BusinessDay 30 Sep 2020

FMDQ Clear landmarks as Nigeria’s Premier CCP … SEC grants approval-in-principle for CCP registration

T

he Nigerian financial markets recorded a ground-breaking and game-changing milestone following the successful registration of FMDQ Clear Limited (FMDQ Clear) by the Securities and Exchange Commission (SEC) on September 29, 2020, to become Nigeria’s premier Cen-

tral Counterparty (CCP).

As a critical and much needed Financial Market Infrastructure (FMI), this laudable achievement re-defines the landscape for financial transactions as we know it and introduces endless possibilities to the scope of permissible products that can be developed and deployed within

the ecosystem towards delivering long-lasting prosperity to the Nigerian economy.

The FMDQ Clear CCP ushers in the actualisation of the outstanding building block that will enable the development of thriving repurchase agreements, derivatives, and commodities markets in Nigeria like other de-

trading feature that will catapult the growth of trading liquidity of financial products in the Nigerian markets to international standards.

In addition, the CCP, with its robust risk management structures and financial resources, is able to manage the consolidated risks in an operational-, cost-

veloped economies and markets.

As a critical FMI, FMDQ Clear, as a CCP, will interpose itself between two counterparties by becoming the buyer to every seller and seller to every buyer, thereby aggregating and consolidating counterparty risks and introducing the muchdesired counterparty agnostic

Continues on page 31

businessday market monitor FMDQ Close Benchmark NTB* & CP*

NSE

Foreign Reserve $35.8bn

Biggest Gainer

Biggest Loser

seplat

wapco

N398

0.50pc

N16

26,611.96

Everdon Bureau De Change

Bitcoin

-6.25pc

Cross Rates GBP-$:1.29 YUANY - 56.11 Commodities Cocoa US$2,573.00

Gold $1,892.46

Crude Oil $41.05

Market

₦ 5,041,073.30 -0.90

Foreign Exchange

Buy

Sell

I&E FX Window CBN Official Rate September 28, 2020

ntb

Benchmark Sovereign & Corporate Bonds

MTN Nigeria plc CP

FGN

Dangote Cement plc

Axxela Nsp-spv Funding 1 (Natural Gas) PowerCorp plc plc

Spot ($/N) 11-Mar-21 5-Mar-21 23-Jul-30 30-Apr-25 20-May-27 27-Feb-34 386.00 379.00

0.35 1.56

0.03 4.43

$-N 450.00 465.00 3m 1m 2m £-N 580.00 600.00 Currency Futures 30-Sept-20 28-Oct-20 25-Nov-20 389.54 392.38 395.23 €-N 515.00 545.00 ($/N)

-1.26

-0.01

7.74

7.30

6m 12m 24-Feb-21 25-Aug-21 403.75

420.81

-0.01

-0.12

8.29

9.85

60m 36m 30-Aug-23 27-Aug-25 498.32

590.10

*NTB - Nigerian Treasury Bills; *CP - Commercial Paper

news you can trust ** wednESday 30 september 2020 I vol. 19, no 661 I N300

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Government urged to create 10-year plan to build infrastructure, F develop gas for local use

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FrieslandCampina WAMCO acquires Nutricima’s dairy business

Odinaka Anudu

Experts call for policies to improve regulation, gas pricing ISAAC ANYAOGU, STEPHEN ONYEKWELU & DIPO OLADEHINDE

N

igeria has ridden on the back of oil for more than 50 years, and now is the time to fly on the wings of gas. If the country will achieve its potentials it must begin a decade-long plan to deepen gas for local use in industries, build infrastructure and commercialise gas. This is according to

Tony Attah, managing director/ CEO, Nigeria Liquefied Natural Gas (NLNG).

In remarks made at BusinessDay’s annual Energy Conference, Tuesday, Attah said Nigeria was not short of policies around gas, what would make the difference was the ability to implement them.

“We say it is a year of gas, but you cannot in one year achieve much to develop gas and become a gas nation,” he said, say-

ing, “We really must be bold to declare a decade of gas and then establish a 10-year window within which the commercial framework to enable Nigeria harness the value of its gas resource and to galvanise domestic utilisation to lead to industrialisation needs to happen.”

Timipre Sylva, minister of state for petroleum resources in his speech at the event, highContinues on page 31

rieslandCampina WAMCO on Tuesday completed the acquisition of Nutricima’s dairy business in Nigeria.

FrieslandCampina WAMCO acquired the company’s production facility in Ikorodu, Lagos State, and the brand’s Olympic, Coast and Nunu, a range of powdered, evaporated and readyto-drink milk products. Market sources say these brands already have a good presence across the Nigerian dairy market already.

FrieslandCampina WAMCO says the acquisition underlines its continued commitment to contribute to the development of the Nigerian dairy sector.

“The acquisition satisfies the need for additional production capacity for FrieslandCampina WAMCO to meet the growing

demand for locally produced evaporated and powdered milk

by Nigerian consumers,” the company notes in the statement signed by Ore Famurewa, executive director, corporate affairs.

In March, FrieslandCampina and PZ Cussons signed an agreement regarding the acquisition. With this acquisition, Nutricima’s dairy busiContinues on page 31

Inside

‘We will be riding on a new platform to success at HealthPlus’ P. 24 Nigeria to link Apapa, Tin Can, Warri ports, others to rail network P. 30

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Terribly divided at 60: Will there be a United Nation!

Franklin Ngwu

I

n a reply to the growing accusations of the PMB government as ineffective and dividing the country with nepotistic policies, actions and inactions, the Presidency through Femi Adesina unsurprisingly maintained that PMB inherited a ‘terribly’ divided country.

And not done, he traced the division to 1914 and as such nothing new and nothing to worry about. Focusing mainly on General Olusegun Obasanjo and Professor Wole Soyinka, Adesina dismissed their counsels with the view that they are habitual critics of every government who never supported the PMB quest for power in 2015. Wonderful and interesting submission!

No doubt that Nigeria has been divided since 1914, the question for Chief Femi is what has the present government done to heal and unify a divided country since their triumph to power in 2015.

Is it through the lop-sided appointments most glaring in heads of security agencies and other sectors?

Is it through equitable distribution of heads of the executive, legislature and judiciary arms of government or in the transparent and just application of policies, allocation of national resources and recruitment in our public agencies?

Revising the question, why is there

a rapidly growing consensus across Nigeria that PMB’s government has through actions and inactions created more divisions and disunity like never seen before.

The problem with Nigeria’s leadership particularly PMB’s government is the unfortunate unwillingness to appreciate that Nigeria is a very plural society and then the appropriate structure of governance to achieve sustainable growth. Nigeria is like a malaria patient that is being treated with paracetamol due to improper diagnosis by the medical team.

Expectedly the patient will have volatile temperatures with illusionary signs of recovery. Lower temperature in the morning, high in the afternoon and mixed in the night. With such volatility, the focus of attention moves to the changing temperature rather than the cause of the changes.

While the medical team will blame the patient possibly due to his reluctance to continue with the unending medication or external relations urging the patient to disobey the medical instructions, the spiritually connected will blame it on an evil spirit that comes in the afternoon and night.

To another medical team, the situation is due to the behaviour, cluelessness or body language of the chief consultant or medical director.

If the chief consultant is eventually changed possibly after four or eight years of trying, some of the doctors, nurses and other members in the team will quickly join the new chief consultant blaming the old and former chief consultant for his lack of firmness to insist on the dosage of paracetamol.

After a sudden increase in paracetamol and the ailment subsides and persists, the chief consultant and his new team quickly takes credit for the temporary relief and subsequently

‘

With an immense power at the centre, Nigeria has been turned into a theatre of power competition instead of a centre for development competition

blames the ailment persistence on the fake paracetamol administered by the former chief consultant and the blame goes on while the patient’s health deteriorates.

At 60, looking at his vast resources, his wives, children born and unborn, the patient begs to live! Will he survive to see and enjoy the potentials of his big polygamous family? Yes, he might but depends on the humility of all his medical teams particularly the present one to do a proper diagnosis of his ailment and offer the appropriate medication.

Just as paracetamol cannot cure malaria, so is the impossibility of Nigeria’s sustainable growth and development with the present structure of governance. What we need is a structure of governance most suited for a plural society.

According to Van Den Berghe (1964: 2), “a society is pluralistic to the extent that it is structurally segmented and culturally diverse. In more operational terms, pluralism is characterised by the relative absence of value consensus; the relative rigidity and clarity of group definition; the relative presence of conflict, or, at least, of lack of integration and complementarity between various parts of the social system; the segmentary and specific character of relationship, and the relative existence of sheer institutional duplication (as opposed to functional differentiation or specialisation) between the various segments of the society.”

With the above a perfect description of Nigeria, our focus as a country (particularly our leaders) is to identify, accept, apply and sustain a structure of governance that is suitable for a plural society. That structure is a properly organised devolved system of governance. Anything to the contrary pre-

sents us with one option. The country will continue in her free fall until it completely fails and disintegrates. As this is the most unlikely outcome that anybody will want including the present government, the only alternative is to make hay while the sun shines.

With an immense power at the centre, Nigeria has been turned into a theatre of power competition instead of a centre for development competition.

As such, who becomes the president and the tribe of the person becomes a do or die affair. Nothing matters in the assessment of the individual than his tribe and loyalty to his government most prominent from his tribesmen!

Should we continue like this? I don’t think so! There is no justification and it benefits nobody.

Since, 1960, the North has been in power more than any other section in Nigeria. However, in all development indices the North is behind. In the last National Bureau of Statics report on poverty in Nigeria, about 17 states in the North are included in the 20 states with the highest level of poverty.

Recalling that almost all sections of the country experienced reasonable growth and unity when we had regional government even with little resources, is not an option we can rethink, refine and adapt for sustainable and inclusive growth and development of Nigeria. As the centre cannot effectively hold and grow Nigeria, trying an alternative through power devolution to the regions and states might not be a bad idea. Another 60 years is not guaranteed!

Dr. Ngwu, is an Economist/Associate Professor of Strategy, Risk Management & Corporate Governance, Lagos Business School and a Member, Expert Network, World Economic Forum. E-mail- fngwu@ lbs.edu.ng

Stakeholders deliberate on education funding through PPP at KCOBA lecture

B

y now we all acknowledge 2020 as a remarkable year for everyone, in every regard, positive and negative.

Although the crisis has been more than any we have ever seen in our lifetime, it is a forgone conclusion that this is beyond a health crisis; the socio-economic implications are more far reaching especially in the education sector which is the focus of my submission today. We already had a crisis of sorts within the sector, but the pandemic which resulted in a lot of schools being shut down to embrace virtual learning has unmasked the inequities and deepened the existing problems.

As part of activities to celebrate the 111th anniversary of the founding of King’s College, Lagos, a crop of brilliant minds deliberated on the challenges in the educational sector, the future of education and the way forward. In his keynote address, Professor Yemi Osinbajo GCON; (Vice President, Federal Republic of Nigeria) set the tone by saying this lecture is not about looking back, it is about the future, and the future is now. We have to acknowledge the main endowment of this, and indeed any country, is its people. He made it clear this generation of young people need to be prepared for a world that thinks and operates differently from what we are used to.

According to the VP; every nation that has prospered has come to accept as a norm that education must lift the mind of the people beyond self; there must be a demonstration of well-established moral standards; corruption and deviance must be the exception not the rule. In his words, ‘’How effectively we are

able to educate and empower our people, will determine the outcome of our economic aspirations, and how we are able to compete globally.’’

In her keynote speech, Amina Mohammed; (Deputy Secretary General, United Nations) stated that getting students back into school must be our priority; according to her, since the outbreak of the Covid-19 pandemic, over 260 million children globally have been cut off from e-learning, and 5.9 million learners in Sub-Saharan Africa may never return to school due to the lost time, further widening the gaps in the education system. She asserted ‘’this is an opportunity to re-imagine education, and make educational technology and digital capability available and accessible to the most vulnerable societies, including teachers.

For this to happen, education cannot depend on technology controlled by the private sector.’’ She insists the education system cannot develop without trained and motivated teachers, who need to deliver a system that teaches how to respond to the work and societal demands of the future. She implored all to use the recovery of covid to build a better world; a world where the human relationship between student and their teachers is not lost but where required digital tools for open access is paramount.

In a robust panel discussion moderated by Ituah Ighodalo who is the Chairperson of the KCOBA 2020 founders week and which had Gen. Babagana Monguno, (National Security Adviser); Chukwuemeka Nwajuiba; (Minister of States for Education, represented by Architect Sonny Echono, Permanent Secretary, Federal Ministry of Education); Olumide Akpata, (Presi-

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dent, NBA); Hakeem Adeniji-Adele; (former Chief Technology Officer, Microsoft) and Ifueko Omoigui-Okauru; (President, Queens College Old Girls Association), as discussants, the key issues were tackled in a deliberate conversation with action points to revolutionise the sector.

What came out quite clearly in all their submissions is the fact that education is the most powerful weapon you can use to change the world and Nigerians are known to be gifted with a mental acuity that is extraordinary so all hands must be on deck if we are to see significant change in the sector. Government resources alone cannot drive education especially with the quality of education we know our people need. All conversations on education will be futile if we fail to adequately carry along all cadres of society, especially the poor, underprivileged, and the girl child. The need for funding to adequately equip the sector could not be over-emphasised.

The President of Queens College Old Girls Association, Ifueko Omoigui-Okauru focused on the girl child and the need to instill not just academic skill in our children, but consciously build the right behavioral traits; teachers and parents’ alike need to encourage curiosity, selfworth, self-confidence and courage. Hakeem Adeniji-Adele, as expected, gave his tech-based perspective, reiterating the need to adequately empower the students of today to shape the world of tomorrow. The digital divide is widened so much that children that cannot access digital learning tools may never catch up with their peers who have such access.

On another note, The President of the

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Dapo Akintoye

Nigerian Bar Association, Olumide Akpata, reminded the panel of the fact that discussions on Public Private Partnerships for Unity schools, (of which Kings College is one), have been in the works for almost 15 years; he insists this as a solution to funding for the education sector.

Indeed, the King’s College Old Boys Association (KCOBA) have between them distinguished personalities that can set the college on the track to being one of the best in the world and altruistic investments from private investors can help raise the bar.

Representing the President of the Federal Republic of Nigeria President Muhammadu Buhari, Mr. Ibrahim Agboola Gambari, Chief of Staff; in his words, “The Federal Government is interested in the outcomes of these deliberations.’’

After all is said, we cannot help but agree with the UN Deputy Secretary General when she said; The future of education, and the future of society, are inexorably linked….and tackling the issues within that sector is a challenge for you, me and the collective whole.

Dapo Akintoye, a marketing consultant, writes from Lagos, Nigeria.

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Insecurity and the death of rural credit markets (3) Small Business handbook

Emeka Osuji

I

was in Enugu in the Southeastern part of Nigeria, over the weekend, to show be with a good friend whose daughter got married in the traditional way. Nigerians use their weekends in ways slightly different from their counterparts in Europe and America.

We use the much of the time to settle share friendship. That, to us, is a great way to relax. For the average Nigerian male, a fun way to relax is to don the latest design of “Senator Caftan”, “agbada” or “babanriga” and head for a noisy (loud music) social event on weekends. I had one of those rousing times in the Coal City.

The event was peaceful because it was held in a serene village in the

outskirts of the city. The music and traditional activities were soothing, though the peace interrupted was from time to time by blaring sound of siren, signaling the arrival of some of the many deities that run Nigeria, as they arrived.

Driving through the rich Independence Layout neighborhood, I had fun looking out of the window, turning my neck left and right. Before you think of bandits and insecurity, let me quickly say that it was not for any such fears. I was busy reading the messages advertised on every available space, including the walls of uncompleted buildings.

Evidently, I was in the bowls of one of the most enterprising people of Nigeria. Being a microenterprise enthusiast, I was making a mental note, and doing a pseudo-census of the many small businesses that boldly lifted their banners in advertisement contest with the big firms whose big banners stood tall on the roadsides. One advertisement hit me like a thunderbolt.

This advertisement was handwritten and on the perimeter wall of an uncompleted building, beside which was hoisted the shouting message from a new generation bank, marshalling out its many services, including loans and advances. This advertisement read: “Stop and called us. We are the moneylender you are looking”.

This message was written in white paint, which dripped down as though to warn the potential borrower that a time of weeping and dripping of tears is not far ahead for anyone who

respond to them.This set me thinking of the moneylender and why he continues to wax stronger, despite his obnoxious conduct and public policy aimed at displacing that kind of financial intermediation.

Stieglitz and Hoff had noted that the experience of most governments and institutional funding sources in the past several years is that “the moneylender not only refused to be displaced but became even more important in the informal credit markets”.

To support this view, we all know that interest rates charged by moneylenders have remained very high despite the many financial packages, which monetary authorities, like the Central Bank, have deployed to the informal sector operators. This is the evidenced that present institutional alternatives to the moneylender have not quite succeeded in their desire to displace him.

A paradigm shift is inevitable if we are to find answers to the problems and puzzles in the informal credit market, regarding the survival of the moneylender despite the high cost of its funds. In Economics, we learn that interest rates serve to allocate funds in the market. One of today’s imponderables is that interest rates no longer effectively deliver the service of an equilibrating mechanism they were known to be, in formal credit markets. It is often the case that many small businesses fail to find lenders even when they are willing to pay very exorbitant rates. This seems to negate the well-established economic principle that a good price

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It is often the case that many small businesses fail to find lenders even when they are willing to pay very exorbitant rates. This seems to negate the well-established economic principle that a good price will call forth supply at any time

Dr Osuji is head of the department of Economics at Pan Atlantic University Lagos. eosuji@ pau.edu.ng @Emekaosujii, Twitter: emekaosuji_

Random musings

I

remember feeling so cool with myself when my headmaster told me during my primary school days that I had a photographic memory. For several weeks after that, I felt like I was on cloud nine. I’d never heard of that term before but boy, did it make me feel clever. The euphoric feeling didn’t last too long though.

In fact it came to an abrupt end a few weeks later, when I flunked my maths and science exams, plus a couple of other subjects too, for good measure. So I wasn’t a yet to be discovered genius after all.

As we grow up and as we grow older, it is expected that our understanding will increase. A child who misconstrues what a photographic memory means and mistakes it for genius can easily be excused for his ignorance but an adult who does the same when all evidence says otherwise, may not be described in such charitable terms.

I remember that when I was a child, whenever I injured myself while playing (which unfortunately was quite often), my father would get so angry. I couldn’t quite understand it. Shouldn’t he have some pity and feel for me? My mum on the other hand would pet me and sympathise, but not him.

It was only when I became a parent myself that I began to understand as life came round full circle. I found that whenever my children injured themselves, though I was very concerned, my initial reaction would be to tell them off. Why? I guess it felt as if they had put me in a position of helplessness and I resented that. If I could somehow remove

the pain from their bodies and transfer it to mine instead, I would do so in an instant.

That would be far easier to bear than to watch one’s child writhe in pain while feeling completely helpless. Now I know how my daddy felt. The natural instinct of a husband and a father to protect his brood sets in motion but such instances only remind us of our limitations as human beings.

Someone once said, manhood or being a real man is to be a sacrificial servant and a willing partner in a partnership. It has as much to do with recognising that one hasn’t been called to provide all the answers as it does with assuming leadership. Believe it or not, the two are not mutually exclusive. As Tammy Dollar rightly points out, there are different graces and abilities apportioned to each person and recognition and acceptance of one’s limitations is strength, not a weakness. Such understanding is often the source of making good judgements, itself a physical manifestation of wisdom or if you prefer, wisdom in action. The good Book says, “The prudent see danger and take refuge (in wisdom) but the simple keep going and pay the penalty”. And if I may add to this, vulnerability is not the exclusive preserve of the female gender; it’s what makes us all human.

It was Andrew Wommack who said many people believe life is all about, “Get all you can, can all you get and then sit on your can”.

It’s against this background that John Wesley’s words spoken well over two hundred years ago, still continues to reverberate. He

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pronounced that your primary pursuit in this world should be to, “Do all the good you can, by all the means you can, in all the ways you can, in all the places you can, at all the times you can, to all the people you can, as long as ever you can.” I think you get the gist. Don’t stop.

There’s no experience, pleasant or agonising that lacks value. Like I heard a man once say, we shouldn’t “waste our pain”.

It was Friedrich Nietzsche who rightly observed that there are no beautiful surfaces without a terrible depth.

Use your life lessons to instruct, motivate, encourage, direct and empower others who might be going through or may still go through a similar situation. As a businessman, a career person or a parent, educate others to avoid pitfalls you may have fallen into during your journey. As a leader or a mentor, aim to inspire and ultimately enrich the lives of others by divulging secrets to success from your wealth of experience.

Many a time in life, your biggest stories will have less to do with the actual subject matter than with their significance - less to do with all the facts of that situation or even what you did, and more to do with how it affected you and shaped you into who you’ve become.

That’s the crucial element that really strikes a chord.

The careless use of so many words, terms and phrases has emptied them of their meaning. Though success goes by many definitions, one which fails to highlight the profound benefit derivable by others,

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will call forth supply at any time.

The failure of institutional intervention, lends support to the proposition that rural credit markets are significantly competitive in nature and that the high interest rate charged by the moneylender is a reflection of a the risk management capability of the informal credit markets.

Indeed, it reflects the fact that the lender factors into his analysis, the risk of non-payment by the borrower.

This is very plausible, considering the dearth of information in that market.

The lack of complete information in the rural credit market, otherwise known as information asymmetry, is fundamental to risk analysis and cost of funds in that market.

Essentially, the point being made is that due to the lack of information about borrowers and their undertakings, lenders place a premium on poor borrowers to compensate for the high risk of lending to them. This principle is of course applicable even in formal credit markets. Banks use pricing as an instrument of credit selection. They try to weed off very risky transaction by applying higher rates.

Another consequence of information asymmetry is what has been termed adverse selection - when lenders make loans to borrowers not on the grounds of business viability or ability to pay back but on their willingness to accept the very high interest rates applied as premium.

Many such loans get lost though.

Character Matters with Daps

Dapo Akande

I believe lacks merit. John Calvin said, “All the blessings we enjoy are Divine deposits, committed to our trust on this condition, that they should be dispensed for the benefit of our neighbours.” We will do well to remember that not all blessings appear as glittering gold, lest we carelessly let them pass us by.

I’m sure the last thing any of us would want would be to find ourselves lumped in the same bracket as the man seen squeezing his face like a smart person who’s thinking of the solution to a problem but who never ever has the answers... Lol. Such a person is of no good to anyone.

Changing the nation...one mind at a time.

Akande is a Surrey University graduate with a Masters in Professional Ethics. An alumnus of the institute for National Transformation and author of two books; The Last Flight and Shifting Anchors. Contact: dapsakande25@ gmail.com

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The Republic of Benin: A goldmine that doesn’t know it yet

David Hundeyin

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atrice Guillaume Athanase Talon is quite possibly the luckiest president on the entire African continent.

It is a real pity that he does not seem to know it yet. Having ascended to power in the Republic of Benin in 2016, Talon’s most significant policy impression has been to make noises about taking Benin out of the CFA monetary union which is perceived - rightly or wrongly - as a neocolonial tether to France. Benin meanwhile, is perfectly positioned to be a West African Switzerland if it plays its cards correctly, but like his predecessors, Talon’s ambitions remain small and localised.

It is well known that Benin is one of the biggest beneficiaries of Nigerian foreign trade, both above and under the table. Whenever the Nigerian authorities decide to wield the trusty old import ban hammer on a particular in-demand item in the finest tradition of Ibrahim Babangida and Muhammadu Buhari, that item finds its way to Benin and from there into Nigeria via the nominally demarcated border. Indeed while trade volumes between both countries have suffered since Buhari’s border

closure policy brain fart, it is typically only the open and declared trade that this has affected. Both countries after all, share too much in common for a French and British-drawn line in the sand to be material. The real problem with the relationship between Nigeria and its smallest immediate neighbour is that Benin is thinking too small.

Dear President Talon: Think big!

Presently, Benin serves as a transit port for items heading into the West African subregion, and it also has a significant commodity export output, with cotton making up as much as 40 percent of its total exports. It has close trading links with Nigeria, but the problem with this relationship is that it is the relationship between a crocodile and a bird that eats insects off the crocodile’s hide. Sometimes the crocodile forgets that it is meant to be a symbiotic relationship and attacks the bird, as Nigeria has done over the past year with the border closure economic voodoo policy.

Benin is far too exposed to Nigeria’s policy and economic shocks, and it also maintains a stubbornly welfarist internal approach to labour management. As much as 75 percent of Beninois residents are estimated to belong to a formal trade union. What this means is that its typical annual GDP growth of 5 percent is too slow to keep up with its population growth, and a single policy out of Abuja can kill or revive its economy. It could do so much better than this if it saw itself not as Nigeria’s 37th state by default, but as a mini-Switzerland.

Benin has three extremely important things going for it - its location right on the border with Nigeria’s most economically productive area; its close historical and cultural ties with southern Nigeria; and its su-

premely, almost unbelievably stable CFA currency. Its location gives it the competitive advantage of being physically close enough for people in Lagos and Ogun state to physically transact business without much travel. Its close cultural, ethnic and historical ties with the aforementioned states makes it easy for people from there to interact with it for business and tourism purposes.

Most importantly, the CFA and its ability to store value on a level almost approaching that of the Euro potentially makes Benin a hot destination for Nigerian money seeking stability but easy proximity. In making noises about ejecting Benin from the CFA however unrealistic such pronouncements may be - President Talon is once again like all his predecessors, failing to see the bigger picture and appreciate just what Benin could be if it plays its cards right.

Welcome investment. Build roads. Adopt English.

To fully prepare Benin to become the recipient of billions of dollars worth of Nigerian money and relatively wealthy Nigerians seeking safe haven, Benin has really just three jobs to do. The first thing it needs to do is to overhaul its banking laws and tax regulations to make it easier for ECOWAS passport holders to open accounts and become domiciled in Benin. The Emirate of Dubai provides an example of how successful this strategy is. Dubai’s residents do not pay income tax, and businesses only pay a single-digit flat rate. The result of this policy is that oil now accounts for less than 1 percent of Dubai’s GDP, and its government has no problem funding itself.

Benin already has an idea of what it means to benefit from Nigeria’s inefficiency, but it is only doing so on a

‘

To fully prepare Benin to become the recipient of billions of dollars worth of Nigerian money and relatively wealthy Nigerians seeking safe haven, Benin has really just three jobs to do.

The first thing it needs to do is to overhaul its banking laws and tax regulations to make it easier for ECOWAS passport holders to open accounts and become domiciled in Benin

small scale. That country now needs to become intentional about actively attracting monied Nigerians across the border with the promise that the CFA will stop their cash holdings from losing value, they will have a low and simple tax regime, and they will have full property rights. The logical next step after doing this is to make English the country’s official second language and aggressively push for Beninois children in schools to learn English.

It is a simple calculation - if the future prosperity of Benin lies in plugging into Nigerian wealth, it logically follows that both Nigerians and Beninese must speak a common language. In addition to opening Benin up to Nigerian investment, English is also the world’s de-facto trade language, which opens the possibility of cultivating new trade relationships beyond West Africa.

When this is done, the final step on the road to converting Benin into a West African Luxembourg will be to aggressively invest in infrastructure to bring wealthy Nigerians across the border.

This means roads. This means rail lines. This means a bilateral air agreement to bring down the cost of flying to Cotonou. This means adopting a more visible and ambitious diplomatic engagement policy toward Nigeria. This means a media and publicity charm offensive on a scale only perfected by Paul Kagame’s Rwanda. All of this can realistically be achieved within 10 years.

They just have to hope that Mr Talon or his successor can finally learn to think big.

David Hundeyin is a writer, travel addict and journalist majoring in politics, tech and finance.

He tweets @DavidHundeyin.

Rethinking government’s role in the power sector

Government’s participation in the power sector should be strictly restricted to monitoring compliance to regulatory rules and not participation in the power market

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n expert surfer usually needs to have both feet planted firmly on his surf board as he glides gracefully and purposefully over the crest of the wave he is riding, his eyes laser focused in the direction of his progress, ignoring everything around him including the thunderous crash of the water behind him. A surfer cannot surf successfully standing with one foot on the surfboard, and his other foot trailing in the water. Both feet should be planted firmly on the board. This same approach applies to the leaders of a country in addressing ailing or moribund infrastructure that must be resuscitated as a matter of urgency to prevent economic demise of the country.

The power sector was unbundled and partially privatised in 2013, with a plan to complete privatisation within the decade. The Federal Government of Nigeria (FGN) however retained 100 percent ownership of the Transmission Company of Nigeria (TCN). In 2012 the FGN signed a management contract with Manitoba Hydro International of Canada to overhaul TCN and improve the network. The contract ran for three years, and was renewed for an additional year, after which management reverted to the FGN. By the end of the contract term, it was concluded that Manitoba Hydro made no appreciable improvement to the network.

It is alleged that their apparent non-performance was attributed to political interference by the FGN into Manitoba Hydro’s work during their contract tenure. It was reported that

the Bureau of Public Enterprises (BPE) had earlier suggested that TCN be concessioned to a private operator who would be taxed with injecting the required funding to rehabilitate and upgrade the network and operate it efficiently and profitably. This proposal as well as others for private ownership, investment and operation were ignored, and TCN therefore remains in FGN’s hands with its less than 6,000MW transmission capacity.

Seven years after the partial privatisation, not only has the privatisation not progressed further according to plan, we appear to be going back to an era where the sector is primarily government controlled with its attendant inefficiencies. Effectively, the government has one foot in the power sector as the regulator, which they should certainly be, and the other foot in as an “investor”/operator, which they should not be. So like a poor surfer, progress is not being made and the Nigerian Electricity Supply Industry (NESI) is not progressing towards the desired target destination of a deregulated, privately owned, well-funded, efficient infrastructure that supports industrialisation of the country, and as a corollary, organic growth of Nigeria’s economy.

Since privatisation of the power sector on November 1, 2013, the national grid has witnessed 83 total grid collapses, and 25 partial grid collapses. Actual power reaching consumers from the national grid continues to remain below 4,000 MW, and some predictions have it that by 2025, this number will remain less than 10,000MW despite new initiatives, continued

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fund injection and promises by the FGN. A large part of the issue with the NESI’s growth has been attributed to the non-cost reflective power tariff charged by Distribution Companies (DisCos), which ultimately affects the rest of the NESI value chain, from gas suppliers and transporters, to the Generating Companies (GenCos) who get paid based on the DisCos’ revenue collection from end customers. This issue has been the bane of the sector’s growth and has been driven primarily by the government and its agencies, especially the electricity regulators, including Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Bulk Electricity Trading Plc (NBET).

In a scenario where private companies run the NESI completely, tariffs would be set by these companies based on their cost of producing and delivering electricity to end users plus a margin to allow for a reasonable profit.

It would be the sole prerogative of customers to buy electricity from the private companies at the rate it’s offered or to source their electricity through alternate means, including but not limited to private standby generators. In such a scenario, electricity would be treated purely as a commodity, which it is, rather than a social service that the government owes its citizens.

Unfortunately, tariffs are currently dictated by the regulator rather than the companies that are expected to make the required investments that run into hundreds of millions of dollars to improve the sector. It would be expected that an increase in electricity tariff would be

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Chukwueloka Umeh

accompanied by a noticeable improvement in service in terms of the number of hours of uninterrupted electricity received by a customer per day. The current tariff increase of September 1, 2020, dubbed “service reflective tariff” compels consumers to pay in most cases, more than 100 percent of their previous rate on the condition that they deliver a minimum of 18 hours of electricity each day.

As expected, there has been a large uproar from the populace because they are paying the higher tariff, but not getting the expected service in many locations. Also as expected, this uproar has resulted in the government reversing the increase on September 28, 2020, barely less than a month after the increase, pending the result of a new committee set up by the FGN to review the rationale for the increase.

For how long are we going to continue flipflopping on the power sector because of the government’s involvement in its operation?

Nothing good comes easy, so it is high time to take the tough decision, complete the privatisation, create meaningful policies to guide the NESI and allow it to grow organically for the good of Nigeria and Nigerians.

Dr. Umeh is the managing director/CEO of Century Power Generation Ltd and the Group Chief Operating Officer at Nestoil Group.

F a

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Wednesday 30 September 2020

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Editorial Publisher/Editor-in-chief

Frank Aigbogun editor Patrick Atuanya

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

Policy inconsistencies will weigh on Nigeria’s recovery

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After the contagion, the government must stay the course of reform

olicy uncertainty and inconsistency has been a major culprit among several fundamental factors that have kept both local and foreign patient capital away from the Nigerian economy, it is the reason why investors take speculative positions in the capital markets and why a chunk of our foreign reserves is flighty. Investors worry about the inability of the Nigerian federal government to maintain clear and consistent policies pursued when a crisis happens, only to revert post crisis.

This behaviour is not market friendly and must stop if we must advance as an economy.

The current COVID-19 pandemic has forced the Nigerian authorities (fiscal and monetary) to roll out policies in a bid to ameliorate the impact of the virus on the economy. We’ve seen the FG end petrol subsidy, and hope the government won’t succumb to the pressure of the Labour Union Congress to reverse its policy.

This is not a new development in the history of Nigeria.

Subsidy removal has always been a response to a crisis, say, when oil prices plummet, and yet after the crisis, it is reversed when prices begin to trend upwards. A refusal to fully deregulate the downstream sector, put an end to price fixing, is a refusal to open up the space for private investment which would spur healthy competition and growth in the industry.

The Central Bank of Nigeria too is very much guilty of policy inconsistencies. Especially its “defend-the-naira-at-all-cost” strategy. So far, the CBN has reluctantly devalued the naira to N379/$1 from N306 earlier this year while still unwilling to unify Nigeria’s multiple exchange rates. It also allowed the rate at the Importer and Exporters (I&E) window to adjust to N386 in response to market developments.

However, are there any institutional changes to guarantee that when this crisis is over, the CBN won’t revert this policy?

Every economy runs basically

on two wheels; the trade wheel and the liquidity wheel. Prior to the outbreak of the novel coronavirus, COVID-19, in the fourth quarter of 2019, the global market was flooded with cheap capital due to the large liquidity injections by the central banks of the US, the UK and EU. Smart and proactive economies joined the race to attract these cheap sources of capital while Nigeria slacked, its policies weren’t perceived as favourable.

Now with the outbreak of COVID-19, not only has the pandemic depressed export, it has halted production and claimed lives in their thousands. It has also increased further liquidity glut in the global economy as governments across the world respond to the crisis by throwing money at it.

Here could be another opportunity for Nigeria to get its fair share of the glut, but her weak fundamentals make this at best a mirage.

Standard & Poor (S&P), a rating agency, downgraded Nigeria from stable to negative on the back of the country’s weak buffers. Likewise,

the International Monetary Fund (IMF) has announced that the Nigerian economy would witness a deeper contraction of 5.4 percent and not the 3.4 percent it projected in April 2020. It predicts that inflation is likely to increase while terms of trade and capital outflows will make our external position more vulnerable. Hence, the need to grow revenue.

Oil prices are still depressed.

While Nigeria borrowed recklessly when oil prices were stable, it doesn’t have such luxury today given its weak earnings, besides the proportion of its revenues spent on repaying and servicing debt has ballooned.

Nigeria must unlock value from its dead assets. The federal government owns stakes in companies, owns lands and other assets which are wasting away and can be unlocked to attract foreign capital.

These assets can be sold, securitised or leased.

Above all policy clarity and consistency are paramount to boost investors’ confidence.

Bashir Ibrahim Hassan

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Wednesday 30 September 2020

BUSINESS DAY

COMPANIES&MARKETS Nigeria insurers deliver returns to shareholders amid economic downturn BALA AUGIE

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ome insurance companies have recorded return on equity above industry average, which means they are efficient in the use of their owners’ resources in generating higher profit even amid a tough and unpredictable macroeconomic environment.

The current investment climate has been unfavourable to insurers as they are reeling from rising management expenses and premium growth that are failing to keep pace with loss cost. Despite these challenges, Business Day’s data shows that Cornerstone Insurance Plc and Mutual Benefit Assurance recorded return on average equity (ROE) of 33.15 percent and 32.30 percent as at December 2019, higher than the 12.78 percet industry average, according to Business Day calculations.

Others that outperform the benchmark are: AIICO Insurance, (28.28 percent0; NEM Insurance, (25.40 percent); Leadway Assurance Limited, (21.67 percent); Custodian and Allied, (13.94 percent); Regency Insurance Plc, (12.96 percent).

“ROE is one of the most important parameters to look at the quality of a business,”

said Abhishek Basumallick, Founder, Intelsense.

“A company that continues to have a strong ROE on a consistent basis means it can generate significantly high return on capital over long periods of time under different circumstances,” said Abhishek Basumallick.

Insurers in Africa’s largest economy have a weak valuation compared to their peer rivals in Sub Saharan Africa, as evidenced in deteriorating profit margin and spiralling combined

ratio. Nearly all of them have their stocks trade below N0.50k, as an abysmally poor dividend means investors will not be attracted to the investment.

The average price to book ratio of Nigerian insurance industry is 0.43x compared with South Africa (1.99x), Egypt (1.65x) and Kenya (0.64x), according to data gathered by Afrinvest Securities Limited.

“This indicates investor apathy towards the listed insurers, quite evident in their stock prices,” said analysts at Afrin-

vest Securities.

“Although this underpricing appears attractive from an investment standpoint, we believe the pricing is synonymous with the value-added by the insurers over time in terms of performance,” said the analysts.

Analysts at Afrinvest Securities placed buy ratings on the stocks of Cornerstone Insurance, citing superior operational efficiency compared to peers in the composite insurance business.

Experts are of the view that

the planned recapitalisation would unlock more of this growth as a consolidation by way of mergers and acquisition will result in cost reduction and elimination of wastages.

The National Insurance Commission (NAICOM), the body that regulates insurance in the country, has hiked the minimum capital for companies as it seeks to ensure that operators in the industry take on more risk and deliver higher returns to shareholders in the form of bumper dividend and

L-R: Sam Osunsoko, managing director/CEO, Cognitio Communications; Bola Shodipo, former special adviser to Lagos State governor on revenue and taxation; Emmanuel Umoga, winner of N1million; Priscilla Onuzulu, deputy director/coordinator, National Lottery Regulatory Commission, and Andrew HumberOsofisan, managing director, Humber International, at the Grand launch and Cheque presentation of TYLGAMES in

share appreciation.

It increased the minimum capital of Life Insurance Business to N8 billion from N2 billion; General Insurance Business to N10 billion from N3 billion; Composite Business to N18 billion from N5 billion, and Reinsurance to N20 billion from N10 billion.

The policyholder surplus or shareholders’ funds of the largest insurers increased by 15.95 percent to N322.79 billion as at December 2019 from N278.38 billion the previous year.

Leadway Assurance has shareholders’ funds of N53.67 billion; Custodian and Allied, (N44.75 billion); AIICO Insurance, (N26.15 billion); AXA Mansard, (N25.16 billion); Linkage, (N23.04 billion).

Others are: Guinea Insurance, (N2.27 billion); Consolidated Hallmark, (N6.65 billion); Law Union and Law, (N7.15 billion), and African Alliance has a negative shareholders’ fund as it has been recording recurring losses.

The coronavirus pandemic that elicited the government to impose a lockdown measures that paralyzed business activities across the country is expected to compound the woes of insurers who had been struggling with a myriad of inherent risks.

PayPorte marks 6th anniversary, Polo luxury unveils Cartier hosts top industry influencers luxury wristwatches IFEOMA OKEKE

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frica’s leading fashion & lifestyle store PayPorte Global Systems hosted its brand ambassadors Chef Chi and Chioma, influencers Uriel, Susan Pwajok, Ruby Presh, among others to a private dinner on Thursday, September 24 at Quid by Debrit, Lagos.

The event which was attended by the who’s who of the influencing industry took over top trends across social media, buzzing with live sessions and stories as the guests celebrated with the fashion store to mark its 6th anniversary.

In his sentimental remarks to the guests, Eyo Bassey, CEO of PayPorte Global Systems, thanked everyone for their immense support over the years, expressing his pride in the growth of the influencers and brand over the years.

Visibly elated, Bassey explained that the brand has continued to grow and maintain its status as a top lifestyle store with the support of the ambassadors and influencers who have evolved to become part of the large PayPorte

family.

“Everyone here means a lot to us as a family which is why we are hosting you on the eve of our anniversary to express our immense gratitude. Over the years, we have grown as a brand and so have you, and I am so proud of where we are today as a family,” Bassey said.

“Today, as part of our anniversary, we are celebrating growth, oneness and love for fashion. As your choice fashion store, PayPorte will continue to clothe Africa in body, mind and spirit,” he said.

The dinner also featured a surprise appearance by singer Oxlade who serenaded the guests alongside Alpha P. Other guests spotted at the event include CEO of MMMG Ubi Franklin, CEO of House of Lunettes Akin Olaoye, King of Stage Nelson Jack, Maliya, Quick Steph, Ella Wallflower, Diana Eneje, Frances Theodore, among others.

The uber-stylish influencers, who showed up wearing PayPorte, took turns at extolling the fashion store for its giant strides over the years.

“I really enjoyed our dinner last night, there were so many beautiful faces, so much

love everywhere. It was well organized, a nice choice of location and I loved the surprises – guest artists – and my rose,” Temi Abere said.

On her experience working with the brand, she said, “It has been a worthwhile experience working with PayPorte. Payporte has nice outfits for affordable prices – you get quality for your money and also a variety of styles, it’s a brand that embraces all body shapes and size.”

Plus-size influencer, Precious Mychaskia, praising the store said, “I had so much fun yesterday, with such inspiring bold and energetic women!

“Working with PayPorte has made my confidence ‘1000%’, the love for all sizes honestly makes people on the plus-size happier… style doesn’t have a size.”

As part of the brand’s anniversary celebrations, PayPorte Global Systems initiated an impressive sales promotion, offering all anniversary products at N2,500 from September 21 to September 27.

In addition, the fashion store has also announced that it will be enlisting 100 new influencers to join the PayPorte Influencer Network.

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DESMOND OKON

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olo Luxury, one of Nigeria’s frontline retailer of luxury watches has once again proven its commitment to satisfying customers’ crave for class and elegance with the new release of Cartier luxury wristwatches.

Boasting a network of some of the world’s most affluent brands and individuals, Polo’s legacy for ground-breaking innovation is reiterated through their exclusive partnership with French watch brand, Cartier.

A French jeweller founded by Louis-Francois in 1847, Cartier supplies luxurious treasures, mixing modern design with timeless flair.

The brand is recognised for its high-quality workmanship and royal heritage.

In a statement, it was learnt that Cartier was the supplier to the Royal Court of France during Napoleon III’s reign, and described by Edward VII as “the jeweller of kings, and the king of jewellers”.

With flagship locations in Paris, London, New York,

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Tokyo, and Shanghai, among others, Cartier has one of the most enviable claims in horology history—the purveyor of the world’s first men’s wristwatch, the Cartier Santos.

Today, Cartier has a strikingly beautiful catalogue of some of the most soughtafter timepieces in existence, including the Cartier Tank Solo, The Cartier Clé De Cartier, and the Pasha De Cartier.

Historically, the Pasha De Cartier is an iconic timepiece, originally designed for the Pasha of Marrakesh in 1933, and considered to be the first waterproof watch from Cartier. In 1985, the legendary watch designer Gérald Genta designed a version of the Cartier Pasha whose form is still celebrated.

The 2020 design pays homage to Cartier’s traditional watch-making style, combining the or iginal 1980’s model with a more defined silhouette, and several innovative mechanisms and enhancements.

Cartier’s patented QuickSwitch system brings an @Businessdayng

element of modernity to this timepiece, customers can customise between the steel, gold, and leather straps for a truly personal look.

Complete with a sapphire crystal lens, the Pasha De Cartier is available in stainless steel, 18K yellow gold, 18k pink gold, 18k white gold, and diamonds.

Commenting on the relationship between Polo Luxury and Cartier, Jennifer Obayuwana, the executive director of Polo Luxury said the partnership between Cartier and Polo Luxury was a testament to Polo’s unrivalled positioning as West Africa’s leading retailer for high-end goods.

“Since the beginning of our relationship 10 years ago, Polo Luxury has continued to prove itself to be the perfect ally for Cartier in this region, attracting opulent customers from across the world to shop the brand in our Nigeria based boutique stores,” Obayuwana.

Cartier’s refined catalogue of luxury timepieces and jewellery are available for purchase exclusively at Polo Luxury, Nigeria.

Wednesday 30 September 2020

BUSINESS DAY

AGRIBUSINESS

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Fish production receives boost as APPEALS supports farmers with technology Josephine Okojie

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igeria’s quest for self-sufficiency i n f i s h production has received a boost as Lagos Agro-Processing, Productivity Enhancement, and Livelihood Improvement Support (APPE AL S) – a World Bank-assisted project is supporting farmers in the state with the construction of cages using barrier boom to eliminate suffocation and fish kill in the water bodies.

Oluranti Sagoe-Ovievo, Lagos State project c o o r d i n a t o r, A P P E A L S made this known during a monitoring exercise of projects supported by APPEALS in Agbowa, Igbodu, and Epe areas of the state.

“There is water hyacinth in the water bodies and this brings about fish kill.

We demonstrated some technology and taught the farmers how to construct cages using a barrier boom,” Sagoe-Ovievo said.

“The boom will not allow the water hyacinths to have

Abisola Olusanya (6r), acting commissioner, Lagos Ministry of Agriculture; Oluranti Sagoe-Oviebo (m), Lagos State project coordinator, APPEALS project and other stakeholders at the wrap- up ceremony of the first joint implementation support monitoring exercise to APPEALS project beneficiaries sites.

access into the cages, thereby eliminating suffocation and fish kill in our water bodies,” she further said.

She noted that the water hyacinth is currently being harvested and converted to fertiliser that is used by rice and ugu farmers as organic fertlisers for the cultivation of their crops.

She said that the APPEALS project has supported two groups of 10 members with

No food security without constitutional backing – Ayoola Josephine Okojie

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bolagade Ayoola, a professor of Agricultural Economics and president, Food and Infrastructure Foundation (FIF), has appealed to the government to make food a fundamental right that is backed by the constitution.

Ayoola made this known in a memorandum addressed to Ovie Omo-Agege, deputy senate president/chairman - Senate Ad hoc Committee on the Review of 1999 Constitution, entitled: ‘The Need to Make the Right to Food a Fundamental Human Right in the Constitution of the Federal Republic of Nigeria.’

Based on the inherent advantages of the bill, the FIF founder urged the committee to be positively disposed to recommending the Right to Food Bill currently pending before the Senate (SB Bill 240).

The bill requires amending the constitution in chapter two (Directive Principles of State Policy, wherein not justiciable), and in chapter four (Fundamental Human rights, wherein justiciable).

Moving the food security provision from chapter two

to chapter four, the advocate said, citizens could better engage the government over failure to make food available and affordable by not providing requisites such as irrigation facilities, rural road networks, markets, and other critical infrastructures.

He says this would thereby influence authorities to create an enabling environment and provide security of the farm population as well as boosting productivity, noting that these responsibilities of the government will make food available in all parts of the country.

He said the President should be mandated to produce and review on yearly basis an implementation strategy as a schedule to the bill, and to deliver an annual Food Situation Address to the National Assembly in accountability for the huge re s ou rc e s ap p ro p r i ate d for the purpose, and in recognition of food security as the bedrock of national security.

Ay o o l a s a i d t h e b i l l is geared towards the improvement of the policy environment for food security and agribusiness in terms of responsibility, accountability, t r a n s p a re n c y , a n d d u e process on the part of the government. www.businessday.ng

cage culture and barrier boom in the area to enhance their productivity, noting that many Nigerians consumed unwholesome imported frozen Tilapia.

She said that with the support the project is providing, residents of the state would have access to fresh and wholesome Tilapia fish.

Sagoe-Ovievo noted that Lagos has the potential and

comparative advantage in fish production owing to the numerous water bodies in the state.

“We have the market for fresh Tilapia. Most people buy frozen Tilapia that is imported and these fishes are unwholesome because it has been preserved and kept in the cold-room for a very long time. We have the environment and the wherewithal to produce our

Tilapia,” she said.

Also, she hinted that the project is working with s c i e nt i s t s t o d e v e l o p a technology that will provide a substitute for maize in poultry feeds to support farmers.

Feeds constitute 70 percent of the total cost of poultry production and providing alternative will help drive down the cost of production and boost productivity, she said.

Aderemo Mosuru Adeniran a fish farmer and beneficiary of the initiative appreciated the Lagos state government and APPEALS for their support in providing them with technology to address some of the issues limiting their productivity.

“Apart from the barrier boom, the APPEALS project supported us with 10 cages, 400 bags of feeds and 15,000 all-male tilapias,” he said.

“They have helped us address the issue of water hyacinth which has been a major problem for us,” he added.

Similarly, Olaoluwa Falade, the president, God’s Own Commercial Poultry Cams Limited in Igbodu, Epe appreciated the Lagos state government and APPEALS project for their support.

“The APPEALS project supported us with 7,700 day-old chicks, 1078 bags of 250kg pelletised broiler starter feeds, 539 bags of 25kg pelletised broilers finisher feeds, medications and 11 pieces of 500-litre water tank.

This has helped in boosting our production,” Falade said.

Expert calls for increase in soybean consumption to tackle protein deficiency Josephine Okojie

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o ro ma d e F ra n c i s, d i r e c t o r- g e n e r a l , Premier Agribusiness Academy, and a renowned agricultural expert has called for the increase in soybean consumption in the country to tackle the high rate of protein deficiency.

Toromade made this known during the first Nigerian Soy E xcellence Centre (SEC ) advisory council meeting which was held recently in Lagos.

He explained that the country is challenged with high protein deficiency especially among under-five children, adolescent girls, and women of reproductive age which results in malnutrition and other health hazards such as stunted growth and underweight.

While referring to research conducted in the United States of America, Toromade pointed out that, an average Nigerian consumes only a kg of soybean yearly whereas in the United States, its 55kg per person yearly which according to him could explain the difference in life expectancy.

He further explained that the contribution of soybean to protein intake cannot be overstressed as protein consumption is currently inadequate in Nigeria as a result of low production, high cost of production, and importation.

“S o y b e a n s s h o u l d b e available, affordable, and accessible by the high and lowincome classes in the country especially to the vulnerable class who are mostly affected by protein deficiency and malnutrition,” he said.

“The reason why we have such a low rate of soybean production in Nigeria is the knowledge gap.

“If people are sensitised a n d p ro p e r l y t ra i n e d i n soybean production, they will know when to plant, what, how and this will result to improve productivity,” he explains said.

He says poor agronomy practice is also a major reason for low yield per hectare i n s o y b e a n p ro d u c t i o n , noting that the Nigerian Soy

Excellence Centre (SEC) has developed a curriculum to address the issue.

To ro m a d e n o t e d t h a t SEC through its strategic partnership with the Federal Ministry of Agriculture, US SOY, and the Nigerian Soybean Association (NSA) as well as other critical stakeholders across the soybean value chain is set to boost the productivity of the crop in the country.

“With high yield per hectare, farming will become attractive and profitable especially to the young,” he said.

He revealed that the SEC would be training over 500 interested persons between 2020 and 2021 with over 250 already showing interest.

While commenting on the

L-R: Eustace Iyayi, registrar/CEO, NIAS; Toromade Francis, director-general, PAA/SEC; Christy Onyegbule, asst. director, Federal Ministry of Agriculture, and Onallo Ankpa, directorgeneral, Poultry Association of Nigeria during the first Nigerian Soy Excellence Centre (SEC) advisory council meeting which held recently in Lagos.

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role of the advisory council which includes; Onallo Ankpa, director-general, PAN, Prof.

Eustace Iyayi, registrar/CEO, NIAS, and Rotimi Oloye, president, CAFFAN among other members, Toromade said the obligation of the council is providing guidance, advise and support in terms of advocacy as well as training needs of the soybean subsector.

“This is the first time the private and public sector in the soybean value chain are coming together at this level to chart a developmental course that will result in boosting soybean production,” he said.

While commending SEC, To l a Jo h n s o n , e xe c u t i ve dire ctor, Agb o ola Far ms noted the initiative will help to adequately maximize the soybean industry in Nigeria and sensitise Nigerians on the importance of soybean consumption.

She added that educating the various strata of the value chain such as farmers, processors, and consumers, will boost the productivity of the crop.

Also speaking, Professor Garba Sharubutu, executive secretary of the Agriculture Research Council of Nigeria, A RC N, p o i nt e d ou t t hat the focus of the Ministry of Agriculture aligns with the vision of SEC which is to partner with the private sector to boost the productivity of local crops and impact livelihood.

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Wednesday 30 September 2020

BUSINESS DAY

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New PMS, CNG, LPG-powered OMAA buses debuts in Nigeria …aligns with FG’s gradual shift to fuel alternative MIKE OCHONMA Associate Editor

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new chapter in Nigeria automotive history was opened recently when government officials, transport owners and the business community gathered in Abuja, the nation’s capital for the historic official launch of the OMAA range of H-Series mini-buses with the tagline ‘Built for You’ and designed to run either on petrol, compressed natural gas (CNG) or liquified petroluem gas (LPG).

This is coming at a time when the cost of doing business is high with the commercial transportation sector as one of the critical sectors in the economic and social integration value chain.

The OMAA bus can be used as an intra-city bus can be used as a school bus, as a shuttle, a panel and as well an ambulance.

For fuel system and power delivery, the model comes as a single or dual offering (dual fuel engine system), which implies that customers can have the bus sold to them as either premium motor spirit (PMS), compressed natural gas (CNG) or liquified petroleum gas (LPG). It comes in

manual transmission, while plans for automatic transmission version are in the pipeline.

In terms of safety and ruggedness, it has a drum brake disc technology and solid suspension systems comparable

to other competing brands in the local market.

Exterior-wise, there are central lock key systems, the tyres sits on alloy wheel or the conventional steel wheels.

These two choices are strongly casted taking into consideration the peculiar rough roads that we have in the country today.

For daylight or night visibility, OMAA boasts of LED lamp, the high mount brake light with the latest timeless design. Interior-wise, customers are at liberty to decide on

which seat choices to make, as it comes in three variants including fabrics or leather.

In terms of passengers comfort, OMAA is lithered with an all-round air-conditioning system both front and rear that are also adjustable from the rear in addition to the rear view mirror.

The features mentioned are in addition to other features in other vehicles like the automatic brake system (ABS), electronic brake distribution (EBD) system. The prospective customers have to buy any of

the OMAA bus with or without a DVD, the preferred size of the LCD or the reverse camera.

Customers are guaranteed of timely delivery time schedule to customers within a period of one to four month preorder notice. Every OMAA bus is price competitive fits every budget of intending customers and offered at a very reasonable discount either for basic models or customisation.

Speaking during event, Chinedu Oguegbu, founder of OMAA Global and the brain behind the new OMAA commercial bus said; ‘’the journey did not start today having been in the automotive industry for almost 20 years working with global original equipment manufacturers (OEMs) from France to Japan, Korea to China’’.

Describing transportation in the country as a big hassle moving from point A to B. He lamented that lack of efficient transport system constrains the economy, making productivity low, despite its role as the engine of economic growth.

Oguegbu expressed optimism that the OMAA automotive brand will give transporters positive returns on their investment as running on gas is cheaper than petrol and parts are readily available. This is the opportunity, the reason we are building OMAA. We

are working with technical partners across the globe.

Looking into the future, Oguegbu said that, ‘’Currently, OMAA is finalizing our assembly operations. This November, we will commence commercial deliveries of OMAA vehicles in large volumes.

Next, we will have a phased migration from SKD to CKD localizing components, upskilling staff and contributing to the burgeoning automotive ecosystem.

He expressed excitement that the model of vehicles have been simplified as much as possible, offering products that customers or end users can adapt to their unique needs.

Most vehicles on sale the in Nigeria, the company executive said were designed and built for other regions. Giving customers’ choice to order vehicles that meet their specific requirements would result in considerable cost savings as they don’t pay for unnecessary features.

He expressed optimism that there is a huge commercial and social opportunity that would definitely impact millions of lives adding that his team is open to collaboration, build partnerships, invest in the ecosystem to ensure that we build a better future for Africa.

PTONA calls for disbursement of FG’s N10bn COVID-19 palliative to members ...Frowns at rising kidnap, robbery cases on highways MIKE OCHONMA Associate Editor

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he governing council of Public Transport Owners of Nigeria Association (PTONA) made up of all executive members and chief executive officers of over 150 registered interstate and cross border transport operators in the country at its meeting held in Lagos is calling on the federal governement through the minister of state for transportation to use her good office to direct for quick disbursement of the fund so that the purpose of the palliative is accomplished.

Governing council of PTONA said the call has become neccessary due to long delay in disbursing the said N10 billion palliative approved by the federal government to benefiary transport owners affected by the ravaging global coronavirus pandemic, even as its members have been facing harsh operating conditions that are seriously threatening their businesses.

Recall that during the heat of coronavirus outbreak, interstate and cross border transport operators were directed by the federal government to suspend operations till further notice, during which PTONA said, its members encountered huge revenue loses.

During the six-hour brain-

A cross section of PTONA executive members and chief executives officer of the various transport companies after the just concluded meeting of PTONA Governing Council in Lagos recently

storming meeting, the governing council critically reviewed the challenges confronting members’ business operations. Council also evaluated exhaustively the negative impact of Covid-19 pandemic and armed robbery attacks and kidnappings on its business operations nationwide and noted the followings.

Worsening economic hardship caused by discriminatory policy in implementing the social distancing safety protocol of Covid-19 on interstate passengers buses across the nation by security agents including incessant armed robbery attacks and kidnapping for ransom on our buses and innocent passengers on the highways.

That during the lockdown spanning a period of 98 days, it was only its members that were on negative income as there was total ban on interstate movement across the country. www.businessday.ng

The depletion of its fleets of buses and the very high cost of maintaining existing fleet due to social distancing and safety protocols of Covid-19 on the buses were also highlighted and thoroughly evaluated.

Council also noted with pleasure and gratitude that the federal government has approved N10 billion palliatives to road transporters to cushion the effects of Covid-19 pandemic.

PTONA however frowned that, the fund is yet to be disbursed.

Governing council of PTONA having reviewed and discussed exhaustively the above issues also made a passionate appeal to the Presidential Task Force (PTF) on Covid-19 pandemic and the inspector general of police to come to their aid and to the aid of the other Nigerian road users who are daily suffering untold hardships on the nation’s major high ways in the following ways.

These includes to immediately stop the discriminatory policy in implementing the 50 percent seating capacity on PTONA members interstate buses nationwide since the measure was introduced till today.

Members reminded government that, it is only its branded interstate buses that have been following and observing the guidelines in their buses. Other unorganized interstate buses, including all the airlines, have since been loading full capacity without following the guidelines of social distancing. All the goverment ministries, depart-

ments and agencies are fully aware of Council regretted that in spite of the efforts of the security agencies to improve security in the country, the incidence of robbery attacks and kidnappings on the highways has actually escalated leading to the attacks on our members’ buses that have now reached a frightening dimension especially at Obajana junction in Kogi state.

Council also called for the removal of curfew on all interstate highway roads or scrap the nationwide curfew altogether.

It also raises concern on traffuc

hubs such as Ojota swarming with thousands of passengers as late as early hours of the night due to fratffic delays on all raods.

The PTF on Covid-19, PTONA governing council members noted is simply giving security agents more room to extort illegal money from commuters and transport operatrs.

The council meeting also called for 24 hours federal highway patrol police at places such as Obajana junction to tackle the menace, as well as some other hotspots in the country which PTONA members said it can provide the IGP with.

APAPA STANDARD GAUGE RAIL PICTURE UPDATE

This is the ongoing new Apapa train station under construction while the Standard Gauge Rail (SGR) track is yet to take shape. What can be seen here is only the asphalt.

Beside is the narrow gauge line

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@Businessdayng ???????

Wednesday 30 September 2020

BUSINESS DAY

TRANSPORTATION Motoring

RailBusiness

ModernTravel

17

Business Event

Roads

Bajaj rally covers 5594 kms, 27 cities, 18 Nigerian states in 41 days

L-R: Abdulrahman Sadiq, director diseases control, FCT Public Health and Human Services Secretariat; Samuel Reuben Musa, public relations unit, FCT Health and Human Services Secretariat; Aluola Monday, chairman, Red Cross FCT Branch; Muhammed Kawu, acting secretary, FCT Public Health and Human Services Secretariat; Josephine Okechukwu, director, public health, FCT Public Health and Human Services Secretariat, and Simeon Nwaubani, branch secretary, FCT Red Cross, during the presentation of Personal Protective Equipments (PPE) to the FCT Public Health Office by Nigerian Bottling Company (NBC) in conjunction with Red Cross for Coke Foundation in Abuja.

...runs faster, lasts longer, endures tough Nigerian roads.

MIKE OCHONMA

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or the first time ever, Nigeria experienced its own keke rally that kicked off on August 7 from the Stallion Auto Keke showroom located in Ijesha showroom Lagos.

The Stallion Bajaj Keke rally has now completed a tough terrain of 5594 kilometers through 27 cities covering18 states in the west, east and north central parts of the country in less than 41 days with a team of 5 experienced riders, Stallion officials and security agents. Collectively, the convoy covered over 26,000 kilometers without any product issues.

Managing director for the business, Manish Rohtagi stated that “The Keke Rally really boasts on how the new Baba Bajaj is tough, strong, reliable, and well equipped for the Nigerian roads. Having covered more than 5000 kilometers, the Kekes did not face any performance

or maintenance challenges, even as it kept to its brand promise of “Runs Faster, Lasts Longer” through every rider who was a part of this rally.”

Flagged off from Lagos, the rally covered Ogun, Oyo, Kwara, Kogi, Benue, Enugu, Ebonyi, Cross River, Akwa Ibom, Abia, Rivers, Anambra, Delta, Edo, Ondo, Ekiti and Osun states to prove its durability. It spreads the message of urging Nigerians to be responsible in maintaining hygiene to curb the spread of corona virus.

Cultural and historic sites in each state were visited highlighting and sharing the Nigerian culture of host communities. The journey to these sites brought forth the stories around it to encourage connecting the youth to their rich heritage.

The vision from this rally was not only to take up the challenge of proving how credible the product is but also engaging in the stories

of these riders that will go on to make the brand what it is.

Promoters of the rally say, the alliance of Stallion and Bajaj will continue to improve lives by going an extra mile providing rider-training facilities, scholarship programmes, mechanic empowerment programmes, ease in financing, ease of spare part availability and differentiated customer service through its existing footprints within the auto industry.

Bajaj Auto Limited is a world leader in the intra city vehicle space. Loved in 70 countries, the brand stands for integrity, dedication, resourcefulness, and determination to succeed and empower. It is a wellknown brand for its durability, speed and manuverability and pioneer brand of tricycles in Nigeria loved by millions. It’s a keke for the people engineered for a smooth journey and better livelihood, Stallion Keke Bajaj said.

Sijibomi Ogundele (l), managing director/chief executive officer, Sujimoto Construction Limited, with Adeyeye Enitan Ogunwusi, Ooni of Ife, during the Olojo festival in Ile Ife, Osun state

L-R: Adetokunbo Fabamwo, chief medical director, LASUTH; Ibironke Shodehinde, representative of the first lady of Lagos State, the Special Adviser to the governor on resilience-Lagos State; Funmilayo Arowogun, president, NECA’s Network of Entrepreneural Women (NNEW), and Olakitan Wellington, vice president, NNE, during the commissioning of a Creche in LASUTH By the NNEW, Alive and Thrive and Association of Resident Doctors (ARD).

L-R: Jerome Oyebanji, public affairs and communications manager, Lagos and West, N ‎ igerian Bottling Company Ltd; Nwamaka Onyemelukwe, public affairs and communications manager, Coca-Cola Nigeria Limited; Olusegun Ogboye, permanent secretary, ministry of health, Lagos State, and Segun Akande, brand training adviser, Nigeria Red Cross Society, Lagos State, at a handover ceremony of Personal Protective Equipment (PPE) donated by the International Federation of Red Cross and Red Crescent Societies through funding from The Coca-Cola Foundation, in Lagos.

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Wednesday 30 September 2020

BUSINESS DAY

insurance today

E-mail: insurancetoday@businessdayonline.com

Stakeholders at ‘Dive In Festival’ point way forward for women inclusion in insurance industry Modestus Anaesoronye

within the sector.

At a time when the world is changing at a faster rate, with newer challenges emerging, the corporate environment needs to explore all talents and resources by creating an environment for them to thrive irrespective of gender and experience To examine some of these challenges faced by young female professionals in the Nigerian Insurance sector, Dive In Festival hosted reputable leaders in the sector to the Dive In’ Nigeria Festival themed “Promoting Inclusion & Diversity in the Nigerian Insurance Industry for a Quantum Leap” to discuss new possibilities that will spur participants to break boundaries in risk management and insurance.

Speakers included Adetola Adegbayi, executive

director, General Insurance Business Division, Leadway Assurance Company Ltd, a Legal Practitioner with extensive experience in Legal Research, Corporate Legal Practice, Insurance and Financial Services; Nike Anani, Co-Founder African Family Firms, a firm dedicated to assisting secondgeneration family members (“NextGens”) in identifying and implementing new opportunities, shortening the journey from identification to impact.

Founder, The Funmi Omo Initiative and Former Managing Director in African Alliance Insurance Plc, Funmi Omo, (recognized as one of the top 100 women CEOs in Africa by Reset Global People); Corneille Karekezi, group MD/ CEO, African Re Group, and Ibitunde Balogun, executive

director Tangerine Life Insurance Limited. The event was moderated by financial broadcast journalist and business anchor at CNBC Africa, Esther Awoniyi.

At the event, Adetola Adegbayi when asked about her thoughts on revitalizing diversity and inclusion initiatives and drive engagement going forward said ; “We need to look at not just women but also men who are disadvantaged, physically challenged people when addressing diversity and inclusion. It doesn’t matter whether you are formally educated or not, as people what matters is how we make use of our abilities to deliver.” She ended her presentation by stressing on the need to celebrate the difference in togetherness and balancing equality with equity.

IEI-Anchor Pension Asset hits N109bn in 2019 Modestus Anaesoronye

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he Pension Asset Under Management (AUM) of IEI-Anchor Pension Managers Limited has grown to N109 billion in 2019 financial year, leaping by 18.6 per cent from N92.9 billion in 2018.

The Pension Fund Administrator (PFA) equally generated 7,965 Retirement Savings Account(RSA) Personal Identification Numbers(PINs) in 2019.Addressing shareholders at the 2019 Annual General Meeting held virtually, Senator Rufai Hanga, chairman of the Company said, he is optimistic that the coming year will usher in new vistas for the further growth of IEI-Anchor

Modestus Anaesoronye

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takeholders at the Dive In Festival in Nigeria 2020 have pointed the way forward on gender diversity highlighting its impact on global and local economic growth as it executed the second edition in Nigeria recently.

The canvassed for equal opportunities, equal pay, female empowerment, advocacy and commitment from leadership in firms to develop and nurture females as they rise to leadership position in key industries.

As a build-up to this event, the Dive In team conducted a survey to understand the issues female in the insurance sectors are facing, the possible limitations on their rise to leadership and how they are navigating these challenges. This survey showed that despite the ambition to attain a top-level in career; young female professionals in the Insurance sector are largely constrained by inadequate opportunities relative to gender bias, unequal pay and harassment.

The survey further highlighted that females are willing and ready to take up more challenging roles within the sector and have to resort to professional bodies for support and guidance in their careers. Some leading females in the industry also lend their voice to the younger female professionals in insurance & finance in a campaign titled “Letters to my younger self”. They shared lessons which would help the younger generation develop a mindset and character required for success

How digitalisation is changing the way insurance is delivered to consumers

Pension Managers Limited, adding that, the company is gearing towards leveraging on the exercise to increase its Asset Under Management(AUM) while exerting no lesser effort to maintain its existing clients.

“The industry ratings on our funds have also risen. Out of the 22 Pension Fund Administrators (PFAs) we were the 8th in ranking on RSA Fund I, 2nd in Fund II, 18th in Fund III and 16th in Fund IV, this was as at July 2020. This portends a continuous improvement for the company. I am by this appreciating our management team and urging them to maintain this momentum. We are also expanding our projections to increase our client base,” Hanga pointed out.

Meanwhile, reviewing www.businessday.ng

activities of the previous year Glory Etaduovie, managing director of the PFA said that, in the next four years, the company would have doubled its worth and value in terms of assets under management, size of revenue income, market relevance and acceptability, staff size, job security, efficiency and productivity as well as highly improved industry reputation.

Furthermore, he said: “Information Technology department holds a strategic place in the heart of most organisations today. It is no less so in the pension industry.

Our last year’s theme was ‘Inclusion and digitalization’. It underscored the recognition and importance given to it in our growth plan. Information technology department has

been enhanced, and is still undergoing transformation for more competitive services. It has been enhanced to the enable data recapture campaign activities and the strongly approaching transfer window.”

A good customers’ service experience, he stressed, is near impossible in modern business without an efficient ICT infrastructure in place, saying, ‘due to the dynamic nature of ICT world, there is still much room for improvement requiring much capital investment.’

On micro pension, he said, the concept remains a very strong business growth potential, although, would require patience, good entry strategies and needed business aggression with clear vision of the task ahead.

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he way insurance is delivered to consumers is changing fast since the advent of coronavirus pandemic, which has impacted business landscape and the economy.

These according to insurers are impacting about 50 per cent of insurance of its operations as companies have no option than to embrace technology.

Ebose Augustine, managing director/CEO, Anchor Insurance Company Limited who stated this during interaction with journalist expected that more businesses will be generated by the insurance industry through digital platforms within the next three years.

Augustine, who was represented by Ademola Ikuomola, executive director, Technical added that, “Nigerian youths prefer to do insurance businesses through the social media platforms than in person.

The youths don’t come out to buy insurance physically, they prefer buying through social media platform. The insurance industry is also leveraging on these platforms to drive sales. The impact of the pandemic has made us to regain our human capital, ICT and our processes.”

The pandemic, he stressed, has forced operators to reinvent its processes and customer experience as well as how to meet the expectations of the

public.

On reasons for the fall in insurance contribution to the nation’s Gross Domestic Product(GDP) by 29 per cent, he said: “Before the pandemic, insurance awareness in Nigeria has been very low compared to other advanced economy and that is why the Nigerian Insurers Association(NIA) is sensitising the public, creates awareness to deepen insurance penetration. The pandemic affected every business, so, we expect that insurance will also be affected.”

He assured that stakeholders are putting measures in place to deepen insurance penetration, sensitise the public and create awareness, adding that, “part of that initiative is what our regulator is doing, to upscale the compulsory insurances so that the members of the public that are not buying insurance will buy at all levels, this will impact positively on the GDP.” Speaking on surviving the post Covid-19 era, he noted that sound work ethics is imperative in staying relevant, saying, “ as a professional the CIIN has a mode of ethics for all professionals, so it is expected as a professional to show due diligence and professional skills in dispensing your service to the public.”

He said “The new normal makes it very imperative for the employees of different companies to work from home and still make the same threshold of services to customers.

Sovereign Trust Insurance se to mark 25 years of doing business in Nigeria Modestus Anaesoronye

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nderwriting firm, Sovereign Trust Insurance is holding its Annual General Meeting next month, marking its 25 years of doing business in Nigeria.

Segun Bankole who disclosed this in Lagos said the company, no doubt showed great resilience amidst the various challenges that characterized the operating environment in the year 2019, and the last 25 years. He said, there is every reason to be appreciative to all the shareholders and customers of the Organization who had shown great level of commitment and patronage to the Company since inception 25 years ago.

According to him, this year’s Annual General Meeting is a remarkable because the Company is set to celebrate her 25th anniversary in the Insurance Industry in Nigeria.

“Amidst the vicissitudes of 2019, the company ended the @Businessdayng

financial year under review with a great sense of optimism that the days ahead will continue to look brighter and better.”

Bankole said “the urge to continue to maintain an enduring and comprehensive growth strategy still forms the bedrock upon which the company is built. In the midst of the avalanche of challenges that characterized the industry within the year under review, the company in its consistent manner was able to record Gross Premium Written of N10.8billion representing a 3 percent increase over the N10.5billion recorded in 2018.

The net premium Income equally grew by 18 percent to N5.9billion over the sum of N5.0billion recorded in the corresponding year.

“In the same vein, the company recorded a Profit Before Tax of N819million as against N541million recorded in year 2018 representing over 52 percent increase. Profit after tax also stood at N503million, a 46 percent increase when compared with the sum of N344million recorded in 2018.

Wednesday 30 September 2020

BUSINESS DAY

BANKING

19

Share your experience at banks with us via: hope.ashike@businessdayonline.com

Negative growth would have been worse if not for CBN intervention, say analysts HOPE MOSES-ASHIKE

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and the corresponding period of 2019, respectively.

The development ended, the three-year trend of low, but positive real GDP growth recorded in Nigeria since the end of the 2016/17 recession. The contraction in Q2 2020 was largely driven by the poor performance of both the oil and non-oil sectors due to the lockdown to contain the spread of the pandemic in Q1 2020.

However, there has been huge injection of monetary and fiscal stimulus into the global economy to contend the impact of the Covid-19 pandemic.

In furtherance of its financial stability mandate, Nigeria’s Central Bank has been providing support for the affected households, businesses, regulated financial institutions and stakeholders in order to cushion the adverse economic impact of the pandemic.

The intervention of the CBN has been a major boost to the economy despite the minuscule size of the intervention funds relative to GDP, said Ayodeji.

“The intervention funds has supported growth in some of the critical sector and the negative growth would have been worse if not for the CBN intervention.

Some of the quoted companies have access these funds at single digit rate which has bolstered their profitability,” Ebo told BusinessDay. The financial system has remained resilient though with regulatory support. The Nigeria’s Central Bank’s staff reports presented at the July Monetary Policy Committee (MPC) showed www.businessday.ng

‘

The intervention funds has supported growth in some of the critical sector and the negative growth would have been worse if not for the CBN intervention

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he anticipated negative growth in economy exacerbated by the Covid-19 pandemic among other economic headwinds has been lowered

by Nigeria’s Central Bank’s policies and interventions.

The Monetary Policy Committee (MPC) after its two-day meeting last week in Abuja made a surprise cut to the Monetary Policy Rate (MPR), the second cut in less than six months and lowest since 2016.

The decision of the MPC further buttresses the Central Bank of Nigeria (CBN)’s determination to keep interest rates low to boost lending to the real sector.

According to Ayodeji Ebo, an investment professional based in Lagos, the reference interest rate has proven to be ineffective which has made the CBN apply the use of unorthodox and direct policies like the Loan to Deposit ratio, intervention loans, and the segmentation of the Treasury Bills market to boost lending.

Notably, this has led to a significant credit growth of N3.7 trillion or 24 percent from N15.6 trillion in May 2019 to N19.3 trillion as at the end of August 2020.

The CBN adopted a dovish stance to create more legroom for the economy to recover from negative knock-ons from the pandemic and lockdowns.

The outbreak of Covid-19 has had significant adverse consequences for both the global and the Nigerian economies.

It has led to unprecedented disruptions in global supply chains, sharp reduction in crude oil prices, turmoil in global stock and financial markets, massive cancellations in sporting, entertainment and business events, lockdown of large swaths of movements of persons in many countries, and intercontinental travel restrictions across critical air routes including but not limited to oil and gas, airlines, manufacturing, trade and consumer markets.

The country has recorded continued weakness in economic activities as indicated by the Manufacturing and non-Manufacturing Purchasing Manager’s Indices (PMIs), which remained below the 50-index point benchmark.

Nigeria’s real Gross Domestic Product (GDP) contracted by 6.10 per cent in the second quarter of 2020 compared with expansions of 1.87 and 2.12 per cent in the preceding quarter of 2020

marked increase in the number of loans restructured; as at July 20, 2020, 22 banks submitted requests to restructure 35,639 loans of businesses impacted by the pandemic, representing 41.92 per cent of the total industry loan portfolio.

Aishah Ahmad, deputy governor, financial systems stability directorate, noted that this has partly reflected in improved industry risk profile, as NonPerforming Loans ratio declined from 6.6 per cent in April 2020 to 6.4 per cent in June 2020. Net interest margin remains robust de-

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spite lower interest income, perhaps due to much lower industry interest expense, as market deposit rates continue to decline.

The various interventions by the CBN are aimed at to reflate the economy, improve aggregate supply and drive down inflation.

Recent interventions were largely in the areas of Manufacturing, agriculture, electricity and gas, solar power and housing constructions among others. MPC members expressed optimism that these initiatives will significantly ease the adverse impact of the COVID-19 pandemic and set the economy on a path of recovery.

Part of the CBN’s intervention funds include the N50 billion household and Small and Medium Enterprises (SME) facility, N100 billion healthcare and N1.0 trillion manufacturing and agricultural interventions alongside significant interventions in other growth enhancing sectors, with remarkable implementation success.

The CBN is also leading a N15 trillion Infrastructure Company (InfraCo) Project for building critical infrastructure.

The Apex bank recently introduced the Solar Connection Intervention Facility to complement the Federal government’s effort of providing affordable electricity to rural dwellers through the provision of long term low interest credit facilities to the Nigeria Electrification Project (NEP) pre-qualified home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in @Businessdayng

the country.

Furthermore, the CBN on September 15, 2020, announced the release of a term loan intervention fund to the tune of N200 billion to Family Home Fund Limited (FHFL) for financing the construction of social housing units for people on low income.

Interest rate for the three years tenor fund from the day of disbursement is put at 5% per annum (all inclusive).

Godwin Emefiele, governor of the CBN noted that So far, total disbursements from the Bank’s interventions in the wake of the COVID-19 pandemic amounted to N3.5 trillion including.

These include Real Sector Funds, (N216.87 billion); COVID-19 Targeted Credit Facility (TCF), (N73.69 billion); AGSMEIS, (N54.66 billion); Pharmaceutical and Health Care Support Fund, (N44.47 billion); and Creative Industry Financing Initiative (N2.93 billion). Under the Real Sector Funds, a total of 87 projects that included 53 Manufacturing, 21 Agriculture and 13 Services projects were funded. In the Health Care sector, 41 projects which included 16 pharmaceuticals and 25 hospital and health care services were funded. Under the Targeted Credit Facility, 120,074 applicants have received financial support for investment capital. The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) intervention has been extended to a total of 14,638 applicants, while 250 SME businesses, predominantly the youths, have benefited from the Creative Industry Financing Initiative. In addition to these initiatives, the CBN is set to contribute over N1.8 trillion of the total sum of N2.30 trillion needed for the Federal Government’s 1-year Economic Sustainability Plan (ESP), through its various financing interventions using the channels of Participating Financial Institutions (PFIs).

Ayodele Akinwunmi of FSDH Merchant Bank said last week that there are other overriding issues in the economy that are not monetary issues that need to be addressed and that the solutions to such problems are beyond what MPC can address.

Uche Uwaleke, Professor of capital market, Nasarawa State University Keffi, said, the CBN’s interventions in Agriculture, especially the Anchor Borrower Scheme, has helped in no small measure to grow the sector. It is time to expand and scale up the interventions to cover more products and States of the Federation.

20

Wednesday 30 September 2020

BUSINESS DAY

FINANCIAL INCLUSION

& INNOVATION

‘Despite impact of COVID-19, WorldRemit is committed to helping Nigerians abroad send money home’ In the run-up to the 60th anniversary of Nigerian Independence on October 1st, WorldRemit, a digital payments platform, is offering a helping hand to the approximately 215,000 Nigerians living and working in the UK. In this interview with BusinessDay’s Endurance Okafor, Gbenga Okejimi – WorldRemit Country manager for the Nigerian and Ghanaian markets shares insight on how the company is giving 2% discount and pay no WorldRemit fees on every transaction to Nigerians in the UK who will be sending money home. Excerpt: Tell us about WorldRemit, your role at the organization and some insights into your financial services expertise? orldRemit is a digital payments platform that helps customers send money from over 50 countries to 150+ receive countries. On the send side, the service is 100% digital meaning that customers can send money to friends and family 24/7. We have a wide range of options in the recipient countries, including bank deposits, cash collection, mobile airtime top-up and mobile money.

Our customer service is round the clock, supporting customers to send money abroad in a cost-effective, secure and convenient way and this distinguishes us from the ‘bricks and mortar’ traditional players.

At WorldRemit, I am the Country Manager for the Nigerian and Ghanaian markets – overseeing the operations of the company in these regions. Before my current role, I was leading remittances services at one of the largest financial institutions in Nigeria.

in countries including the United States, the United Kingdom, Australia and Canada, remittances play a significant role in Nigeria’s economy. The World Bank published in 2018, Nigeria received $26 billion in remittances, making it the largest recipient country in Africa. Collectively Nigerians send home £3.27 billion per year in remittances, which is more than any other nationality living in the UK. Nigeria remains one of our top corridors and it is important to offer a helping hand to Nigerians that are working to support their families back home.

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Give us some highlights of WorldRemit’s business in Nigeria.

WorldRemit is significantly expanding its service in Nigeria by introducing a new cash pick-up service at all branches of FCMB Bank, Fidelity Bank, Access Bank, Zenith Bank, FirstBank, Union Bank and Polaris Bank. Using the WorldRemit app or website, the Nigerian diaspora living in over 50 countries can send money quickly and securely to 3,000+ cash pick-up locations across the 36 Nigerian states.

We continue to build partnerships in Nigeria to offer Nigerian customers choice and convenience. As well as a cash pickup, customers can also send money to Nigeria via bank transfer, airtime top-up and mobile money. In Nigeria where nearly 40% of adults are unbanked and the informal economy accounts for 65% of the economy, cash still plays a vital role. Recent WorldRemit research shows that 200,000 children are in school due to money sent from loved ones living abroad. In the households that receive remittances, not only is more money spent on education, but children are also less likely to work and more likely to study.

Gbenga Okejimi

We recently heard you have launched a campaign to celebrate Nigeria @60, please give us an overview of what your plans?

To commemorate with Nigerians on its 60th anniversary, we have decided to run a giveback campaign which provides incentives for customers who use our services during this time. WorldRemit is offering a 2% discount and a no-fee incentive to new and existing customers on all transfers sent from the UK to Nigeria. Additionally, customers sending money to Nigeria will stand a chance to win iPhone 11’s, Amazon vouchers and Jumia vouchers for their receivers. We, therefore, encourage receivers to inform their senders to transfer funds using WorldRemit.

What are the terms and conditions of this campaign?

The campaign is targeted at senders in the UK sending money to Nigeria. Each week WorldRemit will select 30 lucky winners, you must be a minimum of 18 years old to enter.

The detailed terms and conditions can be found on our website.

What is the motive behind this Independence Day campaign for Nigerians?

With a diaspora of 15 million people living

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What has been your experience in the remittance industry over the past years?

As the remittance industry continues to evolve, we have witnessed new trends that suggest that we are moving towards a digital economy. Covid-19 has created a new normal, where the industry has been forced to transition from the ‘bricks and mortar’ traditional way of remitting to the digital service that we pioneered with 10 years ago.

The traditional service that requires senders to travel long distances to send funds to their loved ones, is now being replaced by digital solutions that are available in the comfort of our homes and offices especially in this period of a global pandemic. Social distancing measures and the need for a high level of hygiene is said to be creating a shift towards a cashless society.

With more innovative solutions around AI, cryptocurrencies etc, the outlook is bright. Furthermore, there have been several regulatory initiatives that have assisted in the growth of the market. Policies such as the removal of exclusivity clauses in agreements have broken the monopoly of the traditional players and encourage the growth of the industry.

How has WorldRemit impacted Nigerian consumers?

WorldRemit is committed to creating opportunities for our consumers. We offer various channels of payment to make it convenient for our customers to collect their funds.

These funds have helped to improve household income to pay tuition, medical bills, electricity bills, household purchases among others. We continue to support educational initiatives and through partnerships, create

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opportunities for financial inclusion across the country.

What are some of the new innovative solutions you have developed for consumers?

We have recently launched a new transfer tracker recipient app in the Nigerian market. The ‘WorldRemit Transfer Tracker App’ allows you to track your funds from your sender. It indicates the progress of the funds’ transfer journey up to the point of payment.

We invested in this App to showcase the importance of the receivers to WorldRemit.

Nigeria is the first country in Africa and one of 4 countries in the world where it is currently available. The App is available on Google Play and the App Store.

How has WorldRemit impacted the economy as a whole?

In 2018, the World Bank reported that remittances were becoming a source of external financing for developing countries and global remittances were estimated at USD 600billion.

In 2018, remittances to Nigeria was USD 24billion while receipts from crude oil sales, tax and customs collections was about USD 10.8billion. This shows that the greatest export of Nigeria is Human Capital.

With these large remittance flows, the government has been able to build its FX reserves and finance public spending and trade opportunities for individuals and corporates.

Remittances have also unlocked education opportunities for many disadvantaged Nigerians. So enabling the easy transfer of remittances to Nigeria through WorldRemit’s services is something that inherently contributes to the economy.

What makes WorldRemit the remittance partner of choice?

WorldRemit is dedicated to helping customers abroad connect with their friends and family in over 150 countries 24/7 in a cost-effective, secure and convenient way. Customers using WorldRemit can send money home digitally, with funds typically landing in the recipient’s bank account in a matter of minutes. Exchange rates are competitive, our transaction fees are low and fixed, and customers are kept updated through real-time notifications every step of the way.

@Businessdayng

Wednesday 30 September 2020

BUSINESS DAY

21

MARITIMEBUSINESS Shipping

Logistics

Maritime e-Commerce

Badagry Deep Seaport promoters make $500,000 commitment deposit to NPA - Usman amaka Anagor-Ewuzie

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adiza Bala-Usman, managing director of the Nigerian Ports Authority (NPA), said the promoters of the multi-billion dollars Badagry Deep Seaport Project, has finally made payment of $500,000 commitment deposit into an escrow account to signify their commitment towards the port project.

The project is being developed through a publicprivate partnership (PPP) overseen by the Federal Government, Federal Ministry of Transport, Federal Ministry of Trade and Investment and Lagos state government.

It is also being overseen by a private consortium of APM Terminals, Orlean Invest, Oando, Terminal Investment Limited (TIL) and Macquarie.

Giving an update into the project, Usman said the promoters made the payments into the escrow ac-

count a month ago, and the authority is now perfecting arrangement to conclude on the final business case of the port project.

“If you recall, the concerns that we had on the Badagry Seaport was the

fact that the transaction adviser, put in all government service into the Outline Business Case as the service that would be provided by the Port Concessionaire.

Meaning that towage services, and all manner of

APM Terminals Apapa boosts operational efficiency with 4G wireless network amaka Anagor-Ewuzie

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PM Terminals has rolled out its public 4G LTE (Long-Term Evolution) network at its facility in Apapa, the West Africa’s largest container terminal, to enhance operational efficiency and productivity.

4G LTE is a standardbased network that uses radio equipment to service the terminal’s applications and ensure that services can be tailored to process a very high volume of data messages with minimal delay.

The base station allows it to be independent of traffic peaks in the wider network.

According to the company, wireless connectivity supports APM Terminals’ global initiatives such as the standardisation of Terminal Operating Systems, reporting and support; Asset Digitalisation; and GPS based Position Detection Systems used for auto-locating containers in terminal yard.

Meanwhile, a secure virtual private network (VPN) tunnel is used as an encryp-

tion mechanism to segregate APM Terminals data from general carrier data to ensure compliance with the company’s global security requirements.

Also, the new 4G LTE connectivity solution, which has already been tested and rolled out at other APM Terminals locations, meets ground level coverage and performance requirements in the entire yard with three dedicated sectors for APM Terminals, and limited infrastructure deployment at terminal.

“In recent years, APM Terminals Apapa has embarked on massive digitisation of its operations and services.

This is in keeping with APM Terminals’ global transformation drive. Our customers can expect greater efficiency and higher productivity with the deployment of the 4G wireless network, as it will allow for better collaboration in our terminal operations,” said Klaus Laursen, country manager of APM Terminals Nigeria.

According to Laursen, the 4G network will also improve wireless coverage in the yard for roaming conwww.businessday.ng

tainer handling equipment (CHE), eliminate loss of critical Terminal Operating Systems updates, ensure real time tracking of container handling equipment and improve safety for terminal employees.

“It is an optimised, standardised, cost effective, and security compliant industrial wireless connectivity solution. The 4G LTE network is also scalable to meet future terminal requirements. Ultimately, customers will benefit from improved operations especially truck turnaround time, terminal efficiency and stability,” he said.

Recall that APM Terminals Apapa recently acquired new cranes as part of an investment of USD80 million for the year 20202021, bringing the total investment by the company in Apapa since 2006 to USD438 million. This is the highest investment by any private terminal operator in Nigeria.

The investment has resulted in significant improvements in productivity, with zero waiting time for vessel berthing and a doubling of container volume.

marine services that are originally the responsibilities of government through the Nigerian Ports Authority were now handed over to the proponents as parts of what they would do in managing the Ports,” Usman explained

in a recent interview with Thisday.

According to her, the NPA kicked against such Outline Business Case such that it was reviewed to include its comments, and ensure that those functions were removed from the Badagary Port Project.

“So, the NPA had to look very closely into the Outline Business Case to ensure that government is not shortchanged in the Badagry Deep Seaport project.

We are through with that, and we are going to go to the next step where the final business case would reflect all the comments of the NPA and all our duties have now be reclaimed as duties of the government,” she said.

Recall that the Badagry Port and Free Zone project, proposed to be constructed at Badagry, Lagos State, Nigeria, will be Africa’s biggest and most advanced seaport when it starts operations.

The new port is expected to have an annual through-

put capacity of 1.8 million Twenty-foot Equivalent Units (TEUs). The proposal for the project was announced in 2012. Feasibility studies have been completed and construction works yet to start. The project will be implemented in four phases, with the overall project cost estimated to range between $2bn and $3bn.

The proposed site is located 55km west of Apapa and the port of Lagos, along the 55km long Lagos-Badagry Expressway, that is being upgraded from a four-lane to a ten-lane expressway.

It is expected that the new port will primarily ease pressure on the existing port of Lagos, which handles approximately 85 percent of the country’s non-oil throughput. It will further alleviate the country’s ports, which are on the verge of exceeding their cargo handling capacities, and address the country’s annual container traffic, which is expected to grow to 10 million Twenty-foot Equivalent Units by 2030.

FG seeks tax holiday to stimulate Nigerian shipping industry amaka Anagor-Ewuzie

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e te r m i n e d to stimulate investment and boost activities in the maritime industry, amid the downturn induced by the outbreak of COVID-19, the Federal Ministry of Transportation is seeking tax incentive packages for the sector.

Bashir Jamoh, director general of the Nigerian Maritime Administration and Safety Agency (NIMASA), who disclosed this, told the Minister of Finance, Zainab Ahmed in Abuja that Rotimi Chibuike Amaechi, Minister of Transportation is committed to ensuring the growth of maritime business in Nigeria.

He said many governments around the globe had introduced massive tax reduction or elimination to spur activities in key sectors and revive their economies during the coronavirus pandemic, according to a statement

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by Phillip Kyanet, head of Communications of NIMASA. “The maritime sector is critical in the growth and development of transportation and, by extension, international trade in the country. Thus, the need for Federal Governmentoriented programmes and stimulus packages to deliver a response those catalyses a sustainable economic development cannot be overemphasised,” Jamoh stated.

He said the proposed incentives included zero import duty for brand new vessels imported by Nigerians or Nigerian shipping companies for use in foreign or domestic trade; 0.5 percent only import duty for vessels aged between one and five years intended for use in foreign or domestic trade; and one percent import duty for vessels aged between five and eight years intended for use in foreign or domestic trade.

“There was also a proposal for zero import duty @Businessdayng

for parts or components i m p o r t e d b y Ni g e r i a n shipyards for local ship building, which will be for an initial period of four years after which it can be reviewed by government. All these are expected to give the sector the vibrancy it needs for growth,” he said.

The NIMASA boss further said that the incentives were being proposed because of the importance of the Nigerian maritime sector to the entire subSaharan African region.

He emphasised that Nigeria accounted for more than 65 percent of the entire shipping trade of the sub-African continent.

It is worthy of note that the maritime sector is a crucial energiser of economic growth and development, as it facilitates trade between countries.

The Nigerian economy has witnessed substantial growth in the last two decades owing to reforms that boosted private investment in the maritime industry.

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Wednesday 30 September 2020

BUSINESS DAY

CEOINTERVIEW Interview with Private Sector Leaders

‘Mastercard have reached over 1.5m merchants Adoption of digital payment technology is on the rise across the African continent and technology providers like Mastercard are at the centre of it. EBEHIJIE MOMOH, Senior Vice President, Mastercard West Africa speaks to BusinessDay’s FRANK ELEANYA in this interview, on the strides the company has made in pushing payment technology across the continent. She also speaks about plans for more collaboration with industry players in Nigeria and other markets in other to provide access to financial services to millions of unbanked people on the continent.

M

astercard recently sponsored a report by The Economist Research Unit on the state of the fintech sector in Nigeria. What informed this sponsorship?

Over the last few years, fintechs have drastically disrupted the financial services sector, contr ibuting to the rapid digital transformation of products and services that are making lives more convenient, simpler and rewarding.

Mastercard has long recognized the significant value fintechs add to both consumers and businesses. We have been actively engaging with them to strengthen the digital payments landscape and bring together an ecosystem o f ke y p laye rs at d i f f e re nt touchpoints. But other key stakeholders also play a critical role, such as telcos, e-tailers, and banks. And when we bring them all together, we can empower millions of people across Nigeria by delivering innovative digital solutions that have a far-reaching impact, and unlock the true potential of inclusive growth.

Mastercard’s partnership with the Economist Intelligence Unit is underpinned by this vision, as we continue to build the domestic payment landscape in Nigeria. Through collaboration, and connecting par tners to each other through digital solutions and technology, we can make a real difference and completely transform people’s lives for the better.

One of the questions raised at the report launch was whether fintechs have truly moved the needle on financial inclu-

sion. Some experts believe that it is easing financial transactions only for those already in the formal financial system. What is your take on this?

Fintechs have made huge inroads in enabling financial inclusion all over the globe, particularly in Africa.

The World Bank found that financial inclusion across the continent almost doubled from 23 percent to 43 percent between 2011 and 2017. Fintechs have an important part to play in contributing to the adoption of digital technologies. In rural communities, this has brought people and businesses into the formal economy, creating more opportunities, and improving livelihoods.

Mobile Money in particular has accelerated financial inclusion and transformed the payments landscape. According to GSMA, Sub-Saharan Africa has more mobile money accounts than anywhere else in the world, with approximately 396 million at the end of 2018, or 46 percent of all customers.

At Mastercard, not only have we have witnessed this remarkable growth first hand, but we have also played a proactive role in driving the adoption of mobile money to unlock value for millions of consumers and businesses. Last year, for example, we announced a digital partnership with Airtel Africa, enabling access for over 100 million mobile phone users to virtual card numbers and QR payments in 13 markets across the Middle East and Africa.

Given the crucial role that fintechs play in driving financial inclusion, what is Mastercard doing to support fintech growth in Nigeria?

Globally, we launched Master-

card Accelerate, an initiative that simplifies the way Mastercard works with fintechs, giving them access to everything they need to grow quickly. Offering a simple, single entry-point to our company’s wide portfolio of specialized programs, Mastercard Accelerate gives start-ups and emerging brands support and assistance for every stage of their growth and transformation, from market entry to global expansion.

Accelerate comprises a range of award-winning programs that www.businessday.ng

have helped participants all over the world, including Nigeria, by offering access and benefits from Mastercard’s ecosystem, customers and innovations.

One of our key programs in Nigeria is Mastercard Engage – an initiative launched last year in Lagos and Nairobi that connects fintechs to thousands of Mastercard technology partners, making it quick and easier for them to work together. Mastercard continuously selects dynamic entrepreneurs to join its awardwinning startup engagement

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program Start Path, with the most recent African fintech to join being Hello Tractor, which allows farmers to access affordable tractor services, plant on time, and increase yields.

Nigeria has defined a target of 95 percent financial inclusion rate by 2024. However, a 2018 data by EFInA put Nigeria’s financial inclusion rate at 63.2 percent, meaning that as much 36.8 percent or about 40 million adults still lack access. Is this target achievable and what can be done to fast track the @Businessdayng

Wednesday 30 September 2020

BUSINESS DAY

23

EBEHIJIE MOMOH

Senior Vice President, Mastercard West Africa

s in Africa, ME with QR payments technology’ achievement of this target?

There’s no doubt that this is an ambitious target, but I firmly believe that it can be achieved. The growth of digital technology and the proliferation of mobile devices have presented people in Nigeria with unprecedented opportunities; from innovative, affordable solutions that help them meet their basic needs, to greater access to capital that can scale businesses and increase prosperity. A collective approach that harnesses the power of partnerships is key to achieving this goal and reach millions of people that are still locked out of mainstream economies.

This collaboration is at the core of our vision to create a digital economy in Africa that works for everyone, everywhere. Everyone has a role to play, from the smallest businesses to the biggest corporations, governments to NGOs, traditional banks to fintechs, from the older generations to the youth. The key to gathering pace is to continue digitization and expanding acceptance to support use. To do this, we must understand user needs and behavior through research, inmarket assessment, and cash journey mapping.

Financial education is also very important, along with employing authentication technologies that respect user privacy. We must co-create with governments and enable innovation through close engagement with regulators, and run pilots to ensure commercial viability, while remaining focused on achieving scale.

Mastercard continues to be the single technology provider of choice that connects telcos, digital e-tailers and fintechs to their consumers by providing technology solutions, platforms and propositions that enable a superior digital experience and drive greater inclusion for people across Nigeria and the wider continent.

Mastercard’s white paper indicates that close to 95 percent of consumer payment transactions in Nigeria are still done by cash; how can governments overcome the heavy reliance on cash and ensure increased adoption of digital financial technologies?

Digitalization is our ultimate tool for building a world beyond cash, while technology and innovation are key enablers for helping governments to overcome the burden of cash. By ingraining digital processes in key sectors, we will encourage everyone to participate.

To make digital financial services

appealing to the excluded, our solutions need to mimic cash in their ease of use, while also being readily accessible, secure, and used everywhere. In other words – we need ubiquity, interoperability and scale.

We are doing this by building solutions that are domestically relevant and drive greater inclusion so everyone can benefit from a thriving domestic ecosystem beyond cash. An example of this is Jaza Duka, which connects micro-merchants to micro-credit opportunities. In the Middle East and Africa alone, we’ve already reached over 100 million consumers and 1.5 million merchants with our QR payments technology.

In our white paper “Cashing Out: Economic Growth through Payment Digitization”, Mastercard’s Global Cash Reduction Framework breaks down cash’s root causes into three components: Instrumental, Infrastructural, and Institutional. This is ultimately how we can address the heavy reliance on cash in favor of digital finance to grow financial inclusion – and Mastercard has made a global commitment to bring 1 billion people and 50 million small businesses into the digital economy by 2025.

Cash can only be displaced to an appropriate degree if there is an established acceptance infrastructure that is sufficiently trusted and offers compelling electronic payment value propositions for consumers and businesses. Governments, of course, will be critical in helping economies overcome their heavy reliance on cash. They have a strategic role to play in policy formation and creating the right enabling environment and business climate for digital payments to flourish.

Many experts say that there is no business case for implementing financial inclusion initiatives for the last mile, what is your take on this and what can be done to bring vulnerable populations into the formal financial system?

Nigeria’s greatest opportunity lies in its ability to develop inclusively. Success is lifting people out of poverty and building a more prosperous middle class that www.businessday.ng

experiences, contactless transactions, and digital payments amidst social distancing recommendations.

This is also necessitating a renewed drive for the inclusion of the unbanked who aren’t digitally connected.

Furthermore, SMEs must go digital to ensure consistent revenue streams while facing cash flow challenges and increased cybersecurity risk. With travel restrictions in place, there is also an increased need to move remittances to digital banking channels. Mastercard remains committed to helping our clients weather this crisis, prepare themselves for a strong recovery, and sustain them post-pandemic.

benefits everyone – people, governments, and businesses alike.

The pandemic has brought stark contrast to the reality of the digital divide. The fight against it has made it apparent how interconnected our world is. Our well-being is intertwined with that of others. This crisis has underscored just how important it is for individuals and small businesses to be connected to the digital economy.

As a trusted partner that has developed its secure, resilient, and reliable network over many years, Mastercard is in a unique position to lead a response that offers value to consumers, businesses, merchants, financial institutions, and governments. In fact, our commitment to our customers, partners and employees, has never been stronger.

We are helping businesses and merchants to prepare for stabilization, normalization and eventual growth by enabling commerce. We are doing this in so many different way – from partnering with Omaness to offer women a sustainable income as skinfood merchants, to growing fintech companies like Hello Tractor, which is positively changing the landscape for farmers. https://www.facebook.com/businessdayng

Which of the payment channels, USSD, and mobile money do you see as a more viable option for driving pervasive financial inclusion?

I would say that the focus shouldn’t be on anyone channel, but on making it easier to accept electronic payments across the board, along with greater access to other opportunities, including credit.

Bridging the digital divide is essential to enabling financial inclusion. For all countries and communities to benefit from future growth and opportunities, we must ensure everyone is included through easier access to digital financial services.

What is the impact of the pandemic and lockdown on card payment in Nigeria?

COVID-19 is challenging the way we live, work, and interact with one another. This global crisis has exposed how ‘illiquid’ cash is and the power of digital payments in continuing to enable retail and commercial transactions.

Trends that are impacting payments ecosystem players include the surge in touchless @Businessdayng

What is Mastercard doing in making the payment infrastructure in Nigeria more efficient and reliable?

Nigeria is rapidly transforming and is well-positioned for a journey of significant growth and opportunity. To advance digital financial inclusion, Mastercard is actively engaged to build the country’s domestic payment landscape, connecting key players through digital solutions, while extending acceptance infrastructure.

Our technology enables our digital partners to take control of their consumers’ digital commerce needs, interactions, and experiences. By focusing on the provision of multi-use, omnichannel digital payment solutions, Mastercard is enabling its partners to improve their operational efficiency, diversify their revenues, and transition seamlessly into digital commerce.

We strongly believe that digitization has the greatest potential to overcome infrastructure barriers to accelerate financial inclusion and drive economic growth across multiple sectors of the economy. This will help formalize the informal economy, and boost business growth and productivity.

Our objective to harness technology to realize the true potential of inclusive growth may seem an impossible task in a continent where millions of people are locked out of mainstream economies. It is not. Through thoughtful innovation, we are confident that we can make it a reality.

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Wednesday 30 September 2020

BUSINESS DAY

INTERVIEW

‘We will be riding on a new platform to success at HealthPlus’ The Board of HealthPlus recently announced some changes to position the company for advanced stages of growth.

In this chat with CHIDI OKORO, the new Chief Transformation Officer, he speaks on his vision for the Company, and the strategic steps to reposition it amidst emerging opportunities in the healthcare sector.

Y

ou have been around in the health sector for a while, how would you describe investments in the sector in Nigeria since the turn of the millennium?

Access to quality and affordable healthcare is a fundamental right of citizens and a critical part of any human capital development process. You cannot have a happy and productive workforce contributing effectively to national development if you don’t have a healthy workforce. The COVID-19 pandemic has highlighted some of the critical challenges in the system today and stimulated a new focus towards addressing them. To do this, much more investment is required.

Over the last few years, we have started to see investments into the sector and Alta Semper’s investment in Healthplus Nigeria was one of the first major moves in this regard. But we must understand that it was just the first phase of a journey.

For HealthPlus and the wider pharmaceutical and healthcare sectors in Africa, much more investment is required to reach the levels required. We do hope many other investors are looking at the health sector in Nigeria and we need to give them every encouragement.

Where do you think the Nigerian health care system is heading—and what needs to be done?

Nigeria’s health sector is still nascent but opportunities are evident. With a low healthcare professional to patient ratio, access to quality medicare by the majority of Nigerians is still restricted. For instance, in the Pharma sector, there are just about five thousand registered retail outlets and to match global standards we need at least ten times more. HealthPlus Nigeria has championed the expansion of modern retail outlets that deliver quality medicines and solid pharmacy

customers happy to do business with us. These are some of the changes that we hope to achieve.

How do you hope to earn the trust of the members of staff and wider stakeholders?

The ability of our staff to deliver on our service promise is essential to our success. We are very proud of the team that is in place. We have already briefed them on the situation and will be actively reaching out to let them know our plans and prepare them for the exciting journey ahead. We are doing the same with our suppliers, banks, regulators and ultimately, most importantly, our customers.

Where there are relationships that need repair, they will be our most urgent priority.

Chidi Okoro

care. However, investments from healthcare-focused funds like Alta Semper is needed to unlock opportunity and reach the scale and efficiency that is required. Technology in the form of digital health is one of the ways we can enhance access. Our regulators, the Pharmacists Council of Nigeria, I am sure will be looking at this.

The COVID-19 pandemic presented a major health challenge globally. What is your assessment of Nigeria’s response and your projection regarding flattening the curve in the country?

Nigeria’s response to COVID-19 has been very good. Steady collaboration across federal and state governments led to low infection rates. Sadly, lives were lost albeit much smaller www.businessday.ng

number than in other climes.

We have seen declining infection rates but vigilance is still needed to continue to keep the situation under check.

You are on a new exciting mission at HealthPlus, how do you intend to achieve it?

We have very exciting plans for the business, but if I were to disclose them to you today, I would be giving the game away!

Suffice to say that the combination of new capital, acceleration in demand for pharmaceutical products across the continent and rapid changes in the way customers are served provides a really exciting basis for growth.

How do you see the company changing in the next two years?

I see the company changing

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for the better in terms of its operations and profitability, and its relationships with key stakeholders. I hope to use my experience in successfully leading major corporate transformations to reposition the company for even greater accomplishments. HealthPlus remains an adored brand among Nigerians because the company has continuously maintained an enviable standard and is Nigeria’s largest in the sector. Going forward, we want to consolidate by keeping our stakeholders happy from the common man on the streets who buys our products to our suppliers, and our workforce.

Some of these relationships need a little work to repair. We aim to create an environment that makes talented people want to work for us, suppliers keen to partner with us and @Businessdayng

How long do you think this transformation process would take?

The strategy is both a short term and a long term one. In the short term, we want to ensure that the business is running as optimally as possible and any issues are quickly resolved. In the long run, we want to consolidate and drive an expansion that would complement the legacy built over the years.

What are the possible challenges you are mindful of in this new role?

Even while facing the challenges in the business today, I am focused on the opportunities to optimize a great brand.

We will be riding on a new platform of success at HealthPlus. I hope to imbibe a core set of principles that I garnered through continuous study and application in handling similar roles over the years, and I am always open to new approaches that would complement our collective goals.

Will there be staff restructuring or any form of costcutting in the immediate?

We have no plans to do so as of today.

Wednesday 30 September 2020

BUSINESS DAY

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@Businessdayng

25

26 BUSINESS DAY

Wednesday 30 September 2020

NEWS

MTN intensifies fight against COVID-19 with WearItForMe campaign BUNMI BAILEY

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tatistics from international health organisations have shown that over 30 million people across the world have so far contracted Covid-19 since its outbreak in China in November 2019. Research further revealed that while about 962,000 persons have died from Covid19-related complications, close to 21.3 million people have recovered from the virus as at September 21, 2020.

Nigeria recorded its index case of the virus in Lagos on February 28, 2020 and there has been gradual spread of the virus across the country, resulting in 57,437 confirmed cases with Lagos State recording 18,982 cases as at September 21, 2020.

To salvage the situation, the Nigerian government imposed series of mandatory restrictions and measures to reduce the rate of community transmission of the virus.

This was accompanied with gross socio-economic complications that stunted the growth of the nation’s Gross Domestic Product (GDP). The most recent macro-economic report by the National Bureau

of Statistics shows that the country’s national income dipped by 6.10 percent in the second quarter (Q2) of 2020.

The minister of finance, budget and national planning, Zainab Ahmed, during a press briefing after the first virtual meeting of the National Economic Council, had disclosed that the country’s economic growth could contract by almost 8.94 percent at the most, hence the NBS report did not come as a surprise.

Meanwhile, financial reports indicate that concerned individuals and organisations have donated N25.8 billion to assist the government in the fight against the outbreak in the country. This is perhaps owing to the obvious socioeconomic implications of the pandemic if left unaddressed.

Announcing its first set of investments through the Y’ello Hope Initiative, leading ICT firm MTN Nigeria embarked on interventions targeted at the government, health agencies and vulnerable Nigerians.

In the second phase of the Y’ello Hope initiative, the company has embarked on a social awareness campaign, #WearItForMe, urging Nigerians to continue wearing facemasks wherever they go. This

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is a timely social campaign as recent events indicate that Nigerians are beginning to ignore the importance of wearing a facemask as confirmed Covid-19 cases seem to be reducing nationwide.

In an interview session with Jimi Disu on the “Daily Digest” programme on Nigeria Info FM, Lagos, Chief Sales and Distribution Officer, MTN Nigeria, Adekunle Adebiyi, stated that the MTN #WearItForMe campaign is an offshoot of the MTN #YelloHope initiative which was created in response to the pandemic.

He further revealed the core essence of the initiative and the financial contributions of the telecommunications giant during the peak of the virus outbreak in the country.

“When the pandemic started, a lot of people really needed help. So, the first thing was, how do we buy Personal Protective Equipment (PPEs)?

How do we get money to build isolation and quarantine centres? These were some of the challenges that we were facing in Nigeria. We could not leave that to the government alone.

At the Federal Government and state government layers, MTN provided support,” Adebiyi said.

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@Businessdayng

Wednesday 30 September 2020

BUSINESS DAY

27

news

Buhari seeks Reps’ passage of PIB, approval Group calls for synergy to protect human rights, of N148.141bn road reimbursement to 5 states investors’ interest in extractive industry James Kwen, Abuja

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resident Muhammadu Buhari Tuesday asked the House of Representatives to consider and pass into law, the Petroleum Industrial Bill (2020).

Buhari made the request in a letter to the house titled “Transmission of the Petroleum Industry Bill for consideration and passage into law” which was read by the Speaker, Femi Gbajabiamila at the commencement of plenary after annual recess of the legislature.

According to the President, in the letter, “Pursuant to Section 58 of Constitution of the Federal Republic of Nigeria 1999 as amended, I formally request the consideration and passage into law by the House of Representatives, the Petroleum Industry Bill 2020.

“In particular, the House

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All former documents remain valid.

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of Representatives may wish to note that this bill combines in a single tone, aspects of significant reforms to the laws governing the Nigerian Petroleum Industry, that were previously set out in two (2) distinct draft legislation, namely the Petroleum Industry Bill 2020 and the Petroleum Industry Fiscal Bill, 2020.

“I trust that the House of Representatives will in their usual expeditious manner favourably consider the passage of this bill into law”.

In another letter, President Buhari requested the approval of the house for the reimbursement of N148.141 billion to Bayelsa, Cross River, Ondo, Osun and Rivers State governments for federal road projects executed by the states.

According to the letter, out of N148.141 billion, Bayelsa is to be reimbursed N38.404 billion; Cross River, N18.394 billion; Ondo, N 7.822 billion; Osun, N4.567 billion and Rivers, N78.953 billion.

The letter stated that: “The Federal Executive Council (FEC) at the meeting of June 3, 2020 approved the reimbursement of N148,141,969,161.24 through the issuance of promissory

notes to the Bayelsa, Cross River, Ondo, Osun and Rivers State governments for federal road projects executed by the states.

“The approval by FEC was subsequent to the recommendation of an inter-ministerial committee which reviewed the requests for the reimbursement made by the state governments for the projects.

The committee reviewed the documents submitted and carried out physical inspection and verification of the projects in the respective states before making its recommendation to FEC. “In the view of the foregoing, I wish to request the house to kindly approve t h ro u g h i t s re s o l u t i o n , the request of reimbursement of the total sum of N148,141,969,161.24, the issuance of promissory notes to the five aforementioned states governments for the federal roads projects.

“The minister of finance, budget and national planning shall provide any information that may be required

by National Assembly in its consideration of this request,” the President stated in the letter.

Innocent Odoh, Abuja

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igeria has been urged to be a signatory to the Voluntary Principles Initiative (VPI) as membership of the VPI would demonstrate greater commitment of government to the promotion and protection of human rights and create a more secure environment for potential investors in the extractive sector.

That was part of the recommendations by the Nigerian Working Group (NWG) on Voluntary Principles on Security and Human Rights at a one-day multi-stakeholder hybrid workshop and dialogue on ‘promoting security and human rights in Nigeria’s extractive sector through multi-stakeholder initiatives’.

The event was organised in Abuja recently for government ministries and agencies, diplomatic community, extractive companies, public security agencies and civil society organisations.

Speaking on ‘the jour-

ney so far on the Voluntary Principles on Security and Human Rights in Nigeria’, Joel Bisina, co-chair, Nigeria Working Group on the Voluntary Principles on Security and Human Rights, observed that although it was the responsibility of government to promote and protect the wellbeing of citizens, business organisations as responsible entities were also obliged to respect human rights and complement government’s efforts by way of service to humanity.

Bisina, who is also the executive director, LITEAfrica, said part of the reasons for the workshop was to see “how we can use the VPs as a tool to proffer mutually acceptable solutions to the security and human rights challenges in Nigeria extractive sector.”

In a communiqué issued at the end of the workshop, jointly organised by the Leadership Initiative for Transformation and Empowerment (LITE-Africa) and the Nigeria Working

Group (NWG) on the Voluntary Principles on Security and Human Rights, participants noted among other things that “insecurity and human rights violation have serious implications on the extractive sector and the Nigerian economy.”

According to them, the seeming weak regulation and crude methods of mining employed by artisanal miners have serious health implication and human rights abuse, particularly the right of the child.

“The rising insecurity in form of armed violence and banditry in the North-East and North-West regions of Nigeria has greatly hampered mining operations in those regions.”

The communiqué also noted that the inherent degrading effect of extractive business had multiple implications for human rights and security, and that there was increasing inter-cultural conflict over ownership right of extractive sites and rent by local communities.

CHANGE OF NAME

I, formerly known and addressed as Taiwo Rukayat Asake now wish to be known and addressed as Nasiru Rukayat Asake. All former documents remain valid. Zenith Bank and general Public please take note.

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I, formerly known and addressed as Hyacinth Onyekachi Elendu now wish to be known and addressed as Alexander Daniel. All former documents remain valid. General Public please take note.

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I, formerly known and addressed as Miss Desoye Abosede Abigeal now wish to be known and addressed as Mrs. Odunola Abosede Abigeal. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Salami Folasade Halimot now wish to be known and addressed as Mrs. Malomo Folasade Halimot. All former documents remain valid. General Public please take note.

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I, formerly known and addressed as Hassan Bashiru Ikpemhi now wish to be known and addressed as Hassan Bashiru. All former documents remain valid. General Public please take note. www.businessday.ng

L-R: Oluwabankole Falade, director, regulatory and government affairs, IHS Nigeria; Mohamad Darwish, chief executive officer, IHS Nigeria, and Chikwe Ihekweazu, director-general, Nigeria Centre for Disease Control (NCDC) at the official handover of over 100,000 COVID-19 test kits to NCDC donated by IHS Nigeria via UNICEF Nigeria in Abuja yesterday.

Pressure mounts on A/Ibom to set up oil producing area devt commission …as stakeholders accuse N/Delta governors of misusing derivation funds ANIEFIOK UDONQUAK, Uyo

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ressure is mounting on Akwa Ibom State government to set up a commission to handle the special development needs of the oil producing areas of the state.

This followed the concern over the utilisation of the 13 percent derivation fund meant to develop the oil and gas producing areas which many felt have not had a fair share of development.

Among those who have expressed worry over the ab-

sence of the commission in Akwa Ibom State are Nduese Essien, former member of House of Representatives, Ita Enang, a presidential aide on Niger Delta Affairs and Iroigak Ikann, a former member of the state executive council.

Akwa Ibom is said to produce about 504,000 barrels per day (bpd) of crude oil, accounting for 32 percent of Nigeria’s production output but the oil bearing communities in the Akwa Ibom have often cried out against neglect and marginalisation by the state

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government.

Speaking during a radio interview in Uyo, Essien noted that while other states in the Niger Delta already set up such commissions, Akwa Ibom has yet to do so, adding that he had always advocated for a commission to address the development of the oil bearing communities.

“We have always advocated the establishment of the commission in Akwa Ibom. Many states in the Niger Delta have done so except Akwa Ibom,” he said. He said he raised the @Businessdayng

issue of the derivation during a meeting between Governors from the South-South region and National Assembly members in Benin, Edo State.

“On 13 percent oil derivation, we in the first National Assembly fought for it. The then President (Obasanjo) was not willing to pay the money.

We used our position in the National Assembly to compel him to pay. The issue of resource control was primarily my idea at a meeting with the governors and members of the National Assembly in Benin.

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Wednesday 30 September 2020

BUSINESS DAY

news ‘Care for heart diseases complicated by COVID-19’ CALEB OJEWALE

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s this year’s World Heart Day is observed today, the World Heart Federation (WHF) has warned that Covid-19 is creating a perfect storm for heart health.

It notes in a statement that three main factors are contributing to this, and first is that people with Covid-19 and heart disease are among those with the highest risk of death and severe complications.

Second, the heart might be adversely affected by the virus even in people without preexisting conditions. Finally, fear of the virus has led to a sharp decline in hospital visits by heart patients for routine and emergency care.

“In these trying times, it is paramount that we pay special attention to those who are at greater risk of complications from Covid-19 and better understand how the virus is affecting the hearts of otherwise healthy people,” said Karen Sliwa, WHF president. “Covid-19 has created a perfect storm, in which those people with CVD fare poorly, and those at risk don’t seek the treatment that they need to keep their hearts healthy. The heart and the entire vascular

system are in danger and we need to act now. Today, we have a unique opportunity to unite, to mobilise our skills and to use our heart to act.”

Cardiovascular Disease (CVD) has many causes: from smoking to diabetes, high blood pressure, obesity, and air pollution. To combat these, WHF says it is calling not only for individual behaviour change but for a societal one.

With equity at the centre of WHF’s work, it is vital to make access to healthcare, healthy foods and a healthy way of life accessible and affordable to all people. Regulating unhealthy products, while creating healthy environments are examples of such solutions for governments and communities. Given the current situation, WHF is also calling for recognition and urgent protection of frontline healthcare providers.

The organisation, which notes its purpose is to unite the global health community to beat cardiovascular disease, which kills 17.9 million people every year, has launched a global study on cardiovascular disease and Covid-19 to better understand outcomes and risk factors in hospitalised patients with Covid-19.

Banks lose juicy yields as income from government debt slumps BALA AUGIE

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iger ian largest banks no longer enjoy juicy yields that used to spare them from profit pains as income from government debt slumps for the first time in four years.

For the first six months through June 2020, the largest lenders realised N456.33 billion income from treasury bills, which represents a 12.20 percent reduction from 2019’s N519.75 billion.

Analysis by BusinessDay shows income from government securities rose by 16.20 percent to N519.75 billion in 2019 from N447.25 billion in 2018. The item increased by 11.10 percent to N447.25 billion in 2018 from N402.76 billion.

Income from government securities makes up 48.78 percent of total interest income on loans and similar charges in 2020.

The sizable liquidity coming to the market in the fourth quarter (Q4) will keep the yields suppressed, a double whammy for lenders who are reeling from deteriorating net interest margins, according to Gbolahan Ologunro, equity research analyst at CSL Stockbrothers Limited.

“The central bank tilted towards a dovish stance when it reduced monetary policy rate (MPR) to 11.50 percent from 12.50 percent to

stimulate economic growth,” Ologunro said.

Ologunro sees Open Market Operations (OMO) bills of around N2 trillion maturing by the fourth quarter of the year.

Lenders used to rack up purchase of local government bonds some three years ago when the country had one of the highest yields emerging markets.

That same period, OMOs used to trade in the double digit because the central bank tightened system liquidity in a view to curbing inflation and stabilising the economy.

However, average yields on Treasury bills that are sold at regular auctions have declined to 1.9 percent, following the decision of the central bank late last year to bar individuals and local non-banking firms from buying high-yielding central bank bonds.

The apex bank said the new policy would discourage lenders from giving loans to speculators who want to buy government securities instead of investing in the real economy.

At the recently concluded MPC meeting, the central bank governor, Godwin Emefiele, disclosed that the Loans to Deposit Ratio (LDR) policy was yielding fruits as the total credit to the economy rose to N19.33 trillion in August 2020 from N15.57 trillion in May 2019. www.businessday.ng

L-R: Lilian Salami, vice chancellor, University of Benin, Edo State; Godwin Obaseki, governor, Edo State; Osarodion Ogie, secretary to the State Government, and Jimoh Ijegbai, commissioner for Education, after a courtesy visit by the management of UNIBEN, at Government House, Benin City.

Nigeria to link Apapa, Tin Can, Warri ports, others to rail network ... as Buhari inaugurates 326km Itakpe-Ajaokuta-Warri rail line Tony Ailemen & Gift Wada, Abuja

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igeria’s President Muhammadu Buhari on Tuesday directed the minister of transportation to link Apapa, Tin Can, Warri, Onne and Calabar ports to the rail network in order to significantly improve overall transportation and economic capacities.

The President stated this while inaugurating the 326km Itakpe-Ajaokuta-Warri rail line that targets 1 million passengers and 3.5 million tonnes capacity of freight annually that will service all off-takers on the corridor and beyond.

At the virtual opening of the rail line linking Itakpe to Warri, President Buhari directed the Federal Ministry of Transportation to link all the nation’s ports of origin and destination to the rail network.

The President declared that his administration recognised the importance of the railway mode of transportation as a vital backbone to support industrialisation and economic development.

“Accordingly, I have approved the prioritisation of viable railway routes for either new rail lines or the reconstruction and rehabilitation of some, to achieve effective and efficient train services supporting the country’s trade and commerce.

“The Railway Infrastructure that I have the honour to commission today is the rail line from Itakpe via the steel town complex of Ajaokuta to Warri, and is an important link for the country’s economy as the central rail line.

“This government has also approved to link this line further from Itakpe to Abuja, thereby, connecting the Northern zone of the country

and also extending southwards to link the Warri Ports,” Buhari said.

He expressed confidence that the project, which serves as a vital link of South-South geopolitical zones of the country to the Northern zones, would be completed during the tenure of this administration.

“It will link people across the cultural divides and expand the frontier of trade and commerce, which will lead to better standards of living for our citizens,” he said.

President Buhari recalled that to further give recognition to Nigerian sons and daughters who have distinguished themselves at nation building and development, 11 railway stations and railway villages were named after some deserving citizens.

He listed them as follows: Adamu Attah Station, Itakpe; Abubakar Olusola Saraki Sta-

tion, Ajaokuta; Augustus Aikhomu Station, Itogbo; George Innih Station, Agenebode; Anthony Enahoro Station, Uromi; Tom Ikimi Station, Ekehen, and Samuel Ogbemudia Station, Igbanke.

Others are Goodluck Jonathan Railway Complex, Agbor, Owa-Oyibu; David Ejoor Station, Abraka; Michael Ibru Station, Opara; Alfred Rewane Station, Ujevwu; and Michael Akhigbe Railway Village, Agbor.

The President enjoined all Nigerians in the transportation industry, especially the railway sub-sector, to continue to support government in its stride to achieve other railway infrastructure projects.

He also enlisted the support of all at realizing this milestone of a functional and full-fledged central railway, after more than 30 years during which the project has suffered several setbacks and false starts.

Cash is biggest hurdle facing FGN-Labour deal on refineries Stephen Onyekwelu & Dipo Oladehinde

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he proposed agreement towards reviving Nigeria’s four moribund refineries between the Federal Government and labour unions may be an endless mission if several bottlenecks are not removed.

In a bid to avert a proposed nationwide strike led by Nigeria Labour Congress (NLC), the Federal Government led by the secretary to the federation, Boss Mustapha, agreed to speed up the rehabilitation of the four refineries while specifically targeting a 50-percent completion of Port Harcourt Refinery by December 2021.

For a government struggling with revenue and lack of funds to even finance 2020 budget, most stakeholders have raised questions on how the government plans to honour its agreement with the labour unions.

Finance challenges, along with Nigerian National Petro-

leum Corporation’s (NNPC) role in controlling crude production and pipelines, plus a multitude of risks spanning policy, regulation, politics, payments, operations and security are other concerns raised by experts.

“The petroleum refining business is capital intensive.

To repair the Port Harcourt Refinery today will cost at least $1 billion,” Alexander Ogedegbe, former managing director, NNPC Port Harcourt Refinery, says.

Nigeria’s four state-owned refineries with a combined capacity of 445,000bpd have been idle for more than a year as they wait for essential maintenance, with little likelihood of resuming production as cash flow constraints and coronavirus-related movement restrictions hamper repairs.

“In the past, there have been talks of bringing partners to help refurbish the refineries and run them. Why is nobody talking about that,” Ogedegbe asks.

Ronke Onadeko, principal

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consultant, DRNL Consult Limited and member expert advisory panel, Nigeria Natural Resource Charter (NNRC) with focus on the downstream oil and gas sector, states that government’s promises about the refineries would not happen. “It is all talk,” Onadeko says.

Nigerians were irked following NNPC’s release of the 2018 audited report that revealed the four refineries recorded N154 billion in losses with the Kaduna Refining and Petrochemical Company (KRPC) incurring 42 percent of the total loss, without generating any revenue during the fiscal period.

Not only that, the turnaround maintenance (TAM) and operational expenditure (OPEX) for these refineries since the reversal of its privatisation by late President Musa Yar’Adua has gulped trillions of naira.

The decrepitude of the refineries in Africa’s largest crude producer is a reflection of the sorry state of an oil and gas sector starved of investment, but also a reminder of @Businessdayng

the country’s sluggish crudedriven economy. Oil still accounts for as much as 56 percent of state revenues.

“If I got $5,000 for each time government made such promise and failed I should be building a house by now.

History is filled with evidence of the Federal Government’s inability to manage commercial entities,” Onadeko states.

Unlike other sectors in the economy where private sector money has come in to revolutionise the economics of things and improve the status quo, the government has continued to dominate Nigeria’s refining landscape.

Some experts point to unclear policies and poor government regulation, while others blame insecurity and poor infrastructure. To be candid, both are correct.

Dangote Group and Niger Delta Petroleum Resources Refinery are two of only 40 projects since 2002 to receive refining licences that have made significant progress in construction, according to the Robert Gordon academics.

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News FrieslandCampina WAMCO acquires...

Continued from page 1

ness will be integrated into FrieslandCampina WAMCO Nigeria plc. FrieslandCampina did not disclose how much the deal was worth.

According to Roel van Neerbos, president, FrieslandCampina Consumer Dairy, “FrieslandCampina WAMCO has been a key player in Nigeria since 1954. With this acquisition, we demonstrate our strong commitment to Nigeria and its dairy market.”

Ben Langat, managing director of FrieslandCampina WAMCO Nigeria, said, “It is our mission to bring affordable and attainable quality dairy products to all Nigerians and meet the growing demand. That’s why we are pleased with this acquisition.”

Over the last few years, FrieslandCampina WAMCO has invested significantly in capital expenditure, including a new warehouse and a worldclass learning academy to build capabilitiesacrossfunctionsand to drive talent development.

Recently, the company commissioned a state-of-theart plant for local production of Peak Yoghurt, which is directly linked to its highly successful dairy development programme, a major investment that has been at the centre of Nigeria’s backward integration in local milk sourcing over the last decade with over 9,000 lo-

cal farmers spread across five states in Nigeria.

FrieslandCampina WAMCO says it would continue to expand its portfolio, particularly through low unit price packs and by strengthening its distribution reach in the market.

“Having fulfilled all requirements including requisite shareholders and regulatory approvals, FrieslandCampina WAMCO has commenced operations at the newly acquired plant,” it further states.

Nutricima Limited was founded in Nigeria in 2005 and has earned itself consumer awareness within the dairy industry since then.

Analysts say the deal is a signal that Nigeria’s dairy industry is becoming increasingly attractive.

Euromonitor International said in a 2019 report that FrieslandCampina WAMCO Nigeria dominated the condensed milk market in Nigeria in 2019, accounting for more than a half of overall value sales.

“This position can be attributed to the strength of its Peak brand of condensed milk, although it also offers the lower-priced Three Crowns brand,” Euromonitor International said.

There have been mergers and acquisitions in Nigeria’s manufacturing sector in recent times.

Government urged to create 10-year...

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lighted some of government’s infrastructure projects to deepen gas use domestically to include the take-off of the AKK pipelines, OB3 pipeline connecting the Niger Delta to the South West part of Nigeria and eastern part of the country, and renewed efforts to pass the Petroleum Industry Bill and create a regulatory organ for the midstream sector of the oil and gas value chain.

Mele Kyari, group managing director, Nigerian National Petroleum Corporation (NNPC), said the corporation was focusing on the implementation of the Gas Master Plan, which has domestic gas supply, pricing and infrastructure goals.

“In terms of Gas and Power, we are developing and integrating gas and power infrastructure networks (increase interconnectivity) as well as stimulating gas demand (power generation, feedstock, transport,” Kyari said in remarks made at the event.

With less than 20 percent of the natural gas produced in the country going to the domestic market despite huge demand, stakeholders have advocated for a higher market penetration by putting the right regulations, fixing infrastructural challenges and encouraging private sector in order to unlock the nation’s huge gas potential.

According to ED Ubong, managing director, gas, Shell Nigeria, there are huge opportunities in the domestic gas market that can come through Nigeria’s industrial cycle, through important sectors such as manufacturing, power, feedstock, among others “We need to put regulations in place that will put long-term clarity on the availability of gas, Ubong said, noting, “Most investors want to know if gas will be available in the next 10 years, not just a year contract.”

Some of the major challenges facing the sector include the dearth of major gas infrastructure projects, the inability of projects to reach final investment decision (FID), divestments by international oil companies (IOCs) from onshore assets to focus on deepwater without requisite financial and operational know-how by local producers to take them over, and poor regulatory policies.

Gas projects also require huge capital outlays.

Gas production in Nigeria has grown from 0Tcf in 1958 to 2.90Tcf in 2018.

Between 2001 and 2018, Nigeria’s gas production has grown by 1Tcf. Gas utilisation within the same seven years grew by 40 percent, from 49 percent in 2001 to 89 percent in 2018.

A significant amount of this gas is re-injected for crude www.businessday.ng

L-R: Ibrahim Gambari, chief of staff to the president; Godwin Emefiele, governor, CBN, and Boss Mustapha, secretary to the Government of the Federation, during a virtual inauguration of the Itakpe-Ajaokuta-Warri Rail project by President Muhammadu Buhari, at the Presidential Villa in Abuja, yesterday.

FMDQ Clear landmarks as Nigeria’s...

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and capital-efficient manner that unlocks value for market participants within its value chain.

With the foresight of the SEC, having actively engaged with market participants for several years on the requisite regulations, robust and world-class “Rules on Central Counterparty” were published in December 2019, thereby setting the regulatory environment for the establishment of a CCP. However, the final piece on FMDQ Clear’s aspiration of evolving into a fullfledged and sustainable

oil production, and 11 percent of Nigeria’s gas is still flared, rather than 51 percent two decades ago. Sixteen percent of Nigeria’s gas was exported to the international market in 2001 as against 41 percent in 2018.

On the other hand, domestic gas utilisation has grown by 7 percent between 2001 and 2018, from 7 percent to 14 percent, respectively. This points to a vast opportunity in the domestic gas market, some of the panel members said.

Domestic gas infrastructure deficits have impaired local gas distribution between supply sources and markets, and several towns and cities in Nigeria are underserved and without access to gas.

Attah however said new gas projects should be complemented with the security of assets to prevent vandalism, as the security of assets will guarantee the security of supply.

“The government needs to be more deliberate and focused on gas,” said Attah, as the world is pivoting into an era of cleaner fuel with implications for Nigeria.

Globally, the energy sector is in transition to cleaner fuels due largely to the impact of climate change, which is worsened by burning fossil fuels. But a rapidly growing world population said to increase by over 2 billion in the next 50 years raises hope that the demand for energy will not completely dry out.

CCP was then the legal basis to support its planned activities – netting and bankruptcy remoteness of financial market transactions.

This required legislation, in another revolutionary event for the Nigerian markets, was addressed by the repeal and re-enactment of the Companies and Allied Matters Act, 1990 (CAP C20, LFN 2004) as Companies and Allied Matters Act 2020 (CAMA 2020) into law on August 7, 2020. Particularly, this new Act, which is positioned to set the Nigerian economy on the path of remarkable growth, made provisions for netting and bankruptcy remoteness.

Indeed, these game changing provisions will cure critical legal deficiencies that hitherto affected the development of the financial markets, with the netting provisions addressing the credit risk challenges, operational and legal bottlenecks of gross settlement for spot and derivatives transactions, and the bankruptcy remoteness provisions tackling the uncertainty around the finality of settled transactions whilst securely ring-fencing collaterals placed in execution of financial contracts.

It is noteworthy that FMDQ Clear, being the first Central Clearing House in Nigeria and having provided clearing services for the Central Bank of Nigeria (CBN) Naira-Settled OTC FX Futures product from its inception with over $50 billion worth of contracts executed, has acquired operational capabilities and experience that rival similar markets internationally, while adapting to local peculiarities.

This attribute has uniquely positioned FMDQ Clear to take on the new responsibilities of a CCP effectively and efficiently well for the benefit of all market participants and in perfect alignment with the Nigerian financial markets regulators’ aspirations.

In many Emerging Markets, derivatives markets are small, while hedging costs are high, making it difficult for issuers/borrowers and

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investors/lenders to tailor their currency and other risk exposures to their needs.

This, among others, account for the aspiration of the FMDQ Group, through its wholly owned securities exchange, FMDQ Securities Exchange Limited (FMDQ Exchange), to introduce new and critical products into the Nigerian financial markets in the near-term, including exchange-traded derivatives, supported by a robust and resilient CCP, FMDQ Clear.

Furthermore, as is bestpractice across the global financial markets and in line with the International Organisation of Securities Commissions’ (IOSCO) recommendations for FMIs, it is crucial for a CCP to have sufficient and resilient financial resources to enable it effectively deliver on its mandate.

Consequently, FMDQ Clear has not only made adequate arrangements to enable it meet the regulatory capital requirements of N5 billion set by the SEC for a CCP, but has proactively further developed and deployed a robust Default Resolution Reserve, bringing FMDQ Clear’s total financial resources to c.

N15 billion with the ambition of doubling this in the medium-term.

These financial resources set the tone for FMDQ Clear, as a CCP, to support the FMDQ Group’s aspiration of building financial markets that are truly reflective of the position of the Nigerian economy in Africa and enable significant flows of transactions.

Leveraging on its aspirations to deepen the Nigerian financial markets, and transform them to be globally competitive, operationally excellent, liquid and diverse, in line with the FMDQ ‘GOLD’ Agenda, FMDQ Group has consistently pursued the development of requisite technical capacity and skills to support said aspirations.

As a result, ‘best-in-class’ Subject Matter Experts (SMEs) have been engaged to support the development of requisite technical capacity in FMDQ Clear employees and key mar@Businessdayng

ket participants towards achieving a fit-for-purpose and world-class CCP operationalisation.

As FMDQ Clear primes for the activation of the FMDQ Exchange derivatives market and the revolutionising of the FMDQ Exchange spot markets in alignment with the strategic product development plan of the FMDQ Group, market participants are beginning to position themselves to take advantage of the ‘emerging financial markets’. Four CBNlicensed commercial banks have proactively formally registered their interest with FMDQ Clear in becoming Clearing Members of the CCP. Bola Onadele. Koko, CEO, FMDQ Group, expressed his delight at this milestone, saying, “By the Ap p rov a l - i n - P r i n c i p l e granted FMD Q Clear ’s registration as a CCP, the Commission has again, demonstrated its relentlessness and forward-thinking disposition towards the development of the Nigerian capital markets and the nation’s economy.

“The evolution of FMDQ Clear to a CCP marks a critical and long-awaited milestone in the Nigerian financial markets ecosystem, positioning the markets for revolutionary growth in potentially colossal proportions. FMDQ, as a group, is indeed appropriately placed to de-risk the Nigerian financial markets and thereby, in collaboration with market stakeholders, ensure the realisation of this enormous feat.”

FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, strategically positioned to provide seamless execution, clearing & settlement of financial market transactions, and depository of securities, through its wholly owned subsidiaries – FMDQ Securities Exchange Limited, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited – and is guided by its mission to collaborate to empower markets for economic progress towards delivering prosperity.

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news

What Nigeria’s $9.4m fresh commitment in Shelter Afrique means for housing market CHUKA UROKO

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ecently, Nigerian government made an additional capital injection estimated at $9.4 million into Shelter Afrique (SHAF), a development, experts say has positive implications for the country’s housing market and, by extension, its homeseeking population.

SHAF is Africa’s continental housing finance institution owned by 44 African governments, African Development Bank (AFDB) and Africa Re. Its interest is chiefly in mortgage-backed, affordable housing.

Apart from Nigeria, other African countries have also made contributions to the housing finance institution totaling $16 million. Those countries are Lesotho, Mali, Namibia, Rwanda Uganda, Togo and Swaziland.

Nigeria’s new capital addition makes it the second largest in the organization in terms of shareholding with 14.77 percent stake. The country comes behind Kenya which has 14.87 percent and ahead of the AFDB with 14.28 percent. What this means, in a nutshell, is that there will be increased activities in the housing market and improved chances of homeownership.

Again, it places Nigeria in good stead to benefit from the organisation’s housing programmes and interventions across Africa. Besides a $3 million equity participation in the newly created Nigeria Mortgage Guarantee Company (NMGC), SHAF will, over the next five years, be investing about $180 million in Nigeria’s housing sector.

The continental housing finance institution, which was instrumental to the cre-

ation of the Nigeria Mortgage Refinance Company (NMRC), will be disbursing N180 million through credits to financial institutions, mortgages, and construction finance for public private partnership projects.

The investment is in line with its 2019-2023 strategic plan that would help in reducing Nigeria’s housing deficit and increase the supply of over 100, 000 housing units annually. As at December 2018, SHAF’s portfolio in the Nigerian market rose to $14.6 million as the board approved the disbursement of lines of credit worth $16 million to two major financial institutions in Nigeria within the same year.

A major implication all these have for Nigeria is that the country will be benefiting from housing finance. The projects being considered are a public-private-part-

nership with the Kaduna State 60,000 homes, which is anticipated to create 300,000 jobs. The organisation is also in the final stages of providing lines of credits totaling $16 million to two Nigerian banks to create mortgages that will directly impact 4,700 Nigerians.

Andrew Chimphonda, chief executive officer of the institution, who gave these indications, noted that Africa has not been able to meet the expectations of the United Nations in terms of access to decent housing by African people even before Covid-19.

He added that the rate at which affordable houses are being provided is lower than the rate of urbanization, stressing the need for a commensurate provision of housing, else there would be further development of slums even after the pandemic.

CBN to move gender financial inclusion gap from 8.5% to zero in 2024 …as it releases framework HOPE MOSES-ASHIKE

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he Central Bank of Nigeria (CBN) is planning to move financial inclusion gender gap from 8.5 percent (based on 2018 data) to no gender gap in 2024.

The bank disclosed this in the Framework for Advancing Women’s Financial Inclusion in Nigeria released on Monday.

According to the framework, this is to be achieved in a two-step process. The first milestone on this path is the reduction of the gender gap by one half by end 2021; this is the target set by members of the Alliance for Financial Inclusion (including Nigeria) under the Denarau ActionPlan5 The second milestone is to eliminate the gender gap by end 2024.

The 2018 EFInA access to finance survey in Nigeria shows that the national financial inclusion rate was 58.9 percent of women compared with 67.4 percent of men, or a gender gap of 8.5 percent.

Given the persistency of the gender gap in financial inclusion, members of the Alliance for Financial Inclusion (AFI), including Nigeria, committed in 2017 to the Denarau Action Plan to increase women’s access to quality and affordable financial services globally — bridging the financial inclusion gender gap.

Denarau Action Plan tar-

gets to accelerate the progress of women’s financial inclusion by halving the financial inclusion gender gap across AFI member jurisdictions by 2021.

The plan outlines ten steps to support the commitment of AFI members to close the gender gap in financial inclusion.

The closure of the gender gap is important not only because it is part of the achievement of Nigeria’s overall financial inclusion target, but also because of the potent value proposition of women’s financial inclusion in the context of Nigeria’s economic and social development, the framework stated.

The framework identifies the key barriers to attaining this goal, frames the strategic imperatives and recommendations required to overcome these barriers, and sets the stage for the formulation of a set of actions that are implementable, feasible, and trackable. This blueprint will have a separate implementation plan that includes the specific roles and responsibilities of all relevant stakeholders in improving access to finance by women in the country.

The goal of attaining the financial inclusion of Nigerian adult women and men at equal levels by end 2024 is ambitious. The CBN has provided indications of what would be required to achieve the ambitious overall financial inclusion target.

Climate change: Uzodinma, Bagudu, others call for legislation Iniobong Iwok

L-R: Tony Ojukwu, executive secretary, National Human Rights Commission; Salisu Garba, representative of the chief judge of FCT and chairman, presidential committee on Correctional Service Reforms and Decongestion; Abubakar Malami, minister of justice and attorney-general of the federation; Dayo Apata, solicitor-general of the federation, and Leticia Ayoola-Daniels, permanent secretary, Federal Ministry of Justice, and Nkiru Maduechesi, secretary of the Presidential Committee on Correctional Service Reforms and Decongestion, and child protection specialist, UNICEF, during a virtual interactive session of Malami with attorneys-general and heads of courts of the 36 states and the FCT, in Abuja yesterday.

P&ID: Nigeria’s foreign reserves receives boast as London Court orders release of $200m DIPO OLADEHINDE

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he Federal Government has secured another landmark victory as a London Commercial Court on Tuesday ordered the release of the $200 million guarantee put in place as security for the stay of execution granted Nigeria for the appeal filed against Process and Industrial Developments (P&ID).

“Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200 million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect

of the execution of the muchdiscredited P&ID $10 billion Arbitral Claim,” Central Bank of Nigeria (CBN) tweeted on Tuesday afternoon.

According to the CBN, the court also awarded a £70,000 in favour of Nigeria in addition to an earlier award of £1.5 million.

BusinessDay reported earlier this month that the Federal Government secured a landmark victory in its bid to overturn a $10 billion arbitration judgment award against it in a case against Process and Industrial Developments (P&ID).

Process & Industrial Developments, a firm based in the British Virgin Islands set up solely to build a gas processing www.businessday.ng

plant in Nigeria, won a $6.6 billion arbitration award after the 2010 deal collapsed.

The award had been accruing interest since 2013 and is now worth more than $10 billion.

On January 31, 2017, an arbitration tribunal had ruled that Nigeria should pay P&ID, the sum of $6.6 billion as damages and breach of contract after a 2010 deal for a gas project in the Niger Delta part of Nigeria collapsed.

The pre and post judgement accrued interest of 7percent has seen the amount standing against Nigeria, rise to almost $10 billion, an amount that will be a serious dent on the country’s external reserve.

Nigeria in September successfully sought the right to appeal an August ruling that would have converted the arbitration award to a judgment, which would make it easier for P&ID to seize its assets.

Justice Cranston J. of United Kingdom High Court had on September 10, 2020 order P&ID to make an interim payment of more than £1.5 million to the federal government within 21 days.

The £1.5 million was to cover legal costs the federal government incurred as part of its successful application for the extension of time to challenge the arbitration award and procedural hearing earlier in the year.

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takeholders have advocated for an enactment of appropriation legislation to help deal with the challenge of climate change.

They also called for the mainstreaming of climate change and ecological issues in the country, while seeking for more concerted action from stakeholders to deal with the problem.

They spoke, Tuesday, at a webinar organised by the Centre for Values in Leadership (CVL).

The event was moderated

by Pat Utomi the centre’s founder with the theme: ‘Embedding effective governance regimes for environmental sustainability and climate change actions in Nigeria’.

Utomi in his introduction, warned of the dangers that the increasing effects of climate change posed to humanity, calling for concerted effort to check the problem.

The event had in attendance Governor Hope Uzodinma, Imo State; Governor Abubakar Bagudu, Kebbi State; Mohammad Abubakar, minister of environment, and Edward Kallon, United Nations resident coordinator in @Businessdayng

Nigeria among others.

The panellists were Aliu Jauro, director-general/ CEO, National Environmental Standards and Regulations Enforcement Agency (NESREA), Jubril Adeojo, co-founder, SMEFUNDS Capital, and Tunji Bello, commissioner of environment, Lagos State.

The minister of environment said the Federal Government was concerned about the increasing effects of climate change in Nigeria and had initiated different programmes in conjunction with states to mitigate them.

He said his ministry in a bid to create awareness had encouraged the setting up of conservative clubs in secondary schools.

In his presentation, Governor Uzodimma said his state had been adversely exposed to the effect of climate change due to its high population and typography, urging the Federal Government to allow states to be in charge of environmental issues in their states.

Bagudu of Kebbi State lamented the effect of flooding in his state in recent times, and called for a concerted effort from government and stakeholders for more dams to be built across Nigeria to check flooding.

A2

BUSINESS DAY

Wednesday 30 September 2020

news

NG Clearing paves way for trading Exchange Traded Derivative products Iheanyi Nwachukwu

…becomes Nigeria’s first central counterparty clearing house

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es, including settlement guarantee fund, to cover participants’ risk exposures.

Members will have access to a wide range of financial reports that equip them

G Clearing Limited has secured approval in principle from the Securities and Exchange Commission (SEC) to launch clearing and settlement of Exchange traded derivative products, as Nigeria’s premier Central Counterparty Clearing House (CCP).

As Nigeria’s first CCP, providing clearing & settlement of exchange traded derivative instruments in the Nigerian Capital Market, NG Clearing’s role in Nigeria’s financial ecosystem is to ensure safety of the market by managing counterparty credit risk, which in turn, reduces systemic risk in the Nigerian capital market, by guaranteeing settlement of trades.

NG Clearing is promoted

by The Nigerian Stock Exchange and Central Securities Clearing System Plc (CSCS) along with key stakeholders like the Nigeria Sovereign Investment Authority, Access Bank Plc, Consonance Kuramo Special Opportunities. Others include Coronation Merchant Bank Limited, Greenwich Trust Limited, Union Bank Plc, UBA Plc and Association of Securities Dealing Houses in Nigeria.

Speaking about the purpose of NG Clearing Limited, the board chairman, Oscar N. Onyema, said: “Our main role is to improve the safety of our financial market by delivering bestin-class post-trade services that manage counterparty credit risk and reduce systemic risk. To mitigate these credit risks in an efficient and robust manner, we will interpose ourselves as a guarantor to both parties in a transaction, thus ensuring the successful execution of derivatives and other trades from various trade points in Nigeria. We intend to deliver an unparalleled CCP experience for the Nigerian financial market”.

The company will optimise deployment of its resources to achieve longterm value creation for its stakeholders using a stateof-the-art risk management framework, which complies with global best practices for mitigating settlement risk. Its risk based additional collateral requirement will ensure that capital deployed by clearing members is always optimal.

The company intends to deploy a competitive lowcost clearing fee regime for members. The company has sufficient financial resourc-

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with extensive knowledge and enable them make informed decisions.

Reiterating the company’s aim, Tapas Das, managing director, NG Clearing

said: “NG Clearing shall be playing a key role in the financial market ecosystem in the region, upholding stability and safety of the marketplace, through effi-

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cient and timely settlement of derivative trades. The aim is to strengthen the country’s investment environment through solutions that systematically reduce risks,

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enhance operating efficiency, and minimize costs for all market participants, thereby serving as a catalyst to national development”.

Wednesday 30 September 2020

BUSINESS DAY

A3

POLITICS & POLICY

Climate change: Bagudu, Utomi, Abubakar, Uzodinma, Bello, others seek legislation, concerted effort Iniobong Iwok

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midst the increasing effect of climate change in the country, stakeholders have advocated for an enactment of appropriate legislation to help deal with the challenge.

They also called for the mainstreaming of climate change and ecological issues in the country, while seeking for more concerted effort from stakeholders to deal with the problem.

They spoke Tuesday, at a webinar organised by the Centre for Values in Leadership.

The event was moderated

by Pat Utomi, the Centre’s founder, with the theme: ‘Embedding Effective Governance Regimes for Environmental Sustainability and Climate Change Actions in Nigeria’.

In his introduction, Utomi warned of the dangers that the increasing effects of climate change posed to

Abubakar Bagudu

Pat Utomi

Hope Uzodinma

Mohammad Abubakar

humanity, calling on government and the private sector to synergise to save the country from an impending catastrophe.

The event had in attendance, Hope Uzodinma, Imo State governor; Mohammad Mahmood Abubakar, minister of Environment; Abubakar Atiku Bagudu, Kebbi State governor, Edward Kallon, United Nations Resident Coordinator in Nigeria, among others.

The Panellists were Aliu Jauro, director-general /CEO,

The National Environmental Standards and Regulations Enforcement Agency (NESREA); Jubril Adeojo, cofounder, SMEFUNDS Capital; Impact Investor climate change and social impact, and Tunji Bello, commissioner for Environment, Lagos State.

The Minister of Environment said the Federal Government was concerned about the increasing effects of climate change in Nigeria and had initiated different programmes in conjunction

with states to mitigate the problem.

He said his Ministry in a bid to create awareness had encouraged the setting up of conservative clubs in secondary schools.

In his presentation, Hope Uzodinma, Imo State governor, said the state had been adversely exposed to the effect of climate change due to its high population and topography, urging the Federal Government to allow states to be in charge of environmental issues in their states.

He said his administration had given ecological and climate change issues a priority since it assumed office by establishing a desk in ministries, while a special committee had also been set up.

Abubakar Atiku Bagudu, Kebbi governor, in his presentation, lamented the effect of flooding in his state in recent time, while seeking for more concerted effort from government and stakeholders for more dams to be built across Nigeria to check flooding.

Sonia Shekarri, who rep-

Cross River by-election: It is offensive to score others zero - PDP youth group MIKE ABANG, Calabar

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hairman of Cross River North Youths group of the People’s Democratic Party (PDP), Chris Abang has faulted the purported declaration of Stephen Odey as the party’s standard bearer for the October 31 by-election Chris said: Talking about the primary election, is it possible going by the result that declared Odey winner, that after all the extensive consultations across the state and Abuja, Martina Odom, and Mary Iji would score zero? It is not possible, it is unrealistic, it is insulting, it is provocative.”

Addressing journalists on

Tuesday at the Ernest Etim Bassey Press Centre, the group said: “However, we the concerned youths of Cross River North are not opposed to peace, but since the case of the primary is sub-judice, we urge everyone, including the youth in Cross River North to maintain status quo until the matter in court is determined.

“We use this opportunity to implore the Governor, Senator Ben Ayade as a father and leader of the party to always provide an atmosphere for all to compete.

“We the PDP youths of Northern Senatorial District of Cross River State are dismayed that nearly one month after the primary election that was

characterised by unprecedented violence that left some party faithful maimed and traumatised, the leadership has not thought it necessary to invite those directly affected to a round table to calm the frayed nerves.”

“As we speak, the ward chairman of Wanakom ward Ogana Lukpata is receiving treatment at Mkpa Local Government of Benue State for gun shot at the venue of the primary” The group also lamented the death of Charles Onwe, a PDP faithful who was murdered on the eve of the primary election, and called on the police to bring the perpetrators to justice.

Kwara: Tribunal declares PDP’s Candidate winner SIKIRAT SHEHU, Ilorin

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he House of Assembly Elections Petition Tribunal sitting in Ilorin, Kwara State has declared Yahaya Muhammad of the People’s Democratic Party (PDP) as the winner of the by-election that was held in March 2020.

The tribunal, however, nullified election of the lawmaker representing Patigi constituency in the state House of Assembly, Ahmed Adam of the All Progressives Congress (APC) over alleged irregularities in his names.

The PDP and its candidate had approached the tribunal alleging that Adam of the APC deposed to false information in the EC9 form he submitted to the Independent National Electoral Commission (INEC).

Delivering the judgment, the tribunal’s chairman, Aminat Aliyu said that Adam’s name on the EC9 form is different from the one on his primary school certificate, declaration of age, voter’s card and in the letter forwarded to the INEC on January 15, 2019.

Counsel to the PDP candidate, Ibn Mahmud, exwww.businessday.ng

pressed satisfaction over the judgment, saying it reflected the true position of law.

Reacting, the opposition PDP in the state congratulated its candidate in the by-election for his victory at the tribunal.

The party, in a statement by its chairman, Kola Shittu said “the judiciary should be hailed for standing up for the truth by declaring Hon. Salhiu Yahaya Muhammad as winner of the House of Assembly by-election which was held on March 14, 2020 following indictment of APC candidate over forgery of his certificate.

resented Kaduna State Governor, revealed that the Nasir El-Rufai administration had taken measures to mitigate the effects of climate change by encouraging tree planting, supporting subsistent farmers and building the capacity of institutions across the state to deal with the problem.

Jubril Adeojo, a member of the panelists, warned on the effect of climate change on the country, urging the government at all levels to take more decisive actions to avert the looming danger.

“Climate change is more dangerous than we think, even than Covid-19; governments at all levels must have the political will to take action on environmental issues now,” Adeojo warned.

Tunji Bello, commissioner for Environment, Lagos State, said the state was devising ways of dealing with waste collection and disposal, while adding that the increasing population had adversely contributed to climate change and ecological problems in the state.

Make probity, prudent management your watchword, Abiodun tasks board chairmen Razaq Ayinla, Abeokuta

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overnor Dapo Abiodun of Ogun State on Tuesday charged the new chairmen and members of Boards of State Government’s Agencies to make probity and prudent management their watchword, urging them to see all members of their staff as important catalysts in achieving the greatness of their respective boards.

The governor, who made the call at the swearing in ceremony of the new members of Boards of Government Agencies held at the June 12 Cultural Center, Kuto, Abeokuta, told the appointees not to constitute themselves to cost centres that would further eat into the already lean finances of the state government.

“As members of Boards of Governments Agencies, you are all enjoined to make probity your watchword, and be prudent in the management of both human and material resources under your care; you must consider all members of staff as the important catalysts to achieving the greatness of your Boards.

“You should all collectively and individually work hard to add value to your Boards rather than constitute yourselves into cost centres that would further eat into the already lean finances of Gov-

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ernment,” he said.

Abiodun, who further disclosed the desire of his administration to continue to give a sense of duty and responsibility to visionary leaders, opined that having visionary and purposeful leaders at agencies and corporations through the deployment of resourceful and competent individuals would further continue to translate and facilitate the present administrations development agenda across all sectors of the state’s economy.

The state’s helmsman, who also noted that the selection process for the chairmen and their members was a very competitive one and a testament to their past records, disclosed that the process of appointments into other positions of service for the continued development of the State was still on-going.

Abiodun further disclosed that his administration would continue to adopt the inclusive approach for positive contributions towards the development of the State, assured that the policies and programmes of government would not be determined by the fancy of one individual or group.

“No more will our policies and programmes of government be determined by the fancy of one individual or group. Ogun State belongs to all of us, therefore, all the people will have a say in mat@Businessdayng

ters relating to the continued development of our dear State,” he assured.

The governor also charged the new board chairmen and their members to stay clear of needless competitions that could complicate their operations, saying he expects them to imbibe the guiding philosophy of the building the future together agenda of the present administration in the state.

Responding on behalf of the newly sworn in chairmen and members of boards and parastatals in the state, the Chairman of the All Progressives Congress and also the Chairman, Ogun State Housing Corporation, Yemi Sanusi promised that they would put in their best towards actualising the building the future together agenda of the state government.

The boards that were inaugurated are those of Ogun State Housing Corporation, Ogun State Health Management Board, Ogun State Agro Services Corporation and Ogun State Bulk Purchasing now Gateway Trading Company.

The rest are those of Ogun State Agric MultiPu r p o s e C re d i t A g e n c y (OSAMCA),Ogun State Market Development Board,Ogun State Broadcasting Corporation, Ogun State Alternate Medicine Board, Food Crops Marketing Board and the Ogun State Waste Management Authority (OGWAMA).

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Wednesday 30 September 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Tuesday 29 September 2020

Top Gainers/Losers as at Tuesday 29 September 2020 LOSERS

GAINERS Company

Opening

Closing

Change

SEPLAT

N398

N400

2

BUACEMENT

N40.4

N41.75

1.35

N126.5

N127.5

1

DANGSUGAR

N12.3

N12.5

ZENITHBANK

N17.3

N17.5

MTNN

Company

Opening

WAPCO

Closing

Change

N16

N15

-1

ETRANZACT

N2.61

N2.35

-0.26

FBNH

N5.35

N5.2

-0.15

0.2

ARDOVA

N11.1

N11

-0.1

0.2

LEARNAFRCA

N1.14

N1.07

-0.07

ASI (Points)

26,611.96

DEALS (Numbers) VOLUME (Numbers)

4,681.00 413,103,507.00

VALUE (N billion) MARKET CAP (N Trn)

4.527 13.907

Seplat, BUA Cement, MTNN, others push Nigeria stock market higher …investors gain N54bn Iheanyi Nwachukwu

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he end-ofmonth rebound in Nigeria’s equities did not fade on Tuesday September 29 as investors continued their bargain activities favouring value counters hitherto trading at their record lows.

Top on the list of stocks that helped the market close in green are Seplat Plc, BUA Cement Plc, MTNN Plc, Dangote Sugar Refinery Plc and Zenith Bank Plc. At the close of trading session, the Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0. 39percent to 26,611.96 points from preceding trading day’s low of 26,507.84 points.

Investors gained N54billion at the close of the remote trading session on the Nigerian Stock Exchange (NSE).

This month alone, the stock market of Africa’s largest economy has yielded positive return of about +5.07percent; while this week it has advanced by 1.11percent.

Seplat led the league

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terling Bank Plc has obtained the Central Bank’s approval in principle to enable it restructure as a Holding Company, its Chief Executive Officer, Abubakar Suleiman told the Nigerian Stock Exchange (NSE).

The Holding Company is designed to operate on three major premises – Specialisation, Partnership and Digitisation.

The Bank said desire to op-

FTSE 100 Index 5,897.50GBP -30.43-0.51%

Nikkei 225 23,539.10JPY +27.48+0.12%

S&P 500 Index 3,334.24USD -17.36-0.52%

Deutsche Boerse AG German Stock Index DAX 12,825.82EUR -45.05-0.35%

Generic 1st ‘DM’ Future 27,227.00USD255.00-0.93%

Shanghai Stock Exchange Composite Index 3,224.36CNY +6.82+0.21%

Local investors account for 60.86% of Nigeria’s equities trading in 8 months

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n eight months to August 31, 2020, Nigeria’s domestic investors accounted for 60.86percent of equities trading on the Nigerian Stock Exchange (NSE), while foreign investors accounted for just 39.14percent.

Total value of stocks traded on the Bourse in the eight month period under review stood at N1.201trillion –foreigners accounted for N 470.2billion while domestic investors accounted for N731.02billion.

Domestic retail investors traded stocks worth N345.56billion while their institutional counterparts accounted for N385.46billion.

Foreign inflows amounted to N161.31billion while foreign outflows stood at N308.89billion.

On a monthly basis, the

Nigerian Stock Exchange polls trading figures from market operators on their domestic and foreign Portfolio Investment (FPI) flows.

As at August 31, 2020, total transactions at the nation’s bourse decreased month-onmonth (MoM) by 8.49percent, from N103.21billion (about $265.55million) in July 2020 to N94.45billion (about $244.27million) in August 2020.

The performance of the current month when compared to the performance in August 2019 (N121.99billion) revealed that total transactions decreased by 22.58percent.

In August 2020, the total value of transactions executed

by Domestic Investors outperformed transactions executed

by Foreign Investors by circa 18percent.

Coronation Research sees Mutual Funds becoming large part of savings industry L-R: Zainab Ahmed, minister of Finance Budget and National Planning; Modibbo Tukur, director/ chief executive officer, Nigerian Financial Intelligent Unit and Lamido Yuguda, director general, Securities and Exchange Commission during the National Conference on Whistle Blower Policy in Nigeria held in Abuja

of gainers after its share price increased from N398 to N400, adding N2 or 0.50percent. Also, BUA Cement share price rose from N40.4 to N41.75, up by N1.35 or 3.34percent.

MTNN advanced from N126.5 per share to N127.5, adding N1 or 0.79percent. Dangote Sugar Refin-

ery moved up from N12.3 to N12.5, up by 20kobo or 1.63percent; while Zenith Bank rose from N17.3 to N17.5, adding 20kobo or 1.16percent.

Likewise, the value of listed stock increased to N13.907trillion, from N13.853trillion recorded the preceding trading. The

market’s negative return year-to-date (YtD) decreased to -0.86percent.

Zenith Bank Plc, Sterling Bank Plc, UBA Plc, FBNHoldings Plc and FCMB Group Plc were actively traded stocks on the Bourse.

In 4,681 deals, investors exchanged 413,103,507 units valued at N 4.527billion.

Sterling Bank gets CBN approval in principle to restructure as Holding Company Iheanyi Nwachukwu

Global market indicators

erate as a Holding Company was driven by its plan to spin off its Non-Interest Banking window which became operational in January 2014 into an autonomous entity.

The Bank is currently in the process of meeting the conditions for the final approval for the Holding Company structure.

Sterling Bank Plc believes that the proposed structure incorporates efficiencies around operations and financing efforts that will support the individual businesses in reaching full potential through: Increased portfolio www.businessday.ng

diversification – The Holding Company structure enables the NonInterest Bank and other non-core businesses achieve greater results based on focused management of the distinct businesses; Improved efficiency resulting from the consolidation of key functions such as Compliance, Risk Management and other support functions, yielding improved prospects for individual business growth; Enhanced Corporate Governance which serves to promote a consistent culture across the group and quality of service to customers there-

by facilitating sustainability of earnings; and Better access to capital by leveraging the consolidated financial strength of the group which would have been otherwise difficult for each individual subsidiary company.

“Going into the Holding Company structure, our desire is to entrench our business model premised on social capitalism where we believe that private sector capital and market-based tools will offer the best types of solutions to Nigeria’s most pressing social and environmental challenges.

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Iheanyi Nwachukwu

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utual Funds are growing rapidly and are quickly becoming the default destination for Nigerians’ savings, said Coronation Research in its recently released report on Mutual Funds.

Just as the Pension Funds began to take off a decade ago, now Mutual Funds are growing fast. The total value of Money Market funds rose 11percent and Fixed Income funds rose by 59percent in the first half of this year. Mutual Funds are set to become a large part of the savings industry. In a few years they may rival Nigeria’s Pension Funds in size.

In its new report ‘The Shifting Appetite of the Nigerian Investor: From Savings to Mutual Funds’ the renowned Coronation Research explains the conditions behind this growth.

The total Assets Under Management (AUM) of Nigeria’s Mutual Funds (also known as Collective Investments Schemes) rose by 305percent in the period between 2015 and 2019, more than doubling in inflation-adjusted terms.

As commercial banks progressively offered lower

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rates on Savings Accounts, more money switches to Mutual Funds. And the introduction of tech-based savings platforms introduces a new generation of young savers to Mutual Funds.

“The Mutual Fund industry in Nigeria faces two challenges,” says Guy Czartoryski, Head of Research at Coronation Asset Management, adding that “the first is risk management”.

“The era of high returns from Nigerian Treasury Bills ended in 2019. Today, investors need to invest in a variety of other asset classes in order to obtain a reasonable return, without becoming totally exposed to any one asset class.

“That means that investment management is more complex and more necessary than before.

Second, there needs to be more information on fund performance in order to facilitate fund selection by investors and professional advisers. Fortunately, the industry and its regulator are moving in this direction, preparing the ground for a hugely expanded Mutual Fund industry in future, and creating the conditions for a significant capital base for the nation,” Czartoryski stated.

Insight

BUSINESS DAY Wednesday 30 September 2020 www.businessday.ng

Gender disparity and effect on financial inclusion Onyeka Akpaida

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he International Finance Corporation (IFC) estimates that approximately 80 percent of women-owned businesses with credit needs in low-income countries are either unserved or underserved. This is equivalent to a $1.7 trillion financing gap; the difference between funding available and funding needed. Consequently, the global economy does not materialise an annual $330 billion in turnover due to this financing gap.

In Nigeria, there is a 14 percent gap between the portion of men and women that own bank accounts – twice the size globally.

While a bank account is a gateway to other financial services, it does not automatically translate into the actual use of or access to these financial services. However, the evidence on the broader inclusion of women into formal finance is disappointing.

All data points in the same direction: the current financial sector landscape, especially in low-income countries and marginalised communities, makes it easier for men to access financial services than women.

For these women, this means the odds are already stacked against the growth potential of their businesses, despite their significant contributions to Gross Domestic Product (GDP) and employment. Women own and lead approximately 40 percent of Nigeria’s 41.5 million micro, small and medium enterprises (MSMEs). MSMEs do not only represent a significant part of the world economy, but they are also one of the strongest drivers of economic development, innovation and employment in Nigeria.

Yet, work for women in African countries is characterised by low-paid and less secure jobs, so that 92.1 percent of women make up employment in the informal sector. Considering that the informal sector contributes about 41 percent of Nigeria’s economic output, there are no labour standards to protect the workers, so exploitation and discrimination are rife, with women feeling the worst brunt of it.

At the same time, women are more intentional savers (with lower loan-to-deposit ratios than men), more prudent borrowers (with lower nonperforming loans than men) and calculated risktakers. Giving women better access to credit and other financial tools and services is considered a critical enabler to achieving several Sustainable Development Goals (SDGs), including eliminating poverty (SDG 1), reducing hunger and food security (SDG 2), achieving good health and well-being (SDG 3), foster-

ing quality education (SDG 4), promoting gender equality (SDG 5), and equitable and peaceful societies (SDGs 10 and 16). Yet, the potential of women-owned businesses is an investment that is largely overlooked and unexplored.

This persistent financial inclusion gender gap continually challenges the sustainable development of Nigeria. With less than four years left to attain 95 percent Financial Inclusion by 2024, it is time to step up the focus on gender equality and financial inclusion as a driver for positive change for women as well as for our economic growth and development. Regulators view financial inclusion predominantly as an important but largely gender-neutral policy issue. But in reality, access to finance in Nigeria appears to depend on one’s gender.

To borrow from the words of the H&M Foundation, “By not giving women entrepreneurs equal access to finance, investors keep missing out on what could become the new Apple Inc or Amazon.com – every year.” So, this begs this question: How can the government, private sector and key developmental organisations expand financial inclusion and bring more women into the economy?

Leverage digital technology As we search for a solution to the inequality between men and women in accessing finance around the world, the answer could be simple: digital financial services.

Expanding financial inclusion ensures that women have access to financial tools and services to save for family needs, borrow to support a business (access to credit) and build a cushion against emergency (insurance).

Most importantly, expanding financial inclusion ensures that women have the financial knowledge to make the right decisions and improve their economic resilience.

Our world is becoming increasingly more digital and new data by the World Bank Group suggests that mobile phone ownership and internet access show unprecedented opportunities to use technology to achieve uni-

versal financial inclusion. The proportion of Kenya’s population with access to formal financial services rose to 83 percent in 2019 from 75 percent in 2016, primarily driven by mobile technology.

Kenya’s mobile money system, M-PESA, has been critical in Kenya’s Financial Inclusion Drive by providing a platform for even the marginalised households in Kenya to move money quickly and cheaply from one person to another.

Let’s consider Asabe Yusuf, a young widow with four children.

Asabe owns and runs a small business of selling bananas and other seasonal fruits at Apo Junction in Nigeria’s capital, to keep a steady income stream — a typical female-owned micro business that does not hold much physical collateral. Like many women in Nigeria and other developing countries, Asabe does not have an official form of identification, the minimum requirement for opening accounts in formal financial institutions. Over the years, she has had to pass on several opportunities to get an account and access credit from the bank because she lacked the requisite requirements mandated by most financial institutions.

That was until we met her and told her about Kudeena – our financial inclusion and literacy vehicle targeted at low-income and forcibly displaced women in the North. Asabe not only opened a bank account but became our spokesperson at the junction where she trades and in her community. By saving consistently in her new bank account over a period of time, she is now able to buy larger amounts of produce thereby increasing her margins.

In addition, after successfully undergoing our financial literacy training, we were able to provide Halima with a loan via our microcredit scheme and this helped scale her business further.

Solving the access to finance – especially for women – requires community engagement and a nuanced understanding of the women these services are being developed for. Digital financial tools and services – and the associated learning to aid adoption – can help to drive adoption at scale.

Women entrepreneurs like Halima may lack the capacity to produce collateral or sufficient credit information to access loans from traditional financial institutions. Still, they continue to generate cash in their businesses.

Therefore, they can benefit substantially from an increased availability of cash-flow-based loans without collateral or formal credit history.

Financial Technology (FinTech) players are pivotal in reshaping how the unserved and underserved at the bottom of the pyramid can access working capital and cash-flow finance.

Digital technology takes advantage of existing cash transactions to provide innovative methods of credit scoring, risk assessment and disbursement. After all, cash is the only factor that can repay a loan; collateral is only the second way out if money cannot be generated.

A good example is India’s ‘Capital Float’, a digital financing platform that provides quick and easy working capital loans for small entrepreneurs to address immediate business requirements. The platform analyses borrower’s cash flow using data from e-commerce payment systems and mobile financial payment systems. The results from the analysis identify creditworthy borrowers. They then carry out an electronic know-your-customer (KYC) authentication, receive the loan offer, confirm acceptance, and sign the loan agreement, all on a mobile app.

Having acknowledged that no single type of loan can meet the needs of every kind of business, Capital Float launched the “business loan for women programme”, specially tailored to the needs of women-owned businesses in India. Under the initiative, women entrepreneurs can apply for collateral-free working capital without any processing fees. The Capital Float platform was launched in 2015 and has already reduced cash-flow challenges of more than 500,000 MSMEs with loan disbursements of $1.2 billion as working capital for these businesses.

The financial footprint made possible through digital payments allows for innovative methods of assessing the creditworthiness of women like Asabe.

They could run service-oriented businesses that have the possibility of maintaining very high margins but lack enough hard assets to offer as collateral.

Cash flow loans are an excellent example of the targeted delivery and development of financial products and services that specifically meet the needs of marginalised women. As innovation marches toward risk-sensitive and highly regulated industries such as financial services,

there must be a balance from the public sector between allowing creative solutions to emerge while simultaneously ensuring consumers and local economies are protected from risk.

The government can help by ensuring that legal and regulatory frameworks are ‘digital-ready’ to support FinTech innovation; reducing administrative obstacles and regulatory complexity, especially around multiple taxations; endorsing the adoption of efficient digitisation solutions, and introducing regulatory sandboxes that allow fintech to test solutions/products in a controlled environment.

We all benefit Investing in women entrepreneurs is a trillion-dollar opportunity. A recent analysis by Boston Consulting Group (BCG) suggests that global GDP could rise from approximately 3 percent to 6 percent, boosting the global economy from $2.5 trillion to $5 trillion.

Investing in women goes beyond social responsibility: there is a business case for financial institutions; it improves the lives of women; and the domino effect of equality will be felt in their countries and beyond, influencing everything from its politics to its economic growth and development.

So, it is no exaggeration to say that women’s entrepreneurship has the power to change the world—and the benefits go far beyond boosting global GDP. Closing the gender gap in financial inclusion and fuelling the growth of women-owned enterprises will spur innovation, unleash new ideas, services, and products into our markets. And ultimately, those forces may redefine the future.

We cannot overcome poverty until men and women have equal rights and opportunities.

Failure to address this gap means any policy initiatives that boost the supply of financial services in Nigeria are more likely to benefit Nigerian men and undermine the CBN’s ability to hit its 95 percent target. Put simply, Financial Inclusion policies are less effective, or may not succeed at all, if the different impact on women and men is not taken into account.

Akpaida is digital financial inclusion professional and founder, Rendra Foundation.

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