Business journal newpaper v5 by BusinessJournalNG

GENCOs, TCN, DISCOs on War Path over Power Losses Ben Onyedika

ollowing the continuous worsening power outages the privatised Generating Power Companies (GENCOs), the Transmission Company of Nigeria (TCN) and the Distribution Power Companies (DISCOs) are

now on each other’s neck over who bears the cost of power losses from evacuation points through the national grid to the distribution network. This is due to dilapidated facilities at both the transmission level and distribution network. At a meeting at the instance

of Eko Disco in Lagos, the power companies could not reach an agreement as the GENCOs insisted that TCN should be held responsible for all the power losses from the generating stations through the national grid to the Discos. However, the TCN argued

that whatever quantity of power is supplied from the generating stations are directed to the Discos, therefore they should pay for it. But the Discos explained that they cannot pay for the power losses from the Gencos through the transmission lines managed by the TCN.

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will only bear the cost of the losses at the distribution network to consumers. Meanwhile, the Minister of Power, Prof. Chinedu Nebo has expressed dissatisfaction over the worsening power supply nationwide. continues on PAGE 2

Monday May 11 - 17, 2015

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According to a source at the meeting, the Gencos claimed they had produced 200MW only for the Discos to receive less than 160MW, about 20 percent less than what the Gencos claimed they generated and evacuated. However, the Discos maintained that they

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First Bank May Sack 2,740 over Branch Downsizing • Reports N64bn Loss in 2014

irst Bank Holdings Plc may sack 2, 740 staff over the planed downsizing of unprofitable branches nationwide. The bank also reported loss of N64 billion in the 2014 financial year. Mr. Bisi Onasanya, Group Managing Director/CEO, First

Bank, said at the bank’s FactsBehind-The-Figures presentation at the Nigerian Stock Exchange (NSE) that the bank will close unviable branches across the country to reduce cost. He assured however that no staff of the bank will lose his or her job in the exercise. But a senior source in the bank told Business Journal that First Bank will shut down about

Savannah Bank: Dead of Alive?

How African Entrepreneurs Can Tap Into Global Market

QUOTE

“We are considering processes across the Group to reduce transaction costs and processing cycles. Realigning and rationalising the workforce in order to enhance overall manpower efficiency and productivity is currently the target of the Group.”

Will 45m Poor Americans Determine 2016 Presidential Race?

“Less than one adult out of four in Africa has access to an account at a formal financial institution.” Ajayi Banga President/CEO, MasterCard

56 non-profit making branches nationwide and off-load an estimated 2,740 staff as part of the bank’s cost-cutting strategies in the face of difficult operating environment caused in part by falling oil prices and currency devaluations. Bello Maccido, Group Chief Executive Officer of FBN Holdings Plc, said the company Continues on PAGE 2

L – R: Mrs. Taba Peterside, General Manager/Head, Listings Sales and Retention, The Nigerian Stock Exchange (NSE); Mr. Haruna Jalo-Waziri, Executive Director, Business Development, NSE; Mallam Bello Maccido, Group CEO, FBN Holdings and Mr. Bisi Onasanya, Group Managing Director/CEO, First Bank at the FBN Holdings Facts Behind the Figures presentation at the NSE

Business Journal May 11 - 17, 2015

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GENCOs, TCN, DISCOs on War... Continued from PAGE 1 At a meeting with the power owners, he advised them to collaborate with each other to ensure that the power situation improves; assuring that the government will give every necessary support to them. He reminded them of the additional generation capacity by the recent commissioning of two National Integrated Power Projects (NIPPs) at Alaoji and Olorunsogo. Nebo said there are plans to commission other NIPP plants upon the completion of the projects. The minister described the DISCOs as the vital link in the service delivery chain. He expressed strong commitment and willingness of the Federal Government to continue to support operations of the Generation and Distribution Companies to actualise the plans to meet the energy needs of customers in both the private and public sectors.

First Bank May Sack...

L-R: Managing Director/Chief Executive Officer, Fidelity Bank Plc. Nnamdi Okonkwo, Chairman, Board of Directors, Fidelity Bank Plc., Chief Christopher Ezeh, Executive Director, Lagos and South West Bank, Ikemuefuna Mbagwu at the signing of the Fidelity Bank Plc N30bn bond in Lagos

OIS-INDORAMA $130m Port Terminal Ready 2016 Attains 72% Completion, Employs 1,500 Amaechi Okonkwo, PH

he $130-million OIS-Indorama Port Terminal at Onne in Rivers State will be commissioned in February 2016 with mechanical completion expected to be attained by December this year. The world-class port complex, a partnership between Indorama Eleme Petrochemicals Limited (IEPL) and its sister company, Indorama Eleme Fertiliser & Chemicals Limited (IEFCL) with OIS is reported to have attained 72% completion as at March 2015. On completion, the port complex is expected to provide transport logistics to the Indorama Fertiliser plant also under construction at the Indorama Petrochemicals Complex in Eleme, near Port Harcourt. The port terminal according officials at Indorama is for exporting of dry bulk Urea fertiliser from Indorama's fertiliser plant as well as serve for import and export of various types of break-bulk and containerised cargo for OIS, the partnering company. It will also play a vital role in transporting Urea from the factory warehouse to the port terminal warehouse while Indorama would provide a fleet of specially designed 40-num-

ber dump trucks for supply At present, there is no infrastructure or facility at Onne port to handle dry bulk Urea fertilizer, so this project is highly needed at the port. Speaking on the importance of the Port Terminal, Managing Director/ CEO of Indorama-Nigeria, Mr. Manish Mundra, said the project, a huge Foreign Direct Investment (FDI) in the maritime sector, would be a major boost to Nigeria's industrialisation process and economic development. "This investment shows our deep commitment in fostering socio-economic prosperity of Nigeria", he said. Mundra stated that the port terminal was designed by reputed international engineering companies and construction is being handled by local companies of repute in collaboration with expatriate engineers and other technical experts. The port terminal comprises marine facility of 320, meters quay to handle vessels ranging from 5,000 dwt (deadweight) to 35,000 dwt and 6.20 hectares of land terminal facility catering to handling and storage of dry bulk urea, break-bulk cargo and containerized cargo. The terminal is self-contained with facilities such as power generation, water, waste water treatment and

disposal and other utilities like fuel storage, water bunkering, firefighting, workshop, administration, amenities and security, etc. Apart from all the above, the terminal also comprises facility for 12,000 TEU (Twenty feet equivalent units) per annum of containerized cargo. Also speaking, Mr. Ashwani K Sood, Project Director, said work on the project was proceeding as scheduled. "We have done about 95% of engineering work, 86% of procurements and 60% of construction. So overall, the port is about 72% completed as at the beginning of March, 2015", Sood stated. "We have also witnessed tremendous community support, Sood said, adding that special skills training for operations of modern equipment such as ship-loaders and portal scrapper-reclaimer will be provided to local staff when the port becomes operational. Operators and stakehders in the maritime and ports sector are excited about this investment that would create a new value chain, facilitate operations in Onne Port, create more employment opportunities, increase revenue for Nigerian Ports Authority (NPA) and other related government agencies and empower host communities.

Emirates Sweeps Four Titles at the Business Traveller Awards

mirates’ innovation, investments in product, and customer service were recognised with an array of accolades at the Business Traveller Middle East 2015 Awards. At the ceremony attended by over 350 industry executives, Emirates was crowned “Best Airline Worldwide.” It was also named “Airline with the Best First Class”, “Airline with the Best Economy Class” and “Airline with the Best Cabin Staff.” Thierry Antinori, Emirates’ Executive Vice President and Chief Commercial Officer, who attended the ceremony said: “We are always in pursuit of excellence when it comes to delivering the Emirates experience, and providing value to our customers.

That is why w e continually invest in developing innovative and high quality products on board, and our cosmopolitan cabin crew put in every effort to deliver exceptional service within a permanently growing network. We are honoured to be recognised for our efforts by Business Traveller Middle East’s discerning readers.” These prestigious accolades are a testament to Emirates’ on-going commitment to excellence and innovation across its different areas of business. During the 2014 business year, Emirates worked hard to deliver a high level of service across its ground and flight operations, even as it continued to expand its fleet and operations.

Gov. Dickson Announces 20% Reduction of Tax for Bayelsa Workers Philip Eke, Yenagoa

he Bayelsa State Government has announced a 20 per cent reduction in the personal income tax of its workers just as it presented an official car to the state chairman of Trade Union Congress (TUC) in fulfilment of an earlier promise. Governor Seriake Dickson described the tax cut as one of the means to appreciate the understanding and contributions of workers in the state to the achievements of his administration. Reassuring the workers of

government's commitment to their welfare, the Governor explained that the new personal income tax regime will be implemented from the month of June, 2015. He however pointed out that the Personal Income Tax Policy (PITA) was not formulated by the state government, stressing that it is a federal legislation that is being implemented by all the states in the federation. The Governor, who expressed gratitude to the workers, attributed the successes recorded by his administration, partly to the sacrifices, understanding and co-operation of workers in the state.

Continued from PAGE 1 lost N64 billion to the increase by the Central Bank of Nigeria(CBN) in Cash Reserve Requirement (CRR) for both public and private sector to 75% and 20% respectively. He said that monetary policy tightening through foreign exchange sales restrictions and closure of Retail Dutch Auction Sales (RDAS) window affected the company's revenue generation capacity. The oil price decline also impacted the company’s earnings, according to Maccido, due to its exposure in the oil and gas sector. FBN Holdings said it experienced “significant revenue loss due to CBN policy changes in tariffs, charges, CRR,” among other policies while “oil price decline was a major impediment and it really impacted on our business and in addressing this, we have put in place a rigorous stress test on credit facility structures for upstream customers to protect against oil price shock,” Maccido said. Despite the challenges, FBN Holdings ended 2014 with gross earnings of N480.6 billion against N396.2 billion recorded in the comparative period of 2013. Profit Before Tax (PBT) grew marginally to N92.9 billion from N91.3 billion in 2013, while Profit After Tax (PAT) also moved up to N82.8 billion compared to N70.6 billion in 2013. “In spite of the challenges in the industry, we still have the greatest number of branches. We have over 700 branches in the country. There would be rationalisation of non-viable branches. It is not also because we are essentially driven by profit. However, it is becoming critical that going forward we can provide banking services without gigantic structures. A lot of our peers have gone down to close some of their non-profitable branches. Technology will be used and we intend to migrate customers in the closed branches to Internet banking. What we are doing is to bring down our cost,” Onasanya stated. He continued: “We are considering processes across the Group to reduce transaction costs and processing cycles. Realigning and rationalising the workforce in order to enhance overall manpower efficiency and productivity is currently the target of the Group.” Responding to Business Journal enquiry on the issue, Mrs. Folake Ani-Mumuney, Group Head, Marketing and Corporate Communication, First Bank, insisted that no staff would be rationalised over the planned closure of non-viable branches of the bank. She described the sack information as erroneous. Looking ahead, Maccido said:“We are cautiously optimistic about the rest of the year, as the country and economy benefits from improving confidence, and remain focused on managing effectively the macroeconomic challenges.

Business Journal May 11 - 17, 2015

Business Events www.businessjournalng.com www.businessjournal.com.ng

L - R: Deputy Managing Director UBA, Apollos Ikpobe; CEO, Airtel Nigeria, Segun Ogunsanya; Prof. Paul Collier; Ambassador, Head of Delegation of European Union (EU) to Nigeria and ECOWAS, Michael Arrion at Businessday CEO Forum in Ikoyi, Lagos.

; L-r: Ebola Survivor, Dr. Ada Igonoh of the First Consultants Medical Center; Chairman, Heirs Holdings, Tony O. Elumelu; and Chief Medical Director, First Consultants Medical Center, Dr. Benjamin Ohiaeri, at the World Economic Forum and World Bank Roundtable on Ebola Crisis held in Lagos.

From L-r ; Human Resource Director, Nigerian Breweries Plc, Mr. Victor Famuyibo ; Managing Director/CEO, Mr Nicolaas Vervelde; sales Director, Mr. Hubert Eze, and Technical Director, Mr. Hendrik Wymenga at the Pre-AGM media briefing of the Company held in Lagos.

L-r:, Head, Environment Health Safety, Oando Plc, Dr. Oyet Gogomary; Chief Sales Officer, Airtel Nigeria, Godfrey Efeurhobo; Chief Operating Officer, Oando Marketing, Mrs. Olaposi Williams; GM Commercial Law, Airtel Nigeria, Babatunde Olaniyan, and Head, Sales, Oando , Babafemi Olabiyi, during the signing of MOU between Airtel and Oando, in Lagos

L-r: Workplace Specialist, Accenture, Ronke Osumah; Consultant, Accenture, Bunmi Taiwo,; CEO/Co-Founder WEConnect, Elizabeth Vazquez; Consultant, Accenture, Tomide Awe and Marketing and Communication, Accenture, Kemi Michael-Jabagun, , at the first WEConnect international/Accenture Exhibition and Matchmaking in Nigeria.

; L-r: Igwe of Mbulu Owo Kingdom, His Royal Highness, Dr. Godwin Arum, presenting the winning prize of N1 million to Mr. Leonardo Stephen, during the MTN Cash Quest prize presentation, held at Enugu. With them is runner-up at the MTN Project Fame Season 6, Immaculate Patience Edochie.

L-r: Director, Sterling Bank Plc, Mrs Egbichi Akinsanya; Executive Director, Abubakar Suleiman; Managing Director/CEO, Yemi Adeola; Chairman Board, Asue Ighodalo, and Company Secretary, Justina Lewa at the 53rd Annual General Meeting of the bank in Lagos.

L-r: Managing Director, MultiChoice Nigeria, John Ugbe; Nollywood Actress, Genevieve Nnaji and Regional Director, AfricaMagic West Africa, Wangi Mba-Uzoukwu, during the launch of AfricaMagic Igbo at DE DOME Event Place at Enugu.

Business Journal May 11 - 17, 2015

Editorial www.businessjournalng.com

The Lingering Fuel Scarcity and Economic Stability

or two weeks now and still running, the nation is under the spell of acute fuel shortages, leading to long queues at filling stations and the attendant transport

hiccups. Initially, there were unconfirmed rumours of price increase on Premium Motor Spirit (PMS) or fuel, leading to unnecessary hoarding of the product by fuel stations with a view to illegally raise the per litre price of the product for maximum gain. Later, it was reported that the Federal Government was indebted to independent petroleum marketers who import the product into the country in the absence of local refining capacity and production. Whatever the arguments or rea-

sons, what is important is that this nation does not need fuel scarcity of any kind or length of days at this moment. Since the beginning of the year, Nigerians and businesses have had to contend with tensions and uncertainties arising from the 2015 general elections which ended recently. Such politically-induced uncertainties effectively affected the national economy in no small measure, at a time of declining oil prices in the international market and the attendant decline in government revenue. At such a time as this, fuel scarcity is the last thing this economy needs. Given the usual negative multiplier effects of fuel scarcity in terms

of high transportation costs, high cost of food, disruption of normal economic and business activities and hardships by ordinary citizens, the current scarcity is completely undesirable and unfortunate. Not too long ago before the elections, the Federal Government in its wisdom reduced the unit pump price of PMS (fuel) from N97 per litre to N87 with the objective of reducing the economic hardship of the cost on Nigerians and businesses. As expected, labour unions and civil society organisations, and indeed, a cross section of Nigerians applauded the positive gesture from the government. Today, the same Nigerians are begging to buy the same fuel at N150 or N120 per litre depending

on their location. Indeed, many are resorting to Black Market purchase at even higher rates simply out of frustration at scarcity of the product and not willing to join the long queues. Going forward, the Federal Government was in error by delaying or refusing to pay the marketers on time. Such delay or refusal energised the marketers to put the brakes on product importation and distribution, leading to the present scarcity. In the absence of local refining capacity, why did the government renege on paying the marketers as it has done over the years? Was it lack of funds, fuel subsidy investigation or dispute between it and the marketers? Having lost so much to the

elections since the beginning of the year, we expected the government to have acted proactively in this matter, rather than waiting for long queues to emerge across the country before making payment to the marketers. Secondly, it is time for the government to seriously address the problem of refineries in Nigeria to reduce dependence on foreign petroleum products. Fuel supply issues would be easier to manage through local production of fuel than importation. It will also checkmate the greed and selfish attitude of the marketers. As theyâ&#x20AC;&#x2122;d say, a stitch in time saves nine. We need that stitch now before the situation deteriorates further.

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Business Journal Newspaper is published weekly by Egelon Communication Company. Suite B2, Glory Shopping Complex, 229, Ikotun-Idimu Road, Council Bus-Stop, Idimu, Lagos. Phone: 08023088874, 07058919138. Email: business.journal@yahoo.com. Publisher/Editor-in-Chief: PRINCE COOKEY.

Publisher/Editor-in-Chief Prince Cookey 08023088874 07058919138 prince.cookey@yahoo.com

PH Bureau Amaechi Okonkwo

Lagos Bureau Abraham Adewole

Head of Marketing/Advert Elvis Ebigwu

Snr. Correspondent Blessing Ikeme

Digital Consultant Bamidele Owotoke.

Abuja Bureau Chris Onwuka

Design Consultant Kelechi Okoro

Kaduna Bureau Haruna Mohammed

Logistics Consultant Godspower Cookey

Aba Bureau Larry Akunne

Secretary/Admin Latifat Adedayo Body of Analysts Haniel Ukpaukure Chris Okeke Ola Gam-Ikon Ademola Akinbola Muideen Ibrahim Ayo Adekunle Board of Editorial Advisers Dr. Justus Uranta Engr. Titi Omo-Ettu Mr. Chike Mokwunye Mr. Chris Uwaje Mr. Gbolahan Olutayo

Business Journal May 11 - 17, 2015

Shelter www.businessjournalng.com

Mortgage Will Boost Local Participation in Property Market, say Experts Blessing Ikeme

orried by the fact that foreign investors are now the major players in the housing sub-sector, real estate professionals have called for a restructuring of the mortgage industry as a way to boost local participation in the property market. The real estate professionals made this call recently at a stakeholders’ forum in Lagos. They are of the view that local players are handicapped by the paucity of funds and that the trend will remain so until the nation can harness the great investment opportunities available in the sector through the provision of an alternative means of financing, apart from the traditional bank loans which have become rather discouraging. Fund Manager, Africa Capital Alliance, Mr. Obi Nwogugu said the current situation whereby people will need to save up money for years before they can invest in real estate, particularly in urban areas, will not augur well for the property market. “If you have mortgages in this country, more people

can afford to buy houses. The fact that on the buyer’s side, you have to save money for 20 years before you can afford to buy a house is a problem on its own,” Nwogugu said. He said housing loans by traditional banks is not the answer but a well-structured and functional mortgage system. “Why can’t

one go to a bank and get a real mortgage that he can pay over 20 years, without paying 25 per cent every year? But this is not working at the moment. Until there is a real mortgage system in Nigeria, things will remain the same.” Proffering a solution, Nwogugu advised the incom-

ing administration to support the National Mortgage Refinance Company, NMRC, to allow banks create mortgages that are more competitive. “It may not be single digit, but at least let it be better than what we have today. So any policy that will expand the pool of mortgage holders will certainly

turn the tide of housing deficit in the country,” he said. Similarly, Mr. Fortune-Ebie, who is the pioneer Managing Director of the Federal Housing Authority, FHA, advised the Buhari administration to make funds available in order to subsidise mortgages as well as making land titles

available to the people. “The most important thing to do to address this alarming housing deficit in Nigeria is that government must make funds available. Whoever is telling government that housing is not subsidised is a liar,” said Ebie. Of importance is also land documentation processes. This, the experts agree, must be streamlined to make it more robust. “Secondly, the question of title to land must be concluded and land made available to people. Also, people who are experts in the built industry should be put in place in the housing sub-sector, and not charlatans. Once Buhari does these things, the housing problem in Nigeria will be solved,” Ebie, who also managed Shelter Afrique, said. Recalling the good old days when government initiated workable schemes to address the housing deficit in the country, Ebie said: “I owned my first house at about the age of 32.” According to Nwogugu, another major issue that has led to the increasing housing deficit in Nigeria is policy somersault by successive administrations. He said such discourages real estate investors from dealing with governments in addressing the huge housing deficit in the country.

Senate to Pass Bill on Environment Before May 29

here are indications that a Bill for an Act to establish the National Agency for the Great Green Wall may be passed by the Senate for presidential assent before President Goodluck Jonathan leaves office on 29 May. Already, the Bill passed the Second Reading at the Senate last week. The bill seeks to establish the National Agency for the Great Green Wall for the implementation of the provisions of the convention on the Great Green Wall programme in Nigeria, management of drought, desertification and afforestation control measures and related matters. Senator Ali Ndume said drought was a frequent problem in the country. He said Nigeria was among

the initiator of the Great Green Wall programme but that the country has not established the Agency and that the president will want to have the law in place before 29 May. “President Goodluck Jonathan would be anxious to sign the bill into law before leaving the office this month,” Ndume said. Leading the debate on the bill, the Senate leader, Victor Ndoma-Egba, said if passed into law it will help safeguard the environment, ensure food security, reduce unemployment and poverty, protect citizens in the affected parts from vagaries of weather, reduce strife and criminality, ensure sustainable livelihood and avert a major catastrophe in the near future. He said desertification affected

an area of about 393 168 square kilometers, which is about 43 percent of the total land area of Nigeria and thus called on all the Senators to support the bill for seconding reading and passage into law. In his remark, the Senate President, David Mark, said anything that affected 43 percent of the total land area of Nigeria was a serious problem. “It is a pity that the bill is coming late but it is an excellent bill wonderful,” Mark said. He urged that when the bill was finally passed into law, its implementation should be taken seriously. The bill has been referred to the Senate Committee on Environment and Agriculture for further legislative action.

Business Journal May 11 - 17, 2015

Shelter

African Retail, Office Property offers Huge Opportunities for Investors

apid urbanisation and growing consumer wealth on the African continent is providing numerous opportunities for investors wanting to gain exposure to retail and office property developments north of South Africa. According to Head, Real Estate Finance, Standard Bank, Gary Garrett, some of the key African countries that are realising opportunities for real estate investment include Nigeria, Ghana, Kenya, Angola, Mozambique, Zambia and Namibia. Foreign investment in the natural resource sectors of these economies is acting as a catalyst for economic development, boosting demand for quality office, retail and residential property space, he said. Garrett says while considerable opportunities exist in Africa, investors must remember that the continent is not a single, homogenous jurisdiction. Investors often make the mistake of thinking of Africa as a uniform landscape whereas it’s critical to identify the countries and sectors that offer the best opportunities and match them with their own expertise. In addition, investors also need to find the right local partners to help them navigate the risks and complexities of doing business on the continent. The demand for quality property assets on the continent is especially evident in countries where natural resource discoveries have recently

been made. This increase in wealth coupled with foreign companies establishing operations is driving this demand. Although commodity prices have dropped, and in particular oil, resulting in economic growth forecasts being revised downwards in many jurisdictions, there is still demand for quality real estate assets due to the enormous undersupply. Rapid urbanisation in response to sustained population growth and economic growth is also boosting consumer spending in these countries, which is further driving demand for quality real estate assets.

Nigeria’s population of approximately 170 million people makes it one of the continent’s premier destinations for property developments. While retail and office property dominate much of the interest in Nigeria’s property sector, it is only a matter of time before interest in the country’s industrial property landscape begins to increase, despite the nation’s well-documented power and transport infrastructure constraints as well as the impact of a lower oil price. Nigeria’s commercial hub of Lagos, which has a population of approximately 21 million, has just 54

000m² of high-end retail space in the form of the Palms and Ikeja shopping malls, while Abuja has a mere 33 388 m² for its almost 3 million people according Standard Bank estimates. Nigeria’s West African counterpart, Ghana, is beset with similar constraints with the capital city of Accra having just 20 000m² of quality retail space for a population of approximately 4 million people with probably another 12 000m² of smaller centres being operational. From a property investment and finance perspective, the major opportunities in Ghana going forward will be in the retail sector. Ghana however faces additional challenges largely related to the regulatory environment. The Bank of Ghana introduced measures in February 2014 to curb the extension of foreign currency loans and also the charging of rent in foreign currency in an attempt to bolster the nation’s currency, the Cedi. Despite reversing these regulations later in 2014, the perceived risk of foreign currency lending remains relatively high. This highlights the fact that investors need to be aware that rapid changes in policy can materially affect the risk environment and their return on investments. The Portuguese speaking countries of Angola and Mozambique are prime examples where local knowledge and expertise are paramount in unlocking the potential that exists in these economies.

The natural gas finds in the North of Mozambique will unlock infrastructure and property development over time. The discoveries are in remote areas where there is little to no infrastructure. That will provide natural demand for office, residential and retail space in outlying areas as well as the capital city of Maputo, where many foreign entities are setting up head offices. Zambia’s copper belt is another region where natural resource investment is driving up demand for quality property, largely due to a lack of supply. The Democratic Republic of Congo is also a country that Standard Bank has its eye on in terms of future opportunities, particularly around the southern city of Lubumbashi. While it’s not a direct focus for the bank right now, it is certainly a potential opportunity going forward. Standard Banks on-the-ground presence in 20 African countries, including South Africa, means it is uniquely positioned to understand the dynamics of doing business across the continent and is able to partner with investors wanting to do business in the region. The bank’s position as Africa’s biggest financial services organisation, as well as its partnership with Industrial and Commercial Bank of China (ICBC) which is a 20% equity holder, enables it to offer a broad range of banking solutions to clients across the continent.

The Modalities for Registering a Property in Lagos

o register a property in Lagos, there are 13 steps involved. Below is a detailed summary of the steps, time and cost involved in registering a property in Lagos. Obtaining the Governor’s Consent Requires the Following Documentation: A: Covering letter with address and telephone numbers; b. Completed Form 1C; c. Certified True Copy (CTC) of title document of assignor; d. Current tax clearance certificates of the assignor and assignee; e. For limited liability companies, the internal revenue certificate of PAYE Directors; f. Four copies of the deed of which consent is sought should be attached; g. Copy of the survey plan, as approved by the Surveyor General Office and a picture of the building; h. Evidence of payment for charting fee, endorsement fee, Form 1C; i. Evidence of payment of land use charge; j. Where the property is covered by a state leasehold or Certificate of Occupancy, evidence of payment of Ground Rent, up to date; k. Where the property is covered by a state Leasehold or Certificate of Occupancy, evidence of payment of Ground Rent, up to date; l. A photograph of the property; m. A copy of the applicant and/or his agent/ legal representative’s identification.

Rental Property Prices in Surulere, Ikeja, Oshodi, Lekki •

2 BEDROOM FLAT; SURULERE, LAGOS (N 400,000)

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2 BEDROOM FLAT; LEKKI, LAGOS (N 2,500,000)

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2 BEDROOM FLAT; KETU, LAGOS (N 500,000)

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3 BEDROOM FLAT; OSHODI, LAGOS (N 500,000)

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SEMI DETACHED 5 BEDROOM DUPLEX WITH BOYS QUARTERS; AMUWO ODOFIN, LAGOS (N 3,000,000)

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4 BEDROOM DUPLEX WITH 1 ROOM BQ; MARYLAND, LAGOS (N 1,700,000)

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MINI FLAT; YABA, LAGOS (N 270,000)

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NEWLY BUILT 6 BEDROOMS DUPLEX; OPEBI, LAGOS (N 6,000,000)

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3 BEDROOM FLAT; OSHODI, LAGOS (N 500,000)

Business Journal May 11 - 17, 2015

Banking www.businessjournalng.com

UK, IMF Partner on Statistics in Africa, Middle East

he International Monetary Fund (IMF) and the United Kingdom’s Department for International Development (DFID) have launched a new project to improve macroeconomic statistics in 44 countries in Africa and the Middle East. DFID will provide £6.2 million (about US$9.3 million) over the next five years to support the project. The Enhanced Data Dissemination Initiative 2 (EDDI2) is the second phase of a DFID-funded statistics project for Africa that has been implemented by the IMF during 2010-15. It achieved many concrete results, helping numerous countries to produce for the first time quarterly national accounts, international investment position statistics and financial soundness indicators; to rebase their national accounts; to expand coverage in monetary statistics; to increase frequency

and accuracy in government finance statistics; to increase data dissemination by publishing national summary data pages and advance release calendars; and to add more countries to the IMF’s General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS). Building on these successes, starting in May 2015, EDDI2 will provide technical assistance and training to national statistical systems in 44 African and Middle Eastern countries on a broad range of macroeconomic statistics covering national accounts and prices, monetary and financial statistics, government finance statistics, external sector statistics and data dissemination. The project will have several innovative features, including a new focus on improving source data, advocating the use of the

Open Data Platform for more efficient data dissemination, and expanding the country coverage to include

more fragile states in Africa and the Middle East. Under the new project, IMF statistics experts will

Fidelity Bank Retail Strategy Nets 471,000 New Customers

idelity Bank Plc has grew its retail customer base by 471,000 in the financial year ended December 31, 2014. The bank's CEO, Nnamdi Okonkwo, who gave this figure at the bank’s AGM, said its consumer loans grew by over 21% and core low cost retail deposit by 18% which he said lowered the average cost of customer deposits. "Our retail banking strategy gathered increased momentum in 2014 with the bank acquiring over 471, 000 new retail customer consumer loans growing by over 21% and core low cost retail deposits by 18% which lowered our average cost of customer deposit," Okonkwo said. At the AGM, shareholders of the bank unanimously approved the 18 kobo per ordinary share of 50 kobo dividend payable to shareholders. With this, Fidelity Bank has, for 10 years, consistently paid out dividends to its shareholders. Okonkwo noted that the 2014 performance is a positive reinforcement of the medium-term strategic objectives which are anchored on the following pillars: improving the efficiency of the balance sheet; growing the retail and SME businesses; focusing on niche

corporate banking segments; increased migration of customers to electronic channels and improving the customer experience across all service channels. He explained that the bank has a solid platform for growth, underpinned by strong customer loyalty and significant investments in physical and electronic distribution channels. The bank's boss said that operational efficiency improved as the bank leveraged on alternative electronic channels to reduce the cost to serve customers, adding that the efficiency gains saw operating expenses, excluding regulatory costs, grow by just 3 percent in 2014 which was significantly below the inflation rate. On sustaining efficiency and cost effective service quality, Okonkwo explained that the bank communicated and implemented a service programme centered on building a superior customer service franchise on the back of product innovation and service turnaround time early in 2014. He stressed that the programme was designed to improve the quality of services by speeding up processes and reducing response time to customer enquiries/complaints.

To achieve the objective, the Fidelity Bank Chief said the bank flattened its sales structure to improve its speed to market, deepened customer interactions and centralised some of the processes previously performed in branches which availed branch staff more time for attending to customer needs and enquiries. “We have also restructured our sales force into a flatter and more nimble organisation which is closer to the customers and aggressive enough to drive our market share aspirations in order to achieve our corporate strategy”. On cost optimisation, Okonkwo said the bank is centralising its processing functions which will reduce cost to serve and improve uniformity of customer service. He revealed that management’s resolve to support the productive sector of the economy and grow a new generation of passionate entrepreneurs was further accentuated with the creation of the Fidelity Managed SME team that provides financing, business advisory services, capacity development and shared technology platform to SMEs. “In recognition of our leadership role in the MSME bank-

ing space, we were invited to partner with the Federal Government and its agencies on various SME schemes. The Bank of Industry Limited (BOI) selected our bank as one of the 10 SME friendly banks it is partnering with to finance SMEs. The Central Bank of Nigeria also appointed our bank as one of the deposit money banks to serve on its working committee on the creation of a Mobile Collateral Registry for SMEs in Nigeria.” Earlier the Chairman of the bank, Chief Christopher Ezeh noted the exceptional performance of the Bank in spite of the economic whirlwind caused by the drop in global oil prices. “As you have noticed, developments in the international markets presented some challenges to both the real sector and the financial sector of our economy”, adding that “it is, however, important to state that your bank’s performance was within expectations and that its growth potentials are promising”. He thanked the Shareholders for their unflinching loyalty and support and continued business patronage and assured them of the safety of their investment.

undertake technical missions to individual countries and lead regional workshops and seminars, working with

regional organizations and agencies to promote an exchange of experiences and lessons learned within the regions. Close coordination with the IMF Regional Technical Assistance Centers in Africa and the Middle East (AFRITACs and METAC) is built into the design of the project. “DFID has been a very reliable partner to the IMF in statistical capacity building and shares our vision on improving macroeconomic statistics,” said Louis Marc Ducharme, Director of the IMF Statistics Department. “I am very pleased with this partnership and look forward to measurable results in our targeted countries. The expected outcome of the project is that improved quality and timeliness of macroeconomic statistics will support more effective economic policies and poverty reduction strategies in Africa and the Middle East.”

Wema Bank Reaps Profitability, Promises Better Performance

ema Bank Plc shareholders may finally have cause to heave a sigh of relief as the bank bounces back to profitability. At a bell closing ceremony by the bank at the Nigerian Stock Exchange (NSE), the Chief Executive Officer, Mr. Segun Oloketuyi, assured shareholders that having turned the corner, the bank will soon put smiles on their faces for their loyalty. The bell closing ceremony was part of activities to celebrate the 70th anniversary of the bank, which was listed on the NSE in 1991. Wema Bank recently released its Q1 2015 results, which showed a profit before tax in excess of N615 million. The bank ended 2012 with a loss of N4.9 billion due to additional impairment charges on bad loans, among others. However, it returned to profitability in the 2013 financial year and has continued to grow its profit quarterly since then. "We are out of the woods. We can now look up to better days to come and for shareholders who had stayed with us through thick and thin, the best is yet to come," Oloketuyi said. He noted that the “bank

went through a turbulent period in its history but the bank was able to weather it out.” Speaking on the first quarter result of the bank, the CEO said: "We are on course with our projection, given the political environment that 2015 will be; this was a major consideration in coming up with our numbers. We did over N615 million, which was in line with our target. For the rest of the year we expect business to go up and we will take advantage of that to meet our expectation for the year." Oloketuyi revealed that Wema Bank, which was listed on the Exchange about 24 years ago, had benefited immensely from the listing as it was able to raise funds for its operations through public offer and right issues. "In four years, the bank had embarked on two fund raising offer and got all the support we needed from NSE. It is a journey full of experience, the good times and odd times, which had equipped the bank to move forward and compete in the industry," he said. According to him, Wema Bank is set to complete a $100 million Tier II capital raising exercise in the second quarter of this year to grow its capital base.

Business Journal May 11 - 17, 2015

Banking

Fidelity Bank raises N30bn Bond to Finance SMEs

idelity Bank Plc has signed a N30 billion 16.48% fixed rate bond due in 2022. At the signing ceremony, Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nnamdi Okonkwo said that the initiative is part of the Bank’s efforts at deepening the Small and Medium Enterprises (SMEs) sector which arguably is the engine room of the economy. The ceremony had the full complement of the Board, Planet Capital Limited, Lead Issuing House/Underwriters, represen-

tatives from the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), Registrars and Stock brokers. Fidelity Bank Plc began operations in 1988 as Fidelity Union Merchant Bank Limited. By 1990, it had distinguished itself as the fastest growing merchant bank in the country. However, to leverage the emerging opportunities in the commercial and consumer end of financial services in Nigeria, in 1999, it converted to commercial banking and changed its name to Fidelity Bank Plc. It be-

came a universal bank in February 2001, with a license to offer the entire spectrum of commercial, consumer, corporate and investment banking services. Fidelity Bank is today ranked amongst the top 10 in the Nigerian banking industry, with presence in the major cities and commercial centres of Nigeria. Over the years, the bank has been reputed for integrity and professionalism. It is also respected for the quality and stability of its management. Fidelity staff are also respected in the Nigerian bank-

ing industry for the quality of training they receive on the job, as well as in good business schools both in Nigeria and Overseas. The Management is particular about the quality of people that join the system. To qualify as a member of Team Fidelity, a candidate is expected to possess three vital statistics, with the acronym TAC: • Talent (an innate mental aptitude) • Ambition (a desire to succeed) and

• Character (a total quality of integrity which will guide the talent and ambition to productive ends). The Management is focused on building and maintaining a virile and well-respected brand that caters to the needs of its growing corporate, commercial and consumer banking clientele. For this purpose, the bank is leveraging its pedigree in investment banking (Fidelity was a merchant bank for 11years) and its structures and service offerings for a retail

populace. Fidelity Bank also enjoys the respect and partnership of a network of off-shore institutions with which it has correspondent banking, confirmation lines, credit and other relationships. These include ANZ London, Afr-eximbank, Cairo, Egypt, ABSA South Africa, Commerce Bank, Frankfurt, Citibank, N.A. London and New York, FBN Bank, UK Ltd, SCB, London, HSBC, US Ex-im Bank, USAID, etc.

IFC, AfDB Seek to Boost Private Sector in Africa

nhancing partnerships with a view to boosting private sector as the driving force for sustainable and inclusive growth in Africa is one of the main priorities for the African Development Bank’s Private Sector Department (OPSD) and the International Finance Corporation (IFC). For this reason, the African Development Bank hosted a high-level delegation from the IFC for two days of meetings on May 6 and 7, 2015 in Abidjan, to deepen relationships between the two institutions, and to develop initiatives to increase private sector investments in the region. The ultimate goal: to use investment to change lives in Africa.

Opened by AfDB Vice-President Solomon Asamoah, the meeting offered the opportunity to assess the experiences and lessons learned over the past few years of private sector financing to drive better results on the ground. The meeting also examined how the two institutions can better collaborate to bolster Africa’s development by enabling sustainable private investment in a continent, which according to AfDB Private Sector Director Kodeidja Diallo, “is characterized by large and small projects funding gaps and challenges. “Africa is a huge market and we need to invest to change lives,” she said, echoing Vice-President Asamoah, Vice-President, Operations, in charge of Infrastructure, Pri-

vate Sector and Regional Integration. The meeting particularly seeks how to increase the success factors for operations in fragile states, adequacy of business model for SME financing and advisory services. IFC Directors for Western and Central Africa, Saran Kebet-Koulibaly, and for East and Southern Africa, Cheikh O. Seydi, both of whom headed the delegation, expressed gratitude to the Bank for hosting the meeting, saying that it provided a golden opportunity to revamp the cooperation. “We believe in our partnership with the AfDB and the benefit of it is to sit down and take the partnership to the next level,” Seydi underscored. For his part, Asamoah em-

L – R (WEMA Bank 70th) shows Managing Director/CEO, WEMA BANK Plc, Mr. Segun Oloketuyi and Executive Director, Market Operations and Technology, NSE, Mr. Ade Bajomo at the Closing Gong Ceremony in commemoration of WEMA 70thAnniversary at The NSE in Lagos.

African Development Bank’s Private Sector Department (OPSD) and the International Finance Corporation (IFC). phasised the benefits of better leveraging of the resources and

expertise of each institution for the benefit of Africa. “It is

definitely a case of 1+1 potentially equalling 3,” he said.

L-R: Managing Director/Chief Executive Officer, Fidelity Bank Plc., Nnamdi Okonkwo, Chairman, Board of Directors, Fidelity Bank Plc., Chief Christopher Ezeh and Company Secretary, Ezinwa Unuigboje at the Bank's 27th AGM in Lagos

Business Journal May 11 - 17, 2015

Insurance Pension www.businessjournalng.com

African Risk Capacity - a Game-Changer for Africa?

aving lived and worked in Asia and Africa, this is not just very close to my heart, it is also one of the goals I have set myself as Chairman of Swiss Re’s Global Partnerships. A few minutes after signing up for Zero Hunger, I joined a panel launching the African Risk Capacity (ARC), a specialised agency of the African Union to set up insurance for Sovereign Disaster Risk Solutions, focusing on the cost of drought in Africa. Africa is a continent which, perhaps more than any other part of the world, is suffering from the impact of global warming. By 2020, it is forecast that between 75 and 250 million people in Africa

will be exposed to increased water stress due to climate change. Over the same period in some African countries, yields from rain-fed agriculture could be reduced by up to 50%. Concurrently, the population is projected to rise by 25%. In many African countries, these factors are likely to severely compromise agricultural production, including access to food. It goes without saying that this threat will adversely affect food security and exacerbate malnutrition further. I believe the ARC could turn the tables on this bleak scenario, and become a real game-changer for Africa. And this is not just because I work with risk management strategies for a living.

Sovereign risk management provides several African nations with a means to pool their risks and resources, and so channel funds to where they are needed, when they are needed. This approach will help ease pressure on government funds in the case of a catastrophic event, and at the same time support investor confidence in the countries subscribing to ARC. These days, food security is treated very much as a global concern. But the truth is, the issue of food security is exceedingly localised. So what we need to do is help every farmer stay on the farm and continue to make a living and, over time, build a business to create the first seeds of wealth. That’s why micro-insurance pro-

Martyn Parker grammes, such as R4 (The Rural Resilience) Pilot that Swiss Re is partnering in Ethiopia and Senegal, or Kilimo Salama in Kenya, are real life lines. But we also need to help governments help their people and secure the economy when disaster strikes. This is where sovereign risk pools – like ARC – can make a difference. By establishing an effective “top down – bottom up” strategy to enable food security, we also contribute to supporting real economic growth in Africa. It’s the combination of sovereign risk pools and effective micro-insurance programmes for farmers that will drive this development. Besides ARC, another important partnership, catalysed in June 2011,

is Grow Africa. This is a regional partnership co-convened by the African Union, the New Partnership for Africa’s Development (NEPAD) and the World Economic Forum, to accelerate investments for sustainable growth in African agriculture. So far, Grow Africa has mobilised over US $5 billion in investment commitments in nine countries, executed in alignment with national plans, and building partnerships around shared goals and commitments. Ultimately it’s all about collaboration, about working in partnership - across regions, countries and continents - to ensure we can build an equitable, sustainable future for us all on the road to a 9 billion world population.

Economic Growth, Strong Competition Driving Global Insurance Market in 2015

n 2015, the global insurance market will benefit from an improved economic climate in industrialised countries. However, strong competition in property-casualty insurance and the continuing low-interest-rate environment with its effects on life insurance are suppressing expected premium growth, even if the low interest rates there particularly affect income. This year, nominal premium growth is expected to be 3.2% (3.0% when adjusted for inflation), which is approximately the same as that forecast for the global economy in Munich Re’s current Insurance Market Outlook.

Next year, nominal growth is likely to be 4.3% and correspond roughly with the level of 2015 when adjusted for inflation (3.0%). Competition is on the increase for property-casualty business in industrialised countries in particular, whereas this year and next year primary insurance premiums in emerging markets are likely to grow by just under 7.5% on average (6.5% adjusted for inflation). In life insurance, premiums in industrialised countries are only expected to grow by around 3% (just over 2% when adjusted for inflation) by 2016. Emerging markets will also remain the growth engine for global life insurance, even if the era of

double-digit growth rates looks to be drawing to a close. “The global economic environment will improve this and next year, even if growth expectations in emerging markets weaken”, commented Michael Menhart, Munich Re’s Chief Economist. “In industrialised countries in particular, competition and the low-interest-rate environment are hitting earnings and profits in the insurance market. Despite a slight weakening, growth prospects for the insurance industry in the emerging markets of Asia, South America and Africa remain good.” Long term up until 2025, growth in

property-casualty primary insurance will remain slightly below that of the economy overall. Premiums in life insurance may grow more strongly than anticipated because there is a high demand for old-age provision in ageing societies, and because increasing prosperity is the driving force behind life insurance business in emerging markets. In the period up to 2025, 41% of absolute premium growth in property-casualty insurance will come from emerging markets, far more than previously. In life insurance, this figure will be even higher at 44%. In 2025, the largest primary insurance market will still be the USA, followed by China, which will oust Japan and the

United Kingdom to third and fourth places in the ranking of the largest insurance markets. “Transferring a higher share of risks to insurers helps people and makes economic sense. The world is still significantly underinsured”, said Nikolaus von Bomhard, CEO of Munich Re. “The spectrum of underinsurance ranges from insufficiently covered liability risks in industry to uninsured natural catastrophe losses in emerging markets. For broadly diversified international insurance groups in particular, the global insurance market thus offers great potential for profitable growth.”

Business Journal May 11 - 17, 2015

Insurance Pension

Royal Exchange Prudential Unveils 2018 Market Leadership Strategy

oyal Exchange Prudential Life Assurance (REPLA) has been urged to focus on customer service excellence, among other major initiatives, to drive its quest for market leadership and enhance the company’s status as a dominant player in the life insurance industry in the next three years. Speaking at a national retreat for management staff of the company, the Group Managing Director of Royal Exchange Plc, Mr. Chike Mokwunye, encouraged staff of Royal Exchange Prudential Life Assurance, especially those in customer-fac-

ing departments, to make service excellence their guiding principle and watchword in their interactions and dealings with clients of the company. According to Mokwunye, “the customer is at the heart and soul of every organisation’s growth and success and it is very important to keep them satisfied if one wants to remain in operation. If the customer is treated well, he/she stays with you, but if they receive shabby and unsatisfactory treatment, they (customers) will take their business elsewhere.” “The future of insurance in Nigeria is the life business, which has not been fully tapped into, and for Royal

Exchange Prudential to seek market leadership, an effective and efficient policy of customer service, loyalty and retention must be in place in the organization,” Mokwunye added. In his remarks, Mr. Wale Banmore, Managing Director of the company said in addition to service excellence, his company’s focus is also on the deployment of a robust retail marketing strategy to take insurance to the grassroots, as well as training/upgrading of its marketing personnel, in line with current realities. “The attainment of these goals, amongst others in the current financial year, will impact positively on the

fortunes of the company, (profitability), improve service delivery to our clientele and boost our premium income,” Banmore added. He said further: “Management believes strongly in the Royal Exchange brand and its people, it’s most important resource, are more than capable of delivering outstanding service to existing and potential clients, nationwide.” Banmore commended all staff of Royal Exchange Prudential, for their drive and resourcefulness, which has resulted in ‘winning ways’ for the company. He further challenged them to “work even harder in the

years ahead, in order to achieve our objective of becoming a world-class company by 2016.” Royal Exchange Prudential Life Assurance Company is a wholly owned subsidiary of Royal Exchange Plc, licensed by the National Insurance Commission (NAICOM) to offer the full range of life and endowment insurance products. With years of experience in the Nigerian insurance market, Royal Exchange Prudential Life Assurance has an enviable reputation for reliability, integrity, professionalism, technical competence and financial strength.

Royal Exchange Prudential Life Plc Annual Retreat Royal Exchange Prudential Life Plc, a subsidiary of Royal Exchange Plc, recently held its 2015 Annual Retreat with the aim of delivering superior service to its clientele in Lagos. Below are some pictures from the event: L-R: Mr. Chike Mokwunye, GMD, Royal Exchange Plc, Mr. Olawale Banmore, MD, Royal Exchange Prudential Life & Mr. Francis Okoli, AGM/Head, Finance, Royal Exchange Prudential Life during the company’s annual retreat held in Lagos recently.

Group picture of staff and facilitators at Royal Exchange Prudential Life Plc’s annual retreat.

L-R: Mr. Adekunle Kassim, AGM/Head, Marketing, Royal Exchange Prudential Life, Mr. Donald Nosiri, Group Head, Human Resources, Royal Exchange Plc, Mr. Olawale Banmore, MD, Royal Exchange Prudential Life, Mr. Chike Mokwunye, GMD, Royal Exchange Plc, Mr. Nelson Akerele, Group Head, Retail Operations, Royal Exchange Plc and Mr. Francis Okoli, AGM/Head, Finance, Royal Exchange Prudential, at the company’s annual retreat held in Lagos.

Business Journal May 11 - 17, 2015

Energy

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World Bank Approves $200m for West African Electricity Transmission Blessing Ikeme

he World Bank's Board of Directors has approved a $200 million loan to facilitate a West African regional power transmission network that will stretch across Gambia, Guinea, Guinea-Bissau and Senegal. The loan will fund the construction of transmission lines for the OMVG Interconnection Project that will run across the four countries as well as ground wires equipped with fibre-optic cables to improve public communications.

According to the World Bank, support of the OMVG Interconnection Project will help countries in West Africa to transition from using existing expensive thermal power generation to more sustainable and cost-efficient resources such as hydropower and gas. The bank said gas reserves situated along the coast from Côte d’Ivoire to Nigeria and in Mauritania can be converted into power. Colin Bruce, Regional Director of Integration for Africa at the World Bank, stated: “Regional power trade is critical in West Africa. By grouping together the energy demands of the four countries, the OMVG Intercon-

nection Project transmission lines will enable larger and more efficient generation of electricity, which is essential for business development, job creation, income generation and international competitiveness.” The OMVG Interconnection Project was also described as the much needed backbone for the West African Power Pool’s energy infrastructure. In addition to the World Bank’s International Development Association, which assists the world’s poorest countries with grants for projects that will develop the economic growth of that particular country, the project will be financed by: The

EKO DISCO Plans $250m upgrade for Better Services

ko Distribution Company is set to upgrade its distribution network facilities with a whopping sum of $250 million (N50 billion). According to the company this is in preparation to the expected increased power supply from its embedded power generation in which about 25 private companies are taking part. According to Godwin Idemudia, Head, Corporate Communication, the 25 companies shortlisted for the embedded power generation project for Eko Disco is to enable the distribution company up its power supply from the present 300MW to about 500MW. He said that Eko Disco receive about less than 300MW from the national grid and this a far cry from the 700MW it needed to meet up their customer demand. “We are in a serious short supply of energy but we are doing everything possible to meet up demands from our customers. Of course without power supply will be out of business” he said. His words, "We are expected to distributed about 11 percent of the generated power to our consumers but we receive less than 260MW." Faced with this challenge, the chief image maker of the company, said Eko

disco resolved to engage the 25 companies which would provide about 200mw of power while it harnesses another 100mw from the Unit Six of Egbin Thermal/Gas station located at Ikorodu, Lagos State. Idemudia, who revealed that the embeded power supply programme of the comapny would commence before the end of the year 2015, also informed that the Eko Disco has concluded an arrangemnt to import about 360,000 prepaid metres and 40 transformers as a part of the upgrading first phase of the power distribution system the company. On the metering and billing system of the company, he said that, the company evolved a system of metering which is second to non in the country. This, he revealed, involves a system of provision of prepaid metres known as Credit Advance Payment Metering Initiative(CAPMI) which gives the consumers the room to advance loans to the Disco by making purchases of prepaid metres at prices ranging from N39,000 for a single phase metre to N69,000 for three phase metre. The spokesman of the company, who said that this attracts no processing fee, added that it takes the Disco about 45 days to commence the loan

repayment. "The metre by this status is free, since the toatl amount paid the cutomer is paid in full through the billing with an interest," he said. Speaking further on the billing sysytem of the company, he said stressed that it has commenced the enumeration of the customers who are issued with estimated bills in order to eliminate the billing pattern which has caused bad blood between the company and most of its power consumers. Idemudia, also informed that to cub power theft which is rampant at the company's network, it has commenced the installation of monitoring metres on transformers across its catchment area, said that the metres would assists the company in trailing and tracing power thieves to their domain. He pointed out that the $250 million is for the rehabilitaion of all its equipment engaged in power distribution, for the next four years and called on the consumers to exercise patience with the company, since it has started doing everything to address all its challenges arising from power generation.

Nigerian Homes to Benefit from Total Solar Solution

n a bid to provide solutions for the short supply of electricity power to Nigerian homes Total Nigeria Plc has come out with a solar power alternatives. The solar innovation according to Total is to be implemented in phases and in a pilot scales nationwide. The innovation, according to the company, is in line with its commitment to explore alternative energy solutions in a bid to bring respite to homes and help the nation solve the electricity supply crises. Managing Director, Total Nigeria Plc, Alexis Vovk, said recently that with the global climate change and increasing carbon emission becoming one of the most serious threats facing humanity, the company saw the need for alternative energy technologies and solutions. "As part of the company’s efforts to lead the campaign for a greener

tomorrow, we have taken bold steps to venture into a more environmental friendly energy solutions," he said. Vovk decried the huge gap in electricity supply and demand in the country, making reference to the International Energy Agency’s (IEA) Africa Energy Outlook, which stated that about 93 million out of Nigeria’s 170 million population (55 per cent of the population), lack access to electricity. He also noted that Nigeria’s current electricity generation of 5,500MW (according to the Minister of Power) is not sufficient to meet the demand of the entire country, which is estimated at 200,000 Mega Watts (MW); the result of which is resort to the use of costly alternative sources of energy that are fossil fuel based and which contribute to the already high carbon emission level in Nigeria.

“The level of CO2 emission from gaseous fuel consumption in Nigeria as at 2011 was estimated to be at 23.58M MT (World Development Indicators). Hence, the need for development of alternative energy sources with lower carbon footprint cannot be over emphasized,” he said. Vovk re-emphasised that energy is essential formational development, stating that no developing country can achieve economic sustainability without adequate energy supplies to meet her global need. “Today, I am happy to announce that Total Nigeria is introducing different scopes of solar energy solutions to the Nigerian market, for domestic, industrial and commercial use. This is with the aim of improving energy efficiency, reducing carbon dioxide (CO2) emissions and making energy available to all.

French Development Agency; The African Development Bank; The Islamic Development Bank; The West African Development Bank; The European Investment Bank; The Kuwait Fund; The German Government (KfW). The four West African states will provide approximately $16 million to service the loan interest during the construction phase, with the total project valued at $711 million. Pedro Sanchez, project task team leader at the World Bank, claims that increasing power trade in West Africa will help strengthen political and economic integration and promote increased regional stability, local media reported.

Sanchez said: “The OMVG interconnection is potentially transformational and economically significant by helping new generation capacity to come on-line.” He added: “New high-speed broadband connectivity to the four countries provided by the fibre optic cable included in the interconnection will bring new communication tools to households, businesses, and institutions throughout the region, helping to boost job opportunities, reduce poverty and improve the quality of life for millions of people in West Africa.”

IDC Reveals Worldwide Mining Predictions for 2015

he mining sector is experiencing a period of great change. Drivers across economic, social, technology, environment, and business are resulting in an unapologetic focus on increasing productivity and efficiency. Global mining companies are re-optimising their businesses for this new environment of tight cost management rather than one of production at almost any cost. Looking forward priorities will be on creating transparency and agility across mining operations – third platform investments across mobility, cloud, analytics/big data and social will be critical, as well as the innovation accelerators relevant to mining – IoT, 3D printing and next generation security. Mining organisations will need to manage their increasing input costs and productivity challenges by finding new ways of solving age old problems; leadership and change management will be a critically important element of success.IDC Energy Insights hosted the IDC FutureScape: Worldwide Mining 2015 Predictions Web conference, which highlighted predictions based on IDC's FutureScape methodology. The predictions from the IDC FutureScape for Mining are: 1. By 2016, 30% of Mining Companies Will Look to Streamline Corporate Operations through Driving Workplace Efficiencies and Outsourcing Noncore Functions. 2. Mining Companies Will Look for Efficiencies to Ensure Maximum Value From IT. 40% of Mining Organizations Will Have a Program in Place

to Review Corporate IT Investments by 2017. 3. In Order to Drive Change, Innovation, and Value Creation, 50% of Large Miners Will Set Up a Cross-Functional IT Operations/LOB Team to Focus on 3rd Platform Technologies by 2016. 4. By 2016, 100% of large mining organizations will measure the impact of IT failure on their operations and have a direct overall equipment effectiveness (OEE) metric on IT. 5. Driven by the Desire for Consolidation, Efficiencies and Costs Savings, by 2016 50% of Mining Companies Will Have Cloud Investments and a Road Map to Extend cloud workloads. 6. By 2016, 25% of Mining Companies Will Have Analytics in Place, Building the Case on Predictive Analytics and Optimization in Maintenance, Production, and Asset Utilization. 7. By 2016, 30% of Mining Organizations Will Have a Consistent Data Strategy in Place to Improve Their Data Accuracy, Collection and Management and Integration Approaches. 8. By 2017, 20% of mining companies globally will have begun to put in place strategies that will include new automation and control investments. 9. By 2016, driven by the requirement to achieve operational costs savings, 20% of miners will make new investments focusing on delivering maintenance excellence. 10. Spending on Connectivity-Related Investments Will Be a Focus Area in 2015 Increasing by 20% from 2014 to 2016, But Miners Will Continue to Struggle To Find the Right Balance

Business Journal May 11 - 17, 2015

Energy

Clean-energy innovation essential to meeting climate goals With 2-degree target adrift, IEA report calls for tripling public spending on low-carbon technology R&D

concerted push for clean-energy innovation is the only way the world can meet its climate goals, the International Energy Agency said on Monday as it released its flagship energy technology report. The report, Energy Technology Perspectives 2015 (ETP 2015), shows that despite a few recent success stories, clean-energy progress is falling well short of the levels needed to limit the global increase in temperatures to no more than 2 degrees C. Moreover, it will be challenging for the world to meet its climate goals solely through the UN negotiation process that is expected to yield an agreement this December in Paris. That leaves the development and deployment of new, ground-breaking energy technologies as key to mobilising climate action, and the report urges policymakers to step up efforts to support them. "The stakes are high for the energy sector, but it is also no stranger to profound technological change. An incredible chain of innovations in the energy sector has been at the vanguard of social and economic transformation for over a century, and it is exciting to see the progress being made by solar panels and fuel economy improvements for

passenger cars today, to name but two," said IEA Executive Director Maria van der Hoeven. "But we cannot be complacent," she continued. "We are setting ourselves environmental and energy access targets that rely on better technologies. Today’s annual government spending on energy research and development is estimated to be USD 17 billion. Tripling this level, as we recommend, requires governments and the private sector to work closely together and shift their focus to low-carbon technologies." ETP 2015 provides a comprehensive analysis of long-term trends in the energy sector, centred on the technologies and the level of deployment needed for a more environmentally sustainable, secure, and affordable energy system. Recent success stories, such as the rapid growth of solar photovoltaics (solar PV) and last year's inauguration of the world’s first large-scale power station equipped with carbon capture and sequestration (CCS) technology, clearly indicate that there is significant and untapped potential for accelerating research and development in clean technologies. Yet research and development alone are insufficient for moving new technologies from

ideas to commercial products. Governments have a key role to play in creating the initial market opportunities that send a signal to innovators and drive investment. One success story involves public support for renewable energy technologies: while it has

not always been efficiently targeted, it has transformed the market outlook for wind and solar to the extent that they are now the lowest-cost source of power in a number of regions. "This result, unthinkable only a decade or so ago, is

the power of innovation," said Maria van der Hoeven. "Given our current climate realities, more of that power must be unleashed on the world." Like all IEA publications, ETP 2015 does not make long-term forecasts. Instead, it is built around economic modelling scenarios – each of which shows what mix of energy technologies would need to be deployed to obtain a specific climate outcome. The main scenario of ETP 2015 -- the 2-Degree Scenario, or 2DS – illustrates a transformed global energy system in which cumulative carbon emissions from fossil fuels are reduced by 40 percent relative to the "business-as-usual" scenario, or 6DS. ETP 2015 analysis shows that the 2DS does not just allow global climate goals to be met but also enhances energy security. Best of all, it makes economic sense: for every dollar invested in the clean-energy technologies that drive the 2DS, nearly three dollars in fuel costs are avoided by 2050. ETP 2015 includes the annual Tracking Clean Energy Progress report, which for the first time looks at progress in storage and hydrogen technology. ETP 2015 analysis says that fostering innovation of low-carbon products and processes in industry is essential

to meeting global decarbonisation goals. The report demonstrates the opportunities and challenges across the entire innovation chain of various sectors for global industrial actors. In the 2DS, almost 30 percent of direct industrial CO2emissions reductions by 2050 hinge on processes that are in development or demonstration today. Finally, the report says that building and maintaining strong innovation capacity in emerging economies will be key to successful deployment of sustainable energy technologies where they may have the largest impacts. Domestic innovation of low-carbon technologies in emerging economies is increasing, with some countries – especially China – closing the gap in key areas. Maria van der Hoeven stressed that for obvious reasons, ETP 2015 can only model existing technologies. But she noted that the right support to innovation coupled with effective public-private partnerships can provide the energy technology breakthroughs that could amplify or hasten the low-carbon transition. "The shale gas and shale oil boom of the last few years was virtually unthinkable at the dawn of this century," she said. "If we only stick to the beaten path of today, we will miss the game-changers of tomorrow.

SHELL Declares Force Majeur oon Forcados Crude Exports

hell has declared force majeure on exports of Nigeria's Forcados crude oil stream said following "a series of leaks" in the Trans Forcados pipeline that brings the oil to the export terminal. The pipeline itself is operated by the Nigerian Petroleum Development Company (NPDC). Several cargoes of Forcados for the month of May loading were still on offer, with around 189,000 barrels per day (bpd) scheduled for export in six cargoes. The June export programme, with a total of 158,000 bpd, had not yet started trading, sources said. An overhang of light sweet crudes in the Atlantic Basin has depressed differentials to dated Brent and limited the impact of recent supply disruptions on some West African crude oil grades. According to an industry source, the leaks on the pipelines are not unconnected

to activitities of vandals and oil theft in the Niger Delta which have become endemic. According to Shell in spite of the various efforts by the Joint Task Force in the Niger Delta code-named, Operation Pulo Shield, to stem crude oil theft and pipeline vandalism in the delta, oil companies operating in the blighted region are still operating under grave danger. The oil industry is not only troubled by the activities of thieves and vandals, but also have to contend with activities of armed criminal gangs, who are always on the prowl to snatch oil workers with a view to demanding ransom from their employers. This is grim reality in the region where construction workers on infrastructural development that are of immense benefit to the people who, over the years, have been yearning for development are also not spared by the heavily armed criminals.

The sad turn of event in the delta is responsible for the deployment of armed soldiers to construction sites and its attendant increase in costs for the companies. The Vice President, Nigeria & Gabon, Shell Upstream International, Mr. Markus Droll, aptly captured the scenario at a recent forum lamenting that oil and gas industry personnel are working hard and faced with considerable risks in the course of operations and continued development of the country. He lamented that the industry over the years has learned and adapted well to security threats though at great costs. His words: “Nigerian oil and gas industry personnel are working hard, and at the same time managing considerable risks, in order to play their part in the continued development of this country. As an industry, we must ensure better security. This remains a concern for many of us on a daily basis.

Over the years, the industry has learned and adapted well to security threats, but we have done so at great costs.“ This is not sustainable, as both our development and operating costs are higher than in many other operating environments globally, due to security threats. “Ultimately, it means that available funds for the industry don’t stretch as far as they would, if we had a safer operating environment. We all want a more lawful environment because such an environment fosters reduced cost and more investment. And in the end, more investment will contribute to a more lawful environment. It’s a vicious circle.” On crude oil theft and pipeline sabotage, he said: “SPDC is taking a range of actions to counter them but our 2014 production was again severely affected by the direct impact of thieves placing illegal oil tapping connections on oil

infrastructure. We routinely replace damaged pipelines and repair theft points during the year. This is a problem unique to Nigeria, and no other operating environment even comes close.” He said removing such connections often requires production systems to be shut down. So there is a compound effect between what is being stolen and what simply can’t be produced due to facility outages. “Oil theft remains a complex issue that will require sustained, multi-stakeholder measures on a number of fronts to arrest, and ultimately reverse. I have always been of the view that together as an industry with support from government, we can succeed in turning this problem around.” While stressing the need for better security for workers in the oil and gas industry, he said, “A considerable part of our operations are under strict security limitations.

“We still need a more effective counter-strategy against oil theft and sabotage. While we have directed even more resources to try to counter this menace, it has become a bigger problem compared to a year ago. The methods employed are more brazen than ever. “We still need better funding for capital projects and to clear pending payments on expenditure. We are very concerned about what impact the much lower oil price will have on 2015 funding. We still need more predictability around leases; if we increase certainty around leases, then investment becomes easier to attract. “And we still need fiscal stability and predictability. This remains key in ensuring investors of all sizes can commit confidently, government revenues can be forecast reliably, and a capable service industry is maintained with a steady workload. As it stands, investors in Nigeria face very tough fiscal conditions.”

Business Journal May 11 - 17, 2015

Manufacturing www.businessjournalng.com

ITF Spends N10bn Annually on Vocational Training for Youths Blessing Ikeme

he Industrial Trust Fund (ITF) has pledged to continue to produce the needed skilled manpower to support the growth aspirations of industries in the country. Making this pledge last week at the inauguration of the new national executive of Commerce and Industry Correspondents Association of Nigeria (CICAN), in Lagos State, the Director-General of ITF, Dr Ju-

liet Onaeko, revealed that the Fund spends about N10 billion annually or 70% of its budget to train youths in vocational skills. She said such trainings are capital intensive, hence, the Fund needs financial supports from the public and private sectors of the nation’s economy. She explained that the Act establishing the Fund stipulates that employers should contribute part of the funds while the Federal Government gives subversions to ITF.

Onaeko noted that the training is in line with its policy trust to promote and encourage acquisition of skills in industry and commerce while generating a pool of indigenous trained manpower, sufficient enough to meet the economic needs of the country. “Training reimbursement are part of the returns employers can receive from the Fund. Others include general availability of trained and mobile manpower throughout the economy as well as access

to wealth of information and expertise, which the Fund has built over the years,” she said. She noted that the Fund, which was established in 1971, has been consistently and painstakingly operated within the context of its enabling laws, adding that its objectives have been pursued vigorously and efficaciously. Over the years, the ITF has expanded its structures, developed training programmes, and reviewed strategies, operations and services in order

to meet the changing demands for skilled manpower in the economy. Specifically, the aim of the programme is to train and equip youths with advanced employable skills in some occupational areas like facility maintenance technology, information and communications technology as well as culinary skills, among other areas. In all of these, Onaeko disclosed that ITF is facing several challenges in accomplishing its target goals and objectives

such as non-compliance with the one per cent mandatory training by some organisations, inadequate training infrastructure or facilities as well as inadequate fund for skills training. Other challenges were insufficient vacancies for training of teeming Nigerian youths, low patronage of training programmes, poor training culture, poor co-operation from the private sector in job creation and social problems.

Dangote Cement Boosts Motorola Becomes Latest Production Across Africa Manufacturing Giant to Move Operations to India to 30m Tons

he price of cement may soon crash as Dangote Cement boosts its production capacity to 30 million metric tons (MT) annually across Africa. Cement price currently ranges from N1, 800 to N2, 000 per 50kg bag. The Chairman of the Dangote Cement Plc, Alhaji Aliko Dangote, who revealed the production figure at the company’s sixth Annual General Meeting held recently in Lagos, said the company’s stakeholders and Nigerians would benefit from the ongoing expansion of Dangote Cement, for which the company has made massive investments in its operations and new projects. “As a result of the sizeable investments that we have made over the past few years, the company ended 2014 with new

lines in Nigeria, factories becoming operational in Senegal and South Africa, with other plants in Cameroon and Zambia, which started production in early 2015,” Dangote said. According to him, the importance of the expansion is more significant now as returns from the African projects are expected to start reflecting on the company’s account from the 2015 financial year. In reviewing the company’s performance for 2014, Dangote pointed out that, “the group revenues rose by 1.4 per cent to N391.6 billion, with pre-tax profits declined by 3.2 per cent to N187.7 billion. Also commenting on the expansion drive, the Group Executive Director in the company, Mr. Devakumar Edwin said: “I am proud to report that we

commissioned nine million tons of new capacity at our Obajana and Ibese plants and this puts them amongst the biggest cement plants in the world. Outside Nigeria, we opened up new factories in South Africa and Senegal in 2014 and our grinding plant in Cameroon has just become operational. We have started commissioning our plants in Zambia and Ethiopia and are on track to open more factories in Africa in the coming years.” He said that the company focused on long-term expansion and with the current phase, it will be producing more than 30 million tonnes of capacity, saying all the expansions are in the best interests of maximising returns for the company’s shareholders while eliminating the supply challenge in the industry.

Plastic Sub-sector for 7% Growth in 10 Years

he plastic sub-sector in Nigeria has been projected to grow by 7% over the next 10 years, in line with the packaging industry growth projections. Growth in the packaging industry is expected to increase market demand for the sub-sector’s products. Managing Director, Fairtrade, Mr. Martin Marz, said the Nigerian plastics and packaging sector has grown to over 3,000 companies and the industry is fairly developed and tends to mirror the trend in the local fast moving consumer

goods industry. Marz gave this indication at the just concluded Agrofood & Plastprintpack Nigeria 2015 Exhibition in Lagos. He noted that flexible packaging and plastics packaging have become very popular in Nigeria while raw materials employed in the packaging subsector are mostly imported. “Growth in the plastic and packaging sector has been driven by the increasing sophistication of the Nigerian middle class.” Meanwhile, within 2010 -2013, Marz revealed, imports

of packaging machinery and equipment have gone up from 86 million to 182 million at 116%, while imports of plastics machinery grew by 71% from 52 million to 89 million. Marz added that the food and beverage sector of the Nigerian economy contribute about 4.6% percent of its GDP not less than 66% of total consumer expenditure. Food and beverage sector is the largest segment of the Nigerian manufacturing industry comprising 22%. “It is estimated at 16 billion in aggregate output.”

otorola Mobility, maker of Moto E and Moto G smartphones, is evaluating local production in India as part of its long-term plans to make the country one of its largest market globally. "We expect to soon take a call on the possibilities of India manufacturing, considering we are significantly growing sales in India and the smartphone market here holds enormous potential," said Marcus Frost, Motorola's global senior marketing director for Europe, Middle East, Africa and Asia Pacific. The firm would look at both company-owned and third-party manufacturing and is closely studying the Make-in-India Policy of the Narendra Modi government. With this Motorola joins a growing list of global smartphone makers, including Sony, Xiaomi and Gionee, considering local manufacturing in India, drawn by the 'Make in India' incentives. These firms are

expected to firm up their plans this calendar year. Motorola had a plant in Chennai, which it had shut down in 2013 as part of a global cost-reduction programme by its then parent Google. The assets are still lying idle and, according to two senior industry officials, it could be revived as the first step for local manufacturing. Frost, however, refused to comment on such a possibility. Subsequent to Lenovo's acquisition of the Motorola business last year, the company has revived its plans to return to India in full force. "Lenovo is our parent, but Motorola is working independently making its own decisions. All business decisions, including possibilities of manufacturing in India, are made independently by our global team," Frost said, adding there are no plans to integrate sales and marketing operations with the parent firm in India.

At present, Motorola manufactures its smartphones in China and in Latin America such as Brazil. It, however, has a global software R&D facility in Bengaluru. India and China are the only markets where both Lenovo and Motorola brands are sold together, while globally the two brands are segregated marketwise. Motorola, which currently sells its smartphones only through Flipkart in India, sold some three million units here between February to December last year, with Moto G and Moto E models accounting for a bulk of it. Motorola currently has more than 3% share of the Indian smartphone market, dominated by Samsung and Micromax. Frost said Motorola will continue its exclusive sales association with Flipkart, even though it is aware that the country has a sizeable brickand-mortar sales network and other e-commerce firms are increasing business.

Business Journal May 11 - 17, 2015

Manufacturing

Nigeria Seeks to Rev Up Car Manufacturing Thomas Hansen

aily traffic jams, ‘go-slows’ in local parlance, here in Nigeria’s commercial capital are testament to the country’s love affair with the automobile. The market for cars – new and used – in Africa’s most populous country is estimated to be worth more than $6 billion according to government figures. Nigeria is estimated to import more than half a million cars every year, with nine-tenths of those vehicles second-hand imports. The large-scale import of tokunbo, second-hand vehicles of occasionally uncertain provenance, regularly stokes controversy in local media over quality and traffic safety concerns but is largely reflective of the willingness and ability to pay for cars in a lower-middle-income economy. Over the last few years the government of Goodluck Jonathan increasingly set its sights on building up a domestic capacity to assemble, and ultimately manufacture, cars. The focus is partly driven by concerns over the impact of car imports on foreign exchange reserves but also by a desire to diversify and industrialise the economy, which relied heavily on oil revenues for the last three decades. Nigeria didn’t always import its cars. Several international car manufacturers had partnerships with government and local factories in the 1970s with an annual output of about 108,000 cars. Nigeria’s nascent car industry subsequently with-

ered away due to high production costs, limited innovation and a rise in imports as trade policies were liberalised and smuggling increased. As part of its industrialisation policy, the government announced the National Automotive Industry Development Plan (NAIDP) in October 2013, introducing tariffs on imports as a key instrument to make domestic production more competitive. The ultimate aim of the policy is to create 70,000 skilled and semi-skilled jobs and create the conditions for Nigeria to eventually enter into car manufacturing. The planned tariffs will entail a significant increase in duties and levies on fully built vehicles, from 22% to 70% for passenger cars and 10% to 35% for commercial vehicles. To boost local assembly, there

is no levy on importing materials and parts for full assembly in-country and discounted levies of 5%-10% for partially assembled vehicles. Tariffs are only one part of the equation, as many used cars are smuggled to Nigeria from neighboring countries. The government has stated that it will reduce smuggling through better controls on vehicles, car dealers and ports. Nigeria has a history of announcing grand policies with little implementation, but in this instance, the tariff announcements have boosted international interest in establishing local assembly lines, with several major manufacturers already moving in. Not everyone is pleased with this policy however. Nigerian car importers consti-

tute an influential lobby and the push for more in-country manufacturing has come up against vested interests. There are also concerns that local capacity to build cars – constrained by poor infrastructure – is inadequate to meet demand and that this is pushing up prices significantly and creating yet more incentives for tokunbo smuggling. Faced with public resistance and local capacity constraints, the implementation of the tariffs hike has been delayed on several occasions. A 35% duty on fully assembled vehicles came into effect in July 2014 and the additional 35% levy was only implemented on new vehicles in late 2014. In February 2015, government announced that the full

70% tariff on tokunbo cars would be implemented in late June. The official reason was that domestic assembly couldn’t keep up, but the delay suggests wariness of introducing an unpopular tariff just before a closely fought presidential election. The results of that election cast additional uncertainty on the viability of Nigeria’s automotive industry. President Jonathan lost his March reelection bid to opposition challenger Muhammadu Buhari, and the tariff regime is now at the mercy of the incoming Buhari administration, which takes office in late May. Buhari’s All Progressive Congress (APC) has indicated that its shares the former government’s industrial objectives, but it does not have a particularly clear policy platform.

Moreover, Vice-president-elect Yemi Osinbajo publicly questioned the wisdom of the current policy in February. Although Osinbajo said that the APC will “encourage local production of cars” he also added that “we will reduce the high tariffs that Nigerians are paying to import vehicles.” In the short term at least, international car manufacturers with expansion plans into Nigeria will face uncertainty over tariffs – and potentially the commercial viability of some local ventures. There are other potential pitfalls as well. Investors in the automotive industry in Nigeria will need to navigate a highly complex business environment, selecting the right local partners and interfacing with government agencies that have a reputation for difficulty and corruption. Making the wrong commercial or operational decision has the potential to lead to substantial damage to the investor’s reputation or balance sheet. Moreover, infrastructure is uneven –for instance the power supply is far from a given – and the security environment for expatriates and local employees is at times challenging. Nonetheless, the prospective rewards in entering are also great with a potential new-car market of 1 million. It is this factor that will continue to attract international entrants to Nigeria over the next year. Thomas Hansen is a senior analyst at Control Risks, the global risk consultancy.

IDC Survey Reveals Majority of Manufacturers Worldwide Using Public or Private Cloud 13 Apr 2015 While traditional IT spend is on the decline, manufacturers must update their cloud roadmaps to ensure their investments benefit the business The transition to “cloud also” or “cloud first” is well under way for manufacturers around the globe according to new survey results from IDC. In fact, in the United States, 41% of manufacturing respondents indicated they are accessing IT resources via the public cloud, based on the IDC Global Technology and Industry Research Organisation IT Survey, 2014. This new IDC study, Worldwide Cloud Adoption in the Manufacturing Industry (Document#MI255221) analyzes the current trends and future plans for cloud adoption among manufacturing enterprises worldwide, based on several IDC surveys including the 2014 IDC CloudView Survey. The advantages of cloud computing for manufacturers are significant, as line of business leaders and their IT organizations increasingly rely on cloud to flexibly deliver

IT resources at the cost and speed the business requires. Traditional IT spend is clearly on the decline, and manufacturers must update their cloud roadmaps to ensure their investments benefit the business. According to the IDC European Vertical Markets Survey, 2014, almost 50% of European manufacturing respondents noted they have adopted or will adopt ERP in the public cloud. And in Asia/ Pacific, 49% of manufacturing respondents are using cloud – public or private - or intend to use cloud, based on the 2014 IDC Manufacturing Insights Asia/Pacific Business and IT Priorities Survey. Key findings from this new report include: • A majority of manufacturers worldwide are currently using public (66%) or private cloud (68%) for more than two applications, according to the respondents that qualified for our 2014 IDC CloudView Survey • “Cloud Also” remains the most common strategy for new and replacement IT in-

vestments in the public cloud; 61.6% indicated their company’s posture for net new IT services is “cloud also”, and the number is only slightly lower for replacing IT existing functionality (56.8%). • IT operations are the primary benefactor today from manufacturers’ cloud strategy, and only 30 – 35% of respondents indicate operations, supply chain and logistics, sales, or engineering expect to benefit. And only 41% of respondents believe giving business units more direct control over sourcing their own IT services is a top 4 driver for moving to the cloud. • Cloud services and cloud architecture’s share of the annual IT budget allocation is going to increase 27% in the next two years for manufacturing respondents in the 2014 IDC CloudView Survey. • Cloud computing will become the de facto standard for new operations (through organic or acquired growth) over the next 10 years for manufacturers that want to operate and serve customers

globally. Manufacturers will increasingly rely on enterprise and industry clouds for access to information, technology resources, and operational support. To prepare, manufacturers will also need to review their underlying network and communication infrastructures. “Manufacturers are in the midst of a digital transformation, in which 3rd Platform technologies are absolutely essential to the way they do business and in the products and services they provide to their customers. Consequently, a strategic approach to adopting cloud is absolutely essential,” said Kimberly Knickle, research director, IDC Manufacturing Insights. “Because of cloud’s tremendous value in making IT resources available to the business based on business terms –speed, cost, and accessibility- manufacturers must ensure that the line of business and IT management work together in defining their requirements.” According to the report, one

of the ways in which cloud will bring significant value to the business is in allowing manufacturers to more easily make use of the data that will be connected from sensors throughout the manufacturing operations with IP-based connectivity and the Internet of Things. Essentially, data from sensors on connected products, on equipment in use in the plant, and on assets and inventory in the supply chain, is most valuable if that data can easily be accessed and analyzed by various organizations within the enterprise or even by partners in the value chain. In the short term, IDC Manufacturing Insights expects that manufacturers may opt for private clouds as a means of extending internal IT infrastructure without raising significant concerns over data security, for the cost saving and operational agility. However, capacity will likely shift to more cost-effective public clouds for noncritical efforts and even more over the long term as confidence (and

technology) increases in security via the public cloud. Data from IDC’s 2014 CloudView Survey provides context for understanding why cloud remains an area of heightened attention at the highest levels of manufacturing organizations. Data includes 593 manufacturers from the following countries - United States, Canada, United Kingdom, Germany, France, Sweden, China, India, Malaysia, S. Korea, Australia, Japan, Mexico, The Netherlands, Spain, Italy, and Brazil. Respondents that qualified for the survey participate in decision to invest in cloud or are knowledgeable about their company’s cloud purchasing decisions. They also had to be at least generally educating themselves about the public Cloud model, and currently using public Cloud or Private Cloud for more than 1 or 2 small apps/workloads. Manufacturing Respondents by title include 437 or 73.7% with IT titles and 156 or 26.3% with line of business (LOB) titles

Business Journal May 11 - 17, 2015

Entrepreneur www.businessjournalng.com

Cocoa – How African Entrepreneurs Can Tap Into Global Market

verybody loves chocolate. Hundreds of years ago, the Greeks referred to chocolate as the ‘food of the gods’. It’s a highly demanded luxury product and an impulsive treat for millions of people around the world. No wonder the global market for chocolate and cocoa beverages is now worth over $100 billion (and growing) every year. Although the developed and fast developing countries (especially in Europe, Asia and North America) consume over 90 percent of the chocolate produced every year, chocolate largely exists because of Africa. This is because up to 70 percent of cocoa, the major ingredient for making chocolate, is grown and harvested in Africa! Yes, you’re right; no Africa, no chocolate! Cote D’Ivoire (Ivory Coast), Ghana, Nigeria and Cameroon are our continent’s largest producers but there is still unexploited potential in other West and Central African countries that are also well suited for cocoa production. This article explores the interesting opportunities for African entrepreneurs in cocoa production and trade which would benefit from the explosive global demand for chocolate in the near future. Why is Cocoa such an Important and Lucrative Crop? Why is cocoa such a valuable commodity in today’s and tomorrow’s world? As is my usual practice on smallstarter.com, I love to explore the basics of every idea so everybody reading this can appreciate the potentials of the business. My goal is to teach and inspire. In this section, we’ll explore the interesting journey of cocoa from its origins as a common raw material (cocoa beans) to international hot-selling product (chocolate). The cocoa plant is a small, evergreen tree (usually between 13 to 26 feet tall) that grows exclusively in the deep tropical regions of the world. In West and Central Africa – especially Ivory Coast, Ghana, Nigeria and Cameroon – some 2 million small-scale farmers are responsible for more than 70 per cent of all the cocoa produced in the world today. A cocoa tree usually matures and begins to bear fruit (pods) when it is about four or five

Why African Entrepreneurs Should be Interested in Cocoa Business There are a couple of reasons why the cocoa business remains an interesting opportunity for African entrepreneurs. Let’s take a look at three of them…

years old. On the average, a single cocoa tree produces between 20 and 30 pods, which are the oval-shaped yellow/orange things you see hanging on the tree trunk in the picture to your right. Each pod contains about 20 to 50 seeds, known as cocoa beans. These beans are the goldmine of the cocoa plant because they are processed into cocoa liquor, cocoa butter, cocoa powder, and most popularly, chocolate! After the pods ripen, they are harvested and cut open to extract the valuable cocoa beans. Surprisingly, the beans usually have a strong bitter taste. As a result, they must be fermented for a couple of days (about five days) to develop the sweet flavor that we enjoy in chocolate. After fermentation, the cocoa beans are dried, cleaned, roasted and processed into several valuable products, the main ones being: Cocoa Butter: This is a creamy-coloured edible vegeta-

ble fat with a cocoa flavor and aroma that is extracted from cocoa beans. Cocoa butter makes up more than 50 percent of the weight of cocoa beans and is used to make chocolate, as well as several ointments, toiletries and pharmaceutical products. Cocoa Solids: is the light brown or reddish-brown substance that remains after cocoa butter is extracted from cacao beans. It is often sold as a final product in the form of cocoa powder (or cacao) which is a major ingredient in beverages and drinks across Africa. Cocoa solids are also used to make chocolate, chocolate syrup and other chocolate-based confections. The Global Madness for Chocolate! Chocolate is a huge business and one of the best-selling products in the world. A 2012 KPMG Report reveals that the psychology behind chocolate suggests consumers see it as a ‘naughty but nice’ impulse treat.

Although Western Europe remains the world’s largest chocolate market, the United States consumes more chocolate than any other country in the world. There is also a fast-growing demand for chocolates in emerging economies like Russia, Brazil, Mexico, India and China. In fact, the demand for cocoa for chocolate is growing so fast that experts now warn we may run out of affordable cocoa supplies within 20 years. Of all the countries in this snapshot, only two (Mexico and Brazil) produce any cocoa at all. In spite of the fact that Africa supplies up to 70 percent of the cocoa beans that are used to make chocolate, very little of this sweet-tasting product is consumed on our continent. For example, in the West African country of Cote D’Ivoire (Ivory Coast) which is the world’s biggest cocoa producer, many of the farmers who produce the cocoa beans have never tasted chocolate before.

1. Africa has a Strong Advantage in Cocoa Business Although the cocoa plant is not native to Africa and was introduced to our continent over 100 years ago from South America, Africa now dominates the global supply of cocoa. Fortunately, a significant portion of our continent lies within the narrow belt around the earth’s equator that is best suited for cocoa cultivation. Outside this belt, cocoa trees may find it impossible to grow. In addition to Africa’s suitable location, the evergreen forest and climatic conditions (adequate rainfall and favourable temperatures) makes West and Central Africa a sweet spot for cocoa production. Like I already mentioned, Africa dominates the world’s cocoa supply with over 70 percent of the market. This makes Africa very invaluable to the cocoa business and its related products, especially chocolate. Over two million smallholder families and communities in Cote D’Ivoire, Ghana, Nigeria and Cameroon have been cultivating cocoa for decades.

As a result, there is a lot of experienced labour in the region who have accumulated extensive knowledge about the cocoa business over the years. There are over 25 countries in the West and Central Africa region which, by virtue of their location, have a significant advantage to make money from the international cocoa business. However, only four countries in this region (Cote D’Ivoire, Ghana, Nigeria and Cameroon), are dominant cocoa producers. There still remains a lot of unexploited opportunities in cocoa production in Guinea, Sierra Leone, Liberia, Central African Republic, Congo and several other countries in this region with fertile land and favourable climate that is suited for cocoa production. In addition to the countries in the region that are yet to exploit the potentials of cocoa, there are also countries like Nigeria and Cameroon that are under-utilising their potentials for cocoa. Nigeria, for example, which used to be Africa’s top cocoa producer now produces significantly less. There is still a lot of room in Nigeria and Cameroon for more cocoa. 2. There is On-going and Future Boom in Demand for Cocoa Statistics show that people develop a taste and appetite for impulse and luxury products as their incomes increase.

Business Journal May 11 - 17, 2015

Travel Tourism www.businessjournalng.com

Why Sub-Saharan Africa is FastestGrowing Region for Wellness Tourism Mia Taylor

getting there is pricey, with airline tickets often between $1,000 and $2,000. Once there, however, and depending on the accommodations, the U.S. dollar can go a long way on wellness treatments. “Here’s the thing about wellness in sub-Saharan Africa - luckily once you get there it is really not pricey compared to the rest of the world,” Berklich says. “Because the tourism market hasn’t exploded yet, you’re still able to capture a lower rate.”

t’s hard for some to develop a mental image of Africa beyond headlines about Ebola, famine, poverty and Somali pirates. But there’s a new headline emerging about the continent, one that’s far more positive and welcoming for the global community. Within the past few years, Sub-Saharan Africa in particular has become the fastest-growing wellness tourism market in the world, according to the Global Spa & Wellness Economy Monitor, an annual report published by the Global Wellness Institute. The institute’s latest report says wellness tourism revenues in the region grew from $2 billion in 2012 to $3.1 billion in 2013, growth of 57%. Wellness tourism trips, meanwhile, spiked from 2.2 million annually to 4.2 million, a growth of 90% - or nearly doubling in just a year. Spas are multiplying too. In 2007, only 14 countries in Sub-Saharan Africa were home to any, but by 2013, that number jumped to 42. There are now about 1,554 spas in Sub-Saharan Africa, growth of roughly 300% between 2007 and 2013. “Sub-Saharan Africa has been plagued for so many years with bad press about harboring terrorism groups and disease and lack of infrastructure,” says Anthony Berklich, Founder of Inspired Citizen. “But there are certain countries that are trying very hard to turn that image around.” Gabon and Gambia are two Berklich cites as an example of such efforts. The Gabon government recently signed a deal with Aman Resorts, Berklich says, to bring in hotels and experiences geared toward ecotourism and wellness over the next five years. The first hotel will be in the country’s capital, Libreville, and others will follow in some of the country’s national parks. “Gabon is really investing a lot of money and time trying to lure and

attract the luxury travel market,” Berklich says. “Out of all of the countries in Sub-Saharan African, it is a little bit more stable and very set up for luxury.” Gambia is making similar efforts, Berklich says, and with its coastline and ocean access, is faring well. One

hotel worth noting in Gambia is the Coco Ocean Resort & Spa on Bijilo Beach, with its whitewashed buildings and villas, three pools, four royal suites with private pools and a spa that rivals the best with its 14 treatment rooms, traditional Moroccan hamam and thalasso pool.

Principe Island, with its BomBom Island Resort, is also another up-andcomer, Berklich says. “It’s geared toward ecotourism and wellness, and you’re on a secluded island,” Berklich says. “There are all sorts of yoga and wellness experiences. It’s pretty fabulous.” Additional countries seeing significant growth in wellness tourism, according to the Global Wellness Institute report, are Kenya, Namibia, Tanzania, Ghana, Senegal, Botswana, Mauritius and Seychelles. There is also a well-established market in South Africa. “Almost every safari lodge has added massage, yoga or some kind of spa,” says Beth McGroarty, Research Director for the Global Wellness Institute. “At the same time, the old safari model is getting more active. Instead of just sitting in a jeep, there’s more walking.” Visiting does not always have to be mind-numbingly expensive. Yes,

There are also safari camps to fit every budget, McGroarty says. Typically, a wellness vacation in Sub-Saharan Africa encompasses nature, an eco-focus, outdoor adventure, safari or wildlife conservation and spa and massage wellness elements, including traditional healing approaches and yoga. Specific wellness treatments focus on native ingredients and local healing practices. “Every country in Africa has a deep wellness tradition,” McGroarty says. “There are all kinds of massages in Africa. The Masai tribe will do certain kinds of massage using a Rungu baton. There is a lot of incorporation of ingredients indigenous to Africa, such as the Baobab fruit.” Dena Roche, a wellness travel journalist, certified wellness coach and co-founder of Wellness Travel Media, visited Sub-Saharan Africa just last month, staying at the One & Only resort in Cape Town - home to one of Africa’s most award-winning spas - and made plenty of time to indulge in wellness treatments while there. “Their signature experience uses a local sea salt to exfoliate your skin, and then they wrap you in a South African seaweed. When that’s done they put warm, locally gathered seashells on your body, instead of the typical hot stones. In other treatments they use native healing ingredients such as rooibos, an herb that reduces stress and is very calming.

Hotel in the Sky: Four Seasons Unveils Luxury Private Jet

he wraps are finally off the world’s first hotel private jet and, mercifully for everyone else on board, there’s no honeymoon suite. Otherwise the Boeing 757 kitted out by the luxury Four Seasons brand promises to deliver the full fancy hotel experience at 30,000 feet. The Toronto-based luxury accommodation company has just released the first images and a video showing the interior of the retrofitted single-aisle aircraft. With a decor it says is inspired by “caviar and champagne,” the plane features 52 flatbed seats in handcrafted leather, handwoven woolen carpets and

fancy tableware. That’s nearly 150 seats fewer than in standard commerically operated 757s. On the outside the aircraft is rendered in a glossy black livery with the Four Seasons logo emblazoned on the tail fin. On-board Chefs The jet, originally slated for launch in February 2015, comes complete with a Four Seasons-trained cabin crew, including an executive chef, sous chef, concierge and guest services manager. Chef Kerry Sear says guests should experience the same level of service as they do in a Four Seasons hotel -- albeit with no need

for an in-room minibar. “The only real difference is that occasionally we have to do a little juggling when there’s turbulence!” The service is now taking bookings for round-theworld trips in 2016. First up is a 24-day, nine-destination jaunt that starts in Los Angeles and ends in London. The cost is $132,000 per person and includes stops -with accommodation at Four Seasons hotels -- include Hawaii, Bora Bora, Sydney, Bali, northern Thailand, Mumbai and Istanbul. No word on whether that price tag includes a cure for jet lag

Business Journal May 11 - 17, 2015

Travel Tourism

AIRLINES FINANCIAL MONITOR KEY POINTS

March-April 2015

4 Worldwide airline share prices fell 1.5% in April, responding to the strength of the US dollar, but are still up 23% on a year ago; 4 Crude oil prices rallied in April/May, up 20% on the March low, as growth in inventories slows in the US; 4 Initial Q1 financial results show continued gains in the US and a positive turn-around in Asia Pacific; 4 Passenger yields in the US have started to weaken and fares in other regions fell further, reflecting downward pressure from earlier declines in fuel related costs as well as exchange rate distortions; 4 Air transport volumes continued to expand robustly, as FTKs volumes moderate after February spike; 4 Growth in seats rebounded in March, but remains below expansion in volumes; 4 Air freight load factors continued sideways trend in March as passenger loads start to improve; 4 Despite lower oil prices, airlines have been increasing capacity at a slower rate than growth in demand.

Financial indicators Worldwide airline shares weakened on the back of the strengthening US dollar 4 Airlines share prices fell 1.5% in April compared to March, but are still up 23% on a year ago. underperforming the broader market. The FTSE Global All Cap rose 2.5%. Declines in fuel costs, which had provided a boost to airline share prices in late 2014, are being offset by the strengthening US dollar. For US carriers, the strengthening dollar could hamper international air travel, while for non-US carriers, there could be an increases in US-dollar denominated costs. The only region to see an increase in share values was Asia Pacific (+7%), driven by improvements in Chinese carrier financial performance.

Q1 financial results show strong profit improvement in North America and Asia Pacific 4 Airline financial performance is improving strongly, according to initial Q1 financial results. A sample of 25 airlines shows that the industry financial performance improved significantly on the year ago period at the operating and net profit level. The increase was driven by North American airlines, where consolidation and cost cutting has resulted in a significant boost to profitability and lower fuel costs. Asia Pacific airlines have also improved on a year ago. Chinese carriers have recorded solid Q1 2015 profit results, owing to strong demand and improved operational efficiency.

Business Journal May 11 - 17, 2015

Brands Marketing Advertising

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The Secrets of 7 Successful Brands Whether they've been around for decades or were launched in the last two years, some companies just have a bit of magic when it comes to grabbing attention and establishing themselves as fan favorites. Of course, that "magic" doesn't just happen by itself. From Warby Parker's sensible pricing and do-gooder ways to lululemon's sense of community and Hipmunk's aww, so cute mascot, these brandshave figured out how to work their way into customers' hearts, minds and wallets.

Warby Parker A Clear Vision An affordable, stylish eyeglass retailer whose philosophy encompasses sophistication, purpose and fun, Warby Parker has seen steadily building consumer awareness and sales that have jumped by several hundred percent each year since its 2010 launch. Co-founder and co-CEO Neil Blumenthal says the New York City-based company--named for the obscure Jack Kerouac characters Warby Pepper and Zagg Parker--tries to deliver on its promise by designing stylish frames using premium materials and offering them at the game-changing price point of $95, including prescription lenses. The company also has a "buy a pair, give a pair" program that helps low-income men and women start their own businesses selling affordable glasses and is one of the world's only carbon-neutral eyewear manufacturers. "Warby Parker exists to demonstrate that you can be profitable and do good in the world, at scale, without charging a premium for it," Blumenthal says. That positioning has struck a chord among consumers, says Tracy Lloyd, partner at San Francisco brand strategy and design consultancy Emotive Brand. "Today, consumers want their brands to matter more; they'll support the brands that align to their values and are meaningful to them," she says. "This give-back mentality really resonates with people." Of course, serving up a great user experience and a bit of quirk doesn't hurt. Warby Parker emphasizes speedy and efficient customer service, and offers innovative shopping experiences such as a try-at-home option and a mobile retail pop-up shop housed in a renovated school bus. "We try to create experiences that people want to tell their friends about," Blumenthal says, noting that word-ofmouth accounts for more than half of Warby Parker's traffic and sales. Last year the company opened six new showrooms and doubled its employee ranks. Blumenthal attributes the rapid growth in part to the fact that the brand has meaning for many types of consumers, from style mavens to the

socially conscious. "We've found that different aspects of our brand resonate with different communities," he says. "Although you can't be everything to all people, you can definitely be something to some people." Lululemon Athletica Good Vibes By creating a company story that's focused on aspirational visions and goals, lululemon has built a brand that consumers want to live. Founded in 1998, the Vancouver, British Columbia-based maker of pricey yoga and athletic apparel has always attracted a loyal following, but numbers have surged recently to include not only yogis and athletes but anyone wanting to be a part of an inspirational, feel-good community. "People care about our brand because they feel

connected to it and what we stand for," says Laura Klauberg, senior vice president of community and brand. "In addition to yoga and health, we're also passionate about helping our guests create a life they love through the power of goal-setting." Julie Cottineau, CEO of brand consultancyBrandTwist.com, says functional and emotional brand promise resonates with today's buyers. "People think of it as a community; by buying the brand they're buying into something bigger. It's not just about fitness or the clothes, it's about finding that mindbody connection and doing something positive," she says. Seeking to expand its community, lululemon has opened more than 60 stores since 2011, creating a fresh batch of ambassadors--athletes, instructors or role models who promote the brand among their students and

provide feedback on product design. Meanwhile, Twitter followers have skyrocketed 621 percent since 2011, while Facebook followers have increased nearly 200 percent. Cottineau says that growth is fu-

eled by a comprehensive strategy that inserts the brand message into nearly every point of consumer contact, especially the ubiquitous reusable shopping totes printed with the "lululemon manifesto," which features inspirational

Business Journal May 11 - 17, 2015

Brands Marketing Advertising sayings such as "Do one thing a day that scares you." It's a tactic that can be especially useful for entrepreneurs who can't afford to go up against the marketing budgets of established brands. "Months later, that shopping tote is not associated at all anymore with the pants or the top that the customer bought, but it is a little reminder of your brand's story," Cottineau says. "That's a moment of impact that a lot of brands overlook." Ted Free Thinking Talk to me: 2011 New Hampshire Teacher of the Year Angie Miller at a TED2012 event. Born in 1984 as a one-off, invitation-only conference that brought together key figures from the worlds of technology, entertainment and design, the nonprofit known as TED is now one of America's most recognizable brands-and, more important, a movement to spread ideas from innovative thinkers around the world. Executive producer of media June Cohen attributes TED's growth to a widespread hunger for intelligent content and the quality of the organization's inspiring, 18-minute lectures. But she is quick to add that the success is also a direct result of the philosophy of radical openness that empowers the brand's global community.

TED really exploded among the public in 2006, when it began giving its content away--a risky move that "could have capsized our business model," Cohen says. "Why pay for it when you can get it for free online?" But the gamble paid off. Today there are more than 1,400 TED talks available online, with more added every week. They've been viewed some 1 billion times by people around the world at the rate of 1.5 million times per day. (That's 17 views per second.) On the membership front, steep prices--the standard TED membership, including conference attendance, is $7,500 per year--have done little to deter customers; TED events typically sell out far in advance. John Michael Morgan, author of Brand Against the Machine, says TED's evolution from a single event to a fullfledged brand comes from an exemplary job of marketing with people and not at them. "They care about the conversations their audience is having and assist with moving those conversations forward," he says. Those conversations have morphed into brand extensions that include TEDActive, TEDGlobal, TED Fellows and TEDx, among others. Measures are in place to keep those factions true to the brand's mission; for example, organizers of independent TEDx events may use the TED name and video content for free, but they must follow identity

guidelines to ensure proper use of the brand's valuable equity. Cohen emphasizes that giving TED's global community access to all aspects of the brand is what continues to power it in every way. "Most companies find it difficult to pursue 'open' strategies," she says. "But what you can see from TED's trajectory is that openness has extraordinary rewards." Hanky Panky Intimate Knowledge Inspired by a bra-and-panty set Gale Epstein created as a birthday gift for her friend Lida Orzeck in 1977, the two started a company, taking a bold "by women, for women" approach. "Hanky Panky promises to make women feel great about themselves, their undies and their sisterhood with other women who love the brand," says Epstein, who serves as president and creative director. "We consistently deliver an exceptionally made product that is feminine, flattering and known for its fit." While the New York-based brand has long had legions of devotees--who tout the sexy but comfortable styles and one-size-fits-all thongs, available in a seemingly endless array of colors--the founders attribute recent growth to brand extensions such as collegiate and Hello Kitty licenses, a bridal collection and the slightly steamier After Midnight

product line. Branding expert M.P. Mueller, president of Austin, Texas-based Door Number 3 Advertising, says Hanky Panky addresses the complexities of the way all types of women relate to their bodies with an understanding and emotional engagement that resonates. "Lingerie is not just to please the sexual partner anymore, but for women who want to feel good about their bodies and have fun in the bedroom across many life stages: from maternity lingerie that doesn't make the mom-to-be feel like she's being put out to pasture for nine months to the Hello Kitty line that recognizes the twentysomething who still goes back and forth between vixen and Mary Janes," she says. Another boost came from the 2012 launch of the Hanky Panky Pep Squad program, which appoints ambassadors at colleges nationwide to introduce the brand on campus and promote it via social media and special events. That growing collegiate audience is part of the reason the brand is approaching 20,000 Likes on Facebook, a number that has doubled in the last year alone. "Our customers do our PR," Epstein says. "The brand was built on buzz." Last year Ryan Klarner, a member of his Illinois high school swim team, posted a plea on Taco Bell's Facebook page. Employing a loose interpretation of English grammar, the 15-yearold asked: "Is there any way you guys

could make me a customized speedo that says think outside the buns on the back of it?" Thirteen days later, Taco Bell posted a reply: "What size do you wear? And what's your address?" More than 2,600 people liked Ryan's post, and more than 1,000 liked the reply. Ryan was already a regular customer--his post noted that he eats at Taco Bell "at least" five to seven times a week--but he is now a fan for life, or what's known in the marketing world as a brand ambassador. To Raquel Smith, marketing manager at Oneupweb, a Traverse City, Mich., digital marketing agency, Taco Bell's handling of the request was a textbook lesson in how entrepreneurs can inspire customers. "It's a great example of listening to your fans, providing value for them and creating a really strong ambassadorship," she says. Businesses routinely rely on loyal customers to serve as ambassadors--prized patrons who can be counted on to spread the word about a company's products or services or general wholesome goodness. Some companies offer something in return, such as exclusive access to sales or product launches. But marketing experts insist that entrepreneurs don't need million-dollar budgets to cultivate brand ambassadors. "It's a matter of being able to find and activate those consumers to see who you are," says Perry Fair, a chief creative officer at global ad agency JWT.

Known Unknown vs Unknown Unknown Crisis Haniel Ukpaukure

Haniel Ukpaukure upr.uprlimited@yahoo.com 07031687570

In all, known unknown crises are generally not too difficult to handle, since their occurrence are a possibility, except that the how and when are not known.

ast week, we tried to look at the difference between management of crisis and crisis management, pointing out the fact that while the former involves using public relations techniques to prevent a crisis at the stage it manifests through early warning signals, the latter is about using the same techniques to put out a fire that has broken out. As a corollary, we shall, in this article, attempt to look at the difference between what is referred to as known unknown crisis, as well as unknown unknown crisis. Sounds confusing, especially the latter, right? Known unknown crisis sounds a little bit understandable. But what, in heaven’s name, is the meaning of unknown unknown crisis, if it is not simply an error of repetition? Crises that fall in the category of known unknown are the routine crises that the public relations practitioner has to deal with in his day-to-day activities. They are known because they are common, and therefore predictable; easy to prepare for and easy to manage. What makes the known crisis unknown is that its time and manner of occurrence is not known, and can therefore not be predicted. An organisation with even the most satisfactory attention to staff welfare knows that something could go wrong someday – a development that is serious enough to throw up labour issues that were not an-

ticipated. The fact that labour crisis is common in the workplace makes it a known crisis. What makes it unknown is the fact that it is not known when and how it could occur, and its manner of occurrence. Let us suppose in the area of remuneration, the organisation is not found wanting. Employees are well paid. Their health is a top priority because there are several top-rate hospitals on retainership by the organisation. What happens if there is an industrial accident, probably involving loss of life and considerable damage to property, which would occur against the background of adequate safety measures put in place to ensure safety of workers? This could be categorized as a known unknown crisis, because the organisation knows an industrial accident is a possibility. The snag is that it has no idea how and when it could occur, again, especially if it gives very high consideration to environmental safety, in which case it considers such an occurrence a rarity. A few years ago, a cabin crew member of a popular Nigerian airline was arrested at the London Heathrow Airport with hard drugs. That is a known unknown crisis. The airline, in its operations, probably did not rule out the possibility that its cabin crew members could be lured by the temptation of not having to go through the routine security checks that other passengers go through before take-off of flights in Nigeria to attempt the get-rich-quick business of drug smuggling.

Indeed, it is safe to assume that constant admonitions and warnings against dabbling into drug smuggling form part of the dos and don’ts that cabin crew are exposed to as part of their training. This means that airlines know they could be tempted to try their hands in the illicit business. That makes their involvement in the business a known crisis for airlines. The crisis becomes known unknown when they get involved in the business and end up being arrested, either within or outside the country, thereby throwing the airline into a crisis it could not have predicted, and therefore was not prepared for. In all, known unknown crises are generally not too difficult to handle, since their occurrence are a possibility, except that the how and when are not known. They do not come with the nightmare that accompanies unknown unknown crises. As the name implies, unknown unknown crises are those crises that are not known, which is made worse by the fact that because they are not known, the time and manner of their occurrence are also not known. They are usually very difficult to handle. Before the advent of Boko Haram, insurgency was an unknown unknown crisis in Nigeria. We read about it and saw it only on television, as something that happened in other lands. The country fought a 30-month civil war, all right. But that was a conventional war, in which battle lines between two sides were clearly

drawn. Nobody imagined that insurgency or, to use the more appropriate word, terrorism, could force its way into our daily living. And because it was an unknown unknown crisis, about six years down the road, the government of Nigeria has not been able to bring it under control, certainly, not with fallouts such as suicide bombings, internally displaced persons and the international embarrassment of having to rely on assistance from far less endowed neighbouring countries to gain the upper hand, as it were. Unknown unknown crises could occur anywhere, including organizations. We are still very much in the rainy season in Nigeria. And considering the fact that rain is a natural factor, an organization planning a musical event would not be deceived by the relative sunshine of the last few days into holding such an event at the stadium because of its interest in crowd attendance, even if for marketing purposes. It would make sense to hold the event in one of the big hotels with facility to accommodate a large audience. But what happens when a cyclone or hurricane – natural occurrences that are quite alien to this part of the world – erupts and blows off a part of the facility while the musical show is in progress, probably leading to loss of life and property. How does an organization handle such a crisis? A cyclone or hurricane is an unknown crisis in Nigeria. And because it is

unknown, its manner of occurrence is unknown. The same cannot be said of countries like Thailand, the Philippines, Malaysia, or even God’s own country – the United States. It is never the wish of any PR practitioner to have to manage a crisis. But every practitioner knows that crisis is not something that can be wished away. It is an integral part of the job. The practitioner that knows his onions will have at his finger tips the techniques to manage crises when they occur. However, as we have seen in this article, known unknown crises are more desirable, if you permit the use of that word. This is because they are known; can be predicted and therefore can be planned for, even if the time and manner of their occurrence are not known. An unknown unknown crisis is a nightmare that no practitioner or organisation would pray to be confronted with. Even countries with unlimited resources at their disposal sometimes find this type of crisis quite a difficult nut to crack, as we have seen in the case of Boko Haram. While it is in the line of duty to prepare at all times for known unknown crisis, events around the world have shown that natural conditions and manmade crises are no longer limited to certain parts. It is not out of place, therefore, to plan for unknown unknown crisis, even if they may never occur. upr.uprlimited@yahoo. com 07031687570

Business Journal May 11 - 17, 2015

PoliticalEconomy www.businessjournalng.com

‘Change’ Unseated Nigeria’s President, But May Be Slow in Coming • Depleted treasury, low oil prices may hamper the transformation incoming president Muhammadu Buhari promised to bring Chris Stein

uhammadu Buhari won an upset victory over Nigeria president, Goodluck Jonathan, using a catchphrase that’s familiar to anyone who’s paid attention to American politics over the past eight years: “change.” Buhari leveraged the same slogan used to much success by Barack Obama’s 2008 presidential campaign to unseat Jonathan and his ruling People’s Democratic Party, which has had its candidates occupy the presidency since Nigeria returned to democracy in 1999. The change Buhari promised was an end to the Boko Haram insurgency that has killed thousands of Nigerians and forced over a million to flee. He campaigned on a reputation as an anti-corruption crusader, and made populist pledges such as stipends for poor people and health care for all. Jonathan campaigned on the motto of continuity for his “Transformation Agenda,” saying the growth Nigeria enjoyed during his first elected term — during which the country recalculated its GDP to become the largest economy in Africa — would continue if he could have another four years. But voters weren’t convinced, and sent Jonathan packing, with about 2.5 million fewer votes than Buhari. But when the former military general and coup leader Buhari takes office at the end of May, he’ll inherit a treasury depleted by the global drop in the price of oil, Nigeria’s biggest export. He will be responsible for figuring out how to put Boko Haram down for good, and what to do about the legions of people that have fled across Nigeria and over its borders. And he’ll be up against an entrenched political culture in Nigeria that’s allowed corruption to flourish for years. Fulfilling an election promise of change, in short, will be a lot harder than making one. “He’s going to struggle with all of the programmes he’d like to deliver, honestly, in the current economic climate,” said Dawn Dimowo, a Nigeria-based Analyst for Africa Practice Consultancy. “And I think Buhari himself recognises this.” This was Buhari’s fourth shot at the presidency, and he won by building a coalition of his hardcore supporters in Nigeria’s north, where he’s from, while

winning states he’d previously failed to in the country’s southwest and central belt. Jonathan, in turn, only won his home state and its neighbors in the Niger Delta, along with states in the southeast and a few in the middle. “They built a political machine that spanned the length and breadth of most of the country,” political commentator, Chris Ngwodo said of Buhari’s campaign. “That was probably the game changer in all of this.” On the campaign trail, Buhari promised universal health care and monthly $25 payments to vulnerable people. His party erected billboards with a simple message: “we will defeat Boko Haram,” and said he’d never let the group overrun territory in the country’s northeast again, as it was able to do on Jonathan’s watch. But when Buhari moves to the capital, Abuja in May, he’ll be inheriting a budget ravaged by the global slide in crude prices. The price of oil, which makes up 70 percent of Nigeria’s government revenue, is now fetching a paltry price of around $50 per barrel. “He’s going to be inheriting a very depleted account,” said Chuba Ezekwesili, Research Analyst at the Nigeri-

an Economic Summit Group. “Tax collection,” which would insulate the state and federal government from oil price shocks “is down and it’s going to remain down for a long time. That’s not going to change in the near future,” he added. Similarly battered is Nigeria’s currency, which has lost ground against the dollar thanks to oil, thus hurting Nigeria’s foreign reserves. “Nigerians will have to exhibit a bit of patience and not expect immediate relief from the government,” said Idayat Hassan of the Centre for Democracy and Development West Africa. “There might have to be structural adjustment, there might have to be austerity.” Big social spending programmes, such as universal health care, may have to wait, Ezekwesili said. Nigeria’s struggling finances makes Buhari’s task of rebuilding the Northeast — crucial to making sure Boko Haram goes away for good — even harder, Dimowo said. The group started taking over territory last year, eventually overrunning an area about the size of Belgium. Earlier this year, Nigeria joined with armies from neighboring Chad, Niger and

Cameroon to rout Boko Haram from its hideouts, along with the help of foreign mercenaries. Meanwhile, a million displaced people are spread across the country, with some living in camps in the Northeast, relying on handouts from Nigeria’s emergency agencies or from local philanthropists. Hundreds of thousands of others are in camps in neighbouring countries. Their hometowns, as Nigeria’s military has discovered as they’ve retaken them, have been burned and looted by the insurgents. Boko Haram is on its back foot now thanks to the multinational offensive against it. But experts believe making it go away completely will require an approach that goes beyond force. “You need to address some of the issues … socio-economic factors that would allow that to happen,” Dimowo said of Boko Haram’s conquest of towns in the northeastern Borno, Adamawa and Yobe states last year. “And that, honestly, is easier said than done. It’s anybody’s guess what specific steps he will take to do that.” And the needed steps will likely be expensive. Northeastern Nigeria was overwhelmingly poor long before

Boko Haram emerged. Analysts agree that one way Buhari can help stabilise Nigeria’s finances is to cut down on the corruption that keeps the wealth of Africa’s largest economy from being spread equitably through the population. The 72-year-old campaigned on cutting down corruption, bolstered by his reputation as a no-nonsense military ruler from 1983 to 1985. How he plans to do that remains to be seen. Ngwodo said he expected Buhari to grant prosecutorial autonomy to Nigeria’s corruption watchdog, the Economic and Financial Crimes Commission, while Hassan said a constitutional clause that grants prosecutorial immunity to sitting presidents, governors and their deputies should be done away with to spur accountability. But many of the top leaders of the APC are former PDP members who defected when the party formed as a union of Nigeria’s main opposition groups in 2013. How truly different his government will be from the PDP will only be known after the May 29 inauguration.

Business Journal May 11 - 17, 2015

ICT

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International Telecommunications Union 150 Years of Communication & Innovation Overview of ITU’s History For a century and a half since 1865, the International Telecommunication Union (ITU) has been at the centre of advances in communications – from telegraphy through to the modern world of satellites, mobile phones and the Internet. The story of ITU is one of international cooperation, among governments, private companies and other stakeholders. The continuing mission is to achieve the best practical solutions for integrating new technologies as they develop, and to spread their benefits to all. From telegraph to telephone For thousands of years, the quickest method of sending complex messages over long distances was with a courier on horseback. At the end of the 18th century, Claude Chappe inaugurated a network of visual semaphore stations across France. Then came the electrical revolution. Experiments were conducted in sending electric signals along wires, and in 1839, the world’s first commercial telegraph service opened in London with a system created by Charles Wheatstone. In the United States, Samuel Morse used the new Morse code to send his first telegraph message in 1844. Already in 1843, a precursor of the fax machine for transmitting images had been patented in the United Kingdom by Alexander Bain. Delegates at the first International Telegraph Conference (Paris, 1865) (Source: ITU)

Telegraph wires soon linked major towns in many countries. A submarine telegraph wire (coated in protective gutta percha) was laid between Britain and France in 1850, and a regular service inaugurated the following year. In 1858, the first transatlantic telegraph cable was laid. But there was a problem. Where lines crossed national borders, messages had to be stopped and translated into the particular system of the next jurisdiction. To simplify matters, regional agreements began to be forged, and in Europe, representatives of 20 States gathered in Paris at an International Telegraph Conference to find ways to overcome barriers and make services more efficient. They would create a framework to standardize telegraphy equipment, set uniform operating instructions, and lay down common international tariff and accounting rules. On 17 May, 1865, the first International Telegraph Convention was signed in Paris by its twenty founding members, and the International Telegraph Union (the first incarnation of ITU) was established to supervise subsequent amendments to the agreement. That significant date – 17 May – eventually became World Telecommunication and Information Society Day. ITU based in Switzerland The 1868 International Telegraph Conference, in Vienna, decided that ITU

would operate from its own bureau in Berne, Switzerland. It began with just three members of staff. In 1948, the headquarters of ITU were moved from Berne to Geneva. Only a decade later, the next leap forward in communications occurred with the patenting of the telephone in 1876. At the International Telegraph Conference held in Berlin in 1885, ITU began to draw up international legislation governing telephony. An article added to the Telegraph Regulations specified five minutes as a unit of charge, and the length of a call was limited to ten minutes if there were other requests to use the telephone line. Telephones meant you could actually speak to another person over long distances, as well as sending Morse code telegraphs. But what if a wire could not reach them, for instance, on a ship? In 1880 at the Royal Society in London,David Edward Hughes demonstrated what was later to be recognised as wireless signaling. Practical experiments began to be made in the 1890s by such inventors as Nikola Tesla, Jagadish Chandra Bose, Alexander Stepanovich Popov and Guglielmo Marconi. Radio, known as “wireless telegraphy,” was born. Inventors of "wireless telegraphy" [clockwise from top left] David Edward Hughes, Nikola Tesla, Alexander Stepanovich Popov, Guglielmo Marconi, and Jagadish Chandra Bose Radio Gradually, the range of radio signaling increased, and Marconi made a one-

way transatlantic transmission in 1901. The first experimental transmission of the human voice was achieved in 1900 by Aubrey Fessenden, who also made the world’s first broadcast of voice and music in 1906. However, problems occurred with international connections, as they had done in early telegraphy. The issue was highlighted in 1902, when Prince Henry of Prussia, returning across the Atlantic from a visit to the United States, attempted to send a courtesy message from his ship to US President Theodore Roosevelt. The message was refused by the US shore station because the ship’s radio equipment was of a different type and nationality from that onshore. As a result of the incident, the German Government called a Preliminary

Radio Conference in Berlin in 1903 with the aim of establishing international regulations for radiotelegraph communications. This preparatory event was followed in Berlin in 1906 by the first International Radiotelegraph Conference, attended by representatives of 29 nations. It decided that the Bureau of ITU would act as the conference’s central administrator, and the Radiotelegraph

ITU based in Switzerland The 1868 International Telegraph Conference, in Vienna, decided that ITU would operate from its own bureau in Berne, Switzerland. It began with just three members of staff. In 1948, the headquarters of ITU were moved from Berne to Geneva.

Business Journal May 11 - 17, 2015

ICT

grew rapidly, including for popular broadcasting. To improve the efficiency and quality of operation, the 1927 Washington conference allocated frequency bands to the various radio services (fixed, maritime and aeronautical mobile, broadcasting, amateur, and experimental). Keeping up with Progress ITU continued its technical work throughout World War I, but no international meetings took place until the 1925 International Telegraph Conference in Paris. It officially incorporated into ITU the International Long-distance Telephone Consultative Committee (CCIF), and created the International Telegraph Consultative Committee (CCIT). Two years later, the Radiotelegraph Conference, held in Washington in 1927, established the International Radio Consultative Committee (CCIR). Together, the three committees were made responsible for coordinating technical studies Section of the Bureau began operation on 1 May 1907. The 1906 conference produced the International Radiotelegraph Convention with an annex containing the first regulations in this field. These were expanded and revised by numerous subsequent conferences, and became known as the Radio Regulations. Today, given the multitude of wireless services, the regulations include more than 1000 pages of information on how the limited resource of radio-frequency spectrum – as well as satellite orbits -- must be shared and used internationally. The conference also established “SOS” as the international maritime distress call – one of the first steps in the vital field of emergency communications. But the sinking of the ocean liner Titanic in 1912 showed the need for further improvements. Just a few months after the tragedy, the 1912 International Radiotelegraph Conference, held in London, agreed on a common wavelength for ships’ radio distress signals. Also, every ship was instructed to maintain radio silence at regular intervals, when operators should listen for distress calls. Through the 1920s the use of radio

and drawing up international standards in all these fields of telecommunications. The CCIF and CCIT were merged in 1956 to form the International Telephone and Telegraph Consultative Committee (CCITT). New Name for ITU In 1932 at a conference in Madrid, it was decided that a new name would be adopted to reflect the full range of ITU’s responsibilities: International Telecommunication Union. The new name came into effect on 1 January 1934. At the same time, the International Telegraph Convention of 1865 was combined with the International Radiotelegraph Convention of 1906 to form the International Telecommunication Convention.

A UN Agency On 15 November 1947, an agreement between ITU and the newly created United Nations recognized ITU as the specialised agency for telecommunications. The agreement formally entered into force on 1 January 1949. Television John Logie Baird gave the first public demonstration of television, in London in 1925. A decade later, his mechanical device was superseded by the electronic television systems of Vladimir Zworykin and Philo T. Farnsworth, developed in the United States using cathode ray tubes originally created by Karl Ferdinand Braun some 40 years earlier.

Business Journal May 11 - 17, 2015

CSR Digest

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Why Do Companies Engage in Corporate Social Responsibility?

he collapse of the Rana Plaza factory in Bangladesh exposed the unsafe working conditions that garment workers endure across the developing world. The tragedy also revealed the inconsistencies of some companies with respect to corporate social responsibility (CSR). Take the case of Walmart. A month after the disaster, it refused to sign on to the safety measures adopted by more than a dozen European firms. Those companies, including H&M, Carrefour and Marks & Spencer, backed a plan in which they agreed to have rigorous, independent inspections of the factories they contract with in Bangladesh and to help pay for improvements in building safety. Gap, too, has been particularly vocal in its opposition to the initiative. The world’s third-largest apparel company says it supports much of the plan, but has suggested a change to it that would significantly restrict any legal liability for a company that violated it. (Gap did not use workshops in Rana Plaza. Walmart has said that no authorised Walmart production occurred there, but one of the factory’s workshops, Ether Tex, listed the retailer as a customer on its website.) Walmart and Gap, along with oth-

er retailers and the main retail federations, are forging their own plan to promote safety in Bangladesh’s apparel industry. This effort will seek to “develop and implement a new program to improve fire and s a f e ty regulations in the garment factories of Bangladesh,” according to the Bipartisan Policy Center, the non-profit group that is spearheading the plan. Despite their high-profile -- and widely criticised -- resistance to the originally proposed safety measures, Walmart and Gap would no doubt be quick to cite their initiatives in other areas: Gap is often considered an industry leader in CSR, and both companies have proclaimed themselves as champions of efforts promoting women. Two years ago, Walmart launched its Global Women’s Economic Em-

powerment Initiative, which doubled the money the firm spends on women-owned businesses and provides

women around the world with job training and access to ed-

ucation. Gap has instituted PACE (Personal Advancement & Career Enhancement), a programme to help female garment workers in developing countries advance beyond entry-level positions. To some, the companies’ rejection of the European plan -- while also touting these kinds of social programmes -appears contradictory, even hypocritical. A cynical view might be that when firms trumpet their efforts to produce organic foods, sell fair-trade T-shirts or just make the world a better place, they are diverting attention away from the more unseemly elements of their

business strategies -- such as polluting the air, manufacturing goods in unsafe factories or exploiting workers with low wages. “You can look at the ways in which companies selectively engage with certain CSR issues as being hypocritical, sure, but at the end of the day, as a company, you can’t put money into everything,” says Americus Reed, Professor of Marketing at Wharton. “Rational decisions are being made. It’s not a conspiracy or manipulation.” Judging a company’s CSR record as an investor, customer or prospective employee requires both skepticism and understanding, he notes. Resources are scarce, and companies make CSR decisions as part of a complex business process. “For people who see companies doing one thing with their right hand and doing another thing with the left, the question is: What is your more moral calculus? Does the good outweigh the bad? It’s not realistic to expect perfection. What we should be looking for is a company that has good values and takes a long-term perspective over the pursuit of short-term profit.” Social Impact Vs PR Spin Companies invest in CSR to manage their risk, recruit employees, bolster their brand in the eyes of investors and

consumers, ease their supply chains, save money, increase access to capital, differentiate themselves from competitors and --sometimes -- because it’s just the right thing to do. Wesley Hutchinson, Faculty Director of the Wharton Behavioral Laboratory, recently conducted a survey which asked executives to explain why they embark on CSR initiatives from the perspective of corporate strategy. Respondents were allowed to cite more than one reason and about 80% said they do so to improve their “general corporate reputation.” The second most popular reasons for investing in CSR was that it “directly affects brand image for [their] products and services” and that CSR is a “matter of good corporate citizenship.” Executives also said that investments in CSR “help attract and retain desired employees” and “directly affect sales and profits for our products and services.” These days, the website of every Fortune 1000 company has some form of CSR report. Most use the detailed principles of the Global Reporting Initiative, a non-profit that develops and disseminates sustainable reporting guidelines. Source: Economic Times (India)

Great Companies, Great CSR Reputations Jacquelyn Smith

n today’s reputation economy, what you stand for as a corporation often matters more than what you produce or sell. Hard to Believe? This was confirmed in June when Reputation Institute, a private global consulting firm based in New York, invited about 47,000 consumers across 15 markets to participate in a study that ranked the world’s 100 most reputable companies– all multinational businesses with a global presence. In addition to finding the companies with the best reputations, the study discovered that people’s willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company, and only 40% by their perceptions of the products, says Kasper Ulf Nielsen, Reputation Institute’s Executive Partner. Each company earned a “RepTrak™ Pulse” score representing an average measure of people’s feelings for it. The scores were statistically derived from four emotional indicators: trust, esteem, admiration, and good feeling. Reputation Institute then analysed what it calls

the seven dimensions of corporate reputation, including workplace, governance, citizenship, financial performance, leadership, products and services, and innovation. Three of the seven dimensions that drive reputation (citizenship, governance, and workplace) fall into the CSR category—and analysis shows that 42% of how people feel about a company is based on their perceptions of the firm’s corporate social responsibility practices. “CSR speaks to who the company is, what it believes in and how it is doing business,” Nielsen says. “Companies that are able to get recognition for the softer sides of their business are on the right path to building a

sustainable business for the future.” That’s why Reputation Institute decided to separately rank and honor the corporations with the best CSR. Through an online questionnaire, consumers were asked to evaluate to what extent they agree with the following three statements: ‘Company’ is a good corporate citizen — it supports good causes and protects the environment; ‘Company’ is a responsibly-run company — it behaves ethically and is open and transparent in its business dealings; and ‘Company’ is an appealing place to work — it treats its employees well. It turns out the corporation with the very best CSR is Microsoft, the Washington-based software giant. “It’s a tremendous honor and one that we’re very proud to receive,” says Dan Bross, Microsoft’s Senior Director of Citizenship and Public Affairs. “Being ranked the No. 1 com-

pany for CSR in this report is especially meaningful, since the data comes directly from surveys of the general public. Our citizenship mission is to serve the needs of communities around the world and to fulfill our responsibilities to the public. This has been part of our DNA for the past 30-plus years. Being recognised by the Reputation Institute really shows that our efforts are making a positive impact on people in our own backyard and around the world.” Bross says being a responsible global corporate citizen is a commitment made at all levels of the company. “It’s not just a top-down effort and it’s not just a grassroots effort – it’s important to all of us.” How did Microsoft Earn the Best CSR Reputation? “I think this is really a testament to our employees worldwide and the difference they make in their local communities,” Bross says. “While we have a small Citizenship team here at the corporate level, we have Citizenship Leads across the globe and they work daily in collaboration with a wide range of stakeholders on a range of issues important to local communities. Microsoft works with governments, investors, non-profits,

and a wide range of other organisations including BSR, the Boston College Center for Corporate Citizenship, CSR Europe, the Clinton Global Initiative, Net Impact, and the World Economic Forum. “Another factor of our success is our employees’ passion for supporting their communities and causes through charitable giving and volunteering,” he adds. In fiscal year 2012, 93% of employees reported feeling that Microsoft is a good corporate citizen in their communities and around the world. “Our employees and our partners—approximately 640,000 small to mid-size businesses around the world—are our best ambassadors when it comes to sharing the positive results of our CSR work around the world.” In September 2012, Microsoft refocused much of their efforts around creating opportunities for youth by launching Microsoft YouthSpark, a major initiative to connect hundreds of millions of youth with opportunities for education, employment and entrepreneurship. The company is working to bridge the opportunity divide that separates youth who have opportunities from those who don’t, with the goal of helping young people secure their in-

dividual futures and also the future of our global economy, Bross says. In October 2012, Microsoft celebrated their 30th Employee Giving Campaign and announced the milestone achievement of $1 billion in employee contributions (inclusive of company match) to more than 31,000 nonprofits around the world since 1983. Microsoft employees in the U.S. have also volunteered more than 2 million hours of their time to causes they care about since Microsoft began their volunteer match program in 2005. In total, they’ve provided more than $6.5 billion in cash, services and software to non-profits around the world since 1983, Bross says. And their CSR Efforts are Paying Off In 2012, the company reported revenue of $73.7 billion, an increase of $3.76 billion from the previous year. “Positive revenue growth is clearly a factor of many things, most significantly our product strategy and our ability to deliver great technology solutions to the market.

ThePovertyGap

Business Journal May 11 - 17, 2015

www.businessjournalng.com

Will 45m Poor Americans Determine 2016 Presidential Race?

n a presidential campaign where candidates are jockeying to be champions of the middle-class and asking wealthy people for money, the problems facing the poor are inching into the debate. Tensions in places such as Baltimore and Ferguson, Missouri, have prompted candidates to explore the complicated relationship between poor communities and the police, and the deep-seated issues that have trapped many of the 45 million people who live in poverty in the United States. But addressing the long-running economic, education and security troubles in under-privileged neighbourhoods is a challenge with few easily agreed upon solutions. A frustrated President Barack Obama challenged the nation to do “some soul-searching” after riots in Baltimore followed the death of 25-year-old Freddie Gray in police custody. There have been other deadly altercations between police and black men or boys in Ferguson, New York’s Staten Island, Cleveland and North Charleston, South Carolina. “I’m under no illusion that out of this Congress we’re going to get massive investments in urban communities,” Obama said. “But if we really want to solve the problem, if our society really wanted to solve the problem, we could.” To some of the Republicans running to replace Obama, his call for spending more money in poor areas underscores the problem with many current anti-poverty programmes. The GOP largely opposes new domestic spending and party officials often say federally run programmes are bloated and inefficient. “At what point do you have to conclude that the top-down government poverty programmes have failed?” said Jeb Bush, the former Florida governor and expected presidential candidate. “I think we need to be engaged in this debate as conservatives and say that there’s a bottom-up approach.” Republicans have struggled in recent years to overcome the perception that the party has little interest in the plight of the poor. Mitt Romney, the GOP presidential nominee in 2012, was criticised for saying he was “not concerned about the very poor” and said that it was not his job to worry about the 47 percent of Americans who he said “believe that government has a responsibility to care for them.” More than 60 percent of voters who made less than $30,000 per year backed Obama over Romney in that campaign, according to exit polls. Blacks and Hispanics, who overwhelmingly backed Obama in the past two presidential elections, are most likely to be poor. According to the census, about 27 percent of blacks and 25 percent of Hispanics were poor in 2012, compared with 12.7 percent of whites. Bush has been among the most vocal Republicans discussing the need to lift the poor out of poverty and reduce income inequality, though he has yet to flesh out many of his policy proposals. He has been most specific about the

Following the Baltimore turmoil, Hillary Rodham Clinton made a plea for criminal justice changes that could aid urban communities. Among her ideas: equipping every police department with body cameras for officers. She said the unrest was a “symptom, not a cause” of what ails poor communities and she called for a broader discussion of the issues. Former Maryland Gov. Martin O’Malley, who is expected to challenge Clinton for the Democratic nomination, has been at the center of the discussions about Baltimore’s issues. He was Mayor from 1999 to 2007 and enacted tough-on-crime policies. While O’Malley is not backing away from those practices, he is trying to put criminal justice issues in a larger context. He wrote in an op-ed that the problem in Baltimore and elsewhere is as much about policing and race as it has about “declining wages and the lack of opportunity in our country today.” In some places that have dealt with recent unrest, residents say they welcome the campaign discussions on poverty and policing, but hope the is-

Obama

need for greater educational choices and opportunities. Bush frequently cites his work in Florida, where he expanded charter schools, backed voucher programs and promoted high testing standards. Kentucky Republican Senator Rand Paul has long called for overhauling criminal sentencing procedures that he says disproportionately imprison low-income black men. He has promoted “economic freedom zones” where

taxes would be lowered in areas with high long-term unemployment in order to stimulate growth and development. Paul, who has made a point of reaching out to black communities, has drawn criticism for comments he made during the Baltimore unrest. In a radio interview, Paul said he had been on a train that went through the city and was “glad the train didn’t stop.” Sen. Marco Rubio of Florida also has talked frequently about the poor. His

anti-poverty proposals include consolidating many federal programmes to help the poor into a “flex fund” that states would then manage. Democrats, too, are trying to incorporate plans for tackling poverty into economic campaign messages that otherwise centre on the middle class.

Clinton

sues will not fade away when the next big campaign focus arises. “Hopefully these protests are something they’ll wrap themselves around, and we can make sure these issues get addressed,” said Thavy Bullis, a Baltimore college student.

Business Journal May 11 - 17, 2015

Healthcare www.businessjournalng.com

WHO: Air Pollution Costs European Economies $1.6tn a Year

staggering US$ 1.6 trillion is the economic cost of the approximate 600 000 premature deaths and of the diseases caused by air pollution in the WHO European Region in 2010, according to the first-ever study of these costs conducted for the Region. The amount is nearly equivalent to one tenth of the Gross Domestic Product (GDP) of the entire European Union in 2013. The new study was published today by the WHO Regional Office for Europe and the Organisation for Economic Co-operation and Development (OECD) as a 3-day high-level meeting on environment and health in Europe opens. Over 200 representatives from European countries and international and non-governmental organisations gather in Haifa, Israel, on 28–30 April 2015 to look at achievements, gaps and challenges and set future priorities. “Curbing the health effects of air pollution pays dividends. The evidence we have provides decision-makers across the whole of government with a compelling reason to act. If different sectors come together on this, we not only save more lives but also achieve results that are worth astounding amounts of money,” says Dr Zsuzsanna Jakab, WHO Regional Director for Europe. “Cross-sectoral work is the backbone of the environment and health process, which was initiated 26 years ago, and it is even more relevant today in the discussions taking place at this meeting in Haifa.” A Ground-Breaking Report: Economic Cost of the Health Impact of Air Pollution in Europe Economic cost of the health impact of air pollution in Europe is the first assessment of the economic burden of deaths and diseases resulting from outdoor and indoor air pollution in the 53 countries of the Region. The economic cost of deaths alone accounts for over US$ 1.4 trillion. Adding another 10% to this, as the cost of diseases from air pollution, results in a total of almost US$ 1.6 trillion. In no less than 10 of the 53 countries of the Region, this cost is at or above 20% of national GDP. The study uses the methodology applied in a 2014 report by OECD and makes the calculations based on the most recent economic estimates of the health impacts of air pollution. The economic value of deaths and diseases due to air pollution – US$ 1 600 000 000 000 – corresponds to the amount societies are willing to pay to avoid these

Protection’s Clean Air Law regulates pollutants from major sources such as transport, industry and energy in accordance with the most stringent standards. The Ministry aims to use all available resources to reduce air pollution, as this means saving the lives of thousands of people, as well as billions to the Israeli economy.”

deaths and diseases with necessary interventions. In these calculations, a value is attached to each death and disease, independent of the age of the person and which varies according to the national economic context. Air Pollution: The Single Largest Environmental Health Risk Over 90% of citizens in the Region are exposed to annual levels of outdoor fine particulate matter that are above WHO’s air quality guidelines. This accounted for 482 000 premature deaths in 2012 from heart and respiratory diseases, blood vessel conditions and strokes, and lung cancer. In the same year, indoor air pollution resulted in an additional 117 200 premature deaths, five times more in low- and middle-income countries than in high-income countries. “Reducing air pollution has become a top political priority. Air quality will be a key theme at the next Environment for Europe Ministerial Conference in Georgia in 2016”, says Mr Christian Friis Bach, Executive Secretary of the United Nations Economic Commission for Europe (UNECE).

“Fifty-one countries are today finding joint solutions in the framework of the UNECE Convention on Long-range Transboundary Air Pollution. This work must be strengthened to reduce air pollution even further and extended to more countries and to other regions.” “About 2500 people are esti-

mated to die in Israel annually as a result of exposure to air pollutants. The main source of air pollution is transportation, mainly in major city centres,” says Mr. Ofir Akunis, Deputy Minister of Environmental Protection and Member of Knesset (Parliament) for Israel. “Since 2011, the Ministry of Environmental

Improving environment and health in Europe: how far have we gotten? The cost of the health impacts of air pollution is only one of many studies that will provide evidence on the environmental impacts on health to be released at the Haifa meeting. Another new report, Improving environment and health in Europe: how far have we gotten? jointly published by WHO and UNECE, informs that one in four Europeans still falls sick or dies prematurely from environmental pollution. Data from several surveys in priority thematic areas such as water and sanitation, air quality, the day-to-day surroundings of children’s lives, chemicals and asbestos, climate change and health inequalities all show that while progress has been remarkable, it has been uneven.

Business Journal May 11 - 17, 2015

Stock Market

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Courtesy: AFRINVEST Research

Business Journal May 11 - 17, 2015

Non Oil

Sector

Digest

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NIGERIA: The Cocoa Option Overview Nigeria is the fourth-largest producer of cocoa beans in the world, behind Côte d’Ivoire, Ghana and Indonesia. After petroleum, cocoa is the country’s most important export – before independence, cocoa generated 90% of Nigeria’s foreign exchange earnings. Eclipsed these days by oil as the country’s major export, Nigeria still produces 300’000-350’000 tonnes of cocoa a year, most destined for consumption abroad – the country exports about 96% of its cocoa crop. Cocoa exports for October-March 2009/10 were up 31% on the previous year, helped by good weather conditions and improved quality in stock in the growing regions. Fourteen of Nigeria’s 36 states grow cocoa: Abia, Adamawa, Akwa Ibom, Cross River, Delta, Edo, Ekiti, Kogi, Kwara, Ogun, Ondo, Osun, Oyo and Taraba. Stakeholders and Programmes for Growth

Despite cocoa’s importance in the years before independence, the sector was allowed to decline after the oil boom of the 1970s and suffered for decades from under-investment. The cocoa industry was liberalised in 1986, when the government abolished the Nigerian Cocoa Board, a government bureau that controlled the marketing of cocoa, and deregulated the industry. The decline continued, however, so to rehabilitate the industry, in 1999 the government set up the National Cocoa Development Committee (NCDC). The NCDC promotes cocoa production and trade in cooperation with the various growers’ agencies operating in the industry, like the Cocoa Association of Nigeria (CAN), the Cocoa Farmers Association of Nigeria (CFAN) and the Cocoa Growers Association of Nigeria (COGAN). The Cocoa Research Institute of Nigeria (CRIN) is another major stakeholder in the sector: established in

1964 as a government parastatal, the Institute conducts research on cocoa, distributes seedlings to farmers and trains growers in modern agricultural practices as well as in business development skills. Courtesy: Corporate Nigeria

Business Journal May 11 - 17, 2015

Analysis

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ENTREPRENEURSHIP

WITH MUIDEEN ADEBAYO IBRAHIM

People Make It Happen According to Michael Jordan, “some people want it to happen, some wish it would happen, others make it happen.”

rankly speaking, employees make it happen, though you may be loaded with ideas, facts and what have you but in the long run, your employees will eventually carry out most of the tasks in order to achieve the desired goals and/or objectives. Employees are just like computer (garbage in, garbage out), the way and manner you treat them will determine the results you will get in the long run. How well do you understand the needs of your employees? What motivates them and contributes to their morale? How can we be sure as entrepreneurs that we secure that discretionary effort from people at work? Getting the most from people means seeking to understand those factors that have an impact on employee performance and satisfaction as well as looking at concepts such as motivation and morale. It is an established fact that if your labour turnover is high, that is a signal that something

is wrong in your system and you must correct it promptly before it snowballs into another thing or better still, invite an expert to look into it. Fredrick Herzberg’s research in 1959 asked people what they wanted from a job. The responses suggested that the replies that people gave when they felt good about their jobs were significantly different from the replies they gave when they felt bad. In the light of the foregoing, Herzberg proposed that people have two separate “needs systems.” That is; a need to avoid unpleasantness (hygiene factors) and a need for personal growth which is satisfied by motivation (motivator factors) and not by hygiene factors. According to Herzberg, hygiene factors or maintenance factors are; company policy and administration, salary, the quality of supervision, interpersonal relations, working conditions and job security. Hygiene factors must be con-

tinually reviewed in order to get the best from your employees or else there will be dissatisfaction amongst the employees. On the other hand, Herzberg posited further that personal growth or motivator factors actively create job satisfaction and motivate an individual to superior performance and effort. These factors include; status, advancement, gaining recognition, being given responsibility, challenging/ interesting work, achievement and growth in the job. It should be noted that failure of an entrepreneur to take cognisance of the factors enumerated above, the labour turnover will continually be very high and that is a red alert or an indication that all is not definitely well with your organisation since people make it happen. Satisfying the motivators should, according to Herzberg, raise output and motivate an individual to superior performance Without people skills, you are dead in the water. You are just like an artist in control of a busi-

ness that is made up of people. Do not see yourself as a ‘Tin God’ because “it is not easy to get to the top and it is not equally easy to remain there permanently,” hence you must treat all your employees with optimum respect and courtesy. You must create a successful business environment that will allow everyone to work together toward a common goal. That goal is the success of your business. Hence avail your employees your Vision, Mission, Core Values, Goals and Objectives to work in tandem with them and to avoid working at crossroads or purposes. The Law of Cause and Effect tells us that for every action, there is an equal and opposite reaction. It is an established fact that we get back what we put in. The same rule applies to managing people. Though managing people can be a real challenge, because some people will be happy whilst others will be sad, some people will be co-operative, whilst some people will

work against you. Some people will be hard workers whilst some will hardly work. It is your job as a good entrepreneur to determine what makes those people tick and do everything in your power to help them do their job the way they are supposed to. It takes serious courage and psychological effort to learn how to manage people. Infact, you must imbibe the 3 Fs that is; you must be: Firm, Frank and Friendly. According to Streetwise Business Management, a good manager needs to have the following: understanding, listening skills, leadership, a sense of humour, common sense, a sense of fairness, honesty, communication skills, a sense of encouragement, ability to delegate, organisational skills, creativity and positive attitude. You must be a friend and a leader because if you think an employee is behaving badly as a result of personal problem or challenge, it is better

to let the employee know you do sympathise with his or her problem, but you also must stress that, he or she has a job to accomplish. Be supportive, but be a leader at the same time. Offer creative solution that you think can be of help to the employee. This will make the employee to do his or her job very well because you sympathise with him or her. However, you must be wary of some behavioural traits of your employees and such traits include; jealousy, low self esteem, feeling guilty, anger, depression and health issues amongst others. See you at the top! It is well! Muideen Adebayo Ibrahim is the Founder and CEO of LIBRA CONSULTING and can be reached via: muideenibrahim2004@yahoo. com or 08037221517 (SMS only)

DOMINANT TRAIT ANALYSIS (D.T.A): Managing Different Behavioural Patterns of People.

his is a continuation of our Trait Analysis, as a veritable tool for managers, HR practitioners, project managers, leaders, church or mosque administrators, etc. alike in understanding the different behavioural propensities open to them, all emanating from the various dispositions they exhibit, especially in interpersonal situations. As already established in Part One of this write-up, no two persons are the same, not even twins. It stands to reason, therefore, that one cannot expect two people to react the same way, to the same issue, especially at the same given time. The more people are to react to same issue, the more different their reactions would be. Over non-payment of salaries, for example, in the same office, or unit, or even department, it is almost obvious that we would see just different scenarios. While one person may become vociferous, another may become aggressive, another may maintain philosophical equanimity, another may become withdrawn and detached like a recluse, yet another unperturbed, etc., all reflecting the various and different dispositions of such persons. A smart manager or leader should be able to understand this and turn and tune such person to behave the way he or she wants, so as to get results. Specifically, Dominant Trait Analysis

can be used as follows: AN EXTROVERT: This is somebody controlled by feelings, i.e. his/her feeling determines whether an action or intention is right or wrong. Such a person is also easy-going, socialise, and likely as a result to be restless. He or she has the energy to talk loquaciously and relate with people in a lively manner, when in the mood. When he or she is annoyed or excited, (s) he talks at the top of his/her voice. When not in the mood, it is the seemingly “lifeless” opposite you see. The extrovert talks so much that wittingly or unwittingly, he/she over-talks, such that even a secret is divulged most of the time unintentionally. In terms of love relationship, when there is a case of cheating, where he or she is affected, the reaction is usually aggressive, or scene-creating. If there is an accident involving what belongs to an extrovert, and such is announced, his/her primary concern is the safety of his/her thing. He/she can be careless with funds, which is also spent as he/she feels. Watch out, an extrovert eats anyhow, and definitely a lot. In terms of love life, he /she is a great lover, when in the mood, and a lousy terrible lover when in a bad mood. Remember, he/ she is a mood-controlled or influenced person. So, never keep your secret with such a person, same goes for funds etc., ex-

cept if you notice a high level of discipline or maturity in such a person. In terms of responsibility or assignment, the extrovert is best given an MC or anchor man’s job. THE ANALYTICAL: This person has as holistic orientation, likely to be very thorough in disposition. He/she is never in a hurry to take action; thinks through the issue and carefully considering the various parts or parties that may have direct bearing on the issue at hand. He/she cannot be rushed into taking a decision; would take his/her time. He/she is not cut out for fast decision-making, may even feel uncomfortable or suspicious when asked to do such. Accountants are usually analytical; they probe to a fault before approving, or endorsing a request. They investigate an incident before making their position known. Holistic persons can be safely saddled with funds-keeping or what you call accounts-handling or treasury functions. THE AMIABLE: This is someone who is relationship minded, who does not want or like pain. He/she will rather suffer, than watch someone he interfaces with experience it. He /she would readily give up his/her convenience so that the other person gets a smile. Such is seen when an amiable

chooses to go hungry so that the other person can eat, give up her possession, so that the other person can be happy, buy from a vendor who has been on the road, in the sunny traffic all day, when he/she does not really need that item. Human life or safety is more important that even possessions, even if such are affected or at stake, or involved. Spouses who are amiable, easily find a heart to forgive a crime, or a sin. And they can have this disposition to a fault, as at times, they are taken for granted. In terms of management, they are best and most useful for fund-raising activities/humanitarian projects. THE PRAGMATIC: This is a result-minded person, whose bottom-line is the benefit justifying the cost. He/she goes to any extent or length to prove a point, could throw morality or fairness to the wind in the process, insofar as the end justifies the means. He/she can therefore be intimidating and often desperate, not minding initially the possibly grave consequences of such action(s). In getting results, which he/she unrepentantly have his/ her eyes on, he/she could be wasteful with resources. He/she normally has a bossy or domineering tendency, and may not be co-operative, if not in charge or playing a domineering or lead role. He/she believes he has an edge over the average

person in the team or group, and hinges this belief on being better exposed to, or informed, of strategy, especially the one in this case. A pragmatic person, managementally speaking, is better giving an assignment that is high profile results port folio. He/she is better off in a warfare–related assignment. Come to think of it, you can afford not to use a pragmatic person in a military bombardment or dislodgement assignment, as in the classical case of the Federal Government’s on-going war against insurgency in the country. THE INTROVERT: As described, the introvert is a withdrawn person, a recluse or hermitic person. He /she is the direct opposite of an extrovert. He is too quiet, could feel uncomfortable or ill-at ease, in the presence of others. Usually shy, he/she is publicity shy, camera-shy, does not want to be asked or called to come and do anything in the public, could hide his/her real feeling of anger, hatred, vengeance, etc. and could patiently wait for an opportunity to unleash revenge, or punishment, etc. on the offending party. Interesting, unlike the others, especially the extrovert, the introvert, could be loyal and faithful to a project or idea, or in a relationship. Even when juxtaposed, he/ she is better most of the time, than the extrovert. In managing

an introvert, he/she is top-rated keeper of secret, so can safely and conveniently be a confidential secretary, filing secretary, also reliable as a P.A. THE CYNICAL: This is a natural doubting “Thomas”; he/she, as a pessimist, has misgivings about the possibility of an idea getting through or out- rightly succeeding. On any idea, or conception, his/her first reaction is a seemingly carefully imagined or considered reason(s), or as the case may be, a plethora of reasons why it cannot work. And where it turns out as he/ she had thought or forewarned, it is as if he/she was clairvoyant. This disposition naturally cuts him/her off from the mainstream of the activity or project, as he/she persistently sees the seemingly inherent failure of the project. To manage the cynical, he/ she has to be relied on to see what has not been factored into a project, so that he can tell others what they have left out, and what has to be done promptly, to ensure a reversal of the failure-likelihood. He/she has to be in a team that has a hard nut to crack before, and during a project execution. Having, explained all this, it is necessary to say that, for every general rule, there is an exemption, such, that at times, each of these persons acts in a way that is an obvious departure or opposite of what his/her trait is.

Business Journal May 11 - 17, 2015

Books Arts Culture www.businessjournalng.com

ASSOCIATION OF NIGERIAN AUTHORS 2015 ANA Prizes: CALL FOR ENTRIES The Association of Nigerian Authors [ANA] hereby announces a range of prizes for its 2015 literary competitions. These are: 1. ANA Prize for Poetry (published & unpublished) – N 100,000. 2. ANA Prize for Prose Fiction (published & unpublished) – N 100,000. 3. ANA Prize for Drama (published & unpublished) – N 100,000. 4. ANA Prize for Literary Journalism – N 100,000 (Deadline: August 30, 2015). 5. ANA\NECO Teen Author Prize (prose) N 100,000.00 (published & unpublished works). 6. ANA\Mazariyya Teen Authors Prize (poetry) N 50,000.00 (published & unpublished works). ANA is pleased to introduce two new prizes, endowed by Mrs. Maria Ajima and Dr. Wale Okediran, respectively: 7. Maria Ajima Prize for Literary Criticism (Focus on African Literature) – N100,000 8. ANA Abubakar Gimba Prize for Fiction (short stories) – N200,000. Nigerian writers, home and abroad, desirous of entering their works for the Annual Literary Prizes, may now do so. Works entered should have been published between March 2014 and March 2015. REQUIREMENTS 1. An entry fee of N3,000 per entry, paid by the author or the publisher, in favour of: Association of Nigerian Authors First Bank of Nigeria Plc [Bodija Market Branch Ibadan] Account No. 2020543538 Please Note [a] The entry fee is for the purpose of prize ad-

ministration only. [b] A photocopy of the appropriate Deposit Slip[s] MUST accompany Requirement #2 below. 2. Six copies (6) of the book or manuscript to be entered, specifying the Prize being entered for, alongside a covering letter and the photocopy of the Deposit Slip used in Requirement 1 above, should be sent by post to: The General Secretary, Association of Nigerian Authors (ANA), c/o Suite 63, National Theatre Complex, Iganmu Lagos. The covering letter should contain accurate contact details of the writer or/and publisher of the work, including email and surface mail addresses and telephone numbers. Please Note [a] The Association will NOT take responsibility for entries sent by post nor will it claim registered parcels in cases where it has to pay for such entries or parcels. [b] Multiple entries, where applicable, are allowed but a work must not

Germany: Writing About Africa

A LITERARY JOURNEY OF DISCOVERY! The books by German speaking authors deal with Africa in all its many facets. The books are of high literary quality, informative, interesting from a political point of view, representative of the image of Africa in German literature and/or have been intensely discussed during the last few years.

have been entered for the same prize prior to the present entry and it must have been published between 2014 and 2015. SPECIFIC GUIDELINES for Teen Authors Prize (published and unpublished works). 1. Entrants must be students in any secondary school in Nigeria. 2. Entries must be a collection or a single story of between 35 – 40 pages or above for prose or poetry. 3. Illustration (optional). 4. Accompanying documents are: (i) Signed letter of identification from school principal on school letterhead. (ii) Two passport photographs, name, and copy of birth certificate of the entrant. (iii) Entrant's school admission letter (photocopy). (iv) Current cumulative record of entrant’s academic performance (junior or secondary school). (v) Letter of consent from parents. (vi) Entrant’s or their guardian’s email, surface mail address and phone number.

5. Unpublished entries (in four copies) should be properly bound. 6. Teen Authors are NOT required to pay an entry fee. SPECIFIC GUIDELINES for Maria Ajima Prize for Literary Criticism (published and unpublished works) Length: Between 25-30 pages of A4 paper size following format of academic essays. 1. Type double spaced using MS Word. Use Times New Roman Type face 12 point font size. 2. The essay, if published in a journal, book or as electronic text, must be within the valid dates indicated on this call for submissions. 3. Referencing style is either the latest MLA or APA style. 4. Five hard copies as loose sheets or as a bound monograph are to be submitted to ANA, plus a soft copy sent by email to okoduwatanko@yahoo.com 5. The competition will be rotated annually in areas surrounding poetry, drama, prose fiction and theory.

6. The essay should not be of generalized survey, but should rather be focused on specific texts of a few selected authors at a time. 7. The essay should state where the texts or performance analysed can be accessed or located. In addition, all other rules pertaining to ANA competitions are applicable. Copyright: The copyright to every winning entry is to be held by the Association of Nigerian Authors (ANA), Maria Ajima Trust, and the author of the work. The winning entry will be published in subsequent ANA Reviews. SPECIFIC GUIDELINES for ANA Abubakar Gimba Prize for Fiction [Short Stories]. 1. Only published work are accepted. 2. Seven [7] copies of each entry are to be sent in. 3. Entries must have been published no earlier than twenty four months BEFORE the date indicated on the call for submissions. In addition, all other rules pertaining to ANA competitions are applicable. DEADLINE Deadline for the receipt of ALL entries, excepting the Prize for Literary Journalism, for the 2015 ANA Literary Prizes is Friday, May 22, 2015. A shortlist will be announced in September, 2015. Winners of the prizes will be announced by the judges at the Awards Dinner during the 34th International Annual Convention of the Association of Nigerian Authors in October/ November, 2015.

British Council: Creative Industries Development Creative Industries Development Creative Industries Development The ambition behind our work in the Creative Industries has been to celebrate successes of practitioners in the sector, encourage broader participation and support the building of knowledge and capacity necessary to strengthen the sector. This has involved working with industry experts, policy makers and stakeholders to facilitate wider understanding and awareness of the issues and opportunities available. Creative Industries Expo The Creative Industries Expo started in 2011 as an annual platform to raise the profile of the Nigerian Creative Industry through discussion and debate. The expo also created a forum for exhibition of Nigeria creativity and networking between creative entrepreneurs from Nigeria and the UK. After the 2011 expo, the Federal Ministry of Culture organised a National Policy Dialogue to drive stakeholder engagement in developing a national strategy for the creative industries. In 2012, the focus of the Expo was on

developing greater links between the finance and creative industries. The 2013 Expo focused on capacity building in the sector and saw a host of industry leaders and trailblazers from Nigeria and the United Kingdom discuss a number of issues affecting the development of the creative industries, as well as examining current policies and recommending measures to improve training and support for the sector. Creative Industries Mapping In 2010, the British Council began work with various stakeholders to

carry out a comprehensive mapping exercise of the Nigeria creative industries. The output of this exercise will serve both as an economic planning tool and a driver for discourse on the future of the sector. In 2011, a working group including the British Council, Society for Nigeria Theatre Artistes, the National Bureau of Statistics and the Pan African University was set up to implement the mapping exercise with the support of Professor Andy Pratt, an expert on Creative Economies from Kings College, London.

Business Journal May 11 - 17, 2015

Maritime www.businessjournalng.com

Business Journal May 11 - 17, 2015

Automobile www.businessjournalng.com

The Beautiful Cars of 2015

Picures:

Top: BMW M235i 2nd row: Mazda 3 (Left), Mazda 6 (Right) Bottom: Volkswagen Golf/GTI

Business Journal May 11 - 17, 2015

Obituary

Celebration of Corporate Death

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Savannah Bank:

Dead of Alive? The decision of the Central Bank of Nigeria (CBN) not to appeal the judgment of Court of Appeal restoring the operating licence of Savannah Bank of Nigeria Plc opened the way for the return of the bank. It also signals the end of one of the controversial chapters in the history of banking in Nigeria. However, the N25 billion capitalisation requirement for banks has become an albatross on the neck of the bank.

Senator Jim Nwobodo Core Investor in Savannah Bank Plc

“T

he CBN as a responsible and law abiding corporate body, which earnestly believes in the rule of law and moreso, in the overriding interest of the suffering depositors, whose funds have been trapped in the past seven years, has decided not to appeal the judgment of the court and would therefore restore the operating licence of the bank.” The above statement from the Central Bank of Nigeria (CBN) was the clincher that effectively ended the seven-year saga and bitter litigations between the owners of Savannah Bank Plc and the CBN and NDIC on the other hand. With the apex regulatory body in the banking industry shying away from further litigation on the matter, the door was therefore left wide open for Savannah Bank to resurrect from the dead and continue in business. To further affirm that the seven-year siege on Savannah Bank was over, the CBN urged “the managers of Savannah Bank Plc to take all necessary measures to re-open the bank to the public as soon as possible.” The Saving Grace The saving grace for Savannah Bank was the February 5, 2009 judgment of the Court of Appeal, Abuja delivered in Abuja by Justice U. M. Abba’aji which declared the revocation of the bank’s operating licence on February 18, 2002 by the CBN and sealing of its premises nationwide by the NDIC as malicious and done in bad faith. She thereafter ordered both CBN and NDIC to pay damages worth N100 million to Savannah Bank. The Road to Golgotha The Road to Golgotha for Savannah Bank Plc began in 2002.

Emefiele

Obasanjo The morning of February 18, 2002 seemed like any other day of business for the management, staff and customers of Savannah Bank of Nigeria Plc across the country. They were busy transacting business oblivious of the impending doom hatching in Abuja. However, by mid-morning, a terse statement from the Central Bank of Nigeria (CBN) revoking the operating licence of Savannah Bank took the management of the bank by surprise. Shock soon turned into anxiety as the odious news soon filtered into the banking halls and town and customers began to disappear into thin air. Both the CBN and Nigeria Deposit Insurance Corporation (NDIC) which subsequently sealed the premises of the bank nationwide following the announcement from the apex bank, hinged their action on alleged insolvency of Savannah Bank. Specifically, the CBN and NDIC

Both the CBN and Nigeria Deposit Insurance Corporation (NDIC) which subsequently sealed the premises of the bank nationwide following the announcement from the apex bank, hinged their action on alleged insolvency of Savannah Bank.

accused Savannah Bank of breaching certain provisions of banking regulations. The Savannah Bank Story When Savannah Bank of Nigeria Plc was incorporated in August 1960 and listed on the floor of the Nigerian Stock Exchange (NSE) in 1985, the founding fathers probably did not envisage that their prized investment and possession would be struck off the register of banks in Nigeria in 2002 and remain clinically dead until February 2009 after seven years of diligent litigation through the hallowed temples of the judiciary. At the time its operating licence was revoked by the Central Bank of Nigeria (CBN) under the leadership of Chief Joseph Sanusi, then Governor of the CBN, Savannah Bank ranked as one of the 10 largest banks in Nigeria.

What Happened? The sudden revocation of the licence of Savannah Bank by the CBN and swift sealing of its premises nationwide by the NDIC gave rise to widespread speculations in the market and across the country that a mysterious hand was behind the decision. Such rumours were quickly reinforced by the opinion of market analysts who said the bank did not exhibit any sign of distress or insolvency to justify the clampdown. And within days and weeks, the polity was awash with allegations that Savannah Bank was indeed the victim of a power-game tussle between two political gladiators who had fallen apart. The Political Calculation Did politics actually played a role in the saga of Savannah Bank? Or was the allegation one of the usual tricks by the political class to

Business Journal May 11 - 17, 2015

Obituary

gain cheap mileage on the political terrain? The rumour mill had it that the bank was ‘dealt with’ by former president Olusegun Obasanjo to get a Pound of Flesh from Senator Jim Nwobodo who owned a sizeable equity in the bank and had fallen out of favour with the Gods at the ruling Peoples Democratic Party (PDP). Despite spirited denials by the CBN and NDIC that the action against Savannah Bank was purely on professional grounds, the allegation stuck like glue on the former president. What better way to dismantle Nwobodo and bring him down to earth than to disable his economic empire as represented by Savannah Bank?

to the Federal High Court pending the determination of its appeal. The NDIC said the judge erred in law “when he ordered the defendants to unseal and vacate the premises of the plaintiff when the same Federal High Court sitting in Lagos on an application appointed the second defendant (NDIC) a provisional liquidator which appointment is still extant.”

Mr. Tony Ede, then spokesman of the CBN issued a statement saying the CBN in conjunction with the NDIC “took “all necessary steps and have appealed these decisions and prayed the court for a stay of execution of the orders of the court until the issues of the appeal and the application for stay of execution are determined, the revocation order and the sealing of the premises of

of The Two Litigations 1: Petition To Wind-Up Savannah Bank of Nigeria Plc SUIT NO: FHC/L/CP/158/2002 NIGERIA DEPOSIT INSURANCE CORPORATION and SAVANNAH BANK OF NIGERIA PLC. Date:

Proceedings:

The Litigations As expected, the revocation of the licence of Savannah Bank attracted an immediate response from the Board and Management of the bank in form of court action (See Litigations Table) to reverse the order. For seven years, the owners of Savannah Bank traversed the various courts in the land-from High Court to Federal High Court and the Court of Appeal in search of justice that came unexpected on February 5, 2009.

April 2, 2002: Counsel to the Petitioner concluded his arguments in response to the banks’ application to set aside the appointment of NDIC. April 24, 2002: Counsel to the bank replied on points of law and the case was adjourned for Ruling. May 2, 2002: The FHC refused to grant their application to set aside the appointment. The motion was accordingly dismissed.

Ruling By Justice Okechukwu Okeke ( March 4, 2002) • That Order of mandatory injunction is issued directing the Defendants/Respondents to unseal forthwith the Plaintiff/Applicants premises throughout Nigeria and revert to the status quo ante bellum by the 1st Defendant/Respondent restoring forthwith the Plaintiff/ Applicants banking license pending the determination of the suit. • That the plaintiff/applicant is to give an undertaking as to damages should it turn out that this order ought not to have been made. • That accelerated hearing of the substantive suit is hereby ordered. To this end the 1st defendant/ respondent is ordered to file and serve its statement of defence on the plaintiff/applicants and the 2nd defendant/respondent on or before March 8, 2002 and the hearing of the substantive suit is adjourned to March 11-14, 2002. Justice Okeke submitted that “the court has a duty to protect the interest of the applicants, customers and also there is nothing before the court to show any complaint by their customers that they were unable to cash their cheques.” Reaction by Savannah Bank Mr. Ndubuisi Onwubiko, then Managing Director of Savannah Bank Plc hailed the Okeke ruling as a landmark decision and a firm reassurance that the judiciary remains the last hope of the common man and the oppressed in the country. However, officials of Savannah Bank who moved to re-open the premises of the bank as a result of the ruling were shocked to see the entire place occupied by security agents who insisted that they were yet to receive orders from the Inspector-General of Police (IGP) to vacate the premises of the bank. Reactions From CBN and NDIC The ruling by Justice Okeke drew fire from the CBN which quickly filed an appeal at the Court of Appeal, Abuja and notified the Federal High Court. The apex bank also filed a motion for Stay of Execution

Nigeria Plc. Feb. 18, 2002: The Corporation filed a petition for winding up the affairs of the bank and obtained ex parte, an order of appointment as Provisional Liquidator of the bank. Feb. 21, 2002: The bank vide a Motion on Notice applied for an order discharging and/or vacating the appointment of the Corporation as Provisional Liquidator on the ground that the appointment was contrary to the Companies Winding Up Rules. March 21, 2002: Counsel to the bank argued the bank’s application for an order discharging and/or vacating the appointment of NDIC as Provisional Liquidator. March 28, 2002: Counsel to the Petitioner continued with his reply but could not conclude.

2. Action Challenging Revocation of Savannah Bank’s Licence SUIT NO: FHC/ABJ/CS/31/2002 SAVANNAH BANK OF NIGERIA PLC and CENTRAL BANK OF NIGERIA, NIGERIA DEPOSIT INSURANCE CORPORATION AND INSPECTOR GENERAL OF POLICE Date:

For seven years, the owners of Savannah Bank traversed the various courts in the land-from High Court to Federal High Court and the Court of Appeal in search of justice that came unexpected on February 5, 2009.

Savannah Bank remains.” Brief Overview & Timelines

Feb. 15, 2002: The Central Bank of Nigeria (CBN) revoked the banking licence of Savannah Bank

Proceedings:

Feb. 18, 2002: The bank filed an application for an order of Mandatory Injunction to restrain the Corporation and for parties to revert to status quo ante bellum. Feb. 21, 2002: The Court heard arguments on the bank’s application for order of injunction, amendment of Statement of Claim and accelerated hearing. March 4, 2002: The FHC granted the bank’s application and issued an order of Mandatory Injunction, wherein it ordered the restoration of the bank’s licence and directed the Corporation to unseal forthwith the bank’s premises nationwide and to revert to status quo ante bellum. “CBN & NDIC appealed to the Court of Appeal, Abuja. March 7, 2002: Court of Appeal, Abuja granted interim ex parte order staying all actions before the trial Court. May 6, 2002: The Court of Appeal heard and disposed of all preliminary issues to pave way for an early determination of the substantive appeal. May 9, 2002: The Court of Appeal heard the substantive appeal and reserved judgment on a date to be communicated. July 18, 2002: The Court of Appeal delivered its judgment and unanimously allowed the Corporation’s appeal, set aside the orders of the trial Court and ordered accelerated hearing of the case by another Judge. The bank subsequently filed an application at the Court of Appeal. July 19, 2002: The bank appealed to the Supreme Court and applied for stay of execution and injunction pending appeal for stay of execution of the appellate court’s judgment and for an injunction against the Corporation.

Business Journal May 11 - 17, 2015

DiplomaticZone

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U.S. to Nigeria: No Guns to Fight Boko Haram Philip Obaji Jr.

here are many reasons the U.S. doesn’t trust Nigeria’s military: human rights, corruption, losing weapons to the enemy. But while D.C. dithers, the insurgents thrive. As the fight against Boko Haram intensifies, President Barack Obama is supporting Nigeria’s neighboring countries with $35 million worth of military and defense support services to Chad, Niger and Mali channeled through France. A press statement from the White House last week said the U.S. leader gave the support to help shore up the security of the three French-speaking African nations that share borders with Nigeria. But the United States did not include Nigeria, which is at the center of the five-year war on Boko Haram. And that does not speak well of the relations between Washington and the Nigerian military. Indeed, relations between the two countries have been at a record low, with Nigeria accusing the United States of not providing sufficient support for its fight against Boko Haram at a moment when help is vital. Nigeria suspended military training with the U.S. in 2014 after Washington repeatedly blocked its effort to buy arms to fight the insurgents. “At the request of the Nigerian government, the United States will discontinue its training of a Nigerian Army battalion,” the U.S. government said in a statement through its embassy in Abuja. After months of informal allegations, the Nigerian ambassador to the U.S., Ade Adefuye, openly accused the United States last November of refusing to sell arms and equipment to Nigeria to help defeat Boko Haram. In its response, the American government said it has supported Nigeria to the extent its law permits, and accused the Nigerian security forces of human rights violations. The U.S. said its laws do not allow sales of arms to countries with such human rights record. The U.S. government blocked the purchase of U.S.-made Cobra combat helicopters. The sales reportedly were coming from Israel which had okayed the deal from its own inventory, but needed U.S. approval since the fighter-helicopters were from America. The Israeli government cannot transfer the military helicopters to another foreign country without the U.S. signing off on the sale. The United States had criticised the Nigerian military’s human rights record and its handling of the Boko Haram crisis, particular the search for over 200 schoolgirls abducted by the group from Chibok, Borno State. A former Nigerian Consul General to the United States, Ambassador Joe Keshi wrote in a local daily U.S. that records show Washington has carried

out major arms shipments, running into several billions of dollars, to countries with abysmal human rights records, including brutal suppression of democratic dissents. “A number of countries in the Middle East, Latin America and Africa… are beneficiaries of American military support,” Keshi complained. “Besides, even if we stretch the human rights violations a little, it is not America, whose military and security agencies have had their own share of abysmal records in almost all their operations outside the U.S., that should openly criticise the Nigerian military the way it does.” Infact, the human rights issue may be only one problem. Defense analysts believe another possible reason why the U.S. refused to sell arms to Nigeria was because it feared sophisticated military hardware could end up in the hands of Islamist insurgents. Boko Haram militants have on numerous occasions seized arms from fleeing Nigerian soldiers. “My understanding is that there were leaks or moles inside the Nigerian military who were leaking information to Boko Haram,” says Ben Moores, Senior Analyst at the defense and security analysis organisation IHS Jane’s 360. He told Voice of America: “They were leaking certain bits of

“There were leaks or moles inside the Nigerian military who were leaking information to Boko Haram.”

information, training information and perhaps information on the team itself.” American officials have in the past accused the Nigerian military of corruption as well. Sarah Sewall, the Under Secretary of State for Civilian Security, Democracy and Human Rights, said during a hearing of the House Foreign Affairs Committee last year that despite Nigeria’s $5.8 billion security budget, “corruption prevents supplies as basic as bullets and transport vehicles from reaching the front lines of the struggle against Boko Haram.” “Nigeria will need to seriously tackle corruption if it is to succeed in stamping out Boko Haram,” Sewall

said. Similarly, Nigeria’s president-elect, Muhammadu Buhari in an interview with CNN a month before he won his country’s presidential election, said the Nigerian military was unable to defeat Boko Haram as a result of “misappropriation of the resources provided by the government for weapons.” The two countries are not relating well economically, either, after the U.S. fully suspended buying Nigerian crude oil in July, a decision that helped plunge Nigeria into one of its most severe financial crises when the oil price fell to a seven-year low. The situation may change. The U.S. is expected to rebuild ties with

Nigeria when Buhari takes office as president, if we are to judge by the Obama administration’s recent promises to support the in-coming government. In a congratulatory phone call to Buhari last month, Vice-President Joe Biden “affirmed that the United States stands ready to expand collaboration with Nigeria on issues of common concern, including economic and security matters.” Buhari himself is optimistic about a closer working relationship with the United States. In his acceptance speech, he acknowledged President Obama and Secretary of State John Kerry’s efforts to ensure a peaceful presidential election, and later promised to restore military ties with the U.S. once he takes over at the end of May. If so, we may be able to answer the question of whether the fight against Boko Haram would have been won earlier if the U.S. had shown greater support. Ambassador Adefuye last November told members of the New Yorkbased Council on Foreign Relations that if the U.S. had granted a request by Nigeria to purchase lethal equipment, it “would have brought down the terrorists within a short time.”

Sports

Business Journal May 11 - 17, 2015

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Jose Mourinho: Why Chelsea Won 2015 English Premier League

he Blues suffered a 5-3 humiliation at the hands of Spurs that day and Mourinho claims its impact was felt throughout the squad and it inspired the team rather than demoralising them-so much so that they’ve yet to lose since, putting together a formidable 14-game unbeaten run, clinch-

ing the title in the process. Mourinho said: “On 1 January when we were level on points with City after a heavy defeat at Spurs, instead of being a turning point, it was our last defeat. “From that moment, we haven’t had one single defeat. The team were always there, everybody knows we deserve

it.

“We were convinced for a long time (about winning the title) but my experience and maturity was always present and in control of the emotions and the situation. “We are champions now but during the season we had some crucial moments we coped with in a fantastic way.”

Jose Mourinho says defeat to Tottenham was the catalyst for Chelsea’s season

I Will Never Match Sir Alex Ferguson’s Record 13 Premier League Titles

HELSEA boss Jose Mourinho has rubbished the possibility of matching Sir Alex Ferguson’s haul of 13 Premier League titles. The 52-year-old Portugese led the Blues to his third Premier League title with Sunday’s 1-0 defeat of Crystal Palace, with three games to spare. Ferguson was 51 when he guided Manchester United to his first championship back in 1992/93. Mourinho, the self-proclaimed Special One, has this season’s trophy to go along with the 2004/05 and 2005/06

wins from his first spell at Stamford Bridge. “I have a long way to go, but Sir Alex left the bar in an impossible position for anyone,” Mourinho said. “I cannot win 13 Premier Leagues. “I can win 13 championships. I can. I have eight, I think I can go to 13. But 13 Premier Leagues, no, no chance.” Mourinho needs four more championships to reach 13, after two wins with Porto in Portugal, another two with Inter Milan in Italy and one with Real Madrid in Spain, plus his three with Chelsea.

JOSE MOURINHO believes the reason Chelsea won the title was all thanks to the defeat to Tottenham on New Year’s Eve.

Mayweather-Pacquiao Fight:

“Fraud Of The Century” Leigh Steinberg

he boxing match-up Saturday night was billed as the “Fight of the Century”, a massively hyped event. A series of events made the bout the “Fraud of the Century”, starting with the fact that the century is only fifteen years old. It was the match that every boxing fan wanted desperately to see six years ago when both fighters were in their prime. It ended up doing more damage to the image and market for boxing, and accelerated the sport’s decline. Manny Pacquiao revealed after the fight that he had a damaged shoulder which he knew about for some time. He tore his rotator cuff, which seriously impacts the ability to throw punches. Each boxer has to sign a form stating all injuries that he knows about. Had the Nevada Athletic Commission been aware of the injury, they likely would have postponed the fight. Pacquiao asked for a painkiller combination to be injected just hours prior to the bout–the commission refused to allow this, even though it was non-narcotic, because they deemed it too close to the fight. Cisco Aguilar, the Nevada Athletic Commission chairman told the Daily News, “You don’t want them to be masking the pain. If they’re masking the pain, they are potentially going to have some long-term damage that they may not have had.” Final Pay Per View buys have not yet been revealed. A conservative three

million buys would have generated $300 million in revenue. That means that Mayweather made $180 million and Pacquiao made $120 million for a fight that did not pit two healthy fighters. The public was not told and tickets went for absurdly high amounts of money. The pay per view charge for HD was $100 per household, significantly higher than any prior fight. The paying public was fleeced. Floyd Mayweather is a technically brilliant fighter who starts defensively, piles up points, waits for the other fighter to tire, and does the minimum necessary to win in later rounds. This is inherently boring to all fight fans who are not purists. Pacquio is a more lively fighter, but he was hurt, and could not penetrate Mayweather’s defense to generate much excitement. This all occurred at a time when UFC

and mixed martial arts made huge inroads into the market for pugilistic contests. A paucity of talented and well known fighters exists at the heavyweight level, which is the most attractive draw for boxing. Two female journalists, Rachel Nichols of CNN and Michelle Beadle of HBO, were banned from the arena for pointing out Mayweather’s history of domestic violence. The beginning of the broadcast on a few pay-per-view outlets was presented as a blank screen due to an inability to handle late requests, which caused technical problems. Pacquiao seems on the verge of retirement and Mayweather has intimated that he may retire after his next fight. This does not augur well for the future of boxing. And now there is talk of a potential rematch a year from now. A rematch? Fool me once…

Business Journal May 11 - 17, 2015

May 04 - 10, 2015

TheLantern PRINCE COOKEY 0802 308 8874 prince.cookey@yahoo.com.

NIGERIA: Between Mismanagement & Leaking Treasury

“The unemployment situation in Nigeria currently has reached a level of national crisis. This is because in economics, if an economy records 5 per cent unemployment, you can say there is full employment, but once it is 30 per cent and above, it is crisis.” Prof. Akpan Ekpo Director-General West African Institute for financial and Economic Management (WAIFEM)

“We have serious challenges. Things have been tough since the beginning of the year and they are likely to remain so till the end of the year. We have front-loaded the borrowing programme to manage the cash crunch in the economy.” Ngozi Okonjo-Iweala Finance Minister “As it stands today, most states of the federation have not been able to pay salaries and even the federal government has not paid (April) salary and that is very worrisome” Rochas Okorocha Governor, Imo State

he Treasury of the Federal Republic of Nigeria is sick. According to economic doctors, the Nigerian treasury is suffering from acute mismanagement and basket-type leakages. Other diagnosed ailments include falling oil prices and dwindling foreign reserves. The sicknesses were made public recently by Ngozi Okonjo-Iweala, Federal Minister of Finance and Co-ordinating Minister of the Economy in Abuja. Indeed, the comical revelation by Minister Okonjo-Iweala that Nigeria borrowed the sum of N473 billion to pay the salaries of civil servants was not a revelation, given the Naira and Dollar rains of the just concluded 2015 general elections in the country. It was public knowledge since early 2014, even before the crash of oil prices, that the cash crunch being experienced in the country then was as a result of politicians accumulating and hoarding funds to prosecute the 2015 elections. It was also in the public domain that governors of both the Peoples Democratic Party (PDP) and All Progressives Congress (APC) were openly bankrolling the presidential campaigns of their parties, besides

other elective positions in the polity. At the fund-raising party for President Goodluck Jonathan, it was reported that PDP governors raised as much as N21 billion to support the presidential campaign of the president. Beyond that, media reports also suggested that Jonathan spent over N1.2 trillion on the presidential polls.

And for the APC, the figure was put at slightly above N500 billion. Both parties have contested the figures. But what cannot be contested is that the chunk of the resources spent on the elections came from the public treasury, not from private pockets of the various contestants. Those in power simply dipped their

hands into the public till to actualise their personal political ambitions, to the extent that workers, majority of who queued to vote for the politicians have no salary to receive at the end of the month. What is clearly on display in this situation is man’s inhumanity to his fellow man. It also adds up to the biblical quotation that those who have will have more added to them, while those who have none will have the little they have taken away from them. That the Federal Government borrowed money to pay salaries of workers alludes to the various allegations of mismanagement and leakages of the national purse made by various individuals and groups against the government in recent times. As expected, the government debunked all the allegations with

negative response and name callings. As the country strides towards inauguration of a new government on May 29, what is the state and fate of the national treasury? Resorting to loans to pay salaries is not a sign of sound financial health for any organisation-be it government or private enterprise. Rather, it is a credible sign of impending bankruptcy. Is Nigeria bankrupt? Or about to slide into bankruptcy? Those in power owe this nation a more rational explanation, rather than passing the bucks. President Goodluck Jonathan and Ngozi Okonjo-Iweala must step forward and present the true state of the nation’s finances to our countrymen and women, especially now that the administration is on its way out of office. The public has the right to know what is in the public treasury before handing over to a new administration. The in-coming government should also insist on having all financial details on the table before taking the reigns of office on May 29. After May 29, the new administration will now have the burden to explain to Nigerians what happened to the treasury. For Nigeria, the present state of affairs is either a case of innocent mismanagement of resources or willful

Business Journal Newspaper is published weekly by Egelon Communication Company. Suite B2, Glory Shopping Complex, 229, Ikotun-Idimu Road, Council Bus-Stop, Idimu, Lagos. Abuja Bureau 08035977833 PH Bureau: 08099573476 Phone: 08023088874, 07058919138. Email: business.journal@yahoo.com. Publisher/Editor-in-Chief: PRINCE COOKEY.