verify that this is the actual number of people that get to see our advertisement? For a very long time, there was no accurate or scientific way of addressing that . We worked with a lot of qualitative data and assumptions. However, in recent times, innovation is bringing technology to be able to give accurate insight on the number of people that actually see a message. That’s value and it is a way to improve on the quality of service in the industry.

Tell us about Four Pulley Limited Four Pulley Limited, known as FPL Media is a creative OOH agency where innovation is at the forefront of all we do. Our major promise is to deliver return on investment to our clients. We intend to deliver to develop innovative platforms in strategic locations that connect audiences to their brand and vice-versa so that whatever we are offering both the advertisers and audience is value for money. We are here to contribute to the growth and development of the industry.

We are here for a long time because the management of the company has a lot of experience on the client side of the industry before transitioning to the agency aspect. We have seen both sides of the divide and we know the questions that advertisers and brand managers want to ask and get answers to. We are not new in the industry. Now that we are in the OOH space, we want to be able to deliver the best value for our client. The buzz word in town is “New Normal”. How have you coped in this new normal that has been placed on us as a result of Covid-19? The new normal or the pandemic took everybody by surprise because I am sure when every company was going into 2020 with their plans from the last quarter of last year, nobody anticipated a situation or phenomenon like this pandemic. The first few months had to get everybody back to the drawing board. We developed a strategy to survive the situation going forward. Where there is over reliance on one medium of advertising, the need to diversify service offering has to come into place. For us, the way forward is for us to diversify our portfolio as much as possible so that if one aspect of the portfolio experiences a down time, others can stay afloat

and augment the business. What comparative advantages does an FPL have over other outdoor advertising agencies? We have a strong passion to leverage technology to improve return on investment for advertisers and audience in general. Other means of advertising like electronic, print to a large degree have a predictable and acceptable matrix for measuring the impact of advertising on such platform. The outdoor has just simply been relying on estimates and based on the physical traffic we see in the environment. We are investing a lot on technology, artificial intelligence to be able to deliver accurate feedback in terms of how effective advertising campaigns work on our platforms. I believe that is where the whole industry should look forward to go to so that the industry can be better respected. This will help the operators to deliver more premium services to their clients. Do you have any target as to where you want to be placed in the industry in the near distant future? We are not in a hurry to be placed on any particular pedestal. We just want to do what is right, what is professional. We just want to add value and I think the industry will reward us for our dedication and contribution.

Covid-19 pandemic: Access Bank’s latest TVC underscores the importance of tough choices Daniel Obi

hen a brand like Access Bank reminds and appreciates millions of people globally for their tough choices and sacrifices aimed at slowing the Covid-19 pandemic, such honour comes with an amazing feeling. This is what the latest campaign by Africa’s largest retail bank by customer base has done as it appreciates individuals and businesses not only in Nigeria but globally who have taken various voluntary tough decisions to flatten the curve of the pandemic which has had a devastating impact on lives and livelihood. The Television Commercial entitled, ‘Tough Choices’

is an advertising campaign created by SO&U for Access Bank that is an ode to everyday heroes across Nigeria – and the world – who are choosing not to be selfish by deliberately making selfless, inconvenient decisions needed for the common good. The campaign aims to celebrate these people while inspiring others to do the same. T h e c a m p a i g n s ay s, “Times like this call for tough choices and we see you making them every day, like choosing to stay indoors, choosing to give up time with friends you love for the common good. “Giving up things you love, your favourable hangouts, your favourable walk-outs, the stitches, the beaches, the Owambes. Choosing to put your life on the line to help www.businessday.ng

those who need a lifeline. “Choosing to change the way you do business even though you can’t afford to - because you really can’t afford not to. Choosing to stand back when all you want to do is draw closer, because sometimes, the hardest thing to do is the right thing to do. “To everyone, making tough choices for a brighter

Herbert Wigwe

tomorrow, we choose to say thank you”. The campaign is inspiring, emotive and friendly. The T V commercial which is appreciative to millions of people globally who have made sacrifices to slow the spread of Covid-19 is a master piece from the stable of one of Nigeria’s most creative and influential advertising agency, SO&U with its consistency in churning out exceptional award winning creative works. Tough choices reflects how all have made tough choices that are for the good of all . Tough Choices is simply a celebration of individuals and businesses that are making sacrifices beyond the needs of today for tomorrow. Globally, the outbreak of Covid-19 pandemic did not

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only present a health crisis but it came with business and economic disruptions that the world is grappling with. Presently, with over 30 million people infected and about 950,000 dead, the pandemic has altered relationship and business models. Nigeria’s case is not different. The country is currently counting over 58,000 cases with 1,102 deaths. Though the rising cases are flattening, according to officials but the protective measures are still in force which have not brought back normalcy in relationship and businesses. Covid 19 remains an active threat to existence. However, as the government continues to relax measures put in place to curtail the spread of the virus, following the flattening curves, the battle of sur@Businessdayng

vival from the impact of the pandemic will continue to rest heavily on individuals and businesses. They are expected to continue to make responsible choices such as social distancing, avoiding favorite hangouts, ‘owambes’, working from home and wearing masks to curtail the further spread of the virus. This is obviously for the common good. Often, these are choices requiring sacrifices – tough choices, for a brighter tomorrow. T h e To u g h C h o i c e s commercial campaign is opening hearts on personal responsibilities, changing perspectives of heroism and galvanizing support from individuals and corporates to assist in slowing down the spread of the virus. When this is done, a brighter tomorrow will be assured.

Tuesday 29 September 2020

BUSINESS DAY

ADVERTISING Lilvera Group CEO advocates 80% budget for digital marketing amid pandemic

he Chief Executive Officer/Managing Director of Lilvera Group, Buchi Johnson, has urged clients and corporate organisations to review their marketing plans and budgets as a result of the Covid-19 pandemic that has redefined the dynamics of the Nigerian marketing environment. The London Business School alumnus, who spoke to journalists in his Lekki office, said that there will be new opportunities post pandemic that brands can pivot to be a part of. Technology is making it very easy for us to get a lot of things done and presently, any business that wants to make it has to create strategies using technology to achieve success online. “Going forward, a serious minded organisation that wants to achieve great success for its brand and products must adopt an 80% to 20% budget planning in favour of online for its marketing

activities. This is as a result of the Covid-19 impact on bottomline as well as government regulations,” Johnson said. The Lilvera Group boss, who believes that brands must make a conscious effort to understand their consumers’ online needs, said, “Understanding your consumers’ online behaviors will help any brand align with their needs. To achieve this, brands must ensure their teams are social media savvy to meet consumers need.” “It is also important that businesses should have a

crisis management plan on hand, the pandemic is a huge crisis that a lot of businesses did not envisage and could not manage. This, caused a lot of businesses to shut down or lay off workers. It is important now more than ever to have a crisis management plan,” Johnson stated. As a marketing communications expert with over 12 years’ experience, Buchi said, “I have come to understand that change is permanent and to stay relevant, one most understand the trends and stay steps ahead of uncertainty.”

Corporate leaders urged to embrace tech for business transformation SEYI JOHN SALAU

usiness leaders and organisations in Nigeria has been urged to leverage technology to create and develop new business portfolios as the country continues its gradual recovery from the Covid-19 pandemic. It is important for organisations to leverage technology to create new businesses; transform the efficiency of existing one, create access to market, said Paul Gbededo, the group managing director of Floor Mills of Nigeria (FMN) Group.

Gbededo stated this at the 36th annual Omolayole Management Lecture (OML), hosted by the Chartered Institute of Personnel Management (CIPM). Gbededo opined that noble leadership is a must and leadership in the corporate world must be technologically driven. He stated that corporations must be continuously recharged with new diverse new employees. According to him, communication, data and information have become the backbone of emerging large corporation. “Technology is creating data

platform and facilitating quick, easy, secure and affordable access to store, retrieve and analyse data that is making the marketplace increasingly a virtual world,” he said. According to Gbededo, there is an urgent need to reset leadership mindset in Nigeria from the traditional to technological driven mindset and approaches. Leading at the time of technology is about being proactive, anticipating the next wave of technological invention that will affect our businesses, and ensuring that noble leadership is activated to protect all stakeholders.

Lagos business man wins TYLgames inaugural N1 m grand prize

Lagos based young entrepreneur, Emmanuel Umoga, has emerged the first N1million grand prize winner at the inaugural draw and cheque presentation ceremony of the lottery platform, TYLgames in Lagos. The T YLgames grand launch and cheque presentation that took place in Lagos recently saw another 29 gamers being presented with their winning cheques ranging from N10, 000 to N500, 000.

TYLgames, a gaming (Lottery) platform is designed to positively touch gamers’ lives one game at a time. The focus is on gamers rather than on the gaming platform; placing in their hands the power to transform their lives with each game they play hence the acronym “TYL”. TYL is an Instant Play, instant win, instant cash out game played on SMS, USSD, and Mobile Web platforms with the short code 33088. There are currently two games available to choose from, an

instant numbers game tagged “Shoki” and “Shaffle” which is a daily raffle game. With N100 game cost, a player can win up to N100,000 instantly and up to N1,000,000 in 24 hours by dialing or texting to 33088 or *33088# for USSD respectively. According to the Managing Director/Chief Executive Officer of Humber Group, owners of TYLgames, Andrew Humber-Osofisan, “TYLgames is an innovative luxury product that is designed to positively touch gamers’ lives in real time.”.

Niger Bridge light-up, a historic landmark - Wasiu Ola Abiola What interests marketing managers is keying into that connecting opportunity with the consumer who makes purchasing decisions. Covid-19 has brought this to the fore. In this interview, therefore Wasiu Ola Abiola, Head, Media, Digital, Brand PR & Sponsorship Mainstream Lager Brands speak on the recently-launched Niger Bridge Light-Up initiative by Life, a lager beer in the stables of the Nigerian Breweries Plc. Excerpts: How will you describe the project initiative by NB PLC Life Beer to light you the Niger Bridge? he Niger Bridge lightup is a historic landmark event not only for Nigerian Breweries Plc but also importantly for the people of the South East because of our long standing history. This project embodies the progressive spirit of the (Igbo) people; especially in the present trying times. It offers a beacon of hope and resilience and encouraging the people to live and enjoy life responsibly because as long as there is life, there is light at the end of the tunnel (Nduka). What informed this project initiative? Life Continental Lager Beer has always had a long standing heritage of progress. Over the years the brand has launched various initiatives that embody and inspire progress through its communication and notable initiatives that discover and support entrepreneurs and creative talents. On May 1st, 2020, Life Continental relaunched with an exciting new packaging design that reflects its progressive traits

and prominently displays its long standing iconic brand identifier; the Niger Bridge, a bridge we term the ‘Bridge of Progress’ because it represents the progressive journey of optimism and assurance of hope for a better life. As a climax to the relaunch activities, Life Continental delivers a first of its kind beautification of an iconic landmark in Nigeria, breathing new life and aura to the iconic bridge – by illuminating it in a symbolic gesture that enlivens this famous gateway entry into Eastern Nigeria and the lifeline of trade and commerce for the region How long did it take to achieve this? The project spanned a period of almost two years, and we are quite pleased with the dedication of our outdoor partner agency, New Crystal in helping to actualize this transformation of the iconic Niger Bridge with beautiful neon lights. The bridge has been displaying our brand (Life Lager Beer) message since 2012, we decided to do something more befitting with the bridge, with the magnificent lighting, that was commissioned on August 1st 2020. www.businessday.ng

Was this borne out of desire to take brand war to the door step of competitors or a deliberate CSR initiative aimed at identifying with the people? Life Continental Lager Beer was first brewed in Onitsha, Anambra State in 1981, and the brand has since then grown from just a regional beer brand to becoming the biggest beer brand in the country. In view of this, the brand has always

shared a very strong connection with the people of SouthEastern Nigeria, owing to its message of progress, a key narrative that the brand pioneers, and now with this project we are reigniting the progressive spirit of the Easterners, whilst strengthening the connection with our roots. Furthermore with this feat, we have gone beyond elevating the brands key identifier to an iconic landmark but have breathe

Wasiu Ola Abiola https://www.facebook.com/businessdayng

new life to this historic monument that serves as a testament to the progressive spirit of our people. What better way to identify and say thank you to the people that have made the brand No 1 brand in Nigeria. What do you intend to achieve with this? While more bridges will be built, more routes to connect the cities in the East, and even more means of transportation may arise. But none will be as iconic as our historic Niger Bridge - Our Bridge of Progress. For many this bridge symbolizes the start of something new and its long tradition of progress will withstand the times, so the project represents preserving this historical monument that has created an easier way for its citizens to move around, but more importantly for the Igbos, it is a symbol of trade, access to greener pastures and bears so many tales for many different people. As a project which directly falls within your purview, how do you feel with the completion of this project? I am highly elated and honoured to be part of the team that conceived this project and also led it to conclusion. @Businessdayng

With this achievement we have brought something different to our landscape and the brilliance of the lights serves as a message of our strength and adaptability especially in these times, because life is progressive. As you know, Media is anywhere consumers can be reached with our brand’s communication messages. I can modestly refer to this as the greatest media platform I have been involved in its creation in my over 20 years of advertising media management, both on the agency and client sides. What impact and brand equity would this project have on Life Beer? With this ground breaking transformation, we hope to offer a distinctive point of differentiation and build a stronger emotional bond with our core consumers. The lights on the Niger bridge carries the message - “Enjoy Life Responsibly” which is a call back to the message of self-preservation, a message that could not have been more relevant in times when not just our livelihood but our lives are being threatened. It is imperative that we treat life as the precious gift (NDU KA) while pushing forward in our resilient pursuits.

Tuesday 29 September 2020

BUSINESS DAY

Tuesday 29 September 2020

BUSINESS DAY

INTERVIEW

My vision for a national economy for Digital Nigeria – Pantami Minister of Communications and Digital Economy, DR ISA ALI PANTAMI, a former DG/CEO of National Information Technology Development Agency (NITDA), recently put in perspective his unique vision of Nigeria’s quest to attain a development paradigm based on digital economy in this exclusive interview with BusinessDay’s BASHIR IBRAHIM HASSAN, GM, Northern Operations.

hat is y o u r p e r sonal vision for the ministry you lead? Firstly, in summary, our vision is to create a digital economy for Nigeria. In order to implement a digital economy, which is the most respected economy globally. According to the World Economic Forum, the digital economy has, since 2016, generated over $11.5 trillion. Before the COVID-19 pandemic, it was forecast that by 2022, 60 percent of the world’s economic activities would be digitized. When I resumed office as Minister of Communications and Digital Economy on 21 August 2019, after reviewing the mandate of the ministry, I discovered the digital economy was missing. With the support of Nigerians, we have been able to upgrade the ministry to a 21st century ministry in all angles. We started the journey by seeking to re-designate the ministry. That being beyond our approval, we had to approach the president and convince him that a digital economy was necessary for our Nigeria. He approved it on 17 October 2019 and on 25th October it was adopted by FEC and we started the journey for a digital Nigeria. We put a policy in place that will guide us in the form of the National Digital Economy Policy and Strategy for a Digital Nigeria 2020-2030, which was launched by Mr. President. The policy rests on different pillars which include: environmental regulation, digital skills, solid infrastructure, service infrastructure, digital services, soft infrastructure, and indigenous content development. With every pillar, we come up with a roadmap to guide implementation by relevant ministries in

compliance with the national policy for buy-in by ministries and other levels of government. As part of the implementation and achieving digital economy, we came up with a digital broadband plan. At the time I was appointed as Minister, the penetration was only 33 percent between 2000 and 2019, a nine-year period. But since assuming office, we have been able to achieve around 9 percent in 11 months. The average penetration annually is 1.7 percent per year. If the report for August is out, most probably we would have achieved a minimum of 10 percent in a year, instead of the minimum 1.7 percent annual increase. When you achieve 10 percent broadband penetration, it will automatically increase your GDP by a minimum of 1.8 percent and maximum of 6.8 percent. That shows that, as a result of the pandemic, our economy has declined by only -6, compared with that of the US of -19. And, if you look at the sectors, you will see that the financial institutions and telecoms did well. Financial institutions 28 percent increase and telecoms 18 percent, but what we should understand is that the financial sector is part of the digital economy, because digital services, whether ATM, e-commerce, mobile banking, are part of the digital economy. What are the challenges of communication and digital economy in Nigeria? The major challenge is lack of synergy between institutions both public and private, at federal, state and local levels. Take the issue of taxation. Authorities are imposing taxes without consulting us to know how the sector is, without knowing the global

though it is not our mandate, we provide the support that is needed to achieve that. When I came on board, in less than one month in office, we discovered the number of registered and unregistered Sim cards in Nigeria. It was 9.4 million. Before then, it was impossible to know the figure. But by 25 September 2019, in less than 2 months in office, I ensured that all the unregistered sims were either rectified or completely activated. We de-activated 2.4 million Sims in Nigeria. Many operators were complaining that it would bring down their revenues, but I said, as a government, our priority is to secure lives and properties. We only talk of revenues where there is peace, but where there is no peace, you can’t talk of revenues. We went ahead and blocked them. We notified the (security?) institutions that whenever they need the bio-data relating to the assignee of any Sim, they should fulfil the requirements and that will be released to them. We have been doing that and, today, no institution has proven us wrong by the information we provide. What country is your role model that you think Nige-

position of the digital economy sector, without knowing the regulatory instruments of the sector, locally and internationally. Globally, promoting the economy sometimes requires that you relax taxes or even reduce taxes for people to patronize specific services, because when they patronize the services, you will be able to block leakages. But, without consulting us, you see authorities collecting taxes -- even on social media. We are concerned that taxes are con-

sistent with global standards, because we are part of the International Communication Union, which is the umbrella under the United Nations. Shouldn’t you do a summit with other government agencies for a clear understanding to aid the achievement of the digital economy and to promote the synergy you mentioned? We are promoting cooperation among agencies. We have achieved synergy

among parastatals and all the activities of parastatals under the ministry are being done jointly to promote synergy. In our virtual commissioning of projects, you will see that all the parastatals are represented. How much has this ministry done to help our security drive in the country? First, let me say this. That is the mandate of the ministries of defense, police affairs and the interior. However, knowing that it is the constitutional responsibility of every government in Nigeria to protect lives and property, even

‘

It is just a matter of seeing something somewhere and copying it. I don’t encourage that. But what I usually promote is to think globally, but when it is time to implement, you need to look at your peculiarities, your culture, your policies, laws and traditions ria should learn from? I don’t usually promote countries as role models. It was the same approach that has made us spend a lot of money on CCTV cameras and the power sector without any result. It is just a

matter of seeing something somewhere and copying it. I don’t encourage that. But what I usually promote is to think globally, but when it is time to implement, you need to look at your peculiarities, your culture, your policies, laws and traditions. Many policies that are being implemented in other nations are usually dead before arrival in Nigeria. It is a matter of knowing your citizens well and coming up with policies and initiatives that are relevant to the country and its people. Even if they resist, create awareness and convince them that it is good for the country, not for personal interests but in national interest. Switzerland and Sweden are doing well. So are India, Rwanda and China, but we need to look at our peculiar situation and see what we can do to achieve our objectives and targets. What legacy would you want to leave behind? As the pioneer minister of digital economy, my first priority is to leave behind

a digital Nigeria. During my time we started virtual Federal economic council meetings, with connections to 15 so points. More than a hundred memos have been approved, some of them in education, some in health, agriculture, etc., through the digital platforms we provided. Without these platforms, many ministries will be shut

down without the approval of the president. Also, for the first time, we coordinated a virtual Council of State meeting chaired by the President. All former presidents and heads of states, including General Yakubu Gowon, Ibrahim Babangida and Abdulsalami Abubakar, attended the meeting from their different locations. And I sent my technical team to coordinate the meeting, and many approvals were given that would have been impossible without the meeting. Our president has been attending inter natio nal meetings where decisions are being taken and we provide platforms. We also provide the digital platforms for the Federal Ministry of Health and the National Centre for Disease Control (NCDC) to meet virtually

and conduct their activities So why I am happy is that we are able to keep the country running by providing the platforms for virtual meetings. That is the essence of Digital Nigeria. So, this is only one example out of many others. So I am glad and I want to leave behind a digital Nigeria which is part of the digital economy, broadband penetration and many more. W hat are you d oin g about emergency call centres? So far 19 have been activated out 37 we plan to achieve in all states as well as FCT. Before we leave office, we want to believe that all will be achieved as soon as the governors key in, because it is critical that the state governments key in for it to succeed.

Tuesday 29 September 2020

BUSINESS DAY

EDUCATION Weekly insight on current and future trends in education

Primary/Secondary

Standard, quality education is our priority, says LASUBEB boss, Alawiye-King MARK MAYAH

he Executive chairman, Lagos state universal Basic Education Board [LASUBEB], Wahab Alawiye-King, has assured that the board will continue to uplift the standard of education in the state. Alawiye-King gave the assurance at an exclusive interview with BusinessDay in his Maryland corporate headquarters in Lagos. He stated that the standard of education in all the primary and junior secondary schools across the state was not negotiable no matter the circumstances, stressing that the board through the state government and UBEC would continue to uplift it in earnest. He commended the state Governor, Babajide SanwoOlu for always paying the Universal Basic Education Commissions counterpart funding timely.

Wahab Alawiye-King, executive chairman, LASUBEB

On the board’s readiness for school resumption, Alawiye-King assured parents and pupils that LASUBEB has prepared the teachers adequately to adapt to the

new reality and adopt relevant hygiene protocols for reopening, describing the COVID-19 era as ‘’a new normal that we all must learn to live with, accept and be

willing to overcome. ‘’The state government having considered submissions of stakeholders in the education sector, opted for the phase approach method, rather than every pupil to come school daily.’’ According to him, ‘’we do it in an alternative manner so we can be able to maintain the social, physical aspect of the safety protocol. ‘’We are equally looking at adapting that strategy to ensure that our pupils are getting the education in a safe and secured environment,’’ Alawiye-King said. The board, he reiterated was fully prepared for the resumption of academic activities having provided all necessary facilities and infrastructures needed to maintain and comply with COVID-19 safety protocols. ‘’LASUBEB is ready to enforce and ensure that both public and private schools maintain physical distancing as well as other safety guidelines.’’

Higher

Human Capital

Secondary school leavers get work-study boost as firm offers a 65 percent scholarship KELECHI EWUZIE

etermined to secure a knowledge-based future that is diverse for young Secondary School Leavers, Sterling Bank has launched the “Grow with Sterling Initiative”. The initiative which finds its root in one of the Financial Institution key sector education seeks to create valuable opportunities for different categories of citizens while contributing to enriching lives and impacting society. Temi Dalley, chief human resources officer, Sterling Bank PLC said the programme is part of the Bank’s new-to-theworld opportunities for young Nigerians to get access to quality and affordable education while gaining cognate work experience. Dalley in a statement made available to BusinessDay noted that the financial institution will pay not less than sixty-five percent tuition fee of the learners admitted into the programme, marking a significant investment in the education of young Nigerians.

According to Dalley, ‘Grow with Sterling’ initiative is a co-branded social impact program that will enable Nigerian secondary school leavers to further their education under a unique partnership arrangement with the Bank as the financier and Nexford University as the learning provider.” Dalley further opines that understanding that an investment in knowledge pays the best interests; the bank recently signed an agreement with Washington DCbased Nexford University by sponsoring secondary school leavers in Nigeria to earn international undergraduate degrees under a maximum duration of three years. To also gain hands-on expertise, they will be concurrently engaged by Sterling Bank to serve in specific capacities in a work-study arrangement. Listing other benefits, Dalley added that learners will get complimentary access to 20 percent tuition discount, free enrolment on online learning platforms amongst other things.

COVID-19: LASG launches N5bn support capital for low-cost private schools • Sanwo-Olu: ‘Intervention to help mitigate effect Of Lockdown’ •LSETF, First Bank floats Education Loan Programme MARK MAYAH

agos State Government in partnership with First Bank of Nigeria Ltd has launched N5 billion Post-Coronavirus (COVID-19) Recovery Support capital for education sector to support low-cost private schools across the State in mitigating the negative impact of the pandemic. The intervention fund, which targets over 2,000 private schools, was formally launched by Governor Babajide Sanwo-Olu on Friday at a ceremony held at the Banquet Hall in the State House, Alausa. Lagos State Employment Trust Fund (LSETF) collaborated with First Bank of Nigeria Limited to facilitate the matching fund, which will be given as loan to schools and vocational education centres across the State. Sanwo-Olu said the intervention was part of the State Government’s sustainable solutions to limit the socio-economic impact of the COVID-19 pandemic on both residents and businesses. As the State gradually unlocks socio-economic activi-

ties, following the impact of the pandemic, the Governor said the loan programme would help the targeted beneficiaries accelerate recovery and give them opportunity of painless return to regular life. He said: “It is no longer debatable that the education is one of the sectors that are severely impacted by the COVID-19 pandemic, with schools and vocational learning-centres shut since March when we took the tough decisions meant to disrupt the spread of the virus. Given the incidence of the closure of schools in response to the pandemic, it would not be out of context to note that the challenges presently faced by these schools would increase significantly. “With access to low-cost funding for privately owned schools and vocational training centres in the state, we are confident that this programme will help accelerate sustainable and painless return to world-class learning and skills acquisition of our young population. As a responsible Government, we are obligated to provide intervention that would enable learners in these schools’ study in line with the new normal.” www.businessday.ng

Sanwo-Olu said the N5 billion Education Loan Programme was a precursor to many more human development sector-specific support programmes that would be unveiled by the LSETF on behalf of the State Government next month. The Governor explained that the intervention was necessary, given the importance of education to building human capital. He said his administration took education as critical building 21st century economy and realising objectives set out

in the T.H.E.M.E.S. agenda. The beneficiaries, SanwoOlu said, will have access to single-digit loan facilities to fund the provision of the amenities and services needed to aid learning. He said: “It is thus heartwarming to have First Bank of Nigeria electing to be our exemplary partner for this intervention. With their support, players in the education sector would be getting the financial support they need to boost learning at a single-digit interest rate.

Sanwo-Olu, Lagos state Governor https://www.facebook.com/businessdayng

“I also commend the Board of LSETF and the management for this significant accomplishment. They have helped the Lagos State Government build an institution that has engendered public trust and elevated the hope of small businesses and young people, irrespective of challenges faced.” Chairperson, LSETF Board of Trustees, Bola Adesola, represented by Tatiana MousaliNouri, said schools that have a minimum of 100 students and have been in operation for, at least, a year are the ones qualified for the loan facility. She said: “We are confident that this intervention fund, which is complemented by our free professional and institutional support structures, will ensure that education ecosystem in Lagos witness an improvement in the overall learning outcomes for the children, while positively impacting on the local economy through wealth and job creation.” First Bank’s Chief Executive Officer, Adesola Adeduntan, said the Bank went into the partnership, having recognised the role played by education towards the growth of the economy. @Businessdayng

He praised the State Government’s efforts towards suppressing the burden caused by the COVID-19 pandemic on the education, saying Lagos Government had scored another first. Adeduntan said: “With the single-digit funding targeted at about 2,000 low-cost private schools in Lagos, we are delighted to demonstrate our commitment to the development of education in the State, thereby contributing our quota to realise the mandate of the State Government and LSETF on economic growth, opportunities for employment and bridging societal gaps in education.” The loan scheme will be provided to two categories of applicants, which are MicroEnterprise (ME) and Small and Medium Enterprise (SME). Those in ME category will receive a sum of not more than N500,000, while those in SME will get N5,000,000. To apply for the loan facility, applicants are expected to submit their applications via the LSETF portal for screening. Details of the successful applicants will be passed on to First Bank for appraisal and disbursement.

Tuesday 29 September 2020

BUSINESS DAY

EDUCATION Adeleke University, Federal poly Nekede, ICAN sign agreement to deepen learning the Institutions would be granted 10 subject exemptions instead of seven subjects under the normal ICAN accreditation scheme. This agreement brings the number of Institutions under the scheme to 23. All the 23 institutions are obligated to incorporate the requirements of the new syllabus in their curriculum. Meanwhile the institute has launched a new syllabus for its professional Examination. The new syllabus which takes effect from March 2021 was developed in line with the “Institute’s resolve to continue to produce future-ready Chartered Accountants with skills and competences desired by the market. The ICAN President Dame Onome Joy Adewuyi FCA who unveiled the new syl-

KELECHI EWUZIE

etermined to boost the standard of learning and dissemination of accounting knowledge in Nigeria, Adeleke University Ede, Osun State, Federal Polytechnic Nekede, Owerri, Imo State and The Institute of Chartered Accountants of Nigeria (ICAN) has signed the Mutual Cooperation Agreement (MCATI) The agreement meant that accounting students in the two institutions, and the 21 before them, would study using the integrated accounting curriculum of ICAN, National Universities Commission (NUC) and National Board for Technical Education (NBTE). Accounting graduates from

Adamu Adamu, education minister

Ex-NECO boss, Gana debunks N368.8m allegations MARK MAYAH

ormer Acting Registrar, National Examinations Council, NECO, Abubakar Gana, has debunked allegation levelled against him by an online media platform that he embezzled the sum of N368.875 million while he held sway in the examination’s body. He, however, said the alleged sum said to have been generated during the June/ July 2018 registration of SSCE, was discovered missing before his tenure. Gana, in a statement he personally authored and released to newsmen, Sunday, insisted that contrary to the media report, his hands were clean. He said: “For the avoidance of doubt, I was appointed as Acting Registrar of NECO on May 10, 2018 while the purported incident occurred on December 18, 2017, at least, five months before my appointment. “It must, however, be put on record that the infractions were uncovered by the Council in 2017 under the watchful eyes of Former Registrar, Prof Charles Uwakwe, but nothing was done to bring the perpetrators to book.” The statement read in full: “My attention has been drawn to a malicious report of September 25, 2020, in which the online platform alleged that I siphoned N368, 875 million generated during the June/ July 2018 registration of SSCE, while I was Acting Registrar of the National Examinations Council (NECO).

“Ordinarily, I would not have bothered to dignify the half-truths and fabrications contained in the publication with a response, but for the purpose of setting the records straight. “For the avoidance of doubt, I was appointed as Acting Registrar of NECO on May 10, 2018 while the purported incident occurred on December 18, 2017, at least, five months before my appointment. “It must, however, be put on record that the infractions were uncovered by the Council in 2017 under the watchful eyes of Former Registrar, Prof Charles Uwakwe, but nothing was done to bring the perpetrators to book. “When I took over the affairs of the Council in 2018, the misappropriation was officially reported to me, a

development that led to the setting up of both Management and Board Committees for investigation. “Upon our investigations, two officials of the Council were indicted and thereby recommended for dismissal. Not satisfied with the outcome of the investigation, the officials petitioned the Senate Committee on Ethics and Privileges in the Eight Assembly, which also found them culpable of misappropriation but however pleaded for leniency, a request that was rejected by the Board. “How could I have stolen money before my appointment as Registrar? My administration fought corruption to a standstill by ensuring that monies generated by the council went straight to the Treasury Single Account of the

Chukwuemeka Nwajiuba, minister of state for education www.businessday.ng

Federal Government. “Under my administration as Acting Registrar of NECO, the Council carried out major reforms and recorded significant strides. Between 2010 and 2017, NECO generated N900 million but in two years, we returned over N2 billion, generated as proceeds from the conduct of examination, to the federation account with outstanding states indebtedness to the Council for 2018 and 2019 growing up to N1,045,047,140.00 billion. “The council also abolished the use of scratch cards to ensure that monies generated go directly to the treasury single account. It also worked to ensure the reduction of the examination registration fee from N11, 350 to 9,850. My administration generated N600 million per annum from checking of result, from an initial N30 million. For the first time, the Council audited itself and dismissed over 100 staff with fake certificates. “The only sin I committed was to carry out a presidential directive by dismissing the erring staff, who have now made me a target of their campaign of calumny. “Also, for the first time, the council purchased 20 Toyota Hilux vehicles from its Internally Generated Revenue (IGR) to aid its logistic challenges. It is noteworthy that in my administration, NECO also carried out extensive reforms to improve the integrity of its examination by purchasing 8,000 biometric verification machines, in an attempt to eliminate the issue of identity theft.

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labus said the revised syllabus captured subjects on emerging technologies that are disrupting the accounting profession, such as Block Chain Technology, Artificial Intelligence, Machine Learning and Internet of Things”, among others. She explained further that new trends in the Nigerian environment such as the Finance Act 2019 which introduced new developments in the country’s tax system and the new Companies and Allied Matters Act (CAMA 2020) also presented added impetus for the review. According to her, “a Chartered Accountant worth its salt is not just an expert in the technical aspect of the profession but should be furnished with soft skills including effective communication, integrity, accuracy and good

professional judgment”. She added that the current syllabus was reviewed in 2018 but the rapidly changing environment necessitated a revisit of the status quo from the five-year policy of the syllabus review to a more regular one that proactively responds to the demands of the market. The review also necessitated the restructuring the various levels of the Institute’s examinations to reflect the new changes in the syllabus and equally expanded the contents of the various subjects against the backdrop of the new normal. While retaining the fifteen (15) subjects, there are now four (4) subjects at the Foundation level as against the former five (5), six (6) at Skills as against five (5) and retained the five (5) subjects at the Professional level.

Rivers varsity suspends lecturer for impregnating student MARK MAYAH

he Ignatius Ajuru University of Education (IAUE) has suspended a lecturer, Rowland Igwe (Dr), for allegedly impregnating a student of the institution. It was learnt that the university indicted the lecturer for allegedly intimidating and assaulting the lady before impregnating her.

ing that the matter had been referred to the institution’s Senate Committee on Staff Disciplinary Matters for further investigation. The statement said: “The management of the Ignatius Ajuru University of Education has placed Dr. Rowland Uchechukwu Igwe of the Department of Sociology on an indefinite suspension on an allegation of serial intimidation, sexual harassment and undue canal knowledge

Nyesom Wike, Rivers state governor

Vice Chancellor of the University, Ozo-Mekuri Ndimele (Prof ), confirmed the development in his Twitter handle. The vice-chancellor said the undergraduate suffered health complications following the pregnancy add@Businessdayng

of a female undergraduate which resulted in her impregnation and other complications. “The matter has been referred to the Council-Senate Committee on staff disciplinary matters for further investigation.”

Tuesday 29 September 2020

BUSINESS DAY

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Tuesday 29 September 2020

BUSINESS DAY

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Tuesday 29 September 2020

BUSINESS DAY

property&lifestyle

‘We have evolved a unique model of operation to serve Nigerians better’

A good number of private estate developers in Nigeria are contributing significantly to bridging the country’s housing demand-supply gap. Propertymart Real Estate Investment Limited is one of them. OLUWASEGUN DAMIRO, the company’s General Manager, Sales and Marketing, in this interview, speaks on the company’s strides in providing affordable housing for Nigerians. He also proffers solutions to reducing the housing deficit and how regulators and operators can work better together for the benefit of home-seeking Nigerians. He speaks with CHUKA UROKO. Excerpts:

ropertymart is a frontline real estate developer in Nigeria where there is a significant housing deficit, especially in the urban areas. How well has the company helped in reducing this deficit? Propertymart consists of a team of dedicated professionals who are committed to advancing lives by delivering best-in-class real estate investment solutions that exceed the expectations of its stakeholders. As an organisation established to reduce the housing deficit in Nigeria, we have delivered exquisite, yet affordable estates within the metropolis of Lagos, Abuja and Ogun states. We have delivered 1,529 units of apartments, 43 units of Villa, and 1,508 plots of land (dry and wet) in Citiview Estate in Arepo, Cranbel Court in Makun, and Cranbel Edge in Lekki-Ajah. We have also delivered land at The Fairmont, Lekki-Ajah; Fairmont Hilltop, Alagbado; Mitchel Mews, Magodo G.R.A; Bel Terraces, Life-Camp in Abuja; Mitcheville Estate, Lokogoma in Abuja; Palms Garden in Mowe; Mainland Garden, Mowe; Edensville Estate, Simawa, and Citi Park 1& 2 in Mowe. At Fairmont Hilltop Estate in Alagbado recently, you had a successful plot allocation and subscribers were pleased with that. Tell us about other on-going projects that land buyers can benefit from. We are a reputable company that offers valuable and well-planned estates with global designs. We preempt consumers’ needs for innovation and evolution and, therefore, we don’t relent in ensuring timely delivery of quality and affordable housing. Apart from Fairmont Hilltop Estate in Alagbado where we recently concluded plots allocation, construction and infrastructure developments are going on in Citiview Estate, Arepo and Cranbel Edge, Ajah. Sand filling of the major road and fixing of paving stones are also in progress at Fairmont Estate, Ajah (Scheme 1). There are several regulators in Nigeria’s housing sector. How well do you take to regulatory oversight? Propertymart is synonymous with integrity, knowledge, and due process. Its reputation speaks volumes, having delivered major housing estate projects over the years. We ensure that we build the highest quality homes in compliance with regulatory provisions and, to further ensure excellence, we partner top industry leaders for all our projects. Some of our partners are Play in

Oluwasegun Damiro,

Architecture, PW Civil Engineers and Cubic Contractors. These organisations ensure strict adherence to quality assurance in compliance to ISO 9001. They follow construction standards and procedures, get certificate and technical approvals prior, within and after completion of each of the projects. They also ensure that all estates are designed and constructed with ample allocation for green areas. We work with companies and suppliers that have sustainable environmental policy, meet or exceed all the environmental legislations relating to company, industry, local and international laws. Lagos State recently inaugurated the Lagos State Real Estate Regulatory Authority (LASRERA) to track fraud and scams common in the housing sector. Besides this, how else do you think the industry could be sanitised? Unreliable agents, fake makeover to the house, false listing, foreclosure relief, and incorrect documentation, are a few of the many fraudulent acts done by unscrupulous individuals and corporate organisations before the establishment of LASRERA. Integrity is one of the core values www.businessday.ng

of Propertymart, and it has enhanced our reputation as a formidable real estate investment company upholding the best standard. We are in total support of the Lagos State government’s move to find a lasting solution to incidences of fraudulent and unprofessional practices observed in the real estate sector. Propertymart believes that the establishment of LASRERA would promote transparency and best practice in housing business. We suggest that a monitoring team be established to identify and capture all agents and practitioners. The unregistered agents should be advised to register with the right agencies. If there’s no compliance within a stipulated period, sanctions should be enforced on such agent or corporate organisation. How easy has it been for Propertymart to sustain its commitment to providing quality, affordable homes in the face of disruptions caused by the COVID-19 pandemic? The COVID-19 pandemic has changed the course of our operation. Activities have been adjusted, and continue to be updated to comply with guidance provided by the government to prioritise the safety of staff, customers and others

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involved in construction and other related activities. This includes targeted initiatives to support the most vulnerable members of the organisation. Propertymart is still determined to maintain its standard by delivering properties on schedule. The impact of Covid-19 has affirmed the company’s strategy to create even better value, leading increased care for colleagues, communities and suppliers. The company has been able to evolve a new model of operation, including extended working hours, employment of additional workers to work within a rotational schedule, and partnership with reliable suppliers to ensure a prompt and adequate supply of materials. Adequate training for young realtors is an issue in the property industry at the moment. What is your company doing to mentor younger practitioners? Propertymart is aware that training presents a prime opportunity to expand the knowledge base of all employees, improve employee performance, satisfaction and morale. It is crucial to address weaknesses, ensure consistency, increase productivity and adherence to quality standards, increase innovation, reduce employee turnover, and enhance company reputation and profile. Because of these facts, we have continued to provide extensive training for all our employees. We recently provided extensive training on project management and construction finance for staff. Some staff have also been enrolled at the Lagos Business School for Business Management. How do your company’s distinctive architectural designs help to strengthen its competitive advantage? Our company was established with a taste for quality and value. The organisation does not only distinguish itself with adherence to integrity and prompt delivery of properties, but has also proven its worth over the years with astonishing architectural designs which ‘wow’ prospects and clients. Our properties are not only durable, but also utilitarian and elegant. The properties are also modern and timeless structures. What sustainable growth strategies have you deployed to ensure seamless value delivery to customers? We build on these sustainable long-term growth strategies, knowing our market niche and competitors. We believe in driving sustainable revenue, building a scalable business, and focusing on profit@Businessdayng

ability. We are not limited to Offplan and Buy-back investment plan. We are extending our strategies on real estate market development and innovation, market penetration and expansion (for Diaspora clients), customer retention, product development (new estates and location), and diversification. What are your plans towards ensuring you remain at the forefront of real estate sector in Nigeria? At the core of our commitment is delivering on schedule quality properties. Maintaining this will continue to put us at the forefront of real estate investment in Nigeria. Besides, the company has a wellconceived plan for the next generation of property development. Propertymart will stay focused on its strengths, take calculated risks, inspire a positive corporate culture and encourage a healthy work environment. We will also ensure effective use of technology, develop social awareness, and continue to provide excellent customer service. Safety and quality often pose challenges for stakeholders in the real estate sector. What are you doing in this area? We are working with a team of professionals in each of our estates. We are customer-conscious and ensure that each of our estates is in a non-flooded or water-logged environment. We ensure property designs meet all standards and work with reliable suppliers for quality materials. Our quality control team and other government regulatory agencies ensure, during construction, that quality is not compromised at any stage. You have been in business in the last 12 years. How much opportunities have created along the value chain that have aided economic growth? Within this period, we have delivered over 5,600 housing units and serviced plots to families at home and in the Diaspora. This development cuts across all value chain, from the holding (developer and Real Estate Investment Trust) to housing finance, construction (architecture and engineering firms) to real estate agents/brokers, and then to property management companies. Each stage of property development to sales aids economic growth. I mean estate development to bridge housing deficit, taxes and duties remittance to various government agencies, employment of labour for construction and sales. There’s also corporate social responsibility to communities where the estates are located.

Tuesday 29 September 2020

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

PETROCHEMICALS

POWER

How poor port infrastructure raises petrol landing cost ISAAC ANYAOGU

key elements of the landing cost of PMS when the PPPRA still published pricing template was Lightering Costs which accounts for about N2.75 on every litre. If Nigeria’s ports were functional, consumers could be spared this needless expense. Lightering is the costs associated with the transfer of petrol from one vessel (usually the mother vessel) to a smaller vessel (usually called the daughter vessel). This is typically done in the open sea with the vessels positioned alongside each other, according to Ogechi Nkwoji, head, economic Intelligence research & Regulation, MOMAN in an article for the organisation’s newsletter. The recourse to ship to ship transfer is due to the deep draft requirements (above 12m) of most of the mother vessels bringing the refined products from Europe.

But in Nigeria few jetties can successfully berth such vessel capacity as most jetties and channels are just about 7.0m. For example, at the Escravos chanel, the maximum draft at the channel during high tide is 6.2 meters, so large vessels wait for high tides to navigate across the channel. Some heavily-laden ves-

sels have run aground requiring heavy machinery to get them out. Until they are towed, they clog the channel, obstructing vessels that follow draft rules on vessel capacity, and reducing how much revenue the Port Authority can earn as charges. Ships conveying refined product from Belgium and Netherlands to Lagos cannot

afford to deal with this challenge. So the only alternative is to transfer the refined product into smaller boats to allow for easy passage across the channels to the jetties. There are 4 clusters of jetties and storage tanks in the Nigerian coastal areas: Lagos, Warri, Calabar and Port Harcourt. In the petroleum industry, draft determines

the minimum depth of water a ship (or boat) can safely navigate. According to Nwoji, Apapa, TinCan and Ijegun areas have some jetties with drafts deep enough to take between 20KT and 100KT vessels. The average draft in Warri can accommodate a 10-15KT vessel, Port Harcourt’s draft can accommodate a vessel of between 15-20KT and the draft in the Calabar coastal region can only take on a vessel of 5-15KT. The Apapa jetty in the Lagos area, infrastructure deficit is the major reason why lightering of vessels is done, noted Nwoji. “With a draft of only 7.5m, the implication is that the maximum of a 30KT vessel, depending on the vessel specification, can be berthed at the jetty. So, for every large vessel, for example, a 47KT vessel that plans to berth at the Apapa jetty, the product must be lightered into a daughter vessel with the marketers incurring costs of approximately $245,000 per

lightering operation,” Nwoji noted. Sometimes this might involve one or two lightering operations depending on the size of the daughter vessel and thus increasing the cost, a cost that is heavily dependent on the prevailing exchange rate. Even though the process is subject to international standards and regulations, the need for product lightering, caused by poor, underdeveloped infrastructure presents several risks such as attack by sea robbers and environmental impacts such as potential oil spills and the need for added security, the report noted. So though transshipment removes the high port berthing charges and also cuts short the time for berthing and mooring for a larger vessel, deal with the challenge of inadequate storage capacity restriction of a receiving terminal or even the financial capacity of the buyer, te process is expensive and prone to risk.

Oil majors could divest $100bn worth of assets, but are indigenous companies ready? Innoson Motors prepares to roll out bi-fuel engine vehicles DIPO OLADEHINDE

mid massive divestment into cleaner sources of energy, some of the world’s largest oil and gas firms are considering assets sell or swap of more than $100billion, a development which may be a sort of mixed blessings for Africa’s biggest oil-producing country. Analysis by Rystad Energy, a Norwegian oil sector research firm, indicates that International Oil Companies (IOCs) such as British Petroleum, Shell, ExxonMobil, Total, Eni, ConocoPhillips, Chevron and Equinor could sell or swap out resources of up to 68billion barrels of oil equivalent, assets worth an estimated $111bn, in a bid to streamline their portfolios, significantly improve cash flow, cost efficiency and competitiveness. The IOCs account for more than 70 percent of Nigeria’s daily crude production. Rystad said its key criteria in determining whether a major+ will stay in a country are the cash flow over the next five years, potential growth in its portfolio, and presence in key exploration and production growth countries towards 2030. Based on this, oil majors may “seek to exit 203 positions” in 60 countries, reduc-

ing their overall number of country positions from 293 down to 90. Rystad senior vice president, Tore Guldbrandsoy, said “Companies will look to expand in the prioritised countries through exploration, acquisitions or asset swaps with other Major+ players.” “However, to stay in a country that our criteria exclude, a company may instead seek to grow its local business more aggressively to make sure the portfolio will have a positive and more significant impact on overall performance,” Guldbrandsoy said in a statement. Naturally, a wave of divestment of oil and gas assets previously held by these IOCs will no doubt ignite interest from different stakeholders in the Nigerian oil and gas industry either in the renewable energy sector or indigenous oil producers. Ademola Henry Team leader at the Facility for Oil Sector Transformation (FOSTER) said Nigeria needs to put incentives in place to attract investments in the renewable energy sector or value chains of the oil and gas sector beyond oil exploration. Other experts say the present development presents huge opportunities for Nigeria to attract investors

into its renewable energy space which is still mostly untapped. Buoyed by the high oil price and the need to boost local content in the nation’s oil industry many banks doled out loans to indigenous players for the acquisition of assets being divested by IOCs such as Royal Dutch Shell, Chevron and Total. Between 2010 and 2018 some indigenous companies including Starcrest Energy, Aiteo, Oando, Seplat, Eroton, First E&P, Neconde, Midwestern, Notore Lekoil, PanOcean, Newcross and Shoreline threw in billion dollars cheques in their scramble for assets divested by major multinational oil firms which have recorded mixed performance. Seplat Petroleum Development Company PLC successful bought assets such as OML 4, 38 and 41 which were producing 15,000 barrels per day (bpd) but today are now producing 80,000 bpd. Same cannot be said of Oando Energy Resources, a subsidiary of Oando Plc, who incurred a $2.5 billion debt after the 2014 acquisition of oil and gas assets from U.S. giant ConocoPhillips. While Seven Energy, a Nigerian company founded in 2004, ran into troubled waters after several defaults on its debt servicing obligations.

STEPHEN ONYEKWELU

igeria’s only indigenous car maker says it is ready to deliver bi-fuel engine cars into the Nigerian market once the Federal Government rolls out the autogas programme by October. Bi-fuel natural gas vehicles run on both petrol or diesel and various forms of natural gas such as the liquefied petroleum gas (LPG), compressed natural gas (CNG) and liquefied petroleum gas (LNG). The use of gas to power engines is over 75 years old. Several countries today have well-developed autogas markets. Global consumption of Autogas has been rising rapidly in recent years, reaching 26.4 million tonnes in 2015 – an increase of 10 Mt, or 61 percent, over the 2003 level. There are now over 26 million autogas vehicles in use around the world. Yet Autogas use is still concentrated in a small number of countries: just five countries – Korea, Turkey, Russia, Thailand and Poland – together ac-

counted for half of global Autogas consumption in 2015. “Autogas is not new. It has been operational in Europe and America for many years and we making effort to be a part of it. We are talking to our engine manufacturers to produce engines that would have bi-fuel capability,” Cornel Osigwe, head, Corporate Communications, Innoson Motors said. However, Nigeria lacks the infrastructure days to the roll-out date for autogas. In the whole of Port Harcourt, no refuelling station can dispense gas for automobiles and prime movers, according to Dickson Iwarimie, a local manufacturer of LPG tanks and pressure vessels. “FG should be aggressive in rolling out the infrastructure; local manufacturers like us are here to support the project,” Iwarimie said. “Our products meet the Americal Society of Chemical Engineers code, same quality as you would get anywhere in the world.” Part of the measures to ensure safety at the cen-

tres where petrol or diesel engines are converted to bi-fuel engines are licence from the Department of Petroleum Res ources and a certificate from the Standards Organisation of Nigeria. Autogas comes with environmental, public health and cost reduction benefits. It will reduce pollution, carcinogenic impact of carbon emissions; make engines run more efficiently and cleaner. It has the potential of reducing routine maintenance to once in six months. The cost savings are significant too. “For a hundred kilometres you would be saving N46, 000; for 50 kilometres you would be saving N23, 000,” said Justice Derefaka, technical adviser on Gas Business and Policy Implementation to the minister of state for Petroleum Resources. One million conversion kits are already available according to Derefaka. There would be a valueadded tax exemption for everything downstream for the domestic gas utilisation.

EDITOR: Isaac Anyaogu / Analysts Stephen Onyekwelu, Dipo Oladehinde / Feedback: 07037817378, / email: isaac.anyaogu@businessday.ng,

Tuesday 29 September 2020

BUSINESS DAY

BDTECH

In association with

E-mail: jumoke.akiyode@businessdayonline.com

IIM-Africa, NiNSA sign MoU to train accreditation, data and information managers Jumoke Akiyode Lawanson

he Institute of Information Management (IIM) Africa and the Nigeria National Accreditation System (NiNSA) have signed a Memorandum of Understanding (MoU) on cooperation in the fields of accreditation and training of data, information, records, archives, knowledge and document management practitioners in the country. Oyedokun Oyewole, the president/chairman of IIM-Africa, signed on behalf of the Institute that is improving professionalism in the essential field, as required in functions such as healthcare, finance, administration, engineering, construction, project management, procurement, IT, communications, among others. Also, Celestine Okanya, the director-general/chief executive officer of NiNSA, signed on behalf of Nigeria’s national accreditation body recognised internationally to accredit conformity assessment bodies (CABs) such as laboratories (testing, medical testing, and calibration), inspection bodies, and certification bodies, in accordance with the relevant ISO (International Organisation for Stan-

dardisation) series of standards and guides. In a press statement issued by IIM-Africa, Oyewole said that the purpose of MoU is to provide a

framework for the parties’ cooperation in the field of accreditation and training. “This MOU covers the relationship between NiNAS and IIM-Afri-

ca on matters of accreditation and training, in general, to strengthen quality infrastructure in Nigeria especially in data and information management and technology,” he

said. He listed the areas of cooperation which include; promotion of accreditation for conformity assessment in the field of data and information protection/privacy, data and information lifecycle management as well as technology and other implementation tools. Other areas of collaboration include planning of training on international standards and promotion of information management and conformity among stakeholders in the industry. “This MoU signing happened at the right time; when we need to train data and information managers in order to assist various organisations to seize the emerging opportunities and meet the evolving challenges of managing data and information in the era of knowledge, artificial intelligence, big data, cloud computing, machine learning and internet of things (IoT). “So, with NiNSA on board, we would have an exchange of experience and technical information on accreditation; and conduct joint stakeholder advocacy meetings to engender quality data and information management and certification among policymakers, organizations, and individuals”, Oyewole said.

Cyber security solutions provider recognises top performing partners in Middle East and Africa Jumoke Akiyode Lawanson

ophos, a global leader in next-generation cybersecurity, has announced its fiscal year 2020 awards for top performing channel partners in the Middle East and Africa. The annual awards recognises partners for their significant sales achievements, initiatives that grow their own and Sophos’ business, and a commitment to adding-value to

customers. “As cyber threats increase in volume and sophistication, it’s critical that frontline channel partners are armed with the industry’s best cybersecurity solutions, technical expertise, and deep knowledge of the changing threat landscape to best secure their customers,” Harish Chib, vice president Middle East and Africa at Sophos, said. “This year’s winners are unsung heroes who have clearly differenti-

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ated themselves as trusted security advisors, and we’re thrilled to recognise their success,” he said. For West Africa, Mart Networks Limited won distributor of the year, while Link@Ghana was the emerging distributor of the year. Other winners include Reliance Infosystems as partner of the year and cloud partner of the year, Genesol (GH) Ltd and ATB. In North Africa, Config MAROC won distributor of the year, while

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Software Productivity Group was the emerging distributor. SOLTICE and MODCOD were recognised as partner and emerging partner of the year respectively and Finatech was synchronized security partner of the year. For South Africa, Duxbury Networking won SME/ mid-market distributor of the Year 2020 while First Distribution won MSP distributor of the year. The Upcoming Partner of the year was AVeS Cybersecurity.

@Businessdayng

PM&A and Datategra we’re also winners. In East Africa Mart Networks Kenya Ltd; Mart Network Solutions Ltd Ethiopia, Emerging Communications Ltd, Konvergenz Network Solutions, Cloudsense Ltd and BusinessIT Afrika Ltd were all recognised for their contributions as partners. Sophos is a 100 percent channel focused business that helps partners secure organisations with next-generation cybersecurity solutions.

Tuesday 29 September 2020

BUSINESS DAY

INTERVIEW

‘We plan to explore opportunities in other West African countries’ Provision of learning aids, educational supplies and resources in Nigeria are increasingly gaining traction, driven by demand to close the infrastructure deficit. TEMILOLA ADEPETUN, managing director, and TAYO OSIYEMI, deputy managing director, SKLD Integrated Services, formerly known as School Kits Limited, in this interview with KELECHI EWUZIE, speak on how the organisation in the last 20 years has evolved its operations and services from the concept of the one-stop-school-shop to cater to diverse sectors. Excerpt:

oronavirus pandemic has greatly impacted businesses. What measures did you put in place to overcome the challenges pose by the crisis? The lockdown adversely affected all businesses globally and the continued school closure after the easing of the lockdown in May 2020 had a significant impact on our business. We had invested in inventory for third term school resumption which meant that we had a lot of funds tied down. However, we continued to engage our customers by evaluating their needs and providing the electronic learning aids that most students required for online classes that school had adopted. In addition, we assessed how parents could manage their children’s time at home and promoted the educational toys (for the younger children) and other learning aids on social media. We offered all these products on our e- commerce platform and delivered to the customers in the comfort of their homes. At the peak of the Covid-19, SKLD had over 120 tailors producing personal protective gear like face masks, coveralls and scrubs in our production facility for various corporate clients. Pivoting to production of PPE was essentially how our company survived the crisis that was created by the continued closure of schools. What inspired the setting up of SKLD? SKLD Integrated services formerly known as School kits limited was initially set up as a retail business. The idea was conceived in 1999 when my first son was going to secondary school, and I needed to shop for school items. I had to go around several markets every Saturday for about a month looking for one item or the other. I couldn’t get everything in one place and that gap in the

ing to one percent of the market because the company caters mostly to private schools, I will say our company has a larger market share within Lagos as we have four outlets and we have been in business for a long time. We estimate that we have 20 to 25 percent of the market share in Lagos in our niche area.

Oladayo Orolu

market ignited the idea in me to set up a business that can serve working mothers who want to shop for their children. I wrote down my business plan, a year later, I left my job and started the business. And since then, it’s been a journey of expansion. One of the reasons I chose this business is also because there is a continuum when it concerns education. Children are born daily and majority of them will be educated from nursery to secondary school and certainly a business that services this age range is bound to stay in business because of the niche focus. Over the years, how has www.businessday.ng

SKLD being able to stay above competition? SKLD has competitors, in some aspects of our business especially on the wholesale side on the other hand there are some shops that sell a few of our product categories. However, we are one of the top ten companies in our industry that offer the concept of the one-stop-schoolshop. In terms of the competitive landscape in the education sector in general, there is certainly room for more entrants because of the large population of children of school age in Nigeria. In terms of market share, if I were to take Nigeria as a whole, SKLD is probably cater-

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For you to come this far, you must have had some ups and downs in the journey. Was there any point in time you felt like quitting? Any regrets being where you find as a company? In the last 20 years, there have been challenges, but not enough to make us pull out from this business. Certainly, we faced the usual business challenges in Nigeria such as inadequate provision of power and other basic utilities, recruiting the right employees, difficulty in accessing funds, fluctuations in foreign exchange rates to mention a few. High cost of renting front facing locations for our outlets, access to raw materials for our garment manufacturing especially textiles are other challenges that we have encountered. When faced with these challenges, our management team work together to provide solutions and explore alternatives. Over the years, I have always worked with a team and not relied only on my ideas and I am proud to say that we have a dynamic management team. In 2016, when the exchange rate was at an all-time high making the cost of importing uniforms prohibitive, management decided to engage in backward integration. We started our own small garment production factory at that time producing only the basic uniform lines. We have scaled up the capacity of this facility with the support of the Bank of Industry increasing our ability to handle bigger projects and service other industries as contract @Businessdayng

manufacturers. As a company that have operated for 20 years, why rebrand now? I would not say the rebranding was sudden as we have changed the School Kits logo periodically over the last fifteen years to reposition our brand. It became necessary to rebrand in the last five years as our services expanded to include wholesale, production, distributorship and Humanitarian Aid. Having diversified into areas (other than the niche area of school supplies), we had to ensure that the new company name is not restrictive and could reflect the various aspects of our four business units, at the same time we wanted to build on our existing brand and the good will that we had acquired over the past 20 years. What are your projections for SKLD in the next 5 years? One of the things the company is planning to do is to establish outlets and offices in other states within Nigeria. If given the opportunity, SKLD will also want to explore opportunities in other West African countries as well. The company would like to see the Nigerian textile industry fully revived in order to scale up the capacity of its production facility with the availability of local textiles. In the humanitarian aid space, there are a number of humanitarian aid requirements, especially because of the crisis in the Northeast; we have started working in that sector and would like to build our capacity in this area. In terms of distributorship, the company hopes to have a lot more brands under its umbrella. Eventually, we hope to be able to manufacture shoes in Nigeria, because we actually have our own shoe brand (MH Footwear), but the capacity of the local shoe manufacturers and availability of raw materials is a deterrent for now.

Tuesday 29 September 2020

BUSINESS DAY

INSIGHT An enabled workplace - The future of work Esther Akinnukawe

feedback. It could also require refreshing and reviewing existing policies and adapting them as required. Also critical is ensuring and supporting continuous learning as an integral aspect of staying connected. In Nigeria, MTN was one of the first organisations to proactively proceed on a full-scale Work from Home (WFH) model well ahead of the lockdown directive from the Federal Government. To support the transition to a full WFH model, managers and teams were equipped with work tools, an employee and manager telecommuting (WFH) playbook, which provided guidelines on leading virtually; ways of dealing with COVID-19 and external and internal helpline; etiquette and collaboration tools; keeping information confidential and ensuring adequate protection of confidential information; and a host of frequently asked questions. Remote work has a host of advantages for the employer and the employee, providing a strong business case worth exploring. For the employee, it creates a better work life balance as workers have flexible schedules; they can start and end their day as they choose, as long as their work is complete and meets required expectations. It promotes increased productivity and performance as there are fewer interruptions and less commute required - eliminating to a large extent the corresponding stress from this - offering the opportunity to channel the time gained to other productive uses. The health of workers is also improved in a variety of ways: www.businessday.ng

there is more time to engage in exercise and physical activities, get extra sleep and the opportunity to eat healthier resulting in better overall wellbeing. An added benefit is employees can focus and spend more time on family bonding as most family members are at home for extended periods of time. For the employer, it enables

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At the corporate level, we are supporting other businesses through the Revv Programme, an initiative aimed at addressing the critical needs of MSMEs (Micro, Small and Medium Scale Enterprises) during this pandemic and in the aftermath of the pandemic

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OV I D - 1 9 ha s a ccelerated the global appetite for a digital transformation, accomplishing within a few months what several organisations had projected as long-range plans thereby redefining the way organizations deliver value. The rapid human-to-human transmission led to the declaration of lockdown measures requiring many employers to immediately implement large-scale remote work from home strategies. At the center of all this, is the employee who must quickly adapt to this new normal whilst delivering value to customers. Successfully managing a remote and diverse workforce requires trust; leading with empathy and adopting a ‘deliverable’ mindset to driving productivity rather than the traditional command and control approach, which in many instances fails to generate sustainable employee commitment. Building on this, organisations must also institute appropriate policies and strategies to guide the process to ensure that there are no disruptions. Digital and up-to-date technological infrastructure is a key requirement to drive transparency and accountability. The organisation under capable leadership must select and invest in appropriate technologies - video conferencing platforms, information systems, work tools, remote connection to office networks via secured accesses - to aid collaboration. Deploying rich and diverse communication channels is also very important, the reality of working from home may create a sense of loneliness and isolation, hampering information flow due to physical distances. If deliberate mechanisms are not instituted, the lines of communication may be broken, creating a vacuum and making productivity levels a problem. Setting clear goals and expectations have been frequently identified as a successful mitigation strategy. Furthermore, line managers must make deliberate efforts to create a conducive digital environment that fosters social interaction, trust and inclusion while being mindful of the impacts of their communication styles. Frequent and timely communication assures and inspires hope in employees, therefore organisations must work in tandem with line managers to establish a fluid channel for getting feedback from employees about how they are faring with a view to acting on the

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greater mobility and access to a broader range of talent that is otherwise limited by geographic location. It improves inclusivity by enabling companies to embrace diversity and inclusion by hiring people from different socioeconomic, geographic, cultural backgrounds and with different perspectives. It also provides the opportunity for people with disabilities to find steady employment and pursue their career goals without having to worry about commuting back and forth to an office. The organization has real opportunities to save cost from not having to pay overhead associated with real estate and other costs. It also promotes a positive environmental impact; one of the fastest and cheapest ways for employers and employees to reduce their carbon footprint and the adverse effect of climate change is by reducing commuter travel. When setting up a remote workforce, it is important to institute a leadership team that will provide a clear direction, assurance to employees and inspire contributions to the organizational agenda in an exciting manner. At MTN, we launched several internal activities on an organizational and divisional level. Some of which include the “Stay Safe Employee Engagement Campaign”, a “Banter Session” for employee bonding & socialization, including virtual workout sessions, health forums and clinics. We continued ourleadership engagement series, now virtual, rebranded “Brunch with Leadership” to serve as a platform for the Senior Leadership team to share @Businessdayng

updates and encourage staff members, and we have other Leadership Roadshows featuring cross sections of the Executive Leadership team aimed at connecting with our people across their regional and head office locations. At the corporate level, we are supporting other businesses through the Revv Programme, an initiative aimed at addressing the critical needs of MSMEs (Micro, Small and Medium Scale Enterprises) during this pandemic and in the aftermath of the pandemic. We also partnered with Nigeria Centre for Disease Control (NCDC) and Nigeria Institute of Medical Research (NIMR) to flatten the curve by supplying Personal Protective Equipment (PPE) and providing testing opportunities to frontline workers and the communities. Based on our experience at MTN, a remote workforce is a viable long-term option to consider beyond COVID-19. Our digital tools and platforms will be critical in enabling remote working initiatives and policies, therefore needing prioritization and investments as required. Jobs can be remodelled to factor in greater flexibility. Performance agreements or contracts must emphasize results over activity with autonomy, trust and accountability becoming the guiding principles for managing performance. Leaders must note that these are uncharted territories. There is no one-size fits all template for navigating and managing a remote workforce. It is therefore important to first look at the existing organization culture, digital maturity and result orientation and then design appropriate tailor-made policies that are grounded in the principles of workability, transparency, flexibility and inclusiveness. When employees receive the right kind of support and motivation, what immediately becomes apparent is that employees can be productive and focused when not in the office - in many cases, even more so.

Esther Akinnukawe, is Chief Human Resources Officer, MTN Nigeria

Tuesday 29 September 2020

BUSINESS DAY

FEATURE Educating Nigerians on the intent of the National Water Resources Bill Ignatius Aifuwa

Suleiman H. Adamu, minister of Water Resources

Delta and Bauchi are under construction, rehabilitation and upgrade leading to additional 2.4 million Nigerians gaining access to Water Supply in the last 12 months. The Partnership for Expanded Water Supply, Sanitation and Hygiene (PEWASH) is another flag-ship initiative of this administration where the Federal Government and the States come in partnership to provide water supply in the country, this initiative has led 22 State Governments to endorse the PEWASH protocols while 11 more States have recently signed up bringing the total to 33 states. The Ministry inherited 116 on-going and abandon projects. The Hon. Minister categorized these into high, medium and low priorities in an effort to tackle the litany of abandoned project. The result is 12 high priority projects have been completed and commissioned across the country. In order to aid diversification of the economy, guarantee food security and create employment a National Irrigation Development Programme was initiated in 2016 as part of the Water Sector Road map. It is aimed at, among others establishing additional 100,000Ha of irrigated farmland by 2020 and achieve a total of 500,000Ha by 2030 and an additional 1,000,000Ha of irrigable land to be developed by the private sector and State Governments by 2030. The World Bank is supporting the implementation of Transforming Irrigation Management in Nigeria Project (TRIMING) with a credit facility

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In view of the dynamics between knowledge and ignorance and the competing and contrasting worldviews, coupled with the dirty politicking that shapes our polity, it is always good to spend quality time and budget to carry the populace along www.businessday.ng

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ittle knowledge is always dangerous. It leads to wrong readings, perception and action on a particular issue. Ignorance was described by John Foster in 1821 as “waste howling wilderness” to which many people have been consigned for lack of knowledge. This seems to be what is happening to many Nigerians on the issue of the National Water Resources Bill before the National Assembly – while they have not had the time to read the provisions of the Bill, they have found the time to imbibe the personal views of those who deliberately want to castigate the bill for self-serving reasons. The gullible members of the public can be educated and saved from ignorance, but it seems there is nothing one can do about those oppose the Bill for their selfish interests and have, therefore, taken a path to perdition. To bring Nigerians out of John Foster’s wildness, the Ministers of Information and Culture, Lai Mohammed, and his counterpart from the Ministry of Water Resources, Suleiman H. Adamu, addressed joint a press conference on 22nd September 2020. This is necessary and commendable for two reasons. First, ignorance is human nature, after all the state of the advancement scientific inquiry depends critically on asking questions about what we do not yet know. Secondly, our decisions, as human, are most of the time set against the background of our massive ignorance about the past (past water resource laws, for example), the present (2020 National Water Resource Bill) and the future (which we all can anticipate or forecast based on past and present realities). I don’t know if one or all the ministers were once class room teachers; because the Pedagogical approach they took to remove our ignorance is superb. They carefully collected the various ignorantly construed misgivings expressed in the public domain and address them respectively. But before I recast the lines of these minister-teachers at that memorable press conference, let me lift the veil and reveal, for those who don’t know, some of the achievements of Engr. Suleiman Adamu since he assumed office as minister of Water Resources. The Ministry’s activities under the leadership of Engr. Adamu have been guided by the National Water Resources Master plan (2015 – 2030); United Nations Sustainable Development Goals; and the Water Sector Roadmap (2016 – 2030). The River Basin Development Authorities (RBDAs) have now been strategically positioned to facilitate implementation of the National Food Security programme and support employment opportunities. The RBDAs are being constantly revitalized to deliver on their mandate, to the extent that core and relevant professionals are appointed to the headship of the Agencies. For optimal utilization of River Basin Development Agencies, the Ministry is expanding hectares for irrigation farming in Ejule-Ojebe, Gari, Bakalori, Kano River, Hadeja valey and Duku-lade basins toalling 55,000 Ha from 2016-date. The Ministry fully implemented the Water and Sanitation Hygiene (WASH) Action Programme in the last 12 months where 34 water supply projects have been completed, 159 rural water supply schemes in the North East, IDP camps and some Federal institutions and establishments were constructed, 895 water supply schemes in 10 States of Imo, Katsina, Jigawa, Plateau, Zamfara, Sokoto, Ondo, Osun,

of US$495million. The Project involves rehabilitation/expansion of about 42,000Ha of irrigation land under the first phase at Bakalori, Kano River, Hadejia valley, Dadin Kowa,and Middle Rima irrigatin projects to be completed by 2022. Now back to the press-conference and how the duo ministers addressed the fears of Nigerians on the 2020 National Water Resource Bill. The starting point was for the ministers, was to insist that “there is nothing new” about the bill, to the extent that it was, indeed, an amalgamation of several past Acts on the subjects. These include: • Water Resources Act, Cap W2 LFN 2004 • The River Basin Development Authority Act, Cap R9 LFN 2004 • The Nigeria Hydrological Services Agency (Establishment) Act, Cap • N1100A, LFN 2004 and • National Water Resources Institute Act, Cap N83 LFN 2004 For clarity, they also posed and answered the burning question: Why have the laws being re-packaged? They premised this on the need to “bring them in line with current global trends as well as best practices in Integrated Water Resources Management (IWRM),” with the overall objective of achieving efficient management of the water resources sector for the economic development of Nigeria and the well-being of its citizens. Nigeria’s water resources are enormous, but only when these are professionally and efficiently managed can their full economic potential be realized and serve the purposes of: • Domestic and non-domestic use • Irrigation for agricultural purposes, including fishery • Generation of hydro-electric energy, • Navigation and transportation • Recreation For these, the nation’s water resources need to be protected, developed, conserved, managed and controlled in a sustainable manner. These are the intentions of proponents of the Bill, and necessitate the imperative of the creation of an enabling environment for public; promotion of private sector investment; establishment of licensing frameworks for financing of the water sector.

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According to the ministers, the disturbing part of the whole controversy is that many of those criticizing the Bill might not have read its detailed provisions. The statement then tackles the wrong notions fueling the criticisms as follow: a) Rather than seeking to “take over the nation’s water resources by licensing and commercializing the use of water” the Bill is only affirming the regulations that commercial borehole drillers obtain a License from the Standards Organization of Nigeria (SON) and the NWRI, Kaduna. However, the Bill is assigning the role of provision of database as a requirement by NWRI to States, under delegation of the National regulator, the Water Resources Regulatory Commission. b) There is nothing unusual about a borehole driller, whether corporate or individual, who is technically-competent submitting technical assessment before being granted a license c) On critics’ contention that the Bill is illegal, citing the Supreme Court which held that the power of physical planning in any state of the Federation is exclusively vested in the state government and that the National Assembly lacks power to legislate on the physical planning outside the FCT, the ministers said a Physical Planning Bill should not be confused with a Water Resources Bill! Other concerns the ministers educated us on include: a) The assertion that the Supreme Court has ruled that the Federal Government does not have the power to approve or issue licence for digging boreholes in any part of the country b) Communities on River Banks are guaranteed undisturbed use of water as stated in Section 3 of the Bill. Also, all occupiers of Land are guaranteed the right of abstraction for domestic and sustenance, whether by borehole or rivers. Section 3 reiterates the right of persons to continue to access water without charge for subsistence and preserves existing customary rights to water. c) The intention of the Bill is not to take the resources of a certain part of the country for the use of herders. In other words, that the Federal Government is seeking to implement RUGA by subterfuge. d) The Bill reiterates the fact that Land can only be acquired by any of the institutions established in accordance with the Land Use Act. Almost all the Institutions have State Representatives. e) The Regulatory Commission Board comprises representatives of the six-geo political regions. The State level basins management includes representatives of each state in the Basin. f) The fear of “water wars” in the country is unfounded, since this is a phenomenon usually associated with relationships between countries. In view of the dynamics between knowledge and ignorance and the competing and contrasting worldviews, coupled with the dirty politicking that shapes our polity, it is always good to spend quality time and budget to carry the populace along. This is to ensure that the intent and purpose of policies and laws government are proposing understood by the public. Our ministers have, by their collaboration on the press conference, acknowledged the fact that our decisions, as humans, must come upon against massive ignorance; and that, to unveil that ignorance requires timely efforts to educate the citizenry. The press conference in question was, therefore, one good way to do that - a masterstroke. Ignatius Aifuwa, Ph.D. contributed from Abuja

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Tuesday 29 September 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Monday 28 September, 2020

Top Gainers/Losers as at Monday 28 September, 2020 LOSERS

GAINERS Company

Opening

Closing

Change

Company

Opening

Closing

Change

TOTAL

N80

N88

SEPLAT

N400

N398

-2

MTNN

N124

N126.5

2.5

MAYBAKER

N3.07

N2.9

-0.17

OKOMUOIL

N78

N80

CAVERTON

N1.84

N1.73

-0.11

BUACEMENT

N38.55

N40.4

1.85

UAC-PROP

N0.9

-0.1

WAPCO

N15.05

N16

0.95

UPL

N1.42

N1.33

-0.09

ASI (Points)

26,507.84

DEALS (Numbers) VOLUME (Numbers)

4,602.00 336,832,809.00

VALUE (N billion) MARKET CAP (N Trn)

4.029 13.853

Market gains N98bn as investors buy bellwether, dividend paying stocks heanyi Nwachukwu

ellwether and dividend paying stocks on the Nigerian Bourse continued to trade northwards on Monday September 28 as more investors took positions in the value counters. The increased bargain seen on Monday pushed the value of listed stocks higher by N98billion. Top on the list of investors picks are stocks like Total Nigeria, MTNN, Okomu Oil, BUA Cement, and Lafarge Africa. Total Nigeria Plc recorded the highest gain on the Bourse after its share price moved from N80 to N88, adding N8 or 10percent. MTNN also increased from N124 to N126.5, adding N2.5 or 2.02percent. “In the absence of any negative catalyst, we expect sustained bullish momentum in the equities market. This is to be driven by the unattractiveness of yields in the fixed income market and the availability of lowpriced but fundamentally

sound tickers. Ultimately, we expect the market to close in the positive zone”, said Lagos-based Meristem research analysts. The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.72 percent to 26,507.84 points from preceding day low of 26,319.34 points. The value of listed stock increased to N13.853trillion from preceding trading day low of N13.755trillion. The market’s negative return yearto-date (YtD) decreased to -1.25percent. In 4,602 deals, investors exchanged 336,832,809 units valued at N4.029billion. “We expect the CBN accommodative policy-induced-rally witnessed last week to subside this week,

as a result of profit taking by some active traders. Nevertheless we see the overall market performance index closing the week positive, as market valuation remains attractive for medium and long term investors”, according to GTI research analysts. Also, Okomu Oil Palm Plc stock price increased from N78 to N80, adding N2 or 2.56percent. BUA Cement increased from N38.55 to N40.4, up by N1.85 or 4.80percent, while Lafarge Africa Plc moved up from N15.05 to N16, adding 95kobo or 6.31percent. “Going forward, we expect to see the bullish sentiment sustained in the equities market on the back of elevated financial system

ASHON reaffirms stockbrokers’ planned trading on FMDQ

he Association of Securities Dealing Houses of Nigeria (ASHON) has re-affirmed that its members shall commence trading on the FMDQ Securities Exchange any moment from now. The Relationship Committee set up by the Association’s Governing Council is said to have submitted its final report for consideration and implementation. Addressing ASHON’s members during the zoom Annual General Meeting (AGM) at the weekend, the Chairman, Onyenwechukwu Ezeagu confirmed that the final report of the Committee on collaboration with FMDQ had been submitted to the Governing Council . “In our resolve to create new streams of income for

our members, we intensified efforts through the FMDQ Committee to establish a trading relationship with the FMDQ. The Committee has submitted its final report and we are at the last stage of onboarding our members to trade on the FMDQ platform ”, said Ezeagu. Corroborating him, the Association’s Public Relations Officer, Ms Ify Ejezie explained that the onboarding processes, training and fixing of applicable fees would be seamless. ASHON has been on the vanguard of ensuring that its members take advantage of an array of business opportunities created by the emergence of more Securities Markets such as FMDQ, NASD OTC Plc and Lagos Commodities and Futures www.businessday.ng

Exchange (LCFE). The move is expected to reverse the current situation whereby Stockbrokers are not so active in trading fixed income securities on the FMDQ , whereas the financial instrument was the hub of transaction on The Nigerian Stock Exchange in the past. The umbrella body for all Securities Dealing Houses in Nigeria was formerly known as Association of Stockbroking Houses of Nigeria until last year, when the trade group swiftly and creatively changed its name to reflect the enlarged functions of its members. This is without prejudice to the existing acronym. As part of its brand positioning, the Association also changed its logo and launched it with fanfare to reflect an array of its members’ functions.

liquidity as well as the continuously declining returns in the fixed income market and limited investment outlets. As such, we advise investors to take position high quality dividend paying stocks”, said United Capital research analysts in their September 28 note. “With the continued inflow of funds into the equities market, a number of fundamentally attractive counters continued to witness positive investors’ patronage (evidenced by the positive market breadth coupled with the bullish sectoral performances). “With yields in the equities market still looking more attractive than those in the fixed income space, we expect a number of bellwether stocks and dividend paying stocks to continue to trade upward as investors increasingly take position in decent counters. However, with the presence of short term players in the market, the possibility of profit taking cannot be overruled”, said Lagosbased research analysts at Vetiva.

NSE lifts suspension placed on trading in shares of R.T. Briscoe

he Nigerian Stock Exchange (NSE) has lifted the suspension it earlier placed on trading in the shares of R.T. Briscoe Nigeria Plc. The suspension was listed on Friday September 25, 2020. The NSE referred to its Market Bulletin dated September 1, 2020 with Reference Number: NSE/ RD/LRD/MB43/20/09/01, wherein it notified Dealing Members of the suspension of six (6) listed companies for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules).

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Global market indicators FTSE 100 Index 5,927.93GBP +85.26+1.46% S&P 500 Index 3,349.03USD +50.57+1.53% Generic 1st ‘DM’ Future 27,540.00USD +497.00+1.84%

Deutsche Boerse AG German Stock Index DAX 12,870.87EUR +401.67+3.22% Nikkei 225 23,511.62JPY +307.00+1.32% Shanghai Stock Exchange Composite Index 3,217.54CNY -1.88-0.06%

The Funding Space, FCMB, Experts call for more impact investing in Africa to boost post-COVID- 19 recovery

mpact investors, business owners and other stakeholders in Africa have been urged to transform the challenges posed by the novel coronavirus (COVID-19) pandemic into opportunities by going into strategic partnerships across different sectors nationally, continentally and internationally. In addition, they have been enjoined to place emphasis on impact investment, as part of the COVID-19 pandemic recovery process, to fast-track economic growth and development. These were the submissions at a virtual conference, under the theme, ‘’Investing in the New Normal: A Call for Impact Investing in Africa”, organised by The Funding Space (an access to finance, impact investing, training and networking platform) in collaboration with leading financial services provider, First City Monument Bank (FCMB). The conference, which recorded over 1,100 registered participants from 18 countries across the world and prominent speakers from 10 countries, was held on September 4, 2020. It provided a platform for diverse expert

discussions with leaders in government, financial and investment sectors, international development institutions, innovators, donors and entrepreneurs, to have more insights into enhanced impact investing and exploring opportunities for the growth of African entrepreneurs and what the new normal caused by the COVID-19 pandemic should look like. The experts spoke on various topics, ranging from, the Policy & Practice on Impact Investing in mid/post COVID-19 Africa, Outstanding Impact Investing Examples during COVID-19, Diaspora & Impact Investing in Africa and Strategies to make this a reality as well as Gender Lens Investing: Trends & Community Building in Africa. Among the speakers at the virtual conference were the Minister of Trade, Industry and Investment, Otunba Adeniyi Adebayo; The Minister of Women Affairs, Dame Pauline Tallen; Governor Babajide Olusola Sanwo-Olu of Lagos State, (who was represented by the Special Adviser, SDGs and Investment, Mrs. Solape Hammond) and the Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema.

Honeywell says focused on building sustainable, growing business

oneywell Flour Mills Plc (HFMP) has said it will continue to focus on building a sustainable and growing business at the heart of the Nigerian food industry by maintaining a strong position in current product categories and implementing a developmental agenda in the indigenous carbohydrates segment. The company also assured stakeholders it will continue to invest in growth opportunities and platforms, particularly those that will improve Nigeria’s agricultural productivity. These ambitions are contained in the recently released 2020 annual report and accounts of the company, which will be presented at the company’s 11th Annual General Meeting (AGM) scheduled to hold on Wednesday September 30, 2020 in Lagos. In his message to shareholders, Chairman of the Board @Businessdayng

of Directors, Oba Otudeko CFR, said the company will continue to pursue long-term shareholder value maximisation through balanced topline and bottom-line growth by focusing on categories and regions where the company has the ability to win and grow market share. “We will actively manage our product portfolio and prioritise our investments to stay relevant, address the latest consumer trends, and win in every category and market we operate in,” Otudeko said. Speaking on some of the measures the company has employed to increase the size of local content in its operations, Otudeko continued: “We have expanded our scope beyond substituting edible raw materials with locally available inputs, to sourcing and working with local suppliers to produce critical manufacturing inputs and spares that were previously imported.

Tuesday 29 September 2020

BUSINESS DAY

ICPC traces N2.67bn school feeding funds to private accounts

...another N2.5bn in deceased agric ministry staff account ANTHONY AILEMEN

he Independent Corrupt Practices and Other Related Offences Commission (ICPC) on Monday exposed the rot in the Federal Government School Feeding Programme with a revelation that N2.67 billion of the fund for the programme ended up in the account of civil servants. Another N2.5 billion appropriated for the Federal Ministry of Agriculture was also found in the personal account of a deceased staff of the ministry who was also discovered to be in possession of landed assets including 18 buildings, 12 business premises and 25 plots of land, ICPC said. Bolaji Owasanoye, chairman of ICPC, made the revelations at the second National Summit on Diminishing Corruption and launch of the National Ethics and Integrity Policy by President Muhammadu Buhari.

The summit had the theme with the theme “Together Against Corruption”. The ICPC chairman said under Open Treasury Portal review carried out by the anticorruption agency between January and August 15, 2020, out of 268 Ministries, Departments and Agendas (MDAs), 72 of them had cumulative infractions of N90 million. Assessing the performance of the MDAs, he said 33 of them tendered explanations that N4.1 billion was transferred to sub-TSA, and N4.2 billion paid to individuals had no satisfactory explanations. “We found payments to Agric contractors for no job done or overpayment for jobs done, appropriation of projects to private farms of senior civil servants of the ministry. It also discovered N2.5 billion appropriated by an individual now deceased for himself and cronies. “Other assets recovered include 18 buildings, 12 business premises and 25 plots of land. “We observed that trans-

fers to sub-TSA was to prevent disbursement from being monitored. Nevertheless, we discovered payments to some federal colleges for school feeding in the sum of N2.67 billion during lockdown when the children were not in school, and some of the money ended up in personal accounts. We have commenced investigations into these findings,” he said. The ICPC chairman said under its 2020 constituency and executive projects tracking initiative, 722 projects with a threshold of N100 million (490 ZiP and 232 executive) was tracked across 16 states. He also revealed that a number of projects described as ongoing in the budget were found to be new projects that ought to have been excluded in order to enable government complete existing projects. The ICPC chairman said some of the constituency projects were sited in private houses on private land thus appropriating common asset for personal use, while denying

communities of the benefit. Other anomalies cited include the absence of synergy between outgoing project sponsors and their successors. He said the organization found out that uncompleted projects sponsored by legislators who do not return get abandoned, while some use companies owned by sponsor’s friends or relatives or companies belonging to civil servants in implementing MDAs to execute projects which are either abandoned or poorly performed. “We discovered conspiracies between legislative aides of sponsors and implementing MDAs and contractors to undermine quality of project without knowledge of the sponsor; vague project description that result in diversion of funds by implementing MDAs or project sponsor with collusion of contractors and absence of community ownership of project because they were not consulted or largely ignorant of projects allocated to them,” he said.

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How Africa can leverage tech to boost agriculture, create jobs - stakeholders at ASA Joshua Bassey

hairman, board of directors, Sterling Bank Plc, Asue Ighodalo, has identified five core areas that should be articulated in the quest to transform the agricultural sector in Nigeria and on the African continent. The chairman stated this in his address at the virtual Agriculture Summit Africa (ASA) organised by Sterling Bank with the theme: Fast forward agriculture: exploiting the next revolution,” which held with synchronised broadcast studios from Lagos and Abuja. According to him, to be able to effectively transform the agricultural sector, feed the continent’s growing population, boost its economies, create massive employment for millions of young and not so young people as well as absorb the shocks of the on-going pandemic, the involvement of key stakeholders across public and private sectors in developing the right policies to aid the growth of the agribusiness value chain must increase. Ighodalo urged governments in sub-Saharan Africa to optimise the agricultural sector to attract sizeable investments that will help to drive expansion and achieve global competitiveness as well as increase financing to key points of the value chain, particularly smallholder farmers, to modernise their practices

and increase outputs. He stressed the need to focus on the role and impact of technology and data science in stimulating innovation in the value chain and the need to understand the changing regional climate cycles, its impact on productivity, and identifying necessary adjustments to deliver growth despite these climate changes. Also speaking, managing director/CEO of the bank, Abubakar Suleiman, noted that government could only help to kick-start the revolution while it was the responsibility of private sector players to come together to make a success of it. He said the government has put in place processes, finances, and researches to start the revolution in the agricultural sector and it is now about commercialising it and making it possible for the individuals and businesses to benefit from it. Suleiman observed that Sterling Bank has been hosting the agriculture summit for three consecutive years and every year had been better than the previous one, adding that one of the outcomes from the first summit had been the bank’s commitment to fund the Nigerian Farmers Radio which has become a successful platform for disseminating information to rural farmers. The bank, he said, intends to enhance the platform so that more farmers could have access to information.

Nigeria Leadership Initiative begins webinar series October 3 BUNMI BAILEY

N L-R: Sam Egube, commissioner for economic planning and budget, Lagos State/co-chair, Ehingbeti steering committee; Olayinka David-West, academic director, Lagos Business School; Gboyega Sanyowu, deputy chief of staff to the governor of Lagos State; Solape Hammond, special adviser on Sustainable Development Goals (SDGs) and investment to the Lagos State governor, and Olayemi Cardoso, co-chair, Ehingbeti steering committee, during the media interaction ahead of the major briefing on Ehingbeti Lagos Economic Summit 2020 in Lagos. Pic by Olawale Amoo

Amid COVID-19, experts worry over poor awareness on tuberculosis in Nigeria ANTHONIA OBOKOH

hile Nigeria is still grappling with the Covid-19 pandemic, health experts are concerned over poor awareness of the world’s most deadly infectious disease Tuberculosis (TB), as about 74 percent of the estimated cases are still in the community. Itohowo Uko, head of communication and social mobilisation, the National Tuberculosis and Leprosy Control Programme (NTBLCP) said at a virtual TB media roundtable with the theme “Improving TB awareness creation: Lessons from Covid-19 held in Abuja, that tuberculosis knowledge in Nigeria was still low.

“We are only able to identify 26 percent of the estimated TB cases in Nigeria. And we are able to put them on treatments, but what that means is that we still have an overflow of 74 percent of the estimated cases that are still in the community.” “The issue of myths and misconceptions has actually posed serious challenges about the transmission of the disease and it is actually affecting the health behaviour of people who are in the community. Even the health workers themselves sometimes don’t actually believe in the transmission,” she said. Uko further listed other factors fuelling the disease to include discrimination, www.businessday.ng

lack of accurate information, stigma, and fear of association with TB. These, she said, have prevented many people from seeking treatments. “One case of untreated TB actually affects 15 more people within one year. Nigeria can see what that means for the country to have seen a huge number of TB patients, still in the community, not identified, or treated. “Many people are still not aware of it, and some do not even believe that tuberculosis is real. With the current normal that we are facing- Covid 19 pandemic, this has actually impacted negatively on the initial health-seeking behaviour of most of our people, as well as the adherence to even

those that have been placed on treatments,” she said. Statistics from the World Health Organisation (WHO) show that every year, around 245,000 Nigerians die from TB, and about 590,000 new cases occur (of these, around 140,000 are also HIV-positive). Over the last decade, Nigeria still is struggling with increasing incidence of tuberculosis cases. Currently, there is no effective vaccine to prevent TB. Tuberculosis is an infection disease caused by bacteria known as Mycobacterium tuberculosis; the most frequent symptoms include cough of two weeks or more, weight loss, night sweat, and loss of appetite.

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igeria Leadership Initiative (NLI), an international, non-partisan organisation registered as a charity in Nigeria and in the United Kingdom, has announced that it will hold its inaugural webinar series on Saturday, October 3, 2020 According to a statement signed by Bashir Ibrahim Yusuf, chairman, organising committee of NLI, and Olusegun Aganga, founder, a significant objective of the webinar, themed ‘Rebuilding Our National Values System,’ is to galvanise and energise citizens and policymakers at all levels to take a collective action regarding the development of a national values system. This will culminate into the proposition of a bill to the National Assembly, policy formulation, and the development of an implementation plan that is also linked to the system for reward and national honours, the statement said. “There is a growing consensus that our national values system has broken down and that this has become a threat to values leadership and our national development,” NLI said. “History has shown that the most successful companies and countries in the world are built on a set of core values. These become the foundation on which @Businessdayng

the nation is built. “We cannot achieve sustainable economic growth and development unless we build on a solid foundation and develop community-spirited Nigerians who live these values. It is an investment in our greatest asset – our people,” NLI said. The statement noted that the webinar would, among others, “reference our history, enunciate and understand the values we had as Nigerians (during a nostalgic period commonly referred to as our “golden era”), examine our current situation (by identifying when our values system derailed, allowing us to understand how and why we got here), and discuss key steps required to rebuild the national values system”. Nigeria’s former military head of state, Yakubu Gowon, would be the special guest of honour, Vice President Yemi Osinbajo would deliver the keynote address, while Senate President Ahmad Lawan, Christopher Kolade, NLI patron, Olusegun Aganga, Wale Adebanwi, Joe Abah, Ibukun Awosika, John Momoh, Bashir Yusuf Ibrahim, and Tunji Olaopa have been invited as speakers and panellists. The statement asked members of the public who wish to participate in the webinar to send an email to nli.webinar@ nligroup.org.

Tuesday 29 September 2020

BUSINESS DAY

news How electricity tariff dispute could worsen... Continued from page 1

tification, but this could worsen the cash problems in the power sector.

Power Generation Companies (GenCos) say their market invoice has not been settled for one year, hindering their ability to pay gas suppliers for the feedstock required to provide power. Over 75 percent of the country’s supply comes from gasfired plants. “Our invoices have not been settled in over a year now,” Joy Ogaji, executive director, Association of Power Generation Companies (APGC), told BusinessDay, saying, “We cannot pay salaries anymore.” Labour unions threatened an industrial action that was supposed to commence yesterday, and to stave off the threat, government officials met with the union leaders and achieved a truce. At the meeting held at the early hours of Monday morning, the parties agreed to set up a Technical Committee comprising government ministries, departments, agencies, the NLC, and Trade Union Congress (TUC) to within two weeks come up with a justification for the new policy. The group will also determine why it has been difficult to meter customers and give labour unions a role in power sector administration. The labour unions also want more government representation on the board of DisCos. However, the challenges with the power sector in Nigeria are more nuanced. For example, though the government has limited representation on the board of DisCos, no material decision can be taken without government’s approval. The Nigerian Electricity Regulatory Commission (NERC) plays an active role in regulating the sector. One key challenge with the power sector, according to analysts, is with the market. Nigeria’s electricity market does not recover the proceeds of investments mainly because the tariffs do not guarantee commercial returns and operators do not fulfil their market obligations. So, it depends on government bailouts, costing over N1.72 trillion within the past five years. “The erosion of capital in the power sector due to the absence of a credible market and poor tariffs are some of its biggest challenges,” Eyo Ekpo, CEO, Excerdite Consulting Limited, said at a recent BusinessDay digital conference. Ekpo excoriated market participants for flouting rules governing the market, the lack of corporate gover-

nance, and poor leadership from the sector regulator. Analysts say one way to resolve the market challenges is the implementation of a service reflective tariff, which prescribes tariff bands based on hours of electricity consumption. This has compelled DisCos to take the matter of metering customers more seriously as there is now an incentive to do so. The government has removed a 35-percent levy on imported meters and is discussing loans with the World Bank and the Central Bank of Nigeria to procure meters en mass for Nigerians. The agitation by labour groups, unless it is to speed up these initiatives, will only imperil the market more, analysis show. It is not clear how greater participation by labour unions in the power sector administration will address market constraints. Meanwhile, if the suspension lasts much longer, and talks got more knotty, the liquidity challenges in the sector will worsen. The frustration over tariff increase by many Nigerians is largely on account of a lack of equity in electricity pricing. Millions are on estimated billing and feel exploited by their DisCos. Yet, self-power generation through diesel or petrolpowered generators is twice the cost of the reviewed tariff. “From the point of view of radically improving the sector, this suspension is a setback,” Ayodele Oni, energy lawyer, and partner at Bloomfield Law firm, noted. Oni said from the socialist/welfarist cum state of economy points of view, c o n s i d e r i ng t h e i s s u e s around Covid-19, the state of the economy and the losses suffered by people, it could be argued that i t sh ou l d b e d on e, bu t maybe this was not the right time. “Overall, I think an increase in tariff is probably a good idea, even now, because without the increase, the sector is less likely to improve and power supply too will not improve as drastically as we want the same to improve. “With poor power and increase in fuel prices (as a result of deregulation and improved international crude prices) people will spend more on self-generation and compared to the proposed changes to the tariffs, people will still end up spending more; that is, especially people (like barbers and hairdressers) in the informal sector of the economy,” Oni said. www.businessday.ng

R-L: Godwin Obaseki, governor, Edo State; Osarodion Ogie, secretary to the state government; Etan Uzamere, chief of staff to the governor, and Anthony Okungbowa, state head of service, addressing senior civil and public servants at the flag-off of training on implementation of the Making Edo Great Again (MEGA) manifesto at the John Odigie-Oyegun Civil Service Academy, in Benin City, yesterday.

HealthPlus, Chicken Republic, others locked... Continued from page 1

source growth funds from other climes due to dearth of single-digit, long-term funds in the local financial institutions, according to analysts.

On September 25, the board of HealthPlus said it had suspended founder Bukky George as CEO due to the inability to reach an agreement with her, leading to the hindering of operations of the company and delaying the implementation of its growth plans. Alta Semper, also known as Idi Holdings, had announced a $18-million investment into the health firm in 2018. However, founder Bukky George told BusinessDay that Alta Semper Capital LLC UK (AS) announced an $18 million investment in HealthPlus on March 15, 2018, but paid up $10 million as Tranche 1. Tranche 2 was due 12 months later. She said the pledged funds were never fully disbursed in order to implement the firm’s strategic objectives, stressing that its growth journey had been fraught with serious challenges, unmet expectations, and erosion of market share and brand equity. BusinessDay also gathered that Food Concepts, founded by Deji Akinyanju, is in ownership tussle with its investor. But sources close to Deji Akinyanju said the investor had completed plans to take over the business. Food Concepts, owner of Chicken Republic, got $3.02 million from the International Finance Corporation (IFC), an arm of the World Bank, in 2011, according to reports. The situation is also extended to the health sector. PathCare, founded by Richard Ajayi, a renowned Lagosbased medical doctor, was acquired by Europe’s largest lab operator Synlab in 2017. Synlab, owned by private equity firm Cinven, did not publicly announce how much

it invested in PathCare, which, as of that time, was Nigeria’s largest private pathology laboratory company. However, Ajayi had said the company bought back a 26 percent stake held by PathCare South Africa, its former parent company, year before the Synlab deal, according to a Reuters’ report. But the deal has gone awry due to issues around breach of local intellectual property, breach of agreement, and disagreement on whether to bring in local or foreign experts, sources close to the deal said. Similarly, Wakanow, founded by Obinna Ekezie and Ralph Tamuno, has also been taken over by a PE investor. In December 2018, Carlyle Group announced that it had agreed to invest $40 million in Wakanow. com Limited, one of Africa’s largest online travel agencies. In an interview with BusinessDay, Ekezie and Tamuno said the investment facilitated by Platform Capital went awry because the investor and Platform Capital had an ulterior motive to hijack the company and signed a merger deal with Travelstart, a competitor, without the consent of the founders. “At a point, they went after Platform Capital legally on this issue and other malpractices. Carlyle then brought in a new CEO, and took over the company,” Ekezie alleged. He called on the government to revisit and establish policies to protect Nigerian entrepreneurs and provide alternative local equity funding options favourable to encourage economic growth. These are not the only firms involved. BusinessDay found that Imax and AIC, among many others, are also in this quagmire. The National Bureau of Statistics (NBS) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) said in a 2019 report that fewer than 2 million

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MSMEs had access to credit out of 41.5 million entities between 2013 and 2017. PwC Nigeria, in a new report, estimated the annual financial gap for Nigerian MSMEs at N617.3 billion. Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), told BusinessDay that there was a need for local founders to ensure that their terms of engagement with foreign investors were clear and unambiguous from the outset. “It should appropriately and adequately cover the interest of the promoter of the business. Perhaps, our domestic investors enter into these agreements in a hurry in the bid to grow their business,” he said. Yusuf suggested a review of the Nigeria Investment Promotion Commission (NIPC) Act of 1995, saying it was due for review to adequately protect indigenous investors. “It is 1995 legislation. It is too open ended and gives room for crowding out of indigenous investors. We should strike a balance between the quest for foreign investors and the protection of the interests of indigenous investors. This is not to diminish the importance of foreign investment, but there should be safeguards to protect indigenous players across sectors,” he suggested. Samuel Oyigbo, a commercial lawyer, advised that the two parties must insert clauses of what might happen in the future in the agreement in case of any breach. “If, for instance, you pledged to bring $50 million

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into the business in April 2020, but you ended up bringing $30 million by then, it still amounts to breach of agreement. In this case, if an earlier agreement was to have 50 percent stake with $50 million, it certainly means you would be entitled to 30 percent. But then, this has to be inserted in the agreement,” he said. An experienced Nigerian entrepreneur, who does not want her name in print, advised local founders to get serious minded advisors, who were entrepreneurial in thinking, not necessarily the big names. “We will need to develop our own PE and VC colonies, so that we can be relevant in scaling up our businesses. This is what India did and now the Egyptians and South Africans have copied it. Brazil has matured in doing the same thing. We cannot have N7 trillion in our pension funds and the local PEs and VCs are not able to access this money in a secured form to utilise for funding businesses locally. Why should a PE take a local founder all the way to Mauritius to tango, if the funds were available for them to access here and inject into the business?” she asked. However, ‘ Tokunboh Ishmael, managing partner, Alitheia Capital and chair of the Board of the African Private Equity and Venture Capital Association, cited examples with Tomato Jos, an agro processing company, Okra, a fintech Nigeria-based company that connects bank accounts to apps, among others, as successful PE cases.

Tuesday 29 September 2020

BUSINESS DAY

news

We are financially, Poverty alleviation: Government to economically stable - Lagos supply 2000 buses to cooperative societies HOPE MOSES-ASHIKE

AGOS State is economically and financially solid, according to the government on Monday. This is contrary to the publication by BudgIT, a public finance analyst, titled ‘Ability of States to Meet Monthly Recurrent Expenditure and Loan Repayment Obligations, 2019’, which the Governor Babajide Sanwo-Olu administration described as “misinformation”. A statement signed by Rabiu Olowo, commissioner for finance (Lagos State) said BudgIT has apologized for its error. Stating the facts, the statement said Lagos State continues to meet all its recurrent and loan service obligations and the information that was published in incorrect, inaccurate and a gross distortion of the actual facts The accurate information that ought to have been stated in the table published by BudgIT is provided below; as extracted from Lagos State’s published 2019 Audited Financial Statements; As indicated in Lagos State’s published Financial Statements (and as extracted above), the information in the table published by BudgIT should have correctly indicated a surplus of N89 billion (Eight-Nine Billion Naira). Lagos State Government continues to efficiently explore options in both the Financial and Capital Markets,

to extract optimal funding solutions, which will enhance the administration’s ability to deliver on the construction, renewal and improvement of the deficit in social and physical infrastructure for the benefit of Lagosians; who represent 10% of Nigeria’s population. In the year under review (2019), Lagos State restructured all existing internal loan facilities to 14% per annum, from between 18% and 20% per annum. These rates have even more recently been re-negotiated to circa 12% per annum. Lagos State is the only State that is not reliant on the allocation from the Federal Account Allocation Committee, with Internally Generated Revenues representing circa 72% of the State’s aggregate revenues to enable it address challenges faced by mega cities world over. As at August 2020, Lagos State’s Internal Revenue Service is doing 103% above budget, and well above 2019 figures, despite the COVID-19 pandemic which demonstrate the fiscal resilience of the Babajide Sanwo-Olu’s administration for a Greater Lagos. Lagos State is economically and financially viable and the Government of Lagos State continues to expand funding sources whilst also ensuring that prudence and sustainability are at the fore of all funding and expenditure decisions, the statement said.

James Kwen, Abuja

he Federal Government is working out the modalities to supply 2000 buses to cooperative societies in Nigeria as part of the efforts to lift 100 million Nigerians out of poverty. The scheme is being jointly carried out by the federal ministry of special duties and inter-governmental affairs, the federal ministry of agriculture and rural development (federal department

of cooperatives) and CFAO Motors. Speaking at inter-ministerial stakeholders meeting on the supply in Abuja on Monday, minister of special duties and inter-governmental affairs, George Akume said the move was to tackle poverty and create wealth using the platform of cooperative societies in the country. Akume explained that the distribution and deployment of 2000 buses (being the first tranche) would go a long way in creating and facilitating the environment for wealth

gun State government says it is now mandatory for all healthcare facilities in the state to adopt an environment-friendly waste management approach that will ensure waste segregation and disposal under the state‘s new waste management law. Ola Oresanya, special adviser to the state governor on waste management, who said this while addressing a virtual healthcare waste management meeting, said the new approach would end poor handling of healthcare wastes which harbour diseases and pose risks to health workers, patients, and the public. To make the new approach succeed, the Oresanya said the Ogun State Waste Management Authority (OGWAMA) through the instrumentality of the Waste Management Law 2020 would soon commence the immediate training of health workers on the new normal while accredited healthcare waste collectors will henceforth evacuate waste from healthcare facilities to prevent wastes

the fact that they are spread evenly along the length and breadth of the country and have a wider reach in terms of its membership. “Furthermore cooperatives societies are organised, regulated and offer crossguarantees within its membership and thus ensures that the important attributes of transparency and accountability, trust and social capital associated with cooperatives societies provides sufficient safeguards for the supply of these vehicles to its members”.

L-R: Wamkele Mene, secretary general, African Continental Free Trade Area (AFCFTA) , and Liman Victor Liman, acting director-general, Nigerian Office of Trade Negotiations, at the stakeholders brain storming session on African free trade pact in Lagos. Pic by Pius Okeosisi

Ogun mandates health facilities to adopt new approach to waste mgt PIB will make Nigeria an Josephine Okojie

creation and eventual acquisition and ownership of these vehicles by the members of the cooperative societies. “The approach we propose to adopt and undertake with the utilisation of cooperative societies as an outcome of this meeting sets it apart from but also complements the other measures being adopted by government to tackle and eradicate poverty. “The utilisation of the cooperative societies as the preferred platform for driving this initiative arises from

from these facilities going to general dumpsites as they are to be collected and treated especially according to national and international standard. To ease the evacuation, he urged the healthcare facility operators to henceforth separate their wastes into colour bins of Red for hazardous, Yellow for infectious, Brown for chemical, Black for general waste for easy identification of their potency and subsequent disposal. Speaking also, Tomi Coker, commissioner of health, said the healthcare sector would collaborate with the new waste approach for the safety of health workers, patients, and the public, adding that effective healthcare wastes management contributed to Ogun’s success of lowering the Covid- 19 curve. Oladayo Ogunlaja, chairman of the Nigeria Medical Association (NMA), Ogun chapter, pledged members’ support for the new initiative, while Kamil Kusimo, a private medical practitioner, said with adequate training, the new healthcare waste management approach would be a huge success. www.businessday.ng

investment hub - minister

…National Assembly threatens to throw it out if not clear

KAMARUDEEN OGUNDELE & JAMES KWEN, Abuja

he Petroleum Industry Bill (PIB) 2020 will attract large-scale foreign investments to Nigeria, if passed, Timipre Sylva, minister of state for petroleum, has said. Sylva explained that the bill contained reforms in the Petroleum Products Pricing and Regulatory Agency and Petroleum Equalisation Fund as well as commercialisation of the Nigerian National Petroleum Corporation (NNPC). According to Sylva, the bill proposes to develop the midstream sector. Sylva spoke on Monday when he appeared before the joint leadership of the National Assembly ahead of the presentation of the bill to the two chambers. This is as Senate president, Ahmed Lawan, who chaired the meeting, said the National Assembly would not hesitate to throw out the bill if not desirable to the interest of the masses. Lawan said, “By tomorrow

when the communication to the House and Senate will be read; when it will be before the two chambers... it is our desire we understand what is in the bill. “That is the focus of this meeting so that we first of all interact with you, so that we have first-hand information, understanding and idea. From there the interaction will continue at the level of the committees. “We want to see an oil industry that is properly regulated, that not only sustained the investment that we have but that attracts more investments, very competitive, and that all resources will be beneficial to all Nigerians. “The ninth assembly want a situation where we work with you to process the bill. We want to have a clear understanding of every available clause or provision so that we can both make history by providing a legislation that will make the industry more effective and efficient.

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Sanwo-Olu tasks real estate practitioners on int’l best practice Desmond Okon

agos State governor, Babajide Sanwo-Olu has urged real estate practitioners to adopt international best practice so as to enhance accessibility to housing and contribute to economic and social development. The governor made the call at a policy roundtable dialogue on international best practices on real estate regulations, an event organised by the state’s Real Estate Regulatory Authority. The event brought highprofile stakeholders together to discuss global standards in driving foreign investments in the sector. “Shelter is one of the three most important needs of humans. Real estate developers need to make housing easier and more accessible by building the kind of houses that target the different socio-economic classes,” he said. Like other sectors, the real estate industry is plagued by @Businessdayng

quacks and fraudsters and this is a challenge that the Lagos State Real Estate Regulatory Authority (LASRERA) is committed to solving and maintaining a cordial relationship with the practitioners in line with the world’s top global cities in terms of the property market. Through the launch of LASRERA’s portal, the agency seeks to make it easy for potential customers who are willing to either buy or sell property to do so from licensed real estate practitioners/property developers without any fear. The special adviser to the state governor on housing, Toke Benson-Awoyinka said that the event, as well as the launch of the portal, aim to eradicate all forms of quackery and fraudulent practices that are pervasive in the sector. She said there were over 15 million Nigerians living in the diaspora and who would want to invest in Nigeria’s real estate market, however, trust and safety in the sector has been an inhibiting factor.

Tuesday 29 September 2020

BUSINESS DAY

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Tuesday 29 September 2020

BUSINESS DAY

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Tuesday 29 September 2020

BUSINESS DAY

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Tuesday 29 September 2020

BUSINESS DAY

POLITICS & POLICY

Nigeria nears e-voting as INEC mulls full automation elections ...Manufacturers demonstrate electronic voting machines

ties of printed materials and a large number of ad hoc staff to administer the process. Yakubu said to do away with the manual process, INEC developed the specifications of the functions required of the machine and after extensive discussion and review, the Commission invited original manufacturers of EVMs around the world for a virtual or practical demonstration of the machines. According to him, “Over 40 companies that indicated interest will demonstrate to the Commission how their IT solutions meet our specifications. I wish to emphasise that this is only a demonstration that will enable the Commission to evaluate the available technology and where necessary fine tune our specifications before proceeding to the next stage which will involve the participation of stakeholders. Details of the next steps will be given at the end of the demonstrations. “The Commission is aware that Nigerians want us to deepen the use of technology in elections.

James Kwen, Abuja

ig e r ia i s m ov i ng closer to electronic voting which is adjudged to be a lasting solution to the challenges of electoral malpractices such as rigging and falsification of results that characterised all elections since the return to civil rule in 1999. The Independent National Electoral Commission (INEC) Monday took decisive step towards the full automation of the electoral process with the demonstration of Electronic Voting Machines (EVMs). INEC Chairman, Mahmood Yakubu while speaking at the demonstration of the EVMs in Abuja said the Commission has been working on the deployment of technology in voting during elections to replace the current manual system which is tedious and requires enormous logistics to deliver huge quanti-

Mahmood Yakubu

Nigeria @60: I am sad over dwindling economy, rising unemployment rate, insecurity – Odigie-Oyegun Idris Umar Momoh & Churchill Okoro, Benin

s Nigeria celebrates 60 years of nationhood on Thursday, October 1, the former National chairman of the All Progressives Congress (APC), John Odigie-Oyegun has expressed dissatisfaction over the state of declining economic activity, alarming rate of unemployment and spate of insecurity in the country. Odigie-Oyegun, who was the former governor of Edo State, made the remarks on Monday while speaking with newsmen in Benin City. He noted that successive governments have not been able to convey the message to keep hope alive in spite of numerous challenges bedeviling the country. He however, assured that despite the unfortunate happenings across the nation, a solid foundation has been laid for the country to grow vigorously. According to him, the only missing link is that those at the helm of affairs are not doing enough in explaining things to the people and giving them hope that tomorrow will be better. “60 is tough but I have hope that if we can contain the difficulties that beset us, particularly insecurity, then, this country still has a bright future “Things have been tough. What

Kogi LG election: SDP rolls out guideline, schedule of activities VICTORIA NNAKAIKE, Lokoja

I can say confidently is that the basic foundation of our future growth has been laid, no question in my mind about that but the administration has not been lucky at all. “We have had a very tough period of dwindling resources right from the beginning of this administration and I think but for careful management, we probably would not have gotten as far as we have today. “There is hunger in the land, economy is not growing as it should, unemployment is very high, terrorism has raised its ugly head again after initial success and controlling it; cost of production of crude oil now is almost equating what we are getting from selling crude oil. So, the resources are just not there,” Odigie-Oyegun said. “We prayed that Covid-9, which has played also a very major role, will be contained and put out of the way because it has also created major economic problems, massive diversion of resources to protecting the lives of Nigerians,” he added. On the state of the resurgence of attacks by hoodlums, OdigieOyegun alleged that there could be external forces that do not mean well for the survival of the nation, adding that such people should be investigated and prosecuted. Every October 1 marks Nigeria’s Independence from British rule, and this year’s Independence Day is the country’s 60th anniversary. www.businessday.ng

Let me reassure Nigerians that the Commission is committed to expediting the process leading to the deployment of EVMs in elections in earnest”. The INEC Chairman stated that over the years the Commission has been automating the critical pillars of the process such as continuous updating of biometric register of voters and use of the Smart Card Reader (SCR) which have revolutionised the accreditation of voters during elections. Yakubu said: “More recently, the introduction of a number of portals has facilitated the seamless nomination of candidates for elective offices by political parties as well as the accreditation of observers and the media. “Most significantly, the Commission now uploads polling unit level results in real-time on Election Day to a portal for public view. These are significant innovations that have deepened the transparency and credibility of elections and the electoral process in Nigeria”.

he Social Democratic Party (SDP) leadership in Kogi State has released guidelines and schedule of activities for its participation in the forth-coming Local Government election come December 12, 2020. According to the statement issued by the Publicity Secretary of the party, Jethro Olusegun Solo-

mon the cost of the nomination form for chairmen is N100,000, in addition to N20,000 intent fee, while that of the councillors is N20,000, with an intent fee of N10,000, adding that the nomination form for Women is free. The statement equally stated that the Collection of nomination forms would commence from September 28, 2020 and ends on October 9, 2020, adding that the conduct of primaries and resolution of disputes from various lo-

cal government areas would be between Monday, October 12 to Friday, October 16, 2020, while October 17, 2020, would be the last day for the submission of forms at the SIEC headquarters in Lokoja. He also added that verification and documentation would commence on October 22 and ends on October 30, 2020, while the campaign will kick start on October 4, 2020 and publication of the list of candidates will also come up on the same day.

We need Ondo to believe in free, fair election - PDP KAMARUDEEN OGUNDELE, Abuja

he People’s Democratic Party (PDP) has said it was still not convinced that President Muhammadu Buhari administration was committed to a free and fair election, despite winning the Edo governorship election. Governor Godwin Obaseki of the PDP had defeated Osagie Ize-Iyamu, the candidate of the president’s party, the All Progressives Congress (APC) in the September 19 election. Buhari, during Obaseki’s courtesy visit, had expressed his commitment to free and fair elections, describing it as “the bedrock of true democratic order.” According to him, “Democracy will mean nothing if the votes of the people don’t count or if their mandate is fraudulently tampered with.” But the opposition party maintained that Ondo governorship election would confirm the President’s

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commitment and not the concluded Edo election. In an exclusive interview with our correspondent on Sunday, the PDP National Publicity Secretary, Kola Ologbondiyan said Nigerians would only take the President seriously if followed by the federal agencies in the Ondo election. “The commitment of the President to a free and fair election will be dependent on the outcome of the Ondo governorship election. That will also determine the sincerity of the statement he made during the visit of Governor Godwin Obaseki. “That will determine his commitment to his statements that he is the president of all Nigerians. That the political parties and candidates should go and seek the votes of the electorate, and that the candidate with the support of the people should win the election.” Ologbondiyan said the PDP was sure of victory if there was no rigging and manipulation by the Independ@Businessdayng

ent National Electoral Commission and the security agencies. “From what the President Muhammadu Buhari said, if he would not go back on his words and he would not give instructions to the police and other security agencies and that he would not compel INEC to manipulate the election, then it is certain that we are coasting home to victory. “As Nigerians know today, the APC has not done well either at federal or state level. Nigerians have become distraught with this government and it is even worse in Ondo State where Governor (Rotimi) Akeredolu for the past four years have engaged in a self-serving administration. The people are at the receiving end of pain, suffering and hunger. ‘For us to confirm this, it is the Ondo election that will prove that because that is the next election. So what he does in Edo and Ondo will determine the faith Nigerians will have in the electoral process.”

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BUSINESS DAY Tuesday 29 September 2020 www.businessday.ng

Elumelu: The Banker who made Time Magazine list of 100 Most Influential People DIPO OLADEHINDE

or many years now, Africa has relied on its public sectors for wealth creation and economic prosperity. As a result of that misplaced trust, the hold poverty has on the continent has become stronger with the rising population, crises, corrupt government practices and mismanagement of human and natural resources. In Sub-Saharan Africa, a lot of people are born with access to very little resources to survive on their own in the harsh economic climate. With no wealthy background and connections, they struggle through life believing that there are no ways out from constant hardship and suffering. That mentality has held many captive and will continue to do so without a change. Tony Elumelu’s success story is a beacon of hope to those who feel incapable of ridding themselves of the shackles of poverty. It is an inspirational account of how a man who started with nothing became one of Time magazine’s 100 most influential people list for 2020. The list released Tuesday is a compilation of 100 people from different walks of life who are making an impact on business, art, sport, music and more across the world. Final names were selected by Time editors, with recommendations from the magazine’s international staff and Time 100 alumni. Even as the pandemic inflicts a devastating toll on the global economy, United Bank for Africa (UBA) Group Chairman Tony Elumelu insists that now is the time to invest in countries in Africa. “Africa is a land of opportunity. Challenges exist in Africa, but we also have a huge return on investment,” Elumelu said during a TIME 100 Talks discussion with contributor Kim Dozier. “There’s no better time to make that bet than the time we live in.” As the coronavirus pandemic sweeps across the globe, killing hundreds of thousands of people and wreaking economic disruption, the idea of making a big investment may seem brazen. Countries in Africa face particularly gruelling

Tony Elumelu obstacles as COVID-19 cases across the continent continue to surge, locusts’ swarms in east Africa threaten food security and the African Development Bank warns of a looming recession due to the pandemic. But while some may see investing now as a gamble, Elumelu, a Nigerian multimillionaire, knows how rewarding taking a bold risk can be. In 1997, Elumelu led a small group of investors to take over a small, financially distressed commercial bank. Just a few years later, the bank became a top-five financial servicer in Nigeria and would eventually merge with UBA, according to Forbes. After establishing the Tony Elumelu Foundation (TEF), Elumelu then used his earnings to make a bold pledge to commit $100 million to 10,000 African entrepreneurs in 10 years in 2014, starting a Pan-African entrepreneur mentorship and training program. Now, in spite of COVID-19, the 57-year-old is pitching investors to put their bets on Africa’s economy.

“Today there’s more market stability than ever before and there’s a willingness and realization by African leaders that capital will come to where it’s welcome. So, they’re trying to make an

‘‘

Africa is a land of opportunity. Challenges exist in Africa, but we also have a huge return on investment

enabling environment in their markets and in their countries to attract foreign investments,” Elumelu told Time Magazine. Elumelu encouraged using the time at home to think outside the box—a message he’s telling the nearly 9,000 African entrepreneurs in his TEF Entrepreneurship Programme. “Necessity is the mother of invention—we need to innovate. We need to keep thinking,” Elumelu said. Elumelu also noted that the pandemic has incidentally elevated some economic opportunities on the continent: quarantining and social distancing has catalyzed booming business online. “In the banking business, there’s a whole transformation of banking heightened by COVID-19. Now you have less than 15% of our over 20 million bank customers across Africa transacting in the bank,” Elumelu explained. “Most of them are transacting online, which is about 85% of 20 million customers—that’s significant.” While the odds may not appear to be in favor of Af-

rican countries—and many countries hard-hit by the coronavirus—Elumelu insists that giving people hope can make all the difference in emerging from the economic dredge of the pandemic. “The difference is having economic hope, the difference is always thinking positive and knowing that tomorrow will be better than today,” Elumelu said. “Don’t let your economic aspirations die with COVID.” Tony Elumelu graduated with a Bachelor’s degree in Economics from the Ambrose Alli University, Ekpoma, and went on to get a Master’s degree in Economics at the University of Lagos, Nigeria. Later on in life, he furthered his education with a degree in Advanced Management at Harvard Business School, USA. He founded Heirs Holdings, a pan-African investment company with interests in energy, agribusiness, finance, hospitality, healthcare, and real estate. A natural economist, Elumelu has always believed that long-term investments in these particular sectors of the economy spreads wealth within a community and ensures a stable and prosperous economy. Tony Elumelu’s success would not be complete without mentioning his enormous impact in Nigeria and Africa. His foundation, The Tony Elumelu Foundation (TEF), was established in 2010 and is totally committed to breathing life into Africa’s economy by providing business training and monetary aid to entrepreneurs. His vision centres on the belief in Africapitalism—Africa’s economic progress through the empowerment of its private sectors. TEF operations have not only aided in the establishment of businesses but has also indirectly and directly created hundreds of job opportunities in Africa. The organization plans to spend 100 million dollars over the next decade to ensure that unique, impactful business ideas become actual businesses and that the continent takes a laudable step forward in the global economy. This foundation is an embodiment of Tony Elumelu’s vision and passion for Africa’s growth. His dedication to this cause has successfully and positively affected the African community.

Toni Elumelu’s achievements and impact have earned him numerous awards and recognition in Nigeria and Africa. He was granted the title of Member of the Order of the Federal Republic by the Federal Government of Nigeria in 2003. He was then voted in as African business leader of the year by the African Investor magazine back in 2006 and then in 2008 was named the African Banker of the year by the African Banker magazine. Another great honour was accrued when former president Umaru Musa Yar’Adua asked him to serve on the presidential committee on Global Finances in 2009. Elumelu’s impact on the private sector and economy earned him the National Honour of Commander of the Order of the Niger (CON) in 2012. Other recognitions in 2012 include; recognition as one of Africa’s 20 Most Powerful People by Forbes magazine, featuring in New African magazine list of the ‘100 Most Influential Africans in Business’, and two honorary degrees from the University of Nigeria, Nsukka and Benue State University, Nigeria. In 2013, he was awarded the Leadership Award in Business and Philosophy by the Africa-America awards and presented the African Icon Award at the 2013 African Business Awards. The renowned ESI-Africa dubbed Tony Elumelu as one of ‘ESI-Africa Most Influential Figures in African Power’ in 2015 and then in 2016, he was conferred a Lifetime Achievement Award at the 5th edition of the annual economic forum of the National Council of Employers, General Confederation of Enterprises of Cote d’Ivoire, and he’s also garnered much more awards and recognitions. Tony Elumelu, through discipline, hard work and persistence built a career and empire that stretches throughout Africa and its different economic sectors. Today, he is a global businessman worth about $1.4 billion and a mentor/ model to aspiring entrepreneurs. He is a clear example of how the past does not determine the future and that entrepreneurial success can be achieved with courage, persistence, hard work and discipline.

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