BusinessDay 30 Nov 2018 by BusinessDay

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ack in 2012, Nigerians could afford to buy new cars at N4 million each. Six years after, prices of new cars have shot up to N20 million per car on the average, pricing out the middleclass who often make up a large

Rivers set to jail tax offenders, hopes to boost IGR with new easy platform P. 4

NGUS FEB 27 2019 365.25

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-0.25 13.41

10 Y 0.06

20 Y 0.03

15.08

15.89

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NGUS MAY 29 2019 365.70

NGUS NOV 27 2019 366.60

dented’ vehicles officially enjoy a rebate of 30 percent. What this has done is to encourage the importation of rickety vehicles, which make up 70 percent of imported cars today. The age of most imported used cars in Nigeria is 15 years, whereas that of Algeria, Angola, Chad, Mauritius and Seychelles is three, according to a research

done by PwC, presented by Andrew Nevin, partner and chief economist at PwC Nigeria in Lagos. “Imported used car segment (Tokunboh) dominates the industry, accounting for 74 percent of all vehicle imports, making Nigeria the largest market for

Age Restrictions on Imported Used Vehicles 15 15

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Nigeria has become the world’s graveyard for dead vehicles because of policy failure which has ensured the decimation of the country’s middle class Source: PwC

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Naira falls to N370/$ in parallel market on sliding oil prices P. 2

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“Restructuring Nigeria is a task that must be done”

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percentage of buyers. The reason for prohibitive prices of new cars can be found in the 2013 National Automotive Policy which, first, imposed 35 percent levy and 35 percent duty on imported vehicles, amounting to a total of 70 percent. Even with 70 percent fees paid on imported vehicles, importers of damaged or ‘acci-

New Vehicle Sales, 2017

Continues on page 35

Olu Fasan on Monday

Currency Futures

Nigeria’s jinxed Auto Industry and why its is going nowhere Continues on page 35

181,001

he People’s Democratic Party (PDP) has called on the Chairman of the Independent National Electoral Commission (INEC), Mahmood Yakubu and the Inspector General of Police, Ibrahim Idris to resign their positions ahead of the 2019 General Elections. The party accused the two public officials of partisanship in favour of the governing All Progressives Congress (APC). PDP National Chairman, Uche Secondus, made the party’s positions known on Thursday while giving his opening

OWEDE AGBAJILEKE, Abuja

I&E FX Window CBN Official Rate

Spot ($/N)

Why Nigeria’s auto industry is going nowhere B

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... Atiku asks Buhari to sign Electoral Act

555,716

2019: PDP seeks resignation of INEC chair, IGP

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NEWS YOU CAN TRUST I **FRIDAY 30 NOVEMBER 2018 I VOL. 15, NO 193 I N300

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2 BUSINESS DAY NEWS

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Friday 30 November 2018

Naira falls to N370/$ in parallel market on sliding oil prices DIPO OLADEHINDE & BUNMI BAILEY

T L-R: Dalu Ajene, executive director/head of investment banking, RMB Nigeria; Jumoke Ogundare, group CEO, ARM; Nerina Visser, EFT strategist/advisor, EtfSA; Thapelo Tsheole, CEO, Bostwana Stock Exchange, and Haruna Jalo-Waziri, CEO, CSCS, during the 22nd African Securities Exchanges Association (ASEA) conference in Lagos.

Nigeria’s LNG misstep is rest of Africa’s gain as market share to shrink to 10% by 2029 ... Mozambique to take over 50% of Africa’s market share ... IOCs explore gas opportunities in Mauritania, Senegal, Gambia, Namibia, Egypt DIPO OLADEHINDE

ith several Liquefied Natural Gas (LNG) projects in the country stuck over the past few years amid vast untapped gas reserves, Nigeria is losing its competitive advantage in Africa’s LNG market as other Africa countries are with relative low reserves looks set to overtake Nigeria. According to data from a Norway based independent energy research and business intelligence institution Rystad Energy; in Africa’s market share, Nigeria’s LNG produc-

tion will shrink to about 10 percent by 2029 from having a huge junk of about 50 percent in 2019, while another African country Mozambique will by 2029 dominate the market share with at least 55 percent from zero in 2019. Although, data from the Norwegian based research institute showed Africa’s production capacity is almost expected to double over the next decade, however the data also revealed North Africa and the Middle East which include Djibouti, Egypt, Libya and Algeria are also expected to miss out in the market share from 50 percent in 2010 to less than 10 percent in 2019. Ayodele Oni, energy part-

ner at Bloomfield Law practice said the major problem facing the NLNG sector is its problematic fiscal regime and its unspecific laws which will always distract deep- pocket investors from coming into the country. Oni said competition is growing across Africa and other countries are stepping up activities in their gas sector unlike Nigeria which has enjoyed the benefit from the oil and gas sector for a long time and seems to be relaxed. “Nigeria has more gas than oil so we should leverage on our gas resources and continue to put structures in place to encourage deep pockets investors to invest in Nigeria,”

Oni told BusinessDay. Leading consulting firm PricewaterhouseCoopers (PwC) in its Africa oil and gas report said poor infrastructure and an uncertain regulatory framework were the top two challenges identified by new emerging players and markets especially in Uganda, Ghana, Tanzania, Nigeria and Kenya. “The Nigerian Government has been in the process of implementing the Petroleum Industry Bill (PIB) since 2006 and it has been estimated that uncertainty around it has cost the country $50 billion in capital projects,” PwC noted in its report.

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Stocks drop to 18-month low as bears out-muscle market bulls ... year-to-date return now -20%, worst selloff since 2011 ... Falling crude prices pull global equities lower IFEANYI JOHN

he Nigerian Stock Exchange All Share Index yesterday fell to its lowest point since May last year as continued negative sentiment in the stock market pulled stock prices lower. At market close yesterday, the broad index fell 1.33 percent, settling at 30,611 points, its lowest level in the last 18 months. Analysts told BusinessDay that the selloff could be attributed to the recent slide in crude oil price which declined from $86 per barrel in October 3 to $57 yesterday. “Nigeria is heavily reliant on crude oil for export earnings. Oil exports account for around 90 percent of exports which causes its foreign external reserves to be almost as volatile as crude oil prices. Reserves have fallen

by $2 billion since crude oil began to decline from its year high in early October. Foreign investors know dollars become scarce in the country during oil price meltdowns as such, this may explain the persistent stock market selloff that we are witnessing in the country today. Even in US stock prices have been on decline so the problem isn’t just local,” said Maju Eldad, lecturer in Economics department at Federal University of Kashere, Gombe State. The Dow Jones Industrial Average in US has lost around 1,500 points since October 3 when crude prices began to decline. The S&P 500 in US has returned -6.2 percent while the Nikkei 225 index in Japan has returned -7.6 percent during the same period. The FTSE 100 in England and MSCI World Index have also shed around

6 percent and 8.1 percent respectively since October 3 showing the strong impact dwindling crude oil prices is having on stock market performance around the world. Falling oil prices has done Nigeria no favor, pouring flames to fire in what has been a yearlong selloff anchored on fears of election risk, rising insecurity and political uncertainty. Year to date performance for theNSEASIindexdeclinedto20 percent, making 2018 the worst year for stocks since 2011 when the index fell by 23 percent. Analysts are now forecasting that with elections now two months away, we could see another bout of selloffs in December which could easily make 2018 the worst year for stocks since 2008. “The stock market will likely

fall below the 30,000 mark in December, but we expect to see a rally in stocks after the election regardless of who wins. A conclusive election result and a non-controversial handover of power if the incumbent loses the election will be a big boost to investors’ confidence,” Eldad concluded. Among the top gainers yesterday by index weight, Access bank returned 7.14 percent while Nigerian Breweries and Forte oil rallied 0.51 percent and 1.73 percent respectively. Among the biggest losers by index weight, Dangote Cement and Guaranty Trust Bank declined 2.63 percent and 3.65 percent respectively. Other big losers were Cadbury which fell by 5 percent, WAPCO which returned -2.25 percent and UBA which declined 4.08 percent.

he outlook for naira dimmed yesterday as analysts anticipate pressure on the local currency in the medium term due to falling oil prices amid sustained demand for U.S. dollars by end users. Naira eased one percent to 370 per dollar on the black market on Thursday, traders said, citing a shortage of dollars. The price of crude oil (Bonny Light) dropped by 7.76 percent to $59.19/barrel yesterday from as high as $86.29/barrel in October 2018, according to Bloomberg data. “I think the pressure is linked to the oil price outlook because the moderation of oil prices is an indication of reduced Foreign Exchange (FX) inflow for Nigeria in terms of export earnings and that will have further negative impact on FX reserves,” Ibrahim Tajudeen, Head of Research,

Chapel Hill Denham, said. Lukman Otunuga, a research analyst with ForexTimes Nigeria said that the Naira may struggle to reap the full benefits of a weakening dollar due to heavily depressed oil prices. “With oil prices sinking to a fresh yearly low, this not only impacts government revenues, but economic growth and the nation’s ability to enact the 2019 budget which pegged the Oil price at $60 per barrel,” Otunuga said by mail. The research analyst at Forex Times Nigeria noted if falling reserves result in the CBN being unable to defend the Naira, it will weigh heavily on the local currency. Johnson Chukwu, CEO at Cowry Asset Management Limited supported the view that the drop in crude oil price is having a negative impact on the naira.

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Nigeria leads 5G conversation ahead of sub-Saharan Africa

…confirms availability of Spectrum to roll out limited services by 2020 JUMOKE AKIYODE-LAWANSON

igeria is in preparatory mode for roll out of 5G services by the official global launch date of 2020, pushing the broadband revolution by modernizing regulation and policy reforms to boost the country’s digital economy and accelerate internet access for millions through increased mobile broadband penetration. Akinwale Goodluck, Head of Sub-Saharan Africa, Global System Mobile Association (GSMA) said that it was necessary to start planning for 5G broadband connectivity in Nigeria, as the country has

always been at the fore front of development and telecommunications regulations in Nigeria are recommended to other regulators in SubSaharan Africa. “For Nigeria to take full advantage of the next phase of its digital transformation, it is vital that collaboration between industry and government enables the right policy environment for millions more to benefit from ultra-fast mobile broadband. If policies don’t keep pace with the needs of society and technological innovation, there is a risk that citizens will be left behind and productivity and competitive-

Continues on page 35

Friday 30 November 2018

BUSINESS DAY

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Collapsed building in PH claims first casualty in government IGNATIUS CHUKWU

… as Urban commissioner resigns

he Rivers State Commissioner for Urban Planning and Physical Development, Reason Onya, has resigned from the Nyesom Wike government over the collapsed building tragedy, even as a probe panel is yet to start work. Many had expected purges since Friday last week when the building crashed with about 200 persons trapped beneath. Indications that heads may roll emerged when Wike lashed out at the weekend, saying no government official implicated in the crash would be spared. He hinted of dereliction of duty when he said the blueprint of the area alone did not permit buildings of such height in the area, showing that approval processes may have been breached. He said a panel would swing into action, but at the very next Executive Council meeting, a commissioner lost his job. Since the rash of col-

lapse of buildings in the Peter Odili days, the state government tightened its building approval processes especially on multi-floor buildings. It was alleged in those days that officials and builders often collaborated to approve one thing on paper but build another thing on the land, thus confusing investigators. Those matters were said to have been cleaned out over the years as no single building crashed during the eight years that followed Odili administration. Now, buildings have started crashing again and such discrepancies have reared their ugly heads once again. Addressing journalists after the state exco meeting on Wednesday, Rivers State Commissioner for Information and Communication, Emma Okah, said that the resolution was to ensure unfettered investigations. He said that the investigation into the collapse of the 7-storey building would be carried out

by the Judicial Commission of Inquiry to be established by the Rivers State Government. He noted that the state government will continue with the ongoing rescue mission at the site of the collapsed 7-storey building. Meanwhile, relations of some of the trapped victims have accused the state government of not doing much in rescue efforts, saying the equipment used were not effective and that the government was saying things that were not true. A person who gave his name as Chi Ihionu (PhD) said: “Please know that government officials ‘on ground’ at the above mentioned site are intentionally feeding the public wrong information to mask their incompetence. My cousin Ihionu Ekene Morgan is still trapped in this building. My family (as most families of the victims) has been at the site since Friday evening. No serious effort has been made to rescue the victims.

The first four victims were evacuated via mob actions, manually using sledge hammers on Saturday. Out of these four victims, one person came out unscathed, one dead, two unconscious (one eventually died en route the hospital) and by Saturday evening, two more were retrieved dead. The figures being claimed by the officials as rescued, though highly exaggerated, were passersby injured by shrapnel when the building collapsed at about 4.35pm on Friday 23rd Nov. 2018. Other than these six victims, no other person has been retrieved dead or alive.” The information boss (Emma Okah), in his reaction, said: “It’s absolutely an unfair and insensitive comment. I have been involved in the rescue operations from the beginning of this unfortunate incident. The Gov gave a marching order even from abroad that no cost or effort should be spared to get everyone out.

Friday 30 November 2018

Edo calls for review of CBN monetary policy to commercial banks IDRIS UMAR MOMOH, Benin

do State government says the monetary policy of Central of Bank of Nigeria (CBN) has negatively affected the commercial bank’s interest rates to Small and Medium Enterprises (SMEs). Emmanuel Usoh, Edo State commissioner for wealth creation, cooperatives and employment, made the call at the 17th Micro, Small and Medium Enterprises (MSMEs) International Summit and Exhibition organised by the Nigerian Association of Small and Medium Enterprises (NASME) in Benin City. Usoh, who said the apex bank’s monetary policy still pegged interest rates between 20 percent and 25 percent for commercial banks, noted that the high interest rates had made it difficult for SMEs to have access to loan. “The monetary policy of the CBN is not cascading down to commercial banks where interest rates still range between 20 percent and 25 percent for commercial banks,” he said. He also noted that the commercial banks interest rates were laced with cumbersome collateral facilities, which had not helped the growth of small businesses in the country. He also listed other challenges inhibiting the growth of SMEs in the country to include corruption, huge infrastructural deficits, and lack

of capacity building for small business owner, institutional and public reforms. When there are adequate institutional and infrastructural reforms enabling environment would have been created for small businesses to thrive, he said. Earlier, Degun Agboade, president, NASME, said the summit was the association’s modest contribution to the economic reforms being presently pursued by the Federal Government. Agboade said the summit was geared towards focusing on critical policy issues expected to crystallise into the much awaited economic diversification agenda of the Federal Government. He said the Federal Government economic agenda were to resuscitate the manufacturing sector of the economy by refocusing on areas of comparative advantage in agriculture and mineral resources to sustain real growth and development of the economy. In his remark, the managing director of Nigeria Social Insurance Trust Fund (NSITF), Adebayo Somefun, represented by Stephen Bathana, general manager, noted that SMEs were a key driving force in the nation’s economy. Somefun said as part of its mandate of creating an enabling environment for small businesses to thrive, workers of over 22,000 establishments had been paid compensation since its establishment.

President’s induction dinner/ induction ceremony holds

S L-R: Daniel Adedokun, head of Geocycle, Lafarge Africa plc; Yemisi Elegbeleye, deputy general manager, HSEQ Total Exploration and Production Nigeria and Conference Planning Committee, and Obanewa Oladipo, assistant director, Asset Safety and Mitigation National Oil Spill Detection and Response Agency, at the 18th Health, Safety & Environment International Biennial Conference on the Oil & Gas Industry in Nigeria held in Lagos.

Rivers set to jail tax offenders, hopes to boost IGR with new easy platform IGNATIUS CHUKWU

ivers State government is looking to boost its revenue generation effort by making tax payment easy and friendly, but says defaulters would have to go to jail. The government also says it is set to confiscate property of defaulters and that information is available to nail those who submit false reports to pay very low taxes. The position of the government was made clear Thursday morning by the executive chairman of the Rivers Internal Revenue Service (RIRS), Adoage Norteh. The chairman made it

clear that no one in Rivers State would escape tax payment from January 2019, saying all information needed to collect taxes from everyone and every firm had been polled in. He said human face would be the approach but that those who would still not clear all matters within the remaining part of 2018 would see a new tax collection approach that would be efficient and would spare no one. He said: “Life will be made most easy for tax payers in Rivers State, and this state would be a model in tax collection. We want to continually improve on the system.” One of the innovations, he revealed, is that tax-

payers would now print receipts themselves after payment. He made it clear that the receipt was no big deal because when it was submitted for processing, it would be thoroughly verified. He referred payers to the Rivers State Tax Management (RIVTAM) system that allowed companies to file annual reports without human contact with officials of the RIRS. He also said his office was there all the time to clear any doubts. The new method, he said, is for firms and persons to file what they had while the RIRS officials will crosscheck; any discrepancies would be ironed out. It is when firms and persons

refuse to use the window that they would see the hard face of the taxman. Norteh said the new process was efficient enough to capture almost payer, hoping that the IGR status of the state would move upwards. Imprisonment is part of the raw deal awaiting stubborn defaulters while property of persons may be impounded and handed over to the state government. The chairman said different tools have been earmarked for different sectors of the state. For instance, he said those who send over three children to Ivy schools at over N1.5m per child and turn round to file an annual income of about N2m would have explain it.

ociety for Corporate Governance Nigeria (SCGN), a nonprofit organisation, has continued to deploy its resources to enhance knowledge of corporate governance best practices and ethics in Nigeria. It does this through research and publications on the subject of corporate governance, intensive learning programmes, advocacy, conferences, seminars and breakfast meetings for board chairmen, directors, company secretaries and top management across sectors. Recently, the Society, while rounding off its activities for the year, hosted the 2018 edition of the president’s dinner/induction ceremony in Lagos. Pascal Dozie, president of the Society, who chaired the event, welcomed Fellows, members of the SCGN, guests and sponsors present. At the ceremony, distinguished and deserving Nigerians were conferred with Fellowship of the Society and they were:

Muhammad K. Ahmad, chairman, FRCH Technical Committee of the Nigerian Code of Corporate Governance; Peter Bamkole, director, Enterprise Development Centre of the Pan-Atlantic University, and Bello Maccido, director, Development Bank of Nigeria. In addition, 27 individual members and three corporate organisations were inducted into the SCGN as new members. Subsequently, the 18th edition Vol.2 of the Journal of Corporate Governance was unveiled by Folake Solanke, first female senior advocate of Nigeria, assisted by directors of the Society. The vote of thanks was given by Tijjani Borodo, a director/Fellow of the Society, who acknowledged the support of the sponsors of the event and everyone present. The SCGN is the foremost institution committed to the continued development of good corporate governance practices in Nigeria.

Friday 30 November 2018

BUSINESS DAY

6 BUSINESS DAY NEWS

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Maximum lending rate declines on low government domestic borrowing MICHEAL ANI

he average maximum interest rate charged by banks for lending to customers with low credit ratings has fallen as the government pulled back on its borrowing from the domestic market, analysts have said. As of Q3 2018, the average rate charged by deposit money banks stood at 30.95 percent, representing a decline of 0.66 percent, from the 31.61 percent when it peaked (the highest in three years) in Q1 2018, according to data from the Central Bank of Nigeria. The new rate also represents a 0.48 percent decline from the average figure that was reported in the previous quarter. Similarly, the average prime lending rate or the rate that banks charge their most credit-worthy custom-

ers, stood at 16.70 percent, its lowest level since Q3 2016, when Nigeria was in a recession. Analysts attribute this decline to the government’s decision to explore offshore debt markets for funds to free up local capital for real sector players to borrow. “The prime and maximum lending rates might be declining because, compared to the aggressive monetary policy tightening cycle that we saw in 2016 by the CBN, rates have actually eased significantly over the past one year at first,” said Omotola Abimbola, a fixedincome and currency research specialist at Ecobank.’ He said this was because the Federal Government was borrowing less from the domestic market earlier in the year when they refinanced their short term obligation with Eurobond then later on, the CBN deliber-

ately bringing down OMO clearing rates so we have gone from the one -year yields of 23 percent in 2016 and early 2017 to a one-year yield of 16.2 percent today.” Gregory Kronsten, head, macroeconomic and fixed income research at FBNQuest Capital in an emailed response, noted there was a “small fall for prime in the latest data.” He said however that statistically these are averages and probably not a large sample (since not many customers get loans on the prime rate). “So I would not read too much into the data,” Kronsten said. Members of the Monetary Policy Committee at its 264th meeting and the last for the year recently, all voted unanimously to hold the bench mark rate at 14 percent for the 14th consecutive time since July 2016.

ASEA generates $1.2m grants to drive efficient African exchanges BALA AUGIE

frican Securities Exchanges Association (ASEA) strategic relationship with exchanges across the globe has yielded fruit as it generated $1.20 million in grants in one year from Financial Sector Deepening (FSD) Africa and the KoreaAfrica Economic Cooperation (KOAFEC) fund via the Africa Development Bank (AfDB). This was made known by Oscar Onyema, outgoing president of the ASEA and CEO of the Nigerian Stock Exchange (NSE), at the signing of memorandum of understanding (MoU) by the 28-member countries on Tuesday, at the 22nd ASEA Conference hosted by NSE in Lagos. Speaking at the ASEA conference, with the theme: Champions on the Rise: Africa’s Ascension to a More Sustainable Future, Onyema said, “The grants received to

date are targeted at the African Exchanges Linkage Project (AELP), ASEA secondment program, information portal and annual conferences. These programmes are critical levers of success for ASEA and we aim to continue to broaden and deepen our relationships in order to create increasing value for members and the African financial market.” Onyema, who has been the president of the 28 African exchanges, representing 32 countries, for the past four years, said a key win was the association’s “success in elevating the profile of ASEA on the global stage and the expansion of our portfolio of strategic relationships and alliances.” Expressing confidence in the new leadership, he said, “I feel proud and honoured to have been able to lead ASEA, and I trust that it will continue to flourish under the astute leadership of the newly elected president and

executive committee. “The strategy is designed to position ASEA as the authoritative source of information on African exchanges and as such, we recently remodelled the statistics portal of our website in order to present quality statistics in insightful ways. “I encourage you to keep abreast of interesting developments in African exchanges using this resource. Other goals the strategy aims to achieve include intensifying the association’s advocacy and capacity building functions.” Declaring the 2018 ASEA conference open, Vice President Yemi Osinbajo stated that the Federal Government was working with AfDB to establish a $500-million innovation fund for technological growth. Adding that the fund was aimed at increasing the competitiveness of Nigeria’s Information and Communications Technology (ICT) industry.

10-year master plan: SEC reiterates commitment to developing capital market IHEANYI NWACHUKWU

ecurities and Exchange Commission (SEC) has reaffirmed its commitments to developing the capital market in line with the 10-Year Master Plan. Mary Uduk, acting director-general, SEC, disclosed this during the SEC Journalists Academy holding in Uyo, Akwa Ibom State, with the theme, “Capital Market Master Plan: The Journey So Far.” Uduk noted that as a result of the market crash in 2008, investors had lost confidence and were yet to return, but pointed out that the Commission with 101 initiatives had the potential to expedite the implementation of the 10-

year master plan. The SEC director-general noted that the market was highly concentrated and dominated by the banking sector, which constituted 60 percent as of 2003 to 2007. According to Uduk, 15 out of 20 most capitalised companies are banks, adding that risk management and corporate governance are not developed enough to support the fast growth, thereby leading to inappropriate market behaviour and abuse of margin lending. She revealed that the Commission had focused on leading the market to recovery, and part of the recovery plan was the development of the 10-Year Nigerian Capital

Market Master Plan (20152025) in collaboration with other stakeholders to map out strategies to improve key areas, especially investor protection and education, among others. She explained that SEC aims to expand capital market’s role in nation’s economy development in general. Explaining so far on the success achieved, the acting DG said, “For instance, we have ensured that all share certificates are fully dematerialized. This is to say that physical share certificates are now fully converted into electronic form in Nigeria. This initiative has further enhanced the market efficiency and transparency.

Friday 30 November 2018

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Friday 30 November 2018

Highlight of the news reports on our digital platforms this week

Best five stories this week Netflix to ramp up productions in Europe in 2019

It was George Yu, Professor Emeritus of Political Science at University of Illinois, Urbana Champagne, who noted in 1968 that “studying China in Africa is much like pursuing a dragon in the bush.

Netflix will ramp up the number of series, documentaries and movies it produces across Europe in 2019 as it steps up its competition with broadcasters on the continent.

For more visit our website at businessdayonline.com to catch up on full news stories.

Amplats seen by Investec as unable to win costs battle The compromise Anglo American Platinum Ltd. (AMS) made on job cuts with the largest union at its mines shows outside pressures prevent the metal’s biggest producer from trimming costs to help profit, Investec Ltd. said.

Chinko diplomacy and chopsticks imperialism: The weaponisation of finance (1)

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

Chinko diplomacy and chopsticks imperialism: The weaponisation of finance (2)

POLL RESULTS: When MTN gets a banking license, Nigerians will realize they never had banks. An MTN will do real mobile banking, increase financial inclusion and accelerate a cashless society. Will Nigerian commercial banks respond? Via @finplankaluaja. Do you agree? 68% of our online community say yes they agree and 32% say no they do not agree. Kindly send your opinions on this question to digital@businessday.ng.

Poll of the week

“Chinko” is the street name disparagingly labelled on cheap and substandard Chinese products but has equally been extended to Chinese immigrants in Ghana and Nigeria.

Video of the week

Nigeria, Saudi Arabia advance talks on stabilisation of global crude prices Tweet of the week

Cartoon of the week

Friday 30 November 2018

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BUSINESS DAY

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Why the end of the longest oil bull market since 2008?

Dan Steinbock Dr Dan Steinbock is the founder of Difference Group and has served as research director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/

alf a year ago, crude oil prices were expected to climb from $53 per barrel in 2017 to $65 per barrel by the yearend and to remain around that level through 2019. By mid-October, crude had soared to $75 and the rise was expected to continue. Yet, in just 10 days oil has fallen to less than $60. Oil prices are in a bear market one month after four-year highs. The question is: Why? Oil’s short-term fluctuations The simple answer is that until mid-October the escalation of USSino trade tensions, despite President Trump’s vocal rhetoric, seemed to be manageable, which supported global prospects. Yet, the US midterm elections have contributed to growing volatility and uncertainty. Trump’s illicit decision to withdraw from the Iran nuclear deal (JCPOA) contributed to the upward oil trajectory, along with the expected supply disruptions in Venezuela which is amid domestic economic turmoil and US efforts at regime change.

As US-China tensions continue to linger and bilateral talks have not resulted in tangible results, expectations have diminished regarding the anticipated Trump-Xi meeting in late November. Consequently, global recovery no longer seems as solid as analysts presumed only recently. Even signs that OPEC and other oil producers including Russia could soon cut output have not put a floor under the market. Also, Trump’s concession, after heavy pressure by Brussels, to allow Iran to remain connected to SWIFT, which intermediates the bulk of the world’s cross-border dollar-denominated transactions, has contributed to more subdued oil price trajectory. Another supply-side force involves US crude inventories that have been swelling. These stockpiles rose by 5.7 million barrels toward the end of October, although gasoline and distillate supplies shrunk, according to American Petroleum Institute. US production is reportedly rising faster than previously projected. But whether these near-term forces will prevail depends on longer-term structural conditions. Global crisis and post-crisis fluctuations At the eve of the global financial crisis in summer 2008, crude oil reached an all-time high of $145.31. As the bubbles burst, crude plunged to a low of $40; a level it first reached at the turn of the ‘80s, amid Iran’s Islamic Revolution. During the global crisis in 2008-9, the US Fed and other central banks in the major advanced economies cut the interest rates to zero, while resorting to rounds of quantitative easing. Meanwhile, policymakers in advanced economies deployed

‘

…there was nothing inevitable about the dramatic reversal of oil prices in October. It was not based on economics. Rather, it was the effect of overcapacity and the Trump trade wars fueled by hollow dreams of an ‘America First’ 21st century

’

fiscal stimulus packages to re-energize their economies. So, crude rose again until the mid-2010s, when the price still hovered above $100 per barrel. That trajectory came to an abrupt end, when the Fed initiated the rate hikes and normalization policies, which strengthen the US dollar, whereas oil prices, which remain denominated in dollars, took a dramatic plunge. By early 2016, crude prices fell to less than $30 – below the crisis low only eight years before. Crude prices were also hit by the “oil glut”, or surplus crude oil around 2014-15, thanks to critical volumes by the US and Canadian shale oil production, geopolitical rivalries among oil-producing nations, the eclipse of the “commodity super-cycle,” and perceived policy efforts away from fossil fuels. As meetings by the Organization of the Petroleum Exporting Countries (OPEC) failed to lower the ceiling of oil production, the result was a steep oil

price meltdown. Eventually, the 13-member oil cartel was able to agree on a ceiling. At the eve of the OPEC talks in Vienna in spring 2017, oil prices rose to $55. Riyadh needed stability to cope with domestic economic challenges and the war against Yemen. So it permitted Iran to freeze output at pre-sanctions levels. Russia supported the cuts because it remains dependent on oil revenues. The extension also benefited shale and gas producers in the US and the Americas. Crude prices began to climb, but thanks to the OPEC agreement to cut production. Oil’s longer-term structural prospects Crude markets are under secular transformation. Bargaining power has shifted from advanced economies to emerging nations. US is producing record levels of shale. Renewables are capturing more space. Due to sluggish demand, further cuts loom in horizon as prices remain subdued. Moreover, when dollar goes up, oil tends to come down. Oil is denominated in US dollars, whose strength is intertwined with the Fed’s policy rate. As long as the Fed will continue to hike rates, this will contribute to further turbulence, particularly in emerging economies amid energyintensive economic development. In November 2017, OPEC agreed to extend oil supply cuts until the end of 2018. That fueled crude from low-$50s in spring 2017 to more than $70 last mid-October. In effect, crude mirrored the elusive global recovery, along with the prime indicators of global economic integration. It was these positive horizons of world trade, investment and finance that contributed to steady gains of

crude prices until mid-October – but then the fragile recovery crumbled. When President Trump showed no inclination toward US-Sino reconciliation, hopes associated with world trade, investment and finance finally dissipated. And as the prospects of global recovery turned elusive, crude prices began a steady fall. In the short-term, the status quo could change, but that would require effective reconciliation in US-Sino friction and the reversal of US sanctions and energy policies, among other things. In the long-term, significant changes would require sustained OPEC production ceilings, economic malaise in leading emerging economies, dramatic reversal in world trade, investment and finance and – most importantly – the end of the dollar-denominated oil regime and thus the eclipse of US-Saudi military-energy alignment. Some of these changes are not economically viable. Some are desperately needed internationally. Still others are not likely to materialize without significant conflicts and geopolitical realignments. Ironically, there was nothing inevitable about the dramatic reversal of oil prices in October. It was not based on economics. Rather, it was the effect of overcapacity and the Trump trade wars fueled by hollow dreams of an ‘America First’ 21st century. That’s America’s policy mistake, but global economy will pay the bill. • The commentary is based on Dr Steinbock’s briefing for oil and energy senior executives and policymakers.

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Building a strong organization Jude Adigwe Adigwe is a certified Human Resource Management (HRM) professional and an Industrial-Organizational Psychologist. He is the Human Resources and Administration Manager at Sharemind Lagos. adigwejudeobi@gmail.com

he true meaning of the term organization seems lost in some corporate entities. A term that exists in principle but not in practice. Before I focus on the components that make a strong organization, I will explain the term organization– what does it really mean? An organization is simply a group of people who work concertedly to achieve a common objective. Many business entities exist but are not organizations because there are no clearly defined objectives; work activities revolve around an individual or very few individuals, and work is conducted in a haphazard and knee-jerk manner. A building, people and work tools do not make up an organization. At this point, it is fitting to ask: how

can we build strong organizations? First, it is important to have clearly defined objectives. It is paramount to quickly mention that objectives are different from mission and vision. Objectives (which should change on a yearly basis) draw from missions and visions – as yearly objectives are being achieved, an organization fulfils its mission and consequently inches towards its vision. There must be a coherence of an organization’s vision, mission and objectives. Second, it is crucial to have an organizational structure that does not only exist on paper but also in practice. The organizational structure should reflect clearly defined and delineated job roles as well as reporting lines. This reflects the working relationships. This structure should be designed in a way that guarantees effectiveness and minimizes conflicts. Third, the role of a motivated and engaged workforce in building a strong organization cannot be overemphasized. Organizations are primarily about people. People are required to harness the resources that exist in order to achieve set objectives. While the focus here is on the workforce, we must never lose sight of the fact that people in organizations comprise of management and staff. Both complement each other and

work in a concerted manner to achieve set objectives. Fourth, there is need for robust processes. To build a strong organization, there is need for foolproof processes which are driven by policies and procedures (that serve as guidelines for business operations). It is common to find people in organizations circumvent established processes. Sometimes, such acts might be justified because of the urgency of the issue at hand while on other occasions, it might simply be a function of impulsiveness or impatience to follow through with processes. The latter should not be condoned. Fifth, a strong organization must possess requisite work tools to carry out tasks. It is illogical to demand exceptional performance from the workforce of an organization while failing to provide the required tools for carrying out assignments. Basic work tools like laptops/ desktops, printers, phones et cetera are indispensable. Many work tools are of no use without power supply and good internet connection. Sixth, a strong organization requires a culture that is healthy and strong. The core values, work practices et cetera of an organization must promote excellence and other ideals. Culture is central to the sustenance of organizations. It is paramount to mention that there must be an alignment among an organization’s culture, vision, mission

and objectives. Alignment in organizations is key. Seventh, change sensitivity is central to building a strong organization. Change is inevitable. It could be triggered from within the organization or from without. Being sensitive to change requires having an operational template that detects and responds to changes promptly – this guarantees the survival of organizations. A refusal to stay sensitive to change puts an organization on the path of failure and such an organization is destined to go under in no distant time. Eighth, a strong organization requires effective leadership. Leaders provide direction and coordination required to achieve set objectives. The success of an organization is largely dependent on the quality of its leadership. If an organization has a strong followership and a weak and clueless leadership, the weakness and cluelessness of its leaders is bound to neutralize the positive effects of the followers. It is the responsibility of leaders (not followers) to make decisions and drive change. The reverse is a revolution and revolutions seldom end well. Ninth, it is very critical to ensure that there is an effective communication system. To build a strong organization, there must be an effective communication system that is bidirectional regardless of the dimension

being considered. Though this is a challenge in our society (owing to cultural factors), there should be an open and honest communication from top to bottom and bottom to top as well as from both sides when considering communication at horizontal levels. Communication is central in fostering understanding and a sense of unity which in turn minimizes conflicts. Lastly, the role of a strong financial base in strengthening an organization cannot be ruled out. This is important regardless of whether the organization in question is a profit-making venture or a not-for-profit organization. Both categories of organization require finances to take care of capital expenditures (CAPEX) and operating expenditures (OPEX) which is central to their sustenance. There must be control mechanisms to guard against reckless spending that could drain the limited financial resources. The aforementioned components that make up a strong organization are basic and indispensable. Any attempt to choose some and leave out others is a partial commitment to strengthening an organization and this is a compromise of its growth.

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Compliance and rebuilding a corporate mad house EIZU UWAOMA Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

h e n re s t r u c t u ring, people must be laid off. For me, I hire slowly and fire swiftly. There should be no job security. The worst customer service and work ethics comes from institutions that pride themselves of ensuring job security (like the Nigerian government agencies at all level). Personally, during on boarding processes for new staff, I make it clear, that no one should fire anyone. The only person that has the right to fire you is you. And that is by incrementally going against our collective accords. Your only guard of your job should be your competency, character and any other reason you were hired and more. But the truth is, you can’t always fire people for doing wrong. So you have to protect them from doing wrong, so you can protect your firm. As a CEO or a part of management, there has to be a balance be-

tween effectiveness and efficiency. So it may cost you more to keep hiring and firing people. Laying off the wrong people for the right people is key in restructuring. Its importance for their psychology of work to declare that it’s not business as usual. After that comes definition of new process. But you need a compliance system to avoid a relapse. Operational documents like job descriptions, intended corporate culture, brand promises and standard operating procedures, even when defined, written down and assigned might still not be followed through except there is a strong compliance mechanism. So you need a compliance system. Everyone’s work they say is nobody’s work, so someone (or a department depending on how big your organization is) has to be held responsible. The same way a marketer is placed on target, and may be fired when that target is not met, is the same way a compliance person has to be put on ground with a target to query, suspend and even fire anyone (from the bottom up, including you, even if you’re the CEO) if not met. The compliance manager reserves the right to query and even suspend anyone in the firm, even if the person is above him/her in organizational hierarchy. One activity that greatly improves the credibility of the compli-

ance system is effectiveness communications of the rules of the game, the policies, procedure and declaration of possible consequences in terms of reward and sanctions. Being assertive and true with promises and threat is important. And then following through with an eagle’s eye view as well as detailed microscopic lens. This includes the use of unannounced compliance checks. This allows the compliance Manager to assess what is happening during a ‘typical’ day, in contrast to the potential artificial environment established for an announced compliance check. This procedure shall be conducted within the calendar year at random, for everyone, for each department and store. They will include • Mystery shopping: Here, someone is hired to walk in like a customer so as to catch the sales force and other relative team members with their guards down. It can be as petty as snooping through, or strategically, usually, they are either wired or have hidden camera with a checklist of what may be done wrongly as against the SOPS. The role of this is to verify whether the brand’s promises, brand loyalty, SOPs and Job description are being followed. The mystery shopper can turn up at business premises unannounced to review records, ask to see documents and request access to computer systems. Take for example, a mystery in-

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Your only guard of your job should be your competency, character and any other reason you were hired and more. But the truth is, you can’t always fire people for doing wrong. So you have to protect them from doing wrong, so you can protect your firm

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spector can pose as couple out to buy a quick dinner at a restaurant. Their purchase is later checked against the restaurant’s end-of-year books to see whether it has been properly accounted for. • Credibility checks: For character flaws and vulnerability to carelessness (from personal online profiles and checks, to ensuring that trade secrets and other privacy and non-disclosure documents are intact). • Internal mentor ship is key, let

the high flyers of your team mentor the rookies and allow him or her rub off on them systematically. It helps in the sustainability of excellence. It’s an abstract view on compliance. The compliance managers are to select those departments who will receive an unannounced check relative to the number of announced compliance checks planned within the calendar year. This should be done and assigned with utmost secrecy. An unannounced audit will be scheduled in addition to the regular compliance cycle and can only replace surveillance when it is ensured that all relevant criteria will be checked. If the department head refuses to cooperate for whatever reason, then this is ground for an immediate implementation of disciplinary action. In terms of disciplinary actions, there should be a committee on discipline, review of the firms balanced score card and performance measurement. This should be done every quarter. But at the end of every quarter, there is a measurement of each person with grading for rewards and sanctions. The top 25 percent performers are rewarded while the bottom 25 percent are laid off. These are a few of how to create a compliance system that supports your vision and operating procedures.

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Inheritance & succession: What or how will you pass it on when you pass on? AISHA RIMI Rimi is Partner, Africa Law Practice (ALP) Corporate-Commercial and Private Client

n Nigeria, inheritance and succession planning are governed by the Wills Act and the deceased’s personal laws, customs and religion. Preparing for the inevitable is important, otherwise you risk the unintended consequences of: ineffective gifts, thereby depriving your preferred heirs of your estate or having your assets ending up with unintended beneficiaries. Sometimes even waste (siblings have been known to engage in protracted disputes over inheritance resulting in long drawn out court cases) or a total loss (e.g, in the case where a man who owned property in England and died intestate. By the time his family became aware of the property, they were unable to afford the inheritance tax and unfortunately had to forfeit the property). With people living in one place but having the cultural beliefs of another; multiple families; assets in different jurisdictions and everchanging tax and inheritance

laws, we owe our families, partners, dependents etc. a legacy free from contention, stress and unnecessary expenses. Your assets are anything you own either solely, jointly or in partnership including, property, cash and shares. It is important to compile a list of assets before deciding how to pass it on. How you pass these on, depends on the type of ownership, location of asset, your religious, cultural beliefs and practices. The most common forms of disposal are wills, trusts, powers of attorney, outright gifts, etc. Nigerian law recognizes customary laws, practices and religious beliefs in the management and distribution of assets and estates. Wills are legal documents executed by an adult (testator) of sound mind before witnesses, that clearly states what happens to your assets upon death. If you die without a will, you are said to have died intestate. A will takes effect after death and those responsible for executing its provisions are known as executors, who should be persons trusted to follow your mandate honestly and responsibly. If you die intestate, the probate court will appoint administrators to the estate. Changes can be made either by revoking a previous will or by codicil. Copies of the will

and codicils must be kept in safe custody. Your will must be clear, and the beneficiaries specifically stated. Provisions can be made for residual matters which may accrue after you pass. Conditions can be attached to bequests and provisions made for the care of minor children, elderly parents; financial support to charities you wish to support. A beneficiary cannot witness a will. A trust is an agreement entered into between parties for the benefit of a third, a beneficiary. It can be effective even when you are alive; revocable (freedom to change the trustees, beneficiaries or the terms); or irrevocable. An executor in a will can become a trustee by virtue of the terms of the will. A power of attorney can be used to give authority to a trusted person(s) for certain aspects of one’s life or assets e.g. in the event of incapacitation, it can state how the donor should be medically looked after, cheques signed, funeral arrangements etc. Your next of kin is usually entitled to the benefits of the aspect for which they have been so indicated. Always consider your circumstances when designating a NOK and update this as the need arises. Most Nigerian tribes and cultures operate under the principle of primogeniture – succession by the eldest male child in the

absence of clear instructions in a will, trust, POA or gift. The deceased’s personal customary law will prevail, irrespective of where the property is situated or where he/she died. In Olowu vs. Olowu, a Yoruba man, naturalized as a Bini man, died intestate; his estate was distributed under Bini native law & custom. The Supreme Court (Ukeje vs. Ukeje), held as unconstitutional any culture (in this case Ibo) which excludes women from inheriting from their husband or father. In this case, the deceased’s daughter instituted an action against her stepmother and half-brother seeking that she be included among the persons eligible to partake in the deceased’s estate. The effect of the decision in this case is that customary law can no longer be a basis for the exclusion of females from inheriting property. The courts will generally accept oral (non-cupative) wills if the custom of the deceased allow this. With the Yoruba, generally the eldest son inherits the property for himself and as a trustee on behalf of the family –wife/wives and children. Where division occurs, male children sometimes get more; or it is split into the different branches, with each wife/ mother constituting a branch – Idi Igi; each child may get an equal

share – Ori Ojori. Under Islamic Law, the Quran ensures that primary (spouses, children and parents) and legitimate heirs are not denied their inheritance. Before any portion of the Estate is shared, the deceased’s debts must be settled. A wife/wives is entitled to a quarter of the estate and males inherit twice as much as females. Parents inherit from a deceased child. If none of these exist, full siblings are next and thereafter half siblings. Non-Muslims, adopted or “illegitimate” children cannot inherit from a Muslim and any residue in the estate is shared amongst the heirs. Muslims may only dispose of a third of their assets by a will but can gift some or all of their assets in their lifetime. A will is recommended once you attain the age of maturity and have any assets. There are selfhelp tools to assist in drafting and preparing wills, but it is advisable that if you have significant assets or an extended family, you seek the advice and assistance of a lawyer, financial and tax planning experts and professional trust companies. • A longer version of this piece available on our website – www. alp.company

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Friday 30 November 2018

Private sector is the future of Nigeria

t has been estimated, and even the government affirmed it in its Economic Recovery and Growth Plan (ERGP) that for Nigeria to close its infrastructure gap and bring itself up to the international benchmark for infrastructure stock, it needs to spend as much as $3 trillion in the next 30 years and majority of this money is expected to come from the private sector. As in many other growth and development indices, Nigeria lags behind many countries of the world in its infrastructure stock. The international benchmark for infrastructure stock as a percentage of GDP is 70 percent, but Nigeria currently stands at below 30 percent. This realisation that both the government and the private sector must contribute their quota towards building Nigeria’s infrastructure is now mainstream and all progressive governments are designing policies to ensure a robust public-private partnership where the private sector can invest massively in infrastructure. But not so with the Nigerian government. This is a country where the

president came out to say matters-of-factly that he does not trust individuals in the private sector. In his words: “We are averse to an economic team with private sector members” because such persons “frequently steer government policy to suit their narrow interests rather than the overall national interest”. Buttressing the president’s position further, the media adviser to the vice president, Laolu Akande further explained that the presidency considers economic management as purely “a government affairs”. The position of the presidency is not surprising. In a way, it reflects the president’s ideological position which is yet to change since 1985 when he was removed from power. The president is a staunch believer in a statecontrolled economy and a closed state-centric policy process. His aversion for the private sector is classic and he considers private sector players as greedy, selfish, and inherently incapable of working with the government towards the development of the state. We recall that since 2003 when Buhari began his quest for public office, he has always voiced his opposition to the surrendering of the “commanding

heights of the economy” to the private sector and specifically, the privatisation of the largely inefficient and wasteful State Owned Enterprises that became established conduits for the siphoning of public revenues. This can be seen in how the president talks about the privatised SOEs in very nostalgic tones and never fails to excoriate past administrations for mortgaging Nigeria’s common patrimony to private and selfish individuals. That explains the president’s push, on coming to power, to claw back the economy from the private sector, re-establish state dominance and control over the economy and position the state as the largest player in the Nigerian economy. Despite the huge cost of subsidising imported petrol – about $3.9 yearly – and despite the fact that government is facing a severe revenue crisis and cash crunch, it has still refused to deregulate the downstream sector of the oil industry and allow market forces to determine the price of the product. This thinking by the president is deleterious to the Nigerian economy and will set the country back several decades if nothing is done to convince the president to

abandon his outdated socialist ideology and allow the private sector to dictate the pace of the economy, albeit with government providing solid regulation to prevent the manipulation and abuse of the market by greedy forces. The reality now is that government alone does not have the resources to provide the scale of infrastructure required by a 21st century society. But rather than develop a comprehensive PPP model to ensure the smooth participation of the private sector, the government, rather prefers to go borrowing, at exorbitant interest rates, to provide some infrastructure. But no amount of borrowing can plug the infrastructure hole in the country. There is just no running away from the reality that the government must partner the private sector to provide modern and world class infrastructure. We urge the president and his minders to rethink its strategy. Private capital has alternative uses and many countries are competing for them. The sooner we cosy up to the private sector, develop an attractive PPP model to convince willing investors to want to invest in the country, the better for us.

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Defaulting on easy micro-loans harms credit scores STEPHEN ONYEKWELU

ahinde heaved a sigh of relief, she had just paid off a micro loan of N30, 000 spread over a three month payment period at 20 percent interest rate per month with Paylater, a Fintech Company. Seven days afterwards, she got this message from KwiMoney, another Fintech Company “You’ve been selected for an instant loan! Visit get. kwicash.ng for KwiCash and borrow from N1k to N100k. Your loans grow with good payment.” This got Kehinde thinking. She has great payment history with Paylater. In fact, she makes it a point to pay off her micro loans before it is due and her current micro-loan with Paylater has come at 12.50 percent per month a difference of 7.50 basis points from what she paid on the last loan she took. So, the interest rate charged on her loans is falling because of her payment history. This is not the story of her colleague Linda. Linda took her first micro-loan with Branch International, a fintech company. However, she defaulted on her payment by over seven days. The company persuaded her to meet her financial obligation, she eventually did. Before she paid off the micro-loan, she attempted to take another with Paylater but she was told she did not qualify. She was very surprised how this could be. In addition, Branch International downgraded her status

by reducing the range of micro-loan she can access. With the advent of bank verification number, credit scores and history will become easier to track and this will have significant implication for personal finance. A credit score, also known as a credit rating, is a number that reflects the likelihood of an individual paying credit back. Lenders like banks and credit card companies will look at your credit file when they calculate

your credit score, which will show them the level of risk in lending to you. The score ranges from 300 to 850, with 300 being the lowest score and 850 the highest. The lower the credit scores the higher the level of riskiness or probability that the customer may default in payment. One of the basic know your customer (KYC) data point required for micro-loans for fintech companies is the borrowers bank verification

Odumkomaiya Oluwademilade receiving his award, courtesy of Sidmach Technologies Limited.

number. Before, a fintech company extends credit to an individual it runs a check on the person’s credit history with help of the BVN. In Kehinde’s case, her credit scores or rating with Paylater preceded her and attracted KwiMoney’s attention because it is less risky to lend to her. The ability to repay credit based on her payment history qualified her. Meanwhile, Linda, who had defaulted in repayment with Branch International, was so naïve as to assume she could afford not repay her micro loan and simply move on to another fintech company. Beyond fintech companies, banks will eventually latch on to customers’ credit history with fintech companies to evaluate the risk factors. What this means is that taking micro loans from fintech companies is serious decision because in can either enhance or impair an individual’s credit scores or rating. Credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits.

Port Harcourt hosts TEDx with inspiring discourse to develop Niger Delta

he sixth edition of TEDx PortHarcourt, an annual non-profit event devoted to worthy ideas on topical issues, held recently at Horlikins Event center, Port Harcourt, bringing speakers to discuss issues pertaining to development of the Niger Delta region. Titled “reFrame”, this year’s event addressed the ability of perspective to alter reality, and its implications in Technology, Entertainment, Design, and other spheres of life. The lineup of speakers included Ebiegberi Alagoa, a professor and renowned educationist, Charles Okeibunor, and Ifie Sekibo, CEO,

Hertiage bank amongst others. They all spoke on issues germane to the Niger Delta region, while offering creative insights into how to address the issues. Alagoa’s talk titled “My Niger Delta Story”, recalled the rich cultural heritage of the Niger Delta people and encouraged youths to learn from those who, in spite of the challenges of the environment, have surmounted barriers to become useful citizens. Ifie Sekibo, who spoke about “entitlement”, stressed the need for a return to the leadership principles and teachings contained in the Niger

Delta culture. In his view, many of the problems encountered by the region have already been tackled by culture’s emphasis on conscientiousness and community. He also stressed the necessity for collaborative efforts towards achieving objectives. Prominent work place transformer, Charles Okeibunor, stated the need to reframe and not refrain, while discussing ‘Relationships Management Skills’. In his view, frames are to pictures what clothes are to the body, accentuating beauty and providing memories. For him, not every picture should be framed however, as there are some that would mar these

memories. Those pictures, he stated, should be confined to the “dustbin of history”. Speaking after the event, Donald Okudu, the primary TEDx licensee, elaborated on what the brand stood for and hoped to achieve. According to him, TED, which stands for Technology, Entertainment and Design, is a gathering for ideas that are worth sharing, delivered by the best minds, to spur conversations that improve humanity. He also discussed this year’s theme ‘Reframe’, pointing out that it was unwise to continue doing the same thing and expecting a different result.

He added that iShaka Emergency enable users to dial emergency services or text related messages to two of their pre-selected emergency contacts at the touch of a button adding that either of the two contacts is linked to sender’s actual GPS location, “iShaka emergency application displays emergency options, ranging from domestic violence, robbery, riot, sickness, accident to fire incident. However, usage cannot be limited to

only those scenarios as deemed fit by user. If messages are sent in error, a cancellation message is available to deescalate any panic,’’ he said. Okororie who said the safety application was well received in the UK, explained that during application sign-up, user provides his / her name, phone number and two varied emergency contacts. They (emergency contacts) also have to enable their GPS or location finder to have access to their location.

iShaka: new phone application for safety Chinyere Elizabeth Okoroafor

or the purpose of getting quick help in times of distress, a new application called iShaka Emergency has been designed to keep subscribers safe by connecting the user with their important contacts with the click of a button. The application which debuted in the United Kingdom (UK) recently

can be used on android, window and apple phones all over the world. It can be downloaded from Google play store and App store. According to Chidora Victor Okororie, the initiator, a NigerianUK based Information Technology (IT) Consultant, who spoke on phone, iShaka Emergency was created when someone he knew died in a domestic violence which he thought would have been stopped if the victim alerted someone for intervention.

Financing

Odumkomaiya Demilade emerges Lagos State’s third best WAEC candidate

idmach Technologies has presented an award to Odumkomaiya Oluwademilade of Wellspring College, Ikeja for emerging as third best candidate in Lagos State in the 2017 WAEC examinations at the 2018 Information Technology conference and annual general meeting of the Nigeria Computer Society, Lagos Chapter. Odukomaiya was presented with a laptop computer, free internet data for six months and a certificate of excellence; while the school was presented with an award plaque. It was a significant moment for Wellspring College as it strives to maintain excellent academic performance in external examinations over the years. In 2015, the school emerged as the overall third best school in the West African Examination Council’s exams in Lagos State. Odukomaiya who is now studying mechanical engineering at Covenant University gave credit to God and hard work for his success. He said “God helped me to work hard, pay attention in class and study adequately to prepare for the exams. Thanking the principal and teachers, he added, “I will like to thank the principal of Wellspring College, Oluwayemisi Oloriade and all my teachers who taught and guided throughout my stay in the school.” The Oloriade, the principal while speaking to journalists mentioned how proud she was of Odukomaiya’s performance and was certain that he will continue to take the lead academically as a result of the solid foundation he got from the school “We are certain he will continue to perform well at the university level, we expect a first class honours at the end of his university education” she said. Speaking on the reason behind the school’s academic excellence record over the years, Oloriade attributed the school’s success to God’s faithfulness. She went further to add that the students are nurtured to excel. According to her attention is paid to individual differences of the students and they are constantly encouraged and motivated to believe in themselves. Leading a team of committed and dedicated teachers is one major way to ensure academic performance, Oloriade confirmed by saying “Our teachers ensure that syllabus is covered and they ensure that revisions and coaching are done until each student catches up”. She also assured that nothing is left out when it comes to ensuring that students perform excellently. Oloriade who disclosed that the school would not relent in its effort to produce students who are academically sound said “We are committed to continue working hard to maintain this feat in the coming years.”

Friday 30 November 2018

BUSINESS DAY

CITYFile Cycology Club, SCF mark Lagos City Criterium Dec. 1

Vice President Yemi Osinbajo (l); Mohammed Badaru, governor, Jigawa State (2nd l), and traders, during the inauguration of TraderMoni at Yan Tipper Market and Dutse Ultra Modern Market, Duts, on Tuesday.

Ogoni cleanup: FG urged to expedite action SAMUEL ESE with agency report

he Federal Government has been called upon to immediately commence the cleanup exercise of Ogoniland before the 2019 general elections. Robert Petri, Netherland ambassador to Nigeria, made the call during a factfinding mission to the Hydrocarbon Pollution Remediation Project (HYPREP) office in Port Harcourt. He said immediate action on the cleanup would send a signal to the world that Nigerian government was serious with remediation of oil impacted Ogoni communities. He said: “Things are really happening in Ogoni cleanup, but they are brightly not visible. Government should ensure the independence of HYPREP. “It is extremely an important project that we hope will commence proper before the elections starts. The whole

world is watching.” The ambassador said the cleanup exercise was the largest oil remediation project carried out in a single country. “This is a large project; that is even the largest clean-up in the whole world. Nigeria is making history with this project which will set example worldwide. “Though HYPREP’s emphasis on community engagement is commendable, but the problem here is that things take a long time to start. HYPREP should keep engaging the people,” he said. Marvin Dekil, project coordinator of HYPREP, said the agency was ready to commence the cleanup of oil impacted Ogoni communities. He noted that the agency had recently concluded its screening exercise that ended in selection of 21 companies to handle the project. According to him, 21 companies have been cleared and are ready to be mobilised to site to commence the

cleanup. The companies scaled through the entire procurement process. “Also, HYPREP has completed community; technical preparations and compliance to all procurement acts. HYPREP has not imposed anything on the area of livelihood in the communities”. The Federal Government had on April 28, reiterated commitment to the cleanup project. Vice President Yemi Osinbajo had said at a brief ceremony during which the Ogoni Trust Fund escrow agreement was signed at the Presidential Villa, Abuja, that the present administration would ensure the project was transparent. “The signing of the escrow agreement is one that shows clearly that not only are we committed to ensuring that the cleanup is done, but also that we are committed to ensuring that it is done transparently,” Osinbajo said.

Ayade donates 500,000 free uniforms to schools MIKE ABANG, Calabar ross River State governor, Ben Ayade, has released over 500,000 free uniforms to public schools in the state under the Ayade School Uniform programme. The governor has also disclosed plans to build a shoe manufacturing factory to produce school sandals, all aimed at properly kitting the pupils in order to build their confidence. Presenting the uniforms on Monday, Ayade said the gesture was in fulfillment of the promise he made to primary school

pupils two years ago, during one of his outings with them. “Let me announce to you that this is a product of the Cross River State Garment Factory. I have also directed that private schools should be given 10 percent of these uniforms.” The governor who noted that the focus was on primary school pupils, said: “We are focusing on the young pupils and that is why I thought it wise to do this presentation. We intend to dress them properly and let me inform you that our shoe factory is coming up soon

where we also intend to produce school sandals and present same free to them to build their confidence and make them see themselves as equals to those in the private schools.” Urging the West African Examination Council (WAEC) to proffer solutions to the fallen standard of education in the country, Ayade remarked that it would be difficult for Nigeria to catch up with the developed world unless deliberate steps were taken to restructure the syllabus in line with the realities of the fast-changing world.

ustainable Cycling Foundation (SCF) and Cycology Riding Club have concluded arrangements for the 2018 edition of the Lagos City Criterium. The event scheduled for December 1, 2018, according to the organisers, will take place at the Dolphin Estate loop, Ikoyi from 7am. The Lagos City Criterium is a bicycle racing competition consisting of several laps around a closed circuit. The 2017 edition which took place at the 2.9km loop of the Dolphin Estate, had a guest appearance of ex-Tour De France cyclist, Andrea Tonti and over 170 cyclists from all over the country competing for more than one N1 million prize money. According to Temitope George, spokesperson of the Cycology Club, the 2018 edition would be bigger, as professional cyclists and enthusiasts within and outside Nigeria make inroad to Lagos to witness teams compete for N1million naira prize money. “Participating teams will be competing under six categories – Pro male/female, masters’ male/female, and junior male/female categories,” she said. The competition is backed by the Lagos State government through the Lagos State Sports Commission. According to SCF, the aim of the criterium is to promote cycling as a sport and means of recreation amongst Nigerians. SCF chairman, Faiz Imam said, “one of the goals is to build cycling to the same level as football in Nigeria where we see a representation of Nigeria at international events like the Tour De France.” For Cycology Riding Club, the aim is to promote grassroots cycling whilst maintaining a healthy lifestyle. “The criterium remains one of the most important platforms through which Cycology promotes cycling as a tool for healthy living and social development.” said Tunde Laoye, the vice captain of Cycology.

NDLEA begins trial of 33-yearold drug baron in Jos

he trial of 33-year-old Vincent Amago, accused of cultivating Indian hemp in a large farm, has commenced at a Jos Federal High Court, The National Drug Law Enforcement Agency (NDLEA), at the arraignment of the defendant, told the court that he was caught with 1,351 Kgs of Canniva Sativa, popularly known as Indian hemp. The NDLEA prosecuting counsel, Bundi Suleiman, told the court that operatives of the agency arrested the defendant on November 29, 2017, at his Kumbul village residence in Richa District of Bokkos local government of Plateau. According to Suleiman, the offence contravenes Section 19 of the NDLEA Act Cap N30 Law of the Federation 2004. The defendant had denied committing the offence and was granted bail by the court. At the resumed hearing on Wednesday, Suleiman told the court that he had two witnesses ready to testify in the case. Led in evidence by Suleiman, John Joshua, prosecution witness 1, told the court that he arrested the defendant on November 29, 2017. Joshua told the court that together with a colleague, Michael Yelleng, in the company of military officers of Operation Safe Haven (OPSH), arrested the defendant at Kumbul village. “On that fateful day, we went to the residence of the accused; when we knocked on the door, he opened it for us and we told him of our mission. To our utmost surprise, his entire house was like a store; it was filled with substances suspected to be Indian hemp. “We arrested him and packed so much quantity into our vehicles, but we had to leave some behind because the vehicles were filled up with no space to carry more, ’’ Joshua claimed. The witness said that the quantity they packed weighed 768Kg, and when tested, it was certified to be Indian hemp.

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Falling oil prices weigh on Nigerian economy, G20 summit in focus

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

CONSUMER GOODS

Consumer goods take the lead as value of largest firms up 10% in 4yrs David Ibidapo & Cynthia Ikwuetoghu

m o n g Ni g e ria’s 30 largest firms, companies in the consumer goods space have notched the biggest gains in market value over the past four years, according to official data compiled by Business Day. T h e t re n d c o n f i r m s why most investment banks believe that a good number of consumer goods stocks make a good buy for investors and have mostly assigned BUY ratings to the stocks. Led by triple digit growth in the market va l u e o f Int e r nat i o na l Brewer ies, Okomu oil, NASCON, Unilever, Beta Glass, Presco and Dangote Sugar, the aggregate market value of the NSE 30 index- which tracks the share performance of the most capitalised public companies- increased 10 percent to N10.8 trillion as at November 28, from N9.8 trillion at the start of 2015. B e e r m a k e r, I n t e rnational Breweries has climbed 234 percent in the period, while local palm oil company, Okomu gained 204 percent. NASCON is up 179 percent, closely trailed

by Unilever which has grown by 172 percent. Beta Glass, Presco and Dangote Sugar round up the list of the triple digit performers, having increased 158 percent, 156 percent and 113 percent respectively. Of the seven companies listed above, six are consumer goods firms with exception to Beta Glass. Paul Uzum, a L ag os based stock broker on the NSE said, “For the likes o f O ko mu a n d P re s c o, the concentration of the current administration t o ag r i cu l tu re a n d t h e ra lly of pal m oil p r ice due to government ban in May 2015 on 41 items impacted positively on earnings hence market value.” In total, 20 of the NSE 30 companies recorded growth in their market va l u e i n t h e f o u r y e a r period under review. The market value of the companies improved as investors compensated them for impressive results declared during the period under review. However, BusinessDay analysis of consumer g o o d s f i r m s’ e a r n i n g s performance showed that International Breweries, t h e c o m p a ny w i t h t h e la rg e st ga i n i n ma rke t value bucked the trend of impressive profit growth

of the companies w ith soaring market values, over the four year period under review. T h e b e e r m a k e r re corde d an average dec l i n e o f 1 6 p e rc e n t i n its earnings in the last f o u r y e a r s, w h i l e o t h ers recorded impressive results. “The appreciation in the market value of international breweries was major due to the acquisition of its parent company SAB miller by Anheuser-Busch InBev in 2016. This saw the share price of international

brewery rally to as high as N64 in January 2018,” Uzum added. Okomu Oil recorded an average growth rate in earnings of 57 percent, while NASCON recorded 30 percent, and Unilever recorded 33 percent. Presco and Dangote Sugar recorded earnings growth of 41 percent and 35 percent respectively. Other companies that dominated the value appreciation over the fouryear period were commercial banks. Un i o n b a n k l e d t h e chart; recording a market

cap growth of 85 percent from N114.65 billion to N212.46 billion. H o w e v e r, t h a t w a s driven more by a 72 percent increase in outstanding shares, as the lender’s share price declined 24 percent. The other banks to feature on the list are Stanbic Ibtc (70%), UBA (59%), Ecobank (41%), GTB (40%), Access Bank (27%), Fidelity (24%) and Zenith bank (23%). Tier-one lender, First Bank Nigeria Holdings, h ow e v e r re c o rd e d a 4 percent fall in its market

va l u e ove r t h e p e r i o d to N263.8 billion from N275.7 billion at the start of 2015. In 2016, stocks of First Bank underper for med the market after its share price declined by 34.69 percent to as low as N3.35, while the broader stock market was down 6 percent. The stocks have since improved, hitting a three year high of N14 per share in January but has now dipped to N7 amid a general market selloff by foreign portfolio investors.

STOCK MARKETS

Chairman Orjiakor sells 1.2m Seplat shares at N696m LOLADE AKINMURELE

eplat Development Company plc notified the general public on Wednesday through the Nigerian stock exchange market (NSE) on the sales of 1.2 million ordinary shares indirectly held by A.B.C Orijako, chairman of SPDC Plc

through Vitol Energy Limited. The shares of the London-listed Seplat were sold at an average rate of 1.28 Great British Pounds (GBP), in a deal worth 1.5 million GBP (N696 million at an exchange rate of N464.7 per GBP. A breakdown of the deal showed that the transactions were executed over a period

of three days between 30th October and 1st November 2018. Volumes of the transaction included 500,000 units at GBP1.292 and 200,000 units at of shares GBP1.283 in October, while an extra 500,000 unit was sold off in November at GBP1.286 and GBP1.287. Following the sale, Orjiako now holds a direct interest in

16,151,325 ordinary shares and an indirect interest in 29,800,000 ordinary shares of the Company, totalling 45,951,325 shares. That equates to a voting interest of 7.81 percent based on the oil and gas firm’s Issued Share Capital of 588,444,561. Details of the transaction specified a sale of shares registered in the name of Vitol En-

ergy Limited held for the benefit of Shebah Petroleum Development Company Limited, an entity controlled by ABC Orjiako and members of his family. Vitol Energy Limited operates as a subsidiary of Vitol Holdings B.V which is an energy and commodities company, engages in trading, refining, shipping, terminals

and storage, exploration and production, marketing, and power generation businesses. As at year ended 31 December 2017, the number of ordinary shares held by Orjiakor amounted to 47,251,325 ordinary shares down by 39 percent from holdings of 77,962,680 ordinary shares comprising of both direct and indirect holdings in 2016.

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Falling oil prices weigh on Nigerian economy, G20 summit in focus LUKMAN OTUNUGA

he recent depreciation in oil prices presents significant risks to oil export-dependent nations, with Nigeria falling into the category. Depressed oil prices will not only shave government revenues but also the nation’s ability to implement its 2019 budget which pegged oil prices at $60 per barrel. If the Central Bank of Nigeria finds itself in a difficult position to defend the Naira amid falling external reserves, inflationary pressures are likely to make a return as the Naira weakens. The near-term outlook for the economy paints a gloomy picture amid weak oil prices, rising inflationary pressures and possible depreciation of the Naira. However, with GDP potentially bolstered by increased government spending ahead of the presidential elections next year and diversification in play, there is still some light at the end of the tunnel. Market sentiment hangs on G20 Summit Conflicting signals over the direction of trade between the world’s two largest economies are poised to place investors on an emotional rollercoaster ride ahead of this weekend’s G20 meeting. It was only on Monday US President Donald Trump stated that he was “highly unlikely” to suspend planned increases to existing tariffs on Chinese goods. One day later, White House economic adviser Larry Kudlow expressed optimism that a trade

deal between the United States and China was still a possibility. With Trump’s remarks clashing head-on with Kudlow’s positive comments, the US administration is clearly adopting a classical good cop, bad cop strategy leading up to trade talks. Will this method work with China? This is the question on the mind of many market players. In a perfect world, the bestcase scenario for financial markets will be for both sides to find a middle ground on trade and secure a breakthrough deal. However, this outcome is highly unlikely with investors closely observing for any display of co-operation or interest in further negotiations to ease trade tensions. The worstcase scenario for markets will be if talks descend into disagreements on trade which may fuel fears over a trade war between the United States and China becoming reality. Dollar remains the king of the hill Dollar strength is set to remain a dominant market theme this week thanks to renewed trade tensions and expectation of higher US interest rates. Buying sentiment towards the Dollar brightened yesterday following hawkish remarks from Fed Vice Chair Richard Clarida while uncertainty over trade fueled upside gains. Investors will be keeping a close eye on the pending second estimate of third-quarter GDP growth figures to gauge the health of the US economy. There will be a special focus on Fed Chair Jerome Powell’s speech, which will most likely be closely scrutinized for clues on how many more times the Fed plans to raise

rates in 2019. If Powell strikes a hawkish note, the Dollar Index has the potential to rally towards 98.00. Another painful day for the British Pound? The story defining the British Pound’s painful depreciation continues to revolve around Brexitrelated uncertainty and political drama in Westminster. Matters could be worsened for the Pound if today’s UK Treasury’s Brexit forecast paints a very gloomy outlook for the UK economy post Brexit. Some parts of the Treasury report have already been leaked by the Telegraph this morning with the UK seen to be £150bn worse off under a no-deal. With GDP also projected to be 7.6% lower under a no-deal scenario over a 15-year period, things could get very messy to the run-up of the official Brexit deadline. In regards to the technical picture, the GBPUSD is firmly bearish on the daily charts with bears eyeing the 1.2700 level. Commodity spotlight – Gold Gold was treated without mercy by an aggressively appreciating Dollar yesterday with prices sliding towards the $1,212 level. The heavily bearish price action witnessed on the yellow metal confirms how its trajectory remains heavily influenced by the Dollar’s performance and US rate hike expectations. With the Dollar likely to remain supported by safehaven flows and expectations of a rate hike in December, Gold is likely to witness further downside. Sustained weakness below $1,214 could inspire a move back towards the psychological $1,200 level. This article was first published Nov. 28 on www.businessdayonline.com

L-R: Rukevwe Falana, company secretary; Obinna Ekezie, chairman, and Edddie Efekoha, MD/CEO, all of Consolidated Hallmark Insurance (CHI) Plc, during the extra-ordinary general meeting of the company in Lagos, yesterday. Pic by Olawale Amoo

L-R: Abimbola Olashore, president, IAPM: Mary Uduk, acting DG, SEC; Oscar Onyema, CEO, NSE, and Akinduro Philips, executive secretary/CEO, IAPM, at the 2018 Investment Advisers & Portfolio Managers forum in Lagos.

INSURANCE

Consolidated Hallmark increases authorised share capital to N7.5bn …set to raise N734.5m by private placement

Modestus Anaesoronye

nderwriting firm, Consolidated Hallmark Insurance (CHI) Plc has secured the approval of its shareholders to increase authorised share capital from N5 billion to N7.5 billion by the creation of additional five billion ordinary shares of 50 kobo each. The Company’s board of directors also secured the nod of its shareholders to raise N734.5 million, through private placements,

by allotting 1,130,000,000 units of ordinary shares of 50 kobo each at 0.65 kobo per share. Obinna Ekezie, chairman of Consolidated Hallmark Insurance Plc, speaking at its Extra-Ordinary General Meeting in Lagos said the objective of the exercise is to proactively position the company for any development that may come up in the industry requiring higher capital. Ekezie said, as a forward looking organisation we must be prepared at all times to be ahead of regulatory

requirements in our business. Eddie Efekoha, managing director/CEO of the Company said there is need for more capital in insurance business, stating that the higher your capital the higher you retention of larger risks. He said the company has already identified an investor who is willing to bring money under the private placement, assuring shareholders that the decision was in the best interest of the company for the benefit of shareholders.

L-R: Wole Solanke, Software and Automated Meter Infrastructure (AMI) Development Manger Mojec Meter Company; Judy Ye, representative of Mojec Meter’s Technical Partner; Chantelle Abdul, managing director /chief executive officer, Mojec Meter Company; Kokoyo Robinson, principal partner, Heritage/Member of the Advisory Board of the Nigerian Entrepreneurs Award, and Sheu Olatunji, team lead virtuitis solaris, Mojec Business Intelligence Unit, during the presentation of the Most Entreprising Female Entrepreneur of the year Award to Ms Chantelle Abdul at 2018 Entrepreneurs Award held in Lagos recently.

BANKING

Stanbic reviews rate on N30bn bond upward MICHEAL ANI

tanbic IBTC, a local unit of South Africa’s Standard Bank, has reviewed upward the pricing guidance range for its N30 billion Series 1 corporate bond offer, the bank said in a memo released Nov 28. The N30 billion bond offer, which is the first series under the Bank’s recently renewed N150 billion structured note programme was reviewed higher from a range of (15.00-15.25) percent to (15.25 – 15.50) percent.

The new pricing, puts the average yields on the bond at 0.22 percent higher than the yield of 15.16 percent from the Federal government bond, issued within the same maturity period. Similarly, the review was also accompanied by an extension of the scheduled closure of the offer to Thursday 29th November 2018, and with a 5-year maturity period. The bank aims to use the bond proceeds to finance its working capital, improve its loan growth and trade

financing. BusinessDay reported earlier this week that the bank was already engaging with institutional investors on the issuance, and had appointed Stanbic capital, FSDH Merchant bank, Rand merchant bank (RMD) and United capital as major advisers to the issuance. Global rating agency Fitch awarded an AAA rating on the bond, while GCR rated the bond AA-. This will be the third bond issuance by the bank since inception.

L-R: Clem Ugorji, public affairs & communications director, Coca-Cola West Africa; Chimaobi Okonkwo, country occupational health co-ordinator, Lafarge Africa Plc; Lola Alonge, executive director, Child Health Advocacy Initiative, and Clare Omatseye, vice president, West African Private Health Federation, at the Lagos Business School Sustainability Conference.

Friday 30 November 2018

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Renewables offers best opportunity to achieve climate goals – IRENA ISAAC ANYAOGU

new emissions gap report by the United Nations report says global efforts to curb climate change would need to be ramped up to stave off the worst effects of climate change as the world is failing to meet its 2015 Paris agreement. The International Renewable Energy Agency (IRENA), an intergovernmental organisation supporting countries in their transition to a sustainable energy future, says renewables are, in combination with energy efficiency, the key to uncoupling economic growth from an increase in emissions. Similarly, the United Nations in its report said new taxes on fossil fuels, invest-

ment in clean technology and much stronger government policies will like to check the current gap in emissions. With only 12 years left to keep global temperature rise below 1.5% of pre-industrial levels, the immediate decarbonisation of the energy system must be pursued at every level, the agency said. The G20 group of countries, whose members represent nearly four-fifths of global energy consumption and a similar share of installed renewable power generation capacity, are well positioned to lead the global energy transformation, the agency said. IRENA analysis estimates that G20 countries hold 75% of the global renewables deployment potential by 2030. Some of the key measures that are advancing

the energy transformation include large-scale power generation installations are increasingly being supported by auctions with record breaking (low) prices and innovative policy design.

Market

Others are feed-in-tariffs which have been successful in driving the solar PV and onshore wind sector in countries such as China, Indonesia, Germany and Japan. Fiscal and financial

incentives have played a significant role in driving largescale renewable deployment in several G20 countries. IRENA also said that biofuel mandates (especially in the EU-27) and fiscal in-

centives to advance electric vehicle use in the G20 are supporting an expansion of renewables in the transportation sector. “Overall, the experience with renewable energy policies in the G20 countries highlights the importance of stability and continuity in instilling investor confidence and attracting investment. To accelerate progress to levels required to keep global temperature rise below 1.5% of pre-industrial levels, a rapid and sustained increase in investment, backed by supportive policies and regulations, is required. IRENA said in doing so, the countries of the G20 will have an opportunity to provide global leadership on the energy transformation while ensuring a sustainable future with energy accessible to all.

Mini-grids

Power for All trains 400 state-level policymakers Recent developments in Africa’s clean energy sector e s p i t e A f r i c a Aliyu, 2018). countries. 15% of the South on Decentralized Renewable Energy being well enSeveral developments African population lack elecISAAC ANYAOGU

fy Malo, Power For All Nigerian campaign manager during the conference Power for All, a global advocacy campaign for distributed renewable energy (DRE) has concluded its training program for 400-state-level policymakers, faith-based institutions, civil society organizations and trade associations on how to use DRE solutions to accelerate the rate of electrification and end energy poverty in their respective states. The workshops, tagged DRE101/X-Learning Workshops are part of the Scaling Off Grid Energy (S.O.G.E.) project is designed to work with governments at national and sub-national levels to use DRE to increase electrification rates nationally and within states in order to make the target of the Federal Govern-

ment to achieve an electrification rate of 75% nationally by the 2020 realistic were held in Awka, Anambra State and Kaduna in October 2018. The Scaling Off-Grid Energy (SOGE) Grand Challenge for Development is funded by the Global Development Lab of the United States Agency for International Development (USAID) and Power Africa, and implemented in Nigeria by FHI360 and Power for All. The partnership aims to provide 20 million households in Sub-Saharan Africa with access to modern, clean and affordable electricity through distributed solutions. Ify Malo, country manager of Power for All, said, “Lack of access to electricity is arguably Nigeria’s biggest infrastructural challenge, and has forced people and businesses to resort to inefficient forms of energy and lighting through fossil fuels such as kerosene which comes with a lot of

costs: financial, health, safety and environmental costs. “As a global campaign, Power for All believes that the fastest way to achieve universal access to clean, modern energy is through the acceleration of DRE which eliminates these costs. The DRE101 workshops held in Kaduna and Awka were the conclusion of the first phase of the state-level trainings which held in eight states: Kogi, Enugu, Kano, Oyo, Cross River, Abia, Kaduna and Anambra and has increased the knowledge of policy makers on DRE. DRE solutions—which range from pico-solar solutions and stand-alone solar systems to mini-grids and mobile solar farms—have the advantage of being readily available, affordable, and immediately deployable. The workshops have produced numerous outcomes, which include plans for states to set up regional taskforces to drive DRE in their domains, research on how some states can share power generated, states pledging to adopt DRE policies and plans, collaborating with neighboring states on setting up an industrial park for the assembly of DRE components and starting discussions with developers on DRE investments in their domains.

dowed with a variety of natural resources, it has been a huge challenge for the continent to provide energy to its people. Sub-Saharan Africa has about 70% of its people without access to a reliable source of energy. Energy is vital for economic development. The continuous investment and development of the energy sector in Africa will greatly improve the lives of its people. More jobs are created, more wealth is available, and poverty also reduces. This article discusses the achievements and steps being made in the continent towards improving clean energy access. Over the years, it has been established that decentralised renewable energy will prove a faster and more viable solution to the energy problems in Africa. It can be located closer to load centre and has little impact on the environment. Also, according to the United Nations, renewable energy should be preferred over the use of fossil fuels in Africa because the continent is most vulnerable to the effects climate change due to rapid population change, human activities among other factors (Source:

Analyst: Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378,

have been made in accelerating sustainable energy access around Africa. Precious Ajuebor, Co-Founder of Offgrid Nigeria discussed these achievements with Gridless Africa in our weekly tweet chat. One of these achievements is the Noor Ouarzazate concentrated solar plant in Morocco. 160 of 580 megawatts (MW) of the total plant capacity has been completed and in operation since 2016 with the remaining capacity expected to be completed by the end of 2018. This project will provide electricity to over one million homes and the carbon reductions are estimated at 760,000 tons per year (Source: CNN and World Bank). Another major development is in South Africa, where solar energy is being sold to consumers for $0.075 per kilowatt-hour (kWh) (Source: IRENA). This price competes with several around the world such as Chile ($0.065/kWh), France ($0.089/kWh) and UK ($0.093/kWh) (Source: Maxx Solar). Having other African countries following in this line of solar energy cost reduction will be beneficial but also depends on individual factors in the

tricity access. Over in Nigeria, the countries rural electrification agency (REA) is also making strides in energizing rural areas and businesses. REA recently received approval for a $350 million grant from the World Bank for the Nigeria Electrification Project. This fund will be used to develop new mini grids, solar home systems and to power universities and hospitals. This will provide electricity to 2.5 million homes and 70,000 small and medium enterprises (Source: REA). Also, through the agency’s energizing economies initiative, three independent power projects, electrifying 50,000 shops have been completed in three major markets across the country. Finally, Gridless Africa has discussed with African companies dedicated to offering services ranging from solar mini grid development, energy management, block chain, research to financing and media. It is obvious from these that a lot more growth in the African clean energy field will be seen in the years to come.

Lanre Okanlawon is a co-founder at Gridless Africa

Graphics: Joel Samson

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Farmers as soft targets for Boko Haram make food security hard to achieve Stories by CALEB OJEWALE Twiiter: @calebtinolu

cores of farmers continue to be killed in some parts of the Northeast by Boko Haram, many of which go unreported. For as long as the killings continue and farmers have to stay away from farms out of fear, it will be impossible to achieve food security, much less, improve agricultural productivity. Importantly, without food security, the chances of achieving internal security will also be limited. Last week, 118 soldiers were reported killed in a Boko Haram attack in the Metele area of Borno state. While the nation was still struggling to come to terms with the reality of this loss, four farmers were killed in Jiddari-Polo, in attacks which some reports say the “victims were hacked to death”. The killing of these farmers is not the first, and certainly not an entirely new thing. And while the death of farmers may not get to the public domain as often as others, they remain equally important because, when fear makes it impossible for

Displaced farmers sit under a shed in the Farm centre IDP Camp, Jere LGA, Borno

them to farm, food production will also nosedive. During a visit to Borno and Yobe states in April, the city centres appeared calm, but the farther one moved towards villages (even when described as ‘safe zones’), the more the feeling of unease and fear. It is mostly in these outlying villages where farmers who venture into their farms are brutally killed. It is hard to say how many of the 30,851 deaths involving Boko Haram from May, 2011 till date as captured by the Nigeria Security Tracker, include these poor, struggling farmers. However,

their figures are likely to be higher than any other category of people, since they are the easiest targets. Abdulkadir Jidda, chairman, All Farmers Association of Nigeria (AFAN), Borno State chapter, said during an interview in Maiduguri, that, “since 2011 till date, there has been no serious farming activity anywhere (in Borno). Even in areas we say are fairly secure, they are not all that secure in the real sense of it. This is because the villages are not that secure, it is not easy to go there and all our farmers in the bush are already down. At a time, residents from 17

out of 27 local governments in the state were relocated to Maiduguri (as insurgents had overrun their homes.” Farmers couldn’t go more than 2km from Maiduguri to do any farming, because they could be shot at sight. Invariably, as Jidda explained, it made it difficult to engage in “any serious agriculture since that time, except in Borno south where there are some activities but even then many people are scared. “From here up to the North, East, to Baga, to the borders with Niger, Chad, and Cameroun, all these are no-go areas for anybody, let

alone farmers who have to spend the whole day on the farm,” he said. Nigeria was identified along with 30 other African countries, which remain in need of external food assistance, despite the country’s enormous agricultural potentials and continuous rhetoric on giving agriculture more attention. The FAO’s Crop Prospects and Food Situation report in September, illustrated how conflicts and extreme climate change threaten access to food in 39 countries, comprising 31 countries in Africa, seven in Asia, and Haiti in the Caribbean, which remain in need of external food assistance. For Nigeria in particular, it was noted that; persisting conflict results in population displacements, market disruptions and limited access to food aid in northern areas. According to the “Cadre Harmonisé” analysis, about 5.3 million people were assessed to be in need of assistance between June and August. Market functionality and livelihood activities remain disturbed by the ongoing civil insecurity, limiting food access to vulnerable households. The areas inaccessible

to humanitarian interventions are facing the worse food security conditions. As BusinessDay reported, the return to productivity in farming which represented the bulk of economic activities in most North-eastern states, remains shrouded in a cloud of uncertainty as displaced farmers are not adequately empowered to return to their lands in resuming production, while fear and despair also hangs over many residents. “Even recently, they killed about 15 of our farmers. They came and reported to me and I asked; what can I do about it? It happened in this Jere area where they went to clear their farms and gather some firewood. All of them were slaughtered on their farms, and there is nothing anybody can do about it,” Jidda said during the visit to Maiduguri. These farmers Jidda spoke about, are a minute fraction of those who get killed, more frequently than reported publicly. As many farmers told BusinessDay, there is a need to enable them work in safer areas, even if they are closer to the metropolis. Areas presumed safe enough for them to return, do not appear to be so safe after all.

Sudanese delegation visits Nigeria for collaboration on wheat, cassava transformation

presidential delegation from Sudan recently visited Nigeria, seeking collaboration on how the Northeast African country can become proficient in cassava cultivation to meet its food and industrial needs. Currently, Nigeria is described as the world’s largest producer of Cassava, which may explain the country’s choice for the intervention being sought by Sudan. A statement sent to BusinessDay by IITA, also mentioned helping the country to reduce wheat imports. The part about wheat is how-

ever unclear, considering Nigeria has also been unable to meet local demand for wheat production, and imports have continued to increase.The delegation from Sudan visited the International Institute of Tropical Agriculture (IITA), seeking a collaboration aimed at reducing the importation of wheat and saving the country’s foreign exchange. The collaboration is also part of a broader decision that would facilitate the introduction of improved cassava varieties to Sudan. “We are ready to expand into Sudan with a strength-

ened diversified portfolio to contribute to improved livelihoods and incomes for small-scale farmers in the country,” said Nteranya Sanginga, IITA’s DG. Leading the six-person delegation, Ahmed Mohamed Suliman, Vice-Chancellor of the University of Khartoum, said the country desired to become a cassava growing nation for the sole purpose of converting the root crop to cassava flour that would replace wheat in baking. According to him, Sudan plans to replicate the cassava bread model in Nigeria

that was developed by IITA and partners. He added that when implemented, Sudan will be able to make up the shortfall of flour that is currently being experienced. “Our Presidency is very much interested in supporting the inclusion of High Quality Cassava Flour in bread and other forms of confectionery as part of efforts to improve food security and the livelihoods of farmers in the country. On that note, I would initiate the immediate development of a MoU with IITA to serve as a guide to common interests between the two institu-

tions,” Suliman said. Abuelgasim Elzein, head, Department of Agricultural Biotechnology, University of Khartoum, expressed the view that even though the Sudan was not a cassava producing country, as soon as the cassava breeding program is replicated into the farming system, agriculture will take on a new dimension. On his part, Alfred Dixon, IITA Director for Development & Delivery noted that cassava as the third-largest crop in the tropics, is a major staple food in sub-Saharan Africa, providing a basic

staple for over half a billion people. He added that Sudan’s interest in cassava was a decision in the right direction as cassava is one of the most drought-tolerant crops, capable of growing on marginal soils. Dixon added that with the help of cassava experts from IITA and good agronomic and weed management practices, “Sudan in no distant time will be known for cassava production.” The visit of the delegation culminated in the signing of a Memorandum of Understanding (MoU).

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Why HIV/AIDS prevalence remains high in Nigeria …ignorance of status fuels spread of infection ANTHONIA OBOKOH

ay after day, Musa Isiaka, 34 years old and a security guard in Lagos, looked at the rashes on his skin, but could not explain the cause. According to him, initially he thought they were from mosquito bites, so I applied mosquito-repellent cream on my skin, but they did not disappear. “After sometime, I became very sick, and as the situation worsened, a neighbour insisted that I consult a medical doctor. As at that time I did not know my HIV status because I was always scared of what the result would be”, Musa said. “On that very day, I took a taxi and to the hospital. The doctor asked me to undergo some tests including HIV/ AIDS. At the end of the test, the doctor said I had AIDS, the doctor announced the result: it was AIDS, fully blown.” Isiaka has travelled back to his village, and who knows what has become of him now. His is not an isolated case because there are many Nigerians who are still very ignorant of their HIV status. As Nigeria joins the rest of the world to celebrate tomorrow (1st December) this is the 30th anniversary of the first World AIDS Day. Since the human virus emerged, HIV has become one of the world’s most infectious killers, infecting till date 76.1 million people and accounting for the death of 35 million people due to AIDS-related illnesses. The theme for this year according

to the National Agency for the Control of AIDS (NACA) “Know Your Status” is an opportunity for every community to unite against HIV, show support for people living with the disease and remember those who have passed away due to AIDS. In 2017, available data indicate that about nine million persons were counselled and tested, with 239, 542 testing positive. Out of this, 136, 987 were female and 102, 555 male, according to Araoye Segilola, coordinator of the National AIDS/Sexually Transmitted Infections Control Programme of the Federal Ministry of Health. New data on infection are expected in March next year, officials say. Segilola said that currently only 38 percent of people living with HIV/AIDS in Nigeria know their status, which means there is still a 62 percent gap to be covered. This situation is a significant threat globally, with about 36.7 million people living with HIV. With Nigeria having the second-largest burden in the world after South Africa with an estimate of 3.2 million people, only one million are said to be on Antiretroviral Therapy (ART). Industry official blame this on people’s reluctance to declare their HIV status. Sani Aliyu, director general of NACA, said that AIDS day presents an opportunity to remind the public of the importance of testing for HIV because, according to him, “having an HIV test is an essential step towards accessing life- saving HIV treatment.” He explained that as Nigeria makes progress towards putting everybody

self-testing, multi-disease testing and community-based testing, usually through free medical outreach programmes organised by NGOs, and faith-based organisations. Nonetheless, HIV testing programmes still need to be expanded with the help of political will and more investments. Lanre Yusuf, a medical doctor in Lagos, believes that while the HIV epidemic has been hard to tackle, Nigeria has done well in terms of availability of antiretroviral drugs. He says that the ART drugs could almost be classified as free, as long the patients come forward to do the test.

living with HIV in the country on treatment, NACA would continue to push for increased resources to be dedicated for prevention activities, which include improved access to HIV testing and widespread availability of self-test kits. Ojo Sikiru, a Lagos-based medical practitioner, says that early discovery of one’s status is key to containing the spread of the disease. “Every Nigerian should know their HIV status because with the drug treatment it can significantly reduce the risk of HIV infection from spreading,’’ he told BusinessDay in an interview. “HIV testing is important to know your status, for increasing treatment and ensuring that all people With HIV are offered preventive drug.” He said that men who have sex with men and have a partner infected with

Hygeia HMO promotes maternal wellbeing with Audrey Pack ANTHONIA OBOKOH

ygeia HMO, Nigeria’s foremost health maintenance organisation is promoting maternal wellbeing through the launch of Audrey Pack for mothers. Yearly, it is estimated that about 800 women die in every 100,000 live births, making it necessary for new approaches and collaborative solutions to address the high rate of maternal mortality in the country. To achieve this, Hygeia in partnership with the Audrey Pack Company to provide Audrey Pack for mothers to reduce the rate of maternal and child mortality rate in the country.

Obinna Ukachukwu, executive head for business development and strategy, Hygeia HMO’s said that this special plan which takes care of maternal needs was essential as a private-sector led initiative to improve the quality of healthcare that women get throughout their maternity experience. “Hygeia HMO has a long term goal to ensure that the vast majority of Nigerians get covered by health insurance and this is an effective way to pool the power of aggregated risks and use it to improve Nigeria’s efforts towards the crucial SDG 3.1 goal to reduce maternal mortality ratio to less than 70 per 100,000 live births by 2030. HyMat + the Audrey Pack get us closer to bridging that gap,” Ukachukwu said

in a statement made available to BusinessDay. The partnership also ensures that the HMO’s health plan for pregnant women comes with more benefits to help improve outcomes for pregnant women in the country. Lilian Odim, CEO and founder of the Audrey Pack Company said “in line with the SDG 3 goal, I believe that the health and wellbeing of mothers is an indication of the health and state of a nation.” “The decline in maternal and child mortality lies in the collaborative efforts between different industries, including the public sector. This is why I am certain that the Hygeia HMO Audrey Pack partnership will take us closer to this goal,” Odim.

Rotary Club partners Indo Eye care foundation to strengthen support in healthcare MICHEAL ANI

otary International has strengthened its partnership with Indo Eye care Hospital in Lagos to provide some health care support for the less privileged. The hospital which is still an ongoing project is a brain child of the Rotary Club Lagos Palm-Grove Estate in partnership with Indo Eye care foundation and Indian Communities. The long standing relationship has birthed a host of health care projects over the years which includes cataract surgeries (about 1,500 a year), distribution of eye glasses

(750 a year), distribution of artificial limbs, health camps amongst others all at no cost to beneficiaries who are mostly under privileged Nigerians. The eye hospital which is as a result of the overwhelming demand for eye related treatments is believed to have a far reaching effect as opposed to bringing in a team of doctors to the country annually. The hospital which aims at helping the under privileged is expected to carry out its first round of cataract operations in the last quarter of the current rotary year. The hospital is said to have a State of the art operation theatre for conducting eye surgeries alongside an Outpatient department as well as departments

for screening and optometry. The belief is that the hospital once in operation, will bring revolution in the healthcare zone for the under privileged Nigerian communities. Speaking at a meeting with members of the club, Barry Rassin, the Rotary International President commended its members in the country on their commitment towards the growth of the foundation. “Your dedication and support to our foundation is truly remarkable. You have a commitment to the Rotary that is making a difference .When you touch a life you change the future. We are a force of nature we have heart and the direction to make our world a better place.”

HIV, sexually transmitted infection (STI) and unsteadily use condoms, these set of people is considers high risk of been infected with the disease. “Working more on raising awareness about the importance of knowing one’s status and end all stigmas related to HIV testing will help curb the increasing prevalence,” Sikiru said. Despite major progress recorded in the fight against HIV/AIDS, a number of challenges remain. Data from the Joint United Nations Programme on HIV/AIDS (UNAIDS) show that in 2016, Nigeria had the highest share (26.9%) of new mother-to-child HIV infections out of 23 priority countries. It estimated that 37,000 children younger than 15 years were newly infected with the virus. But the good news is that that HIV testing can be done through

What is HIV/AIDS? HIV is a virus that attacks cells in the immune system, which is our body’s natural defence against illness. The virus destroys a type of white blood cell in the immune system called a Thelper cell, and makes copies of itself inside these cells. T-helper cells are also referred to as CD4 cells. If HIV is left untreated, it may take up to 10 or 15 years for the immune system to be so severely damaged that it can no longer defend itself at all. However, the rate at which HIV progresses varies depending on age, general health and background. AIDS is a set of symptoms (or syndrome as opposed to a virus) caused by HIV. A person is said to have AIDS when their immune system is too weak to fight off infection, and they develop certain defining symptoms and illnesses. This is the last stage of HIV, when the infection is very advanced, and if left untreated will lead to death.

Reddington hospital re-accredited as an international provider of quality healthcare

eddington hospital has been re-accredited by COHSASA (Council for Health Service Accreditation of Southern Africa) for a further three years until 2021 having recently been assessed and certified as consistent in meeting rigorous international quality standards in its healthcare practices. The hospital was initially accredited in July 2012 when it became the first independent hospital in Nigeria to achieve the award and in 2015, became the first healthcare facility in Nigeria to be re-accredited at the first attempt. COHSASA is an international accreditation organisation certified by the global regulating accreditation body, ISQua (International Society for Quality in Healthcare) to audit healthcare institutions against approved internationally-accepted standards, and to certify them when they meet the requirements. COHSASA is the only healthcare accreditation organisation in Sub-Saharan Africa. The award means that Reddington hospital continues to be compliant with global best practices in the quality of care and patient safety. Commenting on this achievement the Group Medical Director and Chief of Surgery at Reddington hospitals, Olutunde Lalude said: “It has been a challenging and rewarding experience for all of us at Reddington hospital to maintain quality standards and deliver service improvements while expanding the scope of services we offer. I want to recognise the entire Reddington team who have commit-

Olutunde Lalude

ted to the improvements which have culminated in the re-accreditation by COHSASA. The award is a result of the collective determination to raise standards of healthcare delivery and access in Nigeria to a level comparable with the best in the world” According to Lalude, over 2,000 criteria were assessed during a week by a team of healthcare professionals from abroad. The team scrutinised and assessed clinical and non-clinical areas such as Infection Control, Pharmaceutical Services, Diagnostic Imaging Services, Medical Science Laboratory, Dietetic services and many others. “This award is a culmination of listening to our customers and acting upon their feedback to improve services while continuing to invest in the best equipment and expertise. Being committed to service and quality improvements is a step toward significantly reducing medical tourism in this country,” said Emmanuel Matthews the hospital’s Chief Operations Officer, Who was also elated with the award.

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Habits that can trigger mental illness ANTHONIA OBOKOH

ome mental illnesses have been attributed to habits formed overtime due to unhelpful lifestyle patterns, mental health specialists have said. In an interview with Richard Adebayo, a consultant psychiatrist and clinical psychologist at Federal Neuropsychiatric Hospital Yaba said every decision and action people take as they go about their daily lives impacts mental wellbeing. This is why it is important to understand the apparently simple habits that can trigger some mental health illnesses. Habit is a settled or regular tendency or practice, especially one that is hard to give up. When talking about habits, which are individual practices that are capable of having effects on mental illness. There are so many, but the common ones among these habits include: Habits of taking psychoactive substance This refers to smoking of cigarettes, marijuana, cocaine, heroin and other hard drugs like tramadol, codeine and other mind bending drugs that can alter the functions of the brain and a lot of people in Nigeria are hooked up to those habits and also habits of drinking alcohol heavily and frequently, these are habits that have side effects.

Habits of sleep deprivation Most people being affected by this are those who are in the habits of sleeping late and taking drugs that will not allow them to sleep on time. Some people like taking coffee to stay awake, so the habit of sleep deprivation either deliberately or by use of certain substances to keep them awake. When people are in the habits, especially students who want to read so to keep them awake they take coffee or some other substances to stay awake. Even those who work in the office do the same, the long term effects results to stressing out the brain and in the process it gets to a stage the person can come down with some brain effects. Lack of rest Those who do not take time to rest, work all through the week, and suffer stress of the road fatigue but still do not find time to rest at the weekend. So practically they do not have enough rest to help their state of mind, people like that the kind of habit they imbibe is not helpful for their mental wellbeing and it can make someone come down with mental illness. Food deprivation Not eating at the actual time and eating the right food matters a lot to one’s mental wellbeing. The kind of food we eat contributes to mental illness. When the body lacks nutrients and vitamins it can affect the brain

both in adults and children. Eating habits are also very essential to mental wellbeing. People take junks instead of eating natural foods of vegetables and fruits that will boost their immunities and wellbeing but rather they prefer taking junks that could probably be adding to weight gain and becoming fatter, and this can affect mental alertness and wellbeing. Other habits, some people do not take their health seriously Some people do not take care of their health; they have a kind of apathy for their health. They do not go for medical check-up in terms of knowing their blood pressure and other general body checks and they are not aware of the condition so that they could manage it on time before they have complications. An individual who those not care about medical check-up may eventually come down with stroke which can cause depression and could affect mental wellbeing. Sedentary lifestyle An individual who also has the habits of sedentary lifestyle may not have the time to exercise. This is not good enough for mental wellbeing and people like that may eventually come down with mental disorder. These habits that are general from all medical conditions can also apply for mental wellbeing, so an individual who does not key into all these, more or less pushes his or her self to the edge of mental health disorder.

Echo lab to bridge gap in medical diagnosis AKINREMI FEYISIPO

s part of its efforts to bridge the gap of low diagnostic capacities in the country, Echo Lab in partnership with Integrated Diagnostic Holdings (IDH) has launched a state of the art laboratory in Lagos to address advanced and comprehensive laboratory services. The group said the rationale for this move was to close up the knowledge and technology gap lacking in the medical diagnostic field as well as consolidate the sector through the experience of IDH who happens to be an international player in the industry. Speaking at the launch of Echo Lab formerly Echo Scan in Lagos, the Chairman of the company, Benson Ayodele Cole ,a medical doctor stated that the partnership has aided in the eradication of challenges of human error in the diagnosis process through the procurement of latest equipment in the field. Rather than assumptions as the case was before, he said the newly acquired types of equipment are supported with computer-aided abilities to reduce human interference. The Echo Lab boss said this expansion of diagnostic services in the country seeks to also tackle the issue of medical tourism as well as harness the medical diagnostic market. Echo Lab who already have 10 locations Nationwide now renders services in pathology, molecular

HBL Team

R-L: Dr. Benson Ayodele, Chairman; Dr Abimbola Jimoh, Chief Operating Officer, Echo Lab Radiology and Laboratory Services; Babajide Ibironke, Chief Financial Officer; and Pius Ihimekpen, Sales and Marketing Director, during the launch of Echo Lab in Nigeria, in Lagos.

diagnostic, genetics testing and radiology as part of the expansion. The IDH Business Development Consultant,Khaled Mostafa AboulEnein,a medical doctor remarked that the medical diagnostic market was pegged at 50 billion naira in 2015 and has been projected to hit about 300 billion naira by 2025, hence the opportunity for a better healthcare through medical diagnosis is enormous. According to him consolidating the market was part of key factors identified that could drive the growth of the sector adding that most public hospitals offer only basic low-cost test which has caused a fragmented market for private sec-

tor diagnostic centres because most private hospitals tend to outsource advanced testing through diverse centres. This he said raises the question of quality and global best practice delivery in the field. He, however, was optimistic that with IDH’s experience models that have worked in other countries of their operations like Egypt will work for Nigeria. “With an investment of 25million dollars in the next three years, we plan to extend the expansion Nationwide with footprints of quality standards; we hope we might be able to keep more Nigerian doctors at home.”

BUSINESS DAY

Executive Travel Health

Diabetes and Travel Ade Alakija

Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos.

n Nigeria about 5.5 percent of Nigerians have diabetes and about 4 million have Type 2 (Adult onset) Diabetes. In the UK about 3.5 million residents have been diagnosed with Diabetes. Preparing for travel: Modern day travel can be stressful for many people, and sometimes more so for those with medical conditions especially chronic conditions such as Diabetes. The advice below may vary depending, on if you are on Insulin or oral medication. With careful preparation, the trip should go on without incidence, and you should enjoy a pleasurable and rewarding experience. Make sure you have a Traveller’s Check list (https://www. diabetes.co.uk/downloads/guides/ travellers-checklist.pdf) Also have a specific Diabetic Kit Bag and about 3 weeks before you go, make sure you have enough spare insulin and spare blood test strips to see you through your trip and back to your doctor/pharmacist for more supplies. Plan in Advance: Discuss your travel plans with your Diabetic Consultant, Family Doctor or Travel Consultant preferably 8 weeks before your travel date. Blood glucose should be monitored more frequently due to change in meal times and activity levels especially on long haul flights. Gets a covering letter from your Doctor explaining the need to carry medication? You may need to carry medication, needles, syringes and insulin which may cause problems for you at immigrations and customs. Make sure you have enough supply of your medication for at least a week after your planned date of return. Carry all medication on you in your hand luggage along with some carbohydrates or sugar/glucose in case of delays, and you could also give some to a responsible adult travelling with you, who should know about your condition and should be able to assist you in any crisis situation more so if you will be undertaking sporting activities and adventure travel. In checked in luggage, medication can get lost, damaged and in some transport situations may get frozen and rendered useless. Wear some form of diabetic identification tag especially if hypoglycaemic attacks are a concern. Arrange for adequate travel health insurance. As a pre-existing medical condition it must be declared to the insurer. If your diabetes is not well controlled you may need to inform the airline you are travelling with. Things to note during the journey: There may be dietary problems en route and at the destination. Delays, cancellations re-routing or stopovers can affect you. Carry extra food and snacks. Remember fresh foods may not be allowed into some countries. Traveller’s diarrhoea and resultant dehydration may be more serious. If prone to travel sickness, take an anti-sickness drug

in advance of travel or wear pressure point wrist bands. Note that persistent vomiting can lead to hypoglycaemia and along with fever and diarrhoea ketosis may develop. There is a higher risk of fungal infections like Candida and athletes foot especially in hot and humid environments due to moist skin. Wounds and bites may become more easily infected. Insulin users should be prepared to adjust the timing of insulin administration which is more complicated in the elderly especially on long journeys. (Keep to your local time until you arrive at your destination then gradually adjusts to the destination time). Insulin users may experience hypoglycaemia during flight and should adjust food intake if the need arises. Those on diet and or oral medication only, usually travel without problems. Try to get information on the availability of the different types of insulin available in the country visited and also types of food available. Insulin can remain stable for up to a month at ‘normal room’ (8-28°C) temperature. Extremes of temperatures can reduce its activity. Insulin must not freeze. At your destination use a refrigerator if available. Note that extremes like high altitude, cold and hot climates can affect insulin storage, absorption and glucose monitoring. Minimise alcohol especially while airborne. Vials should be kept in a cool, dark place e.g. vacuum flasks, polystyrene containers etc. Adjust your insulin according to your level of activity, also your diet and oral medication. The rate of insulin absorption may be affected by climate. Watch your calories as sugar level in foods vary from country to country. In warm climates, maintaining a high fluid intake to compensate for loss is important. Glucose strips should be carefully stored as humidity may affect accurate readings. Some Glucometers tend to under read at altitudes above 1500 meters. Also in cold conditions, try to keep the glucometer warm (in insulated pouches close to your body). Take readings in the shade and away from wind and use large drops of blood to prevent drying. Foot care is very important; wear adequate footwear for protection against injury especially on the beach were hidden hazards may lie. Take first aid kit for minor injuries and observe the ‘Sick day Rule’ if unwell. That is travellers should ensure they are aware of how to maintain glucose levels when ill, how to check urine for ketones and when they need to seek medical attention. Remember a high BMI which is a calculation based on your Height, Weight, (sex and age especially in children) (Normal range 18.5 – 24.9) 25 and above is overweight and 30 and above is obesity) puts you at high risk for adult onset diabetes (Type 2 Diabetes) and diabetes is strongly associated with heart disease, so watch your weight and BMI at all times. Don’t forget you can suffer from other travel conditions like jet lag and this should not be misinterpreted, but if you are not sure seek medical advice. Have local currency on arrival for any emergency purchase. Visit www.istm.org. Remember to always have a mobile phone that can roam in all countries to be visited. Have a safe trip and most of all, Enjoy Yourself.

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

BUSINESS DAY

FinTech News

Products Review

Technology Review

Personality Review

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Friday 30 November 2018

Company Review

How MTN is building its mobile banking empire, one brick at a time Stories by FRANK ELEANYA

outh African telecommunication giant MTN Group may have made its ambition to secure a mobile money license in Nigeria public knowledge; it is however not resting and waiting for 2019 when the Central Bank of Nigeria will come knocking on its door with the coveted license. The largest mobile network in Africa rather is positioning itself one strategic partnership at a time for the spot of the largest digital bank on the continent. It could have seemed improbable many years ago that a non-banking entity would be the dominant force in the financial services segment, but with the digital revolution driven mostly by incredible mobile phone penetration growth, nearly everything has turn 360 degrees. A mobile telecommunication network can now aspire and by the looks of things, there may be no stopping it. MTN which has a mobile money treasure chest of 22 million customers made two important announcements in November. First it reportedly unveiled

a smart feature phone as part of plans to stake a claim in Africa’s mobile hardware market. The hardware of the smart feature phone will be created by China Mobile, with a faster 3Gs smart chipset created by Chinese technology company Unisoc. The phone, according to Quartz Africa, may not have the advanced computing abilities that would make it a smartphone, but it has a specialized operating system that allows it to run popular social media apps and simple email formats. KaiOS technologies a

company that specializes in creating a smart phone user experience for feature phones will run the phone’s operating system. KaiOS promises to feature localized apps alongside international favorites on it. The MTN smart feature phone will offer users WiFi and Bluetooth connectivity, the Google assistant and ease of access to social media apps. The phone will be launched in Nigeria and South Africa in the first quarter of 2019, and will retail at $20 to $25. The company plans to expand distribution of the phone to 15

other African countries where it operates. “It means they have been looking at their data and have seen the population of feature phones on their network,” Emeka Azuka Okoye, CEO of Cymantiks Nigeria Limited told BusinessDay. MTN’s bet on smart feature phones clearly aligns with its mobile money plans. They have become integral to the success of mobile money and hence the primary way of providing financial services to the 115 million Nigerians without a bank of account.

In this regard, the feature markets have seen remarkable growth in recent times. For instance, feature phone shipments to Africa surged 32 per cent year-over-year in the second quarter of 2016, while smartphone shipments declined by 5.2 per cent. The growth is being attributed to a new breed of manufacturers who are building affordable and durable feature phones with capabilities such as LTE data connections, email and web, and text to speech combined with long battery lives (lasting up to one month standby time). The MTN phone also has a front and back camera and promises a longer battery life, which would be a plus in a market like Nigeria where electricity is not always guaranteed. Secondly, MTN has also announced a joint venture with fellow mobile giant Orange Group to enable interoperable payments across the continent. The mobile wallet interoperability (Mowali) service makes it possible to send money between mobile money accounts issued by any mobile money provider, in real time and at low cost. Mowali will benefit from the reach of MTN mobile

With Habari, GTBank vies for “everything” digital

t Social Media Week Lagos in 2017, Segun Agbaje, CEO of Guarantee Trust Bank (GTBank), described the bank that revolutionized USSD transaction with the now iconic *737#, as a technology company. With the unveiling of Habari a platform that does “everything”, the bank appears to be making

true that mission. By everything, users, irrespective of the banks they use, can directly access the largest catalogue of local and foreign music and videos online, lifestyle contents like books that cut across literally genres, a seamless shopping experience and be able to connect with friends on the Habari platform. The

objective is to keep customers coming back as much as possible. It is the first of its kind for a financial service organization not only in Nigeria but in Africa as a whole. Habari will also put major ecommerce players like Jumia, Kong and social media platforms like Facebook on high alert given that it is aiming for a share of

their markets. Segun Agbaje alluded to this ambition in his statement during the launch. The goal of Habari, he told the audience is to “create a platform and partner anybody who has a service to offer, so that if as a customer, one comes into our ecosystem, you can do just anything. You could do your banking business; buy tickets,

insurance, travel. If you want a 10-day pay day loan, you can do it. So, really we want you to come into our ecosystem, maybe five times a day to do different things other than banking.” Interestingly, Agbaje does not describe Habari as a banking application, rather he sees it as “a journey towards building a platform that con-

money and Orange Money bringing together over 100 million mobile money accounts and mobile money operations in 22 sub-Saharan Africa’s 46 markets. Mowali also enables interoperability between digital financial service providers beyond MTN and Orange operations and markets, to support the existing 338 million mobile money accounts in Africa. “From the customer’s point of view, this means “I can pay or receive money anywhere from my mobile account regardless of my operator”. The system would unlock further innovation in the digital financial space within the continent,” Ndubuisi Ekekwe, founder of Famiscro Group wrote in a LinkedIn post. “This is the greatest threat to MPesa in East Africa at least. They are building a new layer we need in Africa.” Should CBN make good on issuing licenses to telcos in 2019, MTN automatically grabs the top spot in the market in Africa. With the largest mobile subscriber numbers, a smart feature phone and Mowali, even Safaricom the leader in mobile money services on the continent knows the game is up. Make way for the new king of mobile banking.

nects” GTBank’s customers to everything they need, and which continues to evolve with their lifestyle. Habari however did not get off to a smooth start on launch week as customers reported minor service interruptions. Although the interruption has been resolved, some experts worry that the platform is taking too much too soon.

Friday 30 November 2018

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BUSINESS DAY

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

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

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

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

A unique offering by the seaside OBINNA EMELIKE

henever you visit Lagos on a business or leisure trip, there is a place to experience because of its uniqueness. First, from its name, Protea Hotel By Marriott Kuramo Waters is set in an environment that offers guests a piece of mother nature. From the fresh breeze, panoramic views, the therapeutic effect and ensuing tranquility, the hotel is nature-friendly. As well, it has sustained the friendliness and quality offerings for 13 years now. Again, the hotel environment is a break from the noisy metropolitan Victoria Island, which is courtesy of the several business and corporate activities hosted

on the island. On offer is a cluster of blocks that combine to offer 60 well-appointed rooms most of which are with panoramic sea views. From Regal, Diplomat, Superior, Opulent, and Mandela suites, all the guest rooms come standard with a work/travel desk, private living room in all of the suites, balcony and most especially, the ocean views. Aside the state-of-the-art guest rooms, other amenities that ensure getaway for guests include worldclass restaurant where Gavin Curt Kilowan, the South African-born executive chef of the hotel, leads a team of culinary experts to satiate all palates with local, continental and special menu offerings. Other offerings include a piano bar, a gym/fitness centre, swimming pool, contemporary bar stocked with

variety of wine menu, lounge among others. The hotel is also a boost to corporate events with meetings and banquet halls equipped with modern audiovisual facilities, teleconferencing, wifi among others that are wooing the Meetings, Incentives, Conference and Events (MICE) market. The newly constructed facilities hosts from 80 to 150 guests. As well, the hotel, which targets high class clientele that want quiet place away from the hustle and bustle of Victoria Island, also offers outdoor barbecue with seaview in the evenings amid live music performance. Another reason to visit the hotel is the fact it has maintained its quality over the 13 years it has been in the hospitality business. It is also the sustenance of the quality that favoured it among the only two hotels that scaled

through the Marriot quality test when they acquired Protea Hotel Group in 2014. It would be recalled that there were 11 Protea hotels in Nigeria before the acquisition, but Marriot retained only two (Protea Hotel By Marriott Kuramo Waters and Protea Select Ikeja) based on their own expertise and quality and standard influenced criteria. For Protea Hotel By Marriott Kuramo Waters to scale through Marriot’s standard gauge, the hotel is truly worth a visit because of the value for money offerings of the Marriot brand. While the branding is a great achievement, the hotel is making efforts at improving on the standards that took it to that level as Marriot can always pullout its brand from partners that fall short of its standards. “Some qualities made it possible for us to get the Marriot branding, so it means we already have what it takes to be a Marriot brand, what we have to do now is to keep up the good work, the quality and the hospitality expectation”, the hotel assured. As the hotel participates in Marriott Rewards, guests and members can enjoy their Elite benefits and earn points or miles for their stays in the hotel. However, the hotel hopes to expand to boost its offerings. As well, Marriot, the manager of the hotel, urges gusts to visit to enjoy nature, live music, after Church lunch buffet on Sundays, business express lunch on weekdays, happy hours in the piano bar, a gym, swimming pool, among other exciting activities.

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

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

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

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

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

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

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

BUSINESS DAY

Friday 30 November 2018

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Sports

Falcons coach Dennerby says focus now on AWCON title … As NFF hails Falcons blistering performance in Ghana … Falcons seek revenge against Banyana Banyana of South Africa Stories by Anthony Nlebem

fter securing a ticket to the FIFA World Cup, Nigeria’s next target is to retain the Women AFCON title by beating South Africa in Accra on Saturday, says Super Falcons, Head Coach, Thomas Dennerby. The Swede tactician was on his feet for most of the semi final against the Indomitable Lionesses of Cameroon in Accra on Tuesday, which exhausted the statutory regulation and extra time and then went into penalty shoot –out before the Cup holders inched past their bitter rivals into the Final and a place in France. He said at the post-match conference: “When we arrived in Ghana, we made it clear our first target was the ticket to the World Cup, and after that, retaining the trophy. Now, we have achieved our first target. On Saturday, we have the opportunity of achieving our second target. We will go in there and give it our best shot and take the trophy back to Nigeria. “Sincerely, I was not happy with our performance in the first 20 minutes of the match. We lost the ball too many times; we were too anxious and the defenders and midfielders couldn’t contribute to the attack. However, the

positive from this tournament is our defence is very good. We have a compact team and that is why we made it today. Going to the World Cup, we need to improve the way we attack. We need to create chances and make the best use of the opportunities that come our way.” The Super Falcons will take on the Banyana Banyana of South Africa in the Final of the 11th Women Africa Cup of Nations at the Accra Sports Stadium on Saturday, start-

ing from 5pm. Barrister Seyi Akinwunmi,First Vice President of the Nigeria Football Federation (NFF), Barrister has declared Tuesday’s battling win over Cameroon and the accompanying qualification for the FIFA World Cup and the Women’s AFCON Final as justification by the Super Falcons of the NFF’s confidence in the team. “I feel elated, and I am sure that my colleagues on the Board of the NFF will feel the same way

anywhere they are presently. The NFF has always had confidence in the Super Falcons and we are happy we got this World Cup ticket. “It was not easy and it could not have been easy, as that was a semi final match (against Cameroon). The Cameroonians were the hosts in 2016 when we beat them in front of a capacity crowd to retain the trophy, so they came with every ounce of strength and tactical knowledge to try and gain revenge. But champions would always be champions

and we overpowered them.” Akinwunmi gingered up the Falcons with inspiring words at lunch on Tuesday before the team departed for the Accra Sports Stadium, and the players admitted after the game that his charge to them to go and conquer, and expression of faith in them to retain the trophy for Nigeria, kept ringing in their ears even when the going got tough. On the preparation for the 2019 FIFA Women’s World Cup finals in France, the Chairman of Lagos State Football Association and Member, CAF Youth Competitions Committee told thenff.com that there would be no half measures. “The FIFA World Cup is the FIFA World Cup, and we must put in place a proper and comprehensive preparatory programme for the Super Falcons. We must utilize all the available FIFA windows for the team to play friendlies. “After the final match on Saturday, the NFF will ask Coach Thomas Dennerby to submit his program and we will take it from there.” Nigeria is one of only seven countries in the world that has qualified for all the editions of the FIFA Women’s World Cup since the championship was launched in China in 1991. The others are the United States of America, Germany, Sweden, Brazil, Norway and Japan.

Mikel unveils football clinic to unearth football talents … clears air on his future with Super Eagles

lympic medalist and Super Eagles captain John Mikel Obil has revealed his plans to open a football clinic; ‘Mikel Obi Foundation’ where future football starts will be discovered. Speaking in Lagos to herald the launch of the foundation, the former Chelsea midfielder said the aim of the Mikel Obi Foundation is to unearth hidden football talents and to give back to the society. “Home is where it all started for me. Nigeria is where it all started for me. I will always want to give back to Nigeria, to my community. As some of you know I grew up in Jos, and my parents still stay in Jos. So for me, it’s all about giving back to the kids, and that’s why we are here today, ” said the “We are here to impact kids (through) football, sports. For me it’s all about football, but you also need to go to school, and you also need to play football hoping that one day you guys will be representing Nigeria, the national team, or some of you will be playing for Chelsea, Manchester United, Ar-

senal. I hope one day one of you guys will actually lift the premiership title. He further added that he hopes that the Mikel Obi Foundation im-

pacts positively in discovering and “I hope that the Mikel Obi Foundation can help you guys achieve this goal that you have in mind, and I will be here to support you

and make sure that I support you in any way that I can.” Mikel added that the foundation is in discussion with top European clubs to equip kids with foreign

skills. “Yes, we have had discussions with good clubs, not only in England, but also in different European countries and everything seems to come into place, and this is why I said this is the right time for me to start it because I know I have everything that I need to start it. ” The Foundation will targeting kids from nine years old to eighteen years. “So the kids, we’re looking at from age 9, but we’re still deciding on the final stage of the age limit, mostly should be the kids. But we might have space for people from 18 years old or above. It is something we’re looking into. Mikel also used the opportunity to clear the air over his future with Super Eagles amid speculations that he has retired from the national team. “I have been on break. I am not tired yet, i think the day i will retire, i will let everyone know before i make the statement, Mikel said. Mikel has the English Premier League, UEFA Champions League, Europa League, FA Cup, AFCON among other laurels to his honour.

Friday 30 November 2018

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BUSINESS DAY

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Friday 30 November 2018

A look at movie funding with God Calling model Stories by OBINNA EMELIKE

n 1992 when Living in Bondage, a directto-video movie was released, it marked the beginning of the boom in the video film era in Nigeria. Then, quantity was the concern of the marketers who bankrolled the entire movie production. However, quality, especially in technical aspects of the production was missing due to the lack of adequate funding to train people in filmmaking, procure modern production equipment, world-class postproduction studios, good script writers, professional directors, among others. Today, Nollywood, the acronym for the Nigerian movie industry, has recorded some feats, but funding is still a big challenge for filmmakers due to seemingly impossible conditions for credit facilities, especially high interest rates (as much 23 percent) charged by banks.

However, some investors are beginning to take interest in movie funding due to the success stories, and especially the structure and booking keeping movie makers are putting in place in recent times. One of such investors is Yomi Jemibewon of CardinalStone. Jemibewon has taken interest in the creative industry with the understanding that it is one of Nigeria’s largest non-oil exports. Jemibewon is funding his movie production with God Calling, a story of redemption that looks at the life of Sade, her family and her faith through the lens of an unconventional encounter with God in this modern age. Explaining the reason for funding the movie, Jemibewon noted that it is his belief in BB Sasore and Derin Adeyokunnu; the two people behind the movie. “I have been mentoring them for a couple of months and found them to be an interesting combination.

A scene from the movie

They are very creative and passionate about what they do, but also very pragmatic, analytic and practical”, Jemibewon said. “They talked about their movie project very pragmatically, went on to say how much it could make

L-R: Derin Adeyokunnu, executive producer; Momo Spaine, producer, and BB Sasore, writer/ director, God Calling.

and were practical about their expectations. Putting all these together, I thought that it is a good project to embark on,” he explained. Beyond the pragmatism of the duo, the investor thinks that movie makers can now source funds easily because of huge improvement on quality of movie content, technicality, the quality of the story, the storytelling, the cinematography, and the delivery, which endeared him to God Calling. “I think people are going to school to learn filmmaking because Nollywood is now paying attention to the craft, to the audience and we are seeing movies that are more professionally done. They are now telling more of the stories of our lives; stories that are more relatable than the usual juju things,” he enthused. Using Sasore and Derin

as example, he explained that he was wooed to invest in the movie project because of the structure the owners put in place with the understanding of the risk the investor is taking. With the structure, he said, “Slowly and slowly, the Nollywood business is becoming more attractive for people to try out because there is enough there for you to bet”. On why movie makers are going after private investors instead of banks, Jemibewon explained that banks and most financial institutions in Nigeria are not structured to invest in such projects because they run on depositors’ money. Banks are not allowed to put money in things that are considered high risk. “Though these projects may have high returns, there are structures and requirements they must meet

before the banks invest in them”. For him, movie makers in Nigeria will keep looking the way of alternative funding because banks do not have the time, capacity and infrastructure to assess the opportunities and risks like specialised institutional investors. All they do is make quick decisions, collect collaterals, (which filmmakers may not have) and move on. “I don’t have to do all that because I have mentored these people. Again, the more people like Derin and Sasore show that they are consistent and offer a portfolio of products, then they will be able to go to the bank because they have portfolio of products that are genuine with cash flow that can become collateral for the banks”. More also, Sasore is appreciative of the easy funding and does not bother with the stress of repaying bank loans. “I think our film industry has so much potential but lacks the infrastructure and resources to compete globally. I believe the faith-based genre could do for Nollywood what martial arts did for Oriental Asia, or romance did for India”, he explained. On his inspiration for the movie, the movie maker said, “As a filmmaker, I considered how the world is looking to our continent for original stories, and how the Bible is filled with the most original stories that we each experience in our own way everyday. It led me to think of how religion would adapt to time and geography, and this is what birthed ‘God Calling.”

Enjoy exclusive entertainment, lifestyle offering with XclusivePlus

f you are an entertainment lover and wants to enjoy multiple benefits including; free cinema tickets all year around for movies, free premium events tickets for concerts, comedy shows and art exhibitions, then get onboard Diamond Bank XclusivePlus, a premium lifestyle subscription service for the bank’s affluent banking customers. The service also offers lots of great discounts from a wide range of merchants across the country ranging from restaurants, bars, hotels, shopping and much more. XclusivePlus subscribers are also invited to various

seminars, conferences and round table discussions covering a wide range of topics such as Wealth Management & Investment, Economic Outlook, Financial Planning, Assess to Finance and lots more. These events will give them the opportunity to acquire knowledge from industry experts and network with like minds. Speaking on the XclusivePlus proposition, Kari Tukur, head, consumer banking, Diamond Bank Plc, said, “We have seen a rise in customer spend in the past few years for luxury travel, luxury experiences and luxury products among the emerging affluent

client segment. Our proposition is well positioned to further enhance their lifestyle and provide them with the most satisfying rewards.” She explained that “XclusivePlus membership comes with an automatic card upgrade to the Diamond Visa signature naira debit card. Diamond Bank is the first bank in Nigeria to go to market with this card. This is a naira card with higher spend limits and enabled for international spend. With this card,our customer will enjoy lots of world class travel and lifestyle benefits such as free access to over 800 Premium airport lounges globally, great

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Friday 30 November 2018

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BUSINESS DAY

Business Etiquette

with Janet Adetu

Movie Review: WIDOWS Linda Ochugbua

f you love an action movie that has a perfect twist in its storyline, then this new movie “Widows” is just the right match for you. This movie reminds me “Den of thieves” from early this year. Even though the title has a misleading feel to it, which got people thinking it would just be about women. We were completely wrong, as this movie was filled with action and suspense from start to finish and the nice twist at the end of this movie kept us even more thrilled. The 2 hours movie had everything going good for them - from cast to the fantasy production, nice costumes, crew, nice locations and beautiful storyline. I am always excited when I review a movie with a perfect storyline; this was absolutely one of them. What was also very nice about this movie was how they created flashbacks in between the entire movie, taking us back and forth and telling us why things occurred plus, the epic end just made it extremely amazing. The movie started with the lead actress Veronica from Black Panther and Harry Hawlins her white husband; they really loved each other so much one will think nothing could ever go wrong. They had no kids at the beginning, but we only found out at the tail end that they lost their only son to a fatal car accident. It was so devastating for her, because at that age she couldn’t have another child. Few minutes into the movie we saw that Harry her beloved husband went for a robbery operation that went bad where he lost his life and that of 3 other members of the group. It would have being a very successful operation as they made away with two million dollars, which all got burnt in the process of them trying to escape. Their bodies got roasted beyond recognition that it was so hard to tell or differentiate one from the other. This movie got into full gear after the death of their husbands; all the widows had to suffer as their husbands left them all with nothing and even a debt of 2m to pay for.

They all had nothing to fall back on and even the lady with a store, had no clue that her husband had pledged the store to some group of bad guys he owed some money. All the widows were left in misery and a debt they knew nothing about, but had to pay or lose their lives and that of their kids to a bad guy “Jamal”. You need to watch the movie to see how they conspired to pull off another last mission to acquire enough funds to pay back their debt, avoid being killed and start up a new life. It was scary when the operation almost went south, but for courage and tenacity, they went on till they completed the mission. It had such a fantastic and thrilling end. My Verdict:

This movie deserves a 9/10. The production cast and crew were very good. I am always keen on having an exciting a storyline with a nice twist and a fantastic unexpected end. Although there might have been some very little loopholes, it wasn’t enough for me to score this movie

low. So if you are a lover of action and drama, you definitely will enjoy this brand new movie; you should check it out before it’s out of the cinema. Movie Credit: Cast: Viola Davis, Michelle Rodriguez, Elizabeth Debicki, Cynthia Erivo, Colin Farrell, Brian Tyree, Daniel Kaluuya, Garret Dillahunt, Carrie Coon, Jacki Weaver, Liam, Neeson, Lukas Hass Genre: Drama Director: Steve McQueen, Ratings: R (for violence, language throughout, and some sexual content/nudity) Written by: Steve McQueen (111), & Gillian Flynn, Runtime: 128 minutes Studio: 20th Century Fox Feel free to review any movie of your choice in not

more than 200 words and share via e-mail linda@businessdayonline.com You also stand a chance to win a free movie ticket when you answer the question of the week on social media correctly. Twitter & Instagram - @lindaochugbua

Mentoring with purpose Can you take up the Challenge? ver the years while pursuing my career, I developed goals, ideas and aspirations of where I wanted to be. Looking from a distance there were people I met that inspired me based on their achievements, the impact they had on me and the value they added to many others. It has always been a natural desire for me to add value to other people both knowingly and unknowingly. Little did I know that I was mentoring people and inspiring them from a great distance. It becomes overwhelming yet self- fulfilling when you hear what impact you have had on another person just by simply being you. Today mentoring is a great asset to those who seek advice and guidance from a seasoned person of value to them. It is also a great asset to those who have what it takes to share with others their experiences in life and use it to make the lives of others much better. Of course it takes maturity, discipline, understanding, tenacity and traits of super leadership potential to carry this out successfully. I am happy to say that I am a Cherie Blair Foundation International Mentor. Interestingly it is not given on a platter of Gold it requires taking an exam and passing to tell you that not everyone is cut out to Mentor. For the last three years I have been mentoring on an international scale. One of my mentees from Vietnam is always happy and excited at having our sessions because she has expressed how she is able to improve her English language, express herself and speak much more which is rare for her on a daily basis. I am also pleased to be a Wimbiz Mentor, I am excited to see where my mentees are today reaching greater heights. As a lifestyle Connoisseur, Transformation and Performance Coach as well as a Philanthropist I also have a host of mentees across the globe. Sharing minds, ideas, advice and experiences has helped me to help them develop their businesses, increase confidence, steer their course and build on their personal development. The impact to date has been very rewarding for me the Mentor as well as my host of Mentees.

As a mentor what is your goal or objective? How can you impact others? How do you know when you are mentoring with a

purpose? To measure ones impact or success with mentoring is to measure where you were as a mentor at the start of the mentoring period to where you are at the end. Your mentoring time can be time bound or ongoing but it must yield results. Frequently Asked Questions About Mentoring: What does it take to mentor? I agree it can take a bit of your time if you are committed and dedicate to adding vaue. However it does not necessarily involve physical visits it is entirely upto you and your availability. With new technology using audio and face calling like skype works just as well and is equally effective. What does it take to mentor? Does age matter in choosing a mentor? As a professional you will be surprised who may ask you to mentor them. It is not necessarily age or gender specific. It is no doubt easier and possibly the common norm

to mentor someone slightly younger than you but the idea is for you to share your wealth of experience, your challenges, mistakes, and successes all together. It is not out of place to find yourself mentoring someone who falls within your age bracket or older. If your life inspires others, leverage on that and create impact. What if you are not in that line of business can you still mentor a prospective candidate? If the mentee is seeking assistance for business purposes then being in that the line of business is n added plus. All businesses have some structured common goals, from being a start- up, to business growth and business success. Should a mentor give direction on what to do? Mentors should seek to know more about the mentee by asking questions on where the journey is now and where the mentee is hoping to go from there on. Care must be taken in giving direction or advice that may not be so-

licited. Offer general guidelines, suggest solutions, share information that is relevant to the mentee and walk the journey with them. Constant questioning is key to progress from the start, this way when action points are determined they will be accountable to the mentor in following through. As a mentor you are simply the accountability partner that helps a mentee reach their goals. Is Coaching different from Mentoring? Yes it is! You can be both a coach and a mentor to different people provided you are aware of the goal and the objective of each relationship. A coach is someone who offers services for a fee, while a mentor does not take financial rewards. A coach is not sharing experiences but helping you reach your goals through a structured process. A coach is also an accountability partner but with intention and deeper purpose. A coach helps you reach your goals faster than

if you were to go alone by helping you beat the act of procrastination. Coaches have vast knowledge and experience in certain fields, as today their services are used for a multitude of purposes. As a transformation and performance coach my goal is to help you see how you can do things better that will help you improve your outlook, your career goals, your personal development so that you can leverage opportunities for success and a more fulfilled purpose driven life. What should you expect as a mentee from a mentor? As a mentee determine what you want from the mentor, spell it out from the beginning with goals. As a mentor discuss skills needed, keep building the relationship. Stay in touch even after the period of mentoring is over, Be intentional about mentoring with a purpose. Share your experience with me, follow me on social media @ Janet Adetu Janet.adetu@jsketiquetteconsortium.com

BUSINESS DAY

Friday 30 November 2018

INTERVIEW

‘Our target is to bring livestock to the mainstream of the economy leveraging technology’- CEO Livestock247.com Livestock247.com, the first online livestock market in Nigeria, aims at providing a-one-stop shop for buyers, sellers, ranchers, livestock merchants and traders, veterinary professionals, haulage and logistics companies, and financial services providers. Ibrahim Maigari Ahmadu, the CEO of Livestock247.com, in an exclusive interview with SEYI JOHN SALAU, shares his vision about livestock247.com and the industry. Excerpts:

hat informed the Liv e sto ck247. com idea? We have been in the animal or livestock space for a couple of years. It came as a result of a simple idea. We wanted to solve cattle rustling problems, which has been bedeviling our people up north and we felt technology could help. Abroad, there is what they call animal identification. You don’t move from one state another without knowing who owns what. So, we wanted to solve the hydra headed problem of cattle rustling and farmer-herdsmen crisis and related issues. Thus, we partnered with a major telecom firm in the country and invented, for the first time in this country, what is called animal identification and management solution, which is a simple process of identifying, monitoring, managing and authenticating the ownership of livestock or other animals. We did that and it became very successful in terms of acceptance from animal owners, but of course, we realised along the line that there was no enforcement, no legislation. Then, we got into another phase of lobbying for legislation and some parliamentarians listened to us. Nigeria is a member of the World Organisation of Animal Health alongside 180 other countries. We have signed all the conventions. Nigeria has also signed what we call the Pretoria Declaration of 2015. But still, before Livestock247.com, Nigeria never had a functional National Animal Identification system. That is why, before Livestock247.com, you could not have had the opportunity to export 1 kilogram of beef out of Nigeria. What is the economic implication of having a digitised livestock market? We are passionate about homegrown solutions, passionate about opening up our economy, diversification of the economy from a mono-economy of over-reliance on oil to other agro-based sectors. We are aware that this is a country that has 43 per cent of the cattle density in West Africa. This is a country that has the largest livestock market in Sub-Saharan Africa, which is Lagos. This is a country that has over 20 million cattle, based on the UN/FAO survey of 2013. Based on world population review, it (Lagos) is one of the top mega cities globally today; but you don’t have McDonald’s brand in Lagos. You have McDonald’s in Namibia, a country of just about two

Ibrahim Maigari Ahmadu

million people; you have to ask, ‘why’? Why they (global fast food chains) are not here is that there is no functional animal identification system for their product. They don’t just come and start doing beef burgers while they don’t know how to trace or get their products. By coming up with the animal identification system, we feel and know for sure that it is going to open up the system; it is going to create employment, it is going to bring in foreign investment. People will set up factories, processing plants and start exporting beef legally. You cannot key into the World Trade Organisation (WTO) for support and other benefits if you don’t have a database as a country. So completely, Nigeria is out of the mix of global beef trading. Look at a country like Somalia; based on the beef index of 2016, Somalia exported almost five million heads of cattle to the Middle East and North Africa. But if you look at the index of 52 top beef producing countries, Nigeria was not mentioned. Countries like Gabon and Congo were listed, and it is simply due to lack of a functional animal identification system. That, simply speaking, was what inspired us. We said as a private sector driven people, we are in the technology space, let’s solve this problem. We started doing that; we created the animal identification system. We went

through the legislation process and we realised that with the public sector, it is slow and very cumbersome. The process is very bureaucratic and that brought about our interaction with the ecosystem, which opened our eyes to limitless opportunities and then the disease issue came up. Our people were eating unhealthy livestock, killing themselves unknowingly. And we felt the need to step in. It is not about the money now; it is about solving the problem. The National Livestock Transformation Project of the Federal Government has just been

‘

The future is so promising because we see a congregation of activities in the financial sector too. I just talked about insurance, to data, to veterinary, pharmaceutical services, etc. I mean, it is limitless. It will create jobs; it will make our people stay in one place instead of moving up and down with cattle

launched, which is aimed at encouraging setting up of ranches and investment in livestock production. But no structured market for that; that is what informed this idea, and also based on the fact that the population of Nigeria will be around 450 million by 2050, which is a huge market. Based on the 2013 index, the total number of cattle in the country is about 20 million. We are going to face a reality of waking up one day and there would not be ponmo (cow skin) to eat because even currently, the supply cannot meet demand. With that, prices will go up. Therefore, we are structuring the system so that we can encourage people like you and me to actually go into intensive livestock production. About 95 per cent of the livestock in the country is owned by pastoralists and smallholder managers of livestock. But one of the things we are currently trying to do is what we call ‘deethnicising’ the entire livestock business. It is a big business; the cow does not understand any language so the same way that poultry business has gone mainstream, we want livestock production to go mainstream. By going mainstream, we are going to export and diversify our economy. We will link that rural woman in Delta State rearing a few goats to a market. She can confidently stay in her village and rear her

goats and list it on Livestock247. com and buyers in Lagos will pay for her goat. That is what Livestock247.com is about and that is the major reason Livestock247 is in business. What are the prospects and potentials of this idea? Most of the goodwill messages that we had from industry stakeholders and veterinary professionals that attended our event clearly indicate that the future is massive. We have stumbled on something that has a massive future and that was why the theme of the launch was: ‘Technology Transforming the Livestock Sector’. We are so privileged and honored to be part of the team that is pioneering this initiative. The future is so promising because we see a congregation of activities in the financial sector too. I just talked about insurance, to data, to veterinary, pharmaceutical services, etc. I mean, it is limitless. It will create jobs; it will make our people stay in one place instead of moving up and down with cattle. It will encourage elites in the urban areas to set up ranches because you know that there is a consumer somewhere that requires X number of cows or sheep or goats that will be purchased from you. It will encourage export and it will bring in big brands that will set up structures in the country because they can now buy livestock products. So, we can’t quantify the magnitude of the impact that this business will bring to the industry and the country at large. What is the overall marketing objective of Livestock247.com? If you visit our site and click on ‘About Us’ you will see that our vision is to mitigate the spread of zoonotic diseases; that is, animalto-human diseases, in Africa. That is our vision and it is a very tall one, but in doing that, we have to make things right from the technological, commercial perspectives and that is why we are bringing in the banks. Also, a lot of financial inclusion will be coming into play. About 75 per cent of transactions in almost all the cattle market in Nigeria is done by cash, because the sector is not structured. But we are now bringing in people to provide these services seamlessly. The banks have been coming and we have some of the major banks that we have signed on as our partners and a lot of them are coming on board. Another meeting is going on with Fintech companies, as we are looking at how we can provide solutions that are customisable to our people in other areas.

Friday 30 November 2018

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BUSINESS DAY

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Ignite your passion

Fortune just doesn’t favor the bold; it favors the crazy - Tokini Peterside

ntroduction: Tokini Peterside is the Founder of ‘TP-Collective’, a communications company providing entrepreneurs in the creative industry in Nigeria with strong marketing and strategic support to take their business to the next level. Despite having a thriving career with LVMH group and managing top brand portfolios like Hennessy and Moet, Tokini left her job to start her own communications company and so far, she has succeeded in launching one of the most attended arts event in Lagos, Art X. She shares with us her success story and explains how fear should not deter you from your dreams. My name is Tokini Peterside; I am the director of TP-Collective, which is a marketing and strategy consultancy. We have worked with some of the strongest creative brands in Nigeria; we’ve worked across film, fashion, art and design. I will say that what we really provide is a strong marketing and strategic support, for creative individuals who want to build their brand and take it to the next level within Nigeria, around Africa and across the rest of the world. MY LIGHTBULB MOMENT So my light bulb moment I would say, came when I was working for the LVMH group here in Nigeria. I have always dreamt of working with the strongest brands in the world and understanding what makes them tick and what made them so strong and powerful. With my role in marketing at this company, handling the Moet, Hennessey portfolio in Nigeria, I recognized that something as simple as champagne which we take for granted has become a staple

before so you don’t know exactly how it’s going to go. You may reach an email agreement with someone but you don’t go that extra step of engaging the lawyer. Now the main lesson I have learnt the hard way is that it is really important to protect yourself and to protect your project.

around the world but is also an incredible proponent of French culture and I realised that what these brands have done, is that they’ve taken the culture of their country and their region and they’ve exported that around the world and has led to respect for themselves as a people, respect for themselves as a culture and so I spent three years at that company and half way through, I realised that I wanted to fulfill what had been my childhood dream of actually supporting individuals who wanted to develop brands and project that for the African culture. LESSONS LEARNED IN BUSINESS A lesson I have learned in business, is never to be afraid of or shy away from contract; I find that in Africa we do a lot of things on the basis of relationships and yes those provide the core for the basis of the work you are going to do together with someone and it’s interesting coming from me because I have a law degree so you would expect that I would always be in a rush to enter into a contract with someone. But sometimes as entrepreneurs you would want to give yourself that flexibility you are doing something you’ve never done

THE BIG MISTAKE My biggest mistake is actually tied closely to the lesson I have learned. I will say it is so important as an entrepreneur to dot the ‘I’s’ and cross the ‘t’s’ you should never be afraid to do that. And it’s also so important to think about what the consequences could be if things don’t go well. It is actually the first thing you are always taught when starting a law degree; yes things are hunky dory on day one when you meet but like husband and wife, three months, five months, six months down the line you could actually wind up in a contentious situation. That mistake taught me the importance of having a very clear statement of deliverables and expectations as an entrepreneur. It’s so important to know what the other party is expecting from you and it’s always important to be sure that they fully understand what that expectation means and it’s fully clear on both sides because otherwise it can lead to a very expensive mistake. BREAKING BOUNDARIES MOMENT My breaking boundary moment or I would say my eureka came after the launch of our Art X Lagos project and it was actually from something very simple and something personal that I received. I received an email from

a nineteen year-old Nigerian artist who sent me what you call a love letter basically saying ‘I read about Art X Lagos, I am so excited that someone is finally creating an experience that allows younger artists showcase and to show what they can do’ and this person proceeds to write me their life story and at the end sends me their portfolio. Now I received a number of emails like this but not for the same project but things in the past. Sometimes when you get that kind of cold call, email or letter you don’t expect to see such great quality. So I opened up the portfolio, I had to call my team and to show them the work because it was absolutely incredible and what was so great about that moment for me was that it actually proved that the inspiration that lead to the project was right. For an entrepreneur the lesson to learn from that, is sometimes you feel something in your gut, you know something is right, you know that there is a need for something but unlike what you would learn on an MBA there is no research report you can go and buy or the data points don’t really exist but just virtually what you see everyday and what you observe around you and your conversation with people you get this sense that there is a real need for what you want to do and when you talk to your friends who work in more structured industries they would say to you there is not really a real basis for that how can you be so sure. I think the lesson that I have learnt and what I would say to any entrepreneur is sometimes you just know and do not be afraid to take that leap or to take that job because you would have a moment like the one that I had where it’s so small it’s so personal

but it proves that you really can impact the world in the way that you want to. MY MANTRA My personal mantra or a quote that I would say inspires me and what I try to live by, actually came from an airport that I was in once; you know HSBC does these adverts in the airport especially in the UK (I think they are great) there was this one that says ‘fortune doesn’t just favour the brave it favours the crazy’ and I don’t know if that’s the exact words actually but that was what I took from it and that’s literally what I’ve said everywhere that I go. It’s not just about being brave; it’s about being brave and bold to the point where people who don’t know you or understand your story may think you are actually mad. About Aim Higher Africa Ignite Your Passion The Aim Higher Africa Ignite Your Passion Series is an edutainment web-program under the Aim Higher non-profit organization. This series shines a light on millennial entrepreneurial leaders in different industries who have overcome economic challenges and built businesses that are transforming their communities as well as making global economic impact. With the vision of bridging the gap between poverty and prosperity, we hope that through this series, aspiring entrepreneurs will be able to identify their passion and turn them into business ventures that will in turn enrich their communities by creating employment opportunities.

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Friday 30 November 2018

FEATURE ‘Government must come clean on TSA implementation to block loopholes in economy’ The government’s new position on the TSA implementation and management might be a test for government preparedness on ease of doing business in Nigeria, writes Bala Augie.

here has recently been a lot of dust raised on account of the call by Priti Patel, a former UK Secretary of State for International Development to investors to be wary of investing in Nigeria on account of the country’s woeful records of respect for contracts. However, the Nigerian presidency has taken very serious exception to Patel’s “attack”, and understandably gone to town with stories that shows it’s wholly committed to the rule of law and demonstration of respect for contracts. The government may probably not have taken things so seriously if national elections were not just a few weeks away and would not allow any “foreigner” paint it in bad light before those who are looking for any and every reason not to return the government of the day to power. Garba Shehu, the presidential spokesperson was quick to fire back to defend “Nigeria’s honour” by saying Patel’s proposition was wicked and lacking in substance. To give strength to his defense, the spokesperson gave examples of the often touted successes of the President Muhammadu Buhari (PMB) government, which include the Treasury Single Account (TSA), Integrated Payroll and Personnel Information System (IPPIS) and Bank Verification Number (BVN). It is however instructive to note that none of these initiatives was initiated by the present administration. The BVN initiative was an entirely-private sector conceived and funded initiative by the Nigerian banks in support of the government-led National Identity project. Garba Shehu’s response may however have further played the country into the hands of Patel and her ilk’s on account of the now stale hoarse repeat of the success the government has made of TSA, IPPIS and BVN actually reflect the real issues Patel was trying to draw attention to. It may therefore be interesting to draw attention to some notso-interesting things about some of the successes the government continues to pull out of the magic hat every time it wants to state its achievements in the anti-corruption fight. Government denied the existence of TSA contract The governor of the Central Bank of Nigeria (CBN) had in November 2015 publicly on TV denied the existence of a contract for the

be” within the system (like the princes of Persia) have made this impossible until now. This is surely a sad testimony of how government should not be doing business. It is also an action that gave credence to Patel claims, and we simply do not need her to tell us this.

Godwin Emefiele

provision of Technology services for the FGN’s TSA scheme. It was with consternation that Nigerians watched his red face when he was subsequently confronted by the Nigerian Senate with a 2011 and 2013 updated contract signed by the CBN for the provision of TSA Payment Gateway Technology. The CBN’s governor lame excuse after the public show of shame was that the contracts were not brought to his attention when he resumed duties as the CBN Governor; is this not sufficient grounds for Patel and her cohorts to gloat?

guises to bypass TSA guidelines on disbursement and collection of government revenue. Some of these MDAs include Customs, Police, Immigration, FRSC, INEC, and some Federal Universities. More importantly, the House of Reps probe revealed that some powerful forces have continued to hold back the implementation of the forex component of the TSA, and that the old order of high wired corruption still continues despite the 100% TSA success claims by the likes of the information minister

Presidential directive on TSA continues to be ignored/subverted Despite the continued claims of successful TSA implementation and its curbing of corruption by the government, the presidential mandate for the full implementation of TSA continues to be flouted as different MDAs led by the ever creative and evil ingenious civil servants and their political backers have found back doors to escape the grip of the TSA. This came to light at the recent house of Reps sitting on TSA where it was discovered that some MDAs were surreptitiously keeping government funds with commercial banks while some went into other arrangements under different

TSA is a prescription of the World Bank as an efficient cash asset management and many other countries have implemented it successfully without making any fuss

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and presidential spokesperson. Government is owing over N16 billion of TSA implementation fees Nothing seems to validate Patel’s position more than the unraveling by the House of Reps Committee set up to investigate TSA operations. While the government was celebrating TSA success, it had flagrantly refused to pay the banks and contracted technology contractors who were providing services for a period of over two (2) years. As at the last check, according to a release by the Accountant General of the Federation, this was in excess of Sixteen (16) Billion Naira. Who does that? You deny a contract. You later agree it exists. Then you go ahead to ignore its terms while enjoying services, and then do not hesitate to tell anyone who cares to know that you’re a respecter of contracts and faithful in keeping your obligations. Who does public naming ceremony with the father of the bride in attendance without first paying dowry? More worrisome is the unveiling at the House of Reps sitting of the fact that the president actually gave an order of the fees to be charged and instructed; that all outstanding payments should be made but that some “powers that

Government has pushed the cost of TSA operations to citizens Most brazen of all which beats all imaginations is the fact that PMB may simply be unaware that the cost of TSA operations has now been pushed to citizens. Whereas the government does not push the cost of software or its maintenance to citizens, the cost of maintaining the TSA system has now been pushed to already impoverished citizens. Who does that? Whereas on one hand, petrol subsidy which has nothing to do with government operations continues to be borne by government, it is unexplainable how citizens are now being forced to pay additional money anytime they want to pay into government’s coffers. Is it that there was no budget for TSA implementation or that some people in government have cornered the multi-billion allocated to it in the 2017 and 2018 budgets? It would however be nice to know how this indiscretion was presented to the government and under what influence it was approved for implementation. So, should we assume the government is unaware of the pains of the citizens and what the additional or transfer of the cost of TSA maintenance means to the already drained pocket of the citizens. Nigeria is not the only country that has implemented TSA in Africa The way the government touts TSA, BVN and IPPIS at every turn, you would think all these terms were first conceived and implemented in Nigeria. TSA is a prescription of the World Bank as an efficient cash asset management and many other countries have implemented it successfully without making any fuss. One just hopes those in government are aware that countries like Rwanda, Egypt, Uganda, Tanzania, Ethiopia, Zambia and even Ghana have implemented TSA and are benefitting from it without any noise. However, someone needs to remind the government that Nigeria did not invent and does not hold a patent for TSA.

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FEATURE Nigeria loses $3.34bn, 60,000 lives annually to poor sanitation, hygiene sector similar recognition to achieve the SDGs targets for WASH by 2030. A profound portion of the statement is the area that said that the Federal Government’s support to state governments would be based on their commitment to implement the National Action Plan in their respective states and willingness to end open defecation by 2025. Many people who have interest in the WASH sector had commended the Federal Government for this singular act to deal decisively with the poor

John Osadolor

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Suleiman Adamu, minister of water resources

cal and financial commitment to the WASH sector. The Federal Government on November 8, made good its plan and declared a state of emergency on the WASH sector. The Presidency in a statement announcing the declaration noted that the Nigerian government did not meet Millennium Development Goals (MDGs) targets for Water Supply and Sanitation that ended in 2015. The statement said:” The

Sustainable Development Goals targets (6.1 & 6.2) for WASH are even more demanding as they require WASH services to be provided in adequate quantity and quality on premises at affordable prices”. The government, the statement said, could not achieve these goals on the business as usual basis. Accordingly, the Federal Government called on the States to compliments its efforts by according the WASH

With 1 in 3 Nigerians without clean water, and 2 in 3 Nigerians without decent household sanitation, strong political will is what is needed to address the water and sanitation crises in Nigeria

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igeria is said to be losing a whopping $3.34 billion and 60,000 lives annually to poor Water supply, Sanitation and Hygiene (WASH) according to WaterAid. The report from the international organization also said that in financial terms, poor sanitation is estimated to cost countries, (including Nigeria) the equivalent of 0.9% of GDP. It added that based on Nigeria’s 2017 GDP of US$375.8 billion, the country lost a whopping $3.38 billion USD to poor WASH that year. The $3.34 billion is lost in time, work productivity and money spent on treating WASH related illnesses and in the search for WASH services, WaterAid, said. Ostensibly worried by the development, the Federal Government on November 8 declared a state of emergency on the nation’s poor WASH sector on the back of the approval by the Federal Executive Council (FEC) of the National Action Plan for the revitalization of the WASH sector in April, this year. Suleiman Adamu, minister of water resources had told his colleagues at the FEC meeting that the WASH sector was in crisis and required urgent action to revitalize it. The Action Plan, according to the minister, would set a 13 year revitalization strategy for WASH including 18 months emergency phase and five years recovery plan. The Action Plan, Adamu said, would include concrete actions to be taken by the two-tiers of governments under five components comprising of governance, sustainability, funding, financing and monitoring and evaluation. The Action Plan includes the establishment of a National WASH Fund as a tool for the promotion of renewed FederalState partnership and increased financial investment for WASH so as to measure up to regional level of funding. Adamu was quoted as saying that WASH Action Plan would change the poor sanitation situation, while a declaration of state of emergency would change the narrative. Expectedly, States and Local Governments were to follow in the same direction through increase in their politi-

sanitation, poor hygiene and dirty water which caused diarrhea illnesses which in turn caused the death of nearly 60,000 Nigerian children under five every year. Among those who commended the Presidency for the National Action Plan on WASH is ChiChi Aniagolu-Okoye, the Country Director of WaterAid Nigeria. Aniagolu-Okoye in a statement in Abuja said: “With 1 in 3 Nigerians without clean water, and 2 in 3 Nigerians without decent household sanitation, strong political will is what is needed to address the water and sanitation crises in Nigeria and at WaterAid we are delighted that the Federal Government and His Excellency, President Muhammadu Buhari are demonstrating the needed political will with the launch of the Action Plan. “The National Plan of Action is a significant political milestone towards achieving the UN Sustainable Development Goal 6 to reach everyone, everywhere with clean water and decent sanitation by 2030 and our expectation is that state governments will follow suit in developing Action Plans to address the Water and Sanitation crises in their respective states.” The grim statistics about WASH situation in Nigeria, according to WaterAid are: • 123 million people are without a basic household toilet • 60 million people are without clean water close to home •166 million people do not have anywhere to wash hands with soap • 50% of schools are without basic toilets • 30% of healthcare facilities do not have a water source on site • Progress on sanitation is regressing. For every urban resident reached with a decent household toilet, another two join the queue to wait • Half of all schools in Nigeria do not have access to clean water and sanitation services, affecting over 60 million children • Nearly a third (29%) of hospitals in Nigeria do not have access to clean water and safe toilets • 16% of hospitals in Nigeria do not have anywhere at all for washing hands with soap. This puts patients and healthcare workers at unacceptable risk of infection, including some of the most vulnerable members of society – new mothers and their newborns

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2019: CUPP shortlists five presidential candidates (NIM) and member CUPP candidate selection committee, stated that the presidential candidate of the main opposition, People’s Democratic Party (PDP) Atiku Abubakar was in early lead in the voting and was followed by four other candidates. The statement reaffirmed the group’s commitment toward presenting a joint candidate in the Presidential election and w ork toward establishing a government of national unity. Th e g rou p f u r t h e r s t at e d that it considered the candidates popularity and structures

Iniobong Iwok

head of the 2019 presidential election, the coalition of United Political Parties (CUPP) has shortlisted five presidential candidates to be considered as the joint candidate of opposition parties in next year’s presidential election. The CUPP in a statement to the media, Thursday and signed by Olisa Agbakoba, chairman, National Intervention Movement

Agbakoba

across the country, the candidate’s experience, financial capability, the organisational strength of political parties and capacity to man the 120, 000 polling units across the country, among other criteria. “CUPP has shortlisted five presidential candidates to be considered for selection as the joint candidate of the opposition parties in the 2019 Presidential Elections. The presidential candidate of the PDP came out in front on the early ballot but followed by very four strong contenders,” it said.

Atiku restates commitment to curb poverty, Ahead of 2019: Ezekwesili chooses Galadima as running mate sili, a former Vice-President of politics at the grassroots level Killings; assures fiscal responsibility Iniobong Iwok World Bank. from the ward to the state and at Innocent Odoh, Abuja

ormer Vice President and presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, has said that his expected victory in the 2019 would be a victory for the people, even as he restated his commitment to galvanizing all efforts to liberate the nation from the shackles of hunger, deprivations, killing and divisiveness. The PDP Presidential candidate, who spoke at a meeting with members of the PDP National Working Committee (NWC) in Abuja on Thursday, commended Nigerians for their commitment and sacrifices towards rescuing the nation from misrule, adding that such sacrifices will not be in vain, a statement issued on Thursday by the Atiku Campaign Organisation said. “Our aim is to work very hard and collectively liberate our nation from the shackles of hunger, star-

vation, deprivation, bloodletting, killings and division which bedevil us today. We must all work hard to return our nation to the path of harmony, peace and progress” he said. Atiku Abubakar, whose campaign policy document is generally accepted across the country as a practical answer to the nation’s economic, social and infrastructure challenges, also assured of a new template for fiscal responsibility and productivity in all critical sectors of our national life. He further assured that he has a running mate that is honest and reputed to have a very high sense of fiscal responsibility and transparency in governance. Finally, he commended members of the National Working Committee for their effort in rebuilding and rebranding the party and urged them to continue with the momentum, built so far, until Nigerians achieve victory on the platform of the PDP at the 2019 general election, the statement said.

2019: Cross River monarch endorses Ayade’s second term bid MIKE ABANG, Calabar

he Paramount Ruler of Ogoja Local Government of Cross River State, Butru Godwin Odu is the latest on long list of those drumming support for a second term for Governor Ben Ayade in 2019. The Royal Father expressed his support for the governor’s second term bid when he spoke at the Ministry of Information and Orientation programme tagged ‘The Conversation,’ held at the Conference Hall of Ogoja Local Government Council, Ogoja. The Paramount Ruler reminded those “who are unjustly and greedily vying for the governorship position”, that for equity and justice to prevail, the Northern Senatorial District and Governor Ayade must complete a second term in office. “Let me use this opportunity to

remind us that Governor Ayade is our son. So we will do anything possible to remind any person who thinks otherwise that we must give the necessary support to our son. We will be committing a blunder if we do not stand behind him and see to it that he is returned in office in 2019,” the Monarch said. Earlier when the Commissioner for Information and Orientation, RoseMary Archibong paid him a courtesy call, the Paramount Ruler stated: “I thank God for Governor Ayade’s intellectual ability. I believe very strongly that the Ayadeled administration has sufficiently laid an economic foundation for a proper take-off of the State.” “At various fora, we have met and resolved that Senator Ben Ayade be returned to the Government House in 2019 in order to consolidate on the giant strides of his first tenure,” he further said.

he Presidential candidate of the Allied Congress Party of Nigeria (ACPN) in next year’s election, Obiageli Ezekwesili, has announced Abdulganiyu Galadima, from Kwara State, as her running mate, the party said. Ezekwesili announced the choice while unveiling her manifesto at an interactive session with the media and party members in Ilorin, Kwara State, her campaign organisation, ‘HOPE 2019’ said yesterday in an emailed statement. “Galadima brings to the Hope 2019 ticket an invaluable experience at grassroots politics at the state, local government and national levels. This experience complements my incomparable competence and capacity when it comes to socio-economic and governance issues,” said Ezekwe-

Galadima is currently the chairman and a former presidential candidate of the ACPN. He was born in 1964, and was described by the party as a “seasoned community leader, businessman, an administrator, a political leader.” He studied Law and Public Administration at the Kwara State Polytechnic, where he also served as a member of its governing council, according to the party. Ezekwesili has said that her party’s cardinal objectives include revolutionising the agricultural sector, investing in human capital development, and diversifying the economy. She also plans to restructure the Nigerian federal system, which has become a key issue in next year’s general elections. “Galadima has dedicated a significant portion of his life serving Nigeria through people-centred

the national levels,” said Ezekwesili, a former minister of education and solid minerals. She added that as a businessman who is chairman of major business boards, Galadima has privatesector and corporate governance experience with a market-focused, enterprise-friendly government vision.” Like her, she said, Galadima had shown a long-standing commitment to the fight to rescue the country by standing with people of integrity, including by refusing to join questionable alliances and coalitions led and bankrolled by ruling parties in this election and in that of 2015. Galadima assured Ezekwesili of his loyalty and promised to work towards ensuring that the team gets the people’s mandate in the 2019 general elections.

I am still in APC not PDP - Akomas UDOKA AGWU, Umuahia

hris Akomas, a former deputy governor of Abia State and national secretary of Eastern Peoples Front, has said that the organisation was a bi-partisan body whose membership cuts across party lines. According to him, the clarification had become necessary following the rumours making the rounds that he who is also a member of Board of Trustees (BOT) of the APC had defected from his party, simply because he was seen with the group in Umuahia, the Abia State capital. According to a press statement signed by Chidi Asonye, special adviser (Media) of Chris Akomas Organisation, the Front encourages all Ndi-Igbo irrespective of their political party affiliation to ensure that the South-Easterners are mobilised wherever they are to show strong interest and strength in the Nigerian political equation by making their voices and votes count.

The release argued that as a Nigerian who had the freedom of association, Akomas did not see anything wrong in pursuing the course of his people, which was greater than any single individual. The release read, “Our attention has been drawn to the recent fake news making the rounds that His Excellency Chris Akomas has defected from the All Progressives Congress simply because he was seen in a delegation led by Ken Emechebe at the capital city of Umuahia. “For the records, Emechebe is the National Coordinator of Eastern Peoples Front of which His Excellency is the National Secretary. “The Front in conjunction with other prominent Igbo organisations and development systems at this time in the political history of Nigeria is sensitising & mobilising the Igbo political bloc and indeed, Igbo people, wherever they reside in Nigeria on the need to restrategise for the actualisation of a stronger participation, effective

partnership and position in the Nigerian political space. “As a national officer of the Front that its main objective is the overall interest of Ndi-Igbo in Nigeria, His Excellency Chris Akomas was among the executive members of the team for that all-important sensitisation and advocacy that took them to all the five Igbo-speaking states of the South East geopolitical zone. “The Front will do what is necessary to change the wrong narrative about the actual voting strength of Ndi-Igbo in Nigeria which is underestimated and portrayed to be about 8million instead of the over 26million, hence it has become necessary to weigh our options well. ‘Chris Akomas would not have detached from the entourage when the team paid a courtesy visit on the Governor of Abia State at the Government House because of party affiliations. The EPF though a socio-political organisation is bi-partisan, hence the membership cuts across party lines,” he said.

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Poor healthcare system demands attention of presidential candidates ODINAKA ANUDU

ith Nigeria recording 12.4 deaths per 1,000 population and third highest infant mortality in the world, presidential candidates in the 2019 election must tell Nigerians their plans on the deteriorating health sector. Muhammadu Buhari, Nigeria’s president and candidate of the All Progressives Congress will be challenged by Atiku Abubakar of the People’s Democratic Party. The ranks are swelling, with the likes of ‘Bring Back Our Girls’ campaigner Obiageli Ezekwesili; former CBN deputy governor, Kingsley Moghalu; and former Cross River State governor Donald Duke, among others, fighting for spaces. But these candidates are confronted with a broken health system that forces the rich to spend $1 billion annually while seeking medical treatment abroad. The 2017 was marred by outbreaks of diseases such Lassa fever, which occurred in 718 cases wherein 68 persons died. Between January and July 2018, there have been 115 deaths in confirmed cases and 10 in probable cases. Cerebrospinal meningitis was suspected in 14,518 cases, across 181 local government councils, with 1,166 people reported death. Other outbreaks of include monkey pox and cholera. Cancer is

responsible for the deaths of 72,000 Nigerians yearly, according to Wellbeing Foundation Africa (WBFA)’s 2019 research. “Budgetary allocation to health is abysmally low and even the government themselves are aware about this,” Remi Ajekigbe, Cancer Specialist and HOD Radiotherapist and Oncologist at Lagos Teaching University (LUTH), said. Nigeria has allocated only 2.9 percent of its total budget on health in the last three years, as against South Africa’s 13 to 15 percent over the same period, according to BusinessDay calculations. South Africa proposed a health budget of R205.446 billion ($17.1

billion) in 2018, representing $299 per head when compared to its population of 57million. Nigeria, on the other hand, home to some 198 million inhabitants, the highest in the African continent, has a health budget of N340 billion ($946 million), amounting to $5 per person, according to BusinessDay calculations. Data compiled by BusinessDay shows that the South Africa, for four consecutive years, spent 15 times on health more than Nigeria. While South Africa spent $46 billion on health between 2014 and 2017, Nigeria has only managed $3 billion within the period, despite the former still boasting of

being the giant of Africa. “Cor r uption depletes the budgetary estimate that has been made,” said Olaniyi Olatunde, a doctor at Araba specialist hospital. Statistical data polled across several African countries shows that in 2016, Rwanda allocated 18 per cent of its national budget to health, while Botswana and Malawi devoted 17.8 per cent and 17.1 per cent respectively. Zambia’s was 16.4 per cent, while Burkina Faso was 15per cent. Nigeria which hosted the ‘2001 Abuja Declaration’, where it pledged alongside other member states of the African Union to commit at least 15per cent of

their national budget to health, is still at 4.3 per cent, with no trajectory towards achieving the 15 per cent target. More so, response to disease outbreaks has been poor, with many dying during outbreaks. Nigeria has only seven radiotherapy machines (for the treatment of cancer), five of which are faulty, health experts say Doyin Odubanjo, chairman, Association of Public Health Physicians of Nigeria, Lagos Chapter, said disease outbreaks cannot be predicted but get worse when a country fails to address prevention issues squarely. Similarly, the pharma sector is struggling with major players unable to sustain production pre-2015 years. Already Swiss Pharma has been bought by an investor after experiencing early struggles, while Evans Medicals has gone under. Incidentally, these two drug makers got the WHO prequalification, which ordinarily should raise the level of their competitiveness. The pharma industry depends on import for over 50 percent of their raw materials while patronage remains a major hurdle to cross. Capacity utilisation is less than 40 percent, say players in the industry. A chief executive of a pharmaceutical industry told BusinessDay that the industry is struggling and some firms may go under except there are policies to protect existing investors that have pumped N400 billion so far in the industry.

Nigeria needs experts, not vocational politicians, to drive smart government – Kriz David KELECHI EWUZIE

riz David is a tax, forensic and leadership expert. He is also a development economist. He also has over 20 years of professional experience in leadership, strategy, capital market, manufacturing, retailing, oil and gas, banks and other financial service institutions. He is the presidential candidate of Liberation Movement. He recently released a book titled ‘Smart Government, the preferred future’, where he outlined his plans of shaping the Nigerian dream and the pathway to prosperity. David, in this book which he refers to as his promissory note to Nigerians, outlines the various step required to get the country operating in a smart way.

He unequivocally states that he is offering Nigerians Smart Government to shape the Nigerian Dream— a nation that offers her citizens a promise. He wants to get Nigerians ride progressively on the path of prosperity. The liberation movement presidential candidate observes that insecurity, corruption, economic stagnation and other ills that Nigeria as a nation grapple with are merely symptomic manifestations of the unaddressed faulty foundation. He says Nigeria’s root problem is inequality, adding that inequality pervades the entire design framework of the nation’s reward system, administration of justice and access opportunities. “If the wrong value of inequality is not addressed, Nigeria will continue to be marooned in a cycle of

failure and backwardness,” he says. “Smart Government is a government that engages systems thinking to craft innovative policies and technologies that address our peculiar challenges in Nigeria. Smart Government is the preferred future that has eluded Nigerians for the past 58 years”, he explains.

Kriz David

David identifies five unimpeachable steps that Nigeria must take and genuinely follow if it is to become a truly great and prosperous nation. The five steps as identified in his book include Article of faith, Rule of law, Economic Freedom, Fair Tax Systems and Learning Economy. He warns that these are not points agenda, but systems thinking processes that are interwoven. He notes that Nigeria as a nation has not only struggled to realise her potentials but is in search of her identity and place as a nation among nations of the world. He points out that leadership has not only failed in Nigeria, but that the copuntry has failed as a nation owing to her low moral value quotient bedevilled with ethnic and tribal sentiments, religious bigotry and the quest for wealth

at the expense of morality. On this premise, he identifies seven core virtues of Equality, Meritocracy, Integrity, Incorruptible, Diligence, Excellence and Abidance that are the solid foundation for prosperity of a nation, and when elected into office as the nation’s president, he plans to engrave these into the consciousness of the Nigerian systems and Nigerians in general. “If elected as the president of the great nation come 2019, I will not be engaging in guess work because I already have a blueprint in my book Smart Government - The preferred future, which was born out of my curiosity to understand why some nations are prosperous and others are not. Nigeria is in a dire situation, therefore requires experts not vocational politicians to save our dear nation.”

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NEWS 2019: PDP seeks resignation of INEC chair... Continued from page 1

remarks at the National Executive

Committee (NEC) meeting of the party in Abuja. This is the first NEC of the party after last month’s Elective National Convention in Port Harcourt. “We have never seen this kind of partisanship by the police and INEC in the history of this country,” the National Chairman said. Secondus also warned of dire consequences if the governing party rigs the forthcoming General Election. “If you rig election, you are going to cause crisis in this country and we will not accept the result of rigging,” he cautioned.

Senate President Bukola Saraki, Deputy Senate President Ike Ekweremadu, PDP Presidential candidate Atiku Abubakar, serving and former PDP National Assembly members, governors among others are at the meeting. The meeting is expected to approve the full composition of the PDP national campaign council and also vet its budget for the 2019 campaigns. Meanwhile the Presidential candidate of the PDP in the 2019 General Election, Atiku Abubakar has called on President Muhammadu Buhari to immediately sign the fourth version of the Electoral Act (Amendment) Bill currently before him. Atiku who threw his weight

behind the call for the resignation of the Inspector General of Police, Ibrahim Idris, also challenged President Buhari to a debate ahead of the election. The former Vice President stated this on Thursday in Abuja at the inauguration of the PDP Presidential Campaign Council. It would be recalled that the National Assembly had transmitted the fourth version of the amended Electoral Act to President Buhari on November 7, 2018. Less than three months to the 2019 election, political analysts have expressed concern over the inability of the country to have the Electoral Act signed into law. He had earlier rejected three versions of the bill passed by both legislative chambers this year.

L-R: Enase Okonedo, dean, Lagos Business School; Vice President Yemi Osinbajo, and Juan Elegido, vice chancellor, Pan-Atlantic University, at the Olu Akinkugbe Business Law in Africa Fellowship Conference, marking the 5th Fellowship Anniversary and 90th Birthday of Chief Olu Akinkugbe, held in Lagos.

Nigeria leads 5G conversation ahead of... Continued from page 2

ness will suffer,” Goodluck said at an event where the GSMA released a new report “Spotlight on Nigeria: Delivering a digital future.” The GSMA research shows that the mobile market in Nigeria contributed $21 billion to the country’s GDP in 2017, representing 5.5 percent of Nigeria’s total GDP. In addition, the growth of Nigeria’s digital economy resulted in the creation of nearly 500, 000direct and indirect jobs. ForthemajorityofNigerians,mobile broadbandisthefirstandpossibly,only technology for accessing the internet, enabling better access to health, education and commercial opportunities, amongst other public services. Smartphone adoption has risen to over 53 million connections, and 49 percent of the population are currently connected by mobile technology, compared to less than one percent who have a fixed-line connection. On what the NCC is actively doing to prepare the Nigeria’s telecommuni-

cation industry for the fifth generation revolution, Umar Garba Danbatta, ExecutiveViceChairman(EVC)ofNCC told BusinessDay that the commission hasspectrumbandsavailableforoperators to purchase in order to roll out 5G services in the country as at when due. “We have taken steps to preserve the 26GHz (gigahertz), 38GHz and 42GHz spectrum bands for 5G. There will be a number of slots in all these bands and the commission has also made provision for subsidy payment for infrastructure companies (InfraCos) who wish to deploy 5G. Public private partnership, infrastructure and the right regulatory standards are also necessary to facilitate deployment of 5G services across the country,” Danbatta said. He added that “although the NCC does not have any regulations for this right now, we are not going to be caught unawares by this revolution and that is why we have started this conversation.” With increased spectrum harmonization and licensing reform, the

Naira falls to N370/$ in parallel market on... Continued from page 2

“It implies that foreign reserves will comeunderpressure.Soyouareseeing elevated demand for FX from people who want to meet their obligations,” Chukwu told BusinessDay by Phone. Keeping the naira as strong as possible against the dollar is popular in Nigeria, which imports the bulk of its needs from other countries. That has been a priority for most central bank governors whose fixation on exchange rate stability is also in recognition of its impact on price stability, a core mandate of any central bank. With two currency devaluations

under his belt, the current Central Bank Governor, Godwin Emefiele, is prepared to fight off another naira depreciation in the months leading up to the general elections in February 2019 even though the rate of foreign capital outflows make it a daunting task. Any sustained decline in oil prices will be painful for Nigeria which just emerged from an oil induced recession, and whose Federal Government gets 70 percent of its budget, and 95 percent of dollar earnings from proceeds of oil sales. Africa’s biggest oil producer relies on crude oil sales to fund its budget and is responsible for over 85 percent

GSMA forecasts that Nigeria’s mobile penetration will rise to 55 percent of the population by 2025, with 70 percent having 3G connectivity and 17 percent having access to 4G networks. Currently, only 44 percent of mobile subscribers in Nigeria are using 3G technology and 4 percent are using 4G technology, compared to over 18 percent 4G penetration in South Africa and 16 percent in Angola. “This workshop is intended to sensitize stakeholders about our readiness to commence deployment of 5G in Nigeria. We are making plans to support the deployment of not only 5G but also 4G and 3G,” Danbatta confirmed. The GSMA has identified support for and release of harmonized spectrum and a modernized licensing framework as fundamental building blocks for Nigeria’s digital future. With a year to go until WRC-19, leading the region in support of identifying new IMT bands that 5G will benefit from, especially the 26GHz, 40GHz and 70GHz bands, will be crucial. of the country’s revenue and a fall in revenue will hamper budgetary obligations. The dip comes three months to the general election and as Nigerian workers demand a 66 percent wage increase. The CBN has already seen its reserves slide from a high of $47.25 billion in July to $45.90 in August; down to $44.45 billion in September and $42.13 billion in October and $41.52 billion as at November 22. Ayodeji Ebo, managing director at Afrinvest Securities Limited does not support the view that crude oil prices attributed to the pressure on the naira but however believes that the election season is what is putting pressure on the local currency.

Why Nigeria’s auto industry is going... Continued from page 1

such cars in the world. Ten percent of imported cars are less than

three years old, while 63 percent are over 11 years,” Nevin said at a Lagos Chamber of Commerce (LCCI) automotive sector event. The prohibitive levy and duty paid on imported cars have encouraged smuggling of vehicles into Nigeria. Only 6,999 new cars were sold in Nigeria in 2017 as against 555,716 in South Africa; 181,001 in Egypt; 168,913 in Morocco, and 94,408 in Algeria, according to PWC data “There is no market for even the investors,” said Thomas Pelletier, managing director, CFAO Nigeria. “The fact is that cars are too expensive. We have seen a market drop of 75 percent in the last three years. Increase in duties has increased smuggling,” Pelletier said. The National Automotive Design and Development Council (NADDC) has issued licenses to 54 vehicle companies for local assembly. Industry experts estimate the capacity of these firms at 400,000 units per annum. The National Bureau of Statistics says Nigerians imported 105,189 units of vehicles (mostly used and accidented) in 2016 through the ports and raised the number to 181,404 (72.46 percent increase) in 2017. “If we want to develop a market for 54 companies that have got licenses with 400,000 capacity plants and we import a huge number of used vehicles, how are we going to support vehicles being assembled, since the ones assembled locally will be more expensive?” Bambo Adebowale, chairman, Auto and Allied Sector group of the Lagos Chamber of Commerce (LCCI), asked in a recent interview with BusinessDay. PwC estimates that 410,000 cars were imported into Nigeria in 2014, out of which 74 percent were used. Passenger cars and commercial vehicles lead vehicle sales with a combined share of 61 percent. Corporate purchases account for the largest share of vehicle sales with 34 percent of the market, while individual purchases are a close second, accounting for 30 percent of the market.

At this point, the auto policy is not making any headway with government losing a significant amount of revenue from smuggling and importation of accidented vehicles; while the local assemblers not selling because of pricing, key players say Nigeria needs to come up with a policy that will make vehicles affordable. “The real issue is affordability. We control 80 percent of the market today because used vehicles are cheaper,” Ajibola Ajiboye, chairman of car dealers in Nigeria, said. A sample list of 1.6-liter engine cars used by banks and other corporate buyers shows that prices have more than doubled between 2014 and 2017. In 2014, a brand new Kia Cerato 1.6 litre automatic transmission saloon car sold for N3.96 million but now costs N9.54 million in 2017, while a Picanto 1-liter engine capacity which costs N2.25m three years ago sold for N4.95 million in 2017. Toyota Corolla 1.6 liter GLI automatic transmission fabric sold for N4.45 million three years ago, but the same specification now costs not less than N18.9 million. During the same period, a Mercedes-Benz C200 luxury sedan which is sold with a dealership price tag of N10.5 million costs N25 million in 2017, while a G63AMG model sold at N50 million before presently wears a price tag of N78 million. This shows a price jump of over 100 percent and this applies to other brands of vehicles in the market plus those manufactured in Korea, Japan or Germany. The 2016 recession was a setback to the Nigerian automotive industry, according to PwC. Challenges to the automotive sector include poor patronage of made in Nigeria goods, inadequate power supply, corruption and bureaucracy stifling the business environment, Dearth of transport infrastructure, lack of skilled manpower and gaps in auto servicing and repairs. “Without structural reforms, poor infrastructure will impede Nigeria’s ability to leapfrog and adopt emerging global trends. Consequently, Nigeria risks becoming the dumping ground for old vehicles,” said PwC.

Nigeria’s LNG misstep is rest of Africa’s... Continued from page 2

PwC noted that governments around Africa are reviewing or developing their energy policies as many countries are investigating changes in the government take, taxation regulations and state participation. According to Rystad Energy, Africa countries like Senegal, Mauritania and Egypt have been the hotspots in the past three to four years where there has been a considerable amount of exploration which has resulted in some high profile discoveries like the giant Zohr gas field, Nooros discovery onshore, Atoll discovery offshore in Egypt; and Ahmeyim, Teranga, Yakaar discoveries offshore in Mauritania and Senegal. Rystad Energy said the exploration plans for the rest of 2018 and 2019 seem encouraging with many as 15 such high impact wells are planned in the coming 15 to 16 months. “The locations for these wells vary from onshore Egypt, Morocco and Tanzania to deep-water Gambia, Namibia, South Africa, Ghana, Mauritania and even Angola.” Rystad Energy noted that the participation of super-majors like Total and ExxonMobil, and Norwegian E&P Equinor and British Independent Tullow as well as Kosmos and FAR Limited who have already seen success in the Mauritania Senegalese waters,

shows encouraging signs for near term future exploration activity in Africa in the remaining of 2018 alone as 10 of suchhighimpactwells,includingTotal’s Tarif prospect onshore Egypt; Tullow’s CormorantprospectoffshoreNamibia; FAR’s Samo prospect offshore Gambia and so on, are expected to be drilled. While other countries are growing in leaps and bounds Nigeria which was once ranked the fourth largest LNG exporter in 2016, according to the World LNG Report has delayed in taking Final Investment Decisions (FID) on various LNG projects in the country. Three LNG projects in Nigeria, namely, Olokola LNG, Brass LNG and the NLNG’s Train 7, have suffered setback as a result of the delay in taking final investment decision by the stakeholders. The OK LNG project was stalled because all the International Oil Companies (BG, Shell and Chevron) withdrew from the project, with only the Nigerian National Petroleum Corporation (NNPC) left. The Brass LNG project, which was designed to produce 10 million metric tonnes per annum, was to be built by the NNPC, Total, ConocoPhillips and ENI Group. But ConocoPhillips withdrew from the project in 2013.

•Continues online at www.businessdayonline.com

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FINANCIAL TIMES

DB Schenker taps younger talent amid IPO talks

Kremlin bank blames error for $12bn African ‘loan’

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World Business Newspaper

Donald Trump and Vladimir Putin to hold bilateral talks at G20 ‘We need to talk,’ says Kremlin spokesman as US threatens new sanctions against Russia Henry Foy

onald Trump and Vladimir Putin will hold bilateral talks in Argentina on Saturday despite a threat by the US president to cancel the meeting after Russia’s detention this week of three Ukrainian naval vessels, the Kremlin said on Thursday. The talks on the sidelines of the G20 event in Buenos Aires will be the first formal sit-down meeting between the two leaders since their summit in Helsinki in July, and come as the US threatens new sanctions against Moscow and Mr Trump pledges to withdraw from a cold war-era agreement on limiting nuclear missiles. “We need to think about how to start a dialogue on strategic security, bilateral relations, disarmament issues and regional conflicts,” said Dmitry Peskov, Kremlin spokesman. “We do not have to agree on every issue, that’s actually impossible, but we need to talk. This is in the interests of not only our two countries, but the world at large.” Mr Trump had previously suggested that he could cancel the meeting in response to western condemnation of an incident off the coast of Crimea, the Ukrainian peninsula illegally annexed by

Moscow in 2014, where Russian boats fired on Ukrainian ships before detaining them and their 24 crew members. The talks will be held at midday on Saturday, Mr Peskov told reporters. “Washington has confirmed the meeting,” he said, in response to a question about Mr Trump’s threat to cancel it. German chancellor Angela Merkel, who will also meet Mr Putin at the G20, said on Thursday that she would demand the release of the Ukrainian ships and crew and allow free passage to the Azov sea. Ms Merkel said a solution to the conflict would only come through negotiations. “There is no military solution,” she said at the opening of a German-Ukrainian economic forum. She accused Mr Putin of worsening conditions for shipping by building a bridge to Crimea over the Kerch Strait. “This is the Russian president’s fault,” she said. Mr Trump’s promise to withdraw from the IntermediateRange Nuclear Forces treaty, which is yet to be formally enacted, has raised concerns of a new arms race between the world’s largest nuclear-armed powers and fears over the future security of Europe, which was threatened by the Soviet Union’s missiles before the treaty.

Climate change in Somaliland — ‘you can touch it’ Self-declared state wants to shift much of its population to the coast as grazing land fails

Tom Wilson

t is often said that climate change will hurt the world’s poorest people first. Nowhere is that potentially truer than in Somaliland, an unrecognised state in the Horn of Africa sandwiched between an expanding desert and the Red Sea. A prolonged drought has killed 70 per cent of the area’s livestock in the past three years, devastating the region’s pastoralist economy and forcing tens of thousands of families to flee their grazing land for urban camps, according to authorities. “We used to have droughts before, we used to name the droughts, but they would be 10 or 15 years apart,” says Shukri Ismail Bandare, minister for environment and rural development. “Now it is so frequent that people cannot cope with it.” Somaliland has endured regular cycles of drought for the past 20 years that have intensified since 2015 as consecutive rains have failed. The impact has been catastrophic for the nation of 3.5m people, where livestock farming

accounts for about 70 per cent of economic activity. According to the UN, 4.2m people in Somaliland and neighbouring Somalia will require food assistance next year. “Four consecutive years of emergency hit Somaliland so hard and it’s all about climate change,” Ms Bandare says. “You can touch it [climate change] in Somaliland — it is real, it is here.” Somaliland is not alone. Across the Horn of Africa — a region that includes Somalia, Ethiopia, Eritrea, Djibouti and parts of Sudan and Kenya — drought has become the new normal. According to US scientists, the region dried faster in the 20th century than at any other time in the past 2,000 years. Changes in temperature in the Indian Ocean over the past decade, similar to the El Niño phenomenon in the Pacific, have directed winds eastward, pushing moist air that normally brings rains to east Africa away from the continent. As a result, some 13m people across the region are suffering from food shortages, according to EU agencies. “There has been tremendous Continues on page A2

An aide to Mr Putin said the two presidents could discuss Sunday’s naval clash near the Kerch Strait. But the Kremlin has rebuffed suggestions that third parties should mediate between Moscow and Kiev. “Moscow is grateful to everyone who is ready to promote the deescalation of the tensions provoked by Ukraine but sees no need for mediating efforts,” Mr Peskov said on Thursday, in response to an of-

fer from Turkish president Recep Tayyip Erdogan. “Those who want and are able to help can do so by putting pressure on Kiev,” Mr Peskov added. On Thursday, Ukraine’s president urged Nato members to send naval vessels to his country’s coastal waters for joint patrols in order, he said, to prevent Russia from imposing a sea blockade of exports. “We hope that Nato states are

prepared to send naval ships to the Sea of Azov to support Ukraine and provide security,” Petro Poroshenko said during an interview with Bild. Mr Poroshenko told the German newspaper: “The only language he [Putin] understands is the solidarity of the western world . . . We can’t accept Russia’s aggressive policies. First it was Crimea, then eastern Ukraine, now he wants the Sea of Azov.”

Deutsche Bank offices raided in German money-laundering probe Investigation centred on lender’s unit in British Virgin Islands Olaf Storbeck

eutsche Bank offices in Frankfurt were raided on Thursday morning by about 170 police, prosecutors and tax inspectors as part of a broad criminal investigation into alleged money laundering. The investigation is targeting two Deutsche employees, aged 50 and 46, the Frankfurt prosecutor’s office said, without naming the suspects. They said other Deutsche employees who have not been identified are also part of the probe. The trigger for the investigation were documents published last year as part of the so-called Panama Papers and “offshore leaks” disclosures, where millions of records detailing the use of tax havens to shield wealth were passed to an international consortium of journalists. Authorities said at the core of the new German investigation is a Deutsche unit based in the British Virgin Islands. In 2016 alone, it dealt with more than 900 clients and processed €311m, according to prosecutors. The Frankfurt prosecutors said an evaluation by Germany’s federal criminal police prompted suspicions Deutsche was “supporting clients in setting up so-called ‘offshore busi-

nesses in tax havens’.” There was also suspicion that “money generated by criminal activity was transferred on Deutsche Bank accounts without the bank flagging suspected money laundering to the authorities,” prosecutors said. Deutsche acknowledged its offices were being searched, adding that they were “co-operating fully” with investigators. It insisted executives had “already provided the authorities with all the relevant information” with regard to the Panama Papers disclosures. “Of course, we will co-operate closely with the public prosecutor’s office in Frankfurt, as it is in our interest as well to clarify the facts,” the bank said. “In recent years, we have proven that we fully co-operate with the authorities — and we will continue to do so.” Shares in Deutsche Bank were down more than 3 per cent to €8.31 in afternoon trading in Frankfurt, taking their decline for the year to 48 per cent. The German lender’s additional tier one bonds also fell to their lowest price this year. These risky equity-like securities, which are first in line to take losses in a collapse of the bank, are now trading as low as 83 cents on the dollar.

The raid is increasing the pressure on Sylvie Matherat, Deutsche’s chief regulatory officer, who joined the lender in 2014 from the French central bank and is facing growing internal criticism for failing to improve the bank’s anti-moneylaundering processes sufficiently. In September 2018, the German financial regulator BaFin ordered the bank to step up actions against money laundering and terrorism financing and appointed an independent auditor to check the lender’s progress for the next three years — a move that a person close to a supervisory board member called “a slap in the face of Deutsche”. Paul Achleitner, Deutsche Bank chairman, afterwards informally questioned Ms Matherat’s performance, people briefed on the matter told the Financial Times. However, a person familiar with Mr Achleitner’s thinking on the issue, said the ousting of Ms Matherat was not considered. In 2015, Deutsche was fined €40m by BaFin for flaws in its antimoney-laundering systems. Two years later, the bank, which is Germany’s largest lender, agreed to pay $630m to settle US and UK investigations into the alleged laundering of $10bn of assets by Russian clients.

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FT Climate change in Somaliland...

We all collude in exploiting commodity-rich nations

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change in one lifetime,” Saad Ali Shire, Somaliland’s foreign minister, tells the Financial Times. “Fifty years ago, we were a land of grass and wildlife, like the prairies of Kenya and America.” Now, on the road from the capital to the coastal town of Berbera, barren land stretches to the horizon. To make matters worse, when it does rain, it comes in torrential storms that wash away the brittle top soil, causing further damage. In a few days in May a rare tropical cyclone dumped the equivalent of a normal year’s worth of rain on parts of the country, resulting in flash floods that killed more than 50 people, according to the Somaliland government. Only half a dozen such tropical storms have made landfall in the Horn of Africa since accurate records began. As environmental damage has increased, Somaliland’s contested political status has complicated relief efforts. The former British protectorate declared independence from Somalia in 1991 but is not recognised by the UN, making it harder for Somaliland to access external support and humanitarian assistance. It also makes reliable statistics hard to come by. In 2012, the World Bank estimated gross domestic product per capita at $347, making it the fourth poorest country in the world that year. In such circumstances, efforts to find solutions can feel futile but Somaliland has some ideas. The government wants to settle 2m people on the coast, where fish stocks remain abundant, by 2030; and reduce the rural population, currently at 50 per cent, by half to take the pressure off the land, Mr Shire says. At the same time, the country will try to develop its “blue economy” — fishing, aquaculture and shipping — and begin a reforestation programme, he adds. “Climate change is here, there is no use denying it because it is reality. Now we need to manage it to make its impact less severe,” Mr Shire says. Depopulation of rural areas is already happening. Somaliland’s capital, Hargeisa, has as many as 10 temporary camps with 150,000 families that have fled droughtstricken rural areas after their livestock died, says Ms Bandare. “All of these families need handouts, all of them need three meals a day.” The Somaliland minister was appointed in September as one of 22 international climate ambassadors to promote the goals of the UN’s Paris Agreement on climate change. Ms Bandare argues that the poverty and displacement wrought by drought risks stoking further insecurity and suffering in what is already a volatile region, and says it is more important than ever for countries and regions to work together. “We are a global village now — what is affecting one country is affecting every country and, if the impact of climate change in the less developed countries is not addressed, then we will all be in a big, big mess,” she says. “There will be more displacement, there will be huge migration and there will seriously be more insecurity.”

Friday 30 November 2018

The power relations of slavery are preserved by global markets David Pilling

T President of the Central African Republic Faustin-Archange Touadera meets Russian president Vladimir Putin in St Petersburg this year

Kremlin bank blames error for $12bn African ‘loan’ VTB says mysterious payment to Central African Republic was software bug Max Seddon and Neil Munshi

Russian state bank appeared to give a $12bn loan to one of Africa’s poorest countries — then claimed the stated payment to the Central African Republic was an accounting error. VTB, the Kremlin’s second-largest bank, said on Wednesday that a software error had confused countries with obligations to it and awarded the CAR a nonexistent $12bn loan that was instead extended to Cyprus. “The accounting forms link the accounts to the countries. The links stopped working and the countries got moved all over the place,” said Dmitry Olyunin, VTB chief financial officer. VTB’s initial accounts for the third quarter of 2018 showed the bank was owed Rbs802bn ($12bn) in obligations by the CAR — a country whose GDP is only $1.9bn. The surprising disclosure ap-

peared to point to Russia’s growing involvement in Africa and its role in one of the continent’s worst conflicts. The CAR has become one of the key entry points for Russia’s renewed interest in Africa, beginning in December, when a team of military instructors and 170 “civilian advisers” arrived in Bangui to train the CAR army and presidential guard. Russia has since sent nine weapons shipments to the capital. The ties between the two countries have grown deeper, at the expense of former colonial power France. President Faustin-Archange Touadéra’s national security adviser is Russian. In July, three Russian journalists investigating Moscow’s growing role in the country were murdered by unknown assailants days after arriving in CAR. The publication that sent them said they were looking into the activities of Evgeny Prigozhin, a Kremlinconnected caterer who independent

Russian media claims owns Wagner, the main private military contractor for the Russian army. But bankers in Moscow said the sum was far too large for the CAR, which is one of the least developed countries in the world, with a GDP of less than $2bn, according to the World Bank. It contains huge deposits of diamonds, gold and uranium, but few investments have succeeded in a country where 80 per cent of the territory is controlled by more than a dozen rebel groups. VTB released an updated version of its accounts on Wednesday in which the CAR debt had been reassigned to Cyprus, where many beneficial owners of Russian companies are registered. Other mysterious “loans” to states like the Vatican and Grenada had also disappeared. The CAR denied receiving any money from Russia.

UK and Germany grow wary of Huawei as US turns up pressure Delegation from Washington warns against using Chinese supplier for 5G networks James Kynge, David Bond, Nic Fildes and Aime Williams

he UK and Germany are g row i n g w a r y o f a l l ow ing Huawei, the Chinese telecoms company, to install 5G equipment in their countries after a US delegation visited Europe to urge heightened vigilance against national security threats, officials said. The clear message delivered by the US delegation this month and in online communications is that Germany and the UK as key American allies must safeguard the security of their telecoms networks and supply chains, the officials said. The warnings come as Germany and the UK are preparing for auctions next year for 5G, a superfast service that will enable a new generation of digital products and

services. Huawei is the world’s biggest telecoms equipment supplier and has been seen as a frontrunner to build the first networks in both countries, where it has conducted extensive 5G tests. New Zealand this week became the latest country to take action against Huawei, blocking one of its biggest telecoms operators from using Huawei’s 5G equipment. The US and Australia have already blocked the company on national security grounds. In Germany, officials said that the mood in government was growing increasingly wary of Huawei’s potential involvement in building the country’s 5G network. While it is too early to say if Berlin will ban the Chinese company from participating, concerns in some parts of the government, including the foreign and interior ministries, is deepening, officials said. “The US influence on this has

really intensified recently,” said one German official, who requested anonymity. Cui Haifeng, vice-president of Huawei in west Europe, told the Financial Times in Hamburg that the company was doing everything possible to allay concerns over security. Asked if Germany was set to issue a ban, he said: “So far, I never heard about this kind of thing.” “[For] every technology for us at Huawei we always try to put the security and safety as top priorities so all the design, products and services will be safe,” Mr Cui said. In the UK the mood shifted significantly in the summer when a report from the centre set up to scrutinise contracts [Huawei kit and software] with Huawei, overseen by the GCHQ intelligence agency, flagged technical issues in the Chinese company’s engineering which posed “new risks in UK telecommunications networks”.

Maltina unveils 1000 smiles campaign to the world

igeria’s nourishing malt drink, Maltina has partnered with Noble Igwe, a publicist and media practitioner to capture 1,000 genuine smiles across Nigeria. The initiative tagged “1000 smiles with Noble, will allow the publicist capture everyday smiles of Nigerians in

a campaign premised on how a smile can change the world. In line with the brand’s essence to share happiness, Maltina through Noble Igwe, will be giving out Maltina cans to consumers across Nigeria, as he documents their smiles. The 1000 smiles campaign will

see both Maltina and Noble Igwe production team gather contents by taking photographs and recording videos of people giving reasons to share a smile and stay happy. The campaign promises to be interesting, fun-filled and adventurous for the consumers of the brand.

anzania’s government sent in the army last week, not to repel an invading force nor crush a terrorist threat. The army’s instructions were clear: buy cashew nuts. The intervention, which sent global cashew prices higher, was intended to resolve a dispute between buyers of the unprocessed nut and farmers. John Magufuli, Tanzania’s president and an African Hugo Chávez in the making, was reacting to a fall in prices. Because of a bumper west African harvest, raw cashew prices had fallen across the world. Tanzania, the seventh-largest producer, is a swing supplier of the chattering classes’ favourite cocktail snack. After requisitioning the east African country’s entire supply, prices rose. This is not the first time Mr Magufuli has intervened in global commodity markets. Last year, he accused Acacia Mining — majority owned by Barrick Gold — of massively understating the mineral levels in its gold and copper exports. Acacia had operated in the country for years, made good profits and paid its executives handsomely, Mr Magufuli noted. But it had somehow avoided paying much tax in Tanzania. In retaliation, he banned exports of unrefined gold and slapped Acacia with back taxes and fines of an implausible $190bn. Acacia vigorously denies accusations of wrongdoing, though Barrick did agree to make a $300m “good faith” payment and hand over a 16 per cent stake in each of Acacia’s three Tanzanian mines. Mr Magufuli is a thoroughly nasty man. His policies on freedom of expression, teenage pregnancy and gay rights are reactionary, to put it mildly. Like Chavez, the late Venezuelan leader, his resource nationalism is likely to end badly. Companies will hardly be lining up to invest in Tanzania. But like populist leaders the world over, Mr Magufuli is tapping into something real. Tanzanian farmers do indeed receive far too little for their cashew nuts. One only has to compare the lives of the people who eat the delicacy with those who produce them, many of whom cannot afford to send their children to school or pay for rudimentary healthcare. That is true of those who produce most agricultural commodities in poor countries, from coffee and tea to cocoa and vanilla. What is true of soft commodities is even truer of hard ones, such as gold, copper, diamonds and cobalt. In much of Africa, the miners who dig up these materials live short and brutish lives. They are often threatened by violence and environmental degradation. Meanwhile, those who benefit — which includes anyone with a nice wedding ring, an iPhone or indoor plumbing — live longer and more comfortably. The commodities on which we rely for our modern existence are too often the result of collusion between unscrupulous businesses and unsavoury politicians. People from the countries that produce that wealth — whether the Democratic Republic of Congo or Tanzania — do not share widely in their national patrimony.

Friday 30 November 2018

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BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

DB Schenker taps younger talent amid IPO talks

German logistics company goes for a more international board

Patrick McGee

erman logistics company DB Schenker has appointed three new members to its management board, making its key decision makers younger and more international as the group’s parent explores the possibility of spinning off the unit in 2019. The air, land and sea freight group employs 76,000 people and is one of Europe’s largest logistics companies. The appointment of the new board members comes just weeks after the head of Deutsche Bahn, the state-owned rail company and Schenker’s parent, said it revived discussions, following a collapse in 2016, on whether to sell a stake in the business next year. Arriva, Deutsche Bahn’s London-based passenger transport business, could also be listed. Deutsche Bahn has €20bn of debt and needs even more funds to modernise infrastructure and improve the service of its longdistance trains, which have an “unsatisfactory” punctuality rate of just 77 per cent. The new members appointed to Schenker’s management board are Xavier Garijo, 47, who will oversee contract logistics; Thorsten Meincke, 49, who will lead air and ocean freight; and Christian Drenthen, 52, who will head land transport. Mr Garijo, who is Spanish, and Mr Drenthen, who is Dutch, are the first non-German members of the management board, the company said. They will each begin on January 1. Mr Meincke will start in the first half of 2019. Selling stakes in Schenker and Arriva could help raise cash. A listing would also give Schenker the opportunity to raise its own cash from investors, rather than through taxpayers, as the group invests in digital offerings to combat tech groups encroaching into its territory. “What we cannot afford, by any means, is for someone to come between us and the customer — whoever controls the customer controls what gets sold,” Jochen Thewes, Schenker’s

chief executive, told the Financial Times. Logistics might be the backbone to global capitalism, but it has largely played a hidden role. With more companies viewing data as the “oil of the 21st century” in the way it is likely to drive the world economy, logistics is in the spotlight. This has increased competition led by groups such as Amazon offering same-day and even same-hour shipping. “Traditionally this was an industry where we had a lot of horizontal consolidation,” said Mr Thewes. “We used to buy each other to get market share because it was a scale business to expand the network.” He added: “We are now seeing more vertical integration — meaning you have the customer pushing into our space . . . Think about the big etailers who are doing their own fulfilment, their own transportation . . . obviously that’s traditionally what we do.” Such disruption was highlighted when France’s CMA CGM, one of the world’s largest shipping groups, offered to purchase the rest of Switzerland’s Ceva Logistics— a rival to Schenker — at a premium of nearly 50 per cent. The offer valued Ceva at SFr1.6bn ($1.6bn). Schenker is likely to be valued at up to €10bn, according to industry figures. Mr Thewes declined to speak about whether Schenker would seek an IPO next year, saying that is a decision for Deutsche Bahn. But, in essence, Schenker needs to accelerate making investments into digital offerings to avoid being wiped out by increasing competition. “The question is, are we building digital capabilities faster than they are building logistics capabilities?” he said. Last year Schenker announced it would invest €25m to build an online platform for freight forwarding and transport. It is now in the process of launching this “suite” of offerings. Germany is the first big market to use the platform for land, air and sea.

Bayer to cut 12,000 jobs in strategic overhaul Company to also sell non-core businesses in bid to regain investor confidence Tobias Buck

ayer, the German pharmaceuticals and chemicals group, has announced plans to cut 12,000 out of 118,200 jobs worldwide, in a bid to reduce costs and regain investor favour following a string of legal setbacks related to its Monsanto acquisition earlier this year. The measures include a plan to exit the market for animal health products, as well as its Coppertone sun care and Dr. Scholl’s foot care product lines. Bayer also plans to sell the group’s 60 per cent stake in service provider Currenta. “Including the synergies expected from the acquisition of Monsanto, Bayer anticipates annual contributions of €2.6bn from 2022 on as a result of its planned

efficiency and structural measures,” the group said in a statement. Werner Baumann, the Bayer chief executive, said: “With these measures, we are positioning Bayer optimally for the future as a life sciences company.” The group’s shares have suffered a sharp decline in recent months, after a California court awarded $289m in damages to a school groundskeeper with terminal cancer. The jury found that the man’s sickness was the direct result of his exposure to a widelyused weedkiller manufactured by Monsanto. The sum has since been reduced by a higher court, but analysts and investors worry that the avalanche of follow-up cases will be costly for Bayer all the same.

A listing would give Schenker the opportunity to raise its own cash from investors, rather than through taxpayers

Sink different? Apple eyes biggest monthly drop since 2008 Peter Wells

s Sir Isaac Newton might have pointed out, stocks that go up, must come down. And in the case of Apple — which is on track for its biggest monthly fall in a decade — its drop from the tree of market milestones has seen it hit numerous branches along the way. Apple shares finished 3.9 per cent higher on Wednesday, handing the stock its best one-day advance since August 1 in a broad rally that saw the S&P 500 jump 2.3 per cent higher. That still leaves the stock down 17.3 per cent this month, which puts it on track for its biggest monthly drop since September 2008 and the bankruptcy of Lehman Brothers. This could be one of its worst months of the past 20 years. At the close of $180.94 on November 28, Apple shares are now down 22 per cent from their record close of $232.07 on October 3. That puts them in a bear market,

typically defined as a drop of 20 per cent from a peak. On the way down, Apple conceded its trillion-dollar valuation. It first traded below the level at the end of October, which had been a particularly ugly month for tech stocks, although the iPhone maker remained more resilient to the downdraft than most. Apple became the first company to achieve a $1tn valuation on August 2. Concerns the company had reached a “peak iPhone” moment began to set in around the company’s results at the start of November. Apple disappointed investors with its outlook for the critical holiday shopping season and stirred concerns about transparency as it flagged plans to, in future, stop reporting unit sales of its devices. Additionally, a number of Apple suppliers variously cut their earnings guidance because the company had scaled back production orders for components in its newest line of iPhones.

That spooked investors even more, sending shares below the $200 mark and below their 200day moving average — a measure of momentum and long-term support — for the first time since May. The most recent branch Apple hit saw it briefly overtaken on Tuesday by Microsoft as the most valuable company in the world. Apple overtook ExxonMobil in 2011 for the title of world’s most valuable company. Apple’s drop warrants some perspective, though, as the argument could be made it was more resilient on the way down than other tech stocks. Its shares fell 3.1 per cent in October, less than half the drop of the S&P 500 that month, and compared with a 9.2 per cent fall in the Nasdaq Composite. Amazon, which was the second company to reach a trillion dollar-valuation, fell 20.2 per cent in October — its worst month since November 2008 — but has bounced back about 5 per cent this month.

G20: Financial difficulties weaken Argentina’s summit clout Problems overshadow host’s moment of prestige Benedict Mander

en years have passed since the first presidential summit of the G20 in Washington DC, and once again the host nation is in trouble. While the first G20 in 2008 was confronted by threats to the global economy after the collapse of Lehman Brothers, Argentina’s deep currency crisis this year has, say local experts, cast a shadow over the Buenos Aires forum. Recent months have brought a devaluation of the Argentine peso against the dollar of more than 50 per cent, 60 per cent interest rates and a $56bn IMF emergency bailout. Such factors have combined to tarnish President Mauricio Macri’s image as the man who would return Argentina to economic health. Further, the concern among some local commentators is that the problems may have sapped the government’s ability to handle the summit competently. As host, Argentina is technically only a facilitator but has the potential to play a key role when much is at stake for the G20. Most immediately, the summit presents an opportunity to stave off a trade war between the US

and China. Some fear for the very future of the G20, not least because some of its most powerful members, notably the US, thumb their noses at multilateralism. The precedent set by the summit in Hamburg last year is not encouraging. There, the US prevented a group consensus by refusing to sign up to an agreement on climate change. Nonetheless, Pedro Villagra Delgado, an expert in international law and the Argentine diplomat responsible for co-ordinating the latest G20 meetings, remains upbeat. He says Argentina’s status as one of the smaller group members is to the collective advantage. “If the presidency was held by of one of the biggest actors of the group, [that country] would not be able to be an honest broker, which is our role,” says Mr Villagra. He says this is especially important given concerns of a trade war. “When you have a situation that needs dialogue, the G20 becomes more important than ever,” he adds. It is the “pre-eminent mechanism” for world leaders to come together and discuss global problems informally.

Argentina, however, faces concerns about its credibility, says Patricio Carmody, of the Argentine council for international relations, CARI, and a former vice-president at US food and beverage group PepsiCo. Among the topics Argentina has chosen for the group to focus on is that of infrastructure for development, which touches on an uncomfortable area for the host country, he says. In a recent scandal, a series of notebooks kept by the chauffeur of a senior official in a previous Argentine administration detailed bribes related to public works projects. Even though this took place before Mr Macri came to power, it served as a reminder of corruption in Argentina’s infrastructure sector. Similarly, the country’s credibility on the G20’s core subject matters of trade and finance are in question. Despite Mr Macri’s best efforts, Argentina remains one of the most protectionist economies in the world, mostly thanks to his party’s minority in the Argentine congress and resistance from trade unions. Moreover, this year’s peso devaluation and IMF bailout are reminders of Argentina’s longstanding tendency to suffer bouts of financial vulnerability.

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New CBN fintech licensing regime: Why start-ups are not impressed FRANK ELEANYA

t may have been a remarkable year in terms of attracting the most investments in the entire tech ecosystem, and building solutions that impact communities. However, fintech start-ups are not ending 2018 as excited as it began. A policy statement issued by the Central Bank of Nigeria is at the heart of this disquiet. The Circular on the Exposure Draft of New CBN Licensing Regime was proposed with the objective to properly position the apex bank to address the “emerging issues of fintech with respects to cyber risks, risk management framework, capital adequacy, and better focused regulation and oversight operations.” What the policy actually says: Under the regime, startups that want to acquire a switching, PSSP (Payment Solution Service Providers), PTSP (Payment Terminal Service Provider), Non-bank merchant acquiring, and super agency license under the PSP (Su-

per License) category must have a minimum capital requirement of N5 billion. MMO (Mobile Money Operators), super agency and Non-bank merchant acquiring under the category of PSP (Standard License) have to meet a N3 billion minimum capital requirement. Minimum capital requirement for Super agency is N50 million, PSSP is N100 million, and PTSP license is N100 million under the category PSP (Basic License). Breaking down the terminologies: A payment switching and processing company is a payment processor. In this category are companies such as Unified Payment, Interswitch, and Innovectives among others. As at 2017 there were only eight licensed payment switching companies. Payment Terminal Service Providers (PTSP), some of which double as Payment Terminal Application Developer (PTAD) have the mandate of servicing and maintaining POS terminals in Nigeria. Companies under this category

include Citiserve, Itex, WIPay, eTop and Global Accelerex among others. There were 18 licensed PTSPs in 2017. PTDAs develop the software application that runs on POS terminals. Payment Solution Service Providers (PSSP) are licensed companies with payment and collection solution available in Nigerian banks. Some PSSPs include SystemSpecs, Interswitch, Vas2net, Upperlink and Parkway Project. As at 2017 there were only six PSSPs that were licensed by the CBN. Super Agents are companies licensed to act as agents to financial institutions for agency banking in Nigeria. The companies and their partners are expected to deploy, operate and manage robust, efficient and inter-operable agency banking and mobile financial payment networks, with selected retail outlets operating as agents under the framework, as approved by the CBN. InLaks, Interswitch Financial Services Limited, Innovective and 3 Line are examples of Super Agents.

Nigeria’s foreign debt service, payment jump 128% in H1 2018 IFEANYI JOHN

he Central Bank of Nigeria (CBN) says total international payments in the first six months of the year increased from $3.9 billion in H1 2017 to $4.7 billion in 2018. Total direct remittances accounted for 87 percent of the transactions, down from 91 percent last year as a 128 percent jump in debt service and payment pushed debt repayment to account for 9.1 percent of total international payments, a significant increased from 4.7 percent recorded in H1 2017. In the first six months of the year, debt service spending rose from $187 million in H1 2017 to $470 million in H1 2018. According to data com-

piled by the Debt Management Office (DMO), sovereign foreign debt repayment accounted for $427 million in the first six months of the year or 91 percent of total foreign debt repayment. The increase in foreign debt service in Nigeria can easily be tied to the increase in external borrowings in the past year. In February this year, Nigeria raised $2.5 billion in Eurobonds at rates greater than 7 percent per annum. Last year, Eurobond sales were off the roof. In February 2017, Nigeria sold over $1 billion in Eurobonds; by March it sold another $500 million in Eurobonds and by November the country sold $3 billion again in Eurobonds at rates above 6.5 percent, totalling about $7 billion in Eurobond

sales since early 2017. According to the DMO, there are currently 11 sovereign Eurobonds and Diaspora bonds in the market. A fresh Eurobond of $2.86 billion was issued in November, which could cause debt repayment costs to exceed $500 million in H1 2019. Rising debt servicing cost seemed bearable in the first half of the year when crude oil prices were rallying, but with the recent decline in crude oil prices, analysts are now worried that Nigeria may be borrowing excessively from foreign investors. Few weeks back, the International Monetary Fund (IMF) cautioned the Federal Government to be mindful of the country’s rising debt service to revenue ratio and take steps to mitigate the situation.

FG says non-approval of $30bn loan hinders rail projects STELLA ENENCHE, Abuja

inster of transportation, Rotimi Amaechi, says the non-approval of $30 billion foreign loan by the National Assembly has hindered the construction of the standard gauge line from Port Harcourt to Maiduguri. The minister made this known in a statement signed by the director, press and public relations, Mohammed Idris, on Wednesday. According to Amaechi,

“We didn’t abandon any rail project. All the projects are there. The truth is that we can’t go to work without funds and that has to come when the Senate approves the $30 billion loan request.” He explained that most of the Railway projects are to link the ports and when they are completed, the movement of cargos would then be made easier by Rail, thereby reducing pressures on the roads. The minister reassured that the standard gauge when completed would be beneficial to every Nigerian

irrespective of geo-political zone. Amaechi said the ItakpeAjaokuta-Warri Rail line, which was abandoned for about 34 years, had commenced free test run services from on November 25, and the free services would last for one month. The minister also assured Nigerians, especially those from the South East geo-political zone that every zone would benefit from the Standard Gauge Rail line being constructed by the Federal Government across the country.

Friday 30 December 2018

Leave my office order to BEDC MD: Market women, groups laud Obaseki’s defence of common man

ours after Governor Godwin Obaseki of Edo State walked Funke Osibodun, managing director of Benin Electricity Distribution Company (BEDC), out of Government House in Benin City, for throwing the state into darkness, business owners and various socio-cultural groups have continued to pour encomiums on the governor. Their messages to acknowledge the governor’s display of courage and his defence of the common man were also extended to his social media handles. One of the messages sent by Edorodion Frank, on behalf of Aisiokuo-Edo Group, read: “My great brother and your Excellency, Godwin Obaseki, the visionary and digital Governor of Edo State, thanks for sending clear signals to those onlookers who think you are weak or afraid to some compelling proactive radical decisions, which are in the overall interest of Edo people, no matter whose ox is gored. “But for those of us who know your upbringing and distinguished family back-

ground, we are not surprised at your proactive reactions against the unscheduled visit of the mischievous and conscienceless Managing Director of BEDC, who wanted to hide under the cover of the House of Representatives members, your visitors, to test the resolve of Edo people, which unfortunately for the woman, she forgot that your Excellency is the arrowhead and number one conscience of Edo people. “Sir, your reactions on behalf of Edo people have won the hearts of majority of residents in the state, including the opposition parties and the non-indigenes, particularly the Aisiokuo-Edo group who are watching political development in the state with very keen interest.” Meanwhile, the Association of Nigerian Electricity Distributors (ANED) has lent its voice to the ongoing row between the governor and the management of BEDC. Speaking in response to media queries, ANED’s executive director for Research and Advocacy, Sunday Oduntan, in a statement, said the umbrella body was displeased by the recent treatment of BEDC’s manag-

ing director by the governor during a visit by the House of Representatives Committee on Power to Edo State. In continuation of commendation, Frank assured, “The real grassroots and the major voters in the state are solidly behind you and your approach to good governance in Edo State, irrespective of political affiliation. Please keep the momentum alive.” Another group, the Benin Integrity Group, led by Uhunwa Ighodaro, wrote: “The Benin Integrity Group salutes Governor Godwin Obaseki’s patriotism and courage to defend the overall interest of Edo people and advises the governor to take more decisive and proactive actions in his burning desire to lay solid socioeconomic and infrastructural development of Edo State.” The group condemned what it described “as the embarrassing and unscheduled presence of the managing director of the BEDC, who mischievously gate-crashed into Edo State Government House in the company of the visiting facts finding committee members from the Federal House of representatives.”

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news you can trust I FRIDAY 30 november 2018

Opinion Restructuring for nation building and development (Part 1)

y reflections on the topical subject of restructuring will be in two parts. Today, we examine the basic principles for federalism and to establish the case of building a more rigorous and productive federal union. The second part, coming next week, will focus on the key elements required in the restructuring of our federation. Everybody talks of restructuring but few are truly committed to it. Some dread it, because they have been beneficiaries of the egregious injustices inherent in the military-inspired 1999 constitution. Or yet for others, it is a weapon with which they can bludgeon our union into dissolution. For my part, I believe in restructuring as a vehicle for nation building and development. Albert Einstein famously remarked that God does not play dice with the universe. Nigeria is not an accident. We were meant to be a city on a hill – a light unto the nations. The mandate of heaven for my generation is to make our federation work. Federalism, as everybody knows, is a constitutional arrangement whereby power is shared between a central government and constituent federating units. It is the norm where diverse peoples choose to live together while preserving their cultural and ethno-religious diversities. Central to the federalist philosophy is the devolution of power, with clear constitutional provisions regarding the rights

and prerogatives of the centre and the federating units. We must begin from first principles: What does a state exist for? And what are the duties of states as understood by statesmen and political philosophers from Aristotle to Thomas Jefferson and Barack Obama? To echo Mohammed Sultan Bello, what are the obligations of princes in our twenty-first century? The most universally agreed principal duty of the state is to safeguard the lives and properties of its citizens. Thomas Hobbes, the pessimistic English political thinker, argued that, in the state of nature, life is ‘nasty, brutish and short’. He made the case for the emergence of a Leviathan that will secure the common peace while preventing men from devouring one another. While Hobbes reached the pessimistic conclusion that the solution to this perennial problem lies in having strong kings who will unify the state while ruling with an iron hand, his compatriot John Locke argued strenuously for representative government based on the rule of law and the evolution of effective institutions that conform with the imperatives of liberty and justice. John Locke underlined the principle of consent as the foundation of the compact between men and powers. Men consent to be governed because the state provides them with a minimum of public goods such as security, the rule of law and liberty. When governments fail to provide

these public goods then the people concerned are morally as well as jurisprudentially justified to rebel, sometimes by force of arms. The French political thinker Jean-Jacques Rousseau pointed out that ‘man is born free, but everywhere he is in chains’. He famously articulated the notion of a ‘social contract’ as the moral foundation of statehood. Men agree to live in political communities because of the existence of a social contract between state and citizens. When that contract seizes to exist the moral legitimacy of the state is undermined and rebellion and upheaval become the order of the day. In our twenty-first century, the role and duties of the state encompass a wide spectrum of social and political obligations. These include: upholding the rule of law; effective monopoly over the instruments of legiti-

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Nigerian federalism was an edifice hanging on a “tripod”, which, by definition, is unstable. It only required one of the legs to be tilted for the entire structure to come crashing down

HumanAngle Femi olugbile Physician, psycho-profiler and essayist

t is another election season in the Nigerian nation, folks. Excitement is high in the air. Some of it, at least, is filled with positive expectation. Get your Permanent Voters Card! Your PVC is your right – get it! Your PVC is your power – use it! The cynic, or the realist, and sometimes in Nigeria those descriptions may be interchangeable, may be inclined to ask – ‘Is the vote not overrated?’ And indeed, how much optimism is justified by the history of the vote in Nigeria? A lot has happened with the vote. Elections have been won and lost, more or less cleanly, as acknowledged by people who should know. There was the election of MKO, for instance, acclaimed to be the ‘freest, fairest’ election up till that moment. Hardly disputed by anyone, except a ‘military president’ who refused to hand over, and a newspaper magnate named Nduka who was ‘commissioned’ to go on CNN the following day to try to tear it to shreds. And in 2015, for the first time in the history of the nation, a sitting ‘federal’ government in Abuja was actually replaced through the vote. All of this is the good side of the story. The voter’s card does count. Unfortunately, the other

mate violence; enforcement of creation of citizens’ rights through social policy; sound management of public finances; institutionalisation of a wellfunctioning civil service and governmental machinery; effective taxation; investment in human capital; aggregation of societal preferences, i.e. effectively articulating what society needs and providing the means for the pursuit and implementation of those societal choices; conflict resolution and management; provision of public infrastructures; effective provision of vital knowledge and information; and promotion of social justice. How can a government best fulfil these functions? The buzzword these days is ‘state effectiveness’ or ‘state capability’. A capable and effective state is one that is able to provide all its citizens with all those public goods that enable them to fulfil the good life. The ancient Greeks used to call it eudamonia or ‘flourishing’. The opening lines of the American constitution are glorious and unforgettable: “We hold these truths to be self-evident: that all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness.” The American Founding Fathers– George Washington, John Adams, Thomas Madison, Benjamin Franklin, Thomas Jefferson and the others – were men of the highest calibre. They

thought deeply about where they were coming from and where they were going as a people. Having a new constitution and establishing their own New Jerusalem was for them a matter of destiny over which there could be no compromise. Contrary to what many suppose, federalism is not a magic wand that solves all political problems. Federalism, which is the diametric opposite of the unitary, centralised system of government, is a constitutional choice made by political communities that want to live together while preserving each others’ differences. I have often heard the refrain, “we must return to true federalism”. Such talk has little or no meaning. To talk of “true federalism” is the same as talking about “true democracy”. Such an animal does not exist anywhere. There are different forms and degrees of federalism. Federal systems differ from the United States and Canada as they do from India, Australia, Malaysia and Switzerland. If the great insights of the nineteenth century French aristocrat and political philosopher Alexis de Tocqueville are any guide, the type, form and success of a federal system derives from the unique trajectory of a country’s history, its experiences, political conditions, unique challenges and the temperament of its people. What this means is that every country needs to evolve a federal system that works for its people and helps them to secure

necessarily the worst part of elections. That distinction is reserved for the electioneering process, which has taken the nation perilously close to the fire time and time again. The drama of the past eight years is instructive. In 2011, ordinary people queued up in Lagos, and other parts of the country, in silent solidarity with the boy without shoes from Otuoke, to

South’ area of the country to commence his own term in the Presidency gave a widespread feeling of optimism and a new belief in the Nigeria project. Four years down the line, it was a different story. Despite a stellar cast, the underdog of yore had become a blubbering freespending albatross on the necks of those who carried him on their shoulders. He had an army made up of local militias, and another army of overnight billionaires who had grown fat on government contracts and who were swaggering and swearing all over the nation, threatening anyone who uttered a dissentient word. Who can forget the vitriolic vituperations of ‘Pastor Reno’ directed at everybody in sight? Who can forget the ‘TAN Ambassadors’, or the loud brash voices of those who were going to ‘Take Over Lagos’? You will always recollect a rally held by the ‘TAN (‘Transformation Agenda’) Ambassadors’ in the Ajah area. You were passing on the express nearby when the ‘rally’ was wrapping, and the audience were spilling onto the streets. They were clearly not a representative sample of the local population, but what did it matter? They were puffed up and ready for a fight. In their midst were armed policemen and armed ‘civilian’ thugs. The people of Ajah scampered to get out of their way, and anybody who had the emblem of another party on their person or their property quickly removed it. On the other hand, nobody can forget the ‘monkey and baboon’ threat by Jonathan’s opponent of the day, either. It is all tawdry History, that

Now that another election season is upon us… side of the ledger is also loaded with facts that might be better forgotten. Voters in the recent polls in Ekiti being accosted by anonymous persons offering five thousand naira to vote for their candidate, with the catchy message ‘E dibo e se’be’ (‘Vote and fill your pot with stew’). Not a few took the offer and collected the ‘free money’. Did it sway their vote? Perhaps. And

perhaps not so much. The real worry should be that there is no report that any of the PVC wielding electorate felt so incensed by the action of the faceless agents, that he, or she, grabbed one by shirt and called the police to arrest the offender for interfering with their civic obligation. The transgressions, sadly, did not start yesterday, and are

not limited to Ekiti. Over half a century ago, it is said that Fani Kayode pere - Deputy Premier of Western Nigeria, Cambridge educated, perfect in elocution, went on radio in Ibadan to tell the citizens, who were showing open defiance to his party – the NNDP (Nigerian National Democratic Party) ‘Be e se ti’a, bee se ti’a, Demo o wole’ (‘Whether you vote for us or not, we will win’). It was an in-your-face declaration to the voting public – you can wield your voter’s card. We will win the vote – any which way. He was as good as his word. ‘Demo’ won, in a vote that was massively rigged. It was the beginning of the end of the First Republic. Conclusion? In Nigeria, the PVC is powerful, but not supreme, given the flaws in the voter himself, the politician, the umpire and the agencies of law enforcement. We may recast the challenge as ‘opportunity’, and say that all of the different stakeholders can, and should, raise their game, to get a better, more ‘democratic’ vote. There is hope. But the actual voting is not

vote in Goodluck Ebele Jonathan as their President. Despite the averments of party hacks, most of the people who voted the underdog into power did not need much persuasion, and hardly any required inducement. It was a symbolic and significant democratization of the highest office in the land, a chance once and for all to let it be known that every Nigerian was entitled to a shot at all the land had to offer. Many faithfuls of other parties crossed party lines to give their individual vote to Jonathan. The accession to the office of a man from the oil-producing minority ‘South-

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…the real significance of the 2019 elections may not be which of the two behemoths wins the formal vote -one of them will, inevitably, but the management of the organic discontents that have bubbled to the surface

THE NEW WEALTH OF NATIONS

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

their liberties while promoting social justice and collective welfare. We believe that the debate on the necessity of a federal system for Nigeria is now a settled one. The voluminous writings of the late sage Chief Obafemi Awolowo have shown conclusively that our destiny lies on the federalist road. From independence in October 1960 to the collapse of the First Republic in January 1966, it is clear that the federal system was defective. Continues online at www. businessdayonline.com is best forgotten, but can only be forgotten if the right lessons have been learned. Nigeria has come a long way. If the people do not demand anything of those seeking to govern them – the APC, the PDP, the refreshing new faces – Madam Oby, SFB, Sowore, Moghalu and all the others, they should at least demand a level of decency and decorum in their utterances, and in their interaction which has never been present in the Nigerian election culture, but which is a minimum the nation needs to move forward to take its rightful place in the world. The other thing to note is that the real significance of the 2019 elections may not be which of the two behemoths wins the formal vote -one of them will, inevitably, but the management of the organic discontents that have bubbled to the surface, and the irreversible movement that has been started to improve the content of the people’s lives by such measures as restructuring of the polity and awakening the potential of the grassroots through education and universal health. If the new faces continue to champion these, beyond 2019, they would be the real winners, and the behemoths will not be able to continue to dissemble, and to hold the minds of the people in thrall through base sentiment, as has sadly been the case heretofore in the Nigeria project. By the time of the next elections – who knows? This will be the true value proposition of a ‘Third Force’, which is what they are. And so – the nation waits, with bated breath to be acquainted with its destiny.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.